DEPARTMENT: Finance
FILE TYPE: Regular Action
TITLE
title
Certification Of 2026 Property Tax Levy And Adoption Of Dakota County 2026 Budget And 2026-2030 Capital Improvement Program
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PURPOSE/ACTION REQUESTED
Certify the 2026 property tax levy and adopt the Dakota County 2026 budget and 2026-2030 Capital Improvement Program.
SUMMARY
The 2026 property tax levy, Dakota County budget, and 2026-2030 Capital Improvement Program
(CIP) are to be adopted on December 16, 2025. This action concludes a process that spanned much
of 2025. The budget process began on July 23, 2025, with a budget workshop. Discussions centered on budget reductions and the proposed levy. There were subsequent budget workshops on August 19, 2025, and September 16, 2025. On September 23, 2025, the County Board set the maximum 2026 Recommended Levy at $184,246,066, which is a 9.90 percent increase over the 2025 adopted levy (Resolution No. 25-454; September 23, 2025). There was an additional budget workshop held on November 18, 2025, which focused on the operating budget and the CIP. The County Manger’s current total 2026 recommended budget is $527,684,094. The CIP Public Hearing and the Levy and Budget Public Hearing meetings were held on December 2, 2025.
Major highlights of the 2026 budget include:
• $8.8 million of base operating cost reductions, including the elimination of 44.3 FTEs.
• Increased current level operating costs, driven by increases to personnel costs, insurance premium increases, and inflation.
• Addressing the costs of new state programs, including Paid Family Medical Leave (PFML), and compliance with the African American Family Preservation and Child Welfare Disproportionality Act (“the Act”).
• Cuts and cost shifts to the Supplemental Nutrition Assistance Program (SNAP) resulting from legislation passed by the federal government in July 2025.
The County Manager’s 2026 Recommended Budget includes the following governmental and enterprise funds:
• General Fund
• Transportation Fund
• Environmental Legacy Fund
• Sales and Use Tax Fund
• Parks Fund
• Library Fund
• Opioid Settlement Fund
• Federal Revenue Fund
• Capital Projects Fund
• Debt Service Fund
• Geographic Information Systems (GIS) Enterprise Fund
• Byllesby Dam Enterprise Fund
RECOMMENDATION
recommendation
Staff recommends certification of the 2026 property tax levy and adoption of the Dakota County 2026
budget and the 2026-2030 CIP.
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EXPLANATION OF FISCAL/FTE IMPACTS
The proposed 2026 levy of $184,246,066 represents a 9.9 percent increase from the amount levied
in 2025. The impact of this levy on a median value residential homestead property for taxes payable
2025 is an increase of $68.21, from $715.14 in 2025 to $783.35 in 2026. The attached recommended
budget resolution includes the total budget amounts for 2026, including County costs, external
funding sources and full-time equivalent (FTEs) by department.
The County CIP amounts total $142,764,072 in the 2026 budget and $894,008,509 for the entire CIP.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, the Dakota County Board of Commissioners has completed the 2026 budget process;
and
WHEREAS, the Dakota County Board of Commissioners held budget workshops on July 23, August 19, September 16, and November 18, 2025; and
WHEREAS, the Dakota County Board of Commissioners held the Capital Improvement Program (CIP) Public Hearing and the Levy and Budget Public Hearing meetings on December 2, 2025; and
WHEREAS, the total budget and property tax levy by department is included as an attachment to this Board action and published in the official paper of record, the Hastings Journal, after budget adoption.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby
adopts the 2026-2030 Capital Improvement Program in the amount of $894,008,509; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby adopts the
2026 Dakota County budget as prepared, presented and set forth in the amount as follows:
Total Budget: $527,684,094
Property Tax Levy: $184,246,066
PREVIOUS BOARD ACTION
25-454; 9/23/25
ATTACHMENTS
Attachment: 2026 Budget by Department
Attachment: Presentation Slides
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Will Wallo
Author: Allie Regenscheid