HB1257 (2012) Detail

Eliminating the tolls on the Everett turnpike in the town of Merrimack.


HB 1257-FN – AS INTRODUCED

2012 SESSION

12-2077

06/03

HOUSE BILL 1257-FN

AN ACT eliminating the tolls on the Everett turnpike in the town of Merrimack.

SPONSORS: Rep. J. Thomas, Hills 19; Rep. H. Richardson, Coos 2; Rep. Hinch, Hills 19; Rep. Notter, Hills 19; Rep. R. Barry, Hills 19; Rep. Stroud, Hills 19; Rep. Pellegrino, Hills 19

COMMITTEE: Transportation

ANALYSIS

This bill eliminates tolls on the Everett turnpike in the town of Merrimack.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12-2077

06/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT eliminating the tolls on the Everett turnpike in the town of Merrimack.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Department of Transportation; Everett Tolls Eliminated. Notwithstanding any law to the contrary, the commissioner of the department of transportation shall eliminate the northbound and southbound tolls for exits 10, 11, and 12 on the Everett turnpike in the town of Merrimack.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

12-2077

10/26/11

HB 1257-FN - FISCAL NOTE

AN ACT eliminating the tolls on the Everett turnpike in the town of Merrimack.

FISCAL IMPACT:

      The Department of Transportation states this bill will decrease state restricted revenue by $2,239,446 in FY 2013, $2,075,707 in FY 2014, $2,102,578 in FY 2015, and $2,130,021 in FY 2016, and decrease state restricted expenditures by $1,454,801 in FY 2013 and each year thereafter. There will be no fiscal impact on county or local revenue or expenditures.

METHODOLOGY:

    The Department of Transportation states this bill eliminates the tolls on the Everett Turnpike in the town of Merrimack, which the Department assumes would entail the elimination the collection of tolls at exit 10 (Merrimack Industrial), exit 11 (Continental Boulevard Interchange), and exit 12 (Bedford Road), thereby eliminating all revenues and operations and maintenance costs associated with those 3 exits. The Department assumes an effective date for this bill of July 1, 2012 and also assumes all toll collection efforts elsewhere on the turnpike system will remain unaffected by this bill. The Department’s traffic and revenue estimates for the 3 exits are based on the updated traffic and revenue study completed by Jacobs Engineering on June 24, 2011, which assumes traffic and revenue to grow at an average rate of 1.65% annually on the Everett Turnpike. These projections also factor in the pre-existing assumptions that toll revenue for all three exits will decline due to the opening of the Manchester Airport access road and that toll revenue for exit 10 will increase due to the opening of a nearby outlet mall in the spring of 2012. The Department estimates the revenue decrease at $2,239,446 in FY 2013, $2,075,707 in FY 2014, $2,102,578 in FY 2015, and $2,130,021 in FY 2016.

    Due to implementation of a LEAN staffing program, the Department estimates operations and maintenance expenditures for the 3 exits in FY 2012 to be 8.7% below the actual expenditures in FY 2011 and remaining at that level each year thereafter. Further contributing to projected savings in operations and maintenance expenditures at the 3 exits is the planned institution of the honor system, which is currently in place for night time hours at exits 10 and 12 and whereby the toll booths are not staffed with toll collectors, during the night time hours at exit 11, to save $200,000 annually beginning in FY 2013 and to expand its use to included holidays and weekends at exit 12, to save $135,000 annually beginning in the second half of FY 2012. The Department estimates the elimination of these costs would decrease state expenditures as follows:

                    FY 2013 & thereafter

    FY 2011 actuals $1,960,351

    LEAN savings (8.7%) ($170,550)

    Expand honor system exit 12 savings ($135,000)

    Establish honor system exit 11 savings ($200,000)

    Total projected O&M expenses eliminated $1,454,801

    The Department also states debt service on outstanding bonds issued in part to fund construction of the tolling facilities at the 3 exits, possible effects the elimination of a revenue stream may have on bond coverage ratios and bond ratings, termination costs for the 26 full time and 23 part time employees at the 3 exits who would be laid off if toll collection were eliminated, and toll plaza removal costs ($500,000 at each exit) were not included in the Department’s analysis, but could have significant impacts if toll collection were to be discontinued at these exits.