Bridge board approves toll hikes effective April 1

NEWS RELEASE

INTERNATIONAL BRIDGE ADMINISTRATION

************************* JIBA approves April 1 toll increase

Card customer concerns addressed

February 26, 2009 - The Joint International Bridge Authority (JIBA) board of directors, responsible for overseeing the operation of the Sault Ste. Marie International Bridge, took action at its meeting today to move forward with a toll increase proposal.

Passenger vehicle tolls will increase to $2.50 (USD)/$3 (CDN) on April 1, 2009, and to $3 (USD) and the Canadian currency equivalent on April 1, 2010.

This is the culmination of a yearlong study by the Sault Ste. Marie International Bridge Administration (IBA) and a series of three public hearings.

Responding to public input, the board modified its original proposal that called for a toll increase for 16 toll classifications that would go into effect April 1 by delaying the toll hike for frequent user card customers until October 1, 2009.

The JIBA board also responded to public input by directing the IBA to honor all trips purchased before noon today as part of the move from a trip-based to a currency-based toll card account system, which is being done in conjunction with the toll hike.

The frequent user (toll card) rate will increase to $1.75 (USD) and the Canadian currency equivalent on October 1, 2009, and to $2.10 (USD) and the Canadian equivalent on April 1, 2010.

"A primary concern we heard from the toll card customers was the desire for pre-purchased trips to be honored and not subject to the toll increase," said IBA General Manager Phil Becker. "The JIBA board, in approving the toll increase, made it clear the pre-purchased trips will be honored."

Toll card customers desiring to purchase additional trips to "top off" trip balances on card accounts was another issue the board wrestled with.

IBA Chief Financial Officer Peter Petainen said that if customers were to top off accounts as they did prior to the April 1, 2007, toll increase, the IBA would stand to lose hundreds of thousands of dollars in toll revenue.

Petainen also said the precarious condition of bridge finances will not allow for such a loss without dipping into dwindling reserves.

Accordingly, the board took action to terminate trip-based deposits to toll cards effective noon today, but extended the implementation of the toll card increase to October 1, 2009.

The IBA estimates the six-month delay in the toll card increase will result in $50,000 lost commuter toll revenue, as compared to a planned April 1 implementation.

"This action by the board strikes a balance between fiscal responsibility and the desire to acknowledge the loyalty of our discounted toll account customers," said Becker.

The IBA explained that for customer account security, customer convenience, and business efficiencies, the Bridge I.Q. Proximity (Prox Card will be the only discounted toll account card sold to customers after noon today.

Customers are encouraged to convert existing magnetic-strip cards to the Prox Cards at their convenience.

"When trip balances on I.Q. mag-strip cards are used up, the mag-strip card will no longer be functional," said Petainen. "In its place, customers can purchase a currency-based Prox Card that can be used in both automated and staffed toll lanes at the same 30 percent commuter discount."

Likewise, existing trip-based Prox Card accounts will be changed to currency-based when trips on the account are exhausted.

Existing Prox Card holders will not be required to purchase new cards, but they will be required to sign new terms and conditions, applicable to the currency-based accounts.

The one-way toll amount of $1.40 (USD), which is equivalent to the current per trip toll, will be deducted from currency-based card accounts through September 30, 2009.

The one-way Canadian currency toll of $1.40 will be debited through March 31, after which $1.65 (CDN), the currency equitable rate effective April 1, 2009, will be deducted.

On October 1, 2009, with the implementation of the toll increase to the toll accounts, the one-way crossing toll charge will be $1.75 (USD) or the Canadian currency equivalent.

"After only a year and a half of availability, Prox Card users make up nearly 40 percent of all toll card usage," said Petainen. "The Prox Card program provides account security, customer convenience, and business efficiencies, and therefore we encourage all of our frequent customers to consider a Prox Card."

More details are available at the IBA website, and informational brochures are available from toll attendants.

"No toll attendants will lose their job due to this move toward more automation of the toll collection process," said Becker. "Our toll attendants do a great job and they are being called to expanded roles with bridge safety and security." The Sault Ste. Marie International Bridge is totally self-funded, primarily through toll revenue, and receives no operational subsidy from any state, provincial or federal government agency.

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