DEPARTMENT: Physical Development Administration
FILE TYPE: Regular Action
TITLE
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Reaffirmation Of Base Levy And Approval Of 2025 Incremental Levy For Dakota County Community Development Agency
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PURPOSE/ACTION REQUESTED
Reaffirm the base levy to provide ongoing debt service payments for the Dakota County Community Development Agency's (CDA) bond-funded affordable housing developments and approve the 2025 levy increment for the CDA.
SUMMARY
Minn. Stat. ? 383D.41 authorizes the CDA to levy special benefit taxes at the higher of the rates allowable under Statutes ?383D.41, ?469.033, and ?469.107, with approval by the Dakota County Board (County Board). Of the applicable statutes, the highest rate is in Minnesota Statute ?469.033, which states that the current maximum amount the CDA is permitted to levy is .0185 percent of the County Estimated Market Value.
In 1994, the County Board granted the CDA the authority to request levy funds up to the amount permitted by law without subsequent approval from the County (Resolution 94-926). This ongoing authority provides stability for debt service payments required for the outstanding bonds issued to develop CDA-owned and operated affordable senior and workforce housing apartments. Historically, the CDA has sought County Board approval for the levy increment beyond the .0144 percent limit that was in place at the time of Resolution 94-926. The incremental levy is the difference between the maximum permitted by statute (.0185 percent) and the ongoing amount previously authorized by the board (.0144 percent).
For 2025, the CDA is requesting the approval of the incremental levy authority of .0012 percent. The levy rate is the same as 2024. Approval of this levy request applies only to the levy of taxes payable in 2025, and the levy amount is based on the final pay year 2024 Estimated Market Value in the County. The requested incremental levy authority is projected to provide approximately $883,362 for CDA-supported ...
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