Dakota County will implement a double-digit property tax increase, staff cuts on the way
Dakota County will implement a double-digit property tax increase
Dakota County is considering a double-digit property tax increase, the first in more than a decade. County leaders say even with the increase, staff and service cuts are expected. FOX 9's Emily Pofahl has the story.
EAGAN, Minn. (FOX 9) - Dakota County leaders are weighing a significant property tax hike and want community input before making a final decision.
Public weighs in on proposed property tax hike
What we know:
Dakota County is considering three options for a property tax increase: a 21% hike, which would mean about $167 more per home per year, a 19% increase at $145 more per year and a 16% increase at $123 more per year. Every option includes cuts to staff and services.
Commissioner Laurie Halverson said, "We need to right that structural imbalance now, unfortunately."
The county’s cash reserves are running low. According to a presentation to the county board last month, Dakota County’s fund balance sat at $130 million in 2014. Over the last 12 years, Halverson said the county has dipped into those reserves to offset increased costs and budget changes. The projected fund balance for 2026 is just $1.2 million.
Halverson said federal funding reductions and changes to SNAP and Medicaid requirements left the county to shoulder an unexpected $10 million in extra costs.
Residents like Jon Lajambe, who has lived in Eagan for 34 years, shared concerns about rising costs. "It’s very high here in Eagan I think the taxes are. And I’m sure they’re not going down," said Lajambe. He added, "We’re just all trying to get by, with the war and everything, trying to make ends meet. Everything’s more expensive."
Departments facing cuts and community questions
Why you should care:
The proposed tax increases come with reductions in county library, parks and public health departments. AFSCME, the union that represents Dakota County workers, said morale among their members is low. The county is also considering cutting crisis workers, youth homeless outreach, and county corrections officers.
Halverson said, "Things that are not necessarily in our control are really putting us in a situation of crisis." She also addressed public concerns about spending, saying, "They're asking really good questions. What are you spending the money on? Where can you cut? Are you lean? And I think the county has really good answers to that."
County staff are meeting with residents at information sessions, including one Thursday night in Eagan, to answer questions and explain the options. There are two more open houses planned:
- Thursday, Sept. 10 from 5-6:30 p.m. at the Western Service Center in Apple Valley
- Tuesday, Dec. 1 from 5-6 p.m. at the Administration Center in Hastings
The Dakota County Board is expected to decide on the increase in September.