The Prior Lake City Council has unanimously approved the city’s 2026 budget, totaling $52 million. This budget includes a $21.3 million tax levy, marking a 7.46% increase from the previous year. The primary focus areas are public safety enhancements and infrastructure improvements.
Investing in Public Safety
Nearly half of the levy increase is allocated to bolster public safety. A recent staffing and compensation study identified the need for additional personnel, including a police sergeant, a police records specialist, and an IT specialist to support police technical needs. The study also highlighted wage disparities for officers compared to similar-sized metro cities. Addressing these needs underscores the city’s commitment to ensuring residents’ safety around the clock.
Infrastructure Improvements
The 2026 budget also prioritizes replacing aging infrastructure. Many neighborhoods developed in the 1980s and 1990s require street and utility reconstruction. While property owners benefiting directly from these projects contribute through special assessments, these amounts have remained unchanged for two decades despite rising project costs. The new tax levy includes funding to supplement street replacement costs for projects like the Northwood Road Reconstruction and others outlined in the city’s Capital Improvement Plan.
Impact on Homeowners
For homeowners, the 7.46% levy increase does not directly translate to an equivalent rise in property taxes. Approximately 80% of property owners will see an estimated increase of less than 5% in the city portion of their property taxes. For a median-valued home in 2026 ($433,600), this equates to roughly $76 per year.
City Manager Jason Wedel emphasized the city’s dedication to delivering high-quality services efficiently. Residents seeking a detailed summary of the 2026 budget can visit the city’s official website.