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, 2023.
The final levy, which cannot exceed the preliminary levy, will be brought to the council for review at the December 5, 2023 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 19, 2023 council meeting.
Staff recommends the city council adopt the property tax levy reviewed and discussed at the August 15, 2023 council meeting.
The proposed preliminary city levy is $25,473,000 an increase of $1,581,000 (6.62 percent) from last year. The city's taxable market value is at $7.79 billion, which is an increase of $574 million (8.0%) from last year. The increase can be attributed to apartment, commercial and industrial properties. As a result of the growth in market values the proposed tax levy will decrease the city's tax rate from 28.585 percent to 27.463 percent.
For the median value home, decreasing by 2.6 percent from $346,500 to $338,400, a property owner would see an decrease of $62 annually in property taxes. Absent any change in value, homeowners can expect a tax decrease of $38.
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. Additionally, City Council set aside $226k of year-end fund balance to cancel a portion of the 2022A debt issuance.