<?xml version="1.0" encoding="UTF-8"?><rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
		>
<channel>
	<title>Comments on: Metro Financial Policies</title>
	<atom:link href="http://seattletransitblog.com/2009/07/08/metro-financial-policies/feed/" rel="self" type="application/rss+xml" />
	<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/</link>
	<description>Transit in the Greater Seattle Area</description>
	<lastBuildDate>Mon, 13 Feb 2012 06:28:16 +0000</lastBuildDate>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.2.1</generator>
	<item>
		<title>By: Josh</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-54170</link>
		<dc:creator>Josh</dc:creator>
		<pubDate>Fri, 10 Jul 2009 17:44:18 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-54170</guid>
		<description>One important point on this, to qualify for TBD funding, a facility has to be in someone&#039;s transportation plan.  

If you&#039;ve ever read through the transportation improvement plans of any city or county, you&#039;ve probably noticed a huge laundry list of projects that nobody really expects to happen any time soon.  But they have to be in the plan, or else when someone comes to town offering stimulus dollars or a new grant program or some other new funding source, you have to get the project into the plan before you can even apply for the money.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
One important point on this, to qualify for TBD funding, a facility has to be in someone&#8217;s transportation plan.  </p>
<p>If you&#8217;ve ever read through the transportation improvement plans of any city or county, you&#8217;ve probably noticed a huge laundry list of projects that nobody really expects to happen any time soon.  But they have to be in the plan, or else when someone comes to town offering stimulus dollars or a new grant program or some other new funding source, you have to get the project into the plan before you can even apply for the money.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Josh</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-54167</link>
		<dc:creator>Josh</dc:creator>
		<pubDate>Fri, 10 Jul 2009 17:38:34 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-54167</guid>
		<description>On what a TBD can fund, excerpts from the AWC&#039;s TBD FAQ at http://www.awcnet.org/documents/TBDFactSheet0907.pdf


&lt;b&gt;What transportation improvements
can be funded by a TBD?&lt;/b&gt;
A TBD can fund any transportation improvement contained
in any existing state or regional transportation plan that is
necessitated by existing or reasonably foreseeable congestion
levels. This can include maintenance and improvements to
city streets, county roads, state highways, investments in high
capacity transportation, public transportation, transportation
demand management and other transportation projects
identified in a regional transportation planning organization
plan or state plan.

&lt;b&gt;Can a TBD fund maintenance and
preservation activities?&lt;/b&gt;

Yes. A TBD may fund the operation, maintenance, and
preservation of the programs and facilities noted above.
Additionally, maintenance and preservation activities are
noted in many state and regional transportation plans. For
example, preservation of existing transportation facilities
is the number one priority within the Washington State
Transportation Plan. Eliminating the backlog of asphalt
pavement projects and maintaining chip seal paving, along
with many other maintenance and preservation activities, are
specifically noted as priorities in that Plan.

However, keep in mind that any transportation improvement
also needs to be “necessitated by existing or reasonably
foreseeable congestion levels”. Consequently, not
every street, road, transit program, etc. will qualify as a
transportation improvement.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
On what a TBD can fund, excerpts from the AWC&#8217;s TBD FAQ at <a href="http://www.awcnet.org/documents/TBDFactSheet0907.pdf" rel="nofollow">http://www.awcnet.org/documents/TBDFactSheet0907.pdf</a></p>
<p><b>What transportation improvements<br />
can be funded by a TBD?</b><br />
A TBD can fund any transportation improvement contained<br />
in any existing state or regional transportation plan that is<br />
necessitated by existing or reasonably foreseeable congestion<br />
levels. This can include maintenance and improvements to<br />
city streets, county roads, state highways, investments in high<br />
capacity transportation, public transportation, transportation<br />
demand management and other transportation projects<br />
identified in a regional transportation planning organization<br />
plan or state plan.</p>
<p><b>Can a TBD fund maintenance and<br />
preservation activities?</b></p>
<p>Yes. A TBD may fund the operation, maintenance, and<br />
preservation of the programs and facilities noted above.<br />
Additionally, maintenance and preservation activities are<br />
noted in many state and regional transportation plans. For<br />
example, preservation of existing transportation facilities<br />
is the number one priority within the Washington State<br />
Transportation Plan. Eliminating the backlog of asphalt<br />
pavement projects and maintaining chip seal paving, along<br />
with many other maintenance and preservation activities, are<br />
specifically noted as priorities in that Plan.</p>
<p>However, keep in mind that any transportation improvement<br />
also needs to be “necessitated by existing or reasonably<br />
foreseeable congestion levels”. Consequently, not<br />
every street, road, transit program, etc. will qualify as a<br />
transportation improvement.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Mike Skehan</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-54059</link>
		<dc:creator>Mike Skehan</dc:creator>
		<pubDate>Fri, 10 Jul 2009 00:31:55 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-54059</guid>
		<description>That&#039;s sort of what I had in mind.  Most routes would be a flat fare all day (trolleys, 255, 150, 101, etc).  Routes that are primarily long distance, with few stops, or premium service like BRT, would command a premium fare.
Those routes would end in an X (158X, 2X, 306X, etc), so that riders would know it&#039;s a premium fare bus, and if time is not a factor, and a milk run is on the way, skip the express and take the local.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
That&#8217;s sort of what I had in mind.  Most routes would be a flat fare all day (trolleys, 255, 150, 101, etc).  Routes that are primarily long distance, with few stops, or premium service like BRT, would command a premium fare.<br />
Those routes would end in an X (158X, 2X, 306X, etc), so that riders would know it&#8217;s a premium fare bus, and if time is not a factor, and a milk run is on the way, skip the express and take the local.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Mr Bradford (Brian)</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-54030</link>
		<dc:creator>Mr Bradford (Brian)</dc:creator>
		<pubDate>Thu, 09 Jul 2009 21:14:48 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-54030</guid>
		<description>Interesting to observe is the average growth per year is about 4.5 percent.  Most of this could be attributed to wage increases and benefit costs.  One can wonder why the cost is so much higher than the surrounding agencies.  Much is due to Metro&#039;s long deadheads and heavy bias towards commuter service.

If the single run peak trips were largely eliminated, and part-timers allowed to do 6 hour runs, the cost would drop a significant amount.

Of course, this won&#039;t happen.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
Interesting to observe is the average growth per year is about 4.5 percent.  Most of this could be attributed to wage increases and benefit costs.  One can wonder why the cost is so much higher than the surrounding agencies.  Much is due to Metro&#8217;s long deadheads and heavy bias towards commuter service.</p>
<p>If the single run peak trips were largely eliminated, and part-timers allowed to do 6 hour runs, the cost would drop a significant amount.</p>
<p>Of course, this won&#8217;t happen.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Chris Stefan</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-54019</link>
		<dc:creator>Chris Stefan</dc:creator>
		<pubDate>Thu, 09 Jul 2009 20:00:50 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-54019</guid>
		<description>Mike, my worry about eliminating the RFA is mostly about that First set of choice riders. If the RFA goes away the possible effects either hurt merchants as they choose not to take trips they otherwise would, or traffic is worse because there are more SOV&#039;s downtown.

On the other hand &quot;board in the front leave in the rear&quot; might actually speed up loading and unloading somewhat.

I also agree with your other points about fare zones and peak/off-peak. I&#039;d say creating premium services with anything other than Rapid Ride or BRT adds back confusion that was eliminated by simplifying the fare structure though. The flip side is peak express routes are exactly the place where you can get away with demanding a high fare.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
Mike, my worry about eliminating the RFA is mostly about that First set of choice riders. If the RFA goes away the possible effects either hurt merchants as they choose not to take trips they otherwise would, or traffic is worse because there are more SOV&#8217;s downtown.</p>
<p>On the other hand &#8220;board in the front leave in the rear&#8221; might actually speed up loading and unloading somewhat.</p>
<p>I also agree with your other points about fare zones and peak/off-peak. I&#8217;d say creating premium services with anything other than Rapid Ride or BRT adds back confusion that was eliminated by simplifying the fare structure though. The flip side is peak express routes are exactly the place where you can get away with demanding a high fare.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Mike Skehan</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53990</link>
		<dc:creator>Mike Skehan</dc:creator>
		<pubDate>Thu, 09 Jul 2009 16:07:35 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53990</guid>
		<description>Excellent points, Chris.
How about this idea to help with the budget shortfall.
Eliminate the RFA.  All boardings are through the front door, everywhere, all the time.  This makes fare evasion dificult, if the driver/fare inspector refuses service to cheaters.  Loading will be somewhat slower, but ORCA, and Puget Pass have eliminated a lot of currency transactions.  Alighting is all doors, all the time, which is a real time saver on trips leaving the CBD, and might even be a wash for the slower boarding times.
The system is greatly simplified by having only one rule for payment,(Pay as You Enter) and is consistent with ST tunnel fare policy.
If getting around Seattle or Bellevue for free is such a big deal, let the cities start their own jitneys, and pay for them with local funds.
While on the subject of saving money for Metro, here&#039;s another idea.
Eliminate the zones and peak/off peak fare structure.  It&#039;s another source of confusion for riders.
Instead, have regular bus service that cost X per ride, and premium bus service that cost X plus $1.00, or some other number.  The point is this.
BRT, and long haul, limited stop buses cost more to operate, therefore should charge a premium fare.  Short haul, milk runs should be viewed as the baseline bus service, regionwide, and be charged at a flat, single rate.  This makes revenue increases in the future more palitable, if Metro can justify charging more, for premium services.  
Just ask your cable/salelite guys how this works.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
Excellent points, Chris.<br />
How about this idea to help with the budget shortfall.<br />
Eliminate the RFA.  All boardings are through the front door, everywhere, all the time.  This makes fare evasion dificult, if the driver/fare inspector refuses service to cheaters.  Loading will be somewhat slower, but ORCA, and Puget Pass have eliminated a lot of currency transactions.  Alighting is all doors, all the time, which is a real time saver on trips leaving the CBD, and might even be a wash for the slower boarding times.<br />
The system is greatly simplified by having only one rule for payment,(Pay as You Enter) and is consistent with ST tunnel fare policy.<br />
If getting around Seattle or Bellevue for free is such a big deal, let the cities start their own jitneys, and pay for them with local funds.<br />
While on the subject of saving money for Metro, here&#8217;s another idea.<br />
Eliminate the zones and peak/off peak fare structure.  It&#8217;s another source of confusion for riders.<br />
Instead, have regular bus service that cost X per ride, and premium bus service that cost X plus $1.00, or some other number.  The point is this.<br />
BRT, and long haul, limited stop buses cost more to operate, therefore should charge a premium fare.  Short haul, milk runs should be viewed as the baseline bus service, regionwide, and be charged at a flat, single rate.  This makes revenue increases in the future more palitable, if Metro can justify charging more, for premium services.<br />
Just ask your cable/salelite guys how this works.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Chris Stefan</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53982</link>
		<dc:creator>Chris Stefan</dc:creator>
		<pubDate>Thu, 09 Jul 2009 14:57:38 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53982</guid>
		<description>I see two possible sources of revenue from eliminating the RFA.
One is by collecting fares from those who make trips only within the RFA during the time a transfer is good. This is everything from those Belltown or Pioneer Square commuters to people who take other modes into the RFA but use metro to travel around the downtown core. A good example would be my co-workers who use metro to get to/from their parking or to run errands during the workday.
The second is by reducing the number of fare jumpers and increasing fare enforcement. With pay as you leave there are a number of people who will hop a bus and then refuse to pay when they reach their destination. True this may not be all that much revenue directly but it helps cut down on the perception that fare evasion is acceptable.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
I see two possible sources of revenue from eliminating the RFA.<br />
One is by collecting fares from those who make trips only within the RFA during the time a transfer is good. This is everything from those Belltown or Pioneer Square commuters to people who take other modes into the RFA but use metro to travel around the downtown core. A good example would be my co-workers who use metro to get to/from their parking or to run errands during the workday.<br />
The second is by reducing the number of fare jumpers and increasing fare enforcement. With pay as you leave there are a number of people who will hop a bus and then refuse to pay when they reach their destination. True this may not be all that much revenue directly but it helps cut down on the perception that fare evasion is acceptable.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Chris Stefan</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53979</link>
		<dc:creator>Chris Stefan</dc:creator>
		<pubDate>Thu, 09 Jul 2009 14:36:57 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53979</guid>
		<description>Yes transfers are to be avoided if possible, but not all transfers are equal. I generally don&#039;t mind transferring so much if the transfer is in my direction of travel and if the route I&#039;m transferring to is both frequent and reliable. Essentially the transfer isn&#039;t so bad if it doesn&#039;t incur a huge cost in travel time.

This is also why riders don&#039;t mind rail to rail or bus to rail transfers so much but don&#039;t generally like rail to bus or bus to bus transfers.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
Yes transfers are to be avoided if possible, but not all transfers are equal. I generally don&#8217;t mind transferring so much if the transfer is in my direction of travel and if the route I&#8217;m transferring to is both frequent and reliable. Essentially the transfer isn&#8217;t so bad if it doesn&#8217;t incur a huge cost in travel time.</p>
<p>This is also why riders don&#8217;t mind rail to rail or bus to rail transfers so much but don&#8217;t generally like rail to bus or bus to bus transfers.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Sound Transit Identifies Potential Savings - Seattle Transit Blog</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53974</link>
		<dc:creator>Sound Transit Identifies Potential Savings - Seattle Transit Blog</dc:creator>
		<pubDate>Thu, 09 Jul 2009 12:50:05 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53974</guid>
		<description>[...] since those savings are already being examined to plug Metro&#8217;s structural deficit, it&#8217;s unclear that they&#8217;ll also be available [...]</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
[...] since those savings are already being examined to plug Metro&#8217;s structural deficit, it&#8217;s unclear that they&#8217;ll also be available [...]<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Mike Skehan</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53973</link>
		<dc:creator>Mike Skehan</dc:creator>
		<pubDate>Thu, 09 Jul 2009 12:48:07 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53973</guid>
		<description>I&#039;m not so sure you can jump to that conclusion without actually crunching the numbers.  Yes, boarding is quicker, but with many more boardings in the RFA generated by a free service, more bus trips along the route are required to handle the peak loads generated within the RFA.  That cost money.
Transaction cost &#039;could&#039; be lower than revenue generated.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
I&#8217;m not so sure you can jump to that conclusion without actually crunching the numbers.  Yes, boarding is quicker, but with many more boardings in the RFA generated by a free service, more bus trips along the route are required to handle the peak loads generated within the RFA.  That cost money.<br />
Transaction cost &#8216;could&#8217; be lower than revenue generated.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Mike Skehan</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53971</link>
		<dc:creator>Mike Skehan</dc:creator>
		<pubDate>Thu, 09 Jul 2009 12:31:40 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53971</guid>
		<description>Well spoken, and very true.  The cut portions of routes are justified by having a TRANSFER opportunity available.  The network suffers overall because riders hate to transfer.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
Well spoken, and very true.  The cut portions of routes are justified by having a TRANSFER opportunity available.  The network suffers overall because riders hate to transfer.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Tony the Economist</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53963</link>
		<dc:creator>Tony the Economist</dc:creator>
		<pubDate>Thu, 09 Jul 2009 11:08:02 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53963</guid>
		<description>All of this ignores an enormous potential source of revenue, at least in Seattle: the general fund. The city currently allocates hundreds of millions a year to SDOT, most of which goes to road projects of various kinds. Unlike WSDOT money, the source of SDOT&#039;s cash is general city taxes, not the constitutionally protected gas tax. There is no law of any kind that prevents Seattle from taking money it is currently spending on road projects and diverting it to transit funding.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
All of this ignores an enormous potential source of revenue, at least in Seattle: the general fund. The city currently allocates hundreds of millions a year to SDOT, most of which goes to road projects of various kinds. Unlike WSDOT money, the source of SDOT&#8217;s cash is general city taxes, not the constitutionally protected gas tax. There is no law of any kind that prevents Seattle from taking money it is currently spending on road projects and diverting it to transit funding.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Tony the Economist</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53962</link>
		<dc:creator>Tony the Economist</dc:creator>
		<pubDate>Thu, 09 Jul 2009 11:02:07 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53962</guid>
		<description>Anyone who thinks that the RFA costs metro one red cent is confused by the difference between marginal and average costs. The only possible marginal revenue from eliminating the RFA would be Belltown Commuters. The vast majority of people do not get on and get off in the RFA. They came from outside the RFA and thus already paid their fare, or more likely they have a regular bus pass. The RFA is a misnomer, implying that people are not paying for the service when they already are. The RFA simply increases the efficiency of boarding. The transaction costs of collecting fares would greatly exceed the revenue generated.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
Anyone who thinks that the RFA costs metro one red cent is confused by the difference between marginal and average costs. The only possible marginal revenue from eliminating the RFA would be Belltown Commuters. The vast majority of people do not get on and get off in the RFA. They came from outside the RFA and thus already paid their fare, or more likely they have a regular bus pass. The RFA is a misnomer, implying that people are not paying for the service when they already are. The RFA simply increases the efficiency of boarding. The transaction costs of collecting fares would greatly exceed the revenue generated.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Tony the Economist</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53959</link>
		<dc:creator>Tony the Economist</dc:creator>
		<pubDate>Thu, 09 Jul 2009 10:49:25 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53959</guid>
		<description>You&#039;re likely referring to the standard economic concept of diminishing returns, in which the marginal value of additional quantities of a good generate lower marginal benefits. While this pattern applies to most goods and likely applies to some metro routes, transit systems are highly influenced by what are called network effects, in which the completeness of the network makes every part of the network more valuable.

The effect can be seen most obviously with Link Light Rail. Everyone knows that the initial segment is going to have modest ridership, but projections expect a 3-fold increase in ridership once U-Link is complete and a substantial boost beyond that once the rest of the system is in place. This is despite the fact that U-link amounts to a mere 20 percent increase in system size. Of course the segment between UW and downtown is the most productive in and of itself, but if we had ONLY built downtown to UW it would also be of little value. Essentially, each extension makes all the existing track more valuable because you can get to more places. Thus, the network adds up to more than the sum of its parts. As such all networks go through a long phase of increasing returns, in which additional routes actually increase the productivity of existing routes because they feed potential riders into the system. For example, the routes from downtown to UW (the 70 series) seem to be really productive, but without all the routes south of downtown that feed people into the south end of these routes, the 70 series alone would be unproductive.

This presents the danger of a downward spiral, in which service cuts not only eliminate ridership on the routes you cut, but eliminate ridership on other routes due to the network effect. You then end up with less revenue than you thought you would and have to make more cuts leading to still more declines in ridership until you suffer the fate of the streetcar systems of yesteryear.

This issue applies to all routes, but it definitely applies to some more than others. There are no doubt many routes where their cost well exceeds their benefits even if you include the network effects and these routes should be cut. My point is merely cautionary, cutting the wrong routes could break the entire system.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
You&#8217;re likely referring to the standard economic concept of diminishing returns, in which the marginal value of additional quantities of a good generate lower marginal benefits. While this pattern applies to most goods and likely applies to some metro routes, transit systems are highly influenced by what are called network effects, in which the completeness of the network makes every part of the network more valuable.</p>
<p>The effect can be seen most obviously with Link Light Rail. Everyone knows that the initial segment is going to have modest ridership, but projections expect a 3-fold increase in ridership once U-Link is complete and a substantial boost beyond that once the rest of the system is in place. This is despite the fact that U-link amounts to a mere 20 percent increase in system size. Of course the segment between UW and downtown is the most productive in and of itself, but if we had ONLY built downtown to UW it would also be of little value. Essentially, each extension makes all the existing track more valuable because you can get to more places. Thus, the network adds up to more than the sum of its parts. As such all networks go through a long phase of increasing returns, in which additional routes actually increase the productivity of existing routes because they feed potential riders into the system. For example, the routes from downtown to UW (the 70 series) seem to be really productive, but without all the routes south of downtown that feed people into the south end of these routes, the 70 series alone would be unproductive.</p>
<p>This presents the danger of a downward spiral, in which service cuts not only eliminate ridership on the routes you cut, but eliminate ridership on other routes due to the network effect. You then end up with less revenue than you thought you would and have to make more cuts leading to still more declines in ridership until you suffer the fate of the streetcar systems of yesteryear.</p>
<p>This issue applies to all routes, but it definitely applies to some more than others. There are no doubt many routes where their cost well exceeds their benefits even if you include the network effects and these routes should be cut. My point is merely cautionary, cutting the wrong routes could break the entire system.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Greenwood Rider</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53920</link>
		<dc:creator>Greenwood Rider</dc:creator>
		<pubDate>Thu, 09 Jul 2009 03:17:48 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53920</guid>
		<description>It&#039;s more complicated still - but not necessarily in a bad way.

TBD&#039;s are very flexible.  They can be created by counties, they can be created by cities, and they can be created for groups of cities or a defined service area that included parts of cities.  They could be a good way for Seattle to tax itself, or for a subarea to form a taxing district.

They can access several different revenue mechanisms.  Some of those can be enacted without a public vote (and some people assume that means only those tax mechanisms are feasible).  Others can be enacted with a vote within the proposed taxing district.

What I&#039;ve wondered, and haven&#039;t gotten a good answer to, is whether they can be used to fund ongoing operating expenses.  TBD&#039;s were set up as a way to fund capital projects, and they are supposed to go away once those projects (and their financing, if any) is paid off.  The language seems squishy enough (to me, a non-lawyer) not to know whether an ongoing tax can be enacted using this method and applied to operating expenses.

I&#039;ve also wondered whether a TBD could be crafted to appeal to a cross-section of people (say, transit, sidewalks and potholes) and packaged as an initiative.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
It&#8217;s more complicated still &#8211; but not necessarily in a bad way.</p>
<p>TBD&#8217;s are very flexible.  They can be created by counties, they can be created by cities, and they can be created for groups of cities or a defined service area that included parts of cities.  They could be a good way for Seattle to tax itself, or for a subarea to form a taxing district.</p>
<p>They can access several different revenue mechanisms.  Some of those can be enacted without a public vote (and some people assume that means only those tax mechanisms are feasible).  Others can be enacted with a vote within the proposed taxing district.</p>
<p>What I&#8217;ve wondered, and haven&#8217;t gotten a good answer to, is whether they can be used to fund ongoing operating expenses.  TBD&#8217;s were set up as a way to fund capital projects, and they are supposed to go away once those projects (and their financing, if any) is paid off.  The language seems squishy enough (to me, a non-lawyer) not to know whether an ongoing tax can be enacted using this method and applied to operating expenses.</p>
<p>I&#8217;ve also wondered whether a TBD could be crafted to appeal to a cross-section of people (say, transit, sidewalks and potholes) and packaged as an initiative.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Kaleci</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53917</link>
		<dc:creator>Kaleci</dc:creator>
		<pubDate>Thu, 09 Jul 2009 03:03:26 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53917</guid>
		<description>I don&#039;t understand why they would make the premium service free.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
I don&#8217;t understand why they would make the premium service free.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Oran Viriyincy</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53914</link>
		<dc:creator>Oran Viriyincy</dc:creator>
		<pubDate>Thu, 09 Jul 2009 02:11:12 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53914</guid>
		<description>Portland&#039;s MAX and Streetcar serves the same function as most of our high ridership, high frequency routes and they function well as a downtown circulator with good coverage. Their Fareless Square buses are already pay as you board so shifting people to the train won&#039;t be too much a problem.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
Portland&#8217;s MAX and Streetcar serves the same function as most of our high ridership, high frequency routes and they function well as a downtown circulator with good coverage. Their Fareless Square buses are already pay as you board so shifting people to the train won&#8217;t be too much a problem.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: EvergreenRailfan</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53892</link>
		<dc:creator>EvergreenRailfan</dc:creator>
		<pubDate>Thu, 09 Jul 2009 00:32:15 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53892</guid>
		<description>Portland is considering abandoning the fareless square, except for MAX and Streetcar. Kind of the opposite of what we are going to have here in 9 days.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
Portland is considering abandoning the fareless square, except for MAX and Streetcar. Kind of the opposite of what we are going to have here in 9 days.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Kaleci</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53891</link>
		<dc:creator>Kaleci</dc:creator>
		<pubDate>Thu, 09 Jul 2009 00:30:45 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53891</guid>
		<description>And what of the other agencies who honor the ride free area but are not reimbursed by the City/Downtown Association?  The City is getting quite the deal.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
And what of the other agencies who honor the ride free area but are not reimbursed by the City/Downtown Association?  The City is getting quite the deal.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Chris Stefan</title>
		<link>http://seattletransitblog.com/2009/07/08/metro-financial-policies/#comment-53876</link>
		<dc:creator>Chris Stefan</dc:creator>
		<pubDate>Wed, 08 Jul 2009 22:30:38 +0000</pubDate>
		<guid isPermaLink="false">http://seattletransitblog.com/?p=6174#comment-53876</guid>
		<description>OK, so the TBD stuff is even more confusing than I thought.

Still County or City TBD it still is more money for transit. In Seattle&#039;s case the money can be used to pay for some of the lost Metro service or for streetcars. For Bellevue they might be able to use some of the money for that Link tunnel they want.</description>
		<content:encoded><![CDATA[<p><!-- google_ad_section_start --><br />
OK, so the TBD stuff is even more confusing than I thought.</p>
<p>Still County or City TBD it still is more money for transit. In Seattle&#8217;s case the money can be used to pay for some of the lost Metro service or for streetcars. For Bellevue they might be able to use some of the money for that Link tunnel they want.<!-- google_ad_section_end --></p>
]]></content:encoded>
	</item>
</channel>
</rss>

<!-- Performance optimized by W3 Total Cache. Learn more: http://www.w3-edge.com/wordpress-plugins/

Minified using disk
Page Caching using disk (enhanced)
Database Caching 1/4 queries in 0.002 seconds using disk
Object Caching 423/428 objects using disk

Served from: seattletransitblog.com @ 2012-02-12 22:33:17 -->
