Tampa — Financial Crisis Looms

Rail Transit Online, November 2005

A fund that provides operating subsidies for the TECOLine streetcar may be depleted in the coming years and some elected officials have declared they will oppose a city bailout.  The 2.3-mi. (3.7 km) line is operated by the independent Tampa Historic Streetcar Inc., which gets about 50 percent of its operating income from an endowment of federal and city money that was designed to provide long-term financing.  The fund was supposed to earn eight percent annually but low interest rates have kept the return to about two percent, requiring withdrawals of principal.  The fund is down to $5.2 million.  “The crisis isn't today or tomorrow, but it's certainly on its way,” said Hillsborough Area Regional Transit Authority board member Steven Polzin, who suggested that the streetcar might be better off if it was made a part of the authority or some city department.  But Hillsborough Commissioner Ronda Storms said Tampa will not make up any deficit.  “This is a game of chicken, and I'm prepared not to blink,” declared Storms.