The Delaware River Port Authority believes it can salt away enough money in the next year to begin putting a dent in its $1.4 billion overall debt.
In unveiling the agency’s 2012 budget Wednesday before the commissioners who serve on the finance committee, Chief Financial Officer John Hanson suggested the DRPA’s general fund could grow from the present $291 million to $348 million by the end of 2012.
The fund — essentially a surplus account — should have approximately $250 million in it in order to satisfy bond holders and bond rating agencies, Hanson said.
That would give the DRPA “$100 million to spare,” the financial officer observed.
The plan — both Hanson and Chief Executive Officer John Matheussen said — is for the DRPA to make $42 million in payments to meet “post-employment benefit” obligations and $50 million toward debt reduction.
“We are improving on the financial status of the DRPA,” Matheussen said of an overall $126.87 million spending plan — $81.57 million for the DRPA and $45.3 million for the PATCO High Speed Line.
“We can begin to address, even more than in the past, some of the issues we face.”
Hanson cautioned against those who suggest draining the general fund to reduce tolls or for other uses. He said the fund currently serves as collateral for $232 million in bonds, $132 million in post-employee benefit obligations, $20 million in loan guarantees made for such non-DRPA projects as the Adventure Aquarium and the Victor Lofts complex — both in Camden — and insurance deductibles on its property.
The budget includes a full year of revenues generated by a $1 increase in the DRPA base bridge fare — from $4 to $5 collected westbound only — and a 10 percent increase in PATCO fares. Both increases went into effect in July.
Hanson said the DRPA expects to receive $287.44 million in bridge fares in 2012, up $17.87 million from this year, and $25.62 million in PATCO fares, up $820,000 from a year ago.
The bridge revenue projection estimates a 5 percent drop in the number of vehicles using the four DRPA spans. Matheussen said the agency is taking a “conservative” view of bridge traffic in view of the economy.
As for PATCO, the projection is for the same ridership levels in 2012 as have occurred in 2011 — even though usage is up over 300,000 from 2010.
The budget — to be voted upon by the full DRPA commission at its Dec. 14 meeting — anticipates that PATCO will need $19.7 million from the DRPA side to balance its books. That is $800,000 less than the budgeted 2011 subsidy.
Non-contractual employees will not receive a raise in 2012 — the fifth consecutive year for most and the sixth for the executive level. Unionized workers — numbering about one-third of the overall 900 employee workforce — will see an approximate 3 percent raise, Matheussen said.
The DRPA has granted managers and administrators who move up the ladder additional compensation. Last month, commissioners afforded John Rink a $70,000 raise when he moved from technical supervisor of PATCO’s Way and Power Division to PATCO general manager.
The DRPA budget covers the agency’s One Port Center building along the Camden waterfront, an E-Z Pass customer service center and the RiverLink Ferry between Camden and Philadelphia.
The seasonal ferry is projected to bring in $57,000 in revenue in 2012, the same as in 2011.
Matheussen said a drop in concerts during 2011 at the Susquehanna Bank Center adversely affected ferry revenue.
Typically, the ferry runs daily during the peak of summer as well as on weekends in spring and early fall.
“There actually has been some conversation,” Matheussen said, about reducing the number of runs. “Perhaps a limited schedule — weekends, holidays and special events.”