Item Coversheet

*4.A.6.


Shakopee City Council
January 4, 2022


FROM:William H. Reynolds, City Administrator
TO:Mayor and Council Members
Subject:
Support of County Sales Tax for Transportation Upgrades
Policy/Action Requested:
Adopt Resolution # R2022-008 in support of reauthorizing the Scott County Transportation Sales Tax
Recommendation:
Approve.
Discussion:
The County Board is requesting that each City pass a resolution or letter of support for the Scott County Transportation Sales Tax prior to the County Board’s Public Hearing which is scheduled for February 15th of 2022.
 
The sales tax generates about $10 million annually. Since its enactment in 2015, the revenue has been used to complete major regional projects. The Transportation Sales Tax has leveraged over $100 million in state and federal highway investment in Scott County during the last 7 years, that would not likely have occurred otherwise. This level of investment was driven by Transportation Sales Tax Funds being available to match state and federal grants. It has helped the County to advance important projects that the state would not otherwise have made in the County.
 
• If extended, the transportation sales tax would be focused on finishing the work identified, in the early 2000’s on the principal arterial corridors in the County (TH 169, TH 13, CH 17 & CH 8). There are about 12 projects remaining from these corridors studies and clearly promote regional mobility, safety, and economic development throughout the County.
 
• These regional projects are more likely to leverage regional, state and federal funding. Scott County believes that having the transportation sales tax enables them to compete for funds without risking our investments in the local communities on the county highway system.
 
• They assert that the Scott County State Aid and Levy funds in their Road and Bridge Fund, programmed annually through the Transportation Improvement Program, can remain focused on keeping the highway infrastructure in good repair countywide. Overall with the sale tax covering the larger regional projects, the County can be more responsive with its regular highway investment program; to fund those smaller intersection safety improvements, turn lanes, and trail gap projects that Cities/Townships periodically request to meet local community development needs.

 

• The Scott County Board is considering a 10-year extension of the tax until December 2032. Without action to extend, the tax would end December 31, 2022.
 

Budget Impact:
None.
ATTACHMENTS:
Description
Resolution R2022-008 Scott Co Sales Tax
Sales Tax Information