Shakopee City Hall

Shakopee City Hall

The Shakopee City Council held a public hearing and presentation at the Dec. 6 meeting regarding the city’s property tax levy and budget for 2023.

The so-called Truth in Taxation hearing allowed for public comments about the budget and levy. Nate Reinhardt, the city’s finance director, led the presentation.

No changes were made to the levy compared to preliminary amounts set in September. This means the 2023 tax levy is still set for $23,892,000 — a $1,406,000, or 6.25%, increase compared to the 2022 levy.

Shakopee’s tax levy increase was shown as the lowest compared to ten other comparable cities, according to the presentation slides. This included levies from nearby cities like Savage and Burnsville. The citywide average across Minnesota for 2023 is 9.1%.

For the median value home increasing in value by 21.7%, from $284,700 to $346,500, the property owner should expect to see an increase of $95 annually in property taxes. Homeowners not seeing a change in value should expect to see a tax decrease of about $98.

The EDA levy amount also remained at $500,000, the same amount from last year’s levy.

According to the budget memo, Shakopee’s taxable market value reached $7.2 billion, an increase of $1.2 billion. New construction accounts for $127 million, more than 10%, of this increase.

Reinhardt also brought attention to some budget highlights for next year. The city’s tax levy will reduce the tax rate from 32.11% to approximately 28.54%. Reinhardt also noted anticipated property tax decreases for industrial and commercial properties and investment in public safety as well as parks and trails.

Just one resident spoke during the hearing. The budget and levies will come back to the city council for final approval at the Dec. 20 council meeting.