Project Profile
Public Transportation Financial Review
Galveston, Texas
Client: Island Transit
Project Summary: The City of Galveston was experiencing escalating costs of operating its transit system. In addition, the signs were already evident of a reduction in federal operating subsidy and in local private sector funding commitments for subsidizing the Rail Trolley. The City required a comprehensive review of transit costs, revenue sources, grants, and development of a sound program for providing transit services for the next five years.
Project Highlights
Finance Strategies
TGC first prepared a system profile to review the operating and financial performance of the City’s public transportation system (including Island Transit, Island Trolley, and HandiVan Special Services). Each system was operated by a different contract operator. A comparative analysis reviewed financial performance of transit systems in peer cities. TGC prepared a financial forecast to estimate revenues, expenses, deficits, and required levels of support from local, state, and federal entities. TGC performed a grant analysis to recommend a strategy to more effectively utilize poorly administered active grants, to meet current capital needs, and to develop a fund balance as protection against imminent reductions in state and federal subsidies.
TGC recommended an overall financial strategy that would maintain and improve the financial efficiency of public transit in Galveston. TGC recommended consolidation of contract operators, grant reprogramming, and fare adjustments that have resulted in expanded services and reduced expenditures.