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CHAPTER IX - OPERATING COSTS Calculation of Estimated Operating Costs Estimated operating costs for the Eureka Springs streetcar system have been calculated by applying unit costs to projected vehicle miles under the various operating scenarios developed in Chapter VII. Unit costs are based on similar systems in other cities, as shown in the following table: OPERATING AND MAINTENANCE COSTS OF VINTAGE STREETCAR SYSTEMS IN SELECTED CITIES
Based on typical experience reported for the systems listed above, and eliminating the extremes reported, a typical cost per mile could be anticipated to lie in the range of $8 to $15, with a reasonable average of $12.00 per mile. The three different operating scenarios developed in Chapter VII have been calculated to determine the resulting annual vehicle hours and miles required to provide the respective level of service. This results in the annual vehicle operating hours and miles shown on Table 9-2 below. ESTIMATED ANNUAL HOURS AND MILES
The operating parameters of annual vehicle miles are then multiplied by the unit costs, resulting in the range of overall annual operating costs shown in Table 9-3 below. ESTIMATED ANNUAL OPERATING COSTS
Operating Costs Compared to Revenues Estimating ridership of vintage trolley lines is extremely difficult. Commonly used computer models are not "fine-grain" enough for this purpose, and there is not enough empirical data for such systems to allow for comparison. However, there is a fairly consistant relationship between the amount of service provided and the ridership which can reasonably be expected to be generated. This relationship is the average number of passengers per vehicle mile. Table 9-4 shows the number of passengers per vehicle mile experienced on seven vintage trolley systems in operation around the country. The range is between 5.1 and 8.6, with an average of just over six. PASSENGERS PER VEHICLE MILE ON SELECTED VINTAGE TROLLEY SYSTEMS
Assuming that the proposed Eureka Springs streetcar system holds to the pattern, it is expected that the line can generate six passengers per mile. For the three operating scenarios, this results in annual ridership shown in Table 9-5. ESTIMATED ANNUAL RIDERSHIP
The revenue generated by this ridership is directly dependent on the fares charged. If the streetcar system fare structure is similar to that of the present rubber-tired trolley, a base fare of $2.00 could be charged. If the streetcar system also adopts the use of the $3.50 daily pass in effect, the average fare per passenger would be less than $2.00. For purposes of estimating revenue, an average fare per passenger of $1.85 is assumed. This results in the revenues shown in Table 9-6. TABLE 9 - 6 ESTIMATED ANNUAL REVENUE
Net Estimated Operating Results The estimated revenues are compared with the estimated operating expenses in Table 9-7. The table shows the expected net income or deficit which results from each of the service scenarios and for each of the three operating cost assumptions. ESTIMATED OPERATING RESULTS
The above results show that the streetcar system can be operated without incurring an operating deficit only if costs are kept to a minimum. For purposes of this study, it is appropriate to consider the possibility that an operating deficit may occur. Therefore, a discussion of various means by which this deficit can be met is included in Chapter X. A key area for resolution in the next phase of the project is the degree to which the fare structure and fares charged will be independent of the present rubber tired trolley system. The above calculations assume that the streetcar will be completely independent. If, for example, a trolley rider will be permitted to also ride the streetcar at no additional fare, the revenue calculations will be dramatically changed. However, to the extent that the streetcar generates new and additional usage, it should receive appropriate accounting credit. This determination is beyond the scope of the present work, but should be the subject of later phases. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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