Council approves $300,000 stopgap for Service Basin transit after discussion on federal funding loss and longer-term options

The Minot City Council voted unanimously on June 2 to appropriate up to $300,000 to Service Basin Transportation to cover demand-response transit service inside the city for the remainder of 2025.

Council members and staff described the funding as a stopgap measure. Service Basin and city staff told the council that a change to an "urban" designation for federal transit funding made the nonprofit ineligible for the federal operating dollars it previously used to run demand-response services inside Minot. Without alternative support, Service Basin warned that service could be disrupted. Service Basin manager Daryl Francis said the organization delivers tens of thousands of rides a year and that a portion of those riders—many elderly or mobility-limited—would lose access without a local funding solution.

Service Basin supplied an estimate for the remainder of 2025 that the council discussed: the meeting materials cited a $300,000 estimate while a Service Basin memo provided a $261,000 figure. City staff explained that the appropriation would be a "not to exceed" authorization drawn from reserves and that any unused portion would revert to reserves at year-end. The council and staff said they expect a more detailed contract or funding agreement to be developed and returned to council for approval; staff also said 2026 funding would be addressed in the 2026 budget process.

Council members pressed for more data and a clearer reimbursement mechanism. Several asked whether the city would reimburse per ride or via a monthly/flat amount; Service Basin said its detailed accounting would take several months of new operational data to finalize and that the nonprofit was pursuing additional state and federal funding streams. Multiple council members said they supported the appropriation to avoid a service interruption while urging staff and Service Basin to produce more precise estimates for the 2026 budget.

Vote and details

Motion: Approve appropriation of up to $300,000 to Service Basin Transportation for demand-response service inside Minot for the remainder of 2025. Mover: Alderman Olsen. Second: Alderman Fuller. Outcome: Passed unanimously.

Context and next steps

City staff repeated that the appropriation was a stopgap; the City and Service Basin will draft a contract or reimbursement agreement that spells out reporting and invoicing, and the city will evaluate sustainable funding options during the 2026 budget process. Staff and Service Basin also noted a larger transit development plan will study long-term governance and funding for urban transit in the region.

Quotes

"This is a Band-Aid for the next 6 months of this year," a city official said, describing the funding as temporary while longer-term funding is developed.

"We do over 90,000 rides a year in the counties to inner city ... we're asking is not a contribution, but your share," Service Basin manager Daryl Francis told the council, describing the mix of revenue sources his organization uses.

Ending

Council appropriated the funds to avoid a service gap; staff and Service Basin will return with more detailed accounting and a proposed contract to define reimbursement and reporting for the funding going forward.