Paying for the system

The Original 1996 Sound Move Plan (continued)

Risk Assessment

The assumptions used to project costs and revenues for Sound Move are consciously conservative. The assumptions have been carefully analyzed to provide a cushion in case there are adverse changes in one or more of the revenue or expense projections. Experience shows that if one assumption changes, other key indicators would likely change in a similar manner. For example, if inflation were to escalate projected costs, interest rates and earnings and tax revenues would also be higher than plan projections. The RTA, however, has adopted several strategies within its financial polices to reduce the impact of any imbalance between planned expenditures and available revenues.