Discussion:
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, 2022.
The final levy, which cannot exceed the preliminary levy, will be brought to the council for review at the December 6, 2022 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 20, 2022 council meeting.
Staff recommends the city council adopt the property tax levy reviewed and discussed at the August 16, 2022 council meeting.
The proposed preliminary city levy is $23,892,000 an increase of $1,406,000 (6.25 percent) from last year. Much of the increase will be covered by new construction, as the city's taxable market value increased by $1.2 billion (19.4 percent), to $7.2 billion. New construction accounts for a 10.8 percent of the increase.
For the median value home increasing by 21.7 percent from $284,700 to $346,500, a property owner would see an increase of $91 annually in property taxes. Absent any change in value, homeowners can expect a tax decrease of $101.
Staff is also requesting the council approve a resolution cancelling a portion of the debt service levies for the 2016A Abatement Bond and the 2022A Improvement Bond. The 2016A debt issuance has sufficient funds available to pay for future debt service payments without levying the entire required debt service levy. Staff is proposing a transfer of $200k from the Local Projects Fund to cancel a portion of the 2022A debt issuance.