HomeMy WebLinkAboutDenise Colber I would like to submit my comments for the public comments at the
next city council meeting and put into public record. Thank you
The essence of corruption is taking a small amount of money from a large
group of people - then giving a large amount of money to a small group of
insiders - that is what many believe is going on at the TCA - the Toll Roads, a
run amok government agency.
• The Transportation Corridor Agencies (TCA) have been a bad deal for taxpayers
almost from inception. Formed as a Joint Power Agreement in Orange County in
1986, TCA was to plan, finance, construct and operate the toll roads, pay off its
debt and finally return free highways to taxpayers.
• In 1998 TCA commenced full operation with combined construction debt of
$2.9 billion, maturing in 2033 (SJHTCA) and 2040 (F/ETCA). Total debt service
would have been approximately $5.8 billion over the life of the bonds.
• Low driver usage caused TCA revenue projections to be overstated and thus debt
service obligations could not be met. This income shortfall necessitated repeated
refinancing and increasing reliance on capital appreciation bonds (CABs) These
bonds allow current interest to be deferred and added to principal, so that debt
grows instead of diminishing.
• 20 years later (June 30, 2018) TCA debt has ballooned to $4.7 billion, even
after two decades of principal and interest payments on the original $2.9 billion
debt.
• TCA will pay another $6.9 billion in interest to mature that debt, making
projected principal and interest payments of$11.6 billion thru 2053. This debt
will mature 13 to 17 years later than expected (2050 for SJHTCA and 2053 for
F/ETCA). Local taxpayers will have paid for the original roads at least 5 times.
• Combined toll revenue in 2018 was $38o million and developer fees were $32
million. Residents will be paying increasing tolls and developers will be paying
increasing impact fees thru 2053, for another 13 to 17 years longer than the
original plan. On top of that debt service load, there are the growing annual
operating costs of TCA bureaucracy.
• TCA has not built a road in 20 years, but tolls are now almost $9 one way on the
73 toll road. Developer fees are about $4-$6,000 per new single family residence
built in the 12 south OC cities and in rapidly growing unincorporated areas like
Ladera Ranch. Meanwhile, most local residents avoid the toll roads, leaving them
underused almost every hour of every day, a waste of capital and a deterrent to
mobility. This silent tax needs to stop as it drives up the cost of housing and
doing business in Orange County.
• TCA's sustainability is tenuous. They admit that "there can be no assurances
that the toll rates that are established will produce sufficient toll revenues to
permit the payment of debt service." In short, as tolls get too high, ridership and
revenue will decline. TCA's financing model might implode again, causing debt
obligations to fall into default without yet more refinancing.
• The failure to pay off the original debt on time means developer impact fees will
hang over the south Orange County real estate market much longer. Those fees
are passed on to consumers in home costs.
• TCA continues to accrue debt and grow in power and influence, keeping itself in
business at taxpayers' expense. TCA was a bad idea that got out of control and
must end. An independent forensic examination of the TCA is warranted.
Potential termination of TCA may be prudent.
Thank you,
DeniseMarie Bettencourt
A concerned tax payer