Key West Transit Development Plan FY2025-2034

9.0 Ten-Year Implementation Plan

9.0.1 Financial Plan The Ten-Year Financial Plan includes operating and capital costs and revenue assumptions for maintaining services from FY 2025-2034. It addresses how Key West Transit can match the recommended short term and long-term priorities with available and potential new financial resources. Cost estimates are based on various data sources, including recent procurements, peer agency costs, NTD data, trend analyses, fleet planning, and discussions with Key West Transit staff. Revenue projections include capital and operating revenue from state and federal grants, city funding, fare revenue, and advertising sales. The Financial Plan summarizes the total budget for FY 2025-2034, divided into short-term and long-term categories with the following assumptions:

9.0.2 Cost and Revenue Assumptions Operating Costs: Include various operational expenses such as salaries and benefits. » The current hourly cost to operate the existing service is projected by averaging the FY 2022 NTD cost with a more precise hourly cost used by KWT budget staff for all new services. » A 2% inflationary factor is applied annually to each expense category. Operating Revenues: Come from existing and new sources, including grant funds and advertising. » Existing grant revenue from state and federal sources (and local matches) will continue and grow modestly each year. » New state and federal operating grant revenue sources (and associated local matches) will be added once service improvements begin in FY 2027. » A 2% fare revenue increase is projected for the duration of this plan. Capital Costs: Include expenses for existing and planned capital and infrastructure investments necessary for transit service delivery. » A 2% inflationary factor is applied annually to each capital expense category. Capital Revenues: For existing and planned investments will be added beginning in FY 2027, allowing increased FTA 5311 and 5339 revenue allocations to be applied to capital needs.

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Transit Development Plan FY 2025–2034