FY25 Proposed Budget

TRANSIT FUND

The Transit Fund accounts for the operations of the City’s public transportation operations. The Transit enterprise fund utilizes user fees, property taxes, and State and Federal funding to provide transportation services throughout the City including para-transit services. In fiscal year 2023, the unassigned fund balance decreased by $418,457 or 20.0% over fiscal year 2022 primarily due to transfers to the replacement reserve. The fiscal year 2024 projected unassigned fund balance is estimated to increase by $5,946 or 0.4% from fiscal year 2023.

Unassigned fund balance is budgeted to remain nearly the same as fiscal year 2024.

(1) FY24 - FY26 figures are estimates

The Transit Fund has assigned fund balance for replacement reserves. For fiscal year 2024, the assigned fund balance is estimated at $4,747,256. Funds are transferred from the Transit operations to the replacement reserve to cover 20% of depreciation expense for buses and facilities. Grants typically cover about 80% of the cost of replacement, and the replacement reserves are expected to cover the remaining 20%. In fiscal year 2025, the replacement reserve is projected to have a balance of $2,761,556 for the replacement of buses. The reserve also had an additional $9,500,000 that was being held for the replacement of the transit equipment facility. The construction is planned for fiscal year 2025, so this balance should be $0 at the end of the fiscal year.

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