Parks, Trails & Recreation Master Plan

RELIABLE Provides long-term funding over multiple years.

support them is outside of typical legislated levy limits. Property taxes are an authorized means of support for General Obligation Bonds, but do not have to be used if alternative revenue sources are available. For example, rental revenues or local sales tax can be used to pay general obligation bonds and offset some or all of the property taxes that would otherwise be required. Minnesota Statutes 297A.99 provides the authority to levy a local sales tax with special legislation of a dedicated tax. The statute requires that a resolution also be passed by the jurisdiction including, at minimum, information on the proposed tax rate, how the revenues will be used, the total revenue that will be raised before the tax expires and the estimated length of time the tax will be in effect. Once legal authority has been granted, an election must be held prior to a jurisdiction actually levying the sales tax. The election will permit the use of the sales tax for specific capital improvements. Franchise fees are a charge listed on the monthly bill that customers receive from a utility, such as natural gas, electricity or cable. This can be a flat amount each month or a percentage of the monthly bill. A franchise fee can be implemented with an ordinance that must be approved by the City Council. INTERMITTENT Irregular or periodic in occurrence. Local Sales Tax Option Franchise Fees

General Fund Tax Levy

The General Fund is typically used to maintain the parks and recreation system. The General Fund is the primary funding source for ongoing maintenance, natural resource management, operations, and minor amenity additions. Most grants also have a matching requirement that is often pledged with general funds. A dedicated tax levy identifies funds sourced to pay solely for park improvements. By identifying a separate general tax levy line item in addition to normal tax levy line items for core city operations, taxpayer transparency is increased for funds reserved for planned, long-term improvements. This functions as a pay-as-you-go approach versus a large one-time infusion of capital. The Park Asset Fund is a significant investment in the long term success of the parks and trails system. Shakopee is unique among Minnesota cities in its robust Park Asset Fund. Several bonding options exist including General Obligation Bonds, Annual Appropriation Bonds, Tax Abatement Bonds, and Revenue Bonds. Bonding provides a large one-time infusion of capital for acquisition, replacement, repair, expansion, or new construction. Bonding allows for current and future residents to pay for park improvements over time which typically corresponds to useful life of the asset improvements. Dedicated Tax Levy Bonding

system vision

State Aid Funds

Bonds by Referendum

State aid funds are available for pedestrian and bicycle improvements on state aid streets. This funding source is particularly useful at the time of street construction or re-construction. Shakopee should have a process for evaluating needed trail and sidewalk improvements as part of capital improvement projects.

When residents approve bonding authority through a referendum, the city benefits by the lowest available interest rate, an option of a longer repayment term of up to 30 years, as well as increased transparency. The bonds are counted against a city’s net debt limit and the levy to

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SHAKOPEE PARKS, TRAILS, AND RECREATION MASTER PLAN | IMPLEMENTATION