Other Revenue
The financial model will identify other operating and capital revenue sources in addition to farebox revenues. It should also indicate which revenues are ear-marked for specific expenditures, and which are discretionary and may be spent on any operating or capital activity. Many governments have fund allocation rules that determine eligible capital and operating expenditures from specific funding sources.

Objectives for forecasting other revenue

• To construct the benchmarks and indicators that measure the authority’s progress to achieve its financial objectives.
• To identify the types and amounts of funding sources required for new vehicle purchases and infrastructure investments.
• To assist the authority to prepare tender documents for private contracting.
• To monitor private contracts.

Other operating revenues
In addition to bus fares, other sources of revenue generated by bus system assets may include:

• Private hire or charter operations
• Excursions and tours
• Accompanied luggage
• Freight
• Advertising
• Depot and station charges
• Property rental
• Terminal and other concessions
• Other fees and commissions

The authority may also receive revenue from other sources for bus operations. These may include:

• Government budget transfers required for operating shortfalls or to finance social service provisions.
• Short-term loans from government-owned or private banks to finance working capital and operating shortfalls.
• Employer and other third party contributions.
• Delayed vendor payments that effectively act as short-term loans. (Delayed vendor payments should not be condoned as a source of finance. Vendors may stop critical supplies, such as fuel, if they are not paid on time, and may thus cause significant disruption to bus operations.)

Other capital revenue sources
Other capital revenue sources required for vehicle purchases or infrastructure investments include:

• Government capital grants.
• Loans from government owned export, development and commercial banks.
• Loans from private commercial banks.
• Loans and grants from bilateral and multilateral institutions.

If the authority uses loans to finance vehicles and infrastructure investments, the financial model should have a separate loan worksheet that calculates loan interest and amortization payments and debt-service coverage ratios for any revenue sources used for debt-service payments.

Other revenue projections
The financial model should also have a worksheet that forecasts other revenues. Combined with farebox revenues, these forecasts will show the authority’s annual financial position for bus operations. They will also generate other benchmarks and indicators for financial management purposes.

Forecasting capital revenue sources is more difficult, as these sources typically depend on available government budget resources, which are often unpredictable. It’s essential that the authority uses realistic assumptions about government capital grants for vehicle purchases and infrastructure investments to prepare a capital plan.

This is especially important if the authority relies on these grants to match multilateral and bilateral grants and or loans. If the authority requires bank loans to finance a portion of its vehicle purchase and infrastructure investment plan, then it will have to demonstrate to banks and other creditors the timely receipt of government matching funds.

See also
Farebox revenues