New growth, budget transformation result in proposed 2019 tax levy reduction
At its Sept. 4 meeting, the City Council reviewed the preliminary levy and budget. The 2019 preliminary levy is expected to be reduced by more than $30,000 from the 2018 levy. This reduction is possible due in part to strong revenue expectations and diversification, right-sizing of operations over the last couple years and the transformational changes in the budget process that have allowed the budget to be more transparent and a better reflection of actual operations than in the past years.
This past year, the average market value of homes in Shakopee increased by 5.3 percent from $242,100 to $255,000 for taxes payable 2019. The estimated annual city tax impact for homes that experienced an increase in value from 0 to 5 percent will be a tax decrease of about $39, or about 4.5 percent. Absent any change in value, homeowners can expect a tax decrease of approximately $62, or 7.2 percent.
The chart below provides a comparison of the proposed 2019 levy for three different valued homes, including the average value home of $255,000.
The proposed budget also decreases our current tax rate, lowering it from 37.971 percent to an estimated 35.231 percent. These tax rates include the Economic Development Authority levy, which was separated from the general levy last year. The chart below compares the city’s tax capacity and rate over the past 11 years, including the 2019 preliminary levy.
The council is expected to take official action on the preliminary budget at its Sept. 18 meeting. Homeowners should watch for their annual proposed 2019 taxation notices arriving in mailboxes in November.