NTRAC Final Study - Nebraska Department of Roads - State of ...

CHAPTER 8 – FINANCIAL AND ECONOMIC EVALUATION
Table 8-5: Scenario C 20-year Financial Summary
2010 2030 Difference Change
Low Ridership Bus Bus
Ridership 56,391 75,951 19,560 35%
Revenue 168,453 226,882 58,429 35%
Operating Cost 438,720 438,720 0 0%
Subsidy 270,267 211,838 -58,429 -22%
Fare Box Recovery 38% 52%
High Ridership
Ridership 80,510 108,435 27,925 35%
Revenue 240,630 324,094 83,464 35%
Operating Cost 438,720 438,720 0 0%
Subsidy 198,090 114,626 -83,464 -42%
Fare Box Recovery 55% 74%
Source: Wilbur Smith Associates
Capital Investments
As seen in Table 8-6, bus capital costs will total $3 million in 2009, inclusive of buses and new
park and ride lots. The buses will be refurbished after 8 service years for 10 percent of their
purchase price. New buses will be purchased in 2021, and the old buses will be sold off for their
residual value the following year. The buses purchased in 2021 will be due for refurbishment in
2030.
Table 8-6: Scenario C 20-year Capital Improvements Summary
Bus 2009 2018 2021 2022 2030
Rolling Stock 2,250,000 225,000 2,250,000 -112,500 225,000
Facilities 728,000
Total 2,978,000 225,000 2,250,000 -112,500 225,000
Source: Wilbur Smith Associates
Eligible Funding Sources
It is very useful to understand the difference between “funding and “financing.” Funding is the
primary stream of revenue used to offset cost or to support various leveraging options. Finance
is the means by which the primary revenue streams are manipulated to make funds available
when needed or to reduce the costs of borrowing. By way of illustration, in the case of bonds
issued against revenues from a tax dedicated to transit use, the revenue stream from the tax
pledged as security for the bonds would be the “funding.” The bond proceeds, which concentrate
the long-term tax revenues into several years to meet construction expense, would be the
“financing.” This paper will examine the funding sources.
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NEBRASKA TRANSIT CORRIDORS STUDY
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WILBUR SMITH ASSOCIATES