MPOJC policy board approves FY26 budget, transit apportionments and regional assessments

The MPOJC Urbanized Area Policy Board met Jan. 29 at the Iowa City Council Chambers and approved a package of administrative and funding actions, including the FY26 budget, federal transit apportionments for FY24 and Johnson County’s pass-through assessments to the East Central Iowa Council of Governments.

The board approved the proposed FY26 MPO budget and financial forecast, accepted a set of FY24 Federal Transit Administration (FTA) Section 5307 apportionments for the three local transit systems, and authorized participation in Iowa Department of Transportation pavement data collection. The board also adopted the process for programming Surface Transportation Block Grant (STBG), Transportation Alternatives Program (TAP) and Carbon Reduction Program (CRP) funds and confirmed Johnson County’s appointments to the ECICOG board.

Why it matters: these approvals set the MPO’s operating plan and the distribution of roughly $20 million in federal transportation funds that the board will program through the Transportation Improvement Program (TIP) over coming years.

The FY26 budget that the board approved shows a modest increase from FY25. "Our overall budget reflects about a 2.38% increase from FY25," Kent Ralston, executive director of the MPO, told the board. Ralston said the MPO’s FY25 total was about $790,000 and the FY26 proposal is roughly $809,000; he also said the MPO expects to use about $280,000 in FTA planning (PL) funds as part of the FY26 revenue mix and remains concerned about longer-term federal support.

The technical and funding items approved

- FY26 MPO budget and financial forecast: approved unanimously. The budget was presented as roughly $809,000, with personnel costs set by the collective bargaining agreement between the City of Iowa City and the American Federation of State, County and Municipal Employees (AFSCME). Ralston noted increased PL funds in FY26 compared with the prior year.

- ECICOG assessments for Johnson County: approved unanimously. The East Central Iowa Council of Governments proposed a 2% increase for member counties; the MPO acts as a pass-through for Johnson County entities and forwards the collected assessments to ECICOG.

- Appointments to ECICOG Board of Directors (calendar year 2025): approved unanimously. The board confirmed John Green (Johnson County supervisor), Chris Hoffman (Mayor, North Liberty), Nick Herbold (University Heights city council) and Allison Wells (Johnson County staff member) to the ECICOG board of directors, following the sequence of local appointments described by staff.

- Participation in Iowa DOT pavement data collection (Iowa Pavement Management Program): approved unanimously. Staff said the MPO uses Surface Transportation Block Grant (STBG) funds to pay for local-route pavement condition collection and estimated the MPO’s share for an optional 2027 local-route data collection at $45,000–$60,000, depending on the vendor. The board approved participation so the MPO can maintain a two‑year data cycle for local routes.

- STBG / TAP / CRP grant programming process: approved unanimously. Staff described a biannual competitive process for programming approximately $10 million in STBG funds (program years FY29–30), about $2 million in TAP funds (FY27–30) and roughly $3 million in CRP funds to program across FY26–30; Emily Bothell, senior associate transportation planner, emphasized the figures are anticipated federal funds and not guaranteed.

- FTA Section 5307 FY24 apportionments (operating funds): approved, with one negative vote. Hannah Veil, associate transportation planner, reported that Iowa DOT had indicated a total of $4,954,667 in FY24 FTA 5307 funding available to the MPO. The board reaffirmed a previously adopted fixed-percentage allocation (approved in July 2023) that splits the total as: Coralville Transit 16.1% (about $797,701), Iowa City Transit 60.5% (about $2,997,574) and University of Iowa campus transit (CAMBUS) 23.4% (about $1,159,392). The technical advisory committee had recommended the allocation unanimously. A CAMBUS representative stated concerns about the formula’s fairness after Iowa City went fare-free and announced they would vote in opposition; Veil confirmed the apportionments were approved with one recorded negative vote.

Board members and staff noted a desire for a periodic review mechanism. Veil and board members said the fixed percentages were adopted to avoid year-to-year budget swings and that any party may request a review; revisions would be discussed by the three transit managers, forwarded to the technical advisory committee, and then come to the board for decision.

Other procedural items

- The board nominated and confirmed Louise Fromm as chair and Rod Sullivan as vice chair for the 2025 calendar year; both appointments carried unanimously and are subject to the MPO’s two-year maximum in those roles.

Votes at a glance (recorded in meeting): the board recorded unanimous approvals on the FY26 budget and forecast; ECICOG assessments and appointments; the STBG/TAP/CRP programming process; and participation in the Iowa DOT pavement data collection program. The FY24 FTA 5307 apportionment measure passed with one negative vote (the CAMBUS representative).

What’s next: staff will complete required FTA 5307 applications on behalf of the three transit systems and begin the competitive call for STBG/TAP/CRP projects, with a draft FY26–29 TIP to be presented in July. The MPO tentatively scheduled its next meeting for March 26, though members noted a potential conflict with a county budget hearing and asked staff to consider an earlier date if feasible.