Key West Transit Development Plan FY2025-2034

Appendix E: Farebox Recovery Report

CURRENT AND PRIOR FAREBOX RECOVERY RATIO The Farebox Recovery Ratio indicates the percentage of operating expenses covered by the fare paid by passengers. The current farebox recovery ratio, as reported to NTD in FY 2022, was 8.6% for fixed-route services. Figure E-1 on the following page shows the five-year history of the KWT farebox recovery ratio for fixed-route services, as reported to NTD. The five-year notable trends include: » 2018: The ratio stood at 11.40% , suggesting a healthy contribution from fares to the overall operating costs. » 2019: There was a slight decrease to 10.37% , which could indicate various factors such as increased operational costs or reduced ridership. » 2020: The ratio saw a more significant drop to 8.33% . This year was marked by the global pandemic, which likely led to a substantial decline in public transport usage due to lockdowns and social distancing measures. » 2021: The downward trend continued, with the ratio at 7.28% . Despite the easing of restrictions, the lingering effects of the pandemic might have continued to impact public commuting habits. » 2022: The ratio improved to 8.60% , hinting at a recovery phase. This could be attributed to the resumption of normal activities and increased confidence in public transportation. The data reflects consistencies with other transit agencies and the common challenges faced by public transportation during the pandemic and the subsequent recovery.

An additional requirement for the TDP was added by the Florida Legislature in 2007 as part of House Bill 985 which requires transit agencies to: “… specifically address potential enhancements to productivity and performance which would have the effect of increasing farebox recovery ratio.” The farebox recovery ratio refers to the percentage of a transit system’s total operating expenses that are funded by passenger fares. PRIOR YEARS FARE STUDIES AND CHANGES The following summarizes the timeline of fare policy changes for the KWT fixed-route system: » The last KWT fare change was implemented in 2019. As a result, the current full fare on the fixed-route system is $2.00, and $1.00 for reduced fare. Fares for the Lower Key Shuttle remained the same for the full fare and reduced fare, $4.00 and $2.00, respectively. » The Duval Loop was implemented in 2017 as a fare-free service to serve the Old Town area. » In 2019, the fare for seniors and veterans was eliminated by the City Commission. PROPOSED FARE CHANGES No fare studies have been conducted, and there are no proposed changes to the fare policy.

APPENDIX — Transit Development Plan FY 2025–2034

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