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Iowa City plans to continue fare‑free transit as staff flag need for ongoing funding review
Summary
Staff credited the fare‑free transit program with ridership gains and emissions offsets and said recent parking and franchise fee changes plus a new local option sales tax will help sustain the program, though operational and federal funding volatility require ongoing review.
City staff told the council Jan. 6 that Iowa City’s fare‑free transit program has increased ridership and supported climate and equity goals, and staff intend to continue the program while monitoring costs.
“We believe it has been a great success,” Kirk Layman, assistant city manager, said, adding that continued support comes from new parking rates, electric and gas franchise fees and an approved 1% local option sales tax slated to begin generating revenue in July. Layman cautioned the program will require annual review because operational expenses sometimes grow faster than supporting revenues and because federal transit funding can be volatile.
Layman connected the program’s continuation to broader mobility work including sidewalk infill, pedestrian accommodations and planned projects such as Burlington Street (projected for 2029). No formal policy decision was made at the work session; councilors will consider transportation and budget tradeoffs in coming months.
