DRAFT

million. Sales tax revenues are to be put into a reserve account for future expenditure on rail constructionand to help support the acquisition of FTA New Starts funding. It is assumed that the Federal discretionaryfunding grant will provide 50 percent of the capital costs for rail.Other revenue assumptions for the Vision Plan include the following:The revenue inflation factor for all other revenues other than the sales tax is 2.0 percent.The farebox recovery ratio for bus is 23 percent.Beginning in 2020, the farebox recovery ratio for rail is 20 percent in the first year, 25 percent in thesecond year, and 30 percent in the third year and thereafter. That farebox recovery ratio is based onanalysis of other rail systems.Under these assumptions, it is possible for PSTAto begin offering customers significantly improvedbus service as well as light rail service. Whilebeyond the 10-year timeframe of the TDP, thepursuit of a sales tax referendum requires alonger-term financial view and implementationplan.Tables 7-5 and 7-6 present the operating andcapital budgets, respectively, for the Vision Planbased on the set of assumptions describedpreviously. Figures 7-7 through 7-9 illustrate thebalance of expenditures and revenues for operating, capital, and operating and capital combined,respectively. Rail and bus capital and operating expenses and revenues are differentiated in each five-yearphase of the Vision Plan. As shown in those tables, there is an overall surplus of $209 million over the 25-year planning horizon of the Vision Plan.Tindale-Oliver & Associates, Inc.Pinellas Suncoast Transit AuthoritySeptember 2010 7-18 Transit Development Plan