4.4. SR 03-17-2003 - Laserfiche WebLink

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If we compare the total benefits provided by Northstar Commuter Rail to the state's share of the costs, the benefit/cost ratio is 2.97 ($578.9/$195.6). This means that the project will return a present value of $2.97 for every state dollar. The value ofleveraging state dollars with local contributions and Federal transit funds clearly shows through in this calculation. Comparison with Earlier Estimates The estimate of a benefit cost ratio of 1.15 is higher than 0.84 estimate made by MnDOT in 2002. It also higher that the 0.26 that Parsons-Brinckerhoff estimated for the shorter Elk River line in 1998. What assumptions underlie the three calculations and how do they differ? Before considering individual assumptions in detail, it is helpful to display the estimates of the three studies in side-by-side fashion. The estimates of all three studies are included in Table 3. Table 3 Northstar Commuter Rail Benefits and Costs Comparison of Three Studies (Present values in million of constant $) PB MnDOT Anton, Lubov (in 19985) (in 20015) (in 20075) Elk River Northstar Northstar Benefits Time savings to commuters $ 8.5 Vehicle operating cost savings $ 35.7 Vehicle Accident Cost Savings $ 3.6 Pollution cost savings $ 3.8 Parking cost savings $ 1.6 Future value of depreciated capital stock $ 0.0 $20.7 $125.3 $ 41.0 $ 21.5 $ 18.5 $ 67.8 $ 92.3 $195.9 $ 64.0 $33.4 $ 58.9 $134.4 Total Benefits $ 53.2 $ 294.7 $578.9 Costs Capital Costs Operating and Maintenance Costs $144.0 $ 62.3 $ 213.2 $124.0 $ 301.9 $199.5 Total Costs $206.3 $ 337.2 $501.4 Net present value= - $153.1 - $ 42.4 + $ 77.5 Benefit/cost ratio= 0.26 Source: Anton, Lubov & Associates, MnDOT, Parsons-Brinckerhoff 0.84 1.15 6