Middletown hears Butler County RTA proposal to take grantee role for transit; local-match obligation highlighted

The Middletown City Council on March 4 heard a presentation from the Butler County Regional Transit Authority on a proposed memorandum of understanding that would make BCRTA the federal and state grantee for the city’s transit program, shifting many compliance and operational responsibilities off city staff.

Council members were told the change would reduce duplicate audits and reporting required by the Federal Transit Administration and the Ohio Department of Transportation and could free city staff time. The RTA representative emphasized that the city’s obligation to provide a local match would remain if the state’s ODOT local funding program was reduced or discontinued.

“The way the city receives that match right now is through a funding program that ODOT or the state of Ohio provides,” Matt Dukovich of the Butler County Regional Transit Authority said during the presentation. He said the ODOT match program is discretionary and must be competed for each year. “It is entirely possible that… the city's contribution to transit would be 0,” Dukovich added, “but that ODOT local funding program is discretionary. We have to compete for it every year.”

Nut graf: The proposed change matters because it affects federal and state compliance, who manages the city’s transit assets and whether the city would need to provide general-fund dollars if state local-match support is reduced. Council members pressed staff for details about near-term costs and governance if the RTA becomes grantee.

Dukovich said buses would remain free to riders under the RTA’s current plan and noted the city previously paid roughly $3.7 million in 2024 that was largely federal pass-through funding. He described operational benefits: centralized technical capacity at the RTA, elimination of duplicate audits, and RTA responsibility for maintaining federally funded improvements such as the bus station. “If ODOT ever stops providing that funding, we would need the city to put that money in,” Dukovich said. He also noted the MOU contains provisions for a low-cost ground lease if the city retains ownership of transit property and for termination terms if the parties later reverse the arrangement.

Council members asked whether Middletown would have a seat on the RTA board; Dukovich said Butler County Commissioners appoint the RTA trustees and municipalities do not automatically sit on the RTA board, though a municipal recommendation letter is commonly considered when a trustee opening occurs.

Acting City Manager Ashley Combs introduced the item and answered procedural questions during the presentation. No vote was taken at the March 4 meeting; staff presented the MOU and answered questions so council could consider next steps.

Ending: Council members did not vote on the MOU at the March 4 meeting. Dukovich said final transfer of grantee status would require approval from the Federal Transit Administration and ODOT once paperwork is complete. Council staff said they would return with any recommendation and final contract language if council requests follow-up action.