LA. 1 toll increases OK’d

The Louisiana Transportation Authority (LTA), the body that oversees operations of the toll collection systems on both the La. Highway 1 Overpass in Leeville and the Crescent City Connection (CCC) in New Orleans, gave approval last week in Baton Rouge without commen.

The 20 percent rise in tolls on the overpass in Leeville went into effect Jan. 1.

The increase means that commuter tolls will rise from $1.50 to $1.80, while most standard cars and trucks will see a rise from$2.50 to $3.

Large 18-wheel-type vehicle trailers will see their tolls rise from $12 to $15. Two- and three-axle six-tire vehicles will see a rate increase from $3.75 to $4.50, while four-axle vehicles will see a rise from $5 to $6.25. Motorists pulling a two-axle trailer will see rates rise from $7.50 to $9.25.

Five-axle vehicles will see an increase from $10 to $12.50.

Grand Isle and Port Fourchon residents will still be able to cross the span toll-free.

The increases are part of a set rise in toll rates that were established when the structure opened with rates set between the state and the bondholders who provided funding for construction.

As the original agreement indicates, toll are set to rise every five years on a set schedule until the bonds and loans for the project are paid off.

Representatives from the Louisiana Department of Transportation and Development (DOTD) spent the better part of an hour explaining to LTA members how toll collection measures, and the revenue derived from those measures, have been inconsistent since the span’s opening.

While the current collection amount have been sufficient to pay off current bond obligations, projections indicate that traffic and the subsequent toll collections will not hold steady enough in coming years to meet future obligations, which could likely require a refinancing of the bond and loan package used for construction.

To that end, Michael Bridges, who represented DOTD at the hearing, noted that DOTD is seeking to consolidate some $174 million in bond and loan proceeds from the project into one loan package with a more favorable interest rate.

Bridges acknowledged that should the new loan package be approved with the lower interest rate, the existing toll schedule with built in five year increases should provide sufficient debt service coverage with the traffic and toll projections seen for the future.