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H-2
Appendices
H Transit Case Study
sit system during each fiscal year. Examples of operational expenses include salaries and
benefits for transit-related Town employees; vehicle maintenance and cleaning; vehicle
fuel; advertising; training; and contractor fees. Operational expenditures are eligible for
up to a 50 percent reimbursement from federal grant programs after fare box revenues
have been accounted for. North Carolina’s State Maintenance Assistance Program
(SMAP) provides for an allocation of up to 25 percent of the operational costs as well. This
results in as little as 25 percent of the yearly operating expenses being borne by the Town’s
operating budget. Figure H.4 provides a typical operational budget for the transit system.
Town Operational Costs include
salary and benefits for the Town’s
Transit Director as well as portions
of other Town staff providing ser-
vices in support of the transit sys-
tem. Contracted Services include
the cost associated with a con-
tractor providing day-to-day tran-
sit operations after transit revenue
operations have begun. Contrac-
tor startup costs are associated
with a one-time expense that typi-
cally covers the costs of the con-
tractor prior to revenue operations
commencing. This may include
localized staff training, route famil-
iarization, and establishment of oversight and com-
munication protocols with Town staff. Additional
operational expenses for public information include
transit system advertising, website creation and
maintenance, and organizational branding efforts.
Fixed-Route Case Study Example Summary. Using
the assumptions in this example, the Town of Mor-
risville can anticipate an average annual transit ex-
pense of approximately $98,000 (Figure H.3). Ma-
jor capital expenses for startup vehicle acquisition
and facility improvements in Year One would cost
the Town $208,500 (in 2008 dollars). In addition to
operating expenses, Year Four expenditures include
replacement revenue vehicles for a total expendi-
ture of approximately $132,500. Federal and State grant funding
provide the majority of transit system funding after farebox revenue
subtracts from the total yearly operating expense.
Appendix H. Fixed Route T ransit Case Study, cont’d
Figure H.2 Summary of Capital Expenditures for Fixed Route Transit Case Study
Capital Budget Number Unit Cost Total Federal State Local
Vehicles 3 $125,000 $375,000 $311,250 $30,000 $33,750
ADA Vehicle 1 $36,000 $36,000 $29,880 $2,880 $3,240
Shelters 10 $15,500 $155,000 $124,000 $15,500 $15,500
Transit Stop Amenities (incl. sign,
bench, trash can, solar lighting,
and ADA upgrades)
50 $5,000 $250,000 $200,000 $25,000 $25,000
Office Equipment 1 $10,000 $10,000 $8,000 $1,000 $1,000
Maintenance Facility Equipment 1 $250,000 $250,000 $200,000 $25,000 $25,000
Totals - - $1,076,000 $873,130 $99,380 $103,490
Figure H.3 Summary of Fixed Route Transit Case Study Budget Years 1-5
Summary Budget Year 1 Year 2 Year 3 Year 4 Year 5
Capital Expenditures $1,076,000 - - $411,000 -
Operating Expenditures $435,000 $391,000 $397,000 $403,000 $409,000
Total Expenditures $1,511,000 $391,000 $397,000 $814,000 $409,000
Farebox Revenue $15,000 $16,500 $18,150 $19,965 $21,962
Capital Assistance $972,510 - - $374,010 -
Operating Assistance $315,000 $280,875 $284,138 $287,276 $290,279
Local Funds $208,490 $93,625 $94,713 $132,749 $96,760
Total Revenue $1,511,000 $391,000 $397,000 $814,000 $409,000
Figure H.4 Summary of Operational Expenditures for Transit Case Study
Operations Budget Total Federal State Local
Town Operational Costs $100,000 $50,000 $25,000 $25,000
Fuel $60,000 $30,000 $15,000 $15,000
Contracted Services $200,000 $100,000 $50,000 $50,000
Contractor Start Up $50,000 $25,000 $12,500 $12,500
Public Information $25,000 $12,500 $6,250 $6,250
Totals $435,000 $ 210,000 $105,000 $105,000