Budget

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The City of Shakopee is on a Jan. 1 through Dec. 31 fiscal calendar. The city administrator collaborates with City Council and city departments to develop the annual budget to ensure the city continues to provide quality public services to our residents and businesses at a reasonable price. 

2018 Budget

At its Nov. 21 meeting, the City Council reviewed the proposed 2018 operating budget. The proposed budget and levy includes no impact to the average homeowner whose property valuation remains unchanged.

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Among the proposed changes for the 2018 budget include:

  • Six new full-time positions focused on public safety, planning and development
  • 3 percent cost-of-living wage increases and a 19-percent health insurance increase
  • Restoring internal service charges to ensure long-term sustainability and replacement of city assets
  • Increased natural gas and electric charges for the Community Center and Ice Arena
  • Increased revenue for the Community Center and Ice Arena and building permits
  • Restructure sanitary sewer rates to reflect more accurate distribution of expenses. Currently, Shakopee property owners pay $2.42 per 1,000 gallons, which is well below the $2.53 rate the Metropolitan Council Environmental Services charges the city. In 2018, the rates will be adjusted to reflect where the funding goes.

 

2017

Proposed 2018

Flat rate per household

$6.50

$2.75

Flow rate (per 1,000 gallons)

$2.42

 

City rate (per 1,000 gallons)

 

$.80

Metropolitan Council Environmental Services rate (per 1,000 gallons)

 

$2.45

 

In September, the City Council approved a maximum preliminary levy increase of 2.58-percent over 2017 taxes. However, since then, city staff has been able to reduce its levy request by more than $154,000, resulting in a 1.77-percent increase over 2017. 

In addition, the council approved levying $350,000 under the Economic Development Authority (EDA) special benefit levy. Previously, the city has levied these funds as part of the general fund levy. However, moving the funds increases budget transparency. This levy will now appear as a separate line item on tax impact statements, approximately $20 for the average-valued home. Overall, this is a budget neutral move.

Thanks to new growth and budget restructuring, the levy is anticipated to have minimal impact on most residential properties. For example, if a property's value remains unchanged from 2017, the average-valued Shakopee house ($243,100) would see an annual levy decrease of $30. With the EDA levy, this would result in a $10 city tax decrease for 2018. 

A final budget and levy must be approved by the end of the year.

2017 Budget

The City Council approved its 2017 tax levy, calling for a 7.47-percent increase from 2016. Thanks to increased tax capacity and commercial/industrial growth, the levy is anticipated to have minimal impact on the average Shakopee homeowner. In fact, the median value home ($229,100) will see a small reduction in their city taxes of $9.49.

Tax Rates for Taxes Payable 2017