Scott County details sales tax-funded transportation projects, timelines and funding gaps

Lisa Fries, Scott County transportation services director, briefed the Board of Commissioners on the county's transportation sales tax program and the status of projects financed or leveraged with those funds.

Fries told commissioners the county initially adopted the half-percent sales and use tax in May 2015 after a change in state law allowed counties outside CTIB to levy the tax and said the county's goal was to "focus in on mobility and safety projects" and to leverage state and federal grants. "One of the first projects we actually funded with the sales tax is that 41 and 169 project," Fries said, tying the tax to accelerated delivery of that work.

The update listed 10 projects that are either completed or underway. Fries said five projects are fully complete and several others are in final right-of-way or closeout stages. She highlighted recent ribbon cuttings for the 59/169 interchange and the quadrant interchange at 169 and Bluff Drive; another ribbon cutting is scheduled later this month for the Bluff Drive project.

Why it matters: the sales tax has been a primary local funding tool for multi-jurisdictional projects that MnDOT and local cities did not place at the front of their schedules. Fries said the county has used the sales tax to accelerate large regional projects and to leverage additional dollars from MnDOT and federal grants.

Key details and funding numbers

- Fries described the 41/169 project as a roughly $72,000,000 effort the county helped move forward faster than it otherwise would have under regular state scheduling. "If we would not have had the sales tax, it would have been 8 to 10 years," she said.

- The county has purchased buses for MVTA, subsidized operating costs for certain routes, funded Hopscotch operating and capital needs, expanded weekend dial-a-ride services, paid park-and-ride maintenance, bought software and built a pedestrian bridge linking Marshall Road Transit Station.

- Sales tax receipts have generally exceeded early assumptions. Fries said the tax started with an assumed $6 million annual take but has been above $10 million for several years, peaking at about $15 million in 2023. Last year's receipts were $13,100,000; the county uses a conservative forecast of $12,000,000 in its budget.

Project timing and priorities

- The county extended the program map in 2022 and moved the sales tax horizon to 2032 to complete remaining regional projects and begin investments on several principal arterials on the county system, including County Road 17 and County Road 8.

- Planned milestones Fries cited: a County Road 17 improvement project slated for the 2027 program (including intersections and trail connections); a Trunk Highway 13 project and other corridor work timed to align with MnDOT's Corridors of Commerce efforts; and a phased County Road 8 extension with early work in the early 2030s (Fries referenced 2031 and 2033 timeframes for different phases, noting mining operations affected sequencing).

- Fries said the county intends to continue using the sales tax to leverage MnDOT and federal funding; on some 169 corridor projects she estimated the county leveraged about $2 of state and federal money for every $1 of sales tax investment.

Risks and contingencies

- Fries flagged grant competitiveness and policy changes as risks. She said regional grant programs have become more competitive, which has complicated the county's ability to achieve prior leverage goals.

- She also noted the state-created Transportation Alternative Account (established by 2023 legislation) requires that 17% of certain county sales-tax-derived funds be spent on transit or complete-streets projects. Fries warned that if the Legislature or future policy changes reduce or restrict those funds, the county may need to re-evaluate how it programs transit investments.

Comments from commissioners

Commissioner Ullrich praised the staff and noted the program's long-term nature, calling the sales tax investments part of a 25-year commitment to the 169 corridor. Commissioner Wolf and others asked whether County Road 8 is likely to be completed; Fries reiterated it remains in the county's plan and that the project has regional benefits, but said timing depends on partnerships, mine activity near Belle Plaine and additional funding.

The board did not take a formal vote on new projects at the meeting; Fries closed by inviting questions and saying she would return with updates as projects progress.

Ending: The board directed staff to continue grant applications and coordination with MnDOT, cities and regional partners as projects move through right-of-way, design and funding stages.