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New Prague council sets 7% preliminary levy, flags parks and aquatic center as cost drivers
Summary
At a special budget meeting the New Prague City Council agreed to a 7.0% preliminary levy, citing rising parkboard requests, an operating shortfall projected at the aquatic center and reserves planning as key factors driving the draft budget.
The New Prague City Council set a preliminary levy of 7.0% on a motion to file the required notice with the Minnesota Department of Revenue, signaling the starting point for the 2026 budget process.
Council members spent the meeting scrutinizing the drivers behind that preliminary rate. Staff told the council the aquatic center — operated under a joint powers arrangement with the school district — projects a preliminary 2025‑26 loss of roughly $173,000 "per entity," and councilors pressed for more detail and for a review of the joint powers agreement to determine whether the city can gain more operational oversight.
Parkboard requests were another prominent factor. The parkboard’s recommended general‑fund contribution in the packet was listed as $110,000 for 2026, a sharp increase from figures of roughly $30,000–$50,000 in earlier years and from last year’s reported ~$78,000. Councilors asked the parkboard to prioritize items or move eligible work to developer‑funded capital or the park equipment fund. Specific line items discussed included a $30,000 city‑center master plan (potentially eligible for small‑cities or EDA grants), $40,000 for a hockey/pickleball concrete surface and $35,000 for Memorial Park field sprinklers.
Councilors and staff also debated the extent to which current reserves and one‑time fund balances should be used to smooth levy impacts versus being returned to taxpayers. Several members urged preserving funds for major upcoming capital needs (police station, fire apparatus, building maintenance), while others recommended targeted use of reserves to reduce spikes and to keep the tax burden steady.
Staff said some planned fund earmarks already appear in the packet (for example, equipment and facilities accounts) and suggested moving certain planned contributions into debt‑service or targeted reserve accounts to make future levy impacts more transparent. The council directed staff to continue work on the park and aquatic questions and to present the formal preliminary‑levy resolution at the first September meeting.
The council closed the special budget meeting after a short wrap up and scheduling discussion. The preliminary levy is a filing and not the final rate; council members reiterated that the published preliminary percentage typically provides flexibility and is adjusted before final adoption.
