Major Investment Study / Draft Environmental Impact Statement
7. Financial Analysis
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7.2 PROJECTED USES OF FUNDS
7.2.1 PROJECTED CAPITAL EXPENDITURES
Table 7.2-1 presents
capital costs in inflated (year-of-expenditure) dollars for the Schuylkill
Valley Metro Locally Preferred Alternative. The capital costs include expenses
associated with the planning, design, construction, management, oversight
and start-up costs of the project. These costs also reflect the physical
features (i.e., alignment length, number of stations, number of rail cars,
etc.) defined in Chapter 3. Year-of-expenditure
estimates are based on an assumed 3.0 percent annual inflation factor.
Based on engineering estimates, it is assumed that construction would be
completed in FY 2010 with the first full year of service in FY 2011. The
financial analysis estimates the Schuylkill Valley Metro's out-year rehabilitation
and replacement needs based on the useful life of the project's capital
assets.
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TABLE
7.2-1 CAPITAL COST SUMMARY
(DOLLARS IN MILLIONS)
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| |
2001$
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YOE$
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| Engineering
& Project Management |
$191.4
|
$225.1
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| Right-of-Way |
$309.0
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$351.4
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| Construction |
$484.5
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$583.5
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| Vehicles |
$301.5
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$372.0
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| Systems |
$245.1
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$299.8
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| Total |
$1,531.4
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$1,831.8
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| YOE$
= Year-of-Expenditure Dollars |
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During the FY 2001-FY 2020 financial planning period,
SEPTA will continue to make investments in the baseline transit network
to bring it to and maintain it in a state of good repair. This includes
the renewal of civil structures and systems as well as rail car and bus
upgrades and replacements. The projection of these requirements is based
on the SEPTA capital program.
Continuing rehabilitation and replacement amounts
to approximately $29.48 million per year and is based on the acquisition
cost and the assumed economic life of the assets involved (50 years for
construction, 40 years for vehicles, and 20 years for systems).
7.2.2 PROJECTED OPERATING EXPENDITURES
Table 7.2-2 shows
projected baseline SEPTA and incremental Schuylkill Valley Metro operating
costs in year of expenditure dollars. Operating costs are based on the
results of the operations planning and costing analyses performed for the
project as well as a 3.7 percent annual inflation rate. This inflation
rate reflects the projected average annual increase in SEPTA FY 1999-2005
baseline operating costs. The table presents milestone operating costs
for FY 2001, FY 2010, FY 2011 and FY 2020. FY 2010 includes costs for the
first partial year of operation (assumed to be seven months) after the
completion of construction, while FY 2011 includes costs for the first
full year of operation. FY 2020 includes design year system costs.
FY 2001-FY 2005 baseline system operating costs
are based on SEPTA's FY 2001 operating budget. Out-year baseline system
costs are projected to increase at 3.7 percent per year. This is the projected
average annual increase in SEPTA's FY 1999-2005 baseline operating costs.
| TABLE
7.2-2 INCREMENTAL OPERATING COSTS & BASELINE SYSTEM OPERATING COSTS
(DOLLARS IN MILLIONS)
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FY 2001
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FY 2010
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FY 2011
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FY 2020
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| Schuylkill
Valley Metro |
$0.0
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$26.7
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$47.5
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$65.9
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| Baseline
SEPTA System |
$778.6
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$1,127.4
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$1,169.1
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$1,621.2
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| Total
Operating Cost |
$778.6
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$1,154.1
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$1,216.6
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$1,687.1
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