Prior Lake City Council approves 6.7 percent preliminary tax levy increase

Prior Lake American

The Prior Lake City Council approved a preliminary tax levy increase of nearly 6.7 percent during a regular meeting on Monday. The maximum tax levy was set at about $12.9 million, but council members said the work on the budget and levy is not yet done.

A tax levy determines the amount of property tax for the year and is based on the value of a home. A preliminary tax levy, once approved, can be lowered but cannot be raised. The effect the levy would have on a home would depend on the home’s value.

The council also approved a preliminary budget during the meeting.

“When I do look at this I think we have a little bit more work to do, but it’s a good start to the conversation,” council member Zach Braid said.

The council discussed ways to reduce a proposed preliminary tax levy of 6.83 percent at a work session in August, including having some projects come from the general fund reserves.

About $261,800 will come from the general fund reserve to pay for ice and salt management replenishment, severance funding, replacing the city’s phone system and redesigning the city’s website.

“Staff has done a great job listening to council, weeding things out,” council member Annette Thompson said. “I do think we have a little more work to do, but I’m going to approve this ceiling tax levy tonight and know that we’re going to be doing some more work.”

More than 50 percent of homes in Prior Lake would have a tax increase of 3.4 percent or less, Finance Director Cathy Erickson said.

The proposed levy includes $525,150 for mandatory items including wage and benefits, overtime for various departments, increased cost of fuel, debt service and more. About $195,000 is included for Capital Improvement Plan projects including trail and equipment replacement.

The budget also includes a full-time police officer position starting in January and a full-time city clerk starting in July.

Prior Lake has had the highest crime rate index in Scott County for two years but the fewest sworn officers. Prior Lake is the only city in the metro without a full-time city clerk, according to the council memo regarding the project.

The council approved a 4.4 percent tax levy increase in 2017.

There will be a budget work session on Nov. 5 and a virtual town hall regarding the budget is tentatively planned for Nov. 6-8.

A public hearing for the budget and tax levy will be held during the council meeting on Dec. 3 at 7 p.m. The budget and tax levy would be adopted that night.