What The Toll Roads Cost You Other Than Tolls

  • ‘Unlike virtually every other toll road in the United States, the Orange County toll roads receive annual subsidies from taxpayers for road maintenance. These subsidies — which include payments by homeowners via “developer fees” — total an estimated $1.7 billion to date.’
  • ‘A substantial portion of the current debt is in the form of controversial “capital appreciation bonds,” which defer both principal and interest payments for an extended period of time. This structure permitted TCA to have much smaller debt service payment in the early years but will result in huge increases in annual debt service payments each year through maturity. For both FETCA and SJHTCA, capital appreciation bonds constitute 23 percent of total outstanding debt.’
  • ‘In order to meet the toll roads debt obligations, toll rates have risen dramatically; the debt per mile for the 241 toll road (managed by FETCA) is $64 million and for the 73 toll road (SJHTCA) is $136 million, compared to $17.1 million for the average U.S. toll road.’
  • Toll rates for the 241 and 73 roads are among the highest in the country. This has compelled price-sensitive commuters to avoid them and instead to drive on free public roads.

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Technology and blockchain developer and enthusiast as well as prolific musician.

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Shawn Gordon

Shawn Gordon

Technology and blockchain developer and enthusiast as well as prolific musician.

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