Muskegon commissioners weigh smaller regional transit authority as neighbors opt out

Deputy City Manager Leanne updated the Muskegon City Commission on Monday on ongoing work to form a Regional Transit Authority after several neighboring communities signaled they would not join the full proposed district.

Leanne said the city approved articles of incorporation last October to join a regional authority and that Roosevelt Park and Norton Shores have since hesitated; Norton Shores did not take a vote. She said the current discussion is whether to form the authority with fewer members — potentially only Muskegon City and Muskegon Heights — and asked the commission for feedback.

The discussion matters because an authority could be granted taxing power and levy a millage across its jurisdiction to fund operations, Leanne said. "One of the reasons for going forward with an authority is that it gives us the power to, put forth to have taxing authority. So, one of the goals would be that we would have a millage," she said. She emphasized that any millage would apply only inside the authority’s jurisdiction and that the authority could also contract with nonmembers for service.

Muskegon County Administrator Mark Isomark told commissioners the county supports working with the cities if they choose to move forward and would assist with legal and administrative setup. Jim, a representative of the Muskegon Area Transit System, described the change as primarily a governance shift: "The point of it is it becomes a governance change to where there's a different group making decisions about transportation or public transportation in the community," he said.

Commissioners pressed staff on what would change immediately and who would bear costs. Leanne said immediate service would not change; changes would follow once an authority adopted bylaws, budgets and service plans. She and others said forming an authority would allow the group to consider a millage to provide the local match for federal funds that the region currently lacks.

Commissioners raised equity and fairness concerns about a two-city authority. Commissioner Keoghel asked whether a millage for an authority of just Muskegon and Muskegon Heights would fall solely on those cities' residents; staff said that is the likely outcome because taxing power cannot extend beyond the authority boundary. Commission members noted both cities already carry relatively high millage rates and that many destinations served by transit — grocery stores, employers and services — lie outside the two cities’ borders.

On operational details, staff and transit representatives said: - Members of an authority would likely receive a different (lower) rate for service than municipalities that contract for service outside the authority. - An authority could include fixed-route service that runs beyond its boundary; routes are negotiated and subject to public hearings. - Federal and state rules require complementary paratransit service within three-quarters of a mile of fixed routes.

Several commissioners, including Mayor [name not specified] and Commissioner Kilgore, said they lean toward maintaining the current county-run model and negotiating clearer, multiyear contracts rather than creating a smaller authority now. "We can't force the unwilling to participate," the mayor said, adding that the city’s staff and county staff could use their time more productively pursuing other improvements if only a small coalition forms.

No formal motion or vote occurred. County staff said they would take the commission’s feedback back to the county board and explore alternative options, including renewed interlocal contracts if an authority is not formed.

Proponents and staff emphasized ongoing options to contract with commercial property owners or other funders to help underwrite specific routes, and they noted that the governance choice would shift who makes decisions about routes and budgets.

The commission did not adopt any formal change to the city’s participation at the meeting; staff will relay the commission’s concerns to the county and return with options.