honolulutraffic.com

formerly The Alliance for Traffic Improvement

Seeking cost effective ways to reduce traffic congestion on Oahu

Recalculated costs and revenues for the HOT lanes proposal.

Having had extensive conversations with the professionals associated with the design, construction and administration of the Tampa Expressway, the closest highway facility to what we consider appropriate for Honolulu, we have decided to lower the projected cost of the HOT lanes by 10 percent to $900 million. Even this is conservative: READ MORE

Secondly, our earlier calculations of the future stream of toll revenues did not take into account the impacts of inflation. The initial $20.0 million revenue projection for tolls was in 2002 dollars, which  increases to $22.0 million in 2005 dollars. In addition, the table below uses the state's forecast of 3 percent annually to show growth through inflation. We also added a half percent annually to allow for toll revenue growth attributable to population growth.

The Bond Revenue Growth Rate of 4.2 percent reflects the average rate of growth in general excise tax revenues that the state experienced over the past twenty years.

The table below shows that, using these rates the toll revenues will retire $487 million in municipal bonds over 25 years.