FY25 Proposed Budget

Revenues: Road use taxes include gasoline taxes, weight taxes, and license fees collected through the State and deposited into the Iowa Road Use Tax Fund. Road use taxes are allocated to cities on a per capita basis based on the U.S. Census Bureau figures, which are updated every ten years. Under the current distribution formula, receipts into the RUTF are distributed according to a formula of 47.5 percent for the state primary road system, 24.5 percent for secondary county roads, 8 percent for farm-to-market county roads, and 20 percent for city streets. In March 2015, a $.10 per gallon fuel excise tax increase was passed by the State. In 2008, an additional source of state revenue was established through legislation creating a separate “TIME-21” funding stream. This revenue is dedicated primarily to maintenance and construction of certain primary highways in the state (60 percent), but also of secondary roads (20 percent) and municipal streets (20 percent). The new revenue stream was created by changing certain vehicle registration fees and schedules and by increasing trailer and title fees. In fiscal year 2025, Road Use Tax Fund revenues are projected to be $10.5 million, which is a 6.1% increase over the fiscal year 2024 estimated revenue. Road Use Tax Fund revenues are expected to take a slight decrease during fiscal year 2024 due to conservative estimates. We are expecting the revenues to bounce back in fiscal year 2025. Road Use Tax shared revenue represents 92.5% of the revenue in the Road Use Tax Fund.

Revenue Trends

$14,000,000

$12,000,000

$10,000,000

Transfer IN Other Financial Sources Miscellaneous Charges for Services Intergovernmental

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$-

2022 Actual

2023 Actual

2024 Budget

2024 Revised

2025 Budget

2026 Projected

Expenditures: Fiscal year 2025 budgeted expenditures, excluding transfers out, are lower than fiscal year 2024 expenditures by $90,837. This is primarily due to a decrease in capital outlay.

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