DEPARTMENT: Environmental Resources
FILE TYPE: Regular Action
TITLE
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Certification Of Dakota County Portion Of 2027 Vermillion River Watershed Management Tax District Proposed Tax Levy
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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 April 2026; 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 August 27, 2026, the Vermillion River Watershed Joint Powers Board adopted a proposed budget of $1,991,363, including the use of 2026 fund balance and grant revenues, and recommended that the levy for the Dakota County portion be $1,090,798 and the levy for the Scott County portion be $41,338; and
WHEREAS, by statute, Dakota County must certify a levy on the Watershed Management Tax District by September 15, 2026, to be effective for taxes payable in 2027; and
WHEREAS, the final 2027 levy for the Watershed Management Tax District will be presented to the Dakota County Board of Commissioners in December 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 proposed levy in the amount of $1,090,798 for taxes payable in 2027.
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BACKGROUND
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.
The proposed 2027 levy ($1,132,136) is a 5% increase in the overall levy compared to 2026 ($1,078,225). Changes in levy amounts between the two counties result from apportionment according to tax capacity.
In 2026, activities focused on development and adoption of the 2026-2035 Watershed Management Plan, monitoring water quantity and quality, cost-sharing capital improvement projects and best management practices, educating the public on water resources, implementing a stewardship grant program, and managing the implementation of grant-funded projects. In 2027, the Vermillion River Watershed Joint Powers Organization will continue implementing the 2026-2035 Watershed Management Plan, coordinate with local governments on updates to their comprehensive plans and water-related ordinances, develop and implement projects and programs with partners, evaluate existing programs, and perform regulatory oversight.
RECOMMENDATION
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Staff recommends that Dakota County certify a proposed levy of $1,090,798 for the Dakota County portion of the Vermillion River Watershed Management Tax District for taxes payable in 2027. In December 2026, the final levy will be presented for County Board certification.
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FINANCIAL AND STAFFING IMPACTS
The proposed 2027 levy of $1,090,798 for the Dakota County portion of the Vermillion River Watershed Management Tax District represents a 5% increase from the amount levied in 2026. The impact of this levy on a median-value property within the Dakota County portion of the District (with a value of $392,100 for taxes payable in 2027) is $10.39 in 2027. This also reflects valuation changes and resulting tax shifts among median-value residential homestead properties (Attachment: Vermillion River Watershed Tax District Estimated 2027 Taxes). The Vermillion River Watershed tax appears as a part of the “special taxing district” item on the tax statement.
PREVIOUS BOARD ACTION
02-296; 6/04/02
02-347; 6/25/02
24-623; 12/17/24
ATTACHMENTS
Attachment: Preliminary 2027 VRWJPO Budget
Attachment: Vermillion River Watershed Tax District Estimated 2027 Tax Impact
Attachment: Presentation Slides
CONTACT
Department Director: Nikki Stewart
Author: Travis Thiel