The Shakopee City Council approved the 2022 preliminary tax levy and budget at its Sept. 21 meeting.
The preliminary city levy is $22,486,000. According to a news release from the city, the levy amount rose nearly 7% higher compared to last year, with an increase of $1,468,200.
Of this increase, $456,000 comes from new construction — accounting for almost 35% of the $464.2 million estimated total market value increase for Shakopee.
This aspect of the levy increase will not have any tax impact on existing properties, according to Financial Director Nate Reinhardt.
The city’s tax rate also increased from 32.11% to 32.17%, the first tax rate increase in five years for Shakopee.
Reinhardt presented this information to the City Council at the Sept. 21 meeting.
Reinhardt showed the breakdown of the budget and levy, tax capacity differences compared to the previous year and the impact of the levy.
The property owner of an average-priced $266,800 Shakopee home increasing in value by 6.7% will see a $65 increase in annual property taxes. If an average home’s value remains the same, the annual tax increase would be $2.
Mayor Bill Mars said this is a good indication of Shakopee’s growth and appeal.
“We’re growing,” Mars said. “Values are going up of course ... people want to come here, and that’s just a great sign.”
The council also approved the 2022 preliminary EDA special benefit levy. This levy amount increased by $150,000 to a total amount of $500,000. If this levy is adopted in December, the property owner of an average-priced Shakopee home will see an EDA-related tax increase from $15 a year to $22 a year.
The City Council plans to adopt the final budget and levy on Dec. 21, according to the 2022 preliminary levy and budget memo. The levy amount can be reduced by then, but will not be raised above the current amount.
A public input meeting on the levy and budget will be held at 7 p.m. Dec. 7 at City Hall, 485 Gorman Street in Shakopee.