Resolution authorizing a Joint Powers Agreement with Minnesota State University Mankato for 2026-2027 Transit Services.

Adoption of the attached resolution.

The City of Mankato Transit System has operationalized many of the fiscally constrained recommendations from the 2023 Transit Development Plan. Fundamentally, no longer operating as separate systems for MNSU Mankato and North Mankato, rather an integrated system serving everyone with improved access, more service hours, and more days of the week.

Transit staff met with university staff and members of the Student Senate to discuss the continued agreement and funding mechanism. It was agreeable to both parties to continue the 40% cost share and encourage transit ridership throughout the entire service area.  

The City of Mankato Transit System provides service for Minnesota State University, Mankato on an annualized basis. The University shares the cost of service through reimbursement for required matching funds and capital replacement costs. 
 

Dates	Amount Due (estimate)
Fall Semester 2026, due April 30, 2027	$301,429
Spring Semester 2027, due June 30, 2027	$314,052
Total	$615,481

Paratransit service for eligible mobility challenged riders and Demand Response (KATO Flex) shall be charged at rates published by the City.

This agreement is contingent upon approval of the federal resources from the Urbanized Area Formula Funding program (49 U.S.C 5307) through the Minnesota Department of Transportation Office of Transit and Active Transportation. The Urbanized Area Formula Funding Program authorizes grants to public transit systems in urban areas with populations of more than 50,000 for both capital and operating projects. Based on population and density figures, these funds are distributed directly to the transit agency from the Federal Transportation Administration.

The federal and state funding share totaling 80 percent of eligible costs incurred through operations of the Fixed Route. The City provides the balance of eligible expenses through a local match which may include:

• Cash from nongovernmental sources i.e., fare box revenue
• Non-fare box revenues from the operations of public transportation services, such as the sale of advertising and concession revenues.
• Amounts received under a service agreement with a state or local service agency or private social service organization, i.e., Minnesota State University – Mankato and North Mankato.
   
• Amounts appropriated or otherwise made available to a department or agency of the government, i.e., transit property tax levy of $415,000.

Ineligible expenses include charter bus operations, sightseeing services, services wholly outside the urbanized area, capital replacement funding, or school bus operations, etc.