Carver County weighs options as license‑center losses deepen

Carver County leaders spent more than an hour Tuesday examining the finances and future of the county’s two license centers, with staff warning that longer‑term operating deficits and capacity limits mean the board must consider alternatives.

Dave Frishman, the county’s property finance director, told the board the county operates two centers — Chaska (which includes a state exam station) and Chanhassen (a service center that handles passport applications and non‑licensed work) — and framed the facilities as “discretionary but considered essential services.” He ran a 10‑year operations slide showing a surplus near $400,000 and about 132,000 transactions in 2016 that subsequently fell after state software and program changes. “The state brought in MNLARS, which was just a disaster of software,” Frishman said, adding that later moves to MnDRIVE improved reliability but did not restore prior transaction volume.

Why it matters: Frishman said the county now processes a higher share of complex transactions while the state captures many of the simpler, online renewals. That shift reduces easily captured fee revenue and leaves local offices handling cases that take more staff time. Frishman said federal COVID relief temporarily offset 2020 losses (about $350,000), but newer wage and insurance changes pushed 2026 projections back toward a larger deficit.

Board members pressed for numbers and options. A ZIP‑code survey Frishman described showed a large fraction of customers at the Chanhassen facility come from outside Carver County, which some commissioners called evidence the county is subsidizing other jurisdictions. “We are subsidizing at least a half‑million dollars without capital expense,” one commissioner said, arguing the county should be prudent about continuing to absorb losses.

Options discussed: Commissioner Huderman proposed three paths — put the centers to a private RFP, offer them to cities such as Chaska or Chanhassen, or ask the governor/state to assume operations and staff. Huderman said, “Do I think the DMV should go away? No. I proposed three different options,” and framed the RFP as a probe to test private viability. Several other commissioners pushed back, saying private operators often decline complex title transactions and that city operators typically do not run every service a county office provides.

State role and reports: Frishman referenced two outside reports — a 2022 King study and a 2024 Barry Dunn review — that recommended sharing online transaction revenue with deputy registrars or restructuring small convenience/penalty fees to remove disincentives for in‑person service. Commissioners urged more state engagement on fee structure and called for staff to better quantify thresholds that would trigger a formal policy change.

Capacity and staffing: Frishman estimated roughly 20–25 full‑time equivalents across both facilities and said Chaska is at physical capacity; growth in Carver County could require either expanded facilities, another location, greater efficiency, or a service transfer. He also described productivity targets (a daily goal that the county is moving from 24 toward 26 transactions) and a paused training‑coordinator position that had improved ramp‑up times for new staff before being put on hold due to budget constraints.

What’s next: No votes were taken; the board signaled it wants more detail for budget planning. Commissioners asked staff to return with further cost and capacity estimates, clarification of the legislative priorities identified in the King and Barry Dunn reports, and scenarios for an RFP or city transfer, including what services private operators are likely to accept and how the state would treat exam or passport staffing.