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Apple Valley council adopts $130M 2026 budget and raises levy amid bond debt service
Summary
On Nov. 25 the council approved a $130 million all-funds 2026 budget and a property tax levy increase to support capital investments, debt service from 2025 bond issuances and operations; the median-value homeowner faces about a $211 annual increase.
The Apple Valley City Council voted Nov. 25 to adopt the city’s 2026 budget and property tax levy after a Truth-in-Taxation presentation by Finance Director Ron Hedberg.
Hedberg told the council the total expenditures across all funds are approximately $130,000,000, with enterprise funds accounting for about $50,500,000 and a general fund of roughly $50,700,000. He said property taxes make up about a third of total revenue and roughly 74.7% of the General Fund’s revenues.
The 2026 levy will increase from $39,000,524 to $44,666,000, an increase of $5,142,000 or about 13.01%. Hedberg said more than half of the levy increase is related to voter-approved park referendum bonds and facilities capital improvement bond debt service approved in 2025; he cited a park bond debt service increase and an additional facilities debt levy impact. He summarized drivers including new and continuing debt service, salary and benefit increases, higher insurance and utility costs, and new positions supported by levy funds.
Hedberg provided an example taxpayer impact: the median-value home in Apple Valley is estimated at $371,350 for 2026, and the city portion of the tax bill on that home is projected to be approximately $1,699 — an increase of about $211 from 2025, of which roughly $113 is attributable to debt service from recent capital projects.
Council members discussed priorities, comparisons with neighboring cities and the long-term implications of capital investment. No members of the public spoke during the Truth-in-Taxation portion. Councilmember Bergman moved to adopt the 2026 budget and property tax levy; Councilmember Hebert seconded the motion and the council approved the resolution by voice vote.
The budget package also included utility rate adjustments Hedberg noted — water and sewer rates projected to rise about 5%, stormwater about 10% and street lighting about 5% — and capital spending items tied to enterprise funds and the annual street and infrastructure maintenance program.
