The challenges of developing the revenue streams that make public transit possible have no easy answers—but solutions do exist. That was the takeaway of a June 4 session at the APTA Rail Conference in Philadelphia called “Funding, Financing & Revenue.”

Six rail industry experts spoke at the panel, moderated by Michael Schneider, senior vice president, HDR/InfraConsult, and chair, APTA Public-Private Partnerships Committee.

Phillip Washington, general manager of Denver’s Regional Transportation District, discussed his agency’s Eagle P3, a public-private commuter rail project. “Even the residents of Denver don’t know how big a change is coming,” he said.

The Eagle P3 will bring 122 miles of new light rail, diesel commuter rail, and electric commuter rail lines to the Denver area. In addition, more than $164 million of the work has been committed to small and disadvantaged business. “We’re hoping for an APTA conference” when the project finally opens in 2016, Washington joked.

Funding for the Eagle P3 came from a unique variety of sources, he said, including the American Recovery and Reinvestment Act and a 0.4 percent increase in sales and use tax.

While public-private partnerships are a success story in Denver, “there is no one-size-fits-all financing solution” for public transit agencies around the country, said Rolando Amaya, consultant, Parsons Brinckerhoff. Amaya explained the various ways the industry can accumulate revenue, saying that tax-exempt borrowing traditionally has been the most common method.

Every public transit agency must concoct its own “cocktail” of whatever methods work, he said: “The right financial solution successfully integrates the project’s environment with the sponsor’s goals, needs, and capabilities.”

The private sector also has an important role to play, speakers emphasized. Public transit advocates can safely make the case that public-private partnerships (P3s) are a “sound venture for private investors using a ‘five-P strategy’ of the right People on a great Project with a solid Plan for a compelling Percentage return in a stable and favorable Political environment,” said Bennett J. Johnson III, founder and chief executive officer, Ocean Ventures.

Conversely, federal funding for public transit is likely to become scarcer in the future, said Richard Peltz, vice president, regional rail development, rail infrastructure management, for the American Intercity Rail Network for the 21st Century. “Appropriable funds will be even tighter in the future,” he said: Budgetary pressures will reduce available federal funds, and there will be “even more demands for discretionary funds.” Federal funds will have to be strongly leveraged to demonstrate stimulated job growth, he said.

Still, the public has demonstrated its understanding of the importance of public transit investments. “Los Angeles County voters have passed three 0.5 percent sales tax measures that are now raising over $2 billion annually for transportation improvements and services,” said David Yale, executive officer, countywide planning and development, Los Angeles Metro.

Darnell Grisby, APTA director, policy development and research, introduced a new initiative for APTA members. “We know that the type of funding sources we construct can have an impact on modal balance, economic development, and farebox recovery,” he said. “Therefore, the new Center for Funding, Finance, and Revenue will not just explain the various arrays of funding and financing choices, but also will develop an industry strategic initiative that will improve the relative position of public transit across the country.”