Tolling as a Finance Tool and the MnPASS System - PowerPoint PPT Presentation

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Tolling as a Finance Tool and the MnPASS System
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Tolling as a Finance Tool and the MnPASS System

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  1. Tolling as a Finance Tool and the MnPASS System Nick Thompson Minnesota Department of Transportation June 2012

  2. Tolling Purpose by Type • General Tolling primarily used to raise revenue for facility development and management. Every vehicle pays. • Cordon Tolling manages access to defined urban zone to reduce urban congestion; revenues are used to cover operational costs, excess revenues may be used to enhance transit service • Express Lanes Congestion Pricing primarily used to manage demand and ensure facility performance; may or may not raise excess revenue. Users have choice not to pay.

  3. Express Lanes Tolling Example • SR 91, California • Privately financed facility built in the median of the existing SR 91 corridor • Four lanes, 10 miles long • Two access points • All users pay, but there is a free alternative • Prices vary by time of day, day of week, day of year • Peak period rate is $8.95 • Revenue $35.4 M / year

  4. Examples EXPRESS TOLL • I-95, Miami, Florida • Converted to High Occupancy Toll Lane in 2009 to tolling. • Time of day pricing • Almost all drivers pay • Revenue covers private contribution to construction and profit • Peak rate $8 • Revenue generated: $12 million/year GENERAL TOLLING • SR 520, Seattle, Washington • Tolls reinstated on existing floating bridge in December 2011. • Change from all free to all drivers pay • Revenue used to finance new $2 billion bridge replacement • Revenue: $60 M /yr growing to $120M/yr

  5. Context for MnPASS • A healthy, multimodal transportation system is a critical element to the region’s economic vitality and quality of life • Key challenges • Aging infrastructure • Congestion/mobility • Rising costs • Tight fiscal constraints • Key strategies in state and regional long range (20 yr.) transportation plans • Low Cost/High Benefit solutions • Multimodal investments • MnPASS System

  6. What isMnPASS? • ▸MnPASS – MN’s congestion pricing • brand name • ▸Operates during peak weekday AM & PM rush hours – free and open to all during non-peak • ▸ Buses, carpools (2+) & motorcycles use for free – solo drivers can choose to use for a fee avg. $1.25-$1.50

  7. MnPASS on I-35E • Insert infographic here

  8. MnPASS System Use & Performance • Steady annual growth since opening in 2005 • currently 23,000 transponder holders • Over 90% satisfaction rate among customers • reliability and choice valued most • customers stay customers • Transit users and operators strongly support system • transit riders & carpoolers represent >80% of MnPASS users • Transit/carpoolers do not pay to use the system • User demographics representative of corridor population • 2011 Revenue/Expenditures • Revenue: Tolls/Fees-$2.64M • Operations & Maintenance Expenses: $2.5M • Purpose is to maintain congestion free speeds (50-55mph) in MnPASS lanes, not to maximize revenue

  9. Why is MnPASS a key strategy? • Faster, safer more reliable travel options • Regional transit system improvement • More efficient, cost-effective congestion management • MnPASS is a market based approach that better aligns user cost and benefit • Highway performance and people throughput maximization for future generations

  10. Why MnPASS, cont. • Reliability – Travel time reliability is critical to the region’s economy, transit system and quality of life • Sustainability – • Peak period mobility investments are the highest cost infrastructure investments we make • Last mobility investment chance for many corridors (including 35E) • Investment benefits must be sustained for the long term (20-30 yrs.) • Contains the pressure for future investments • MnPASS is the most efficient and cost-effective way to ensure such reliability and sustainability • Traditional general purpose lane expansion cannot provide this level reliability and sustainability

  11. I-35E MnPASS Project - typical cross-section