Smoother bridge crossings

After years of perceived issues of mismanagement and patronage, the Nassau County Bridge Authority is on the upswing with a high bond rating based on strong financial management and completion of a long-term Atlantic Beach Bridge overhaul.

Moody’s Investors Service, a credit rating agency, upgraded the bridge authority’s bond rating — a financial score that impacts the ability to borrow money — to an overall A2, citing several factors, including having renovated the bridge by splitting the project up over time and using multiple cost-cutting measures. The bridge connects barrier island Atlantic Beach with the mainland.

Bridge Authority Executive Director Vincent Grasso said that an agency such as Moody’s is more often reluctant to increase the bond rating of what he termed a “single-source facility” meaning that revenue is generated from only one thing, in this case toll money.

“We’ve demonstrated that there are layers upon layers of contingency, cash revenue in our case and being able to manage our finances,” said Grasso, who acknowledged the bridge authority’s reputation as a “den of corruption.” “[The bond rating increase] really means stability. The toll isn’t going up and we are managing the bridge in a fiscally responsible manner. Even if we want to raise our tolls, we can’t turn on a dime. It’s an 18-month long process.”

Usually there has been a toll increase roughly every 10 years. The last toll increase was in 2007. A traffic study then showed that another uptick would be needed in 2016, when expenses were projected to be $5.652 million. Expenses in 2016 were $3.791. A primary cost-cutting measure has been paring the workforce. It’s at 32, a 42 percent decrease from 55 in the past several years, and the lowest in the bridge authority’s history. Tolls are not being raised for at least another five years, officials said.

“It is a world of difference from 1999,” said James Vilardi, chairman of the bridge authority’s five-member none-paid board. “This is a really well run model authority whose focus is transparency. We spend every dollar as cost effectively as we can,” Vilardi added. After an inspection last year, the bridge is considered one of most structurally sound in the state.

Roughly nine years ago, the authority began an extensive restoration of the bridge. Hurricane Sandy disrupted the first phase. The overall $9.9 million project was completed on Jan. 12 of this year, four days ahead of schedule, officials said.

According to Moody’s lead analyst of project finance, Eriq Alexander, the bond rating increase was based on paying down debt, what was called “strong fiscal stewardship” and an increase in revenue.

“Nassau County Bridge Authority’s upgrade to A2 reflects [the] recently completed rehabilitation of the bridge facility resulting in limited future capital spending, the lack of debt plans, and organizational restructuring contributing to material improvement in retained cash,” Alexander wrote in the rating summary.

Grasso said that using the E-ZPass system or shifting to open road toll can be discussed. He said E-ZPass charges for the system and is likely to reduce revenue.