West Sacramento loan to help fund Yolo 80 toll lanes before toll revenue begins

The Capital Area Regional Tolling Authority (CARTA) approved a loan agreement on April 29 with the city of West Sacramento for up to $14 million, providing the new tolling agency with a funding source to cover operating and administrative costs before the planned 2028 launch of toll lanes on Interstate 80.

The loan allows the agency to draw funds in phases through July 2029. The debt carries a fixed 8% annual interest rate and uses a staggered, graduated repayment schedule intended to give the project time to begin collecting toll revenue.

Since its formation, CARTA has relied on $2.6 million in startup loans from the Sacramento Area Council of Governments (SACOG). The West Sacramento loan is expected to help fund the authority’s operations, toll system work, and back-office customer service planning before the Yolo 80 managed lanes begin revenue service.

“We are entering into the really heavy work period for Yolo delivery,” said Erik Johnson, representing SACOG. “We don’t want to be in a position where we’re worried about whether we are going to pay the bills. This starts to build an operating cushion for the board.”

Following the loan approval, the board amended its fiscal year 2025-26 budget to add $1 million in revenue from the West Sacramento loan. The amendment also removes previous placeholder costs for funding, financing, and audit work, while adding money for on-call services, a new website, and legal work tied to Yolo 80 agreements and procurement.

The loan is expected to be repaid from future toll revenue generated by the I-80 toll facility in Yolo County, after repayment of SACOG’s earlier loans. Traffic and revenue studies project that the Yolo 80 lanes could generate between $14 million and $25 million in opening-year gross revenue, with revenue expected to grow over time.

In a closed session on Wednesday, the board also voted unanimously to appoint a permanent executive director, subject to pre-employment activities, a background check, and successful negotiation of an employment agreement. The candidate’s name has not been released, and the employment agreement is expected to return to the board for approval at a future public meeting.

Meanwhile, heavy civil construction on the Yolo 80 managed lanes project has resumed after a winter pause. Caltrans representative Gurtej Bhattal said crews recently lifted the winter suspension and are continuing work that includes toll reader poles, sign pedestals, fiber splicing, drainage work, and electrical infrastructure.

Civil roadway construction remains on track for completion in November 2026, though CARTA officials clarified that additional toll system installation and testing will still be needed afterward. CARTA’s program timeline shows toll system installation and testing beginning in 2027, with testing completed and Yolo 80 opening to traffic in spring 2028.

As the Yolo 80 project moves toward toll system procurement and installation, CARTA is also beginning early work on its next potential corridor. Interim Executive Director Chadi Chazbek’s report says CARTA, the Sacramento Transportation Authority, and Caltrans District 3 are developing a request for proposals for a Level II traffic and revenue study for managed lanes on Interstate 5. According to CARTA’s broader timeline, I-5 managed lanes could begin operating in 2032.