The city of Cincinnati is scrambling to cover the difference on a shortfall of funding from a voluntary tax incentive contribution agreement (VTICA) system set up to support the Cincinnati Bell Connector.

Chris Wetterich reports on funding questions for the Cincinnati Bell Connector streetcar, as one funding source in particular lags behind projections. The voluntary tax incentive contribution agreement (VTICA) asks "developers to donate to the streetcar’s operations some of the savings they would receive from property tax abatements for constructing new buildings and renovating old ones," according to Wetterich.
"But VTICA has lagged and council is now left to figure out how to avoid spending down a surplus in the streetcar operations fund over the next two years while VTICA theoretically catches up," reports Wetterich. The city will receive $130,000 from VTICA in 2019, after projecting it would receive $524,000. A surplus generated by an infusion of parking revenue in 2015 will soon be exhausted. If the VTICA doesn't pick up soon, the streetcar will be about $428,000 in the red by 2020.
The article includes more detail on how the city overestimated VTICA revenue projections, and what it will possibly do as a result of the budgetary shortfall—options range from budget cuts to free rides.
FULL STORY: City Council struggles with streetcar budget as revenue source lags

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