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, 2021.

The final levy, which cannot exceed the preliminary levy, will be brought to the council for review at the December 7, 2021 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.  The final budget and levy is expected to occur at the December 21, 2021 council meeting.

Staff recommends the city council adopt the property tax levy reviewed and discussed at the August 17, 2021 council meeting and subsequently modified and reduced by $212,000. The reduction is primarily a result of adjusting the health insurance increase from an estimated 15 percent increase to a 4.5 percent increase, split between employer/employee.

The proposed preliminary city levy is $22,486,000 an increase of $1,468,200 (6.99 percent) from last year.  Much of the increase will be covered by new construction, as the city's estimated market value increased by $464 million (7.1 percent), to $7.0 billion.  New construction accounts for a 34.9 percent of the increase.

For the median value home increasing by 6.7 percent from $266,800 to $284,700, a property owner would see an increase of $65 annually in property taxes.  Absent any change in value, homeowners can expect a tax increase of $2.

Staff is also requesting the council approve a resolution cancelling the debt service levy for the 2016A Abatement Bond.  This debt issuance has sufficient funds available to pay for future debt service payments without levying the entire required debt service levy.