DART in crisis as 7 more cities threaten to leave public transit agency
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Illustration: Brendan Lynch/Axios
Seven metro municipalities' mayors are threatening to leave DART to start their own regional transit service, joining a growing exodus of local governments from the agency.
The big picture: In a letter to the City of Des Moines this week obtained by Axios, the mayors say they will stay — if Des Moines reconfirms by Dec. 1 its commitment to pay a bigger share of DART's costs that more fairly reflects the capital city's usage.
- The mayors represent more than half of DART's board members.
Why it matters: Reversing the agency's ongoing financial crisis is becoming more challenging as metro cities yank their memberships and hundreds of thousands of dollars in annual contributions.
- DART provides millions of rides in the metro each year.
Catch up fast: A dozen metro governments pay about 70% of DART's $43.4 million annual budget using a formula mainly based on the services they receive.
- DART officials have identified millions in funding gaps in recent months, which they say are caused by post-pandemic changes in ridership and costs outpacing revenue.
State of play: While 75% of DART service lies within DSM city limits, the municipality paid only about a third of the overall contribution from local governments as of three years ago.
- A new funding formula, which DSM previously agreed to, ups the city's share to about 49% in the next five years, according to the letter signed by the mayors of West Des Moines, Urbandale, Clive, Johnston, Windsor Heights, Altoona and Bondurant.
Behind the scenes: DSM appears unwilling to pay that, the public transit's chairperson and West Des Moines Mayor Russ Trimble tells Axios, which prompted the mayors' letter.
Flashback: The Grimes and Pleasant Hill city councils recently voted to withdraw from DART, which will cost it more than $1M in revenue in the coming years.
The other side: DSM, which is contributing more than $10 million to the transit in the current fiscal year, has so far followed the funding formula ramp-up.
- Its property owners already pay the maximum transit tax allowed by state law, even as other mayors pressure Des Moines to approve a separate 2.5% franchise fee on taxpayers, city officials told Axios this week.
That extra fee wouldn't resolve DART's problems, just contribute to another burden solely shouldered by DSM taxpayers, according to the city's statement.
- System-wide improvements to help the agency regain its financial footing are necessary before a fee would be considered, Des Moines Mayor Connie Boesen said in the statement.
- DSM has commissioned a study to identify such solutions.
What's next: Boesen and Trimble issued a joint statement Thursday morning saying they met to discuss the issues and are committed to further conversations over the next two months to find solutions.