The Eden Prairie City Council discussed the city’s 2026 proposed budget in September, its second review of the plan, and considered a preliminary 5.6% city tax levy increase.

City Manager Rick Getschow said Eden Prairie’s proposed levy would be the lowest among 12 comparable metro-area cities, where the average increase is about 8.5%.

For the owner of a median-valued Eden Prairie home, about $560,000, the city portion of the tax bill would rise about 8% – a $142 increase, from $1,723 to $1,865.

The council first reviewed the budget at its July 15 workshop and will take it up again Dec. 2, when residents can share their views.

Other types of property taxes would rise more modestly or even fall. Commercial real estate taxes are projected to decrease 3.6%, down $543 from $15,205 to $14,662. Apartment buildings would see a 0.56% increase, or $408, from $72,795 to $73,203.

Commercial real estate values are down about 6% and industrial values are down 0.2%. Together, they declined about 3% in median value. Much of that drop stems from the post-pandemic decline in office space demand, as remote and hybrid work have reshaped the commercial market.

The median estimated market value of a single-family home rose about 3% this year and has climbed from about $360,000 in 2017 to its current level.

With residential values climbing and commercial values declining, Getschow said, the tax burden is shifting more heavily onto homeowners across the metro.

“What everyone in the not only Twin Cities but the seven-county metro area is going to see is that the burden of the taxation, not just in Eden Prairie, but throughout the metro area, may fall a little bit more on residential property,” Getschow said. “That is because commercial, mainly commercial property values have fallen.”

Where is the money going?

The biggest expenditures in the city’s 2026 budget are increased funding for the police and fire departments. The police department’s budget will rise 11.6% – about $2.3 million – and the fire department’s will increase 11.1% – about $900,000 – in 2026.

The police department has started a remodeling project to provide more space to operate, park vehicles and expand staffing. The remodel is set to be completed in May 2026, with the department moving in that summer.

The remodeling plan also calls for moving some Eden Prairie City Center spaces, such as the Heritage and Preserve rooms, from the first floor to the second. The Eden Prairie Historical Society will remain on the first floor, but other spaces moved upstairs will be leased after the remodel.

The police department also continues to increase staffing, recruitment and training, Getschow said. 

Getschow said a $500,000 debt levy will help to pay for the updated facilities and will not carry over to the 2027 budget. 

The fire department will expand its full-time staff to meet response time standards. 

A study by California-based Citygate found Eden Prairie’s response times are four minutes longer than the standard. As of 2023, the average time for a fire truck to reach the scene from the initial call was 11 minutes, 48 seconds.

At a July 15 council workshop, Fire Chief Scott Gerber said that the fire department wants to expand its full-time staff to help reduce response times. The department has 13 full-time workers and 94 part-time duty crew firefighters.

Expanding staffing would allow more firefighters on duty per shift, helping reduce response times, Gerber said.

Getschow said 2026 is an election year, warranting increased spending for the administrative budget. The administrative budget for 2026 is above 5% to accommodate increased expenses for the biennial elections. 

Total city employee wages will also increase by 6.1% in 2026, accounting for a 3% base wage increase for all employees, Getschow said. The increase also reflects higher health insurance costs, and includes a 1% levy for Fire Department staffing approved in 2025.

Overall, Getschow said the plan will help the city maintain its high-quality service levels for residents.

“The plan is to be fiscally prudent, budget conscious, and to maintain service levels,” Getschow said. 

Correction: An earlier version of this story misstated details of Eden Prairie’s proposed 2026 budget. The City Council considered a preliminary 5.6% tax levy increase; the 8% figure refers to the impact on a median-valued home. The story also misstated the purpose of a 1% levy, which funds fire department staffing, not a response time study.