Letter from Golden Mayor Charles Baroch to the Colorado
Legislature and the Metro Mayor's Caucus regarding recent controversy
over
tolls
November 18, 2005
Dear (NAME with courtesy title),
As you may have noticed, Colorado toll roads have been in the press a lot recently and the news hasn't been good.
While the recent articles have addressed several issues regarding current or proposed toll roads surrounding the Denver Metro area, they also raise some important issues about toll roads statewide.
For example, we've learned that toll roads rely on congestion in surrounding free lanes to produce the traffic numbers they need to make their financial goals. Do we want to embrace a transportation policy that requires Colorado to maintain -- or actually to intentionally increase -- congestion on free roads?
Officials in Douglas and Arapahoe counties, Lone Tree and Centennial have questioned whether toll lanes on C-470 will cause more problems for their citizens than they will solve. Across town, officials in Boulder County and the cities of Louisville, Boulder and Superior have joined Golden in raising concerns about plans to build a new tollway between the Northwest Parkway and the northern end of C-470.
I wanted to draw your attention to some of the recent media coverage (see enclosed articles) and highlight a few key points that you may want to consider when looking at this critical issue that could impact transportation policy statewide.
- Based on the Colorado Department of Transportation's
own projections, the vast majority of toll roads it has proposed
would need massive taxpayer subsidies. Such is the case
with the toll road that has been proposed by CDOT between the
Northwest Parkway and the north end of C-470, which would cost
over $5 million in government funds, according to the Colorado
Tolling Enterprise's Preliminary Traffic & Revenue Study
of December 2004. This is more than the total cost of other alternatives
which provide better mobility and congestion relief. So why then
does CDOT give priority to a toll road that is of marginal value
at best in addressing regional traffic needs over badly needed
improvements to free roads? With transportation money in short
supply, especially in the wake of the defeat of Referendum D,
it simply doesn't make sense to rush blindly forward towards
a toll road that won't solve pressing congestion problems.
- So-called "non-compete agreements" between
local governments and tolling authorities have become a common
strategy to force drivers onto tolled roads by intentionally causing
congestion on nearby free roads. Because of shaky finances,
toll roads often can't make it without this extra help. Non-compete
agreements prohibit improvements on nearby free roads and, in
some cases, intentionally slow traffic on these streets to compel
drivers to pay tolls. We've already seen this happen around E-470,
as documented by the attached Denver Post article ("Deal
creates gridlock by design," 11/9/05). Even without a
formal agreement, CDOT won't be able to improve free roads that
will compete with struggling toll roads. If Colorado commits to
more and more toll roads, will it find itself in a position where
it can't fix or improve free roads without imperiling the toll
roads' finances?
- Over-optimism in toll revenue and traffic projections
is widespread. Colorado's Northwest Parkway, for example,
predicted it would carry 30,236 vehicles per day in 2004 and produce
$12.3 million in revenue, according to the Rocky Mountain News
("Toll
road bonds in danger of 'junk' label," 10/8/05). Instead,
the 2004 actual daily average was 7,479 vehicles and it produced
only $6.3 million. As a result, the Northwest Parkway Authority
has been forced to refinance its debt and is in danger of having
its bonds tagged with a "junk" rating. If Colorado toll
roads default on their bonds, who will get stuck holding the bag?
- Toll roads promote sprawl. Major development has followed E-470 around the metro area. In fact, new development is seen as a requirement for the financial success of toll roads -- it's actually written into these roads' revenue projections. As a state, do we want to make financial commitments that don't just encourage -- but actually require -- major new growth to meet financial obligations?
We believe these issues and others highlight the need to carefully scrutinize toll road proposals to make sure they really make financial and transportation sense. The last thing we need in these tight financial times for road projects is to make expensive mistakes that don't provide the best mobility value and exacerbate Colorado's pressing transportation challenges.
Thank you for taking the time to review these articles and familiarize yourself with this important issue. If you have any questions, I'd welcome the opportunity to talk with you more about the issue.
Sincerely,
Charles Baroch
Mayor of Golden, Colorado
Attached articles:
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