Master Proposed Book FY2023

Revenues: Road use taxes include gasoline taxes, weight taxes, and license fees collected through the State and deposited into the Iowa Road Use Tax Fund. Road use taxes are allocated to cities on a per capita basis based on the U.S. Census Bureau figures, which are updated every ten years. Under the current distribution formula, receipts into the RUTF are distributed according to a formula of 47.5 percent for the state primary road system, 24.5 percent for secondary county roads, 8 percent for farm-to-market county roads, and 20 percent for city streets. In March 2015, a $.10 per gallon fuel excise tax increase was passed by the State. In 2008, an additional source of state revenue was established through legislation creating a separate “TIME-21” funding stream. This revenue is dedicated primarily to maintenance and construction of certain primary highways in the state (60 percent), but also of secondary roads (20 percent) and municipal streets (20 percent). The new revenue stream was created by changing certain vehicle registration fees and schedules and by increasing trailer and title fees. In fiscal year 2023, Road Use Tax Fund revenues are projected to be over $9.39 million, which is a 2.47% increase over the fiscal year 2022 estimated revenue. Road Use Tax Fund revenues are expected to take a slight decrease during fiscal year 2022 due to the COVID-19 pandemic. We are expecting the revenues to bounce back in fiscal year 2023, with a slight increase budgeted as a result of the 2020 census. Road Use Tax shared revenue represents 98.5% of the revenue in the Road Use Tax Fund.

Revenue Trends

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$-

2019 Actual

2020 Actual

2021 Actual

2022 Revised 2023 Budget 2024 Projected

Intergovernmental

Charges for Services

Miscellaneous

Other Financial Sources

Expenditures: Fiscal year 2023 budgeted expenditures, excluding transfers out, are higher than fiscal year 2022 expenditures by 6.2%. This increase is primarily due to an increase in Traffic Engineering expenditures particularly in capital outlay and a new position and an increase in expenditures in Streets System Maintenance vehicle chargebacks.

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