Fix 5 First

Opinion by Pete van Nuys

 The 73 toll way has failed to make its annual nut every year since opening in 1996. As a result, TCA adjusted expectations for 241 way down so it appears to be "making money." Above is the bond debt for 241 versus the annual toll revenues from 2003 through fiscal 2007.
 The essential business plan is for tolls to cover the cost of paying interest to their bond holders. Sounds pretty straight forward, doesn't it? But that plan has failed to the tune of over $215-million for the two roads in the last four years.
 Moody's now rates Foothill Eastern bonds at Baaa3, or "lower medium" grade for investors.
 So how are they covering their obligations? Good question. But they knew things weren't going well and sent Rep. Ken Calvert off the Washington DC to get $120-million worth of Federal Loan Guarantees— up to $12-million per year for 10 years— which they say they've never dipped into. You can read about this Innovative Financing on the U.S. Department of Transportation's web site here:

 By the way, you'll notice the Fed DOT site shows the 73 toll way got $111-million in California state funds, and the 241 got $35-million in state funds. So much for "no tax money used..."

 You can check out TCA's annual reports on their website, or download them here. To us this stuff is harder to figure out than Chinese algebra. Check 'em yourself and let us know what you can figure out.

 TCA annual reports: 2000 2001 2002 2003 2004 2005 2006 2007 "73" 2007 "241"

TOLL REVENUES FAIL TO MEET PROJECTIONS (AGAIN)

Research and Opinion by Michael Metcalf

Tolls collected on the 241 South for the fiscal year ended 6/30/07 failed to achieve projections, according the recently released TCA Continuing Disclosure Report for the Foothill Eastern Series 1995A Revenue Bonds.

The TCA has consistently overestimated tolls every year since the Disclosure Reports have been available.

It’s a familiar story—the supposed benefits of Foothill South are wildly exaggerated.