Prior Lake City Council approves 4.4 percent levy increase

Prior Lake American

The Prior Lake City Council approved the 2018 budget and tax levy during Monday night in a 4-1 vote.

Council member Zach Braid dissented.

The tax levy of a little more than $12 million is an increase of 4.4 percent from 2017.

The budget includes two full-time staff, a maintenance worker and a police officer, a part-time community service officer, a full-time drug task force officer funded partly by the Shakopee Mdewakanton Sioux Community and a temporary contract building official to help with inspections in 2018 due to the number of projects constructed.

Council members debated pushing back the hiring of the positions until the spring in order to reduce the levy but ultimately approved the motion anyway.

Due to an aging sidewalk system and higher cleaning costs, repair and maintenance costs increased in 2018. Employee retention and training costs also increased due to the city losing 21 percent of its workforce in two years.

The total budget of more than $33.5 million is 6.6 percent higher than the 2017 originally-adopted budget. The general fund is more than $12.7 million as well as expenditures.

The general funds include 45 percent to public safety, 22 percent to general government, 16 percent to public works, 15 percent to parks and recreation and two percent for debt transfer. The city tried to align the budget with the 2017 community survey results.

At a town hall on the budget on Nov. 9, Mayor Kirt Briggs said the budget does match up with what staff saw in the survey.

"I think it lines up very closely, certainly around public safety," Briggs said. "I think city staff and the council have done a great job at aligning the tax dollars with the needs and desires of the community."

Other major purchases include a dump truck, fire truck, street sweeper and a police squad car. Council member Annette Thompson asked if all of that equipment was needed in one year. Finance Director Cathy Erickson said the purchases were following the Capital Improvement Plan.

"It's now time to execute the plan and follow through on when we need to do these purchases," Erickson said.

Thompson said she isn't concerned about the levy, but wants to reduce the $5 million in city debt.

The city also plans to add more than $94,000 to the reserve fund. According to the presentation to council, 41 percent of residents will see a decrease in their city taxes barring change in market value.

Several residents spoke up during the meeting that their home values had increased more than 10 percent and up to 20 percent.

City Manager Frank Boyles said the residents should contact a Scott County appraiser as the city contracts with Scott County for appraisals.

The budget also shows that the Shakopee Mdewakanton Sioux Community is providing $440,000 to fund policing services but that the city is hoping for an increase in the next two years of the agreement, according to the memo.

Contract negotiations will likely conclude in December.

Briggs did not refer to the community but said he believed there will be additional revenue coming to the city through local government aid.

"Those are dollars that are not coming from taxpayer pockets," Briggs said. "Those are dollars that can offset debt or potentially offset the levy increase. There will be a choice before us as to how those potential revenue dollars are allocated."

The city will hopefully know that information by the meeting on Dec. 11, Briggs said.

In other action at the Dec. 4 meeting, the council:

• Approved the sale of an on-sale liquor license for Artisan Nexuz LLC.

• Approved the 2018 official fee schedule and increased utility charges.

• Approved the consent agenda which included an agreement between the Shakopee Mdewakanton Sioux Community, the city of Prior Lake and other governmental agencies for policing Club Nomadic, approving polling locations for 2018 and authorizing an amendment with AT&T for the water tower antenna agreement.