The purpose of this report is to provide summary 2026 budget information concerning the City of Prior Lake to interested citizens. The budget is published in accordance with Minnesota Statutes Sec 471.6965. This is not the complete City budget. The complete City budget may be examined at Prior Lake City Hall, 4646 Dakota Street SE, Prior Lake, MN or on the City website (www.priorlakemn.gov).
The City Council approved this budget on December 9, 2025.
Governmental Funds 2026 Adopted Budget
| Budgeted Governmental Funds | 2024
Actual |
2025
Budget |
2026
Adopted |
|
| Revenues
Property Taxes $ |
18,985,190 | $ 20,260,410 | $ 21,742,133 | |
| Special Assessments | 2,720,592 | 872,356 | 734,378 | |
| Licenses and Permits Intergovernmental Revenues
Federal |
868,936
12,350 |
550,842
1,000,000 |
472,710
212,500 |
|
| State | 1,285,036 | 1,172,867 | 1,347,553 | |
| County | 27,815 | – | – | |
| Other Local Units | 2,298,129 | 2,586,967 | 2,685,835 | |
| Charges for Services | 3,254,789 | 2,169,310 | 2,110,084 | |
| Fines and Forfeits | 103,766 | 108,000 | 108,000 | |
| Interest Earnings | 1,103,342 | 525,200 | 532,800 | |
| Miscellaneous Revenues | 638,406 | 119,800 | 297,300 | |
| Total Revenues | 31,298,351 | 29,365,752 | 30,243,293 | |
| Other Financing Sources | ||||
| Proceeds from Borrowing | 1,580,000 | 1,545,000 | 1,775,000 | |
| Sale of Property | 299,790 | – | – | |
| Transfers from Other Funds | 2,883,955 | 2,804,140 | 2,033,156 | |
Total Revenues and Other Financing Sources $36,062,096 $33,714,892 $34,051,449
Expenditures
Current
| General Government | $ 4,246,808 | $ 4,558,658 | $ 5,007,012 |
| Public Safety | 10,642,427 | 11,963,043 | 12,926,899 |
| Streets and Highways | 2,657,086 | 3,055,021 | 2,959,744 |
| Culture and Recreation | 2,612,011 | 2,840,936 | 2,779,896 |
| Economic Development | 156,078 | 339,838 | 270,548 |
| Total Current Expenditures | 20,314,410 | 22,757,496 | 23,944,099 |
| Debt Service – Principal | 4,202,801 | 4,278,731 | 4,205,000 |
| Interest and Fiscal Charges | 1,019,737 | 921,517 | 919,592 |
| Total Capital Outlay | 2,994,678 | 6,410,812 | 5,540,600 |
| Total Expenditures | 28,531,626 | 34,368,556 | 34,609,291 |
| Other Financing Uses
Transfers to Other Funds |
345,23 | 1,842,224 | 675,706 |
| Total Expenditures and Other Financing Uses | $28,876,829 $36,210,780 $35,284,997 | ||
| Increase (Decrease) in Fund Balance | $7,185,267 $(2,495,888) $(1,233,548) | ||
| Property Tax Levy Requirement to Fund these Budgets | $19,105,290 $20,260,410 $21,742,133 | ||
Enterprise Funds 2026 Adopted Budget 2026
Operating Revenues Charges for Services Adopted 2026 Budget 2026 2025
Water Sewer Water Quality Budget Budget
$5,659,319 $6,007,314 $2,127,213 $13,793,846 $ 13,518,751
Total Revenues $5,659,319 $6,007,314 $2,127,213 $13,793,846 $13,518,751
Operating Expenses $6,297,440 $5,331,231 $1,228,041 $12,856,712 $10,642,849
Operating Income (638,121) 676,083 899,172 937,134 2,875,902
Nonoperating Revenues (Expenses)
| Interest Earnings | $ 237,900 | $ 119,500 | $ 100,100 | $ 457,500 | $ 372,200 |
| Bond Proceeds | – | – | – | – | – |
| Principal and Interest | (162,500) | (162,500) | (89,650) | (414,650) | (415,330) |
| Income (Loss) before Operating Transfers | (562,721) | 633,083 | 909,622 | 979,984 | 2,832,772 |
| Transfers In (Out)* | (1,929,450) | (1,041,000) | (476,000) | (3,446,450) | (2,303,316) |
| Net Income (Loss) | $ (2,492,171) | $ (407,917) | $ 433,622 | $ (2,466,466) | $ 529,456 |
* Transfers for operating and debt service