Bloomington Transit provides fixed-route and paratransit service in Bloomington, Indiana, home to Indiana University. Additional campus shuttle service is provided by the University. Transit ridership in Bloomington has grown dramatically over the past 35 years, but the fixed-route ridership peaked in 2014 and has slowly declined since then. The route optimization study aimed to identify the strengths and weaknesses of the existing transit network in Bloomington, and to develop recommendations that optimize the use of existing resources and improve services in terms of ridership, productivity, and on-time performance. The study also examined the potential role of new and emerging technologies such as microtransit and autonomous vehicles in improving transit operations and the overall user experience. Our team developed two service redesign scenarios for both Bloomington Transit and Indiana University after completing extensive analyses of the existing services and the market for transit in the region. Based on stakeholder feedback, the team then developed a final recommended service scenario, incorporating the most popular elements of the two preliminary scenarios including microtransit service.