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Streetcar line audit finds workable flaws
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Published: February 14, 2012
TAMPA - A city audit of the TECO Line Streetcar System contains plenty of warning signs.
The streetcar line has not been receiving all the revenue it should, no provisions have been made for rehabilitating infrastructure such as tracks and passenger stations, and ridership declined in January.
The audit, which covered the period from Oct. 1, 2008, to April 30, 2011, also found that detailed costs for infrastructure repair have not been estimated; those costs are expected to exceed $1 million.
The audit did not specify by what amount accounting for the streetcar line's budget may be off track, but a spokeswoman for the line said the board has taken steps to ensure the budget is balanced, including approving recent service cuts.
The report to Tampa Mayor Bob Buckhorn says the findings do not impair the operation of the 2.7-mile streetcar line between Ybor City and downtown.
The issues outlined in the report present risks that can be controlled, states the audit signed by internal audit director Roger Strout.
"We believe the audit shows the streetcar is being operated in an appropriate manner, and we acknowledge where the audit identified areas for refinement regarding record-keeping and future planning," David Mechanik, president of the nonprofit streetcar board, says in an email forwarded by a spokeswoman.
Under an agreement with the Hillsborough Area Regional Transit Authority, Tampa is responsible for any shortfall in the streetcar budget for basic services. HART operates the streetcars for the nonprofit system that began service in 2002.
Operating revenue is supplemented by a special assessment on properties near the streetcar line, various government grants, advertising, charters and, until recently, a $5 million endowment established in a settlement in the years after the Harbour Island "people mover" was discontinued in 1999.
The endowment now is depleted, which means the city might have to play a bigger role in the streetcar line's operation.
In addition, the streetcar line pays about $400,000 for insurance to cover liability at a CSX Transportation rail crossing, an amount board members have been trying to mitigate.
Among the audit findings:
•The streetcar line was not reimbursed for one-day bus passes that allow the pass-holders to ride streetcars. The line accepts 4,000 to 6,000 passes each month.
•Cash deposits from streetcar revenue collected from various vendors were not segregated from HART's normal bus revenue.
•Cash deposit amounts reported to the streetcar board could not be verified against cash deposits made from streetcar activities, which could result in misrepresentation of the agency's financial position.
•Salaries and benefit expenses recorded by HART have been over budget in recent years.
•The frequency of streetcar maintenance often exceeded the guidelines established by the manufacturer, possibly resulting in excessive maintenance expenses.
•The fare tracking system is not properly secured to prevent unauthorized access.
Streetcar ridership is projected to bring in $654,728 in fare box revenue, or 29 percent of the $2.3 million in operating costs, in fiscal 2012, the budget shows.
Ridership in January declined 11.2 percent to 33,378.
tjackovics@tampatrib.com (813) 259-7817
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