Shakopee EDA previews 2026 levy, proposes $50,000 admin transfer and EV charger request
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Summary
City staff presented the Economic Development Authority's proposed 2026 budget, including a recommended EDA levy of $550,000, a new $50,000 transfer to the general fund for administrative support, and a placeholder for a level 3 EV charger at Quarry Lake tied to a state grant and Xcel Energy contribution.
Shakopee — City staff on Oct. 21 presented the proposed 2026 Economic Development Authority (EDA) budget and described priorities, staffing allocations and special projects the EDA funds.
Staff recommended increasing the EDA property tax levy to $550,000 (a $50,000 increase) for 2026. The proposal includes funding for the economic development coordinator position (full time) and a share of planning/administrative staff time. New this year, staff proposed a $50,000 transfer from the EDA to the city’s general fund to cover administrative support the general fund provides to EDA operations (administration, finance and other services).
Staff reviewed comparable EDA levies in the region and noted that some nearby cities fund economic development out of their general funds rather than a separate EDA levy. The EDA fund had a reported small cash deficit in the 2024 audit (about $340,000) because the EDA advanced funds for River City Center improvements pending future tax-increment repayment; staff said a repayment plan is in place.
The presentation also included a one-time proposed expense for installing a level 3 electric vehicle charger at Quarry Lake. Xcel Energy has pledged approximately $125,000 for the necessary electrical work, and staff said a state grant program could cover the charger equipment if the city includes the item in the EDA budget and applies. Council members asked whether the charger is an appropriate EDA expense; staff said Xcel selected Quarry Lake based on distribution feasibility and that the EDA’s budget inclusion is needed to qualify for the state grant.
Councilors discussed the administrative transfer, the EDA fund balance, and the appropriateness of budget items. Staff framed the transfer as an allocation to ensure those who pay the EDA levy (including properties within TIF or abatement districts) are funding the administrative support that benefits EDA activities.
No final vote on the EDA levy occurred at the meeting; staff will return with budget documents as part of the formal levy and budget adoption process.
