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Portions of the Shakopee Mdwakanton Sioux Community ( SMSC ) tribal lands are within the boundary of the City of Prior Lake as annexed in 1972.
The SMSC is a federally recognized Indian tribe formally organized under federal reservation status in 1969.
The overlap of a Minnesota Statutory City with federally recognized Indian Tribal lands resulted in litigation to clarify the boundary and voting rights.
In a 1984 United States District Court ruling, the court affirmed that the municipal boundary of the City of Prior Lake did include the tribal lands in question.
The Court further clarified that the tribal residents were thus residents of the City of Prior Lake entitled to vote in municipal elections and to emergency police, fire, and rescue services.
The Court ordered the City to provide emergency services on an equal basis as all other residents even though the federal trust status of the tribal lands deprives the City of the authority to tax the tribal lands to fund such services.
In recent years, the SMSC has paid the City of Prior Lake for the cost of those emergency services on a voluntary basis.

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