Dakota County Property Taxes Could Jump Double Digits for 2027

TLDR

• Dakota County is looking at a double-digit property tax increase for 2027 — reporting describes a working range of roughly 14% to 24%, still being refined.
• One set of scenarios officials have floated: a 16%, 19%, or 21% increase, which would add about $123 to $167 a year to the county share of a typical home's bill.
• The county says its unassigned fund balance is projected to fall to about $1.2 million — far below prior levels, leaving little financial cushion.
• Possible cuts are on the table too: libraries, parks, public health, crisis workers, youth homeless outreach, and corrections.
• In September the board sets a maximum proposed levy (it can go lower later, not higher). The final vote is expected in December. Public info sessions: Sept. 10 in Apple Valley and Dec. 1 in Hastings.

So here's the deal. If you own a home anywhere in Dakota County — Eagan, Apple Valley, Lakeville, Hastings, Rosemount, Farmington, Burnsville — this one could hit your wallet. The county is weighing a double-digit property tax increase for 2027, and it's also looking at cutting some services. Let's break down what's actually happening.

Why Is the County Talking About Such a Big Increase?

The short version? The county's savings cushion is nearly gone.

The county says its unassigned fund balance is projected to fall to about $1.2 million. Think of that fund like a rainy-day account. It used to be much bigger — around $130 million back in 2014. A drop that steep leaves the county with very little financial wiggle room.

Commissioner Laurie Halverson says a big chunk of the problem came from Washington. Federal funding got cut, and rules around SNAP (food help) and Medicaid (health coverage) changed. That stuck the county with about $10 million in extra costs it didn't plan for.

"We need to right that structural imbalance now, unfortunately," Halverson said.

Translation: the county has been leaning on savings to cover the gap, and that cushion is almost used up.

How Much More Could You Pay?

Here's where it's important to be careful — nothing is locked in, and the numbers are still moving.

Reporting describes a working range of roughly 14% to 24% for the increase, with scenarios still being refined. Within that, officials have floated a few specific options. Here's what those would mean for the county share of a typical home's bill:

• 21% increase → about $167 more per year
• 19% increase → about $145 more per year
• 16% increase → about $123 more per year

Two big caveats. First, this is only the county slice of your property taxes. Your city, your school district, and any referenda set their own amounts on top of that. Second, your actual bill can land differently depending on your home's market value, how it's classified, local levies, and other factors. So these are ballpark figures for a typical home, not a promise about yours.

Even so, plenty of folks are already feeling stretched.

"It's very high here in Eagan, I think the taxes are," said Jon Lajambe, who's lived in Eagan for 34 years.

What Could Get Cut?

A tax increase isn't the only thing on the table. The county is also looking at trimming services to help close the gap. On the possible chopping block:

• The county library, parks, and public health departments
• Crisis workers
• Youth homeless outreach
• County corrections officers

So even with higher taxes, some of the things your tax dollars pay for could shrink. That's the part a lot of residents are wrestling with.

To her credit, Halverson says the pushback is fair. "They're asking really good questions. What are you spending the money on?" she said.

If you want the play-by-play on how local budgets like this get decided, we read the meeting notes so you don't have to — it's kind of our whole thing.

What Happens Next — and Why September Isn't the Final Word

Here's a piece that trips people up. The September step isn't the final decision.

In September, the board sets a maximum proposed levy. That's a ceiling. After that, the county can bring the number down, but under Minnesota law it can't raise it above that maximum. The final budget and levy vote is expected in December.

Before then, there are public info sessions where you can hear the details and ask questions:

• Sept. 10 — Apple Valley
• Dec. 1 — Hastings

This is the part where your voice actually matters. The number isn't final until the December vote. If you've got thoughts — about the tax amount or about which services get cut — showing up (or emailing your commissioner) is how residents get heard.

Want stuff like this landing in your inbox before it hits your tax statement? Sign up for the free South Metro Scoop newsletter — twice a week, no fluff. And if you've been following our other Dakota County government coverage, this one fits right in.

The Bottom Line

Dakota County's financial cushion is nearly gone, so a property tax increase for 2027 is very much on the table — the open question is how big. Reporting points to a working range of about 14% to 24%, and some services could get leaner on top of that. For a typical home, the scenarios officials have floated would add somewhere around $123 to $167 to the county share, though your own bill can differ.

The board sets its ceiling in September and takes the final vote in December, so there's real time to weigh in. Mark the Sept. 10 Apple Valley session if you want to be in the room before the number gets locked. We'll keep tracking this one and let you know where it lands.