As many of you know I have a background in business finance and am particularly interested in finance issues. You are also probably aware that the City of Rochester was directed by the FTA to have competitive bids to run OUR transit system (I refer to it as ours since we own the buses, streets, shelters, set the fares and routes, and have paid for most of everything for decades…). You probably also know that I believe that we should have bid this competitively even if we weren’t required to. Here are the financial results in 3 charts. If you look at these 3 charts, I think you can see why competitive bidding is good for the city.
For a decade we saw double digit growth in expenses compared to less than 5% population growth + inflation. The bid resulted in growth rates that are far better. FT = First Transit
Edit: Today I asked staff about this and part of what we need to look at is revenue hours for each year. Staff is getting me that information and I will update.
Here are total expenses per the bids vs. what would happen if RCL had continued to grow at the same rate as the past 10 years.
Edit 2: The jump in 2012 is due to an adjustment in revenue hours (I think). I will confirm.
Edit 3: I will update this chart to adjust for revenue hours when available.