City of Prior Lake, MN
City of Prior Lake, MN

City Council Approves 2020 Budget and Tax Levy

Monday night the Prior Lake City Council approved the 2020 city budget of $30.9 million and set the final property tax levy at $13.6 million. This is a property tax levy increase of $823,000 from 2019 but a decrease of 2.07% to the city tax rate due to the city’s tax base growing by 9% as a result of new residential and commercial growth. For an average valued home, two-thirds of property owners will see an increase of approximately $7.00 (.6%) or less in the city portion of their 2020 annual property tax. The increase is a result of most properties having an appraised value that is higher in 2020 than it was in 2019.

As part of the 2020 budget, the city will add a new part-time IT staff person and increase the hourly wage for on-call firefighters, as well as address an increase in personnel costs which includes benefits and pension obligations. The budget also includes additional funding for the capital improvement program for equipment and trail replacement, Police Department funding for equipment and training, and Economic Development Authority (EDA) funding to assist commercial growth and expansion in Prior Lake.