Table A-2: Financial Ratings: Stable And Reliable Operating Revenue

Phase of Project Rating Indicators
Final Design High Sponsoring agency is considered to be in very sound financial condition. Ample dedicated transit funding sources are committed and available and there is a good history of general appropriations from State or local government to provide a balanced budget for the transit system. Existing transit vehicles and facilities have been well maintained and replaced through continuing reinvestment in the system. The applicant has demonstrated the financial capacity to operate and maintain the proposed new starts project, other programmed projects, and the existing regional transit system.
Medium-High Sponsoring agency is considered to be in sound financial condition. The lead agency demonstrates that funding for operating an expanded transit system is committed. Existing transit facilities have been well maintained and replaced through continuing reinvestment in the system. Financial projections indicate adequate financial capacity to operate an expanded transit system.
Medium Sponsoring agency is considered to be in reasonably sound financial condition. The applicant has adopted a realistic operating finance plan that adequately covers projected operating costs for the existing and proposed transit system expansion. Demonstrates that funding for operating an expanded transit system is identified and will likely be committed. Existing facilities are adequately maintained. Financial projections indicate adequate financial capacity to operate an expanded transit system.
Low-Medium Sponsoring agency may be in sound financial condition, with some correctable deficiencies. The applicant has not yet adopted a realistic operating finance plan that adequately covers projected operating costs, and potential sources of operating funds have not been committed. Current sources of local funding are not sufficient to operate the proposed system expansion and operate and maintain the current transit system.
Low Sponsoring agency is not considered to be in reasonably sound financial condition. The applicant has adopted an operating finance plan that FTA considers inadequate or infeasible. Local funding does not generate sufficient revenue to operate and maintain the current transit system, and no new sources have been identified or committed to finance an expanded public transit system. Local transit system operating assistance is not reliable, resulting in deferred capital replacement and/or routine maintenance and/or service reductions.
Preliminary Engineering High Sponsoring agency is considered to be in very sound financial condition. Ample dedicated transit funding sources are committed and available and there is a good history of general appropriations from State or local government to provide a balanced budget for the transit system. Existing transit vehicles and facilities have been well maintained and replaced through continuing reinvestment in the system. The applicant has demonstrated the financial capacity to operate and maintain the proposed new starts project, other programmed projects, and the existing regional transit system.
Medium-High Sponsoring agency is considered to be in sound financial condition. Demonstrates that funding for operating an expanded transit system is committed. Existing transit facilities have been well maintained and replaced through continuing reinvestment in the system. Financial projections indicate adequate financial capacity to operate an expanded transit system.
Medium Sponsoring agency is considered to be in reasonably sound financial condition. The applicant has adopted a realistic operating finance plan that adequately covers projected operating costs for the existing and proposed transit system expansion. Demonstrates that funding for operating an expanded transit system is identified and will likely be committed. Existing facilities are adequately maintained. Financial projections indicate adequate financial capacity to operate an expanded transit system.
Low-Medium Sponsoring agency may be in sound financial condition, with some correctable deficiencies. The applicant has not yet adopted a realistic operating finance plan that adequately covers projected operating costs, and potential sources of operating funds have not been committed. Current sources of local funding are not sufficient to operate the proposed system expansion and operate and maintain the current transit system.
Low Sponsoring agency is not considered to be in reasonably sound financial condition. The applicant has adopted an operating finance plan that FTA considers inadequate or infeasible. Local funding does not generate sufficient revenue to operate and maintain the current transit system, and no new sources have been identified or committed to finance an expanded public transit system. Local transit system operating assistance is not reliable, resulting in deferred capital replacement and/or routine maintenance and/or service reductions.