Financial Analysis Working Paper 1 Existing Funding Sources Draft: April 2007 Prepared for: By:
TABLE OF CONTENTS INTRODUCTION... 1 REVIEW OF FRED AND VRE EXISTING FUNDING SOURCES... 1 Federal Funding... 1 State Funding... 3 Local Government and Other Fund Sources... 4 FRED... 6 VRE... 9 SUMMARY AND NEXT STEPS...12 TABLE OF FIGURES Figure 1 Funding Source Summary...2 Figure 2 Stafford County Motor Fuel Tax Revenues: Funding Allocation for Transportation Improvements...5 Figure 3 FRED: Operating and Capital Revenues...7 Figure 4 FRED: Operating and Revenue Summary...8 Figure 5 FRED: Local Contributions (Operations Only)...9 Figure 6 VRE: Operating and Capital Revenues...10 Figure 7 VRE: Operating and Non-Operating Revenue Summary...11 Figure 8 VRE: Local Contributions (Operations and Capital)...12 Nelson\Nygaard Consulting Associates Page i
Financial Analysis, Working Paper 1 Existing Funding Sources INTRODUCTION This working paper presents the funding context for transit services in the George Washington Region. Its objective is to identify and describe existing funding sources used by the two transit services in the area - Fredericksburg Regional Transit (FRED) and the Virginia Railway Express (VRE). Funds for bus and rail service are provided through a variety of sources, with a complex allocation of federal, state and local public and non-governmental funds. Local subsidies include financial contributions from jurisdictions that benefit from FRED and VRE services. State funds include a combination of formula and capital assistance funds, federal sources consist of formula and discretionary funds, and other local funds include primarily non-governmental revenues. The following section describes all of the funding sources in use by FRED and VRE based on FY 2007 budgets. This is followed by a review of the specific fund amounts for each service and how they are allocated between operations and capital purchases. The working paper concludes by identifying the next steps in the financial analysis for the George Washington Region Transit Policy Plan. REVIEW OF FRED AND VRE EXISTING FUNDING SOURCES A summary of the funding sources currently used by FRED and VRE is presented in Figure 1. For each federal, state, local and other fund source, the figure lists the primary objective, states whether funds can be used for capital and/or operating purposes and identifies other special features. A more detailed discussion of these funding sources follows this figure. Federal Funding FRED and VRE receive substantial funding from the Federal Transit Administration (FTA) to support operations and for capital investments. Nelson\Nygaard Consulting Associates Page 1
Figure 1 Funding Source Summary Funding Source Funding Purpose Use of Funds Comments Federal Funds Section 5307 Urbanized Area Formula Program Section 5309 Capital Program Bus and Bus Facilities Section 5309 Capital Program Fixed Guideway Modernization Section 5311 Nonurbanized Area Formula Program Congestion Mitigation and Air Quality Improvement Program (CMAQ) Available for transit capital projects in urbanized areas over 200,000 in population, and additionally for transit-related operating costs in small urbanized areas between 50,000-200,000 in population. Funds capital and planning projects entailing acquisition, construction, improvement, and maintenance of facilities and equipment for use in transit (including vehicle purchase). Provides federal assistance to buy, lease, replace, or rehabilitate buses and related equipment and to construct bus-related facilities. Funds capital projects to modernize or improve fixed guideway systems including purchase and rehabilitation of rolling stock, track, line equipment, and structures, as well as operational support systems, passenger stations and terminals, maintenance facilities and equipment, and system extensions. Available through states to local governmental authorities, non-profit organizations, public transportation services, or intercity bus operator for capital projects, operating assistance and the acquisition of public transportation services in nonurbanized areas (population under 50,000). Available for transit capital projects and operating expenses for new services that reduce transportation related emissions in nonattainment and maintenance areas Transit operations and capital projects Capital projects only Capital project only; preventive maintenance activities also eligible Transit operations and capital projects Transit operations and capital projects Funds for small urbanized areas determined by formula and apportioned to the Governor and allocated by VDRPT. The City of Fredericksburg and adjacent portions of Stafford and Spotsylvania counties constitute the Fredericksburg urbanized area. Funds for large urban areas (such as the Washington, D.C. region) are apportioned directly to urbanized areas. Congressional Earmarks Distributed to regions based on an urbanized area formula. Funds apportioned in proportion to each state s nonurbanized population. Administered by VDRPT. Caroline and King George counties apply for and receive 5311 funds through FRED. CMAQ funding currently supports services in Stafford County through FY 07. Nelson\Nygaard Consulting Associates Page 2
Funding Source Funding Purpose Use of Funds Comments Surface Transportation Program (STP) State Funds State Formula Assistance (also known as State Operating Assistance) State Capital Assistance State Demonstration Project Assistance Local and Other Funds Local Subsidies--FRED Provides flexible funding that may be used by States and localities for projects on any Federal-aid highway, bridge projects on any public road, transit capital projects, and intracity and intercity bus terminals and facilities. Assistance provided to existing providers of public transportation service, funded from the state Mass Transit Trust Fund (MTTF). Eligible expenses include public transportation administrative costs and costs for fuel, tires, and maintenance parts and supplies. Not available for operating expenses associated with non-administrative labor. These funds help agencies meet local match requirements to access federal grants. Supports costs borne by eligible recipients for public transportation capital projects, including vehicle purchase, lease and rehabilitation; construction of improvement of facilities; debt service; and safety/security equipment. Assists communities in preserving and revitalizing public or private transportation service by funding projects for one year of operation Annual contributions from City of Fredericksburg, Stafford County, Spotsylvania County, King George County, and Caroline County to support FRED operations. Capital costs of transit projects eligible under Chapter 53 of 49 U.S.C. Public transportation administrative costs, capital projects, fuel, tires, and maintenance parts and supplies Capital projects Varies; emphasis on projects that develop or test technologies for improving transit efficiency and productivity, expand markets, and improve services for people with disabilities. Transit operations The State of Virginia flexes STP funds to cover the annual cost of VRE track leases from CSX Transportation, Norfolk Southern, and Amtrak (based on trackage rights agreements). Awarded on the basis of the total annual amount of state funds available expressed as a percentage of the total annual amount of transit operating expenses. (Transit operating expenses totaled $490 million in the last completed fiscal year (FY 05); MTTF funds for formula assistance in FY 07 total $97 million. Therefore, each transit system will receive state aid in the amount of 19.7% total FY 05 operating expenses.) Funds are awarded to eligible projects with state share calculated by dividing available state funds for capital projects by the amount needed to support the non-federal share of all transit capital projects for the year. The state share for FY 07 is 22%. Funds up to 95% of eligible expenses. Funding new FRED services in FY 07. Jurisdictions are charged based upon the number of revenue hours FRED operates on their behalf, subject to an annual letter of agreement or budget resolution. Nelson\Nygaard Consulting Associates Page 3
Funding Source Funding Purpose Use of Funds Comments Local Subsidies--VRE Potomac and Rappahannock Transportation Commission (PRTC) Motor Fuels Tax University of Mary Washington Fee-for- Service Annual subsidies from Alexandria, Arlington, Fairfax County, Fredericksburg, Manassas, Manassas Park, Prince William County, and Stafford County Revenues from 2% PRTC gas tax levy that may be allocated to support transit operating and capital expenses. Funding for operation of FRED Express routes (FRED Ex) connecting University campus and downtown locations Mary Washington Hospital grant General support for FRED operations ($50,000 annually) Greyhound Commissions Local Businesses Funds received by FRED as commissions from sales of Greyhound tickets. Funding supporting FRED contributed by small institutions and local businesses Capital projects and transit operations Capital projects and transit operations Transit operations; additional grant supporting general operating and capital expenses Transit operations Transit operations Transit operations Local subsidies include funds generated by the PRTC Motor Fuels Tax in jurisdictions with membership (see below). Membership in PRTC allows for the collection of a 2% Motor Fuels Tax to support transportation improvements in the region. Members include Prince William and Stafford Counties and the cities of Manassas, Manassas Park and Fredericksburg. Funding available to FRED from this source is determined annually by the City Council; in recent years funds have been used as local match for capital projects. VRE receives annual funding from PRTC Motor Fuels Tax revenues collected in several jurisdictions. Based on number of revenue hours operated by FRED on behalf of UMW (late nights on Thursday and Friday and all day Saturday and Sunday during the academic year). Additional grant of $25,000 annually to support general operating and capital expenses. FRED applies for these funds annually. The grant allows the hospital s employees to ride FRED free of charge. Funds vary with ticket sales. Small amounts of funding; inconsistent from year-to-year. Nelson\Nygaard Consulting Associates Page 4
Section 5307 Urban Area Funds The FTA 5307 Urbanized Area Formula Program is an important source of transit funding for urbanized areas and the cities within them. The federal formula funds are apportioned by the FTA each year to large urbanized areas (a large urbanized area is one that has more than 200,000 residents, such as Washington, D.C.) and to the state for all small urbanized areas in that state (including the Fredericksburg urbanized area). The Metropolitan Planning Organization in the Fredericksburg area is FAMPO. In general, large urbanized area formula funds can be used for transit capital purposes only. Small urbanized area formula funds can be used for both transit capital and transit operations. As a result of the 2000 Census, the Washington, D.C. urbanized area boundary shifted outward so that it now encompasses the northernmost portion of Stafford County, meaning that the northern population of Stafford County began earning Section 5307 funds for the D.C. region. Because of this designation and other understandings that have evolved over the years for divvying up Section 5307 funds, the question of how to equitably share these funds has become an important funding issue. The Washington D.C. urbanized area MPO (TPB), and FAMPO have been reviewing this issue for over four years. As of this writing it is not clear how these funds will be shared between the parties. Currently, both FRED and VRE receive FTA Section 5307 funds which are used to support operations and pay for capital purchases. FTA Section 5309 These funds are for Bus and Rail New Starts and are earmarked by Congress. FTA Section 5309 Bus can be used for capital projects such as replacement or expansion of buses or bus facilities. FTA Section 5309 New Starts are used for building new rail, bus rapid transit, and ferry systems, or extensions to existing systems. FTA Section 5309 Fixed Guideway (FG) funds are also distributed to regions on an urbanized area formula. Unlike 5307 funds, these funds are generated in large urbanized areas only, and can be used for capital purposes on fixed guideway transit services such as rail, ferry, cable cars, and buses operating in exclusive rights of way. These funds cover 80% of eligible capital expenses with a required 20% state or local match. Fred does not receive FTA Section 5309 funds. VRE uses these funds for capital projects. Nelson\Nygaard Consulting Associates Page 1
FTA Section 5311 The FTA formula grant program supporting transit in rural areas and small urban areas (less than 50,000 in population) is the Section 5311 program. This program nearly doubled in funding with the passage of SAFETEA-LU. FTA 5311 funds are administered through the VDRPT. These funds are used for transit capital and operating purposes in non-urbanized areas. Section 5311 funds provide up to 50 percent of operating costs to support transit operations. Caroline and George Counties receive FTA 5311 funds. VRE does not receive these funds. Congestion Mitigation Air Quality Funds (CMAQ) With the passage of SAFETEA-LU the CMAQ program continues as a means to fund projects that contribute to the attainment of a national ambient air quality standard. CMAQ funds can only be expended in areas identified by the U.S. Environmental Protection Agency (USEPA) as in non-attainment of a national air quality standard. CMAQ funding cannot be used for projects that result in new capacity for single occupant vehicles. Programs that CMAQ can fund include programs to improve public transit, High Occupancy Vehicle (HOV) facilities, Employee Trip Reduction (ETR) programs, traffic flow improvements that reduce emissions, bicycle/pedestrian facilities, park-and-ride facilities, and programs to restrict vehicle use in areas of emission concentration. CMAQ funds can be used for capital purchases covering up to 88.5% of the cost. CMAQ Demonstration funds are designed to jump start new services for a period of three years to support operations. Strafford County is benefiting from CMAQ Demonstration funds supporting services in its northern area. Surface Transportation Program Funds The Surface Transportation Program provides flexible funding that may be used by States and localities for projects on any Federal-aid highway, including the NHS, bridge projects on any public road, transit capital projects, and intracity and intercity bus terminals and facilities. The Virginia Department of Transportation administers these funds (known as the SSTP), which can be used for eligible transit capital projects. They are allocated to VRE to cover the annual cost of VRE track leases from CSX Transportation, Norfolk Southern, and Amtrak. 1 The State appears to have an ongoing commitment to cover the lease cost for VRE. There is no formula or methodology for determining the amount; it is 1 March 27, 2007 Telecommunication with Christine Hoeffner, Senior Planner,VRE Nelson\Nygaard Consulting Associates Page 2
simply based on the cost of the track leases. The amount is not expected to fluctuate greatly from year to year. State Funding Virginia Mass Transit Trust Fund (MTTF) is funded from an allocation from the state s Transportation Trust Fund. Under Virginia Code, $800,000 is taken off the top of the MTTF for paratransit capital projects, 73.5% is allocated for state operating assistance (also known as formula assistance grants), 25% is awarded for capital assistance, and 1.5% is awarded through special projects grants. The three State Assistance programs are described below. State Formula Assistance These funds help transit agencies cover both operations (administration and select capital purchases) and the local required share for federal capital grants. Recipients of Section 5307 funds generally receive a portion of the Virginia transit trust fund equivalent to their share of the total state transit operating cost. For recipients of Section 5311 funds, the State generally contributes 18 percent of their total operating costs, although this percentage can fluctuate from year to year. State Capital Assistance VDRPT distributes State Capital Assistance from Virginia s transit trust fund in support of a range of activities including vehicle purchase, lease and rehabilitation, construction of improvement of facilities, debt service for major capital projects, and safety and security equipment. The actual apportionments have varied based on available state resources. These funds are awarded to transit providers in the state. Funds are distributed among the approved capital projects on the basis of uniform state participation ratio in the non-federal costs of all approved projects. In recent years, the State has funded approximately 23 percent of capital improvements. In FY 2007, the State share will be 22 percent. State Demonstration Project Assistance This program is flexible and broad enough to support a variety of projects that achieve a stated purpose. The emphasis areas of the program are to develop and test new or existing technologies or procedures which: Nelson\Nygaard Consulting Associates Page 3
Improve the efficiency of public transportation providers in all functional areas Offer creative approaches to identify and penetrate public transportation markets Increase private sector involvement in all areas of public transportation Raise the utilization and productivity of existing public transportation services Improve public transportation services to the disabled These funds are intended to be used for one year. Eligible recipients are local governments, transportation districts and public service corporations. Local Government and Other Fund Sources Local Contributions Both FRED and VRE have established partnerships with jurisdictions to help fund their services. FRED s partners consist of the five jurisdictions constituting the RADCO region: City of Fredericksburg, Stafford County, Spotsylvania County, King George County, and Caroline County. Each jurisdiction financially contributes to FRED based on a revenue hours formula. 2 The percentage share and the actual contributions for FY 2007 for each jurisdiction are discussed in the section below detailing FRED s revenues. VRE receives financial contributions for both operations and capital projects from its eight member jurisdictions. The percentage share and the actual contributions for FY 2007 are discussed in the VRE section below. These financial contributions include PRTC Motor Fuels Tax revenues collected in PRTC member jurisdictions (Prince William County, Stafford, Manassas, Manassas Park, and Fredericksburg) and provided annually in support of VRE operating and capital costs. (PRTC Motor Fuels Tax revenues for VRE in FY 2007 total over $4.6 million.) Potomac and Rappahannock Transportation Commission (PRTC) Motor Fuels Tax The Potomac and Rappahannock Transportation Commission (PRTC) is a multi-jurisdictional agency representing Prince William and Stafford Counties and the cities of Manassas, Manassas Park and Fredericksburg. Membership in the PRTC results in the automatic collection of a 2% sales tax on retail sale of motor vehicle fuel within the member jurisdiction. Expenditure of these revenues is controlled by 2 Email communication on March 27, 2007 with Kathy Beck, Transit Manager, FRED Nelson\Nygaard Consulting Associates Page 4
each jurisdiction. Revenues from the 2% Motor Fuels Tax are used for a range of transportation improvements in the region. A portion of revenues collected in each PRTC member jurisdiction are provided annually to FRED and VRE. The Stafford County planned expenditures for its motor fuel revenues are shown in Figure 2. About 30% is devoted to FRED and VRE. The allocation of Motor Fuels Tax revenues is determined annually by the Fredericksburg City Council. Motor fuels tax revenues are specifically reserved first for the VRE and PRTC, with any remaining surplus to be used for general transportation projects. The City has been using these revenues for FRED, a new transit station, street maintenance, parking garage debt service and other transportation improvements. 3 Figure 2 Stafford County Motor Fuel Tax Revenues: Funding Allocation for Transportation Improvements Program or Service FY 2007 Budget Percentage Share FRED (1) $213,243 5.7% VRE $917,147 24.5% Social Service Transportation $40,000 1.1% Street Signs $50,000 1.3% Bike Trails Program $333,000 8.9% Airport Subsidy $113,000 3.0% PRTC Administrative Fee $63,561 1.7% Personnel Costs $161,721 4.3% Subtotal $1,891,672 50.6% Local Roads Project $1,846,717 49.4% Estimated Total $3,738,389 100.0% (1) The FRED TDP lists $160,783 as Stafford County operating share. (2) Expected allocation from PRTC for FY 2007 is $3,738,389. Source: Transportation Fund section Stafford County's approved FY2007 budget. University of Mary Washington Fee-for-Service University of Mary Washington (UMW) contributes a fee for service for FRED express routes (FRED Ex) based on the number of service hours operating late night on Thursday, Friday and Saturdays during the academic year. In addition to this calculated payment, UMW contributes $25,000 annually to support operations and help cover capital costs. 4 3 Email communication on April 6, 2007 with Mark Whitley, City of Fredericksburg 4 Email communication on March 27, 2007 with Kathy Beck, Transit Manager, FRED Nelson\Nygaard Consulting Associates Page 5
Mary Washington Hospital The hospital makes an annual contribution of $50,000 toward FRED service. This amount is not tied to a specific formula. It entitles hospital employees to ride FRED service free of charge. Greyhound Commissions FRED receives commissions from Greyhound for ticket sales. This amount varies and is typically less than $100,000 per year. FRED Operating and capital revenues to support FRED are presented in Figures 3, 4 and 5. Figure 3 lists each operating revenue source by category. It shows both the dollar amount and percentage share of the adopted FY 2007 budget totaling just over $3 million. FRED is a recipient of both FTA Section 5307 and 5311 funds. CMAQ funding currently supports services in Stafford County through the end of FY 07. FRED has requested 5307 funds when CMAQ funding terminates. The specific state and local funds are detailed in Figure 3. The bottom section of the figure shows that FRED uses FTA Section 5307 and State Capital Assistance funds for capital purchases. Figure 4 summarizes the major fund categories and visually displays their percentage share of the operating budget. The largest share is from the federal government accounting for 38% of the budget. State funds represent 20%, and nine percent of FRED s operating revenues come from non-governmental sources. The local jurisdictions contribute just under one-third of the operating budget. Less than two percent of operating costs are covered by passenger fares. Nelson\Nygaard Consulting Associates Page 6
Figure 3 FRED: Operating and Capital Revenues FY 2007 Adopted Budget Dollars ($) Percentage % Operating Revenue Federal Section 5307: Fredericksburg urbanized area $ 506,000 16.8% Section 5311: Caroline $ 78,855 2.6% Section 5311: King Geoge $ 116,370 3.9% CMAQ: Stafford $ 452,640 15.0% State Formula Assistance: Fredericksburg urbanized area $ 250,000 8.3% Formula Assistance: Caroline $ 22,868 0.8% Formula Assistance: King George $ 9,077 0.3% Demonstration Grant: Fredericksburg UZA urbanized area $ 304,000 10.1% Local Government Local Contribution: Fredericksburg $ 176,158 5.8% Public Partner: Stafford $ 160,783 5.3% Public Partner: Spotsylvania $ 455,915 15.1% Public Partner: Caroline $ 55,987 1.9% Public Partner: King George $ 107,293 3.6% Non-Governmental Local University of Mary Washington (UMW) Fee-for-Service $ 102,275 3.4% Greyhound Commission $ 85,000 2.8% Mary Washington Hospital $ 50,000 1.7% University of Mary Washington (grant) $ 25,000 0.8% Local Businesses $ 9,000 0.3% Fare Recovery Passenger Fares $ 45,900 1.5% Total Operating Revenues $ 3,013,121 100.0% Capital Revenue Section 5309 $ 614,400 80% State Capital Assistance $ 153,600 20% Total Capital Budget $ 768,000 100% Source: FRED TDP, July 18, 2006 and Nelson\Nygaard Nelson\Nygaard Consulting Associates Page 7
Figure 4 FRED: Operating and Revenue Summary FY 2007 Adopted Budget Dollars ($) Percentage % Operating Revenue Federal $ 1,153,865 38.3% State $ 585,945 19.4% Local Government $ 956,136 31.7% Non-Governmental Local $ 271,275 9.0% Passenger Fares $ 45,900 1.5% Total Operating Budget $ 3,013,121 100% Non- Governmental Local 9% Passenger Fares 2% Federal 38% Local Government 32% State 19% Nelson\Nygaard Consulting Associates Page 8
Figure 5 lists the five jurisdictions and their financial contributions and percentage share of FRED s operating costs. Their pro rata share is based on the number of revenue service hours operated within each jurisdiction. Figure 5 FRED: Local Contributions (Operations Only) Local Jurisdiction FY 2007 Financial Contribution Percentage Share Fredericksburg $176,158 18.4% Stafford $160,783 16.8% Spotsylvania $455,915 47.7% Caroline $55,987 5.9% King George $107,293 11.2% Total $956,136 100.0% VRE Figure 6 presents the adopted FY 2007 operating and capital budget revenues for VRE. It lists the dollar amounts and percentage share of operating and non-operating revenues totaling nearly $43 million and $13 million respectively. Federal, state and local revenues which support the capital budget are shown in the bottom part of the figure. A summary of the operating and non-operating revenues and a visual representation are shown in Figure 7. Passenger fares cover 55% of the operating costs with the balance coming largely from federal and state sources. Only two percent of operating revenues come from local contributions whereas other local funds account for 55% of the non-operating revenues. The eight jurisdictions that contribute to VRE are listed in Figure 8 showing dollar and percentage shares. The pro rata shares range from a low of approximately two percent in Alexandria and Arlington to a high of nearly 50% for Fairfax County. Nelson\Nygaard Consulting Associates Page 9
Figure 6 VRE: Operating and Capital Revenues FY 2007 Approved Budget Dollars ($) Percentage % Operating Revenue Federal Section 5307 $2,206,400 5.1% Section 5309 $ 260,000 0.6% State STP Transfer (Access lease) $ 6,780,000 15.8% State State Formula Assistance $ 7,400,000 17.3% State Capital Assistance $ 184,980 0.4% Local Government Local Subsidies $ 883,238 2.1% Other Equip Rent and Misc $ 151,500 0.4% Interest $ 210,000 0.5% Fare Revenue Passenger Fares $ 24,819,702 57.9% Total Operating Budget $ 42,895,820 100.0% Non-Operating Revenue (1) Federal Section 5307 $ 3,435,338 27% State State Capital Assistance $ 2,256,824 18% Local Government Local Subsidies $ 6,889,263 55% Total Non-Operating Budget (1) $ 12,581,425 100% Capital Revenue Federal Section 5307 $ 3,153,600 43% Section 5309 $ 2,733,600 37% State State Capital Assistance $ 441,540 6% Local Government Local Subsidies $ 1,030,260 14% Total Capital Budget $ 7,359,000 100% (1) Non-operating expenses and revenues include operating and insurance reserves, debt service and loans. Source: FY 07 VRE - Source and use Budget Worksheet and Nelson\Nygaard Nelson\Nygaard Consulting Associates Page 10
Figure 7 VRE: Operating and Non-Operating Revenue Summary FY 2007 Approved Budget Dollars ($) Percentage % Operating Revenue Federal $ 9,246,400 21.6% State $ 7,584,980 17.7% Local $ 883,238 2.1% Other $ 361,500 0.8% Passenger Fares $ 24,819,702 57.9% Total Operating Budget $ 42,895,820 100% Non-Operating Revenue (1) Federal $ 3,435,338 27% State $ 2,256,824 18% Local $ 6,889,263 55% Total Non-Operating Budget $ 12,581,425 100% (1) Non-operating expenses and revenues include operating and insurance reserves, debt service and loans. Source: FY 07 VRE - Source and use Budget Worksheet and Nelson\Nygaard Federal 22% Federal 27% Passenger Fares 57% State 18% Local Other 2% 1% Local 55% State 18% Operating Revenue Non- Operating Revenue Nelson\Nygaard Consulting Associates Page 11
Figure 8 VRE: Local Contributions (Operations and Capital) Local Jurisdiction FY 2007 Financial Contribution Percentage Share Alexandria $ 107,752 1.2% Arlington $ 157,649 1.8% Fairfax County $ 3,935,735 44.7% Fredericksburg $ 111,115 1.3% Manassas $ 428,436 4.9% Manassas Park $ 183,686 2.1% Prince William County $ 2,961,241 33.6% Stafford County $ 917,147 10.4% Total $ 8,802,761 100% SUMMARY AND NEXT STEPS A combination of federal, state and local funds are relied upon to support FRED and VRE services. Some of these funds are formula derived, relatively stable and can be counted on from year to year. Other funds, such as gasoline tax and federal discretionary grants are volatile and can vary tremendously. The next step in the financial evaluation is to estimate future funding levels for existing sources and to identify potential funding sources that could be available for new and enhanced transit services in the George Washington region. This analysis will be conducted in the context of the organizational alternatives identified for the transit improvements and maximizing service efficiency and effectiveness. Nelson\Nygaard Consulting Associates Page 12