DEPARTMENT: Environmental Resources
FILE TYPE: Consent Action
TITLE
title
Certification Of Dakota County Portion Of 2026 Vermillion River Watershed Management Tax District Tax Levy
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PURPOSE/ACTION REQUESTED
Certify the proposed 2026 levy of $1,037,693 for the Dakota County portion of the Vermillion River Watershed Management Tax District.
SUMMARY
By Resolution No. 02-347 (June 25, 2002), and amended by Resolution No. 24-623 (December 17, 2024), Dakota County executed a joint powers agreement (JPA) with Scott County to govern the Vermillion River Watershed. The JPA establishes a Joint Powers Board consisting of two commissioners from Dakota County and one commissioner from Scott County. Dakota County provides the primary staff support to the watershed organization with proportionate assistance from Scott County staff. The JPA also provides that by September 1 of each year, the Joint Powers Board will adopt a draft budget for the following calendar year and recommend a levy to each county for its share of costs for watershed organization activities.
The Dakota County Board of Commissioners established the Vermillion River Watershed Management Tax District (Ordinance No. 127) to fund Dakota County’s portion of the watershed organization’s activities by Resolution No. 02-296 (June 4, 2002). Adopting a levy for the Watershed Management Tax District enables the County to tax property owners within the Dakota County portion of the watershed to fund services provided to them by the watershed organization rather than funding the services through the County’s general levy. By Resolution No. 25-428 (September 9, 2025), the Dakota County Board of Commissioners approved the proposed levy on the Watershed Management Tax District for taxes payable in 2026. By statute the proposed levy must be certified by September 15, 2025. Dakota County’s 2025 levy for the Watershed Management Tax District was $990,832; Scott County’s levy was $36,050.
Proposed 2026 Levy
On December 4, 2025, the Vermillion River Watershed Joint Powers Board adopted a final 2026 budget of $2,848,648 (Attachment: VRWJPO 2026 Budget) and recommended a proposed levy of $1,037,693 for the Dakota County portion of the Tax District (the proposed Scott County levy for 2026 is $40,532). The proposed 2026 levy ($1,078,225) is a five percent increase in the overall levy compared to 2025 ($1,026,882). Changes in levy amounts between the two counties result from apportionment according to tax capacity.
In 2025, activities focused on monitoring water quantity and quality, cost-sharing capital improvement projects and best management practices, educating the public on water resources, managing the implementation of grant-funded projects, implementing a permit program in one township, and development of the 2026-2035 Watershed Management Plan. In 2026, the Vermillion River Watershed Joint Powers Organization will adopt and begin implementing the 2026-2035 Watershed Management Plan and provide continued coordination with local governments in project development and implementation, program evaluation, and regulatory oversight.
RECOMMENDATION
recommendation
It is recommended that Dakota County certify a levy of $1,037,693 for the Dakota County portion of the Vermillion River Watershed Management Tax District for taxes payable in 2026.
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EXPLANATION OF FISCAL/FTE IMPACTS
The proposed 2026 levy of $1,037,693 for the Dakota County portion of the Vermillion River Watershed Management Tax District represents a five percent increase from the amount levied in 2025. The impact of this levy on a median-value property within the Dakota County portion of the District (with a value of $384,800 for taxes payable in 2026) is $10.06 in 2026. This also reflects valuation changes and resulting tax shifts among median-value residential homestead properties (Attachment: Vermillion River Watershed Tax District Estimated 2026 Taxes). The Vermillion River Watershed tax appears as a part of the “special taxing district” item on the tax statement.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, by Resolution No. 02-347 (June 25, 2002), and amended by Resolution No. 24-623 (December 17, 2024), the Dakota County Board of Commissioners executed a joint powers agreement between Dakota County and Scott County to govern the Vermillion River Watershed; and
WHEREAS, the joint powers agreement establishes a Joint Powers Board consisting of two commissioners from Dakota County and one from Scott County; and
WHEREAS, funding is needed for Dakota County’s share of costs associated with managing the Vermillion River Watershed; and
WHEREAS, by Resolution No. 02-296 (June 4, 2002), the Dakota County Board of Commissioners established the Vermillion River Watershed Management Tax District through Ordinance No. 127 to fund Dakota County’s share of costs associated with managing the Vermillion River Watershed; and
WHEREAS, approval and adoption of the Watershed Management Plan, as required by Minn. Stat. Ch. 103B, occurred in June 2016; and
WHEREAS, the joint powers agreement states that the Vermillion River Watershed Joint Powers Board will adopt a budget and recommend a levy for the portion of the Watershed Management Tax District in each county by September 1 of each year; and
WHEREAS, on December 4, 2025, the Vermillion River Watershed Joint Powers Board adopted a proposed budget of $2,848,648, including the use of 2025 fund balance and grant revenues, and recommended that the levy for the Dakota County portion be $1,037,693 and the levy for the Scott County portion be $40,532; and
WHEREAS, Dakota County must certify a levy on the Watershed Management Tax District by December 28, 2025, to be effective for taxes payable in 2026; and
WHEREAS, Dakota County certified a proposed levy of $1,037,693 for the Vermillion River Watershed Management Tax District on September 9, 2025, to be effective for taxes payable in 2026.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby certifies the Dakota County portion of the Vermillion River Watershed Management Tax District levy in the amount of $1,037,693 for taxes payable in 2026.
PREVIOUS BOARD ACTION
02-296; 6/04/02
02-347; 6/25/02
24-623; 12/17/24
ATTACHMENTS
Attachment: VRWJPO 2026 Budget
Attachment: Vermillion River Watershed Tax District Estimated 2026 Taxes
BOARD GOALS
☐ Thriving People ☒ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Nikki Stewart
Author: Travis Thiel