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All Minnesota cities establish annual budgets for a fiscal year that coincides with the calendar year. The City of Shakopee’s budget process begins in early summer, when each department develops and submits requests for the next year’s annual operating budget and the five-year capital improvement program. In August and September, the City Council holds a series of workshops to discuss the requested budgets; often consulting with members of various city boards and commissions.
Preliminary Tax Levy and Budget
In early September, the City Council sets a preliminary tax levy and a budget for the upcoming year and provides this information to Scott County. While the City Council has the authority to set a final tax levy and budget that is lower than the preliminary figures, state law prohibits the City Council from setting a final levy that is higher than the preliminary levy. Within these parameters, the City Council and staff continue to discuss and refine the preliminary budget and tax levy throughout the fall.
Truth in Taxation
At the same time, the County combines the preliminary levies set by the city, county, school district and various special taxing jurisdictions and determines what the property taxes would be on each parcel of land in the city, if the preliminary levies were to be adopted as the final levies. In November, this information is used to prepare Truth in Taxation Statements which are mailed to every property owner in the city. The Truth in Taxation Statement is intended to allow taxpayers to see the tax implications of the proposed budgets and how their taxes might change from the previous year.
In early December, the city holds a state-mandated Truth In Taxation hearing. These hearings are designed to provide local residents and property owners with an opportunity to comment on the city’s proposed budget and tax levy before they are finalized.
Final Tax Levy and Budget
Based on their discussions since establishing the preliminary levy and the input received during the Truth in Taxation process, the City Council makes any necessary changes to the preliminary budget and levy and adopts a final budget and tax levy in late December.
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