DRBA Adopts $70 Million 2008 Operating Budget

NEW CASTLE, DE — On Dec. 18, the Delaware River and Bay Authority (DRBA) Commission unanimously approved Resolution 07-52, which established an operating budget of $69,208,577 for the Delaware Memorial Bridge, the Cape May – Lewes Ferry, Food Services, Three Forts Ferry Crossing, Police and Administration. The Commissioners also authorized a budget of $5,570,393 to operate the Authority’s five regional airports.
The Authority’s 2008 Operating Budget total of $74.8 million represents a 4.6% increase over its current spending plan.
The board action took place at the bi-state agency’s monthly meeting held in James Julian Boardroom at the DRBA Administrative Complex in New Castle, Delaware.
According to Victor A. Ferzetti, the Authority’s Acting Chief Financial Officer, a Governmental Accounting Standards Board (GASB) established rules associated with other post employment benefit liabilities significantly impacted the agency’s operating budget.
“The new GASB standard addresses how state and local governments should account for and report their costs and
obligations related to post employment healthcare and other non-pension benefits, commonly referred to as OPEB,” Ferzetti said. “While this new GASB accounting rule does not require the funding of these future liabilities, the DRBA has developed a proactive and prudent financial plan to account for and fund our future obligations. If you deduct the funding of these liabilities, the budget increase is 2.9%”
In 2008, the DRBA has budgeted $1.14 million, which represents 20% of the OPEB liability that will be funded over a five year period. In addition, the DRBA estimates it will spend approximately $1,550,000 more in salaries and group medical coverage for its 456 full-time employees in 2008 compared to the current fiscal year. The Authority also expects cost increases of
about $589,000 in E-ZPass transaction fees, annual painting programs, and concession operations. The Commission also adopted a community contributions budget of $448,000, a significant reduction of 20% compared to 2007.
In 2008, the DRBA is expected to generate about $110 million and will make debt service payments of more than $22 million. More than 75 percent of the Authority’s revenues are derived from tolls paid at the Delaware Memorial Bridge.
In a related development, the Commission also approved a five year Capital Improvement Program (CIP) of $173 million for the Authority’s Crossing facilities. The 2008 Capital Improvement Program (CIP) for the Delaware Memorial Bridge and Cape May – Lewes Ferry is nearly $33 million and includes the following major projects: Phase III of the I-295 Northbound Delaware
Memorial Bridge Approach Road Widening, Repaving and Modifications; Full Steelwork Overcoat Rehabilitation of the 2nd Structure; Steelwork, Elevator Replacement and Security Enhancements on the DMB; I-295 Bridge Overpass Replacement; Automation and Telecommunications Upgrades; Dolphin and Fender Replacement at the CMLF and Rehabilitation of the Approach Roads and Signage to the CMLF in New Jersey.
On the horizon, the DRBA has identified some major projects that will require significant resources beyond 2010. These projects, which are estimated to cost more than $300 million, include Bridge Re-decking, Lead Paint Abatement and Seismic Upgrades of the New Jersey-bound Span, New Toll Collection System, Phase IV – Delaware Approach Roads, and Vessel Improvement Program
The DRBA is a bi-state governmental agency created by Compact in 1962. It owns and operates the Delaware Memorial Bridge, the Cape May- Lewes Ferry, the Three Forts Ferry Crossing and the Salem Business Centre in Carney’s Point Twp., NJ. The DRBA also manages corporate and aviation properties through its economic development powers – two airports in New Jersey
(Millville Airport and Cape May Airport) and three in Delaware (New Castle Airport, Civil Air Terminal and Delaware Airpark). All DRBA operating revenues are generated through the bridge, ferry and airport facilities.