Project Profile

Sun Metro Financial Capacity Analysis

El Paso, Texas

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Project Summary: In 1995, Sun Metro began experiencing reduced revenues due to a reduction in the number of daily visitors from Juarez, Mexico. The devaluation of the Mexican Peso prompted residents of Juarez to shop locally instead of venturing into El Paso for basic goods and services. In addition to lower farebox revenues, Sun Metro also experienced a 7 percent decline in dedicated sales tax revenues. These factors, in addition to concerns over reduced Federal Transit Administration funding, prompted the hiring of TGC to perform a Financial Capacity Analysis.

Project Highlights

The Goodman Corporation was tasked to identify the following:

* Operating and maintenance funding requirements over five years;
* Capital development needs of the system;
* Cost-efficiencies of implementing a transit terminal program; and
* Innovative approaches to satisfy local funding matching requirements for capital development projects.

Due to the complexity and enormity of the task at hand, the resulting Financial Capacity Analysis was published in two phases.

Phase I

TGC initially performed an analysis of historical financial and performance data. From this analysis, TGC developed a Capital Development Program in addition to a system-wide transit transfer terminal analysis. Based on a number of scenarios, forecasts of expenditures and revenues were developed and innovative funding opportunities were identified.

Phase II

Phase II of the study included Operations and Maintenance Reports, an evaluation of Sun Metro Bus Operator Workforce Management, and recommendations for marketing and customer service.