The City of Shakopee is required to comply with statutory deadlines for submittal of the property tax levy to Scott County and must certify the levy by September 30, 2020.

The final levy, which cannot exceed the preliminary levy, will be brought to the council for review at the December 1, 2020 council meeting.  This will also be the date that will serve as the public input meeting which provides the public an opportunity to comment on the budget and levy.  Final approval of the budget and levy needs to be approved by December 31, 2020 and is expected to occur at the December 15, 2020 council meeting.

Staff recommends the city council adopt the property tax levy reviewed and discussed at the September 1, 2020 council meeting and subsequently modified for the inclusion of the 24-7 fire staffing model and removal of the park development levy.  The preliminary 2021 levy represents a 3.13% increase over the 2020 levy.  This levy does not include the EDA special benefit levy, which is a separate levy requiring separate EDA and council approval.

Levy Impact

• The proposed levy decreases the city tax rate from 33.97% to 31.85%
• The median value home of $266,800 (6.3% increase in value) would see an annual tax impact of $5 (0.6%)
• If a house valued at the median value home had no change in it's value, that home could expect a $50 (6.0%) decrease in annual taxes
• Estimated city market value increased by $521 million (8.6%)
• New construction would allow the city to increase the levy by 2.1%, without impact property taxes on existing properties.

Staff is also requesting the council approve a resolution canceling debt service levies for specific debt issuances.  These debt issuances have sufficient funds available to pay for future debt services payments without levying the entire required debt service levy.