DEPARTMENT: Transportation
FILE TYPE: Regular Action
TITLE
title
Approval Of 2027 Transportation Sales and Use Tax Funds Eligible Project List
end
RESOLUTION
body
WHEREAS, Minn. Stat. § 297A.993 (the Act) authorizes the Dakota County Board to levy up to 0.5% 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 vehicle sales starting October 1, 2017, to fund identified
transitway, transit expansion, regional County highway, trail, and trunk highway transportation
projects; and
WHEREAS, staff has proposed an updated list of transportation projects eligible
for Transportation Sales and Use Tax funds based on the needs identified in the Dakota County 2040
Transportation Plan (July 2021) and through the development of the Draft 2027-2031 Transportation Capital Improvement Program; and
WHEREAS, Board approval of the 2027 Transportation Sales and Use Tax funds eligible project list will allow for a public hearing to be scheduled for December 1, 2026; 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, staff recommends approval of the 2027 Transportation Sales and Use Tax funds eligible project list.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby approves the presented 2027 Transportation Sales and Use Tax funds eligible project list and authorizes staff to proceed with scheduling the public hearing.
end
BACKGROUND
To provide a safe and efficient multimodal transportation system, Dakota County identifies priority transportation projects needed to improve safety and mobility. To provide adequate funding for priority transportation projects, Dakota County enacted the sales and use tax (SUT) 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 transportation maintenance facilities, transit, County highways, regional trails, and trunk highways. The proposed list of eligible projects requires an update to represent projected future transportation system needs identified in the Dakota County 2040 Transportation Plan (July 2021) and included in the Draft 2027-2031 Capital Improvement Program (CIP). The revised list of projects (Attachment: 2027 Transportation SUT Eligible List) includes the following changes:
• Eliminating projects that have since been completed.
• Updating total project cost estimates and descriptions where new information is available.
• Adding County highway and regional trail projects that were identified as priorities in development of the Draft CIP.
• Adding qualifying set asides to replace use of County Funds.
• Include trunk highway projects that have impact on county roads requiring cost share.
RECOMMENDATION
recommendation
Staff recommends approval of the 2027 Transportation Sales and Use Tax funds eligible project list.
end
FINANCIAL AND STAFFING IMPACTS
Approval of the 2027 Transportation Sales and Use Tax funds eligible project list confirms the Draft 2027-2031 CIP’s use of funds and allows projects in the 2027 budget year to proceed. Not all projects on the SUT-eligible project list are included in the five-year CIP. Projects on the list will be added to future CIPs as project development advances.
The estimated 2026 revenue received from the Transportation Sales and Use Tax is $26.4M and staff anticipate 3.9% growth in revenue for 2027. No additional FTEs are required based on the approval of the eligible project list.
PREVIOUS BOARD ACTION
17-364; 06/20/17
ATTACHMENTS
Attachment: Minn. Stat. § 297A.993
Attachment: 2027 Transportation SUT Eligible List
Attachment: Presentation Slides
CONTACTS
Department Director: Erin Laberee
Author: Jake Chapek