FY26 Proposed Budget

TRANSIT FUND

The Transit F und 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 2024, the unassigned fund balance decreased by $219,037 or 13.1% over fiscal year 2023 primarily due to transfers to the replacement reserve. The fiscal year revised 2025 projected unassigned fund balance is estimated to remain the same at $1,452,835 from fiscal year 2024.

Unassigned fund balance for fiscal year 2026 is budgeted to decrease $9,000.

(1) FY25 - FY27 figures are estimates.

The Transit Fund has assigned fund balance for replacement reserves. For fiscal year 2025, the assigned fund balance is estimated at $4,717,415. 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 2026, the replacement reserve is projected to have a balance of $2,827,366 for the replacement of buses. The reserve also had an additional $10,000,000 that was being held for the replacement of the transit equipment facility. The construction is planned for fiscal year 2026, so this balance should be $0 at the end of the fiscal year.

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