Y2K PROBLEM: 25-CENT TOLL HIKE ON PEACE BRIDGE

[FINAL Edition]

Buffalo News

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Print Media Edition: Financial edition

Buffalo, N.Y.

Oct 23, 1999

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Authors: PATRICK LAKAMP

Pagination: C1

Personal Names: Rowe, Earl

Abstract:

The Peace Bridge Authority Friday approved a budget for next year that

relies on higher tolls to cover rising expenses.

"The toll increase was approved to make sure we can provide the

infrastructure

and technology needed to accommodate increases in both passenger and

commercial

vehicle traffic," said Earl Rowe, the authority's general manager of

corporate

services.

The 25-cent increase to take effect in January was first approved in

1997,

as part of a 75-cent toll increase the authority opted to phase in over

three years.

Full Text:

The Peace Bridge Authority Friday approved a budget for next year that

relies on higher tolls to cover rising expenses.

The toll increases will also help pay for the cost of building a second

bridge.

The new tolls take effect Jan. 1.

Passenger car tolls will increase to $2.25 from $2.

Commuter and token rates will increase to $1.52 from $1.32.

The charge for trucks will be 41 cents a ton, up from 35 cents.

Tolls for buses will rise to $10 from $7.50

"The toll increase was approved to make sure we can provide the

infrastructure

and technology needed to accommodate increases in both passenger and

commercial

vehicle traffic," said Earl Rowe, the authority's general manager of

corporate

services.

Tolls were last raised in June 1997, when round-trip passenger car

tolls

increased to $2 from $1.50.

The 25-cent increase to take effect in January was first approved in

1997,

as part of a 75-cent toll increase the authority opted to phase in over

three years.

The authority said next year's new rate for passenger cars will be half

that of its chief rival, the Ambassador Bridge in Detroit.

Overall, the Peace Bridge Authority hopes to collect $26.4 million in

tolls

next year, a 27 percent increase over the amount budgeted this year.

Commercial truckers will bear the brunt of the rising tolls.

The authority is counting on more truck traffic and the higher truck

tolls

to generate $19.4 million in commercial toll revenue, a 34 percent

increase.

Passenger cars are expected to generate $6.8 million in toll revenue, a

10 percent gain.

In all, the authority has planned for $32.8 million in total operating

revenue in 2000, which includes proceeds from the duty- free shop and

leases.

The authority budgeted a 15 percent increase in operating expenses.

Personnel

costs will increase by 21 percent.

Some $13.5 million in operating expenses -- maintenance, salaries and

traffic

control expenses, among other costs -- and more than $4 million in

costs

for interest charges and currency conversion will leave $14.8 million

for

the authority's capital improvement fund.

Last year, 6.2 million passenger cars and nearly 1.4 million trucks

crossed

the bridge between Buffalo and Fort Erie, Ont.

Rowe said the authority conservatively projected a 3.2 percent increase

in commercial vehicle crossings and a 1 percent increase in passenger

car

crossings next year.

The authority pays its expenses through tolls and rental income. It

does

not rely on Canadian nor American tax dollars.

Credit: News Staff Reporter