By Coral Gables Gazette staff

Less than six months into operation of a new Southern Loop trolley route, the City of Coral Gables will soon have to decide whether to continue operating the route in year two without a state grant to operate it. That means the city could be on the hook for an additional $200,000 of the close to $400,000 yearly operational cost of the new route, which runs along Ponce de Leon Boulevard parallel to U.S. 1 from the Douglas Metrorail station to SW 57th Avenue (Red Road).

Matt Anderson, the city’s assistant director of Mobility and Sustainability, told the Transportation Advisory Board at its March 17 meeting that funding from the Florida Department of Transportation (FDOT) had all but dried up this year.

“That’s going to be a decision the city is going to have to make,” Anderson said, referring to whether to continue the service without state support.

The Southern Loop launched in November with a one-year FDOT grant that splits the cost between the state and the city, with Coral Gables contributing about $204,000 and the state covering roughly $196,000. While the state’s fiscal year ends June 30, Anderson said remaining grant funds could carry the program “a couple months beyond June” before running out completely.

After that, continued service would require full local funding.

The funding challenge comes amid increased competition for state transit dollars. Anderson said more than 30 applications were submitted to FDOT this year, but fewer than a dozen were approved.

“That’s one of the lowest numbers that we’ve seen,” he said, attributing the shortfall to reduced available funding at the state level.

Despite the uncertainty, early ridership trends on the Southern Loop have been encouraging. Anderson told the board that monthly ridership has grown steadily since launch, climbing from just under 1,000 riders in its first month to more than 1,500 currently.

“We love to see the ridership continuing to increase month over month,” he said, noting that while the route has not yet reached initial projections of 3,500 monthly riders, “that is still within reach” if growth continues.

The route was designed to connect key destinations along the U.S. 1 corridor, including transit hubs, medical offices and the University of Miami, while also linking to existing trolley routes and regional transit systems.

Anderson emphasized that the Southern Loop is part of a broader mobility strategy aimed at reducing traffic congestion and expanding alternatives to driving. But maintaining and expanding those services comes at a cost.

The city currently receives about $3.1 million annually from Miami-Dade County’s half-penny transportation sales tax, which previously covered most trolley operations. However, with expanded service -including longer hours, Saturday routes, the Southern Loop and the Freebee on-demand service – the city’s mobility budget has grown to roughly $5 million, requiring subsidies from parking revenues.

With fewer state grants available, Anderson said the city will need to evaluate its overall mobility offerings and funding priorities.

Complicating matters further is the need to replace aging trolley vehicles. Under county regulations, trolleys can only operate for 15 years, forcing the city into an ongoing replacement cycle. Several vehicles are slated for replacement in the coming years, adding additional pressure to the budget even as the city works to smooth out those costs over time.

The Southern Loop currently operates with a single gas-powered trolley, the first of its kind in the city’s fleet, running on 30- to 40-minute intervals. While officials say that service level is appropriate for current demand, higher ridership could eventually justify adding more vehicles, further increasing costs.

The funding uncertainty also comes as Coral Gables faces broader fiscal questions, including the potential for reduced property tax revenues if state lawmakers approve sweeping tax reforms.

In other business, the Transportation Advisory Board revisited a procedural issue from its December meeting, when members believed they had voted to recommend a “scramble” intersection concept—featuring diagonal pedestrian crossings—to the City Commission.

Board members noted the vote was not clearly reflected in the official minutes, prompting discussion at the March meeting to formally restate and clarify their intent. The board ultimately reaffirmed its position to send the concept to the commission for consideration on whether further study is warranted.