The Shakopee EDA levies their own separate tax, which is not part of the city's general property tax levy, and is identified separately on property tax statements.  The EDA levy is subject to to a limit of of 0.0185 percent of the city's estimated market value.  The EDA levy cap for 2023 is $1,118,928.  The EDA levy is applied to all taxable properties within the city including properties that are currently part of a tax abatement or tax increment plan.

The EDA levy is proposed at $500,000 which is no change from the previous levy.  The EDA levy is specifically designated for economic development activities and any funds unspent from year to year will remain in this fund for this purpose.

For the median value home value at $346,500, if the proposed levy of $500,000 is approved the annual property taxes on the median value home would be $23.  This compares to the 2022 median value home of $284,700 for taxes payable 2022 and annual EDA taxes of $22.

State statues require the approval of City Council, prior to the tax levy becoming effective.  The EDA preliminary levy will be forwarded to Council for approval and must be certified to the County Auditor by the deadline of September 30, 2022.  The final EDA levy will be approved in December.  Similar to the city's levy, the final levy can be reduced, but cannot be increased.

Attached is a 2023 preliminary EDA budget.  The budget includes $229k for wages and benefits which includes the Economic Development Coordinator plus a portion of the Planning & Development Director's time.  The EDA budget also includes $25k for legal services and $261k in professional services ($70k for facade loan requests/$91k for continued entrepreneurship programming/$25k for Main Street Programming/$75k miscellaneous consulting).