Mankato receives $700K boost for city bus service

Mark Fischenich, The Free Press, Mankato, Minn.
·2 min read

Sep. 3—MANKATO — Mankato's city bus system, including the paratransit program for riders with disabilities, is in line for more than $700,000 in savings thanks to a special appropriation for outstate Minnesota transit systems approved by the Minnesota Legislature earlier this year.

The two-year program aims to provide some relief for the steep inflation in the cost of fuel and new buses in the previous two years.

Average Minnesotans noticed the sting of gas prices and the soaring cost of new and used cars during the post-pandemic economic recovery. For someone attempting to keep numerous buses fueled up and replace aging buses, the issues were particularly magnified.

"Here are a couple of examples for you," said Shawn Schloesser, transit supervisor for the city of Mankato.

The average monthly cost of fuel for the Mankato Transit System's buses was under $16,283 in 2021. It jumped to $27,294 per month in 2022 and was still above $22,400 this year.

The cost of buses skyrocketed over the same period.

"Large model bus prices increased from $530,000 to $688,000 for replacement buses," Schloesser said. "Smaller model bus prices increased from $167,000 to $263,000 for replacement buses."

In addition, supply-chain issues delayed the delivery of new buses that were slated to arrive in 2020, 2021 and 2022 until this year, which drove up the transit system's maintenance costs as it worked to keep the aging fleet on the road.

The state's response, part of the transportation funding bill signed by Gov. Tim Walz on May 24, was to reduce local shares of transit operational costs while boosting the percentage paid from federal and state sources. The required local share dropped from 20% for traditional fixed-route buses and 15% for paratransit service to 5% for each.

For capital purchases, which primarily involve the cost of replacement buses, the local share is temporarily dropping from 20% to 10%.

Over two years, starting in July of this year and ending on June 30, 2025, the discounted local share is expected to save Mankato $716,115.

Because the savings are essentially targeted at making up for the inflationary costs, the impact on transit service will be minimal. But the reduced local shares also mean the city won't be feeling as much financial pressure to reduce service or increase local revenue sources, which come from fares paid by riders, from a $415,000 transit property tax levy, from advertising sold on buses and from contracts to provide bus service for North Mankato and Minnesota State University.