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Shakopee council sets 2026 preliminary levy cap at 5.5% and approves related resolutions
Summary
The council approved resolutions setting the city’s 2026 maximum levy at a 5.5% increase from current projections, canceled portions of debt service levies using fund balance and approved a preliminary EDA levy; staff said the proposal lowers an earlier 6.22% estimate and that the council can only decrease the levy before final adoption.
The Shakopee City Council on Sept. 16 adopted several resolutions that set the city’s preliminary property tax posture for 2026. Finance staff told the council the proposed preliminary levy had been reduced from 6.22% (presented Aug. 19) to 5.5% and asked the council to adopt three resolutions to implement the plan.
Staff (Mr. Reinhart) described revenue and expense updates underpinning the proposal: a 5% growth in taxable market value (58% from new construction), a proposed $300,000 increase to the capital improvement levy targeted at street maintenance, and use of about $350,000 of positive general fund balance to offset part of next year’s debt service rather than increasing the levy. Staff also noted health‑insurance assumptions were updated downward (from 15% to 8.3%) and that personnel costs represent roughly 70% of general fund expenditures.
Council approved a resolution to cancel a portion of debt service levies so fund balance can be used; a separate resolution (R2025‑101) sets the city’s maximum levy for 2026 (the cap) and a third resolution (R2025‑102) approves the preliminary EDA special‑benefit levy (including a $50,000 EDA increase). Staff clarified that once adopted as a preliminary maximum the council may only lower the levy between now and final adoption in December.
Councilors asked for more detail on fiscal‑disparities contributions, median home value assumptions, and the railroad/public utility valuation shown on the county data; staff said county published data can be provided and offered to circulate the fiscal‑disparities recipient/contributor list from published county data.
The resolutions passed by voice vote. Staff will return with any refinements and supporting documents before final adoption.
