Motorists on the Foothill-Eastern last year numbered 33% less than projected, and revenue was 75% of forecasts. Previously, the part of the corridor between Yorba Linda and Rancho Santa Margarita had a revenue surplus and ridership that was often 8% to 10% ahead of projections. The extra money was used to help shore up the finances of the San Joaquin Hills road.
Last year, the San Joaquin Hills restructured about $2.1 billion in debt and pushed back the retirement of its bonds to 2042, meaning motorists will have to pay tolls for an additional six years before the road becomes a free highway. It is the second time the original deadline of 2033 has been reset.
"Extending the payment time to make sure we can make our debt payments is a necessary step," said Amy Potter, the Transportation Corridor Agencies' chief financial officer. "We have to be flexible."
Overall, the agency has borrowed about $4.4 billion for the two roads and faces at least $10.5 billion in debt payments by the time its bonds mature, according to financial statements.
Despite the roads' sagging ridership, the agency has increased tolls repeatedly to keep pace with expenses and debt payments—at least 12 times since 1996 on the San Joaquin Hills alone. [emphasis added]
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Just a reminder, concessions from bondholders is also known as a soft default.
9 comments:
There's recently been a call from Gov. Patrick of MA to replace toll takers on the Pike with an automated system that scans license plates and then bills owners directly. What isn't mentioned is that there has purportedly been internal discussions that this new system could be extended to other roadways that currently have no tolls...Working towards a liberal's paradise...
We are going to have to move away from the fuel excise tax model anyway. I'm agnostic on automated tolls as one mechanism. They would be fine if they were fair but I'm equal sure that cities will be undercharged and exurbs will be overcharged as BigGov just cannot resist a little social engineering.
Yet in congested areas the road infrastructure continues to degrade, and TPTB keep trying to push people into public transit.
A great quote in the LATimes recently from a guys who lives in the OC but works in SF:
"I would rather fly to San Francisco than drive to Santa Monica."
That says a lot....
The problem with being "our" age is remembering what used to be. Heck, Honda vehicless had 13" tires because the roads were smooth enough. There is only one phrase to describe SoCal surfaces; third world.
Forget the Baja 500.
Try going 70 mph in the inside lane on the 405 through LA.
"Try going 70 mph in the inside lane on the 405 through LA."
I was thinking the I-5 between the OC border and downtown.
Rob Dawg said...
"Try going 70 mph in the inside lane on the 405 through LA."
I was thinking the I-5 between the OC border and downtown.
How smooth does one of these parking lots need to be?
It's funny how bad the road is in Los Angeles county and then when you hit the Orance county line the roads are beautiful all the way South to San Diego.
If you were a space alien and drove South from San Diego to Mexico and then North to Los Angeles you would think that they both were 3rd world countries.
It's funny how bad the road is in Los Angeles county and then when you hit the Orance county line the roads are beautiful all the way South to San Diego.
LA County has been wasting billions on transit and has nothing left over for roads. It really is that simple. Light rail, metro rail, Orange Line, subway. It has gotten so bad that the LA Times often refers to the agency as the Transit Authority without being corrected.
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