Dakota County sets 18.5% 2027 tax levy cap
The Dakota County Board set a maximum 18.5% property tax levy increase for 2027, authorizing 17% for operations and 1.5% for reserves.[1]
Some commissioners called the decision "painful" and pushed to lock future surpluses into rebuilding reserves to avoid repeating years of deficit spending.[1]
The county's fund balance fell from $127 million in 2020 to a projected $6 million in 2026, despite auditor guidance to keep about 35% of expenditures in reserve.
Other metro counties are targeting 7-9% levy increases, making Dakota's planned hike roughly twice as large.
Internal projections shown to the board estimate the 2028 levy increase could be as high as 11.6% even after the 2027 hike.
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📌 Key Facts
- Dakota County Board set a maximum 18.5% property tax levy increase for 2027, with 17% for operations and 1.5% for reserves.
- The county’s fund balance fell from $127 million in 2020 to a projected $6 million in 2026, despite auditor guidance to keep about 35% of expenditures in reserve.
- Other metro counties are targeting 7–9% levy increases, making Dakota’s planned hike roughly twice as large.
- Some commissioners opposed the size of the increase and insisted future surplus must be locked into rebuilding reserves to avoid repeating years of deficit spending.
- Internal projections presented Tuesday estimate the 2028 levy increase could be as high as 11.6%, even after the 2027 hike.
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September 23, 2026