The total startup cost is estimated to be approximately $40 million. If amortized over a 20 year period, at a projected interest rate of 4.9%, annualized costs for debt service is $3.2 million. This figure could be substantially reduced if a state program supporting commuter rail capital improvements were in place. If an 80% state/20% local cost sharing program was in place, covering either track upgrade or rolling stock, the capital cost to local government could be lowered to $10 million. This possibility is more fully elaborated in the State subsection of "INTERGOVERNMENTAL ROLES" (p. 34).

An additional $5.5 million was estimated for the construction of eleven stations ($500,000 per station) in this corridor. This figure was not calculated into our capital cost estimates as it was assumed joint development with local communities and/or the private sector would play a major role in siting and building transit stations.

Operating and Maintenance Costs

The committee estimated operating cost by applying our Mazomanie to Sun Prairie corridor ridership estimate on page 17 with national operating averages. Figure 23 displays the national cross section used. These estimates include total aggregate operating expenses, e.g., insurance, maintenance, administration, etc. Service between Mazomanie and Sun Prairie would potentially begin with approximately 13 miles (Middleton to Sun Prairie) and expand to a full 34 miles (Mazomanie to Sun Prairie). Considering this, operating cost per passenger trip was estimated to be six dollars. With initial ridership at 600,000 passenger trips per year, annual operating and maintenance costs were projected to be approximately $3,600,000.

This figure would be reduced by the amount of farebox revenue recovered. Commuter rail systems typically can expect an initial 25 % farebox recovery. With an increase in service and ridership, farebox recovery might be expected to approach 50% of operating costs (national average equals 40%). A 25% farebox recovery rate would provide $900,000 in revenue, while 50% farebox recovery would equal $1.8 million.

Total Costs

Total estimated annual costs, capital and operating, are summarized as follows:

Capital	$3,200,000
Operating	$3,600,000	$2,700.000 @ 25% farebox recovery
		$1,800,000 @ 50% farebox recovery

 

Annualized rail costs for an initial commuter line were estimated to be in the range of $5 million to $6.8 million, with an offset of approximately $900,000 to $1.8 million in farebox revenue. Using $6.8 million, commuter rail would represent 20% of the region's commitment to transit and specialized transportation.

Revised: November 24, 1997.