Dakota County Approves 2026 Property Tax Levy Increase and Advances Federal Grant Planning

So… here’s the deal. Dakota County just approved a 9.9% property tax levy increase for 2026. Not exactly the kind of news anyone’s excited to hear, especially when groceries, gas, and pretty much everything else already feels more expensive than it used to.

But let me give you the fuller picture. Because this isn’t just about the county asking for more of your paycheck. It’s about keeping certain doors open, the ones we all walk through whether we think about them daily or not.

Costs are up. Inflation’s chewing through budgets like a woodchipper, and at the same time, people are leaning more on county services. Public safety. Housing programs. Roads and infrastructure. Stuff you only notice when it doesn’t work.

The county board basically said: “If we don’t adjust, we can’t keep pace.” That means fewer deputies on patrol. Delayed road fixes. Less help for families one bad break away from losing their homes.

So yeah—it stings, but they’re framing it as a way to hold things together.

This part doesn’t usually make the headlines, but it matters just as much. Dakota County just finished its CAPER report. (Don’t worry—nobody actually calls it that outside government offices. It’s basically a giant receipt for how they spent federal housing and community development money last year.)

Here’s the short version: HUD—the federal housing folks—wants to see how every dollar is used. If counties don’t show their work, the funding dries up. And we’re not talking pocket change here. In 2024, Dakota County pushed out about $2.9 million in leftover pandemic relief money to help with housing, infrastructure, and other community needs. That’s huge.

And this isn’t just paperwork. It’s the kind of accountability that keeps millions flowing into our neighborhoods for affordable housing projects, homelessness support, and small-but-important improvements like fixing sidewalks or funding local services.

Here’s where it ties together. Local property taxes and federal funds—they’re two sides of the same coin. Taxes keep the daily stuff running. Federal money, when the county can secure it, fills in the gaps and helps with long-term community growth.

So when you hear “levy increase,” yeah, it’s frustrating. Nobody loves writing a bigger check. But the bigger picture is that it helps Dakota County keep the lights on locally and stay in good standing for future federal money. Without that combo, services we all count on—whether we realize it or not—start to fray at the edges.

From now through 2029, the county’s focusing on things like affordable housing, public infrastructure, and making sure growth is fair and balanced across communities. Big promises. And we’ll all see how that plays out over the next few years.

But for now? Just know this: your taxes are going up, yes. But the goal—at least as they’re telling it—isn’t about building fancier offices at the county building. It’s about keeping our communities safe, steady, and livable in a time where everything seems a little harder to afford.