HomeMy WebLinkAboutAug2025_2026 Preliminary Budget and Tax Levy2026 Preliminary Tax Levy and Budget
August 21, 2025 CEC Meeting
PriorLakeMN.gov
2026 Tax
Levy and
Budget
Schedule
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May/June/July – Personnel Plan, 10-year
Financial Plan, CIP Plan
July 23 – Preliminary Budget/Tax Levy
Discussion/CIP Debt Impacts – 2026 only
August 26– Budget Work Session, not needed
September 23 - Public Budget Meeting/Adopt
Preliminary Tax Levy and Budget
Nov. 11– Budget Work Session
Dec. 9 – Public Budget Meeting/Adopt Final Tax
Levy and Budget
Tax Levy and Budget Schedule
PriorLakeMN.gov
Overview – 2026 Preliminary Budgets
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PriorLakeMN.gov
General Fund Expenditures $23,927,000
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General Government
$5,096,000 21%
Public Safety - Police &
Fire $11,738,000 49%
Public Safety - All Other
$1,040,344 4%
Public Works
$2,989,823 13%
Parks & Recreation
$2,797,000 14%MV Debt Service Transfer
$266,000 1%
PriorLakeMN.gov
Budget Overview
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The proposed budgets reflect additional resources needed for the following areas:
•Proposed personnel funding for a Network Administrator (mid-year 2026 start), Police
Sergeant and Police Records Specialist
•Funding capital plans for PayGo strategy for annual capital replacement needs for
equipment/park equipment/facilities
•Unfunded mandates
•Inflationary/Contract increases for wages and commodities
•Reduction in the rate of residential development (Prior Lake is still experiencing
community growth, but at a slower rate than the previous several years is anticipated)
PriorLakeMN.gov
* Used March YTD wage growth of 4.3% as 72% of city
budget is personnel costs.
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2026 Base Tax Levy Considerations
Growth (New Construction)1.6%
Wage Growth *4.3%
Debt Service 0.9%
Unfunded Mandates 0.6%
Base Property Tax Levy Considerations 7.4%
PriorLakeMN.gov 7
•The 2026 proposed
tax levy increase is
$1,505,000
•The proposed tax
levy increase is 7.6%
•Public Safety
represents 42% of the
tax levy increase
Components of the Tax Levy Change
PriorLakeMN.gov
Property Tax Projection Summary
•Total CITY tax levy of $21,360,355 which is
a 7.6% increase from the prior year levy
based on the preliminary budgets.
•City tax rate of 31.4% (2.82% increase).
•Total EDA tax levy of $405,000 which is a
0% increase from the prior year levy based
on the preliminary budgets.
•EDA tax rate of .60% (4.97% decrease).
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CITY OF PRIOR LAKE
PROPERTY TAX PROJECTION SUMMARY - CITY
Adopted
Budget 2025
Proposed
Budget 2026
TAX LEVIES - CITY 19,855,410 21,360,355
TOTAL $ CHANGE IN TAX LEVIES 1,155,263 1,504,945
TOTAL % CHANGE IN TAX LEVIES 6.18%7.58%
CITY TAX CAPACITY TAX RATE 30.5%31.4%
Annual % Change -city only excludes EDA 0.74%2.82%
CITY MARKET VALUE TAX RATE 0.00464%0.00451%
Annual % Change 1.41%-2.95%
PROPERTY TAX PROJECTION SUMMARY - EDA
Adopted
Budget 2025
Proposed
Budget 2026
TAX LEVY - EDA 405,000 405,000
TOTAL $ CHANGE IN TAX LEVIES 15,000 -
TOTAL % CHANGE IN TAX LEVIES 3.9%0.0%
EDA TAX RATE 0.63%0.60%
Annual % Change -0.28%-4.97%
PriorLakeMN.gov
Seven County Metro Area Average Tax
Capacity Rate
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City Levy/Tax Capacity = Tax Rate
PriorLakeMN.gov
•City Levy/Tax Capacity = Tax Rate
•2026 Prior Lake City Tax Rate estimate
based on preliminary 2026 budget is
31.43%
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Scott County Tax Capacity Rate by City
City 2024 2025
Belle Plaine 88.96%93.46%
Credit River 17.10%15.76%
Elko New Market 46.25%46.80%
Jordan 57.23%56.79%
New Prague 42.43%44.88%
Prior Lake 30.30%30.50%
Savage 37.61%40.53%
Shakopee 27.40%27.77%
PriorLakeMN.gov
•Estimated market value has
increased 4% for pay 2026.
•The estimated increase in city
tax is $76 for a median valued
home of $433,600 for pay
2025.
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Residential Impact of the Proposed City
Tax Levy Change
% Net Net Net Net Net Net
of Inc/Dec Difference Inc/Dec Difference Inc/Dec Difference
Inc/Dec Total 25 vs 26 % Change 25 vs 26 % Change 25 vs 26 % Change
+15.01+%71 1%265$ 20.0%415$ 21.4%699$ 20.1%
+10.01-15.00%49 1%227$ 17.2%355$ 18.4%599$ 17.2%
+5.01-10.00%1,707 18%152$ 11.5%236$ 12.2%401$ 11.5%
+0.01-5.00%5,055 52%76$ 5.8%117$ 6.0%202$ 5.8%
No Change 630 6%39$ 2.9%57$ 2.9%103$ 3.0%
-0.01-5.00%2,223 23%1$ 0.1%(3)$ -0.1%3$ 0.1%
-5.01 - 10.00%8 0%(74)$ -5.6%(122)$ -6.3%(195)$ -5.6%
-10.00 - 15.00%1 0%(149)$ -11.3%(241)$ -12.5%(394)$ -11.3%
-15.01% +7 0%(187)$ -14.2%(301)$ -15.5%(493)$ -14.2%
9,751 100%
% EMV Value Range
# of
affected
Properties
Median $433,600 $600,000 $1,000,000
PriorLakeMN.gov
Questions?
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