Authority Operating Costs
The financial model should also contain a worksheet for the running costs of the transport authority itself.

The cost items included in authority costs are similar to the management and administrative costs of the bus operator (see operating costs) but modified to reflect the authority’s responsibility to monitor and regulate bus operations (see staffing and expertise requirements).

The authority’s operating costs will increase as its role shifts from public owner to regulator of private contracts used for bus operations. It will require additional staff resources to tender, evaluate and monitor private contracts and in some options to take on all network planning.

An important additional authority operating cost item is the expenditure required to maintain its infrastructure investments. The authority may pass on infrastructure maintenance and operating costs to the bus system operator or other outside contractor.

It may also decide to pass on its own administrative and management costs to the bus operator. The financial model can analyze the impact on fare levels if it’s decided to pass on authority costs to the bus operator.

See also
Capital costs
Operating costs
Authority costs