Committee tables 2027 capital cost-allocation plan for further vetting by Morehead

Jordan Smith, MAPA assistant transit director, presented a capital project cost-allocation methodology May 20 that would apportion the typical 20% local share across participating entities based on service metrics and a three-year rolling average. Jordan said the process smooths year-to-year shifts and that very large projects would be handled by separate agreements.

Morehead finance director Jennica Flanigan asked whether the FTA had been consulted about the allocation approach; Jordan said he had contacted FTA and was told local jurisdictions decide how to share local-cost responsibility. Flanigan said Morehead needed more time to integrate the five-year capital forecast into the city’s long-term review and cash-flow analysis and requested that the allocation be specified in the Joint Powers Agreement.

After discussion a motion to table consideration of the capital allocation plan was made and seconded; the motion carried by voice vote. Jennica said she expected to bring a revised package back in June or, more likely, July or August after legal review and partner input.

What it means: The proposed allocation would shift local shares gradually as service levels change and was designed to show cumulative local need (staff noted roughly $600,000 per year local need for Fargo alone under the model). Tabbing the item gives Morehead and other partners time to vet revenue splits, asset-sale proceeds and JPA language before approval.

Next steps: Staff will return with refinements and supporting documentation at a future committee meeting; Jennica asked that any allocation language be folded into the permanent JPA when it is finalized.