DEPARTMENT: Transportation
FILE TYPE: Regular Action
TITLE
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Certification Of Maximum Proposed 2027 Dakota County Regional Railroad Authority Property Tax Levy
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RESOLUTION
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WHEREAS, the Dakota County Regional Railroad Authority (Authority) must certify a maximum proposed property tax levy for 2027 by September 22, 2026; and
WHEREAS, the Authority will continue participating in eligible initiatives related to railroads and transitways; and
WHEREAS, the proposed 2027-2031 Authority Capital Improvement Program identifies planned capital projects; and
WHEREAS, the proposed 2027 Authority capital and operating budgets, based on the Dakota County 2040 Transportation Plan, do not require additional property tax levy revenue; and
WHEREAS, the Authority projects that its fund balance will be sufficient to support the proposed 2027-2031 Authority Capital Improvement Program; and
WHEREAS, future Authority capital project and operating costs may be funded by Dakota County Transportation Sales and Use Tax or Transportation Advancement Account revenues when eligible.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Regional Railroad Authority hereby certifies a maximum proposed property tax levy of $0 for taxes payable in 2027.
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BACKGROUND
In 1987, the Authority was formed under Minn. Stat. Ch. 398A, which grants broad powers to the Authority to plan, acquire, construct, and operate transitways and railroads. Within these powers, the Authority has previously invested in the Cedar Avenue METRO Red Line, the METRO Orange Line Phase I, pedestrian and bicycle connections to transitways, and improvements to highway and greenway railroad crossings.
With Resolution No. 25-007 (December 16, 2025), the Authority adopted a 2026 budget retaining a levy of $0. The proposed 2027-2031 Authority Capital Improvement Program (CIP) Budget would use Authority fund balance to support planned projects (Attachment: Levy Scenario). The proposed Authority CIP Budget includes a January 1, 2027 starting fund balance of $4,120,777, a proposed utilization of $2,750,000 across the 5-year program and an ending 2031 fund balance of $2,627,137. Future Authority capital project and operating costs may be funded by the Transportation Sales and Use Tax or Transportation Advancement Account revenues when eligible.
Based on these funding sources, staff proposes a maximum Authority property tax levy of $0 for taxes payable in 2027.
RECOMMENDATION
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Staff recommends that the Authority certify a maximum proposed property tax levy of $0 for taxes payable in 2027, unchanged from the Authority’s 2026 levy.
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FINANCIAL AND STAFFING IMPACTS
The recommended maximum proposed property tax levy is $0 and would generate no property tax revenue for the Authority in 2027. The proposed 2027-2031 Authority Capital Improvement Program Budget would use $2,750,000 of Authority fund balance and eligible Transportation Sales and Use Tax or Transportation Advancement Account revenue. The projected Authority fund balance on December 31, 2031, is $2,627,137. There is no staffing impacts associated with this action.
PREVIOUS BOARD ACTION
25-007; 12/16/25
ATTACHMENTS
Attachment: Levy Scenario
CONTACT
Department Director: Erin Laberee
Author: Jake Chapek