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Tolling as a Finance Tool and the MnPASS System

Tolling as a Finance Tool and the MnPASS System. Nick Thompson Minnesota Department of Transportation. June 2012. Tolling Purpose by Type. General Tolling primarily used to raise revenue for facility development and management. Every vehicle pays.

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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

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