Get ready to pay more to cross the new Narrows Bridge later this year to address flat revenue and rising expenses.

The state’s tolling director told an audience at Thursday morning’s weekly Public Affairs Forum at Cottesmore of Life Care in Gig Harbor that he expects an increase of more than $1 in toll rates.

Craig Stone, toll division director for the state Department of Transportation, said options for review by the bridge’s Citizen Advisory Committee would hike tolls paid at booths between $1.50 and $2. Good to Go! toll rates would go up between $1.50 and $1.75 under plans being contemplated.
The committee can consider other options as well.

The Citizen Advisory Committee is scheduled to make a recommendation to the state Transportation Commission, the state’s toll-setting authority, on March 20. A public hearing is set for Feb. 8.

Although previous forecasts suggested a toll rate increase might not be needed before July 1, Stone said the new rate could take effect as early as June 1.

The advisory commission will begin discussions tonight at 6 at the Gig Harbor Civic Center, 3510 Grandview St.

The state sold 10 bonds to finance the eastbound bridge’s construction based on tolls increasing to cover rising principal and interest payments on the debt. There is no option for refinancing.

In addition, the state also deferred payment of the sales tax on bridge construction and must start to make those payments in December for the next 10 years.

Stone said there are four major considerations when it comes to setting toll rates: basic debt service, maintaining the minimum bridge fund balance, the deferred state sales tax payments and the repayment of a $5.3 million startup loan from the state’s gas tax account.

The weak economy is having an impact on bridge traffic, too. The state has lowered its estimated number of vehicles making round trips on the bridge in 2012 from 16 million to 14 million, and that means less revenue.

“We’re not expecting traffic to grow any more,” Stone said.

The proposed toll increase likely will have an impact on Gig Harbor businesses, Stone said, although he did not elaborate.

“The question is, how long will the Great Recession be in place?” he said.

Projected bridge revenue this year is $46.2 million, while expenses — debt service, as well as maintenance and operations costs — are expected to be $50.3 million, Stone said in his presentation.

“Our revenue coming in is flat,” Stone said.

The fund balance remained stable throughout 2010, when the state Transportation Commission decided to spend down the fund balance rather than raise toll rates to meet expenses. At that time, the commission passed a policy that mandated a minimum reserve fund balance of 12.5 percent of the annual total bridge costs to cover revenue shortfalls or cost increases.

“The rate increase was deferred in 2011 due to the bad economy,” Stone said.

Without new revenue, however, ongoing expenses are projected to deplete the reserve in November, he said.

“We were basically living off our savings for a while,” Stone said.

Bridge tolls were last raised by $1 in 2008.

Current toll rates are $2.75 for customers who pay with a Good to Go! account and $4 for drivers who pay cash at the toll booths.

On Dec. 3, the state began to offer photo tolling. Those who cross the bridge without stopping at a toll booth or signing up for a Good to Go! account get a $5.50 bill in the mail, and those who sign up for Good to Go! but don’t put a transponder on their vehicle pay $3.

“Pay by mail is the biggest difference,” Stone said.

The phrase “don’t shoot the messenger” came up during the presentation, and Stone made the best of a difficult situation in detailing a likely toll increase.

“I appreciate the opportunity to come,” he said. “I know it’s not necessarily pleasant.”

Public meetings
Upcoming Narrows Bridge tolling meetings will be held at the Gig Harbor Civic Center, 3510 Grandview Street.

A Feb. 8: WSDOT open house from 5:30 to 6:30 p.m.; advisory committee meeting and public hearing from 6 to 8:30 p.m.

A Feb. 22: Advisory committee meeting from 6 to 8 p.m.

Reporter Brett Davis can be reached at 253-853-9243 or by email at brett.davis@gateline.com.