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

Final Design	Medium	Dedicated transit funding sources are in place, or there has been a clear pattern of general appropriations from State or local governments, which regularly provide a balanced budget for the existing system.
		Existing transit facilities have been adequately maintained and replaced through continuing reinvestment in the system.
		Financial projections show that the applicant currently has adequate financial capacity to operate and maintain the locally preferred alternative, supporting feeder systems, other programmed projects, and other elements of its transit system under reasonably conservative assumptions.
	Low	Sources of local transit funding have not kept pace with costs. Financial conditions have led to a pattern of service level cuts to reduce operating costs.
		The applicant has a history of deferring capital replacement and/or routine maintenance.
		Financial projections show that the applicant does not currently have the financial capacity to operate the proposed project, supporting feeder system, other programmed projects, and other elements of its transit system under reasonably conservative assumptions.
Preliminary Engineering	High	Ample dedicated funding sources are in place, or there has been a clear pattern of general appropriations from State or local governments, which regularly provide a balanced budget for the existing system.
		Existing transit facilities have been well maintained and improved through continuing reinvestment in the system.
		Financial projections show that the applicant currently has ample financial capacity to operate and maintain the locally preferred alternative, supporting feeder systems, other programmed projects, and other elements of its transit system under reasonably conservative assumptions.
	Medium	Dedicated transit funding sources are in place, or there has been a clear pattern of general appropriations from State or local governments, which regularly provide a balanced budget for the existing system.
		Existing transit facilities have been adequately maintained and replaced through continuing reinvestment in the system. The applicant's funding plan demonstrates an ability to continue with an adequate maintenance and replacement program.
		The applicant has adopted a realistic financial plan which, once implemented would provide adequate financial capacity to operate and maintain the locally preferred alternative, supporting feeder systems, other programmed projects and other elements of its transit system under reasonably conservative assumptions.
	Low	Sources of local transit funding have not kept pace with costs. Financial conditions have led to a pattern of service level cuts to reduce operating costs.
		The applicant has a history of deferring capital replacement and/or routine maintenance. Or, implementation of the project would create deficiencies in the applicant's ability to provide timely maintenance and capital replacement.
		The applicant has not yet adopted a finance plan, or has adopted a plan that is unrealistic or inadequate. For example, a "low" rating would be given where the region has demonstrated an unwillingness to adopt new funding sources with the required level of financial capacity, or where the operating plan is dependent upon unreasonable passenger revenue projections. A "low" rating would also be appropriate where financial projections show that, even if the adopted plan is fully implemented, the applicant would still not have the financial capacity to operate the proposed project, other programmed projects, and other elements of its transit system under reasonably conservative assumptions.
System Planning and Other	High	Dedicated transit funding sources are in place, or there has been a clear pattern of general appropriations from State or local governments, which regularly provide a balanced budget for the existing system.
		Existing transit facilities have been adequately maintained and improved through continuing reinvestment in the system. Available evidence indicates that the applicant will be able to continue its maintenance and replacement program upon implementation of a major investment.
		Financial projections show that the applicant currently has ample financial capacity to operate a major new transit investment, including supporting feeder systems, as well as other programmed projects, and other elements of its transit system under reasonably conservative ridership and other assumptions.
	Medium	Dedicated transit funding sources are in place, or there has been a clear pattern of general appropriations from State or local governments, which regularly provide a balanced budget for the existing system.
		Existing transit facilities have been adequately maintained and replaced through continuing reinvestment in the system. Available evidence indicates that the applicant will be able to continue its maintenance and replacement program upon implementation of a major investment.
		The applicant is considered by FTA to have a realistic chance of adopting and implementing a financing plan which would provide adequate financial capacity to operate and maintain a fixed guideway alternative, including supporting feeder systems, other programmed projects, and other elements of its transit system under reasonably conservative ridership and other assumptions.
	Low	Sources of local transit funding have not kept pace with costs. Financial conditions have led to a pattern of service level cuts to reduce operating costs.
		The applicant has a history of deferring capital replacement and/or routine maintenance, or available evidence suggests that a major investment could lead to financial strains that could adversely impact maintenance and replacement programs.
		The region has demonstrated an unwillingness to adopt new transit funding sources with the capacity that would be required to operate and maintain a fixed guideway alternative, including supporting feeder systems, other programmed transit projects, and other elements of its transit system under reasonably conservative ridership and other assumptions.