While the turnpike has solved the traffic problem in New Jersey for trans-State drivers, at least for those willing to pay the 1½-cents-per-mile toll, it has done little for the average New Jersey driver. Traffic even on parallel routes now exceeds the volumes carried at the time the turnpike was opened, although were it not for the turnpike the increases would certainly have been greater. It is estimated that vehicle mileage on the turnpike was less than 6 percent of the total vehicle mileage in the State in 1953.
Aside from its striking traffic volume and revenue, the New Jersey Turnpike has other unique features. It was financed by revenue bonds, not sold through competitive bidding, but by negotiation with a group of insurance companies. A feature of the agreement was that funds were to be made available as needed, on a “forward commitment” basis. The original issue amounted to $220 million and carried an interest rate of 3¼ percent, which applied only to the funds actually taken. The agreement also provided for interest to be paid at the rate of one-half of 1 percent on the amount not taken.
With the original section completed and its attraction to traffic known, additional sections are under construction or proposed and are being financed also by revenue bonds but sold through competitive bidding. Connections with the Holland Tunnel and the Pennsylvania Turnpike will soon be completed and will produce additional traffic, for which provision by widening the original section is being made.
Denver-Boulder Turnpike
In January 1952 the Denver-Boulder Turnpike in Colorado became the fifth of the modern toll roads. It, too, had its unique features. Studies indicated that toll revenues would not be sufficient to operate this road and amortize its estimated $5.3 million cost. A plan was devised that authorized the State highway department to construct the road with the proceeds of revenue bonds, and further provided that up to 30 percent of the interest and principal in any year, and up to 30 percent of an amount necessary to create an adequate reserve, might be paid from regular highway funds. Total principal payments by the State could not exceed 30 percent of $5.3 million, the original estimated cost. Costs of maintenance and operation were to be paid from State funds.
Subsequently, the cost estimate was revised to $6.3 million. With the combination of prospective toll revenues and the guaranty of part of the costs of amortization, bonds in that amount sold at a net interest cost of 2.97 percent. Since the opening of the turnpike, costs of operation have been borne by highway funds, but the revenues from tolls have been more than adequate to meet the requirements for debt service and creation of a reserve, and it has not been necessary to call on the highway funds for that purpose.
Turner Turnpike
The year 1953 saw the opening of the Turner Turnpike in Oklahoma, on the route connecting Tulsa and Oklahoma City. The toll section includes 88 miles of the 106-mile distance between the cities. The State highway department constructed the connections to the cities at each end, without charge to the toll section.
This road probably has fewer unusual features of operation or environment than any of its predecessors, and more nearly represents
