HomeMy WebLinkAbout09(A) - Resolution Approving an Amendment to the Local Intergovernmental Aid Agreement Between the City of Prior Lake and Shakopee Mdewakanton Sioux Community (SMSC) for Years 2025 - 2027 Report
ITEM: 9A
CITY COUNCIL AGENDA REPORT
MEETING DATE: September 09, 2025
PREPARED BY: Jason Wedel, City Manager
PRESENTED BY: Jason Wedel
AGENDA ITEM: Resolution Approving an Amendment to the Local
Intergovernmental Aid Agreement Between the City of Prior Lake
and Shakopee Mdewakanton Sioux Community (SMSC) for Years
2025 - 2027
RECOMMENDED ACTION:
Adopt a resolution approving an amendment to the Local Intergovernmental Aid Agreement with
the SMSC for the years 2025 - 2027.
BACKGROUND:
For many years the SMSC and the City of Prior Lake have had a collaborative relationship. The
original Local Intergovernmental Aid Agreement (LGA) dates back to July 30, 1993. These
agreements include providing mutual aid for each other. Over the years the SMSC has made
increasing annual contributions to the City as part of these LGA agreements. The current
agreement was approved by the City Council on December 10, 2024.
Since the agreement was finalized there have been two key developments that have
significantly impacted the City's police department operations and budget: a comprehensive
staffing study and a compensation analysis.
In 2024, the City engaged Berry Dunn to conduct an independent operational and staffing
review of the Police Department. This year-long study, presented in February 2025,
recommended eight additional full-time positions to better meet current and future service
demands, including patrol officers, a sergeant, an investigator, and a records specialist. For
2026, the City plans to implement two of these positions, including the sergeant and records
specialist, as well as hire an IT manager to support police operations.
Additionally, a market compensation study completed in early 2025 revealed that police salaries
in Prior Lake were below median levels when compared with 14 peer cities. In order to remain
competitive and attract and retain high-quality personnel, we have begun to implement
adjustments to bring compensation to a fair and sustainable level.
These two developments were presented to the SMSC Business Council earlier this month with
a request to increase the annual contributions by $125,000 in 2026 and an additional $125,000
in 2027. The SMSC Business Council agreed to the increased contributions and prepared an
amendment to the existing agreement which is attached.
These additional funds are greatly appreciated and will assist the City in meeting our shared
goals with the SMSC of providing excellent public safety services while honoring the spirit of
collaboration that continues to guide our relationship.
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
Item 9A
Page | 2
FINANCIAL IMPACT:
The existing agreement includes LGA contributions of $1,400,000 in 2025, 2026 and 2027.
Under the proposed amendment the LGA contributions will increase to $1,525,000 in 2026 and
$1,650,000 in 2027.
ALTERNATIVES:
1. Motion and second to approve a resolution approving the amendment to the Local
Intergovernmental Aid Agreement between the City of Prior Lake and the SMSC
for the years 2025 – 2027.
ATTACHMENTS:
1. Resolution - Approving an amendment to the Local Intergovernmental Aid Agreement
between the City of Prior Lake and the Shakopee Mdewakanton Sioux Community
(SMSC) for the years 2025 – 2027.
2. LGA Amendment
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 25-___
APPROVAL OF AN AMENDMENT TO THE LOCAL GOVERNMENTAL AID AGREEMENT
BETWEEN THE CITY OF PRIOR LAKE AND SHAKOPEE MDEWAKANTON SIOUX
COMMUNITY (SMSC) FOR YEARS 2025 - 2027
Motion By: Second By:
WHEREAS, the City of Prior Lake and SMSC are engaged in numerous cooperative endeavors;
and
WHEREAS, both parties seek to be good neighbors to their mutual benefit; and
WHEREAS, for 30 years the SMSC has provided financial payments to the City; and
WHEREAS, a new agreement was approved on December 10, 2024 for contributions in the
years 2025, 2026, and 2027; and
WHEREAS, since that agreement was approved the City conducted both a staffing study and a
compensation study for the Police Department which identified the need to
increase staffing and adjust salaries thereby increasing the budgets for future
years; and
WHEREAS, the SMSC has agreed to amend the current agreement to increase the
contributions for the years 2026 and 2027.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Council hereby approves the amendment to the Local Intergovernmental Aid
Agreement for the years 2026 and 2027.
3. The Mayor and City Manager are hereby authorized to execute the agreement on behalf of
the City.
Passed and adopted by the Prior Lake City Council this ____ day of __________ 2025.
VOTE Briggs Braid Churchill Lake Hellier
Aye
☐
☐ ☐ ☐ ☐
Nay
☐ ☐ ☐ ☐ ☐
Abstain
☐ ☐ ☐ ☐ ☐
Absent
☐ ☐ ☐ ☐ ☐
______________________________
Jason Wedel, City Manager
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Intergovernmental Aid Agreement Between.docx 2