Greater Minnesota Transportation Sales And Use Tax Schedule Public Hearing June 6, 2017

Transportation Sales and Use Tax Background County Transit Improvement Board (CTIB) enabled by 2008 Metropolitan Area Transportation Tax Legislation (Minn. Stat. 297A.992) One-quarter percent sales and use tax Excise tax of $20 per motor vehicle Anoka, Dakota, Hennepin, Ramsey and Washington Counties Capital and Operating funds for regional transitways Cedar Avenue METRO Red Line BRT I 35W Metro Orange Line BRT

Dakota County Withdrawal from CTIB County voted to withdraw from CTIB in June, 2016 Future rate of return to Dakota County of less than 40% January 1, 2019 is effective date of withdrawal per CTIB Joint Powers Agreement (JPA) Recently, CTIB considering voluntary dissolution as of June 30, 2017 through termination of their JPA Increased cost for program of projects Allows counties to access the Greater MN Transportation Tax up to one-half percent rather than one-quarter percent After effective date of withdrawal, or CTIB dissolution, eligible to enact Greater Minnesota Transportation Sales and Use Tax 333

Greater Minnesota Transportation Sales and Use Tax Background: Local Transportation Sales Tax 32 counties with Transportation Sales Tax: 16 with Wheelage 4 CTIB Olmsted is DMC 16 Sales Tax only 1 CTIB Carver Passed in May

Transportation Sales and Use Tax Background MN Statutes 297A.993 for counties outside the Metropolitan Transportation Area (CTIB): Up to one-half of one percent sales and use tax Excise tax of $20 per motor vehicle $16.6 million at one-quarter percent (2018) Transportation or Transit projects or improvements: Transportation project or improvement capital costs Transit project or improvement capital and operating costs Safe routes to school program capital costs Transit operating costs Enacted by Board resolution following public hearing

Rationale for Consideration of a Transportation Sales and Use Tax Significant unmet County transportation needs with existing revenue sources Can be used for a wide array of transit, transitway and highway transportation purposes Not just transitways Dakota County transit runs on highways No change in current Dakota County sales tax rate if enacted at one-quarter percent May allow for offset of other County taxes currently used for transportation purpose All revenues returned to Dakota County for Transportation purposes

Transportation Sales and Use Tax Background Board Workshop February 14, 2017: County Highway, Trunk Highway, Transitway and Transit needs Public Hearing, March 7, 2014 Enacted one-quarter percent Greater Minnesota Sales and Use Tax contingent upon exit from CTIB, March 21, 2017: Dakota County Transportation Sales and Use Tax Transportation Improvement Program-Eligible Projects Department of Revenue requirement that CTIB counties hold new hearings and actions to enact Greater Minnesota Sales and Use Tax: Consistent CTIB dissolution date of September 30, 2017 Assignment of CTIB grant obligations Metropolitan Council assumption of METRO Red Line Cedar Avenue BRT operating costs

Dakota County Transportation Sales and Use Tax Transportation Improvement Program-Eligible Projects REGIONAL TRANSITWAY CAPITAL AND OPERATION COSTS METRO Red Line Cedar Avenue Bus Rapid Transit, capital costs METRO Orange Line I-35 Bus Rapid Transit, capital and operating costs METRO Orange Line Extension I-35 Bus Rapid Transit, capital and operating costs Robert Street Transitway Locally Preferred Alternative Study Agreements assigned by CTIB to, and assumed by, Dakota County 2017 Operating Grant Agreement for METRO Red Line Service 2017 Operating Grant Agreement for Cedar Avenue Express Service 2017 Operating Grant Agreement for the I-35W South Express Service Through a separate agreement with the Metropolitan Council, 14% of the remaining balance of the 2017 Capital Grant Agreement for I 35W South BRT Project (METRO Orange Line) TRANSIT SERVICE EXPANSION CAPITAL AND OPERATING COSTS Up to $1 million annually for non-transitway transit capital and operating costs

Dakota County Transportation Sales and Use Tax Transportation Improvement Program-Eligible Projects REGIONAL COUNTY HIGHWAY PROJECTS CSAH 70 expansion from I-35 to CSAH 23 in Lakeville CSAH 46 expansion from TH 3 to TH 52 in Rosemount and Empire Township CSAH 42 expansion from I-35E east to city border in Burnsville REGIONAL FEDERAL AID TRAIL PROJECTS Up to $1 million annually to match federal aid transportation funds received for regional trails TRUNK HIGHWAY PROJECTS TH 77 Managed lane/MnPASS expansion in Apple Valley and Eagan TH 3 expansion from 55th Street to TH 55 in Inver Grove Heights TH 3 expansion from TH 149 to Rosemount in Eagan, Inver Grove Heights, and Rosemount TH 55 expansion, CSAH 42 to Hastings in Rosemount and Nininger Township TH 52 and CSAH 66 interchange in Vermillion Township I-35 MnPASS extension to CSAH 50 in Burnsville and Lakeville I-35 and CSAH 50 interchange reconstruction in Lakeville

Transportation Sales and Use Tax Next Steps June 20, 2017 County Board Meeting: Hold Public Hearing on enactment of the Greater Minnesota Sales and Use Tax Consider approval of the Resolution for dissolution of CTIB Consider the Dakota County Transportation Sales and Use Tax Transportation Improvement Program and enactment of the Greater Minnesota Sales and User Tax Tax collections will begin October 1, 2017 Estimate $16.6 million in 2018

Comments or Questions? Resolution: To schedule a public hearing for 9:00 a.m. on June 20, 2017 to receive comments on a Transportation Sales and Use Tax of 0.25 percent and an Excise Tax of $20 on vehicle purchases in Dakota County Comments or Questions?