Winter 2022-23 Hometown Messenger

Breaking down the 2023 budget and property tax levy

TheCityof Shakopeecontinues to remain inan extremely strong financial position The city’s AA+ long-term credit rating reflects the rap idly growing local economy, strong reserves, manageable debt burden and strong financial management practices and policies An emphasis on long-term financial planning includes a long-term financial plan, a 15-year capital improvement plan and financial pro jections However, there are several factors that will influence current and future budgets, including the impact of inflation on personnel costs, fuel, street materials and energy costs As Shakopee’s population grows and devel opment continues to expand, the demand for city services also grows As an example, in the past five years the city has added 14 1 miles of street, 23 miles of sidewalks/trails and 75 acres of parks/open space These additions increase the demand for snow removal, street maintenance, landscaping and additional funds for future park and infrastructure replacement Statewide—not unique to Shakopee—resi dential properties saw a sharp increase in value for property taxes payable in 2023, far outpacing the more moderate value increases in commercial and industrial prop erty types This creates a shift in the property tax burden from commercial/industrial to residential properties As a result, homeown ers can expect to see an increase in property taxes, regardless of any change in the city budget and levy In September, the City Council approved a maximum preliminary levy of $23,892,000 This is an increase of $1,406,000 (6 25%) over 2022 property taxes Much of the increase will be covered by taxes from new con struction, as the city’s taxable market value increased by $1 2 billion (19 4%) to $7 2 bil lion New construction accounts for 10 8%

Give your two cents on the proposed 2023 levy and budget during a public meeting.

7 p.m. Tue., Dec. 6 Council Chambers at City Hall, 485 Gorman St.

of the increase in market value, allowing the tax levy to be spread across a larger tax base For the median value home whose property value increased by 21 7%, from $284,700 to $346,500, this equates to an increase of $91 or 10 3% annually in property taxes Absent any change in value from the previous year, homeowners can expect a tax decrease of $101 or 11 5% The proposed tax levy will significantly decrease the city’s tax rate from 32 11% to 28 42% ■ Continue investment in parks and trails –$6 8 million identified in CIP for park development and replacement –Full-time park maintenance operator position added 2023 BUDGET HIGHLIGHTS ■ 20% growth in city taxable market value –$127 million (10% of growth) from new construction –Home value appreciation (23% increase in existing residential values) ■ Significant (11%) decrease in the city tax rate (32 11% to 28 42%) ■ Anticipated property tax decreases for commercial and industrial properties ■ Investment in public safety –Added three full-time fire supervisor positions –Rental housing program implementation

How Can I Help You? Meet Alexander Enyi, who works as a senior engineer technician in the Public Works Department Q: What do you do for the city? A: I draw and design city projects in the winter and inspect them in the summer when they’re under construction Q: How long have you worked for the city? A: I worked as an intern in the summer of 2014 I then applied and have worked full time as an engineer technician since June 2015 Q: What do you enjoy about working for the city? A: The engineering department has a knowledgeable team I learn a lot from everyone in the department They’re easy to talk to about any issues and everyone gets along well Q: What’s the best part of your job? The best part of my job is seeing a construction project from start to finish and watching it evolve from tragic to magnificent The projects are usually roadways in desperate need of reconstruction

NEWS & NOTES

GET INVOLVED! The city has three active boards and commissions that advise and assist the City Council in setting policy: Park and Recreation Advisory Board, Planning Commission/Board of Adjustments & Appeals and the Police Civil Service Commission The City Council also appoints members to the Shakopee Public Utili ties Commission (SPUC), which oversees the operation of the publicly owned water and electric utilities Interested community members can apply online during the month of January at www.ShakopeeMN.gov/employment

NEW EMPLOYEES JOIN CITY STAFF Join us in welcoming these new employees to the City of Shakopee: ■ Larry Runge , Parks and Recreation Facilities Maintenance Worker ■ Courtney LaBruyere , Police Evidence Technician ■ Tait Carlson , Ice Arena Specialist ■ John Sullivan , Economic Development Coordinator ■ Joe Pluta , Public Works Foreman

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