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AGENDA RECOMMENDATION |
Consent Calendar 6.I.
City Council Regular Meeting
- Meeting Date:
- 07/14/2025
Agenda Item:
Resolution authorizing Joint Powers Agreement with Minnesota State University Mankato for 2025/2026 Transit Service.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The City of Mankato Transit System has operationalized many of the fiscally constrained recommendations from the 2023 Transit Development Plan. Fundamentally, it is no longer operating as a separate system for Minnesota State University Mankato and North Mankato, but rather as 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 eliminate the “lost fares” to encourage transit ridership throughout the entire service area.
The City of Mankato Transit System provides service to 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.
The University agrees to make two payments based upon the following schedule:
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 a total of 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:
Ineligible expenses include charter bus operations, sightseeing services, services wholly outside the urbanized area, capital replacement funding, or school bus operations, etc.
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 eliminate the “lost fares” to encourage transit ridership throughout the entire service area.
The City of Mankato Transit System provides service to 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.
The University agrees to make two payments based upon the following schedule:
| Dates | Amount Due (estimate) |
| Fall Semester 2025, due April 30, 2026 | $300,700 |
| Spring Semester 2026, due June 30, 2026 | $301,429 |
| Total | $602,129 |
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 a total of 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., farebox revenue
- Non-farebox 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.