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OCR for page 74
74 cover administrative, toll collection, and enforcement costs in In 2007, the average cost per transaction for the agencies 2007. The range of values was from 16.5% of revenues, which analyzed was $0.54. The costs for urban and multi-road was incurred by the 407 International Inc., to 92.6% for I-15 toll-road agencies tended to have a relatively high number HOT lanes in San Diego. Enforcement costs were not available of related transactions, which tended to decrease the over- for either of these facilities, which understate total costs. The all cost per transaction. In particular, NTTA and OOCEA relatively low costs incurred by the Toronto 407 International recorded an average cost per transaction of $0.16 and $0.17, Inc. reflect the following: (i) the toll road is operated by a pri- respectively. In comparison, single facility toll agencies vate concessionaire that has a strong incentive to maximize had a higher cost per transaction. Specifically, total costs revenues and minimize costs so that greater profits can be per transaction for the Ohio Turnpike and SR-91 were accrued to its shareholders; (ii) toll rates are largely unregu- $1.43 and $1.34, respectively. Figure 38 summarizes the lated; and (iii) the facility is an urban expressway along the operational costs related to toll activities as a percentage of northern section of Toronto with limited competition from total revenues and per transaction for each toll-road agency non-tolled facilities. The relatively higher costs as a percentage in 2007. of total revenues on the I-15 HOT lanes may be reflective of the fact that the facility is primarily intended to relieve conges- 4.3.5 Administrative Costs tion--toll rates increase and decrease with demand. During off-peak hours, demand may be relatively low. In the analysis, administrative costs involved the following Newer toll agencies tended to be on the low end of this items: benchmark. In particular, OOCEA expended about 25.5% of revenues to collect tolls for their respective facilities in 2007. · Wages and salaries, employee benefits, social security taxes, Facilities that have regulatory and/or political restrictions and pensions of toll-collection staff. (Pension costs include with respect to the implementation of toll increases were only the per annum costs reported by the toll agency in their more likely to be at the high end of this range. This indicates CAFRs. Additional pension liabilities that may be incurred that toll rate increases may not occur frequently enough to by other public agencies have not been included in these cover costs. estimates.) 100.0% $1.60 90.0% $1.40 80.0% $1.20 70.0% Cost per Transaction % of Total Revenues $1.00 60.0% 50.0% $0.80 40.0% $0.60 30.0% $0.40 20.0% $0.20 10.0% 0.0% $0.00 % Revenues Per Transaction Source: Jacobs Engineering Group, 2010 Figure 38. Total operational costs by toll agency, 2007.