The Dakota County Board of Commissioners on Tuesday, Dec. 16 approved the county's 2026 budget and property tax levy.
The budget reflects state and federal funding cuts and cost shifts, unfunded mandates, growing operating costs and a need to shore up the county's diminishing reserve funds.
“This was a challenge that we all faced due to many things that were out of our control," Dakota County Board Chair Mike Slavik said.
The operating budget will be $383 million. It funds nearly 225 programs, such as crisis services for children and adults, public safety, community corrections, environmental work, elections, parks, library services and more.
Total county spending, including operations and capital improvements such as building and road construction, will be $527 million.
About 70 percent of the operating budget covers programs required by the state or federal government, but some of those mandates are unfunded. In those cases, the county must pay for them, increasing levy pressure.
The county's total property tax levy will increase 9.9 percent to $184 million. A median-valued home of $384,800 will pay $783 in county tax next year, or $68 more than in 2025.
All seven Twin Cities counties will raise their levy next year. Among those counties, Dakota is projected to have the lowest levy per capita, the lowest county tax on a median-value home and the lowest tax capacity rate.
“We want to be mindful of the burden on our taxpayers while still providing high-quality services," Slavik said.
To balance the budget, the county is also cutting $8.8 million in spending, including more than 44 full-time equivalent positions. There were no layoffs. Employees affected by cuts were offered other county positions.
Only 17 percent of all property tax dollars in Dakota County fund county government. Cities, schools, townships and other taxing districts also levy property taxes.
The county budget plan was discussed publicly in detail at four budget workshops, at least two board meetings, a Budget and Property Tax Open House and the annual Budget and Levy Public Hearing in December.
For more information, visit the Budget & Financial Reports webpage.