Dakota County residents can brace for rising costs as a nearly double-digit property tax increase is approved for the second year in a row.

The Dakota County Board of Commissioners approved its 2026 budget of $527.7 million, including a property tax levy of $184.2 million, on Tuesday, attributing rising costs to unfunded state mandates, internal cost pressures and a need to shore up reserve funds.

The county’s operating budget of $383.2 million will fund nearly 225 programs including public safety, community corrections, crisis services for children and adults, elections and library services, to name a few.

The overall budget is up less than 1% compared to last year’s budget of $523.1 million. The county portion of the property tax levy, up 9.9% compared to 2025, will cost the owner of a median-value single-family home an additional $68.22 on average, county finance director Will Wallo said at Tuesday’s meeting.

Commissioner Mike Slavik, who represents Farmington and Hastings, said he’s heard from residents that there is “some property tax fatigue” due to two years of significant increases.

Last year, the county also raised the tax levy 9.9%, totaling roughly $167.6 million. In 2025, that meant homeowners of a median-value single-family home saw their taxes go up around $40. And there could be more to come.

“The challenges we face this year don’t go away in 2027’s budget,” Slavik warned.

Challenges to the county’s budget are due, in part, to state-wide programs like the upcoming Paid Family Medical Leave program.

The program, which offers up to 12 weeks for both medical and family leave — with a total limit of 20 weeks a year — opens for all applicants on Jan. 1 and will launch with a 0.88% payroll tax. Dakota County will cover half of the premium costs associated with the program, with county employees covering the other half. The anticipated cost of the county’s portion in 2026 is $1.1 million, which will be paid for by the property tax levy, according to county spokesperson Scott Wente.

“It is absolutely imperative that we talk about the forces that are outside our control and the 116 state-mandated programs and the funding that we get, or don’t get,” said Commissioner Joe Atkins, who represents South St. Paul, West St. Paul and parts of Inver Grove Heights.

Budget breakdown

In Dakota County’s approved budget of $527.7 million, the largest funding sources are property taxes, which account for nearly 35% of the budget at $184.2 million, followed by state funding ($130.5 million or nearly 25%) and then federal funding ($62.6 million or nearly 12%), according to the county.

The remaining $150.4 million comes from charges and reimbursements, the county’s fund balance and other taxes, according to county documents.

About a third of the $184.2 million property tax levy will be used for public safety and corrections, Wallo said Tuesday. About a quarter of the levy will be used for social services with the rest being spread across fleet and facilities management, library services, welfare and child support collection, public health, parks, infrastructure, transportation and other public services.

Of the total budget, 55.6% will go to salaries and benefits for county employees, 28.7% will go to the capital improvement program and the remaining roughly 16% of the budget will be used for training, contracts and county support, Wallo said.

Budget cuts

To balance the budget, the county is cutting $8.8 million in spending, including more than 44 full-time equivalent positions.

The cuts, effective Jan. 1, include 35.8 full-time equivalents in Community Services, five in the Sheriff’s Office and 2.3 in the County Attorney’s Office, said Wente in an email.

Wente emphasized that the cuts did not result in any layoffs. Some positions that were cut were vacant. In other cases, staff will be moved to other positions within the county, he said.

Look back

Here’s a quick look at the county’s operating budget since 2015 and its most recent property tax totals:

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2015: $245 million.

2016: $269 million.

2017: $246 million.

2018: $249 million.

2019: $262 million.

2020: $278 million.

2021: $294 million.

2022: $290 million ($144.6 million in property taxes).

2023: $306 million ($147.4 million in property taxes).

2024: $336 million ($152.5 million in property taxes).

2025: $367 million ($167.7 million in property taxes).

2026: $383.2 million ($184.2 million in property taxes).