DEPARTMENT: Transportation
FILE TYPE: Regular Action
TITLE
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Public Hearing To Receive Comments On Eligible Projects For County Transportation Sales And Use Tax Funds
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PURPOSE/ACTION REQUESTED
Conduct a public hearing to receive comments on revisions to the list of transportation projects eligible for County Transportation Sales and Use Tax (SUT) funds and approve list of eligible projects for SUT funds.
SUMMARY
To provide a safe and efficient multi-modal 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 a quarter-cent sales tax and $20 excise tax on new vehicle sales starting October 1, 2017, by Resolution No.17-364 (June 20, 2017). 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 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 2040 Transportation Plan and included in the Draft 2025-2029 County Manager’s Recommended Budget and Capital Improvement Program (CIP). The revised list of projects (Attachment: Draft SUT Project 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 a project to expand the Empire Transportation Maintenance facility.
The Transportation SUT generated approximately $24 million in 2023. Revenues from the SUT over the next ten years would not be sufficient to fund all projects on the SUT-eligible project list without external funding and cost share from partner agencies.
By Resolution No. 24-529 (October 29, 2024), the County Board scheduled a public hearing for December 3, 2024, to receive comments on the proposed list of eligible projects for the Transportation SUT. The public hearing was advertised in the Hastings Journal on November 14, November 21, and November 28, 2024 (Attachment: Public Hearing Notice), with additional information posted on the Dakota County website.
RECOMMENDATION
recommendation
Staff recommends the Dakota County Board of Commissioners conduct the public hearing to receive comments on the revised list of transportation projects eligible for Transportation SUT funds and approve the list of eligible projects after consideration of any public comments received.
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EXPLANATION OF FISCAL/FTE IMPACTS
Adopting the proposed updates to the Transportation SUT-eligible project list ensures that the Draft 2025-2029 CIP is consistent with the SUT project list. 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 and external funding is secured.
☒ 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 2025-2029 Draft 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 the 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:
1. Empire Transportation Maintenance Facility in Empire
2. County State Aid Highway (CSAH) 46 Expansion: Trunk Highway (TH) 3 to TH 52 in Rosemount, Coates, and Empire
3. CSAH 46 Reconstruction: 1,000 feet west of Pleasant Drive to TH 61 in Hastings
4. CSAH 32 Expansion: CSAH 71 to TH 52 in Inver Grove Heights
5. CSAH 42 Management Improvements: Western County line to TH 52 in Burnsville, Apple Valley, and Rosemount
6. CSAH 86 Reconstruction: Western County line to TH 3 in Greenvale, Eureka, and Castle Rock Townships
7. CSAH 88 Reconstruction: County Road (CR) 94 to TH 56 in Randolph Township
8. CSAH 88 Reconstruction: TH 56 to Finch Court in Randolph Township
9. CSAH 91 Reconstruction: Miesville Trail to TH 61 in Miesville and Douglas Township
10. CSAH 54 Reconstruction: Hastings east city limits to CSAH 68 in Ravenna Township
11. CSAH 31 Reconstruction: CSAH 74 to CSAH 50 in Farmington
12. CSAH 47 Reconstruction: TH 3 to CSAH 86 in Waterford, Sciota, and Castle Rock Townships
13. CSAH 47 Reconstruction: CSAH 86 to TH 50 in Castle Rock Township, Hampton Township, and Hampton
14. CSAH 60 Expansion: East of CSAH 50 to Ipava Avenue in Lakeville
15. CSAH 74 Reconstruction: CSAH 31 to Honeysuckle Lane in Farmington
16. TH 3 Safety and Mobility Improvements: 55th Street to TH 55 in Inver Grove Heights
17. TH 3 Safety and Mobility Improvements: TH 149 to downtown Rosemount in Eagan, Inver Grove Heights, and Rosemount
18. TH 55 Safety and Mobility Improvements: TH 52 to General Sieben Drive in Rosemount, Nininger Township, and Hastings
19. I-35/CSAH 50 Interchange in Lakeville
20. I-494 and Future CSAH 63 Interchange in Inver Grove Heights
21. TH 55 and CSAH 28 interchange in Inver Grove Heights
22. TH 13 Corridor Improvements, Grade Separation at Nicollet Avenue in Burnsville
23. Up to $580,000 Annually for Non-Transitway Transit Service Expansion Capital and Operating Costs
24. Lake Marion Greenway in Burnsville, Lakeville, and Farmington
25. Lebanon Hills Greenway in Mendota Heights, Inver Grove Heights, and Eagan
26. Minnesota River Greenway in Burnsville, Eagan, Mendota Heights, Mendota, and Lilydale
27. Mississippi River Greenway in Hastings, Nininger, Rosemount, Inver Grove Heights, and South St. Paul
28. North Creek Greenway in Eagan, Apple Valley, Lakeville, Farmington, and Empire
29. River to River Greenway in Mendota Heights, West St. Paul, and South St. Paul
30. Rosemount Greenway in Eagan and Rosemount
31. Vermillion Highlands Greenway in Rosemount and Empire
32. Vermillion River Greenway in Farmington, Empire, and Hastings
33. Veterans Memorial Greenway in Eagan and Inver Grove Heights
34. Big Rivers Regional Trail in Eagan, Mendota Heights, Mendota, and Lilydale
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PREVIOUS BOARD ACTION
17-364; 06/20/17
24-529; 10/29/24
ATTACHMENTS
Attachment: Stat. § 297A.993
Attachment: Draft SUT Project List
Attachment: Public Hearing Notice
BOARD GOALS
☒ A Great Place to Live ☐ A Healthy Environment
☒ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Laberee
Author: Gina Mitteco