2010

If the ability to move people and goods is important in sustaining economic health during prosperous times, it is absolutely vital in regaining our economic footing— as is the case today. The modest traffic growth we experienced in 2010 — an increase of .94 percent compared to 2009 — confirms that our modest economic recovery is underway.

In addition to our ongoing focus on serving our customers, 2010 saw continued progress on the largest capital project in our history -— replacing the bridges over the Kansas River in Lawrence. This project, begun in 2008 at a cost of approximately $130M, continues to be on schedule and under budget. In addition, we began a major project to rebuild a five-mile section of roadway just east of Lawrence.  This is the final section of Turnpike roadway between East Topeka and Kansas City that still had the original 1955 pavement and base.

As a result of ongoing efforts to reduce operating costs, I am pleased to report that our 2010 operating expenditures were less than what we spent in 2007. Over the past five years, the number of full-time Turnpike employees has been reduced by 14 percent. These reductions were achieved through attrition as well as other targeted initiatives and did not include any layoffs or furloughs.

In addition further savings were found as the KTA executed a bond refunding transaction that resulted in present value savings of more than $4 million with respect to a portion of the outstanding bonds associated with our 2002 bond issue. At least $1 million of that savings is a direct result of our bond rating being upgraded by Standard & Poor’s from A+ to AA-, a fact that we are especially pleased about.
 

We continue to deploy technology such as self pay devices in targeted locations that will assist in further reductions in our operating costs.  This effort is part of our objective to reduce our operating cost structure while maintaining our core commitment to a high level of customer service.  As we move forward, we are always mindful that the sole purpose of our business is to provide a transportation service for the movement of people and the provision of commerce.