Oklahoma Transportation Authority Approves Refinancing Bonds
Posted on: Thursday, 18 August 2005, 12:00 CDT
Aug. 18--OKLAHOMA CITY -- The Oklahoma Transportation Authority on Wednesday gave approval to refinance up to $750 million in bonds.
However, the agency that operates the state's 10 turnpikes plans on refinancing only $670 million in bonds to take advantage of lower interest rates.
Such a move will save the agency about $66 million, which will be put into capital improvements on the system, said Wendy Smith, Transportation Authority finance director.
The proposal must be approved by the state Council of Bond Oversight, said Phil Tomlinson, transportation secretary.
The Transportation Authority is on schedule to pay off its $1.2 billion in debt by 2028 if no other bonds are issued, Smith said.
"Our enabling legislation says we are functioning until all the bonds are paid off in 2028," Smith said. "At that point, the roads are turned over to the Oklahoma Department of Transportation."
If that occurs, the Department of Transportation would be responsible for maintenance.
Currently, the Transportation Authority "cross-pledges" revenues from turnpikes to pay for maintenance and other improvements. The agency sells bonds to build and extend additional roads, such as the Creek and Kilpatrick turnpikes. Those bonds are retired with revenue generated from toll collections. The last toll increase was in 2001.
The OTA is studying whether portions of the state's most-traveled toll road, the Turner Turnpike between Oklahoma City and Tulsa, will need to be widened.
The savings from refinancing will not be enough to cover the potential cost of widening the Turner Turnpike, Smith said.
"I don't have any way to see into the future on whether or not there are any more bond issues," Smith said.
The Transportation Authority has refinanced bonds several times in the past, she said.
In other action, the authority awarded a nearly $13.7 million contract to Glover Construction for milling, repair and asphalt overlay on about 15 miles of the Indian Nation Turnpike in southeastern Oklahoma. The project is expected to start in mid-September or early October and will last about 300 days, said Bridgette Berlgan, authority spokeswoman.
The Transportation Authority also awarded a contract of slightly more than $14 million to Duit Construction for a concrete over lay project on the Muskogee Turnpike from its beginning for 12 1/2 miles. The 420-day project is expected to begin in mid-September or early October, Berlgan said.
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Source: Tulsa World
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