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County extends local option sales tax, updates five‑year plan and offers MnDOT feasibility support for Highway 23

5120507 · July 2, 2025
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Summary

The Pine County Board continued its local option transportation sales tax, added three county road projects to the five‑year transportation improvement plan and authorized a letter supporting a MnDOT feasibility study for Trunk Highway 23 from Foley to I‑35.

Pine County commissioners voted to continue the county’s local option sales tax for transportation and to amend the county’s five‑year Transportation Improvement Plan (TIP) by adding three road projects, then authorized a letter of support to MnDOT asking for a feasibility study of Trunk Highway 23 between Foley and Interstate 35.

County staff told the board that collections from the county’s local option sales tax have exceeded initial projections. “We’re collecting about 1.7, 1,800,000 a year,” a county presenter said, and at current receipts the program could continue for about 10 years rather than the originally estimated 15. Staff emphasized they do not seek to change the tax rate or total collection amount now but want to add projects to the approved list and continue pursuing state and federal grants to supplement county funds.

The board added the following projects to the TIP for potential use of sales tax funds: County Road 124 (one mile northeast of Pine City), County Road 151 (a four‑mile north–south stretch west of Rutledge), and County Road 172 (a three‑mile east–west segment east of Hinkley to complete a 10‑ton loop from Trunk Highway 48). Assistant county engineer Aaron Gunderson reviewed the TIP, which programs roughly 127 miles of resurfacing and bridge work over five years and is organized to capture contractor economies of scale.

Commissioners stressed continued pursuit of outside funds to stretch county dollars. The board approved a resolution continuing the local option sales tax and later approved the five‑year TIP by motion.

Separately, the board unanimously authorized a letter of support for a MnDOT feasibility study of Trunk Highway 23 from Foley to I‑35 after commissioners and staff noted crash history and truck traffic on that corridor. Commissioners who spoke described the route as a regional freight and safety corridor and urged MnDOT to study options ranging from intersection improvements to larger corridor upgrades.

Board members also discussed how sales tax funds have been used to supplement bridge projects and noted that certain state aid bridges can receive 50% bridge‑bond funding while some local projects can be bonded at higher rates; county roads in the TIP are typically funded from local sales tax proceeds while county state‑aid routes are funded from state aid. Members approved the TIP and the sales tax continuation motion, and later approved the chair to sign the Highway 23 letter of support.

The actions keep county transportation planning flexible while continuing to prioritize paving and bridge work; staff said specific project lettings will depend on available matching grants, material costs and contractor availability.

Clarifying details recorded included the sales tax collection rate (~$1.7–1.8 million/year), the original authorized collection target (about $17.4 million over a prior estimate), the three projects added (CR 124, CR 151, CR 172), and the TIP’s approximate five‑year scope (about 127 miles of resurfacing plus bridges).