Discussion:
The City of Shakopee is required to comply with the statutory deadlines for submittal of the property tax levy to Scott County and must certify the levy before September 30, 2017.
The levy amount that will be certified to Scott County before September 30, 2017 is the base for budget work that will be brought back to the City Council for continuing budget discussion in October and November.
The final levy, which cannot be higher than the preliminary levy, but can be lower, will be brought to the Council for review at the December 5, 2017 council meeting. This will also be the date that will serve as the Public Input Meeting which provides the public opportunity to comment on the budget and levy. Final approval of the budget and levy needs to be approved by December 29, 2017 and is expected to occur at the December 19, 2017 council meeting.
Staff recommends the City Council adopt the property tax levy as reviewed and discussed on August 29, 2017. The preliminary levy increase represents a 2.58% increase over the 2017 levy. This levy does not include the EDA special benefit levy, which is a separate levy requiring separate EDA and Council approval. Adding the EDA levy onto the city levy would increase the city associated levies by approximately 4.43%. Given the city's increase in new construction tax capacity for taxes payable 2018, an average valued home will see an annual increase of about $20 outside of property valuation increases.
Attached is the budget memo that was provided at the August 29, 2017 work session which provides specifics on the preliminary levy, valuation changes for residential properties and the levy impact for residents. Also attached are graphs that depicts a 10-year levy comparison, a tax capacity and tax rate comparison and a comparable cities 2018 preliminary levy comparison.
Staff is also requesting the Council approve a resolution canceling the debt service levies for specific debt issuances. These debt issuances have sufficient fund balances available to pay for future debt service payments without levying the entire required debt service levy.