HB 471-FN – AS INTRODUCED
2011 SESSION
06/01
HOUSE BILL 471-FN
AN ACT relative to the discontinuance of certain tolls and authorizing the department of transportation to establish a toll plaza between exits 1 and 2 on the F.E. Everett turnpike.
SPONSORS: Rep. C. Christensen, Hills 19; Rep. R. Barry, Hills 19; Rep. Hinch, Hills 19; Rep. Graham, Hills 18; Rep. Hawkins, Hills 18; Sen. White, Dist 9
COMMITTEE: Public Works and Highways
This bill discontinues certain tolls and authorizes the department of transportation to establish a toll plaza between exits 1 and 2 on the F.E. Everett Turnpike.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0438
06/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to the discontinuance of certain tolls and authorizing the department of transportation to establish a toll plaza between exits 1 and 2 on the F.E. Everett turnpike.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Turnpike System; Authority Granted. Amend RSA 237:2, IV by inserting after subparagraph (g) the following new subparagraph:
(h) Establishment of a toll plaza on the F.E. Everett turnpike between exits 1 and 2.
2 Bedford and Merrimack; Tolls Discontinued. The commissioner shall discontinue tolls at Bedford and all Merrimack locations on the F.E. Everett turnpike.
3 Effective Date. This act shall take effect 60 days after its passage.
LBAO
11-0438
Revised 01/27/11
HB 471 FISCAL NOTE
AN ACT relative to the discontinuance of certain tolls and authorizing the department of transportation to establish a toll plaza between exits 1 and 2 on the F.E. Everett turnpike.
FISCAL IMPACT:
The Department of Transportation states this bill will increase state turnpike fund expenditures by $1,850,000 in FY 2013, $3,700,000 in FY 2014, and $4,570,000 in FY 2015. This bill will increase state turnpike fund revenues by $8,650,000 in FY 2015. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
This bill discontinues tolls at all Bedford and Merrimack locations and authorizes the Department of Transportation to establish a toll plaza between exits 1 and 2 on the F.E. Everett Turnpike. The Department of Transportation notes the necessary infrastructure for the Nashua tolls does not exist yet and anticipates it would take approximately three years from the passage date of the bill to complete. Accordingly, the Department assumes, for the purposes of this fiscal note, the discontinuance of the Bedford and Merrimack tolls and the initiation of the Nashua tolls would not be realized until the beginning of FY 2015.
The Department’s estimates are based on a tolling study of the F.E. Everett Turnpike done by Wilbur Smith Associates dated November 30, 2010. One specific scenario within the report considers the removal of the Bedford and Merrimack tolls and the installation of open road tolling between exits 1 and 2 in Nashua with tolls collected at the on and off ramps of exits 1 and 2 as well. This scenario also assumes the Manchester Airport Access Road and the exit 10 Premium Outlet Mall will be completed. The Department estimates the Nashua tolls would generate $25,190,000 in revenue in FY 2015 compared to an estimated $16,540,000 that would be generated from the Bedford and Merrimack tolls. This equates to an increase in turnpike fund revenue of $8,650,000 ($25,190,000 - $16,540,000) in FY 2015.
The Department notes construction of the Nashua toll plaza and the removal of the Bedford and Merrimack tolls would require $46,100,000 to be bonded over 20 years at an estimated interest rate of 5%. The Department estimates the annual debt service costs associated with the bond to be $3,700,000. Assuming a project start date of July 1, 2011, the Department states the preliminary design and engineering costs could be absorbed within the Department’s current budget and that bonds would not need to be issued until the middle of FY 2013. This would result in an increase in turnpike fund expenditures associated with the debt service of the bonds of $1,850,000 in FY 2013 ($3,700,000 / 2) and $3,700,000 in FY 2014 and each fiscal year thereafter. In addition, the Department estimates the annual operation and maintenance costs associated with the prospective Nashua tolls to be $4,410,000 compared to an estimated annual operation and maintenance cost of $3,540,000 for the Bedford and Merrimack tolls. This equates to an increase in turnpike fund expenditures related to operation and maintenance costs of $870,000 in FY 2015. The combination of debt service payments and increased operating and maintenance costs would increase turnpike fund expenditures by $4,570,000 in FY 2015 ($3,700,000 + $870,000).