FY27 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 2025, the unassigned fund balance increased by $215,801 or 14.9% over fiscal year 2024 primarily due to a decrease in expenditures. The fiscal year revised 2026 projected unassigned fund balance is estimated to increase $250,025 with a balance of $1,918,661.

Unassigned fund balance for fiscal year 2027 is budgeted to remain flat at $1,918,613.

Fund Balance (1)

$16,000,000

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$-

FY2024

FY2025

FY2026

FY2027

FY2028

Assigned

$12,078,715

$13,252,044

$2,006,995

$1,353,495

$2,103,495

Unassigned $1,452,835

$1,668,636

$1,918,661

$1,918,613

$1,918,645

FY26 - FY28 figures are estimates.

The Transit Fund has assigned fund balance for replacement reserves. For fiscal year 2026, the assigned fund balance is estimated at $2,006,995. 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 2027, the replacement reserve is projected to have a balance of $1,353,495 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 budgeted for fiscal year 2026, so this balance should be $0 at the end of the fiscal year.

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 21.6% of fiscal year 2027 budgeted revenue and transfers in.

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