The Apple Valley City Council voted Nov. 25 to adopt the citys 2026 budget and property tax levy after a lengthy presentation and council discussion.

Finance Director Ron Hedberg presented the proposed two-year budget and the property tax levy. City staff said total expenditures across all funds for 2026 are approximately $130,000,000, with enterprise funds accounting for about $50,500,000. Property tax revenue for 2026 was listed at approximately $38,008,660, roughly one-third of the citys total expenditures. The council-approved levy will increase from about $39,000,524 to $44,666,000, a rise of roughly $5.14 million or about 13.0%.

City staff and Hedberg said a majority of the levy increase is tied to debt service from voter-approved park referendum bonds and facilities capital improvement bonds issued in 2025. Staff cited an increase in voter-approved debt service of approximately $2,293,000 and additional facilities bond debt as the largest drivers of the levy change. Wages and benefits, insurance, utilities and new positions (including a mechanic, fire inspector and forester) were also cited as contributors.

Using the citys example, the median-valued home (estimated market value about $371,350) will see the city portion of its tax bill rise by about $211 annually (about $17.58 per month). Staff explained that roughly $113 of that increase stems from new debt service related to capital projects.

The presentation also summarized utility rate changes proposed for 2026: water and sewer rates up about 5%, stormwater rates up about 10% and street lighting up about 5% (staff gave a sample quarterly increase of about $12.58, or roughly $4.19 per month, for a typical user). The council discussed priorities, fiscal management and the trade-offs tied to capital investments and service levels.

Councilmember Bergman moved to adopt the 2026 budget and property tax levy; Councilmember Hebert seconded and the motion passed by voice vote.

Staff noted resources for property owners, including state property tax refund programs and county assessor contacts for valuation questions. The budget and supporting documents are posted on the city website.