The final 2026 budget will be presented to the Prior Lake City Council for approval at 7 p.m.  on Tuesday, Dec. 9, at Prior Lake City Hall.

A public hearing will be held during the meeting to provide an opportunity for anyone who wishes to speak about the budget and share comments directly with the council members.

For 2026, the proposed city budget is approximately $52 million, with a proposed tax levy of $21.3 million, or a 7.46% increase from 2025, according to city manager Jason Wedel. Nearly half of the levy increase is for three new public safety positions. A recent staffing and compensation study showed the need for additional overnight police coverage and identified wage gaps when compared to similar metro-area cities.

The proposed budget does not mean every resident will see that same increase on their individual property tax bill, according to Wedel. Rather, for a median-valued home in 2026 — $433,600 — the estimated increase in the city portion of taxes is about 5.8%. That comes to roughly $76 per year or around $6.33 per month.

Another major focus of the 2026 budget is replacing aging infrastructure. Wedel said many neighborhoods built in the 1980s and 1990s are now reaching the point where their streets and utilities must be reconstructed.

Property owners who directly benefit from these projects pay a portion of the cost through special assessments. However, assessment amounts have held flat for the past two decades, even as project costs have increased.

The 2026 tax levy includes funding to supplement the street and utility replacement costs for the Northwood Road area.

Use this link for more detailed information on the city’s proposed budget: priorlakemn.gov/budget2026