FISCAL NOTE
Date Requested: February 08, 2017
Time Requested: 06:37 PM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1050 |
Introduced |
SB34 |
|
|---|
| CBD Subject: |
Roads and Transportation |
|---|
|
FUND(S):
Sources of Revenue:
Other Fund State Road Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed legislation is for the Commissioner of Highways to issue special obligation notes as funding to complete the construction of the Coalfields Expressway project within in the boundaries of the State. Currently, there are 7.7 miles of the Coalfields Expressway open to traffic, 9.9 miles either constructed to grade or under construction (without paving), 7.8 miles with the final design underway or complete, and 36 miles where final design has not started. The proposed legislation calls for the placement of an automated toll collection system with the collected tolls being dedicated to repayment of special obligation notes.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The Coalfields Expressway approximately 54 miles that have not been fully opened to traffic and thus, could be eligible for tolling and has been utilized in the brief review of potential available for funding the special obligation notes. In evaluating the potential revenue stream from open road tolling, an assumption has to be made on anticipated initial traffic volumes and classification of the counts (passenger cars/truck) given the different toll rate structure and an associated traffic growth to project future revenue streams. For simplicity, the toll rates were set at $0.10 per mile for passenger cars and $0.30 per mile for trucks with an annual traffic growth rate of 2.5%. The construction cost for a four lane highway in southern West Virginia is $20-$25 million. Using this capital cost and the anticipated revenue stream, the issuance of bonds to fully fund the completion of the Coalfields Expressway is not feasible. In factoring in the annual maintenance cost, the net remaining revenue is $1.3 mill in the assumed opening year of 2025. The amount of bonding capacity would be around $20 mill for a project that has a remaining construction cost of $800 million to $1 billion. Thus, supplemental funding would be needed from other sources such as the State Road Fund or annually allocated federal aid funding makes the completion infeasible at this time without another major revenue stream.
Memorandum
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov