2019 City of Shakopee Comprehensive Annual Financial Report

Along with the operating budget, the city annually prepares a five-year capital improvement plan (CIP) that is the basis for the long-term goal of providing and maintaining a functional public facility program, that provides the residents and businesses with infrastructure and equipment necessary for the on-going growth and development. The capital plans have historically provided details on the infrastructure projects and capital equipment that are funded through property tax levy, franchise taxes, special assessments, utility user-fees and other intergovernmental revenue sources. These projects primarily allow for the upgrades, expansion and coordination of transportation-based needs, as well as trails, signals and other infrastructure improvements. The City Council also reviews and discusses the park planned improvements that are funded through the Park Development fund, which provides for the use of park and community facilities that have historically been funded through the collection of Park Dedication fees. The capital plans are reviewed with the Council and city staff, and the funding sources and priorities developed for the annual and future budget practices. The city also maintains several internal service funds including equipment, park assets, information technology, buildings and self-insurance. The funding for this program is through the internal service fund rate charges, which are determined by departmental use, replacement plans and determination of the remaining life. These charges are integrated into the individual budgets of the General fund and departments that are benefitted by the activities of the programs. The Internal Service funds continue to be reviewed and updated as community needs and council directives are considered during each budget cycle. Local Economy Shakopee is the county seat of Scott County, and it abuts the largest county in the region, Hennepin County. Shakopee continues to benefit from its strategic location within the metropolitan region, as well as its direct access to TH 169, which connects the city to other major regional roadways, the MSP International Airport, and major employment centers. The city is also at the heart of regional attractions which includes ValleyFair, Canterbury Park horse racing track, Mystic Lake and Little Six casinos, and the Minnesota Renaissance Festival. These and other factors have propelled the city through a period of strong and consistent growth that is likely to continue for years to come. The City’s taxable market value is $5.1 billion for taxes payable 2020, which is an increase of $473 million or 10.3 percent from last year. New construction accounted for $244 million of the increase in value. Residential housing makes up 63.1% of the 2020 tax capacity base. For the valuation used to calculate the 2020 property tax statements, the average value home in the City of Shakopee is $272,600 compared to $255,400 in the previous valuation. The following projects are anticipated to begin construction in the near future or are currently under construction in the City: Residential:  The Shakopee Economic Development Authority (the “EDA”) sold the former city hall site to Enclave Development for the creation of an 93-unit market rate apartment complex with underground parking and commercial space along Holmes Street. Foundations have been set and the project is expected to be completed in early 2021.

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