View source for Prepare for adoption and financing

{{SumpStep/top|step=9|phase=3|title=Prepare for adoption and financing}}<div class="sump-intro">
An action programme with owners and dates against it is still something nobody has approved or paid for. This step does two jobs at once. It builds the financial plan, meaning what each measure costs to build and to run, where that money comes from and how the cost is divided between the bodies that agreed to deliver it, and it finalises the plan document so a political body can adopt it. In the outskirts the money half is the harder one, because the services a peripheral package leans on are exactly the ones that do not pay for themselves at local demand levels.
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<div class="sump-prereq__title">Before you start this step</div>
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<div class="sump-prereq__item"><div class="sump-prereq__box"></div><div class="sump-prereq__text">The decision route your plan has to travel, meaning which body votes on it, when that body sits, and what it expects to see in the papers beforehand.</div></div>
<div class="sump-prereq__item"><div class="sump-prereq__box"></div><div class="sump-prereq__text">A named finance contact inside every organisation that took on an action, because the person who agreed to the work is rarely the person who controls the budget for it.</div></div>
<div class="sump-prereq__item"><div class="sump-prereq__box"></div><div class="sump-prereq__text">The arrangements already in force that limit what you can spend, charge or grant locally, including any licence, concession or parking agreement an operator already holds.</div></div>
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== What the Brussels framework actually pays for ==

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<div class="dreams-lab__tag">[[Living_Labs/5|Brussels, Haren and Neder-Over-Heembeek]]</div>
Round-trip car-sharing in the Brussels-Capital Region is regulated by the Region and run by private operators, and under the Good Move mobility plan those operators receive no operating subsidy at all. What the Region does instead is change the conditions around them. An operator needs regional approval and has to meet conditions on how its stations are spread, so that vehicles reach beyond the densest districts. The regional parking agency sells operators exemption cards for public parking at a nominal annual fee per vehicle. Residents who deregister a number plate can claim an income-scaled bonus that may only be spent on alternatives to the private car, car-sharing among them. The public transport company and the car-sharing operators sell a combined offer, and the service sits inside the regional mobility app next to the other providers. Cambio, the largest round-trip operator, runs profitably in this arrangement and takes no public subsidy.
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Nothing in that arrangement is a cheque written to an operator, and that is the part worth carrying home ([[Publications/3|Deliverable 2.2]]). The Region finances the service by three indirect routes. It subsidises the demand side by putting money in residents' hands and restricting what it can be spent on. It lowers the operator's cost base using assets the authority already controls, which are parking and street space. And it lifts the operator's revenue by folding the service into the ticketing and the app people already use. Each of those is a governance decision before it is a financial one, which is why the financing plan cannot be drafted by a finance department working alone.

The same deliverable records the other side of that integration. Building a service into a regional mobility platform costs an operator real money, and operators are reluctant to spend it without some assurance of the journeys it will return, so an authority that wants the integration usually has to fund part of it. Treat platform integration as a line in your budget rather than as a favour you can ask for.

== Why a peripheral service does not pay for itself ==

Compared with a dense district, a shared service in the outskirts carries lower vehicle occupancy and higher overheads, since the same fleet is spread across more ground, and its one structural advantage is that parking costs less ([[Publications/3|Deliverable 2.2]]). Free-floating operators have little commercial reason to be there and concentrate where density carries them, so a plan that assumes they will arrive unaided is planning on nothing. Station-based round-trip car-sharing travels furthest into low density, particularly for households weighing up whether a second car is still worth keeping, and it is the model most likely to reach a balance with modest support.

Mobility hubs need a different frame again. The review found no business case for a hub network and no business model that can be applied to one, because a hub is not a business. It is infrastructure a public authority provides, maintains and brands, and the business models sit with the operators using it, with subsidy where local density will not carry them. A hub therefore belongs in the plan as a capital line with a maintenance line attached, not as a service expected to recover its costs. That distinction matters when a package mixes hubs with the other [[Select measure packages with stakeholders|intervention families]], because each family reaches financial viability by a different route and a single funding assumption across all of them will be wrong somewhere.

== Routes to a funded service ==

The DREAMS comparison of governance and business models across Belgium and France turns up a small set of arrangements that have made shared services viable in low density. Most packages need more than one of them, and the useful exercise is to work through the list against each measure rather than to look for a single answer.

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<div class="sump-check"><div class="sump-check__box"></div><div>'''Guarantee the revenue rather than buy the service.''' A public body tenders for an operator and pays a guaranteed monthly income covering its costs, so the service can grow into demand that is not there yet. An intermunicipal group of sixteen municipalities south of Ghent did this under its climate plan, and journey numbers rose steadily afterwards.</div></div>
<div class="sump-check"><div class="sump-check__box"></div><div>'''Bundle the thin area with a profitable one.''' Where an operator may serve the dense districts only on condition that it also serves the periphery, the cross-subsidy happens inside the contract instead of inside your budget.</div></div>
<div class="sump-check"><div class="sump-check__box"></div><div>'''Subsidise the resident rather than the operator.''' An income-scaled bonus for households giving up a car, spendable only on alternatives, routes money to the service through the people you most want using it.</div></div>
<div class="sump-check"><div class="sump-check__box"></div><div>'''Spend what you control instead of cash.''' Parking exemptions, station space, charging points and a light reporting burden all cut an operator's costs, and cost the authority far less than an equivalent subsidy.</div></div>
<div class="sump-check"><div class="sump-check__box"></div><div>'''Bring employers in.''' Mobility budgets and commuting allowances turn hoped-for demand into committed demand, and can carry a service to break-even in an area public money alone would struggle to reach.</div></div>
<div class="sump-check"><div class="sump-check__box"></div><div>'''Use the models residents can capitalise themselves.''' Cooperatives, peer-to-peer schemes and car-sharing arranged with a housing association keep the vehicle capital outside the public budget, which suits areas where local willingness is easier to find than local funding.</div></div>
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== A discount is not a business model ==

The Utrecht lab set out to find a business model that would get shared e-bikes used in Overvecht, a low-income district where operators were barely present. Its proposal is a social business model in which authorities pay operators small incentives to lower prices for specific groups at specific locations, with the option of charging more in the city centre to fund lower prices at the edge ([[Publications/5|Deliverable 5.1]]). The interventions that followed are deliberately cheap, a discount aimed at people working in the neighbourhood and a design study for a solar-charged station, and part of their point is to cut the operator's own logistics costs locally so that a lower price becomes sustainable rather than sponsored ([[Publications/6|Deliverable 6.1]]).

The most instructive finding from that lab is a discouraging one. A city travel pass held by tens of thousands of low-income residents already carried a steep discount on shared bikes, and only a few hundred holders were using it. Price was not the barrier it had been assumed to be, and a fare subsidy financed on its own would have bought very little. What makes the discount usable is the work around it, the cycling lessons, the cheap refurbished bikes, the digital help and the trial credits handed out through community centres and food banks. Fund the discount and its scaffolding as one item, or expect the money to sit unclaimed and the measure to be judged a failure of demand.

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<div class="dreams-callout__label">Ask when the operator's contract runs out</div>
A financing plan is only as stable as the arrangements underneath it. The Utrecht lab had to pull its activities forward because the incumbent operator's concession was ending ([[Publications/5|Deliverable 5.1]]), the kind of date that rarely appears in a mobility plan and routinely decides what is possible. Before adoption, gather the expiry dates of every licence, concession and framework contract your package depends on and lay them against your own timeline. Two years of funding secured for a service whose operating permission ends next winter is not secured funding.
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== One plan, several votes ==

The second half of this step is the document. SUMP asks for the plan to be finalised and its quality assured before it goes for adoption. Including securing the financing in this step makes a lot of sense. In a periphery there is usually more than one adoption to secure, because [[Set up working structures|the coalition that built the plan]] reaches across councils that each vote their own budget, and a plan adopted by one of them is not a plan.

Three things follow from that. Write the document so each body can find its own commitments and its own share of the cost without reading all of it, since a council that cannot locate its obligations will defer the item. Sequence the votes so that an early adoption does not bind a partner who has not yet voted, and be explicit about which commitments are conditional on the later decisions. And put whole-life costs in front of every body, the operating years as well as the build, together with the cost-sharing formula and [[Agree actions and responsibilities|the fallback you agreed]] for a share that fails to arrive. Assuring quality means checking the finished plan back against the evidence and the objectives it came from, so that what is adopted is still the plan the analysis supports rather than what survived the drafting.

What goes to the vote is what [[Manage implementation|the next step]] has to deliver. A measure that reaches adoption with its running costs unnamed will reappear as a problem in its second year, when the launch budget is spent and the service is still needed.

<div class="dreams-handoff dreams-handoff--dive">
<div class="dreams-handoff__label">Go deeper</div>
The EU Urban Mobility Observatory keeps the reference library for the SUMP method, and two of its guides carry this step. [https://urban-mobility-observatory.transport.ec.europa.eu/document/download/4e66c306-da56-4f99-95a0-08c0fcb57129_en?filename=funding_and_finance_of_sump.pdf Funding and Finance of Sustainable Urban Mobility Measures] works through the funding sources and financing instruments open to a city across the whole cycle, from developing the plan to operating the services it creates, and is the place to look if the routes above do not fit your legal setting. [https://urban-mobility-observatory.transport.ec.europa.eu/document/download/149d8b39-df5d-4e46-bf8c-4928ee9d29eb_en?filename=integration_of_shared_mobility_approaches_in_sumps.pdf Integration of Shared Mobility Approaches in Sustainable Urban Mobility Planning] covers the licensing, tendering and subsidy arrangements a municipality can put in place with shared operators, which is most of what this step turns into on paper. Both sit in the [https://urban-mobility-observatory.transport.ec.europa.eu/sustainable-urban-mobility-plans/expert-corner-sump-reference-materials_en SUMP reference materials] collection.
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<div class="sump-sources">
<div class="sump-sources__title">Sources and further information</div>
<div class="sump-sources__item"><span class="sump-sources__ref">EU SUMP Guidelines, Second Edition</span> (Rupprecht Consult, 2019), Step 9, Prepare for adoption and financing.</div>
<div class="sump-sources__item"><span class="sump-sources__ref">[[Publications/3|DREAMS Deliverable 2.2]]</span>: governance frameworks and business models for shared mobility and mobility hubs in the urban outskirts, including the Brussels-Capital Region, the Flemish purchase guarantee and the Paris Region.</div>
<div class="sump-sources__item"><span class="sump-sources__ref">[[Publications/5|DREAMS Deliverable 5.1]]</span>: set-up of the living labs, including the Utrecht social business model and the operator concession timing.</div>
<div class="sump-sources__item"><span class="sump-sources__ref">[[Publications/6|DREAMS Deliverable 6.1]]</span>: the Utrecht interventions and the objectives set for them.</div>
<div class="sump-sources__item"><span class="sump-sources__ref">[https://nachhaltig-mobil-planen.de/_SUMP/DE/Planung/SUMP-Prozess/3-Massnahmenplanung/9-Beschluss-Finanzierungen/beschluss-finanzierungen.html Finanzierung und Qualität sichern]</span>, German national SUMP portal, Bundesministerium für Verkehr.</div>
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