The City Council unanimously approved the 2026 preliminary budget and tax levy at their meeting on Tuesday, Sept. 23.

For 2026, the proposed city budget is nearly $52 million, and the proposed tax levy is $21.3 million, an increase of 7.46% from 2025. Slightly more than half of the increase is needed to maintain current services. The remaining portion is allocated to public safety.

Recent Police Department staffing and compensation studies recommended additional personnel to ensure proper coverage, especially overnight, and identified pay disparities with comparable metro cities. As a result, three new positions have been added to the 2026 budget: a sergeant, a records specialist, and an information technology specialist to support police operations.

While the overall tax levy is proposed to increase by 7.46%, this does not mean that your individual property taxes (city portion) will increase by the same amount. For a median-valued home in 2026 ($433,600), the city portion of property taxes would increase by approximately 5.8%, about $76 annually or $6.33 per month.

Approval of the preliminary budget represents the maximum levy increase that can be assessed by the city. Residents will receive their Truth in Taxation statements for 2026 by mid-November, and a public hearing will be held at the City Council meeting on Tuesday, Dec. 9. Residents are welcome to attend and provide feedback at that time. For more detailed information about the budget, go to priorlakemn.gov/budget2026.