FY26 Adopted Budget Final

Revenues: The Transit fund is funded through several revenue sources:  Federal Operating Assistance: Based on an MPOJC formula, these funds are distributed annually between Cambus, Coralville Transit, and Iowa City Transit. State Operating Assistance: Job Access and Reverse Commute Program (JARC), is a Federally funded, application-based grant program, with annual allocations. This is 31.4% of fiscal year 2026 budgeted revenue and transfers in.  Transit Property Tax Levy: Iowa State Code chapter 384.12.1 provides the legal authority for municipalities to levy additional taxes, including “a tax for the operation and maintenance of a municipal transit system…” Iowa City transit property tax levy is $.95 per thousand of valuation. These property tax funds are collected in the General fund and transferred to the Transit fund.  Proposed for fiscal year 2026 is a 1% Utility Franchise Fee that would be to help pay for fare free transit. These fees would be collected in the General fund and transferred to the Transit fund.  Court Street Transportation Parking and Rent Revenues: These revenues include all hourly ($2.00 per hour after the first hour) and permit ($90 per month) parking as well as rent from the commercial properties.  Other Revenue: The Transit fund also receives revenue from advertising and other miscellaneous sources. Fiscal year 2026 revenue is projected to decrease from the original budgeted fiscal year 2025 revenue estimates by $2,352,900 or 29.7%. The decrease is due to federal grant funding.

Revenue Trends

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0

2023 Actual

2024 Actual

2025 Budget

2025 Revised 2026 Budget

2027 Proposed

Charges for Services

Intergovernmental

Use of Money & Property Miscellaneous

Miscellaneous

441