DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
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Scheduling Of Public Hearing To Receive Comments On Eligible Projects For County Transportation Sales And Use Tax Funds
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RESOLUTION
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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, Dakota County has identified a proposed updated list of transportation projects eligible for Transportation Sales and Use Tax funds consistent with the needs identified in the Dakota County 2040 Transportation Plan (July 2021); 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.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby schedules a public hearing for December 1, 2026, at 9:00 a.m. in the Boardroom, Dakota County Administration Center, 1590 Highway 55, Hastings, Minnesota, for the purpose of receiving comments on an updated list of eligible projects for County Transportation Sales and Use Tax Funds.
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BACKGROUND
To provide a safe and efficient multimodal transportation system, Dakota County identifies priority transportation projects needed to improve safety and mobility. The Transportation Sales and Use Tax (SUT) may be used on more than one project and may be dedicated to a new project by resolution after a public hearing (Attachment: Minn. Stat. § 297A.993).
The funds generated by the Transportation SUT have been identified for transportation projects, including transportation maintenance facilities, transit, County highways, regional trails, and trunk highways. The proposed list of eligible projects needs to be updated to reflect 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.
• Including trunk highway projects that have an impact on County roads requiring cost share.
The public hearing will be advertised in the Dakota County Tribune for at least 10 days before the hearing. The proposed list of projects will be posted on the Dakota County website for review.
RECOMMENDATION
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Staff recommends that the County Board schedule a public hearing at its meeting on December 1, 2026, at 9:00 a.m. to receive comments.
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FINANCIAL AND STAFFING IMPACTS
Approval of the 2027 Transportation SUT 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 may be added to future CIPs as project development advances.
The estimated 2026 revenue received from the Transportation SUT is $26,400,000 and staff anticipate 3.9% growth in revenue for 2027. No additional full-time equivalents (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
CONTACTS
Department Director: Erin Laberee
Author: Jake Chapek