HomeMy WebLinkAbout12-11-2023
AGENDA
CITY COUNCIL WORK SESSION
December 11, 2023 - 6:30 PM
Lakeville Water Treatment Facility
Members of the public can participate in person at the Lakeville Water Treatment Facility, 18400 Ipava Avenue. Members of the
public may join the meeting via Teams Meeting, Meeting ID: 236 854 408 111 or by calling Toll Number 1-323-433-2142;
Conference ID: 809 682 696#. The mayor will allow for public comments and questions at the appropriate time.
The City Council is provided background information for agenda items in advance by staff and appointed commissions,
committees, and boards. Decisions are based on this information, as well as City policy, practices, input from constituents, and a
council member’s personal judgment.
1. Call to order, moment of silence and flag pledge
2. Citizen Comments
3. Discussion Items
6:35 p.m. a. 2024 Legislative Priorities Draft Allyn Kuennen,
Courtney Miller
7:05 p.m. b. Potential Housing Programs Tina Goodroad
4. Items for Future Discussion
5. Committee/ City Administrator Updates
6. Adjourn
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Date: 12/11/2023
2024 Legislative Priorities Draft
Proposed Action
Staff recommends adoption of the following motion: For Council discussion only.
Overview
The adoption of legislative priorities is intended to portray the City's positions on various issues
to Lakeville's residents, legislators, county and state officials, lobbying organizations, and other
interested parties.
Attached for your consideration is a relined copy of the proposed 2024 Legislative Priorities.
Added priorities include School Resource Officers and Earned Sick and Safe Time. Revisions
were made to several other priorities to reflect changes since 2023.
Council may also want to discuss how this document is shared with our legislative delegation. In
the past, the city has invited them to a joint work session (if time allows before the legislative
session begins).
Supporting Information
1. 2024 Legislative Priorities Draft
Financial Impact: $ Budgeted: No Source:
Envision Lakeville Community Values: Good Value for Public Service
Report Completed by: Courtney Miller, Assistant to the City Administrator
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City of Lakeville
2024 Legislative Priorities
Adopted: ___________
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TABLE OF CONTENTS
Primary Legislative Priorities ....................................................................................................................................3
A. State Mandates on Local Authority: ...................................................................................................3
B. Post Office Improvements: ..................................................................................................................3
C. School Resource Officers: ....................................................................................................................3
D. Regional Public Safety Training Facility: ...........................................................................................4
E. Storage of Railroad Cars within Urban Residential Areas: .............................................................4
F. Capacity Improvements at County Road 50 and Interstate 35 Bridge: .........................................4
Additional Legislative Priorities ...............................................................................................................................6
A. Regulation of Adult-Use Cannabis and Cannabinoid Products:....................................................6
B. Expansion of Wine and Strong Beer Sales in Grocery/C-Stores: ...................................................7
C. Elections: ................................................................................................................................................7
D. Met Council Governance: ....................................................................................................................7
E. Revenue Restrictions: ...........................................................................................................................8
F. Data Practices Act: ................................................................................................................................8
G. Fiscal Disparity Fund Distribution: ....................................................................................................8
H. Targeting Property Tax Relief Directly to Individuals: ....................................................................8
I. Earned Sick and Safe Time ..................................................................................................................9
Transportation ........................................................................................................................................................9
A. Transportation System Improvement and Maintenance Funding: ...............................................9
B. Dan Patch Commuter Rail Corridor: .................................................................................................9
Economic Development ........................................................................................................................................9
A. Expansion of the Job Creation Fund (JCF) and Minnesota Investment Fund (MIF): ................9
B. Expansion of Broadband Highspeed Internet: ............................................................................... 10
C. Tax Increment Financing (TIF): ...................................................................................................... 10
Housing ................................................................................................................................................................ 10
A. City Role in Housing: ........................................................................................................................ 10
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Primary Legislative Priorities
A. State Mandates on Local Authority:
Lakeville opposes statutory changes which erode local control and authority including, but not
limited to:
• Mandates that limit the city’s ability to manage our development standards, zoning regulations,
and the use of right-of-way.
• Unfunded mandates that cause increased property taxes which impede the city’s ability to fund
traditional services.
• Salary and compensation limits
• Regulations prohibiting the imposition of infrastructure fees so new development pays its fair
share of the off-site, as well as the on-site, costs of public infrastructure to adequately serve the
new development.
B. Post Office Improvements:
In March of 2021 the United States Postal Service released its 10-year plan, ‘Delivering for
America,’ to return the organization to financial sustainability and achieve service excellence while
maintaining universal six-day mail delivery and expanding seven-day package delivery. The
Lakeville Post Office currently struggles to make consistent daily deliveries to residents, much less
expanding to delivery seven days a week. The report indicates the successful implementation of the
10-year plan requires partnership from legislative and regulatory stakeholders. The City of
Lakeville has contacted our local elected federal representatives and requested a review of the
operations of the Lakeville Post Office. It is essential, for a growing city of over 75,000 residents,
that the Federal Government implement improvements to Lakeville’s Post Office including the
renovation and expansion of the sorting and distribution facility, upgrades to technology, increased
staffing and training, and updated vehicle fleet and logistics to provide improved customer service
and consistent and reliable handling, sorting and delivery of mail services.
C. School Resource Officers:
Minn. Stat. Ch. 121A governs student rights, responsibilities, and behavior. In 2023, the legislature
included provisions in the omnibus education bill amending this chapter to limit the use of force
toward students by school resource officers (SROs). The amended law generated conflicting legal
interpretations and created ambiguity for SROs around when use of certain restraints is authorized
in school settings and whether SROs retain the authority to use reasonable force as provided in
Minn. Stat. § 609.06. Due to ambiguity in the law and potential civil and criminal liability risks,
some local law enforcement agencies suspended or terminated SRO contracts with school districts.
Lakeville supports the Legislature and Governor working with stakeholders, including law
enforcement, local government, and education organizations, to clarify laws pertaining to the
authority SROs have in schools.
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D. Regional Public Safety Training Facility:
A permanent, dedicated public safety training facility within Dakota County, available to all
jurisdictions within the south metro and Greater Minnesota area, would improve training for
public safety employees. It would allow for more consistent and routine training opportunities, as
well as allowing for employees to maintain certifications. A regional public safety training facility
would help ensure our safety personnel have the highest degree of training possible to serve the
public. In 2023, the Minnesota Legislature prioritized increasing training and equipment for public
safety personnel by passing a bonding bill through which the city received $7,170,000. This amount
is to design, construct, furnish, and equip the renovation of an existing building for a new regional
public safety training center. The facility will include physical and virtual training areas, tactical
training rooms, a firing range, classrooms, and meeting areas. The city has engaged an architect to
complete the plans and specifications for constructing the facility with an anticipated project
completion in 2025.
The estimated completion cost is $14-$20 million. Many of the jurisdictions within Dakota County
and the south metro area, including Burnsville, Apple Valley, Farmington, Northfield, Eagan, and
Rosemount have provided written support for the public safety training facility. This project would
have no impact on State Operating Subsidies as the City of Lakeville would own and operate the
facility, with the other jurisdictions providing operational support through membership or user
fees to ensure the operational costs are shared among the jurisdictions benefiting from the facility.
The city seeks additional state and federal funding to close any financial gaps.
E. Storage of Railroad Cars within Urban Residential Areas:
An active but little used section of freight railroad track runs through the City of Lakeville. Most of
the track runs through residential neighborhoods or are adjacent to residential homes. While the
railroad track is classified as an active line, several sections are in poor condition and the track is
only used for the storage of inactive rail cars. Expanding rail capacity within industrial areas has
the potential to increase development opportunities and addresses the concerns of residential
property owners regarding safety and visual blight. The city was awarded $750,000 in Federal
Funding (Fiscal Year 2023) for engineering design and $7,000,000 in State Funding for
construction. The project includes construction of a 90-car storage yard, and a 30-car transload
facility within the City’s industrial parks, south of CSAH 70. Additional state and federal resources
should be provided that will incentivize rail car storage areas within industrial areas and outside of
residential neighborhoods.
F. Capacity Improvements at County Road 50 and Interstate 35 Bridge:
The City has invested over $22 million dollars in capital infrastructure improvements along the
County Road 50 corridor and within the Interstate 35 interchange area in preparation for future
safety and capacity improvements at the I-35/CSAH 50 interchange. In addition, the City borrowed
$1,830,000 through the Metropolitan Council’s Right-of-Way Acquisition Loan Fund (RALF) to
acquire a vacant restaurant and an underutilized retail building. Replacing the Interstate 35 bridge
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(deficient in age and capacity), improving mobility along the Interstate 35 corridor (E-ZPass lanes),
and making safety and capacity improvements at the I-35 and CSAH 50 interchange will provide
the needed regional infrastructure to extend the METRO Orange Line along the interstate corridor,
promote new commercial and industrial development at County Roads 50 & 70, and encourage
additional job creation and tax base.
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Additional Legislative Priorities
Local Control, Municipal Revenue & Taxation
A. Regulation of Adult-Use Cannabis and Cannabinoid Products:
The 2023 legislative session enacted legislation making Minnesota the 23rd state across the
country to legalize adult-use cannabis. The new law, ch. 342, created a statewide regulatory
framework for adult-use cannabis establishing state-issued licenses for the industry from seed
to sale. The regulatory structure includes local regulation, with cities responsible for registering
certain cannabis businesses that are licensed by the state and conducting compliance checks.
The law requires businesses to comply with local zoning ordinances, authorizes cities to
implement license limits, and authorizes cities to implement ordinances to establish a petty
misdemeanor for public use of cannabis and cannabinoid products. These authorizations aside,
cities have very limited discretion in the regulation of the industry. In addition to the adult-use
cannabis market, cities continue to navigate the regulation of cannabinoid products legalized
by the 2022 legislative session under chapter. § 151.72. As the Office of Cannabis Management
is created and rulemaking is conducted, cities have continued to implement local licenses for
the products.
Finally, the new law authorizes cities to impose an interim ordinance to study the issue and
restrict, regulate, and prohibit cannabis businesses until January 1, 2025. However, estimates
from state agencies and the rulemaking timeline established by law indicates that final rules
will not be available until early 2025. The authority to conduct an interim ordinance study
should better align with the establishment of rules for the new law to allow cities to properly
study the issue. Many questions remain for what is to be seen from the Office of Cannabis
Management and the cannabis industry as it is established. Cities will be a critical component
of the regulation and enforcement of this industry.
In any future legislation, the following should be considered:
• The timeline authorized for interim ordinances to conduct studies on the adult-use
cannabis industry should be extended to better align with the conclusion of
rulemaking for ch. 342 to provide adequate time for cities to study the rules once
adopted.
• Any legislation considered should be responsive to the needs of cities as they arise
from the implementation of this industry, including evaluating and potentially
increasing the appropriation provided through the Local Government Cannabis Aid
fund to ensure adequate funding for local governments to respond to challenges
resulting from the cannabis industry.
• Legislation should increase, and at a minimum maintain, any discretion and local
control granted to cities in current legislation.
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• The City opposes any proposals to diminish local control related to the cannabis
industry.
B. Expansion of Wine and Strong Beer Sales in Grocery/C-Stores:
Lakeville opposes any legislation that would allow the expansion of the sale of wine and strong
beer in grocery and convenience stores due to significant detrimental economic impacts on city
revenues and the negative affect on preventing drunk driving and underage alcohol sales and
consumption. Minnesota law allows grocery stores, gas stations, convenience stores and
wherever beer is sold to sell 3.2 beer. Beer manufacturers have not indicated they plan to stop
producing 3.2% beer. In fact, no- and low- alcohol beer sales are increasing. Due to the same
regulatory issues concerning regulation of alcohol and wine, "strong" beer (over 3.2%) can only
be sold in exclusive liquor stores.
C. Elections:
Cities are essential in administering state and federal election laws and conducting voting
activities. To strengthen the effectiveness of election administration, the Legislature should:
• Seek input from cities on proposed changes to voter registration, election law, and
needed improvements and updates to the Statewide Voter Registration System
(SVRS);
• Provide Cities with ongoing and sufficient funding through the Voting Operations,
Technology, and Election Resources Account (VOTER) fund to provide cities with
resources to conduct elections and meet the mandated requirements outlined in the
statute.
• Provide ongoing resources to cities that administer absentee balloting and early
voting for the extended early voting period and additional weekend hours required
during a general election.
• Ensure that local government units are fully reimbursed for all anticipated and
unanticipated costs of conducting the presidential nomination primary.
D. Met Council Governance:
The 17-member Metropolitan Council has 16 members, who represent geographic districts
within the Twin Cities seven-county metropolitan area, with one member serving at large.
However, they are all appointed by and serve at the pleasure of the Governor and typically fall
within the current governor’s party affiliation. To provide a governance structure which is
more representative of our respective communities, local governments (cities and counties)
should be afforded an opportunity to provide input in the selection process for members who
represent local interest in regional planning efforts.
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E. Revenue Restrictions:
The City of Lakeville strongly opposes levy limits and other financial restrictions imposed upon
local governments. Local taxpayers hold their local elected officials accountable for local
government spending and taxing decisions. When the state imposes levy limits, reverse
referenda, or other fiscal restraints on local elected officials, it negatively impacts the ability of
cities to meet the needs of their residents and removes the autonomy of local officials.
F. Data Practices Act:
The City of Lakeville supports a comprehensive periodic review of the Minnesota
Government Data Practices Act (MGDPA) which was first enacted in 1979, over 40 years ago.
Times have changed, specifically with technology. In 1979, cities were mainly maintaining
data in paper form. Legislators from that time could not have imagined where technology
would be today. The MGDPA should be updated to address those changes. The City of
Lakeville should support these efforts:
• Provide additional state funding to assist Cities with meeting the increasing
complexity of managing government data and records.
• State funding should be provided for statewide data practices training.
• Allow Cities to charge for the staff time required to comply with wide-ranging
data requests regardless of where copies of the data are requested.
G. Fiscal Disparity Fund Distribution:
The City of Lakeville supports the Fiscal Disparities Program and any effort to modernize and
improve the program to fund the needs of the metro area.
H. Targeting Property Tax Relief Directly to Individuals:
The City of Lakeville supports targeting property tax relief directly to individuals as opposed
to direct aid programs like Local Government Aid (LGA), and believes that income, not
property value, is the most appropriate measure of "ability to pay" property taxes. Lakeville
supports additional property tax relief to those in greatest need by directing dollars to the
circuit breaker program from programs such as LGA. The circuit breaker income adjusted
property tax relief program provides direct assistance to those homeowners in greatest need,
whether those local homeowners reside in a city which receives direct aids from the State.
The City of Lakeville also supports modifications to the homestead market value exclusion
program. The general parameters of the program have not changed since 2011 and recent
trends in residential home values have significantly reduced the value of the exclusion for many
homeowners. The legislature should adjust the program to reflect the increases in market
values.
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I. Earned Sick and Safe Time
The legislature should amend Minn. Stat. § 181.9445, subd. 5 to incorporate a well-defined
“public employee” definition, to include unique positions in which there is not a formal
employer-employee relationship such as paid on-call fire fighters, election judges, or other non-
traditional positions.
Transportation
A. Transportation System Improvement and Maintenance Funding:
The City of Lakeville supports State efforts to bolster financial resources needed to address
road, highway, and freight rail improvements. The City of Lakeville also supports efforts to
provide cities with adequate tools to fund maintenance and improvements to local roadways.
Current levels of funding for roads and highways are inadequate to maintain existing road and
highway needs and meet the needs of growing areas such as Lakeville. Lakeville recognizes the
need for additional transportation funding statewide and will continue to advocate for
additional resources to maintain the State’s transportation infrastructure. In addition, cities
still lack the authority to use additional tools for city street improvements; such resources
continue to be restricted to property taxes and special assessments. It is imperative that
alternative authority be granted to municipalities for this purpose to relieve the burden on the
property tax system. The City of Lakeville will be financing millions of dollars in street
maintenance and reconstruction projects with property taxes over the next several years. Street
maintenance and reconstruction projects will be the most significant contributing factors to
future property tax increases. This is in addition to millions of dollars in project costs financed
from other sources such as special assessments and municipal state-aid street funding.
B. Dan Patch Commuter Rail Corridor:
Lakeville is opposed to any State or Federal funding that supports the study, planning, design
or engineering of the Dan Patch Corridor.
Economic Development
A. Expansion of the Job Creation Fund (JCF) and Minnesota Investment Fund (MIF):
The City of Lakeville supports the expansion of state programs to allow cities the ability to
provide competitive incentive packages. The Job Creation Fund provides financial incentives
to new and expanding businesses that meet certain job creation and capital investment targets.
The Minnesota Investment Fund provides financing to help add new workers and retain high-
quality jobs on a statewide basis. Both programs have successfully been used in Lakeville and
are needed economic development tools.
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The City of Lakeville supports fully funding the Minnesota Job Skills Partnership and other
workforce training programs administered by the Department of Employment and Economic
Development, the Department of Human Services, and the various education agencies.
B. Expansion of Broadband Highspeed Internet:
Access to highspeed internet is essential for businesses and cities to compete in a global
economy. Many commercial and residential areas within Lakeville do not have access to
consistent and reliable broadband service. To promote economic development and to insure
reliable highspeed broadband internet access the following steps should be implemented:
1. Fully fund the Border-to-Border Broadband Grant Program and continue to encourage
public/private sector collaboration.
2. Support measures to authorize and encourage cities and other local units of
government to play a direct role in providing broadband infrastructure and/or services.
3. Offer incentives to private sector service providers to respond to local or regional needs
and to collaborate with cities and other public entities to deploy broadband
infrastructure.
4. Remove barriers, restrict anti-competitive practices that prevent or impede cities,
municipal utilities, schools, libraries, and other public sector entities from
collaborating and deploying broadband infrastructure and services at the local and
regional level.
C. Tax Increment Financing (TIF):
Cities need greater flexibility to use TIF for community and economic development that
supports residents and businesses. Further restrictions of TIF would render the tool less
effective and hinder local efforts to support job creation, housing and redevelopment. The
Legislature should consider expanding the use of TIF to assist in the development of
technological infrastructure and products, biotechnology, research, transportation and transit-
oriented development, non-retail commercial projects, and modifying the various provisions
of existing TIF law to better facilitate redevelopment and housing activities.
Housing
A. City Role in Housing:
The city values living options for people of all ages and stages of life. Lakeville strives to be a
community where residents can live and age in place. Lakeville will accommodate individuals
and families at all stages of life and strive to meet the housing, transportation, education,
shopping, access to health care and other needs of all demographic groups within the city.
Funding for life cycle, workforce and affordable housing is the responsibility of State and
Federal governments and should not be borne solely by local property taxpayers. In addition,
the city opposes any mandated housing requirements. Cities can facilitate the production and
preservation of life cycle, workforce and affordable housing by:
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1. Applying for State or Federal funding from applicable grant and loan programs.
2. Working with developers and residents to blend life cycle and affordable housing into
new and existing neighborhoods.
3. Establishing standards that encourage lifecycle and affordable housing.
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Date: 12/11/2023
Potential Housing Programs
Proposed Action
Staff recommends adoption of the following motion: No formal action. Staff seeks direction on
prioritizing activities and funding with the Direct Local Housing Aid funds.
Overview
The Legislature passed a housing bill with $1 billion in new funding for various housing
programs. The Legislature appropriated state funds for the programs and established a metro
wide sales tax for housing needs, including a portion of this tax as a local housing aid for
metropolitan cities.
The new law establishes a 0.25% metropolitan regional sales tax, with a portion of the proceeds
allocated to metropolitan cities over 10,000 in population. Lakeville will receive a distribution
of aid under this legislation with an estimate of $385,117 in 2024. A spreadsheet showing the
estimated distribution of aid by city, for 2024-2027, is attached. This spreadsheet, using data
from House Research, estimates that cities will receive $31.1 million in 2024. It is expected that
the amount will increase over time, because collections for this tax began in October of this year,
which shortens the collection time frame for the first year.
Cities can use this aid for emergency rental assistance, financial support to nonprofit affordable
housing providers, and projects for the construction, acquisition, rehabilitation, demolition or
removal of existing structures, construction financing, permanent financing, interest rate
reduction, refinancing, and gap financing. Cities will be able to use this aid only for affordable
housing assistance for households at 115 percent of the area median income (AMI) for
homeownership projects, and 80 percent AMI for rental housing projects. For a household of
four, 115% AMI is $143,650 and at 80% AMI is $94,650 (2023 income guidelines). Attached is
a summary from DEED, that includes Dakota County statistics including average wages for the
largest employment industries, that can help relate wages to types of jobs.
The MN Department of Revenue will distribute payments on the same payment schedule used
for local government aid, with distributions in July and December. Cities must spend this aid by
December 31 in the third year following the year after the aid was received. Beginning in 2025,
cities must submit an annual report with documentation on any unspent funds, and
documentation of qualifying projects completed or planned. This report will be due by
December 1 of each year (starting in 2025) to the Minnesota Housing Finance Agency.
Uses of Funds
General categories for the use of funds proposed by staff include: affordable development
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related (owner and rental), preservation of affordable housing (owner and rental), home buyer
assistance, and other.
Development: City funds could be used to support the creation of new affordable housing (rental
and homeownership) through a variety of ways including construction costs, gap funding,
assistance with acquisition, demo, or removal of buildings, etc. Such financing is a significant
expense, more than likely requiring multiple years of aid to assist one project.
Preservation of affordable housing: This includes home improvement loan programs such as the
one currently administered by the CDA using CDBG funds. This program provides loans
between $15,000 and $35,000 that are 0% interest with no monthly payments. Loans are
repayable upon transfer of ownership. Income limits are currently at 80% AMI. The CDA would
like to expand this by creating an Enhanced Housing Rehab program with a broader reach of up
to 115% AMI and potentially up to $50,000 loans with similar loan structure as the CDBG.
Cities could dedicate a portion of the direct housing aid to this program and the CDA would
administer the program as they are for the current CDBG funded effort.
Other preservation efforts could include improvement loans geared toward seniors with a
deferred option. We could also create a program for rental rehabilitation that provides
improvements to exteriors, mechanicals, etc. to income-verified rental properties or units. CDA
has a similar program through their HOPE program which could be expanded. Finally, we could
consider a manufactured home improvement program for interior or exterior improvements.
Home buyer Assistance: The city could create a down payment assistance program for qualified
buyers. We will want to check with the state as new financing may fill this gap without having
to replicate it locally.
Other ideas:
Improvement grants for qualified residents to help remedy minor property code violations.
Radon Mitigation Program: The CDA is considering the creation of a radon mitigation grant
program with the local housing aid dollars, for homeowners at 115% AMI. The average radon
mitigation system costs approximately $3,000 - $6,000.
Local Housing Trust Funds:
One way to account for these local housing aid dollars is to establish a local housing trust fund.
A local housing trust fund is established by elected government bodies to dedicate public
revenues to a district fund that is used to address housing needs. Such a fund does need to meet
the requirements of MN Statutes 462C.16 to be considered a local housing trust fund by the
State of Minnesota. All the proposed uses listed above are eligible uses of local housing trust
fund dollars.
The CDA has had a local housing trust fund since 2001, the HOPE Program. The HOPE
Program provides resources to create and preserve affordable housing throughout Dakota
County for low- and moderate-income households. The CDA is currently seeking legal guidance
to determine if cities can reserve their local housing aid dollars into the HOPE Program and have
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the CDA track separately.
Next Steps:
The CDA is hosting the January 19, 2024, Dakota County Mayors/Manager meeting to discuss
the local housing aid dollars and potential collaborative efforts. We anticipate receiving a formal
request from the CDA in Q2 2024 with proposed programs (administered by the CDA) to utilize
local housing aid dollars.
Supporting Information
1. Aid Amounts
2. 2023 AMI Chart
3. Dakota County Industry Stats
Financial Impact: $385,117 (estimated) Budgeted: No Source: Direct Local Housing
Aid
Envision Lakeville Community Values: A Home for All Ages and Stages of Life
Report Completed by: Tina Goodroad, Community Development Director
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Page 18 of 21
AMI%1234567830% 26,100 29,800 33,55037,25040,250 43,250 46,200 50,60050% 43,500 49,700 55,90062,10067,100 72,050 77,050 82,00060% 52,500 60,000 67,45074,95080,950 86,950 92,950 98,95080% 66,300 75,750 85,20094,650102,250 109,800 117,400 124,950100% 87,450 99,950 112,450124,900134,900 144,900 154,900 164,900115% 100,550 114,950 129,300143,650155,150 166,650 178,150 189,600120% 104,950 119,950 134,900149,900161,900 173,900 185,900 197,8502023 Area Median Income Guidelines - Minneapolis - St. Paul - Bloomington, MN Effective June 1, 2023Household SizePage 19 of 21
WSA 14 Industry Employment DEED Labor Market Information Office | mn.gov/deed/data/
Workforce Service Area (WSA) 14 Industry Employment
Dakota County
According to the Department of Employment and Economic Development’s (DEED) Quarterly Census of Employment
and Wages (QCEW), Dakota County had 11,597 establishments supplying 188,914 covered jobs in Q2 2023. This equaled
approximately 6.5% of Minnesota’s total employment. Total quarterly payroll for Dakota County employment equaled
$3.1 billion with an average annual wage equal to $66,300 (Table 1).
Table 1. Dakota County Industry Statistics, Q2 2023
Industry Number
of Jobs
Share of
Total Jobs
Number
of Firms
Total Quarterly
Payroll
Avg.
Annual
Wage
Total, All Industries 188,914 100.0% 11,597 $3,132,189,145 $66,300
Health Care and Social Assistance 23,808 12.6% 1,843 $335,830,518 $56,420
Retail Trade 23,580 12.5% 1,125 $223,107,059 $37,804
Manufacturing 19,718 10.4% 463 $390,996,454 $79,300
Accommodation and Food Services 15,484 8.2% 764 $98,174,928 $25,324
Transportation and Warehousing 14,829 7.8% 455 $258,790,430 $69,784
Educational Services 14,687 7.8% 309 $225,663,839 $61,412
Construction 10,893 5.8% 1,064 $241,356,020 $88,608
Finance and Insurance 9,716 5.1% 620 $266,068,682 $109,512
Wholesale Trade 8,951 4.7% 714 $200,738,454 $89,700
Administrative and Support Services 8,427 4.5% 591 $106,230,871 $50,388
Professional, Scientific, and Technical Services 7,950 4.2% 1,273 $186,045,975 $93,600
Other Services 7,058 3.7% 1,182 $81,872,797 $46,384
Public Administration 5,983 3.2% 78 $100,762,260 $67,340
Information 5,272 2.8% 215 $122,833,369 $93,184
Management of Companies 4,441 2.4% 90 $130,688,724 $117,676
Arts, Entertainment, and Recreation 3,826 2.0% 211 $88,052,872 $92,040
Real Estate and Rental and Leasing 2,287 1.2% 519 $36,680,057 $64,116
Agriculture 1,352 0.7% 59 $13,512,398 $39,936
Utilities 528 0.3% 13 $21,445,026 $162,448
Mining 120 0.1% 9 $3,338,412 $111,280
Source: DEED Quarterly Census of Employment and Wages (QCEW)
Health Care & Social Assistance, with 23,808 jobs at 1,843 establishments, was Dakota County’s largest‐employing
industry in Q2 2023. Total quarterly payroll for this industry equaled $335.8 million, with the average annual wage equal
to $56,420. This industry is comprised of Ambulatory Health Care Services; Hospitals; Nursing & Residential Care
Facilities; and Social Assistance. Social Assistance, itself, is comprised of Individual & Family Services; Community Food &
Housing, & Emergency & Other Relief Services; Vocational Rehabilitation Services; and Child Day Care Services.
Retail Trade, with 23,580 jobs at 1,125 establishments, was Dakota County’s second largest‐employing industry in Q2
2023. Total quarterly payroll for this industry equaled $223.1 million, with the average annual wage equal to $37,804.
Zooming in, over one‐quarter (26.2%) of the county’s Retail Trade employment was in General Merchandise Retailers.
This in‐depth industry had 77 establishments supplying 6,174 jobs in Q2 2023. Other large‐employing Retail Trade
sectors included Food & Beverage Stores (136 establishments supplying 3,816 jobs); Motor Vehicles & Parts Dealers (105
establishments supplying 3,651 jobs); Building Material & Garden Equipment & Supplies Dealers (69 establishments
supplying 2,233 jobs); and Sporting Goods, Hobby, Musical Instrument, Book, & Miscellaneous Retailers (134
establishments supplying 2,211 jobs). Other in‐depth sectors in Retail Trade include Gasoline Stations & Fuel Dealers;
Clothing, Clothing Accessories, Shoe, & Jewelry Retailers; Health & Personal Care Stores; and Furniture, Home
Furnishings, Electronics, & Appliance Retailers.
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WSA 14 Industry Employment DEED Labor Market Information Office | mn.gov/deed/data/
Manufacturing rounds out as Dakota County’s third largest‐employing industry, with 19,718 jobs at 463 establishments.
Total quarterly payroll for this industry equaled $391.0 million in Q2 2023, with the average annual wage equal to
$79,300. Manufacturing is comprised of 21 distinct in‐depth industries. In Dakota County, those in‐depth Manufacturing
sectors with the most jobs include Food Manufacturing (44 establishments supplying 3,205 jobs); Computer & Electronic
Product Manufacturing (26 establishments supplying 3,118 jobs); Fabricated Metal Product Manufacturing (95
establishments supplying 3,107 jobs); Plastics & Rubber Products Manufacturing (18 establishments supplying 1,388
jobs); and Miscellaneous Manufacturing (61 establishments supplying 1,258 jobs). Altogether, these five Manufacturing
subsectors account for about three‐fifths (61.2%) of Dakota County’s total Manufacturing employment.
Dakota County also has significant employment, with over 10,000 jobs, in the following industries: Accommodation and
Food Services (15,484 jobs); Transportation & Warehousing (14,829 jobs); Educational Services (14,687 jobs); and
Construction (10,893 jobs) (Table 1).
Table 2. Dakota County Industry Trends, Q2 2018 – Q2 2023
Sorted by Numeric Job Change, Q2 2022 – Q2 2023
Industry Q2 2023 Number
of Jobs
Job Change, Q2 2022 – Q2 2023 Job Change, Q2 2018 – Q2 2023
Numeric Percent Numeric Percent
Total, All Industries 188,914 1,187 0.6% ‐2,449 ‐1.3%
Health Care and Social
Assistance 23,808 811 3.5% ‐555 ‐2.3%
Accommodation and Food
Services 15,484 649 4.4% ‐196 ‐1.3%
Manufacturing 19,718 420 2.2% 836 4.4%
Transportation and
Warehousing 14,829 377 2.6% ‐142 ‐0.9%
Public Administration 5,983 291 5.1% 381 6.8%
Real Estate and Rental and
Leasing 2,287 202 9.7% ‐140 ‐5.8%
Other Services 7,058 143 2.1% 62 0.9%
Educational Services 14,687 52 0.4% 520 3.7%
Retail Trade 23,580 35 0.1% ‐802 ‐3.3%
Utilities 528 18 3.5% ‐28 ‐5.0%
Agriculture 1,352 14 1.0% 374 38.2%
Arts, Entertainment, and
Recreation 3,826 10 0.3% 159 4.3%
Management of Companies 4,441 ‐7 ‐0.2% 718 19.3%
Mining 120 ‐12 ‐9.1% ‐77 ‐39.1%
Wholesale Trade 8,951 ‐61 ‐0.7% ‐1,332 ‐13.0%
Construction 10,893 ‐103 ‐0.9% 1,049 10.7%
Professional, Scientific, and
Technical Services 7,950 ‐211 ‐2.6% 84 1.1%
Information 5,272 ‐368 ‐6.5% ‐1,141 ‐17.8%
Administrative and Support
Services 8,427 ‐401 ‐4.5% 890 11.8%
Finance and Insurance 9,716 ‐668 ‐6.4% ‐3,109 ‐24.2%
Source: DEED Quarterly Census of Employment and Wages (QCEW)
Over the past year of available data, between the second quarters of 2022 and 2023, Dakota County’s total employment
expanded by 0.6% (+1,187 jobs). For reference, Minnesota’s total employment expanded by 1.8%. Those industries
adding the most jobs in Dakota County during that period included Health Care & Social Assistance, Accommodation &
Food Services, Manufacturing, Transportation & Warehousing, Public Administration, and Real Estate & Rental &
Leasing. Job losses were largest in Finance & Insurance, Administrative & Support Services, Information; and
Professional, Scientific, & Technical Services (Table 2).
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