Revision: Feb. 7, 2013, midnight
SB 3-FN – AS INTRODUCED
2013 SESSION
06/09
SENATE BILL 3-FN
AN ACT eliminating the ramp tolls on the Everett turnpike in the town of Merrimack.
SPONSORS: Sen. Bragdon, Dist 11; Sen. Morse, Dist 22; Rep. Hinch, Hills 21; Rep. Barry, Hills 21; Rep. Stroud, Hills 21; Rep. Notter, Hills 21; Rep. Grady, Hills 21
This bill eliminates the ramp 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13-0975
06/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT eliminating the ramp 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 ramp 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
13-0975
Revised 02/07/13
SB 3 FISCAL NOTE
AN ACT eliminating the ramp tolls on the Everett turnpike in the town of Merrimack.
FISCAL IMPACT:
The Department of Transportation states this bill, as introduced, may decrease state restricted revenue by $3,950,370 in FY 2014, $4,003,528 in FY 2015, $4,060,420 in FY 2016, and $4,121,039 in FY 2017, and decrease state restricted expenditures by $1,534,425 in FY 2014, $1,565,114 in FY 2015, $1,596,416 in FY 2016, and $1,628,344 in FY 2017. There will be no fiscal impact on county or local revenue and expenditures.
METHODOLOGY:
The Department of Transportation states this bill eliminates the tolls at exit 10 (Merrimack Industrial), exit 11 (Continental Boulevard Interchange), and exit 12 (Bedford Road) on the Everett Turnpike in the town of Merrimack, thereby eliminating all revenues and operations and maintenance costs associated with those three exits. The Department assumes an effective date for this bill of July 1, 2013 and also assumes all toll collection efforts elsewhere on the turnpike system will remain unaffected by the bill. The Department’s traffic and revenue estimates for the three exits are based on the updated traffic and revenue study completed by Jacobs Engineering on August 14, 2012, which assumes traffic and revenue to grow at an average rate of 1.4 percent annually on the Everett Turnpike. The Department bases its expenditure estimates on FY 2012 levels, with an annual two percent increase for inflation and cost of living adjustments. The Department assumes that, were the tolls to remain in operation, expenses would decrease by $200,000 per year following expansion to exit 11 of the “Honor System” that currently exists for nighttime hours at exits 10 and 12. This expansion is scheduled to take place in the fourth quarter of FY 2013. The Department projects the bill will have the following impact on state restricted revenue and expenditures:
FY 2014 |
FY 2015 |
FY 2016 |
FY 2017 | |
Increase (decrease) in Turnpike Fund revenue |
($3,950,370) |
($4,003,528) |
($4,060,420) |
($4,121,039) |
Increase (decrease) in Turnpike Fund expenditures |
($1,534,425) |
($1,565,114) |
($1,596,416) |
($1,628,344) |
Net impact to Turnpike Fund |
($2,415,945) |
($2,438,414) |
($2,464,004) |
($2,492,695) |
The Department assumes the Exit 12 tollbooths will remain in place after tolling is discontinued. Should the booths be removed, state costs will be an additional $500,000 per exit in FY 2014. In addition, the Department states 22 full-time and 16 part-time toll attendant staff currently work at the three locations. This staff will either be laid off or transferred to other plazas should the tolls be eliminated. The Department did not factor the costs associated with possible layoffs into its analysis of the bill’s fiscal impact.
Because toll revenues are used to pay the interest and principal on bonds issued to finance the turnpike system, the Department states any erosion of toll revenue will need to be factored into debt service coverage ratios to ensure compliance with the toll rate covenant of the bond resolution. The Department states erosion of coverage ratios may also have a negative impact on the rating of the turnpike revenue bonds, as well as the interest on future bond issuances by the turnpike system.