FY27 Proposed Budget

• 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 other miscellaneous sources. Fiscal year 2027 revenue is projected to increase from the original budgeted fiscal year 2026 revenue estimates by $4,810,152 or 86.3%. The increase is due to federal grant funding for bus purchases.

Revenue Trends

$20,000,000

$18,000,000

$16,000,000

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0

2024 Actual

2025 Actual

2026 Budget

2026 Revised 2027 Budget

2028 Proposed

Charges for Services Intergovernmental

Use of Money & Property Miscellaneous Miscellaneous

The Transit Property Tax Levy (including State backfill funds), estimated at $4,515,500, will be transferred into the Transit fund from the General fund in fiscal year 2027.

Expenditures: Fiscal year 2027 budgeted expenditures represent a 65.0% increase from the fiscal year 2026 original expenditure budget. The increase is due to capital outlay expenses to replace 5 buses in fiscal year 2027.

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