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 preliminary levy by September 30, 2024.
The final levy, which cannot exceed the preliminary levy, will be brought to the council for review at the December 3, 2024 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 17, 2024 council meeting.
Staff recommends the city council adopt the property tax levy reviewed and discussed at the September 3, 2024 council meeting.
The proposed preliminary city levy is $26,744,050 an increase of $1,270,050 (4.99 percent) from last year. The proposed tax levy will have a minimal impact on the city's tax rate (slight increase) from 27.40 percent to 27.58 percent. For the median value home, that increased by 3.6 percent from $338,400 to $350,700, a property owner would see an increase of $17 annually in property taxes. Absent any change in a homes value from the previous year, homeowners can expect a tax decrease of $20.
Staff is also recommending the approval of the Economic Development Authority (EDA) levy. The EDA approved a 2025 levy of $500,000 (no change) at their meeting on September 3, 2024. However, state statutes require City Council approval prior to the tax levy becoming effective. Resolution R2024-117 approves the final EDA levy.
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 $347k of year-end fund balance to cancel the required levy for 2025 of the 2022A debt issuance.