Eden Prairie city officials set a preliminary 2025 budget and property tax levy on Tuesday, Sept. 3, the higher of two options reviewed in August. The favored option launches a multi-year series of hires in the Fire Department designed to improve emergency response times.
A 5.8% increase in the city’s property tax levy forecast for next year would provide roughly $450,000 more for firefighter hires than a 4.5% levy increase, which would keep 2025 city services about the same as in 2024.
The preliminary 2025 city property tax levy set Tuesday is $47.4 million for an overall city budget of $62.8 million, with fees from licenses, building permits, and programs – including Eden Prairie Community Center memberships – helping pay for expenditures not covered by property taxes.
The increase in general fund expenditures in the city budget is primarily driven by increased wages and benefits for city employees, including the 238 full-time employees. Wages and benefits represent about 70% of the entire general fund budget.
The numbers set this week can be lowered before a final budget and tax levy decision is made by the Eden Prairie City Council on Dec. 3, but they cannot be increased. Typically, the preliminary figures established by the city council in September don’t change.
Property owners will receive mailed notices over the coming weeks summarizing early property tax decisions made by local governments, including the city and school district, and advertising upcoming tax hearings where property owners can offer comments. The city’s tax hearing is expected to be Dec. 3.
City staff estimated that its tax levy would raise the city share of 2025 property taxes on a $543,700 Eden Prairie home by $144.
The increased spending is cushioned a bit by the fact that Eden Prairie’s overall tax base – a healthy mix of residential, commercial, and industrial properties – is continuing to increase, to an estimated $14.5 billion for 2025. There are lots of variations in value within that tax base, with commercial properties generally decreasing, industrial properties increasing, and residential properties remaining mostly the same.
City Manager Rick Getschow said the preliminary 5.8% increase in the city’s property tax levy is still favorable compared to several similar suburbs, including neighboring Bloomington, Minnetonka, and Edina.
“What I think is also good news is how we end up looking compared to our peers,” he said. “We look around and we see how we fare amongst other cities. Our taxable rate — the rate that’s multiplied by your property value … to give you your city property tax – is one of the lowest in Hennepin County. I know it’s one of the lowest in the metro area. There’s only one city of our similar size — peer city — that is looking at a levy (increase) less than 5.8.”
Among 10 comparables, that city is Plymouth, according to city staff.
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