2026 Budget for the City of Shakopee

10

Economic Development Authority The Shakopee EDA has the statutory authority to levy a small percentage (up to 0.0185%) of the city’s taxable market value, which for 2026 would be a maximum of $1,532,766. The EDA and City Council can set the levy at any amount up to this cap. The EDA levy is identified on property tax statements as a separate local tax outside of the city’s general property tax. For 2026, the preliminary request is for an EDA levy of $550,000 ($50,000 increase). Additional funding is provided through a contribution of ½ percent of revenues from the Shakopee Public Utilities Commission. Staff is proposing a new ongoing transfer beginning in 2026 from the EDA in the amount of $50,000. Similar to the city utility funds (sewer and storm water), the EDA receives administration support from general fund operations including the city council, finance, information technology, communications and human resources. From a financial standpoint, the administration allocation would better reflect the full cost of the EDA. A corresponding $50,000 increase in the EDA levy is being proposed to allow for no net impact on the EDA. The EDA serves as the landlord for the main level business tenants at River City Centre. The EDA currently owns the land and the CDA owns the building. The activity (lease revenue and expenditures) is accounted for in a separate fund of the EDA. Taxable Market Value The city’s taxable market value is at $8.70 billion, which is an increase of $412 million (5.0%) from last year. Residential, apartment, commercial all saw growth in market value. New construction accounted for 57.8% of the increase in taxable market value. Class Payable 2025 Payable 2026 Change (%) Agricultural $41,712,610 $53,862,863 29.1% Apartment 775,299,400 849,623,207 9.6% Commercial 745,589,700 771,505,500 3.5% Industrial 1,765,009,000 1,821,276,800 3.2% Public Utility/Railroad 36,422,700 36,480,300 0.2% Residential 4,917,336,577 5,160,489,043 4.9% Other 3,849,500 3,849,600 0.0% Totals $8,285,219,487 $8,697,087,313 5.0%