When SunRail trains first started rolling down tracks just over a decade ago, it was agreed the state would pay the bills for several years — but local governments along the route would eventually pick up the tab.
Four counties and three cities — Osceola, Orange, Seminole, Volusia, Orlando, Winter Park and Maitland — are now preparing to take over operating and maintaining the 61-mile commuter rail line from the Florida Department of Transportation.
And some local officials are experiencing sticker shock as bills come due in January.
In Maitland, the City Council unanimously agreed June 24 to pull out of a contract with Orange County if a new deal could not reached. That agreement called for the city to pay $281,400 next year — and much more in coming years — for its share of the SunRail station.
“That’s a tough number to swallow,” Maitland Mayor John Lowndes said of the cost. “And we’re facing a lot of other budgetary challenges that we didn’t anticipate this year.”
While it’s still early in the process — and negotiations about costs are likely ahead — Maitland’s reluctance underscores a challenge for the region as local agencies prepare to shoulder substantial costs for a rail system that has so far fallen short of its promise from a decade ago.
Ridership numbers remain low — although slowly ticking upward each year. And a projected SunRail extension to the airport — dubbed the Sunshine Corridor — is considered critical for the line’s long-term viability. That extension, however, remains in early planning stages and the estimated $4 billion price tag is still without funding.
Maitland council members pointed out at a recent meeting that of 16 stops along the rail corridor, the city’s station — off U.S. Highway 17-92 in the downtown district — consistently ranks as one with the fewest number of riders each month.
In addition, Maitland is the only Central Florida municipality forecast to see a drop — by as much as 3% — in total taxable value of properties this year compared to last year, according to the Orange County Property Appraiser’s Office. That drop is a budgetary issue the city will struggle with as it looks at paying any impending SunRail bill.
In Volusia, County Council Chair Jeff Brower said his members felt “sticker shock” when recently budgeting the county’s share of $5.4 million for SunRail operations and maintenance for next fiscal year.
SunRail trains currently stop in DeBary but a final 12-mile segment to DeLand is scheduled to open this year. As in Maitland, Brower and other county officials wonder if the cost will soar in coming years.
“It’s $5.4 million now. But will it be $10 million in the future?” he asked. “We don’t know that yet. That will be a hard bridge to cross. … We’re not a wealthy county.”
Since SunRail began running May 1, 2014, it has cost just over $60 million a year to operate and maintain tracks, trains and stations. That’s estimated to rise to $65.3 million next year and to $77.2 million annually by 2029.
At the start, the agreement was that state DOT would shift costs to local governments in seven years or 2021. The deadline was later extended until the end of 2024.
Using a formula based on the number of riders and track miles within each jurisdiction, next year’s estimated costs are $5.4 million for Volusia, $12.1 million for Seminole, $12.2 million for Osceola, $15.3 million for Orange and $20.2 million for Orlando.
Winter Park and Maitland formed interlocal agreements with Orange County in 2011 to help the county with its share of the bill. But the county recently told Maitland its portion could soar to $675,000 under a new agreement since costs have risen for operations and maintenance.
Maitland City Manager Mark Reggentin said officials in 2011 assumed a funding source for SunRail — such as a transportation tax — would be in place by the time DOT pivoted costs to communities.
Those hopes were dashed in April when Orange commissioners abandoned a plan to ask voters in November for a penny sales tax that could raise up to $759 million annually for transportation projects — including SunRail. Officials said that revenue would have relieved Maitland and Winter Park of financial obligations for the train system almost entirely.
It’s unclear if the Maitland station — which saw just under 30,000 riders in the past year, the second-lowest of all stations — would shut down if the city and county can’t reach an agreement by year-end.
The station’s future is up to the Central Florida Commuter Rail Commission, with representatives from each local government. The commission currently serves an advisory role but will take over operations and oversight when the transfer from DOT is complete.
In Seminole, commissioners have long anticipated the SunRail bill and recently budgeted payment for next fiscal year. The county has stations in Sanford, Lake Mary, Longwood and Altamonte Springs, and does not ask those cities to chip in for SunRail.
Commissioner Amy Lockhart said even though ridership has ticked up annually since a 2020 downturn due to the pandemic, the service needs to expand by running trains on weekends and providing riders with a connection to Orlando International Airport.
“I think SunRail will be worth it in its future form,” Lockhart said. “I think Seminole County will be very glad when it’s able to go to the airport … SunRail has the ability to get us further, to get to the airport, to get to the attractions. But it’s going to take some effort.”
Volusia’s Brower agreed a connection to Orlando’s airport and extended train hours is vital to SunRail’s future success. Currently, Lynx buses offer trips to the airport from several train stations.
Orlando Mayor Buddy Dyer, one of the region’s biggest SunRail supporters, has said a link to the airport “is a must for our community.”
But even in its current state, Osceola Commissioner Ricky Booth said the train serves an important role in Central Florida.
“There’s no question it reduces traffic in our communities,” Booth said. “We need commuter rail to work.”
In Osceola, SunRail stops at the Tupperware Center, Kissimmee Amtrak station and in Poinciana.
Because of their worries about rising costs, Booth and Lockhart are proposing a study that looks at raising ticket prices to help pay local costs and running trains on weekends. Currently, a trip from DeBary to Poinciana, the rail corridor’s termini, is $5 or $9.50 roundtrip.
Although most governments along the route are grimacing at SunRail’s bill, in Winter Park — where the station near trendy Park Avenue boasts one of the highest number of riders — commissioners enthusiastically agreed last week to pay the city’s $350,000 portion.
Orange officials said Winter Park’s bill is expected to increase sharply in coming years — but it’s unclear by how much.
“SunRail is good to us,” City Commissioner Craig Russell said. “It is money well spent.”
