2025 Budget for the City of Shakopee

10

Net Tax Capacity

Class

Payable 2024

Payable 2025

Change (%)

Agricultural Apartment Commercial

$594,336 8,195,728 13,817,865 31,293,404

$1,664,241 8,737,325 14,915,026 35,113,160

180.0%

6.6% 7.9%

Industrial

12.2% 33.3%

Public Utility/Railroad

618,006

823,899

Residential

47,568,899

50,127,913

5.4%

Other

23,401 -32,893

39,220

67.6%

Adj. to match county report

-1,560,521

Gross Tax Capacity

$102,144,532

$109,860,521

7.6%

Adjustments: Tax Increment

($2,862,355) (14,638,831) $84,643,346

($3,884,862) (17,902,281) $88,073,120

35.7% 22.3%

Fiscal Disparity Contribution

Net Tax Capacity

4.1%

Fiscal Disparity Distribution

($7,973,789)

($8,458,436)

6.1%

The total net tax capacity of the city is estimated at $88,073,120 compared to $84,643,346 in 2024, which is an increase of $3,429,774 (4.1%). The gross tax capacity is adjusted for the increase in tax capacity of properties within tax increment financing districts. The tax increment adjustment of $3.9 million represents 3.5 percent of gross tax capacity. The net increase is primarily related to a portion of Shakopee Flats and Canterbury Commons being added. It is important to note that these developments would not have occurred without the use of tax increment financing. The value and tax capacity of these districts are added to the city’s tax roll upon the decertification of these districts. The gross tax capacity is also adjusted for the fiscal disparities program which is unique to the seven county metro area and is further explained in the diagram below:

The city’s estimated contribution to the program is $17.9 million in tax capacity, and the distribution is estimated at $8.5 million for a net contributed amount of $9.5 million. This is an increase of $2.8 million (41.8%) from 2024. The city of Shakopee continues to be one of the top ten net contributors to the program, estimated for 2025 at $9.5 million (8.6%) of tax capacity.