Board asks for another $15K
The two neighboring counties have been working together to launch a new transit system.
However, they have run out of cash flow and are going back to both Faribault and Martin county boards for some help.
“There is one issue, we have run into,”?central services director Dawn Fellows told the County Board. “The funds allocated to Prairie Lakes Transit have been exhausted.”
Each County Board originally approved the designation of $15,000 to the new transit system’s start up fund.
The board was then in line for a grant to cover any additional start up costs past the initial contribution from the counties.
However, the grant process has taken extra time and some technicalities have made it so the grant money has not yet been made available to the transit board.
“We are working through the grant process with the Minnesota Department of Transportation,”?Fellows explained. “But they have to spend the funds before it is reimbursed through the grant.” Meaning, the transit system will have to spend the money before they get the money, which is the reason they need extra contributions from the counties.
“So, they ask for $15,000 more to continue operation until the grant money is flowing on a more regular basis,” Fellows said.
Commissioner Bill Groskreutz said he was surprised that they had only asked for $15,000 in the first place.
“When we started I asked if that was going to be enough,”?he said.
Commissioner Tom Loveall agreed that it was important to put funds toward the start up of this new transit system.
“It comes down to this, we are actually just loaning money to ourselves,”?he said.
The transit board will also be asking Martin County for $15,000 for the cash flow.
“We will be presenting the cash flow analysis at the next full transit board meeting,”?transit director Jeremy Monahan said.
The Faribault County Commissioners approved the contribution of additional funds until the grant from MnDOT came through.
“Are we committed to this already? Yes,” Groskreutz added, pointing out that helping them out when needed will be beneficial in the long run.
“I’m not so sure I?won’t be back for more, given the turn around (for the grant),”?Fellows added.