Apple Valley adopts preliminary 2026 budget, sets Truth‑in‑Taxation hearing for Nov. 25

On Sept. 11, 2025, the Apple Valley City Council adopted a preliminary 2026 budget and certified a maximum property tax levy that staff said increases the levy by $5,142,000 (about 13 percent) and sets the Truth‑in‑Taxation hearing for 7 p.m. on Nov. 25, 2025.

Ron (staff member) presented the budget package and told the council the total all‑fund budget is about $130.07 million, with the general fund proposed revenues at $50,572,970 and taxes making up roughly three‑quarters of that figure. He said capital outlay remains a major driver this year and that debt service increases — including voter‑approved park referendum bonds and facilities capital improvement bonds — account for a significant portion of the levy increase.

Ron summarized key numbers: the levy increase of $5,142,000 (13 percent), an expected median‑value home tax bill of $1,699 (up $211 or 14.18 percent from last year), and specific drivers including $2,293,000 for park referendum bond debt service and $351,000 for facilities bond debt service. He also said utilities in the budget assume a 5 percent increase for water and sewer and a 10 percent increase for stormwater rates; for a typical quarterly household usage (25,000 gallons water and 15,000 gallons sewer), the combined utility increase is about $12.58 per quarter.

Council moved and approved two formal actions: adoption of the preliminary budget and levy, and setting Nov. 25 as the Truth‑in‑Taxation public meeting date. The motion to adopt the budget was moved by Council Member Leander and seconded by Council Member Bergman; the motion to set the Nov. 25 hearing date was moved by Council Member Ebert and seconded by Council Member Bergman. Both motions carried by voice vote.

Ron noted schedule and notice requirements: the county will mail parcel‑specific notices between Nov. 11 and Nov. 24 (the county staff told city staff they planned to begin mailing Nov. 11), and final budget certification to the county and state must occur by late December. He also described several taxpayer assistance and relief programs referenced in the presentation, including the market value homestead exclusion, renter and homeowner refund programs, disabled veteran exclusions, and senior deferral programs; Ron said specifics for some refund programs had not yet been released for the 2025 returns.

Council members and staff said there remain opportunities to reduce the levy before final certification; the preliminary levy sets a maximum and “can be lowered, but it cannot be increased” once certified. The council will review public testimony on Nov. 25 and is scheduled to adopt a final levy and budget at that meeting or at the next regular council meeting if further action is needed.