2019 City of Shakopee Budget

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the top 3 percent of the cities nationwide. In effect, the city is in outstanding financial shape and will continue to be so due to both staff efforts and our steady growth. Development is expected to continue at a rapid pace through the next several years due in part to a renegotiated annexation agreement with Jackson Township. Redevelopment in the downtown district and Canterbury area is expected to spur additional economic opportunities within the city. These developments help account for new growth in the city’s tax base that helps reduce the tax burden of current residents and businesses. Prudent planning and a strong economy have afforded the city the ability to reduce its property tax levy for 2019. The city is experiencing budget pressures, most notably from increasing infrastructure construction and maintenance costs and from general personnel costs, neither of which are unique to Shakopee nor other local governments. Fortunately, these pressures are mitigated by our previous work to financially position our budgets and by right-sizing our operations. Schedule for budget and property tax levy development Date Who What July 17, 2018 Council/Staff Review Preliminary Capital Improvement Plan (CIP) September 4, 2018 Council/Staff Review Maximum Levy, review initiatives and requests September 18, 2018 Council

Adopt proposed maximum tax levy for City and EDA. Adopt final 2019-2023 CIP Certify maximum tax levy to the County which will be used for proposed property tax notices Proposed tax notices sent to owners Work session to review budget document Hold public meeting to discuss levy and budget. Review and approve utility rates for 2018. Adopt final tax levy and budget Certify final tax levy and budget to County and State

September 30, 2018

Staff

November

County

November

Council/Staff

December 4, 2018

Council

December 18, 2018

Council

December 28, 2018

Staff

Budget Impact Issues Wages and benefits

All three union contracts went into effect on Jan. 1, 2017, and include 3 percent cost of living adjustments for 2017, 2018 and 2019, respectively. Non-union wage increases typically mirror