DEPARTMENT: Parks
FILE TYPE: Consent Action
TITLE
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Authorization To Amend Parks 2024 Capital Improvement Program And Greenway Project Budgets Due To Lower Than Forecasted 2024 Transportation Advancement Account Revenues
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PURPOSE/ACTION REQUESTED
Amend 2024 Dakota County Parks Capital Improvement Program (CIP) and Budget for Greenway projects.
SUMMARY
The 2024 Dakota County Parks CIP utilized Transportation Advancement Account (TAA) and Environmental Legacy Fund (ELF) funding for Greenway engineering and construction projects. In July of 2024, Dakota County staff was informed by Minnesota Department of Transportation (MnDOT) State Aid that official forecasts for the Metro Regional Transportation Sales and Use Tax (SUT), which includes TAA funding, sixteen percent below the revenues originally forecasted, resulting in a $2,365,919 shortfall of available funding for adopted Greenway 2024 projects.
With the mid-year notice of the shortfall, many of the 2024 CIP projects that had approved budgets that included TAA, had been awarded contracts with consultant or construction contractors, or were going to be awarded before the end of 2024. To account for the shortfall in funding, staff proposed allocating $2,538,876 in available TAA funding to specific project budgets and proposed utilizing County SUT funding to make the other project budgets whole.
Because Greenway projects were not originally included in the 2024 - 2034 SUT list, staff was required to add these projects to the eligible County SUT projects list. The transportation SUT is authorized by Minn. Stat. § 297A.993 (The Act). The Act requires the County Board to designate the transportation projects that will use the Transportation SUT following a public hearing. The SUT may be used on more than one project and may be dedicated to a new project by resolution after a public hearing (Attachment: Stat. § 297A.993).
The funds generated by the Transportation SUT have been identified to be used for a list of transportation projects including transit, County highways, regional trails, including County Greenways, and trunk highways. The revised list of projects and accompanying map can be found in Attachment: Draft SUT Project List. A public hearing to receive comments on revisions to the list of projects eligible for County Transportation SUT funds and approve the list of projects for SUT funds was held on December 3, 2024.
RECOMMENDATION
recommendation
Staff recommends the Dakota County Board of Commissioners authorize an amendment to the 2024 Dakota County Parks CIP and greenway project budgets to amend with SUT funds to account for the TAA shortfall.
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EXPLANATION OF FISCAL/FTE IMPACTS
Amending Park Greenway project budgets with available TAA and supplementing others with new SUT funding in the amount of $2,365,919 will make projects whole and match previously authorized project budgets approved as part of the 2024 - 2028 CIP process.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Minn. Stat. § 297A.993 (the Act) authorizes the Dakota County Board to levy up to one-half of one percent sales and use tax and an excise tax of $20 per motor vehicle to fund statutorily defined transportation and transit projects; and
WHEREAS, by Resolution No. 17-364 (June 20, 2017), the Dakota County Board enacted a quarter-cent sales tax and $20 excise tax on new vehicle sales starting October 1, 2017, to fund identified transitway, transit expansion, regional County highway, trail, and trunk highway transportation projects; and
WHEREAS, Dakota County has identified a proposed updated list of transportation projects eligible for Transportation Sales and Use Tax funds based on the needs identified in the Draft 2040 Transportation Plan, and through the development of the Capital Improvement Program; and
WHEREAS, the Act allows the County Board to dedicate the proceeds of the Transportation Sales and Use Tax to a new enumerated project by resolution after a public hearing; and
WHEREAS, the County Board held a public hearing on the date hereof following publication of notice as required by the Act.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners dedicates the proceeds of the Dakota County Transportation Sales and Use Tax to the following projects:
• Greenway Preservation
• Parks - 2024 Trails and Facilities Pavement Preservation
• Greenway Collaborative (Set-Aside) (P50000)
• Vermillion Highlands Greenway and North Creek Greenway 2024 Preliminary Design
• Veterans Memorial Greenway (P00147)
• River to River Greenway - Mendota Heights Valley Park Construction (P30002)
• Vermillion Highlands Greenway - Rosemount CSAH 42 Underpass Construction
; and
BE IT FURTHER RESOLVED, That the 2024 Parks Capital Improvement Program Budget is hereby amended as follows:
Revenue - TAA (Transportation Advancement Account)
Greenway Preservation (2000230) ($37,222)
2024 Trails & Facilities Pavement Pres (2000393) ($301,127)
Greenway Collaborative (1000651) ($500,000)
Vermillion Highlands GW + NCGW (2000233) ($544,942)
Veterans Memorial GW (1000636) ($40,000)
River to River GW (1001487) ($1,101,972)
Vermillion Highlands GW - Rosemount (2000234) ($277,301)
Total Revenue - TAA ($2,802,564)
Revenue - Sales and Use Tax (SUT)
Greenway Preservation (2000230) $37,222
2024 Trails & Facilities Pavement Pres (2000393) $301,127
Greenway Collaborative (1000651) $500,000
Vermillion Highlands GW + NCGW (2000233) $544,942
Veterans Memorial GW (1000636) $40,000
River to River GW (1001487) $1,101,972
Vermillion Highlands GW - Rosemount (2000234) $277,301
Total Revenue - Sales and Use Tax (SUT) $2,802,564
; and
BE IT FURTHER RESOLVED, That the 2024 Sales and Use Tax (SUT) Budget is hereby amended as follows:
Expense
Transfer to Parks Fund ($2,802,564)
Total Expense ($2,802,564)
Revenue
Use of SUT ($2,802,564)
Total Revenue ($2,802,564)
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PREVIOUS BOARD ACTION
23-605; 12/19/23
24-529; 10/29/24
24-557; 12/3/24
ATTACHMENTS
Attachment: Minn. Stat. § 297A993
Attachment: Draft SUT Project List
BOARD GOALS
☒ A Great Place to Live ☒ A Healthy Environment
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Niki Geisler
Author: Tony Wotzka