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DOur � nanc�a <br /> FUTURE <br /> Costs of the Growth Network <br /> The financial implications of the Growth Network were developed through estimates of growth in service <br /> hours and capital investments such as fleet replacement.The Growth Network assumes that Everett <br /> Transit increases the number of revenue hours by up to 25%from the Baseline Scenario. Operational <br /> costs are forecast to increase$64 million by 2040 in non-inflation adjusted dollars including the required <br /> fleet replacement capital costs. Most of the growth in costs are from an increase in fixed route service. <br /> Additionally,the increase in fleet required to support the Growth Network would require construction of an <br /> expanded Operations Base.This base is estimated to cost approximately$30 million when completed.As <br /> shown in the chart below, even without implementing the Growth Network, Everett Transit is facing a gap in <br /> revenues as compared to costs as early as 2022.Additionally,there is uncertainty in sales tax revenue,the <br /> level of wage and benefit growth, and grant revenue opportunities. In order to address the uncertainty and <br /> to ensure financial sustainability as a means to expand into the Growth Network Plan, Everett Transit will <br /> need to address the near-term gap by identifying additional revenue streams or restructuring operations. <br /> Options to achieve sustainability are described in the next section. <br /> (million) — --- — —$90 <br /> $80 <br /> $70 <br /> $60 <br /> $40 <br /> $30 y v <br /> $20 <br /> $10 <br /> $0 <br /> m o o < m C a m o <br /> Growth Total Op Costs > Baseline Op Cost — Baseline Revenues 'Costs include operations costs and planned <br /> capital funds needed for vehicle purchases <br /> 117 <br /> 34 Connecting Your Future <br />