DEPARTMENT: Finance
FILE TYPE: Regular Action
TITLE
title
Adoption Of 2025 Certified Dakota County Maximum Proposed Tax Levy
end
PURPOSE/ACTION REQUESTED
Adopt a maximum proposed 2025 property tax levy of $167,648,832 for Dakota County.
SUMMARY
As part of the 2025 budget process, the County Board is required by state statute to adopt a resolution setting the maximum proposed property tax levy on or before September 30, 2024. The proposed levy is the amount that will be used on all Truth in Taxation (TNT) notices. The 2025 final levy to be adopted in December may not exceed the proposed levy amount except in a few narrow instances specified by Minn. Stat. §275.065.
State requirements for public budget and levy hearings for 2025 are that, in lieu of the formerly mandated TNT hearing, counties are required to hold a meeting at which the budget and levy will be discussed, and the public is allowed to provide input. The meeting will be held on December 3, 2024, at 6:00 p.m.
After adoption of the 2025 maximum proposed property tax levy, the budget schedule continues as follows:
December 3 Budget/Levy (Truth in Taxation) Public Hearing
December 17 Adoption of the 2025 Budget and Property Tax Levy
On August 13, 2024, staff presented information at a County Board Budget Workshop regarding 2025 budget planning, including expected changes in revenue and expenditures, key assumptions and preliminary levy planning alternatives. On August 27, 2024, the County Manager summarized the 2025 spending pressures, funding sources, and levy strategies and made a recommendation of 9.92 percent increase in maximum levy.
RECOMMENDATION
recommendation
The County Manager recommends the County Board adopt a maximum proposed 2025 property tax levy of $167,648,832 for Dakota County. Given anticipated inflationary cost pressures, a tax levy in this amount, in combination with continued reallocation of existing financial resources, is estimated to be sufficient to cover cost growth on current service demands and caseload growth and allows for prioritized growth in internal support, infrastructure and discretionary services.
end
EXPLANATION OF FISCAL/FTE IMPACTS
The recommended 2025 maximum levy of $167,648,832 for Dakota County represents a 9.92 percent increase from the amount levied in 2024. As discussed with the Board on August 27, 2024, the impact of this on a median-value home with a market value of $372,500 within Dakota County (up 0.11% from 2024 tax value of $372,100) in 2025 would be $713.40 (2024 $674.91), an increase of $38.49 (5.70%) from 2024.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, the Dakota County Board of Commissioners is required to adopt a maximum proposed property tax levy by September 30,2024, and to establish the date of a public hearing for input on levy and budget consideration.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby adopts the 2025 maximum proposed property tax levy of $167,648,832 (9.92% increase from 2024); and
BE IT FURTHER RESOLVED, That staff are directed to conduct appropriate calculations and file necessary documentation with the State of Minnesota to certify this action; and
BE IT FURTHER RESOLVED, That a Budget/Levy (Truth in Taxation) Public Hearing to receive public input on the County’s property tax levy and 2025 budget is hereby scheduled for 6:00 p.m. on December 3, 2024, Administration Center, 1590 Highway 55, Hastings, MN.
end
PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: None.
BOARD GOALS
☐ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Paul Sikorski
Author: Karen Cater