Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 3/26/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 8A5
ACTION:  Adopt a resolution authorizing the Mayor to sign an Intergovernmental Agreement with the 
Regional Public Transportation Authority for the purchase and supply of transit services for fiscal year 
(FY) 2025-26. (Resolution No. R2026.36)
FISCAL IMPACT:  Total cost of this Agreement is $42,110,433. Sufficient funds have been 
appropriated in the Transit Fund - cost center 3914 (Transit Operations) as part of the adopted FY 2025-
26 budget for anticipated expenditures in the current fiscal year.  The cost of this Agreement will be 
funded with the following revenue sources: 

Tempe Transit Tax: $28,919,418

Fare Revenue: $1,174,253

Advertising: $184,434

Federal Funds/Preventive Maintenance: $2,928,803

Proposition 400 Funds: $13,190,998
RECOMMENDATION:  Adopt Resolution No. R2026.36.
 
BACKGROUND INFORMATION:  The Intergovernmental Agreement (IGA) provides the Regional 
Public Transportation Authority (RPTA) with funding to operate and maintain bus transit service in 
Tempe.  The level of funding and revenue identified in the Agreement was approved by the RPTA Board 
of Directors in June 2025 and by the Tempe City Council in June 2025 as part of the Transit Fund 
budget. The change in gross cost is due to the decrease in fare revenue and increase of administrative 
costs and agency/contracted labor, materials, utilities, and insurance associated with the operation and 
maintenance for bus services. Information on the use of funds and offsetting revenue is provided below.
Proposition 400 Funded / RPTA Operated - Proposition 400 funding is Tempe’s bus jurisdictional 
equity allocation for RPTA to operate service on Tempe’s behalf for routes 30 - University, 48 - Rio 
Salado, 61 - Southern, 72 - Rural, 77 - Baseline, 81 - McClintock, and Express routes 521 and 522.  No 
funding transfer is required. The gross cost to Tempe is $14,949,483.
FY 2024/25
FY 2025/26
% Increase/Decrease
Total Bus Operations 
– Gross Cost
$14,685,342
$14,949,483
1.79%
Revenue
Fare Revenue
$658,798
$656,061
-0.41%
Advertising
$103,776
$103,044
-0.70%
Prop 400 Funds
$12,912,322
$13,190,998
2.15%
Preventative 
Maintenance
$1,010,446
$999,380
-1.09%
Total 
Revenue/Credits
$14,685,342
$14,949,483
1.79%

2
Tempe Funded / RPTA Operated - Tempe purchases transit service from RPTA for bus routes 45 - 
Broadway, 56 - Priest, 62 - Hardy/Guadalupe, 66 - Mill/Kyrene, 108 - Elliot, FLASH, and Orbit. The 
gross cost to Tempe is $28,919,435.
 
FY 2024/25
FY 2025/26
% Increase/Decrease
Total Bus Operations 
– Gross Cost
$30,515,341
$31,448,440
3.05%
Revenue
Fare Revenue
$519,780
$518,192
-0.30%
Advertising
$84,663
$81,390
-3.86%
Preventative 
Maintenance
$1,935,600
$1,929,423
-0.31%
Transit Tax
$27,975,298
$28,919,435
3.37%
Total Revenue
$30,515,341
$31,448,440
3.05%
The term of this Agreement is one (1) year which begins on July 1, 2025 and, unless sooner 
terminated under any provision of this Agreement, ends on June 30, 2028 and includes two (2) one (1) 
year options which may be executed by amendment.
ATTACHMENTS:    
1.
Resolution
2.
Intergovernmental Agreement
STAFF CONTACT(S):  Shelly Seyler, Deputy Transportation and Sustainability Director, (480) 350-
8854
Department Director:  Eric Iwersen, Transportation and Sustainability Director  
Legal review by:  Eric Anderson, City Attorney
Prepared by:  Sue Taaffe, Administrative Supervisor