Key West Transit Development Plan FY2025-2034

9.2 Long-Term Operating and Capital Improvements

The first year (2030) of the Long-Term Plan accounts for an existing deficit of $4,748,401 carried over from the previous year. This initial deficit contributes to the overall financial challenge, resulting in a shortfall of $11,742,729 by the end of 2030. This emphasizes the importance of flexibility in implementation, careful financial management, and identifying additional revenue sources to ensure sustainability. The operating costs for maintaining existing services are projected to increase steadily from $7,944,943 in 2030 to $8,599,862 in 2034, totaling $41,345,804 over the five years. Additional costs are anticipated for expanding services, including the Workforce Express expansion starting in 2030 and the South Connector service beginning in 2031. The total operating costs are expected to rise from $11,195,865 in 2030 to $13,457,422 in 2034, amounting to $63,462,923 over the period. Capital expenditures for new and replacement vehicles are significant, peaking at $1,400,000 in 2030 due to the implementation of the two new services and associated vehicle acquisition. Other capital costs include infrastructure improvements, the Key West Intermodal Center, and bus stop infrastructure. The total capital costs are projected to decrease from $13,675,000 in 2030 to $275,000 in 2034, totaling $34,925,000 over the five years. The total operating revenues are expected to increase from $7,995,048 in 2030 to $9,179,908 in 2034, amounting to $43,655,492 over the period. The total capital revenues are projected to decrease from $14,840,212 in 2030 to $3,074,337 in 2034, totaling $46,780,578 over the five years. This decrease is due to the assumption of securing new federal grants to fund the Key West Intermodal Center (KWIC) from 2030 to 2032.

The total revenues (operating and capital) are expected to decrease from $22,835,261 in 2030 to $12,254,245 in 2034, totaling $90,436,070 over the period. The total costs (operating and capital) are projected to decrease from $29,829,588 in 2030 to $19,099,903 in 2034, amounting to $124,193,315 over the five years. It’s important to note that the construction of the new KWIC project, estimated at $32 million over three years, creates outliers in the budget due to significant cost and revenue assumptions during this period.

Transit Development Plan FY 2025–2034

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