County agrees to pursue concept of federal‑dollar exchange with Wabasha County

Goodhue County public works staff on Dec. 16 asked the board for conceptual approval to pursue a funding exchange with Wabasha County that would swap an anticipated $1.5 million in Wabasha federal construction dollars (FY2028) for an equivalent amount of Goodhue County local funds.

Staff said Goodhue County itself is already programmed to receive about $4.65 million in federal funds for a separate project and that an exchange is a common mechanism in District 6 to reduce the administrative cost and complexity of federal projects. The transaction would require submittal of fund‑exchange applications to MnDOT’s district state‑aid engineer and consideration by the area transportation partnership (ATP), followed by a formal funding‑exchange agreement and approvals by both county boards.

Some commissioners questioned the local benefit, noting the exchange primarily benefits Wabasha County. Staff responded that Goodhue County’s project would not be substantially impacted and that the regional trade can free up local resources for other projects. The board voted to direct staff to proceed with concept approval and next steps with MnDOT/ATP.

Staff emphasized there is no guarantee the exchange will be approved by MnDOT or the ATP; it is a recommended next step to seek regional approval and formalize an agreement if the process advances.