Anoka County regional rail authority approves 2026 budget, will use reserves to cover remaining Northstar debt

The Anoka County Regional Rail Authority unanimously approved its proposed 2026 budget and tax levy and will use reserve funds to pay the remaining debt service tied to the Northstar commuter rail, commissioners voted during a meeting where staff described the authority’s winding-down operations.

Dee Goodman, executive director for Regional Rail Anoka County, told commissioners the 2026 budget “closely resembles last year” and that the primary change is use of reserves to cover debt service. Goodman said the authority expects to finish paying the debt in February 2027 and recommended leaving the current projected balance of $4,800,000 in reserves until that obligation is complete.

The budget figures presented during the meeting compared two line items as 1.813 last year and 1.815 this year; the transcript did not specify the units for those figures. Goodman said the annual fluctuation is driven mainly by changes in the debt service payment and interest. She also said the authority has stopped contributing operating funds from the transit tax because it is no longer paying operating costs for Northstar.

Chair Schulte described the remaining payment as a continuing obligation: “we're sort of gonna be paying for a dead horse,” he said, adding that the county had contributed a large share of Northstar’s capital costs and will fulfill the remaining debt service commitment.

Goodman said the Metropolitan Council has indicated Northstar rail service will be suspended as of January 2026 and replaced by buses. She noted the change alters service frequency: Northstar operated about 40 trips per week, while the replacement buses will run about 349 trips per week, according to comments recorded in the meeting transcript. Goodman said the buses should meet some rider needs and provide additional options such as midday trips.

The meeting record shows a motion to approve the proposed budget and tax levy by Commissioner Gamache, seconded by Commissioner Jepsen. The measure passed on a roll-call vote; Commissioners Brosteau, Reinhardt, Gamache, Schulte, Jepsen, Meissner and Heinrich each recorded “aye.”

Earlier in the meeting the board approved minutes from its Dec. 3 and Jan. 7 statutory and organizational meetings on a motion by Commissioner Gamache and second by Commissioner Breasted. That vote was taken by voice and recorded as passing.

The authority adjourned after the budget vote. Commissioners and staff indicated they will prepare options for the authority’s future once the debt service obligation ends in February 2027.