E-470 expects to see about $10 million less in toll revenues this year than predicted last year by the highway’s traffic and revenue consultant.
John McCuskey, the highway’s finance director, said high gas prices, consumer resistance to this year’s toll increase and the diversion of some traffic to the T-REX road project are the principal reasons for the reduced forecast.
A year ago, Wilbur Smith Associates, E-470’s traffic and revenue adviser, said the highway should approach about $99 million in toll revenues this year, according to McCuskey.
Smith Associates’ revenue forecast was given before gas prices spiked to $3 a gallon.
Smith Associates is one of only a handful of toll traffic and revenue firms in the country – an industry that has been criticized for routinely delivering inflated forecasts.
McCuskey said actual toll receipts are expected to be about $9.8 million short of Smith Associates’ earlier forecast for 2006, but the road has offset part of the decline with about $2 million in payments from toll violators.
E-470 set up an administrative law court this year to process toll violations and the highway has become “more efficient” at collecting from toll scofflaws, he said.
In a presentation to state lawmakers Tuesday, McCuskey and E-470 executive director Ed DeLozier stressed that the 15-year-old toll road is healthy financially, with more than $200 million in reserves.
By the end of next year, E-470 officials plan to refinance about $520 million of the highway’s $1.2 billion in debt in an effort to level out future debt payments, McCuskey said.
The E-470 executives spoke at the legislative hearing after leaders of the neighboring Northwest Parkway told legislators of their plan to seek private investors who might acquire the toll highway under a long-term lease arrangement.
Toll revenue on the 11-mile Northwest Parkway has badly lagged original projections. The road opened in late 2003.
The Northwest Parkway and E-470 each raised tolls in January, and each has another increase scheduled for 2009. Both are among the most expensive toll roads in the country in terms of toll cost per mile.
It costs $9.75 for a two-axle vehicle to travel the full 47 miles of E-470.
Staff writer Jeffrey Leib can be reached at 303-954-1645 or jleib@denverpost.com.
