Anoka County, Metro Transit squabble about Northstar funding keeps rolling along

Anoka County and Metro Transit remain at odds over funding for the Northstar commuter rail line, and there appears to be no end in sight to the long-running disagreement.

The Anoka County Finance and Capital Improvements Committee recently denied Metro Transit's request that the county pay $4.69 million to cover its share of 2023 operating expenses for the line, which runs from downtown Minneapolis to Big Lake and includes four stops in Anoka County.

The County Board did not act on the committee's recommendation.

"We honestly need to get together and talk this through," County Board Chair Matt Look said at a board meeting in March. "We have to determine what the best course of action is for this line. Is it buses? Is it increasing trips?"

Metro Transit and Anoka County have been battling over payments for the past three years. The county says it has been overbilled for service after ridership fell dramatically during the COVID-19 pandemic and Metro Transit cut the number of weekday trips. The agency also eliminated weekend trips and special event trains, such as those for Vikings and Twins games.

With fewer trains running, the county contended it should pay less. The county successfully reduced its bill in 2020 from $6.1 million to $4.9 million when service cuts took effect. In 2021, Metro Transit asked for $2.97 million and the county paid $1.95 million. Last year, Metro Transit billed the county $4.55 million and the county paid the same $1.95 million, a document distributed to county commissioners showed.

The amount the county paid reflects a 77% reduction in service, Look said. He called the line "an underperforming asset."

With fewer trains running and more people working from home, "the whole dynamic of what commuter rail looks like needs to be addressed now," Look said. "There are lots of conversations being had, and this is one more that needs to happen before we approve an expenditure of this magnitude for a line that is not servicing our area. As policymakers, we have to take a hard look at this."

From 2011 through 2019, Northstar carried between 2,200 and 3,300 weekday riders during the morning and evening peak commute hours of service. With the onset of the pandemic in 2020, ridership fell to just over 60 weekday riders in April 2020, according to the Metropolitan Council, which provides the service.

Passengers took 152,456 rides on Northstar in 2020. That sank to 50,433 in 2021 and ticked up to 77,000 last year, according to Metro Transit. The train provided about 21,000 rides during the first three months of 2023, the agency said.

In January, Metro Transit Finance Director Ed Petrie sent a letter to Anoka County Deputy Administrator Dee Guthman, who also is executive director of the county's Regional Rail Authority, stating that the county payments for the last half of 2022 were past due. The letter also said Metro Transit would not be able to increase service to four weekday trips in each direction each day or bring back special event trains without payment.

"We cannot plan for increased levels of weekday or special event services until we have assurances that Anoka County will provide timely payment for their proportionate share of Northstar operating costs," the letter said.

Two other counties that cover Northstar operating expenses — Hennepin and Sherburne — have paid their bills, Metro Transit spokesman Drew Kerr said.

Anoka County Commissioner Jeff Reinert said the impasse is a "really unfortunate situation," but in 2022 Northstar rides were subsidized at about $150 per passenger, according to Met Council figures. By withholding payment, the county will save taxpayers $3 million this year, Reinert said.

"It is not working," he said at the March 28 board meeting. "We do need to sit around and talk about how to solve the problem. Until that happens, we might be at a status quo situation."

Met Council Chair Charlie Zelle met with the Anoka County Board this month, Kerr said. With no immediate resolution in sight, Metro Transit will continue to operate at reduced service levels, he said.

"We welcome continued discussion with Anoka County and all our Northstar funding partners," Kerr said.