During an alternatives analysis process, feasible funding sources are identified for the local match to build the system and annual costs to operate the system. Although it is important to identify feasible funding sources, the funding commitments and detailed financial planning is completed in the Preliminary Engineering phase.

Local Match Capital Cost Finance - As identified in the capital cost section, approximately $16.2 million in local match will be required for the $79.9 million in federal construction funds for the initial route and route extensions. The City will be utilizing Tax Increment Finance (TIF) funding for the local capital cost match. There is capacity within TIF districts along the route to fund the local share. In addition, there are several opportunities along the route to create new TIF districts to help fund a portion of the local share.

Annual Operating Funding - The estimated annual operations cost for the initial route is $2.62 million and $3.85 million for the initial route and route extensions. The annual operating costs are intended to be financed through the City's parking fund, farebox revenue, and state and federal transit aid; however, if a new dedicated revenue source for an RTA is approved by the State Legislature, the operating costs for the Streetcar should be financed by that source.