Dakota County board adopts 9.9% maximum proposed levy for 2026, citing fund-balance shortfalls

The Dakota County Board of Commissioners on Sept. 23 voted to adopt a maximum proposed property tax levy of $184,246,066 for 2026 — a 9.9% increase from the current levy — as a preliminary step in the county—s budget process.

Will Wallow, Dakota County finance director, presented the recommendation and financial context to the board, explaining staff—s baseline projection of an 8.1% increase and the additional 1.8 percentage points that bring the recommendation to 9.9%. "Our recommended action before you today is adoption of the 2026 certified Dakota County maximum property tax levy of $184,246,066 for 2026," Wallow said during his presentation.

Wallow told the board the county—s fund balance has declined by about $136 million over the past five years, that staff had identified $8.3 million in reductions to levy-funded programs and services (with a broader total of about $8.8 million in cuts referenced in the presentation), and that staff-proposed reductions include a net elimination of roughly 44.3 full-time equivalents (FTEs) across departments. He said roughly $3 million of the proposed additional levy would be used to fund ongoing expenditures previously paid from fund balance, including IT capital equipment and certain year-to-year contracts.

Wallow also presented projected property-tax impacts: the median residential homestead in the county would see a county tax increase of about $66.11 under the 9.9% levy. He said staff—s five-year forecast includes continuing state and federal cost shifts and that the county is planning a multi-year structural deficit reduction roadmap; staff forecasted a larger levy increase (about 11.7%) in the next year under current assumptions.

Commissioners debated the recommendation at length. Several praised staff for detailed work and emphasized the need to rebuild reserves and preserve the county—s AAA bond rating. Commissioner Halverson highlighted the year-round work by staff to identify efficiencies. Commissioner Atkins said he supported the preliminary figure but expressed concern about recent capital-improvement program (CIP) changes that had not been reviewed by the full board and noted the need for continued discussion and flexibility before final budget adoption. Commissioner Hoberg recorded the lone no vote on the final roll call.

Commissioner Droste moved adoption of the maximum levy; the motion passed on roll-call vote with one dissenting vote recorded for Commissioner Hoberg. The board will hold a truth-in-taxation (budget) meeting Dec. 2 and adopt the 2026 budget and levy on Dec. 16; staff signaled additional workshops between now and December to refine cuts, review fund balances and pursue a long-term financial-management plan.

The action establishes the maximum levy for public-notice purposes and does not itself finalize the budget. The presentation and workshop materials will be available with the county—s meeting record.