Hillsborough Transit Authority (HART) Strategic Financial Advisory Services PDF Free Download
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DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
DRAFT FOR DISCUSSION PURPOSES ONLY
Hillsborough Transit Authority (HART)
Strategic Financial Advisory Services
April 4, 2022
HART Board Meeting
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Key Task Areas
Baseline Financial Model for HART System
Financial Scenarios
Estimating Infrastructure Investment and Jobs Act (IIJA) Federal Funding Increases
Key Findings
Recommended Financial Strategies
Next Steps
2
Agenda
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
3
Key Task Areas
Review HART’s Existing Plans
and Financial Documents 1
Develop Baseline Financial
Model for the HART System 2
Define and Test Alternative
Financial Scenarios 4
Review and Screen Potential Funding
and Financing Opportunities 3
Assess and Confirm HART’s Financial
Capacity to Deliver Tampa Streetcar Ext 5
INITIAL TASKS 1-6
Prepare Draft and Final Presentations 6
Make Refinements to Baseline
Financial Model to Include IIJA 7
Conduct Model Training
for HART Staff 8
Presentation to HART Finance
and Audit Committee and Board 9
ADDITIONAL TASK 7-9
Tasks Completed
Tasks Underway
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Federal Formula Funds
Federal COVID-19 Relief Funds
Federal Capital Investment Grants
Other Federal Discretionary Grants
4
Baseline Financial Model for HART System
FINANCIAL
MODEL
Passenger Fare Revenue
Passenger Fare Revenue Growth Rate
Ad Valorem Property Tax Revenue
Ad Valorem Property Tax Revenue Growth Rate
Local Capital and Operating Grants
Sales Surtax Increase, HART Share
Sales Tax Base, Sales Tax Revenue Growth Rate
Financing Terms
Existing Capital and Operating Costs
Operating Cost Estimates
Operating Cost Escalation
Capital Cost Estimates
Capital Cost Escalation
Project Phasing
INPUTS
Estimated Annual Cash Flow Needs (Capital and Operating)
Estimated Program Funding Gap
Estimated Project Funding Gaps
Financial Strategies to Fill Funding Gaps
Capital Investment Grant Strategy
Other Federal Discretionary Grant Strategy
Financing Strategy
OUTPUTS
Cost
Drivers
Local
Revenue
Drivers
Federal
Revenue
Drivers
State Capital and Operating Support
State New Starts Grants
State
Revenue
Drivers
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Unconstrained Capital and Operating Costs, 30-Year
HART Share of TECO Streetcar Extension
HART Share of Capital Costs, $53.8M
HART Share of Operating Costs (FY28-FY52), $101.9M
$0.2B Total
1%
“Funded” Transit Development Plan (TDP) Projects
Bus Service Improvements (FY23-FY52), $209.4M
Paratransit Operations (FY23-FY52), $770.5M
Paratransit Vehicle Expansion (FY23-FY52), $35.5M
Paratransit Vehicle Replacement (FY23-FY52), $23.4M
$1.0B Total
6%
Existing
HART Service
$6.6B
37%
“Unfunded”
TDP Projects
$10.0B
56%
Operating Costs (FY23-FY52)
$14.5B
Capital Costs
$3.3B
$17.8B
Frequency Improvements
Innovative Solutions
New Local and Express Bus Routes
SGR Capital Replacement Program
Capital Projects –System
Capital Projects –Transit Centers
Premium BRT/Fixed-Guideway Projects
Capital Costs, $711.5M
Operating Costs (FY23-FY52), $5.8B
5
81%
19%
Notes: Cost estimates are compiled from HART’s 2021-2030 TDP Update (August 2020) and other project-specific sources and reflect
varying levels of conceptual planning and design. Capital cost estimates are escalated annually by 3.5% and operating costs are
escalated annually by 3.7% to the assumed year of expenditure (YOE) costs. Cost estimates will change as projects advance further
into planning and design.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
6
Example Capital Project –Heavy Maintenance Facility
Existing HART
Service
“Funded” TDP
Projects
TECO Streetcar Ext
$106M TOTAL ESTIMATED PROJECT COSTS
$100M CAPITAL COSTS
Assumed to open to revenue service in 2027
$6M OPERATING COSTS
$0.2M/year in 2027 (2027-2046)
25.0%
22.0%
15.0%
24.0%
3.0%
11.0%
Federal Grants FDOT
Hillsborough County TPO
City HART
100.0%
HART
Notes: Capital costs of $100.0 million and operating costs of $0.2 million per year reflect preliminary planning level cost estimates for the Heavy Maintenance Facility.
Base operating costs are escalated annually by 3.7% to the assumed year of expenditure (YOE) costs, assuming all base costs are in 2020 dollars. Cost estimates may
change as project advances further into planning and design.
Source: HART Heavy Maintenance Facility Project Costs and Funding Sources, 2022
Primarily capital costs associated
with replacement of current
Heavy Maintenance Facility
Will improve resiliency, service
quality and reliability, safety,
accommodate future expansion,
and support planned transition to
electric fleet by 2035
“Unfunded”
TDP Projects
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
7
Example Frequency Improvement Project –TDP Frequency Improvements
$209.4M TOTAL ESTIMATED PROJECT COSTS
$209.4M OPERATING COSTS
$2.8M/year in 2023 (FY23-FY52)
10.0%
10.0%
10.0%
70.0%
Fare Revenue
Federal Formual Funds
State Operating Grants
Local Funding
“Funded” TDP
Projects
“Unfunded”
TDP Projects
Existing HART
Service
TECO Streetcar Ext
Key “Funded” TDP Project
included in Action Plan
Increased operating costs
associated with service frequency
improvements on routes 8, 9, 12,
15, 17, 30, 31, 32, 36, 38, 39, 42,
and 48
Notes: Base operating costs reflects preliminary cost estimates for phased frequency improvements on several existing
routes between fiscal year (FY) 2023 and FY 2030. Costs are assumed to continue beyond FY 2030 through the modeling
period. Base operating costs are escalated annually by 3.7% to the assumed year of expenditure (YOE) costs, assuming
all base costs are in 2017 dollars. Cost estimates are subject to material change. Farebox recovery is assumed to be 10%
of operating costs based on recent historical averages.
Source: HART’s 2021-2030 TDP Update (August 2020)
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
8
Example Fixed-Guideway Bus Project
$368M TOTAL ESTIMATED PROJECT COSTS
$152M CAPITAL COSTS
Assumed to open to revenue service in 2029
$216M OPERATING COSTS
$7.5M/year in 2029 (2029-2048)
60.0%
20.0%
20.0%
FTA Small Starts Grant
State New Starts Funding
Local Funding
10.0%
90.0%
Fare Revenue
Local Funding
Existing HART
Service
“Funded” TDP
Projects
TECO Streetcar Ext
Notes: Base capital costs of $119.0 million reflects preliminary planning level cost estimates for Tampa Arterial Bus Rapid Transit. Base operating costs of $5.4 million
reflects preliminary planning level cost estimates for Tampa Arterial Bus Rapid Transit. Base capital cost estimates are escalated annually by 3.5% and base operating
costs are escalated annually by 3.7% to the assumed year of expenditure (YOE) costs, assuming all base costs are in 2020 dollars. Cost estimates will change as project
advances further into planning and design. Farebox recovery is assumed to be 10% of operating costs based on recent historical averages.
Source: HART Staff Correspondence, July 2021
In Florida, fixed-guideway transit
projects can be partially funded by
federal and state grants
New fixed-guideway projects will
require significant operating cost
increases above existing levels
“Unfunded”
TDP Projects
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
9
Example Fixed-Guideway Rail Project
$1,641M TOTAL ESTIMATED PROJECT COSTS
$1,021M CAPITAL COSTS
Assumed to open to revenue service in 2033
$620M OPERATING COSTS
$21.5M/year in 2033 (2033-2052)
45.0%
27.5%
27.5%
FTA New Starts Funding
State New Starts Funding
Local Funding
10.0%
90.0%
Fare Revenue
Local Funding
Existing HART
Service
“Funded” TDP
Projects
TECO Streetcar Ext
Notes: Base capital costs of $650.0 million reflects preliminary planning level cost estimates for CSX Commuter Rail. Base operating costs of $12.0 million reflects
preliminary planning level cost estimates for CSX urban rail. Base capital cost estimates are escalated annually by 3.5% and base operating costs are escalated annually
by 3.7% to the assumed year of expenditure (YOE) costs, assuming all base costs are in 2017 dollars. Cost estimates will change as project advances further into
planning and design. Farebox recovery is assumed to be 10% of operating costs based on recent historical averages.
Source: Regional Transit Feasibility Plan, A Route Map for Implementation, HART Board Update, February 5, 2018
Rail projects generally have higher
capital and operating needs
Rail projects also often require
higher local and state matches
“Unfunded”
TDP Projects
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
10
Financial Scenarios
Existing Conditions with Infrastructure Investment
and Jobs Act (IIJA) Increases
Existing Conditions Plus Ferry with IIJA Increases
Existing Conditions Plus “Funded” Transit
Development Plan (TDP) Projects with IIJA Increases
Sales Surtax (45% of 1% Sales Surtax Increase)
with IIJA Increases
BASELINE
SCENARIO 1
SCENARIO 2
SCENARIO 3
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Surface Transportation Reauthorization
(FY 2022 –FY 2026)
Above baseline stimulus spending:
Infrastructure Investment and Jobs Act (IIJA)
Roads & Bridges
$110B
Transit
$39B
Rail
$66B
Safety
$11B
Airports
$25B
Ports & Waterways
$17B
Electric Buses
$7.5B
Reconnecting Communities
$1B
Electric Vehicle Chargers
$7.5B
Other important provisions for HART:
Increases FTA formula funds by over 30 percent, including substantial
increases in Urbanized Area, Bus and Bus Facilities,
Seniors/Disabilities, and State of Good Repair formula programs
Increases federal flex funds, including Surface Transportation Block
Grant, Congestion Mitigation and Air Quality Improvement (CMAQ),
and Transportation Alternatives funds
Increases funding for existing federal competitive grant programs
(RAISE, Bus and Bus Facilities, Low-No)
Creates new federal competitive grant programs (electric or low-
emitting ferry service, Mega, mobility/revolutionizing transportation,
reconnecting communities, safe streets, and more)
Provides up to $23B in potential Capital Investment Grant (CIG)
funds over next five years (FY 2022 –FY 2026)
Increases Small Starts max cost to $400M and max grant to $150M
Creates CIG bundling provision to allow sponsors to move multiple
projects through the CIG pipeline simultaneously
A dedicated funding source is required for HART to capture and leverage
these existing and new capital grant opportunities 11
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
12
Estimating IIJA Federal Funding Increases
FY 2021 HART Actuals FY 2022 Estimate
30% Increase
Federal Operating Grants $12.7M $16.5M
Federal Capital Grants
(Formula and Discretionary)
$6.5M $8.6M
Total Federal Funds $19.2M $25.0M
Conservatively assumes 30% increase between FY 2021 and FY 2022 and 2.0% thereafter
•Public transit estimates for Florida show 33% increase between FY 2021 and FY 2022 and 2.1% thereafter
Assumes increase from FY 2021 HART federal funding actuals, not HART allocations and awards
•HART received $16.4M in FY 2021 5307, 5339, and 5337 apportionments
•HART used a total of $19.2M in federal funds in FY 2021, including a portion of FY 2021 apportionments, prior year
apportionments, and other capital discretionary grants
Assumes $12.3M in carry over formula funds (prior year apportionments) are expended
Notes: Estimates based on authorized funding levels in Infrastructure Investment and Jobs Act (IIJA) and appropriated funding levels in FY 2022. Future years of federal formula funding are subject to annual appropriations.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Prior Baseline: Existing Conditions
Projection of future capital and
operating costs and revenues
Existing service only,
no TDP or TECO Streetcar Extension
Without a realignment of future
costs and/or a new revenue stream,
fiscal cliff is projected in FY 2026
13
$1.7B
estimated total unfunded capital
and operating costs (30-yr)
$6.6B
estimated total capital and
operating costs (30-yr)
$4.8B
estimated total existing capital
and operating revenue (30-yr)
Existing HART
Service
“Funded” TDP
Projects
TECO Streetcar Ext
“Unfunded”
TDP Projects
Notes: Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Findings are based on estimated existing capital and
operating costs and growth rates, conceptual planning level input assumptions for new capital and operating costs, revenue estimates, cost and revenue growth rates,
federal award amounts, phasing, and other key cost and revenue drivers.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
New Baseline: Existing Conditions with IIJA Increases
Projection of future capital and
operating costs and revenues
•IIJA increase of $5.8M annually (FY 2022)
Existing service only,
no TDP or TECO Streetcar Extension
Without a realignment of future
costs and/or a new revenue stream,
fiscal cliff is projected in FY 2027
$1.5B
estimated total unfunded capital
and operating costs (30-yr)
$6.6B
estimated total capital and
operating costs (30-yr)
$5.1B
estimated total existing capital
and operating revenue (30-yr)
Existing HART
Service
“Funded” TDP
Projects
TECO Streetcar Ext
“Unfunded”
TDP Projects
Notes: Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Findings are based on estimated existing capital and
operating costs and growth rates, conceptual planning level input assumptions for new capital and operating costs, revenue estimates, cost and revenue growth rates,
federal award amounts, phasing, and other key cost and revenue drivers.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Scenario 1: Existing Conditions Plus Ferry with IIJA Increases
Projection of future capital and
operating costs and revenues
Existing service only,
no TDP or TECO Streetcar Extension
•Assumes new Tampa Bay passenger ferry
service opens in 2028 with $4.8M grant award
Without a realignment of future
costs and/or a new revenue stream,
fiscal cliff is projected in FY 2026
15
Existing HART
Service
“Funded” TDP
Projects
TECO Streetcar Ext
“Unfunded”
TDP Projects
$1.8B
estimated total unfunded capital
and operating costs (30-yr)
$6.9B
estimated total capital and
operating costs (30-yr)
$5.1B
estimated total existing capital
and operating revenue (30-yr)
Ferry
Notes: Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Findings are based on estimated existing capital and
operating costs and growth rates, conceptual planning level input assumptions for new capital and operating costs, revenue estimates, cost and revenue growth rates,
federal award amounts, phasing, and other key cost and revenue drivers.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
16
Tampa Bay Passenger Ferry Project
$254.3M TOTAL ESTIMATED PROJECT COSTS
$46.1M CAPITAL COSTS
Assumed to open to revenue service in 2028
$208.2M OPERATING COSTS
$7.2M/year in 2029 (2029-2047)
10.0%
90.0%
Federal Ferry Grant
Additional Funding Needed (Hillsborough County,
Other Federal Grants)
10.0%
90.0%
Fare Revenue
Additional Funding Needed (HMS)
Requires additional capital and
operating funding
•Partnership funding from HMS and
Hillsborough County
•Other federal discretionary grants
Requires definition of roles and
responsibilities for management
and operations
“Funded” TDP
Projects
TECO Streetcar Ext
“Unfunded”
TDP Projects
Ferry
Existing HART
Service
Notes: Base capital costs of $36.2 million include ferry terminal and maritime facilities hard costs, ferry vessels, transit vehicles, design, engineering, and all other project
development activities. Base operating costs of $104 million are assumed to occur over a 20-year period. Base capital cost estimates are escalated annually by 3.5% and
base operating costs are escalated annually by 3.7% to the assumed year of expenditure (YOE) costs, assuming all base costs are in 2019 dollars. Cost estimates will
change as project advances further into planning and design. Farebox recovery is assumed to be 10% of operating costs based on recent historical averages.
Source: Tampa Bay Passenger Ferry Presentation, Ferry Project Business Plan Summary, HART Board Meeting, September 9, 2019
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Key Drivers to Fiscal Cliff
COVID-19 cost impacts
COVID-19 relief funds
Infrastructure Investment and Jobs
Act (IIJA) annual federal funding
increases
Expenditures projected to grow
faster than revenue post-COVID-19
•3.7% expenditures
•2.9% revenue
COVID-19
Pandemic
17
Revenue Impacts
COVID-19 Relief Funds
$103.4M Total (one-time)
IIJA Increase
$5.8M Annually (FY 2022)
Cost Impacts
9.3% annual operating cost
growth between 2019 and 2022
Additional operating cost
growth anticipated to attract
and retain workers
Notes: Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Findings are based on estimated existing capital and
operating costs and growth rates, conceptual planning level input assumptions for new capital and operating costs, revenue estimates, cost and revenue growth rates,
federal award amounts, phasing, and other key cost and revenue drivers.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Primarily an Operating Cliff
COVID-19 operating cost impacts
•Abnormally high operating costs
•Labor and materials shortage
COVID-19 operating revenue impacts
•Passenger fare revenue
Expenditures projected to grow faster than revenue post-COVID-19
•3.7% expenditures
•3.0% revenue
COVID-19 capital cost impacts
•Abnormally high construction costs
•Labor and materials shortage
Federal formula funds generally grow on average by 2.0%
State and local funds are assumed to grow at lower 1.5%
Expenditures projected to grow faster than revenue post-COVID-19
•3.5% expenditures
•1.9% revenue
Capital costs and revenue limited by available funding
(local match)
Capital
Operating
18
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
New Baseline: Existing Conditions with IIJA Increases
$1.5B
estimated total unfunded capital
and operating costs (30-yr)
$6.6B
estimated total capital and
operating costs (30-yr)
$5.1B
estimated total existing capital
and operating revenue (30-yr)
Existing HART
Service
“Funded” TDP
Projects
TECO Streetcar Ext
Projection of future capital and
operating costs and revenues
•IIJA increase of $5.8M annually (FY 2022)
Existing service only,
no TDP or TECO Streetcar Extension
Without a realignment of future
costs and/or a new revenue stream,
fiscal cliff is projected in FY 2027
“Unfunded”
TDP Projects
Notes: Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Findings are based on estimated existing capital and
operating costs and growth rates, conceptual planning level input assumptions for new capital and operating costs, revenue estimates, cost and revenue growth rates,
federal award amounts, phasing, and other key cost and revenue drivers.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Scenario 2: Existing Conditions Plus Funded TDP Projects with IIJA Increases
Projection of future capital and
operating costs and revenues
Existing service plus all “funded” TDP
projects (no TECO Streetcar Extension)
Without a realignment of operating
costs and/or a new revenue stream,
fiscal cliff is projected in FY 2025
$2.5B
estimated total unfunded capital
and operating costs (30-yr)
$7.6B
estimated total capital and
operating costs (30-yr)
$5.1B
estimated total existing capital
and operating revenue (30-yr)
Existing HART
Service
“Funded” TDP
Projects
TECO Streetcar Ext
“Unfunded”
TDP Projects
Notes: Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Findings are based on estimated existing capital and
operating costs and growth rates, conceptual planning level input assumptions for new capital and operating costs, revenue estimates, cost and revenue growth rates,
federal award amounts, phasing, and other key cost and revenue drivers.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Scenario 3: Sales Surtax (45% of 1% Sales Surtax Increase) with IIJA Increases
Existing service, TECO Streetcar Ext,
“funded TDP projects”, and 32% of
unfunded projects
45% of 1 cent sales surtax increase
Financing for major capital projects in
FY2026-27 (4.0% interest rate, 30-yr
repayment)
-
estimated total unfunded capital
and operating costs (30-yr)
$11.0B
estimated total capital and
operating costs (30-yr)
$11.0B
estimated total existing capital
and operating revenue (30-yr)
Existing HART
Service
“Funded” TDP
Projects
TECO Streetcar Ext
32% of “Unfunded”
TDP Projects
Notes: Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Findings are based on estimated existing capital and
operating costs and growth rates, conceptual planning level input assumptions for new capital and operating costs, revenue estimates, cost and revenue growth rates,
federal award amounts, phasing, and other key cost and revenue drivers.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Scenario 3a: Unconstrained Sales Surtax with IIJA Increases
Existing service, TECO Streetcar Ext,
“funded” TDP projects, and 100% of
unfunded projects
45% of 1 cent sales surtax increase
Without a realignment of operating
costs and/or a new revenue stream,
fiscal cliff is projected in FY 2025
$5.2B
estimated total unfunded capital
and operating costs (30-yr)
$17.8B
estimated total capital and
operating costs (30-yr)
$12.6B
estimated total existing capital
and operating revenue (30-yr)
Existing HART
Service
“Funded” TDP
Projects
TECO Streetcar Ext
100% of
“Unfunded”
TDP Projects
Notes: Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Findings are based on estimated existing capital and
operating costs and growth rates, conceptual planning level input assumptions for new capital and operating costs, revenue estimates, cost and revenue growth rates,
federal award amounts, phasing, and other key cost and revenue drivers.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
23
Comprehensive List of Funding and Financing Options (48 potential options)
23
Federal
1. Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Funds
2. Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) Funds
3. American Rescue Plan (ARP) Funds
4. New Infrastructure Investment and Jobs Act (IIJA) Discretionary Grants
5. Build Back Better Act (BBB) Budget Reconciliation
6. Congressional Directives (“earmarks”)
7. FEMA Building Resilient Infrastructure and Communities (BRIC) Grants
8. FHWA Flex Formula Funds (CMAQ, STP, TA)
9. FHWA Highway Safety Improvement Program
10. FHWA National Highway Performance Program
11. FHWA National Highway Freight Program
12. FHWA Surface Transportation System Funding Alternatives (STSFA) Grants
13. FHWA Advanced Transportation and Congestion Management Technologies Deployment
14. FHWA Accelerated Innovation Deployment (AID) Demonstration
15. FTA Formula Funds (5307/5340/5339/5337/5310)
16. FTA Capital Investment Grant (CIG) Programs
17. FTA Bus and Bus Facilities Grant Program
18. FTA Low or No-Emission (Low-No) Bus Grant Program
19. FTA Transit Oriented Development (TOD) Grants
20. FTA Access and Mobility Partnership Grants
21. FTA Integrated Mobility and Innovation (IMI) Grants
22. FTA Accelerating Innovation Mobility (AIM) Grants
23. FTA Areas of Persistent Poverty Grants
24. FTA Passenger Ferry Grant Program
25. FTA Technical Assistance and Workforce Development Grant Program
26. FRA Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grants
27. FRA Railroad Rehabilitation & Improvement Financing (RRIF)*
28. Federal Volkswagen Settlement Funds
29. USDOT Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grants
30. USDOT Infrastructure For Rebuilding America (INFRA) Grants
31. USDOT Transportation Infrastructure Finance and Innovation Act (TIFIA) Loan*
32. USDOT ITS4US Complete Trip Grants
33. Private Activity Bonds*
State
34. Florida State Appropriations
35. Florida State New Starts Transit
Program
36. Transit Service Demonstration Pilot
Program
37. Public Transit Block Grant Program
38. Transportation Regional Incentive
Program (TRIP)
39. County Incentive Grant Program (CIGP)
40. Strategic Intermodal System (SIS)
41. Commuter Assistance Program
42. Intermodal Access Program
43. Toll Revenue Credits
44. Florida State Infrastructure Bank*
Local Project-Specific
45. Sales Surtax
46. Hillsborough County
Community Investment Tax
47. Ad Valorem Property Tax
48. Local Fuel Tax
49. Rental Car Surcharge
50. Vehicle Registration Fee
51. Transient Hotel Tax
52. Local Ride Hailing Tax/Fee
53. Parking Tax
54. Utility Fee
55. Local Income/Payroll Tax
56. Local Entertainment/Meal Tax
57. Mobility Fee
58. Local Contributions
59. General Obligation Bonds*
60. Revenue Bonds*
61. Short-Term Financing*
62. Tax Increment Financing (TIF)
63. Special Assessment District
64. Payment In Lieu Of Taxes (PILOT)
65. Sponsorships/Naming Rights
66. Land Donations
67. Joint Development/Air Rights
68. Private Contributions
69. Private Financing*/Private Equity*
70. Fare Revenues
71. Advertising and Other Agency
Revenues
* denotes financing mechanisms
Underline denotes short-listed sources
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
LOCAL
FEDERAL
FTA Capital Investment Grants
New IIJA Discretionary Grants
BBB Budget Reconciliation
USDOT RAISE Grants
FTA Bus and Bus Facilities
FTA Low or No-Emission Bus Grants
FTA Passenger Ferry Grant Program
Congressional Directives (“earmarks”)
American Rescue Plan (ARP) Funds in FY 2023
FTA Formula Funds (5307/5340/5339/5337/5310)
FHWA Flex Formula Funds (CMAQ, STP, TA)
STATE
New Starts Transit Program
Transit Service Demonstration Program
Public Transit Block Program
Strategic Intermodal Systems
Toll Revenue Credits
State Operating Grants
State Capital Grants
Sponsorships/ Naming Rights
Land Donations
Joint Development/Air Rights
Private Contributions
Tax Increment Financing District
Special Assessment District
Fare Revenues
Advertising and Other Agency Revenues
PROJECT-
SPECIFIC
General Obligation Bonds*
Sales Surtax Revenue Bonds*
Short-Term Financing*
USDOT TIFIA Loans*
Private Activity Bonds*
State Infrastructure Bank*
Tax Increment Financing*
Private Financing*
Private Equity*
Ad Valorem Property Tax Increase
Mobility Fee Increase
Local Contributions Increase
FHWA ATCMTD Grants
FTA TOD Grants
FTA Access and Mobility Partnership Grants
FTA Integrated Mobility and Innovation Grants
FTA Accelerating Innovation Mobility Grants
FTA Areas of Persistent Poverty Grants
Transportation Regional Incentive Program
County Incentive Grant Program
Commuter Assistance Program
Intermodal Access Program
NEW FUNDING OPPORTUNITIES
Primary Funding Opportunities Secondary Funding Opportunities
EXISTING HART FUNDING SOURCES
HART strategically manages
existing funding sources
Voters approve
Sales Surtax
HART proactively leverages sales surtax revenue by pursuing
new funding opportunities and financing tools
FINANCING TOOLS
Requires Sales Surtax
24
Sales Surtax Increase
Ad Valorem Property Tax
Mobility Fee
Local Contributions
Recommended Financial Strategies
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
25
Leveraging Federal and State Funding
Sources
Scenario 1
Existing Conditions
Scenario 3/3a
45% of 1% Sales Surtax Increase
ARP Funds (COVID-19 relief)
FTA Formula Funds
FHWA “Flex” Funds Limited by available
matching funds
FTA Capital Investment Grants
Other Discretionary Grants
RAISE, Bus and Bus Facilities, Low or No-Emission, Ferry, Mega, Congestion
Relief, Carbon Reduction Formula, SMART, Congressional Directives, and
more
Limited by available
matching funds
Total Potential Federal Funds
(FY23 –FY52)
$1.1B $1.3B –$1.9B
+ $0.2B –$0.8B
Existing State Operating and Capital Grants
State New Starts Transit Program
Other State Funding Programs
Transit Service Demonstration, Public Transit Block, Strategic Intermodal
Systems, Toll Revenue Credits, Transportation Regional Incentive, County
Incentive Grant, and more
Limited by available
matching funds
Total Potential State Funds
(FY23 –FY52)
$0.4B $0.5B –$0.8B
+ $0.1B –$0.4B
Total Potential Federal and State Funds
(FY23 –FY52)
$1.5B $1.8B –$2.7B
+ $0.3B –$1.2B
Notes: Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Findings are based on estimated existing capital and operating costs and growth rates, conceptual planning level input assumptions for new capital and
operating costs, revenue estimates, cost and revenue growth rates, federal award amounts, phasing, and other key cost and revenue drivers. Conservatively does not include potential increases in federal formula funds related to operating new service or other potential
discretionary grant awards.
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
A fiscal cliff is projected in FY 2027 if HART continues existing service without:
•Reducing operating costs and service and/or
•Adding a new revenue stream
Fiscal cliff is primarily due to operating costs exceeding operating revenue
•Higher operating costs will be offset in near-term by COVID-19 relief funds and IIJA increases
Without supplementary source(s) of funding, HART will not be in a financial position to
increase service or undertake new capital projects, including:
•HART’s assumed capital and operating shares for the TECO Streetcar Extension
•Projects that are currently identified as “funded” in the TDP
•All remaining unfunded projects and initiatives
45% of the proposed Sales Surtax would enable HART to fund its existing service, “funded”
TDP projects, TECO Streetcar Extension, and 32% of its unfunded program of projects
26
Key Findings
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
Incorporate HART’s preliminary 5-year capital plan (FY22 budget + 4-years)
Prepare financial model for handover and training
Identify key HART staff for financial modeling training session
Schedule and hold financial modeling training session
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Other Items and Next Steps
DRAFT FOR DISCUSSION PURPOSES ONLY. Reflects recently prevailing conditions and information known to-date, all of which is subject to change. Refer to disclaimer statement.
This document has been prepared by InfraStrategies LLC for the sole benefit of HART. This document is
intended to be used solely for the assessment of feasibility and testing of a range of financial
assumptions. It is a highly confidential draft that should be used for discussion purposes only.
InfraStrategies LLC does not assume any liability associated with any other party's use of this document.
Any decision made by any parties predicated on this document will be at their own risk.
This document should not be construed as providing either financial "advice" or "recommendations."
InfraStrategies LLC is not registered with the SEC and MSRB as a municipal advisor and cannot provide
any services to HART that would require registration as a municipal advisor. InfraStrategies LLC cannot
make recommendations relating to municipal financial products or the issuance of municipal securities
and does not owe a fiduciary duty to Metrolink under Section 15B of the Securities Exchange Act of 1934.
This document contains certain projections concerning anticipated future events that reflect various
assumptions developed by HART, its partners, other third parties, and publicly available information. We
have not independently verified the information provided. This document reflects recently prevailing
conditions and information to-date, all which is subject to change. Actual results and events will likely
vary from the projections contained within this document and such changes may be material.
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Disclosure
