County OKs loan to transit
FAIRMONT — Martin County plans to help temporarily fund a new bus for the Prairie Lakes Transit System by paying $48,079 to the Faribault and Martin County Joint Transit Board.
The price of the vehicle would not drain the Transit Board’s finances if it had to purchase the vehicle on its own, but it could potentially lead to a cash flow problem.
Martin County commissioners on Tuesday heard from Prairie Lakes Transit director Jeremy Monahan, who presented a request concerning purchase of the new bus. A 2018 Ford Elkhart vehicle was purchased by the joint Transit Board last year, and is set to be delivered in coming weeks. Once it is received and passes inspection, the board has 30 days to submit payment to the vehicle vendor.
The vehicle carries a cost of $77,547, with the Transit Board responsible for 20 percent. Once payment is made, a request for funds will be submitted to the Minnesota Department for Transportation for reimbursement of 80 percent of the cost, or $62,000. This leaves $15,509 that is the responsibility of the Transit Board, or its member counties.
The Transit Board executive committee asked Monahan to brief each county board, and inform them it is not a certainty that the Transit Board could pay for a vehicle in full and then wait for the 80 percent reimbursement without a possible cash flow issue arising. Therefore, the executive committee asked that each county consider loaning the Transit Board funds.
Once the 80 percent reimbursement is made, the Transit Board will decide if 80 percent is to be paid back with the member counties paying their share of the 20 percent, or if 100 percent is to be paid back with the Transit Board’s reserves paying for the 20 percent share.
The loan is asked to be given in the same proportion of the established responsibility for each county, which is 62 percent ($48,000) for Martin County and 38 percent ($29,000) for Faribault County. Monahan expects the vehicle to be here and inspected by the end of the month.
“If we cut a check to the vendor for $77,547, we won’t be out of money,” he said. “But it’s just that thing where we might run into a cash flow issue.”
Commissioner Kathy Smith asked whether there is a policy on the counties paying for 20 percent of the cost.
“The resolution says that the counties will be responsible for the 20 percent,” Monahan replied. “So the Transit Board can decide to make the Transit Board responsible for it if they choose, or else the counties can pay the share.”
“Personally, I think it should be the Transit Board,” said Commissioner Dan Schmidtke. “Unless they’re just flat broke, and if they’re broke it’s time to take another look at what we’re doing there.”
“But we are working in the right direction,” said Commissioner Elliot Belgard. “Last year we got to take 20 percent out of the reserves of the Transit Board and we probably are going to be able to do that again. What gets lost in the shuffle sometimes is what’s a loan and what’s normal operating fees, and we get to decide that.”
Belgard made a motion that Martin County give its share of the requested money to the Transit Board with the expectation that it is a loan. The motion passed unanimously.
In other action, the board:
o Reappointed Kevin Peyman as Martin County Engineer for a four-year term running through April 30, 2022.
o Approved a motion to adjust camping fees, based on the recommendation of the Martin County Parks Commission. Of the previous fees considered for adjustment were $10 per night for primitive campsites, $25 for smaller shelter houses and $50 for the larger ones. Those fees will be adjusted to $12 per night for primitive campsites, $30 for smaller shelter houses and $60 for the larger ones.





