Public Information Meeting Toll Schedule Overview Background - PowerPoint PPT Presentation

Public Information Meeting Toll Schedule

Overview  Background  Situation  Intent  Toll Rate Study • Tolling Options • Analysis  Way Ahead

Mid-Bay Bridge Authority  Vision: a safe, serviceable, convenient, and economical Okaloosa County transportation system for travelers and commerce  Mission: plan, construct, build, and maintain a bridge traversing Choctawhatchee Bay along with connecting roads to enhance economic development and emergency evacuation  Objectives • Provide value to the motoring public for the tolls paid • Meet obligations to bond holders • Publish asset management plan • Sustain excellent infrastructure condition • Increase presence/communications in/with the community

Background - History  1986: Mid-Bay Bridge Authority • Established via legislation to construct a bridge that spans Choctawhatchee Bay and any connecting roads leading to the bridge • Created as Special Dependent District of Okaloosa County • Consists of Authority board of 5 members appointed by Governor + 1 non- voting member from FDOT District 3 • Held 1st meeting on Oct 13, 1986 • Operation and maintenance by FDOT through a Lease-Purchase Agreement • Day-to-day administration by Executive Director  1987: Began feasibility, traffic, and revenue studies  1988: Began final design  1989: Received contract proposals  1991: Completed bond sale and began construction  1993: Completed bridge construction and opened to traffic in June

Why Toll?  Insufficient state funding/priority  User-based: only pay when used, and only users pay  Financing cost is spread over time, so time-of-use matches time-of- benefit, and time-of-payment  Building earlier saves construction and material costs  Earlier availability facilitates economic growth & development

Background - System  Primary Asset is a 3.6 mile segmental bridge that spans the Choctawhatchee Bay from Destin, Florida to Niceville, Florida

Background - System  The Walter F. Spence Parkway is an 11 mile limited access highway • Right-of-Way 600+ Acres • Bridges 5 Interchanges 5 Stream Crossings • Total Cost $137.1M • ROW 600+ Acres • Value $30.5M • Services $26.7M • Restoration $ 3.8M • Phase 1 Opened May 2011 • Phases 2 & 3 Opened January 2014

Background - Improvements Spence Parkway -  SR 293/US 98 Widening and PHASE 3 SR 285 to SR 85 Intersection Improvements • Completed in Spring 2002 Spence Parkway - PHASE 2  Toll Booth Plaza Expansion Range Road to SR 285 • Completed May 2007  Walter Francis Spence Parkway Spence Parkway - PHASE 1 (Mid-Bay Bridge Connector) – Toll Booth Plaza to Range Road 3 Phases • Conceptual approval by Eglin Toll Booth Plaza from Bridge to SR 85 in Dec 06 Expansion • Environmental Assessment Signed Dec 08 • Phase 1 Danny Wuerffel Way  Mid-Bay Bridge to Range Road Expansion From US 98 to  SR 20 Widening Mid-Bay Bridge  Back Access Road • Phases 2 / 3  Range Road to SR 285 / SR 85

Situation 50,000 2011 Traffic Projections have not materialized, requiring ~ 70% toll increase 45,000 40,000 35,000 ($ in thousands) 30,000 Projected Required 70% 25,000 Toll Revenue Increase 20,000 15,000 10,000 5,000 0 2011A 2012A 2013A 2014A 2015B 2016P 2017P 2018P 2019P 2020P 2021P 2022P 2023P 2024P 2025P 2026P 2027P 2028P 2029P 2030P 2031P 2032P 2033P 2034P 2035P 2036P 2037P 2038P 2039P 2040P Resolution Required Coverage (General Reserve and Other Income)² Resolution Required Coverage (Tolls)² Springing Lien Debt Service (Pre-Spring) Senior Lien Debt Service Administrative Expenses¹ Current Required Toll Actual Toll Revenue  The Authority intends to keep Administrative Expenses flat over the next few years and minimize to the extent practicable over time, including through reduction of staff from 3 to 2  Previous resolution coverage of 1.75x of Senior Lien Debt (inclusive of $6mm balance in General Reserve), and 1.15x of all outstanding debt (Master Resolution Section 304(B)). Coverage used to reimburse FDOT for current year O&M and to repay long-term FDOT obligations

Refinancing Lowered Debt Service $25,000 $5.5mm $0.41mm $20,000 $3.97mm $15,000 $10,000 $5,000 $0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 1st Senior Lien Debt Service 2nd Senior Lien Debt Service Prior Debt Service

Refinancing Lowered Required Toll Revenues $40,000 $35,000 $2.99mm $8.38mm $30,000 $7.55mm $25,000 $20,000 $15,000 $10,000 $5,000 $0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Old Required Toll Revenue New Target Toll Revenue

Intent  Keep tolls as low as responsibly possible • Mitigate the impact of the approved 2016 toll increase  Provide stable financial footing to allow the Authority to pay down debt early  Sustain or increase discount for local users (SunPass)  Implement commuter discount (frequent users)

Toll Rate Study  Updated Traffic and Earnings Report (“Update Letter”) • Update of previous 2010 forecast • Review historical traffic and revenue trends through FY 2014 • Adjust forecast based on actual data since 2010 • Elasticity  Bridge: estimated from previous two toll increases  Parkway: estimated using the Northwest Florida Regional Planning Model • Developed updated traffic and revenue forecasts through FY 2040

Mid-Bay Bridge Historical Traffic and Revenue Trend 6.00 5.00 Annual Traffic and Toll Revenue (1994 = 1.00) 4.00 3.00 2.00 1.00 0.00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year ending September 30 1994 2014 Traffic Toll Revenue Traffic ‐ 1,896,661 Traffic ‐ 6,846,939 Revenue ‐ $16,415,891

Options  Eleven tolling options considered • Four options fully evaluated • Seven options eliminated from further evaluation

Options Evaluated  Do not change toll schedule  Increasing the cash/TBP toll rates (visitors)  Sustaining the SunPass discount amount (locals)  Implementing discounts for frequent SunPass users (commuters)

Options Not Carried Forward  Installing another electronic gantry on the Parkway  Indexing toll increases to the Consumer Price Index  Increasing tolls for multi-axle vehicles  Implementing an accommodation for low-wage earning workers by offering additional discounts to those who meet some predefined criteria such as a certain income level given the costs of managing program  Implementing different tolls by direction  Implementing toll discounts by time of day  Implementing congestion toll rates

Two-Tier Tolls Analyzed Payment Proposed Toll Scenario Facility Present Toll (A) Proposed Toll (A) Method Increase (A) Cash $3.00 N/A N/A Bridge 1 SunPass $2.00 N/A N/A No Toll Increase TBP (B) $1.50 N/A N/A (Do Nothing) Parkway SunPass $1.00 N/A N/A Cash $3.00 +$1.00 $4.00 2 Bridge Base Case: SunPass $2.00 +$1.00 $3.00 toll increases in the TBP (B) $1.50 +$0.50 $2.00 Series 2011 Official Parkway Statement SunPass $1.00 +$0.50 $1.50 Cash $3.00 +$0.50 $3.50 Bridge 3 SunPass $2.00 +$0.50 $2.50 Notional toll increases in TBP (B) $1.50 +$0.25 $1.75 the Update Letter. Parkway SunPass $1.00 +$0.25 $1.25 Cash $3.00 +$1.00 $4.00 Bridge 4 SunPass $2.00 +$0.10 $2.10 Minimal SunPass toll TBP (B) $1.50 +$0.50 $2.00 increases Parkway SunPass $1.00 +$0.05 $1.05 (A) All toll rates refer to the 2-axle vehicle rate; N-1 formula for corresponding multi-axle toll rates. (B) All TBP toll rates exclude the monthly invoice administrative charge.

Three-Tier Tolling Structure  Present basic toll structure plus an additional discount for frequent users • Two-axle non-SunPass vehicles pay the full toll • Two-axle SunPass vehicles pay a discounted toll • Two-axle SunPass vehicles making over 40 trips per month pay the lowest toll • All 3+ axle vehicles pay the full toll according to the “N-1” formula regardless of method of payment or number of trips per month