DE LOS CONCEPTOS SOBRE POLÍTICA

A financial analysis must be undertaken and a financial plan must be developed by the MPO before programming a project into the TIP. The MPO financial plan must demonstrate that TIP projects can be carried out while the existing transportation system is being adequately operated and maintained and that only projects for which funds can be reasonably expected to be available may be included in the TIP.

FTA encourages Project Sponsors to fund

NS/Small Starts projects by overmatching Federal Capital Investment

Grant Funding

funding with the highest possible local share. The

general commitment guidelines for New, Small Under the Final Interim Guidance Starts, and Core Capacity Projects include the for the Capital Investment Grant

following: program issued in August 2015,

"FTA will lock in the Section 5309  Any project recommended for an FFGA or

CIG funding amount (not share, SSGA should meet the project justification,

the actual amount) at the level local financial commitment, and process

requested by the Project Sponsor criteria established by Sections 5309(d)

with entry into Engineering." through (k).

[Ref. 2-3]  To the extent that funds can be obligated in

the coming fiscal year under existing FFGAs and SSGAs, these commitments should be honored before any new funding recommendations are made.

 The FFGA and SSGA define the terms of the Federal commitment to a specific project, including funding. Upon completion of an FFGA or SSGA, the Federal funding commitment has been fulfilled and additional project funding will not be recommended. Any costs beyond the scope of the Federal commitment are the responsibility of the Project Sponsor, although FTA works closely with Project Sponsors to identify and strategically implement technical and management decision-making means and methods to contain capital costs at the level included in the FFGA or SSGA at the time it was executed.

 Firm funding commitments, embodied in construction grant agreements, will not be made until the sponsors have demonstrated that their projects are ready for such an agreement, i.e., when the project’s development and design have progressed to the point where its scope, costs, benefits, and impacts are considered firm and final.

 Funding should be provided to the most qualified investments to allow them to proceed through the process on a reasonable schedule, to the extent that funds can be obligated to such projects in the upcoming fiscal year. Funding decisions will be based on the results of the project evaluation process and resulting project justification, local financial commitment, and overall project ratings, and considerations such as project readiness and the availability of funds.

 These funding decisions will be based on meaningful consideration of the full range of benefits that transit can provide, rather than requiring a medium or higher rating for cost effectiveness, as was previously the case.

As the maximum Federal share decreases, alternative funding sources become increasingly important. Those sources can include taxes, assessments, fees, negotiated investments, private donations, joint development, and other types of public-private cooperation.

49 U.S.C. § 5309 states that: “The Secretary may not approve a grant for a project under this section unless the Secretary determines that … (B) the applicant has or will have the legal, financial, and technical capacity to carry out the project.” The basis upon which the FTA makes determinations of financial capacity is set forth in FTA Circular 7008.1A, Financial Capacity Policy [Ref. 2-43]. The FTA also has provided guidance regarding the content and layout of a financial plan that accomplishes the objectives of the legislative mandate placed upon the FTA and encourages all transportation agencies to prepare financial plans consistent with this guidance. See FTA’s Guidance for Transit Financial Plans [Ref. 2-44].

As an integral component of the planning and development of transit projects, a Financial Plan should include information on the current financial health of the Project Sponsor, such as existing O&M costs and funding, existing and forecast capital spending, and anticipated capital funding sources. The financial plan should also include data on specific new projects that are in planning or development. The details of the project financial information will necessarily change and become more reliable as projects advance through planning and development.

A project financial plan is required to adhere to a specific outline contained in the guidance, including a description of the project, agency-wide and project capital plans, an agency-wide operating plan, project operating revenues and costs, and a 20-year cash flow projection. Appendix A – Cost Estimation Methodology, provides more detailed guidance on cost estimating and project financial planning.

A wide variety of funds can be used for planning activities, including, but not limited to, FTA Section 5303 Metropolitan Planning Grants, FTA Section 5307 Urbanized Area Formula Grants, State Planning and Research Program funds, Surface Transportation Program funds, Congestion Mitigation and Air Quality (CMAQ) Improvement Program funds, and FHWA Planning Program Funds. Capital program funds, including NS project funding, can be used to support planning. Transportation Infrastructure Financing and Innovation Act (TIFIA) loan guarantees are another source of project financing that should be considered.

As a part of transit project financial planning, it may be necessary to coordinate and interface with ancillary projects that are being developed in conjunction with the transit project (street/highway construction or utility modernization) or otherwise complement and reinforce the objectives of the transit project (joint development). Such opportunities for coordination offer potential efficiency benefits for all parties. Opportunities for leveraging local funds can be achieved.

2.2.9 FFGA and Other Grant Requirements