Des Moines approves utility fee hike to fund struggling DART system despite Council division

DES MOINES, Iowa — Instead of falling on property owners, all energy users could help keep buses on the road in the metro.

With a divided vote, the Des Moines City Council approved a possible funding source for the Des Moines Area Regional Transit Authority on Monday night. Council members voted to increase a utility Franchise Fee from 5 to 7.5 percent.

DART provides more than 12,000 rides every day, and more than 75 percent of the users are in Des Moines, according to city leaders. Those statistics resulted in two other metro municipalities pulling the service, thus shifting more of the cost to the Capitol City.

A last-ditch effort to delay the third and final vote by city leaders fell on deaf ears. Councilmember Chris Coleman made a motion to delay the council’s final decision before delivering a short presentation from the podium.

“There are a number of things that continue to spell concern for me,” Coleman, who represents Ward 1, said.

Coleman told his colleagues that he was worried about public notice, complying with Iowa law, and allowing citizens the opportunity to weigh in.

“The very law they are passing tonight says we should give people time to decide,” he said.

Coleman told the council he wanted the public to vote on a referendum to decide on the taxpayer increase in funds and where they go. Currently, some of it is earmarked to help the region’s public transit system.

“We still haven’t heard from DART about what they are going to do to live within their budget,” said Ward II councilmember Linda Westergaard, who supported delaying the council vote.

DART, like many essential services, has been struggling financially and is currently undergoing plans to “re-imagine” its operations.

“We as a council have to decide, ‘Are we willing to try to stabilize it, and make sure we’ve committed to our time, like we said we would, or are we not?,’” said Mayor Connie Boesen, who is also the chair of the DART Commission.

Despite the concerns, the motion to delay was voted down and the motion to approve the Franchise Fee was approved in a 4-2 vote.

“We recognize that with the budget constraints we have, we are going to have to utilize the franchise fee,’ said At Large Councilmember Mike Simonson.

Darts reimagnined plans are due in September. Boesen said the plan is for the city to have governance over it. A final agreement must be made between the City and DART before residents will see the increase on their utility bills.

Statement from DART CEO

We appreciate the continued commitment of our local leaders to work collaboratively toward a shared vision and roadmap for regional public transit that can promote quality of life and a strong economy in the communities we serve. Through Reimagine DART we are working together to build a sustainable bus network that reflects available funding and focuses on the services our region values most.  
 
DART is already collecting the maximum amount it can from the City of Des Moines through the transit property tax levy, which is why the Des Moines Council approved increasing its franchise fee to help fund its contribution to DART that is above what DART can collect in property taxes. 

-Amanda Wanke, DART CEO

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