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MINNEAPOLIMEDIA NEWS | Anoka County Retires Northstar Construction Debt but Keeps $5 Million Rail Reserve for Future Transit Projects
ANOKA, MN (September 21, 2026). Anoka County has made its final payment on the debt used to build the Northstar commuter rail line, closing the financial books on a service that ended in January while leaving county officials with approximately $5 million that could be redirected toward future transportation projects.
The Anoka County Regional Rail Authority unanimously approved a preliminary property-tax levy of zero and a proposed 2027 budget of $278,795. It is the fourth consecutive year the authority has proposed collecting no property taxes.
The seven members of the Anoka County Board also serve as the rail authority’s governing board.
Unlike previous budgets, the 2027 proposal contains no payment toward the bonds issued for Northstar’s construction. The authority had been paying approximately $1.463 million annually toward that debt. Its final payment was included in the 2026 budget.
The remaining 2027 expenses, including staff time, office space, supplies and technology services, would be paid from the authority’s existing reserves. Final action on the budget and levy is expected in December.
The larger question is what Anoka County should do with the approximately $5 million remaining in the rail authority’s fund balance.
Rail Authority Chair Scott Schulte argued against dissolving the organization, saying its remaining money could support transportation improvements involving rail corridors, bridges and pedestrian crossings.
One potential project is an estimated $500,000 improvement to the pedestrian walkway at the Crooked Lake Boulevard railroad crossing in Coon Rapids. County transportation officials are also examining other eligible projects.
Deputy County Administrator Dee Guthman, who serves as the authority’s executive director, said maintaining the organization could preserve the county’s ability to invest in future rail-related infrastructure. State law restricts how rail-authority money can be used.
Commissioner Mandy Meisner asked whether the reserves could help Fridley maintain the pedestrian underpass at the former Northstar station. Guthman said the authority could not finance that work because the city owns the property and the permitted uses of rail-authority funding are narrowly defined.
County officials said the former Northstar stations would not be removed because they were constructed on property owned by BNSF Railway.
From Rail Service to Replacement Buses
Northstar began operating in 2009 between Big Lake and downtown Minneapolis, with stations in Elk River, Ramsey, Anoka, Coon Rapids and Fridley.
The line averaged approximately 2,660 weekday passenger trips before the COVID-19 pandemic. Average weekday ridership had fallen to about 430 trips by 2024, leaving taxpayers responsible for increasingly high subsidies per passenger.
Metro Transit discontinued rail service after the first weekend of January 2026. Replacement bus routes now connect several former station communities with Minneapolis.
Route 888 serves Ramsey, Anoka and Coon Rapids before continuing to downtown Minneapolis. Route 852 operates between Fridley and Minneapolis.
The county could also retain its rail authority in case the proposed Northern Lights Express passenger service between the Twin Cities and Duluth advances. Such a project could create future opportunities requiring local participation or supporting infrastructure.
The zero levy means property owners would not receive a dedicated rail-authority charge in 2027. It does not, however, settle the policy question surrounding the remaining reserves.
The final Northstar bond payment marks the end of a substantial county obligation. What happens to the $5 million left behind will determine whether the rail authority becomes a vehicle for new transportation investments or remains an administrative body managing the remnants of a discontinued commuter line.
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