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Home My WebLink AboutAugust 19, 2025 - Council PacketSHAKOPEE Shakopee City Council Regular Meeting Tuesday, August 19, 2025 7:00 PM City Hall, 485 Gorman Street Vision: Shakopee is a distinctive river town with a variety of business, cultural, and recreational opportunities in a safe, welcoming, and attractive environment. Our vision is for Shakopee to continue being the place people want to live, work, and play! Mission: Our mission is to deliver high quality services essential to maintaining a safe and sustainable community. We commit to doing this cost-effectively, with integrity and transparency. 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Approval of Agenda 5. Consent Agenda These items are considered routine and will be enacted by one motion. There will be no separate discussion of these unless a council member or staff requests, in which event the item will be removed from the consent agenda for separate discussion & action. 5.a Approve a Cooperative Agreement with Scott County for the Construction and Maintenance of the County Highway 16 Extension Improvements 5.b Minnesota DNR's Conservation Partners Legacy Grant Program Application 5.c State of Minnesota 2026 Capital Budget Request Project Priority List 5.d Monthly Financial Report - July 2025 5.e Set public hearing for the issuance of refunding bonds for Benedictine Living Community of Shakopee LLC (conduit debt) 5.f FM Fire Service Grant Program Application 1 5.g Policy and Standard Operating Procedure Development 5.h Approve Parking Restrictions on Shenandoah Drive 5.i Approval of the City Council Meeting Minutes for August 6, 2025 5.j Approve the Scott County Highway 17 Expansion Project Layout 5.k Joe Schleper Stadium Baseball Field improvements - Sod improvements 5.1 Approve a Temporary Liquor License for the Shakopee Chamber of Commerce 5.m Approve Extended Construction Hours for the Marystown Road Reconstruction Project 6. Public Comment Individuals may address the City Council about any item not on the regular agenda. Speakers are requested to come to the center table, state their name and address for the clerk's record, and limit their remarks to three minutes. The City Council will not take official action on items discussed at this time, but may refer the matter to staff for a follow up report or direct that matter be scheduled on an upcoming agenda. 7. Business removed from consent agenda 8. General Business 8.a Comprehensive Revenue Policy - Parks and Recreation 8.b Healing Center MUSA Comprehensive Plan Amendment 9. Workshop 9.a Overview of 2026 Preliminary Budget and Levy 9.b SCALE 2026 Legislative Priorities 10. Reports Liaison and Administration 10.a City Bill List 10.b News and Announcements 11. Other Business 12. Adjourn to September 2, 2025, at 7:00 pm 2 WILLA' SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.a August 19, 2025 Approve a Cooperative Agreement with Scott County for the Construction and Maintenance of the County Highway 16 Extension Improvements Alex Jordan, City Engineer Action to be considered: Approve a Cooperative Agreement with Scott County for the County Highway 16 Extension Improvements. Motion Type: Simple Majority Background: The Scott County adopted Transportation Capital Improvement Plan programs the County's contribution towards the construction and extension of CH 16 west of CH 15 to CH 69. CH 16 will be constructed with the Palomino Trail and Bluff View development improvements. Scott County's share of the project costs are for enhancing the roadway from a collector level to county minor arterial standards. The project will be completed in two phases. Phase 1 of the overall extension of CH 16 will be from its current terminus west of CH 15 to Zumbro Avenue. Phase 2 will be from Zumbro Avenue to 1,870 feet west which is planned for construction in 2026. The Cooperative Agreement will establish the maintenance responsibilities for the improvements. The City will be responsible for the following maintenance items: pavement markings on city roadways intersecting CH 16, electrical energy and minor maintenance for streetlights, snow removal on trails (done at our discretion), maintenance of trees, mowing and landscaping, and cost sharing for its share of storm sewer and stormwater management and trail maintenance. Recommendation: Approval of the Agreement Budget Impact: The County's contribution towards the improvements is estimated at $767,060.19. The County will reimburse the City for its share of the costs as follows: 3 1) Ninety percent (90%) of the total contract amount for both Phase 1 and Phase 2 upon execution of this Agreement by all parties. 2) Remaining amount due upon Project completion. The City will reimburse the Developers for the County's share of the improvements as they are constructed and accepted by the City. Amendments to the Developer Agreements will be brought forth to the City Council for consideration at a future meeting to establish the reimbursement process for the County's share of the project costs. Attachments: Shakopee_CH 16Ext-NorcoProperties_Final.pdf 4 CP 16-27 City of Shakopee County of Scott COOPERATIVE AGREEMENT THIS AGREEMENT, by and between the County of Scott, a body politic and corporate under the laws of the State of Minnesota, hereinafter referred to as the "County" and the City of Shakopee, a body politic and corporate under the laws of the State of Minnesota, hereinafter referred to as the "City". RECITALS: A. County and City seek to make the following improvements: Construct .53 miles of new roadway extending County Highway (CH) 16 with trails, curb, and median from its current terminus west of CH 15 to west of Zumbro Avenue referred to as the "Project" (Exhibit A). B. The above -described Project lies within the corporate limits of the City and will be constructed in two phases. Phase 1 of the overall extension of CH 16 will be from its current terminus west of CH 15 to Zumbro Avene. Phase 2 will be from Zumbro Avenue to 1,870 feet west which is planned for construction in 2026. C. Pulte Homes of Minnesota, LLC and Summergate Companies, LLC, collectively referred to as "Developer", are two developers jointly working on the construction of the Project. The Developer shall enter into a separate agreement, the "Developer's Agreement" with the City to define the Developer's project deliverables that will include the Developer's cost participation and construction responsibilities. It shall be the City's sole responsibility to ensure the guarantee of the Developer's deliverables as outlined hereinafter. D. The City and Developer have prepared an estimate of quantities and unit prices of materials and labor for the above -described Project and an estimate of County's portion of the total cost for contract work in the sum of seven hundred sixty-seven thousand sixty dollars and nineteen cents ($767,060.19). County shall pay for the oversizing necessary to meet County standard 10 -ton roadway requirements (Exhibit B). E. It is contemplated that the Project shall be carried out by the parties under the provisions of Minn. Stat. §162.17, subd.1 and Minn. Stat. §471.59. NOW, THEREFORE, in consideration of the mutual undertakings and agreement contained within this agreement, the County and City hereby agree as follows: 1. Incorporation The recitals set out above are hereby incorporated into this Agreement as if fully restated herein. 2. Scope of Services a. Developer shall construct the project per the Developer Agreement and approved plans and specifications. 5 CP 16-27 City of Shakopee County of Scott b. County shall have overall authority to inspect the construction of the contract work for the Project. The construction staking and materials testing services will be provided by the Developer. c. Developer shall provide and dedicate the required right of way and easements and transfer to the County. 3. Payment a. It is specifically agreed that the estimate(s) mentioned in this agreement is only a preliminary estimate of the cost for the work on the Project and that the unit prices set forth in the contract and the final quantities as measured by the County Engineer shall govern in computing the total final construction cost for apportioning the cost of the Project according to the provisions of this section. b. Developer shall pay one hundred percent (100%) of the Roadway Design and Construction Plan and Specifications preparation. c. County shall reimburse the City for one hundred percent (100%) of its share as shown in Exhibit B. Amounts due shall be paid by the County to the City under the following schedule: 1) Ninety percent (90%) of the total contract amount for both Phase 1 and Phase 2 upon execution of this Agreement by all parties. 2) Remaining amount due upon Project completion. d. City will submit invoices to County for the payment due, and County shall pay all amounts due within thirty (30) days. 4. Ongoing Maintenance Items a. Future Modifications. County reserves the right not to issue any permits for a period of five (5) years after completion of the Project for any service cuts in the roadway surfacing of the County Highway included in the Project for any installation of underground utilities which would be considered as new work; service cuts shall be allowed for the maintenance and repair of any existing underground utilities. b. Roadway Snow and Ice Control. Upon completion of the Project, the County, at its expense, shall perform snow and ice control. c. Pavement Striping and Markings. Initial pavement striping and markings shall be included as part of the Project. The County shall be responsible for all subsequent pavement striping and markings on its county roads as required after the initial work and shall be responsible for one hundred percent (100%) of the subsequent related costs. The City shall be responsible for all subsequent striping and markings on its city roads, including pedestrian markings across its City roadway intersection legs, as required after the initial work and shall be responsible for one hundred percent (100%) of the subsequent related costs. d. Trail Maintenance. All future maintenance costs of trail/sidewalk improvements within the City of Shakopee corporate limits constructed under this agreement will be shared equally between County and City regardless of which party performs the maintenance work. Either party can initiate and complete such maintenance work with notice given to the other party. Upon completion of such work the initiating party will invoice the other for fifty percent (50%) of the actual total cost. The preventative maintenance on trails constructed with this project, including sealcoating and crack -sealing, will be cost shared equally between 2 6 CP 16-27 City of Shakopee County of Scott County and City with City administering the process. e. Trail Snow and Ice Control. Upon completion of the Project, the City, at its expense, shall perform snow, ice, and debris removal on all trails and sidewalks constructedwith the Project. f. Streetlights. City shall provide and/or perpetuate an adequate electrical power supply to the streetlights installed as part of this Project and upon completion of said new streetlights installation shall provide and/or continue to provide necessary electrical power for its operations at the sole cost and expense of the City. g. Street Light Maintenance. City shall be responsible for the maintenance and replacement of the aforementioned streetlights including the luminaire and all its components at the sole cost and expense of the City. h. Sanitary Sewer. Upon completion of Project, City, at its sole expense, shall maintain all sanitary sewer appurtenances. Storm Sewer and Stormwater Management Basins. Routine maintenance of storm sewer appurtenances within the County right-of-way shall be performed by the County, including repairs to structures, castings, and adjacent curb section repairs along with the removal of sediment, vegetation and ice. Major maintenance will be the responsibility of the County but costs will be split between the City and the County based on the ratio of flow into the stormwater system. Major maintenance includes but is not limited to dredging ponds, repair of non -routine erosion problems, non -routine structure or pipe repair and any other non -routine maintenance activities defined as rehabilitation, replacement, or improvement. Major maintenance of stormwater features that provide regional treatment (treatment for drainage areas beyond the City and County right of ways) will be the responsibility of the City but costs will be split with the County based on the ration of contributing flows into the system. Trees and Landscaping. City and Developer are proposing trees along the proposed CH 16. A detailed landscaping plan for the trees planted in the County right of way shall be included in the overall project plans and approved by the County. City shall be responsible for all maintenance of the trees and shall accept full responsibility for all aspects of the tree plantings including repairing the roadway and curb if the root systems create issues, trimming/removing if there are future sight line issues or if the County determines it becomes an issue with roadway safety or maintenance operations, removing for future road widening. k. City shall be responsible for necessary mowing in the right of way. A future County Global Maintenance Agreement, upon execution, may supersede maintenance responsibilities stated in this Agreement. 5. Effective Date of Contract This Agreement shall be effective upon execution by all parties to the Agreement. 6. Term of Contract This Agreement will terminate upon Project completion and County's reimbursement to City, provided that the Ongoing Maintenance section shall survive the Agreement termination. 3 7 CP 16-27 City of Shakopee County of Scott 7. Authorized Agents The Parties shall appoint an authorized agent for the purpose of administration of this agreement. City is notified of the authorized agent of County as follows: Tony Winiecki, or his successor County Engineer Scott County Transportation Services 200 Fourth Avenue West Shakopee, MN 55379 (952) 496-8008 twiniecki@co.scott.mn.us The County is notified the authorized agent for City is as follows: Alex Jordan, or his successor City Engineer City of Shakopee 485 Gorman Street Shakopee, MN 55379 (952) 233-9361 Aiordan@ShakopeeMN.gov 8. County and State Audit Pursuant to Minn. Stat. Sec. 16C.05, subd. 5, the books, records, documents, and accounting procedures and practices of the County and City pursuant to this Agreement shall be subject to examination by the County, City and the State Auditor. Complete and accurate records of the work performed pursuant to this Agreement shall be kept by the County and City for a minimum of six (6) years following termination of this Agreement for such auditing purposes. The retention period shall be automatically extended during the course of any administrative or judicial action involving the County or the City regarding matters to which the records are relevant. The retention period shall be automatically extended until the administrative or judicial action is finally completed or until the authorized agent of the County or City notifies each party in writing that the records no longer need to be kept. 9. Liability and Indemnity a. Neither party, its officers, agents or employees, either in their individual or official capacity, shall be responsible or liable in any manner to the other party for any claim, demand, action or cause of action of any kind or character arising out of, allegedly arising out of or by reason of the performance, negligent performance or nonperformance of the described maintenance, restoration, repair or replacement work by the other party, or arising out of the negligence of any contractor under any contract let by the other party for the performance of said work; and each party agrees to defend, save, keep and hold harmless the other, its officers, agents and employees harmless from all claims, demands, actions or causes of action arising out of negligent performance by its officers, agents or employees. 4 8 CP 16-27 City of Shakopee County of Scott b. It is further agreed that neither party to this Agreement shall be responsible or liable to the other or to any other person or entity for any claims, damages, actions, or causes of actions of any kind or character arising out of, allegedly arising out of or by reason of the performance, negligent performance or nonperformance of any work or part hereof by the other as provided herein; and each party further agrees to defend at its sole cost and expense and indemnify the other party for any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising in connection with or by virtue of performance of its own work as provided herein. Each party's obligation to indemnify the other under this clause shall be limited in accordance with the statutory tort liability limitation as set forth in Minnesota Statutes Chapter 466 to limit each party's total liability for all claims arising from a single occurrence, include the other party's claim for indemnification, to the limits prescribed under §466.04. It is further understood and agreed that the Parties' total liability shall be limited by Minn. Stat. §471.59, Subdivision 1 a. as a single governmental unit. c. It is further agreed that any and all employees of each party and all other persons engaged by a party in the performance of any work or services required or provided herein to be performed by the party shall not be considered employees, agents or independent contractors of the other party, and that any and all claims that may or might arise under the Workers' Compensation Act or the Unemployment Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said employees while so engaged shall be the sole responsibility of the employing party and shall not be the obligation or responsibility of the other party. 10. Insurance Since each party is a political subdivision of the State of Minnesota, each party shall maintain a program of self-insurance or insurance covering general liability and automobile liability coverage protecting itself, its officers, agents, employees and duly authorized volunteers against any usual and customary public liability claims to the limits prescribed under Minn. Stat. Sec. 466.04 and Workers' Compensation in accordance with the Minnesota statutory requirements. Said coverage shall be kept in effect during the entire term of this Agreement. 11. Data Practices All records kept by the City and the County with respect to the Project shall be subject to examination by the representatives of each party. All data collected, created, received, maintained or disseminated for any purpose by the activities of the County or City pursuant to this Agreement shall be governed by Minnesota Statutes Chapter 13, as amended, and the Minnesota Rules implementing such Act now in force or hereafter adopted. 12. Equal Employment and Americans with Disabilities In connection with the work under this agreement, City agrees to comply with the applicable provisions of state and federal equal employment opportunity and 5 9 CP 16-27 City of Shakopee County of Scott nondiscrimination statutes and regulations. In addition, upon entering into this agreement, City certifies that it has been made fully aware of Scott County's Equal Employment Opportunity and Americans With Disabilities Act Policies, that it supports these policies and that it will conduct its own employment practices in accordance therewith. Failure on the part of City to conduct its own employment practices in accordance with County Policy may result in the withholding of all or part of regular payments by the County due under this agreement unless or until City complies with the County policy, and/or suspension or termination of this agreement. 13. Controlling Law The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and performance under it. The appropriate venue and jurisdiction for any litigation hereunder shall be those courts located with the County of Scott, State of Minnesota. Litigation, however, in the federal courts involving the parties shall be in the appropriate federal court within the State of Minnesota. 14. Changes/Amendments The parties agree that no change or modification to this agreement, or any attachments hereto, shall have any force or effect unless the change is reduced to writing, dated, and made part of this agreement. The execution of the change shall be authorized and signed in the same manner as this agreement, or according to other written policies of the original parties. 15. Severability In the event any provision of this Agreement shall be held invalid and unenforceable, the remaining provisions shall be valid and binding upon the parties unless such invalidity or non -enforceability would cause the Agreement to fail its purpose. One or more waivers by either party of any provision, term, condition or covenant shall not be construed by the other party as a waiver of a subsequent breach of the same by the other party. 16. Entire Agreement It is understood and agreed that the entire agreement of the parties is contained herein and that this agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the County and City relating to the subject matter hereof. 6 10 CP 16-27 City of Shakopee County of Scott IN TESTIMONY WHEREOF, the parties hereto have caused this Agreement to be executed intending to be bound thereby. CITY OF SHAKOPEE By And Matt Lehman, Mayor William H. Reynolds, City Administrator Date Date COUNTY OF SCOTT By Lezlie Vermillion, County Administrator Date Upon proper execution, this agreement RECOMMEND FOR APPROVAL: will be legally valid and binding. By By Jeanne Andersen, Assistant County Attorney Anthony J. Winiecki, County Engineer Date Date 7 11 CP 16-27 City of Shakopee County of Scott EXHIBIT A 37' B -B CITY COLLECTOR (Future Phase) PROPOSED 17TH (Future Phase) 8 12 CP 16-27 City of Shakopee County of Scott EXHIBIT B — Cost Estimate Phase 1 - Palomino Trail Development • City Collector - $333,742.35 • County Share - $236,403.05 • Total Cost - $570,127.40 • Total Length — 970 LF Phase 2 - Bluff View Development • City Collector - $540,432.64 • County Share - $530,657.14 • Total Cost - $1,071,089.78 • Total Length — 1873 LF 9 13 Piliall SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.b August 19, 2025 Minnesota DNR's Conservation Partners Legacy Grant Program Application Andrea Harrell, Grants and Special Projects Coordinator Chelsea Petersen, Assistant City Administrator Action to be considered: Adopt Resolution R2025-093, approving an application to the Minnesota DNR's Conservation Partners Legacy grant program. Motion Type: Simple Majority Background: MN DNR provides grants through the CPL program to fund the restoration, protection, and enhancement of prairies, wetlands, forests, and habitats for fish, game, and wildlife in Minnesota. The City of Shakopee is requesting funds to conduct long-term invasive shrub maintenance at Southbridge Community Park. The funding will be used to mitigate the Common Buckthorn and non-native Honeysuckle as well as removing dead and dying red oaks impacted by Oak Wilt and seeding native plants throughout the park. Recommendation: Adopt Resolution R2025-093. Budget Impact: The grant requires a 10% match and will be provided through the Engineering Department's Surface Water Fund. Attachments: Resolution R2025-093.docx 14 RESOLUTION R2025-093 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY TO SUBMIT A MINNESOTA DNR CONSERVATION PARTNERS LEGACY GRANT APPLICATION WHEREAS, the City of Shakopee supports the application made to the Minnesota DNR's Conservation Partners Legacy Grant program, and WHEREAS, the application is to obtain funding to conduct long-term invasive shrub maintenance, tree removal, and native plant seeding, and WHEREAS, the City of Shakopee recognizes a 10% match is required and will be provided through the Surface Water Fund. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: if the City of Shakopee is awarded a grant by the MN DNR, the City of Shakopee agrees to accept the grant award and may enter into an agreement with MN DNR for the above -referenced project. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 19th day of August 2025. Matt Lehman, Mayor of the City of Shakopee ATTEST: Richard Parsons City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 15 Piliall SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.c August 19, 2025 State of Minnesota 2026 Capital Budget Request Project Priority List Andrea Harrell, Grants and Special Projects Coordinator Chelsea Petersen, Assistant City Administrator Action to be considered: Adopt Resolution R2025-094, approving the project priority list for the State of Minnesota Capital Budget Request. Motion Type: Simple Majority Background: At its June 3rd, 2025 meeting, City Council approved Resolution R2025-068, allowing for the application to the State of Minnesota 2026 Capital Budget request. The State of Minnesota required a project priority list be adopted when submitting multiple applications. The City of Shakopee is formally notating the project priority for its applications are: 1. Hub Innovation Center 2. Downtown Quiet Zone project Recommendation: Adopt Resolution R2025-094. Budget Impact: This resolution carries no budget impact, however, the budget impacts in the original resolution are still valid. Attachments: Resolution R2025-094.docx Resolution R2025-068.pdf 16 RESOLUTION R2025-094 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY'S PROJECT PRIORITY LIST FOR THE 2026 CAPITAL BUDGET REQUEST WHEREAS, the City of Shakopee supported the applications made to the State of Minnesota's 2026 Capital Budget via Resolution R2025-068 on the 3rd day of June 2025, and WHEREAS, the State of Minnesota requires a project priority list be adopted when multiple projects are submitted for funding, and WHEREAS, the City of Shakopee recognizes the 2026 Capital Budget project priority is given first to the Hub Innovation Center and second to the Downtown Quiet Zone project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: if the City of Shakopee is awarded a grant by the State of Minnesota, the City of Shakopee agrees to accept the grant award and may enter into an agreement with State of Minnesota for the above -referenced project. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 19th day of August 2025. Matt Lehman, Mayor of the City of Shakopee ATTEST: Richard Parsons City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 17 RESOLUTION R2025-068 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY TO SUBMIT A 2026 STATE CAPITAL BUDGET REQUEST WHEREAS, the City of Shakopee supports the submittal of a request to be in included in the State of Minnesota's 2026 Capital Budget. WHEREAS, the request is to obtain funding to construct rail crossing improvements necessary to establish a Quiet Zone in Shakopee along the United Pacific Railroad (UPRR) mainline rail corridor extending from Fuller Street to Shenandoah Drive, and WHEREAS, the City of Shakopee recognizes a 50% match is required. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: if the City of Shakopee's Quiet Zone improvements are included in the 2026 Capital Budget, the City of Shakopee agrees to accept the funding. The City of Shakopee will comply with all applicable statutes, Capital Budget Requirements, laws, and regulations as stated in the Capital Budget Instructions. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 3rd day of June 2025. Mayor of the City of Shakopee ATTEST: City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 18 Piliall SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.d August 19, 2025 Monthly Financial Report - July 2025 Nate Reinhardt, Finance Director Action to be considered: Review of July 2025 General Fund revenues and expenditures. Motion Type: Informational only Background: General Fund - July 2025 (see attachment) Revenue variances (+/- 10% of target) • Licenses and permits are tracking ahead of budget targets and the previous year, primarily from building permits, as the city continues to see growth. • Charges for services are tacking ahead of budget targets, primarily from engineering fees related to private development. • Miscellaneous includes interest earnings on investments, which are tracking ahead of budget targets. Expenditure variances (+/- 10% of target) • Total departmental expenditures are within the normal range and similar to last year's percentage through July. • Finance expenditures are currently exceeding budget targets as a result of the timing of the annual audit and property assessment contracts (full year paid during the first half of the year). • The Building Inspections department expenditures are currently exceeding budget targets as a result of the timing of annual software costs (full year paid during the first half of the year). Recommendation: Informational only 19 Budget Impact: N/A Attachments: 2025.07 Monthly Financial Report- with Revenues.pdf 20 CITY OF SHAKOPEE Monthly Financial Report YTD 2025 Budget July 2025 Actual July YTD 2025 Actual Budget Balance Percent Remaining Used July YTD 2024 Actual 01000 - GENERAL FUND REVENUES: * - TAXES 23,446,450 0 13,185,198 10,261,252 56% 4 11,605,457 * - SPECIAL ASSESSMENTS 17,000 0 11,859 5,141 70% T 10,398 * - LICENSES AND PERMITS 3,810,750 470,069 3,410,412 400,338 89% 4+ 2,935,116 * - INTERGOVERNMENTAL 5,430,000 757,008 2,836,404 2,593,596 52% 4 2,614,768 * - CHARGES FOR SERVICES 5,236,800 1,138,987 4,857,543 379,257 93% T 3,475,967 * - FINES AND FORFEITS 325,200 26,805 198,436 126,764 61% 165,735 * -MISCELLANEOUS 537,100 89,821 594,180 (57,080) 111% et 444,554 TOTAL REVENUES 38,803,300 2,482,689 25,094,033 13,709,267 65% 21,251,996 EXPENDITURES: 11 - MAYOR & COUNCIL (205,900) (8,530) (131,967) (73,933) 64% (77,503) 12 - ADMINISTRATION (2,726,280) (214,648) (1,558,910) (1,167,370) 57% -D (1,431,167) 13 - CITY CLERK (480,700) (32,831) (250,877) (229,823) 52% =D (312,694) 15 - FINANCE (1,166,950) (77,984) (851,342) (315,608) 73% 9 (813,979) 17 - PLANNING AND DEVELOPMENT (765,540) (72,750) (435,836) (329,704) 57% .> (524,918) 18 - FACILITIES (694,300) (55,396) (330,494) (363,806) 48% T (324,084) 31 - POLICE DEPARTMENT (12,973,990) (1,538,377) (7,584,173) (5,389,817) 58% =D (6,336,783) 32 - FIRE (4,448,100) (364,998) (2,331,931) (2,116,169) 52% =D (2,004,686) 33 - INSPECTION-BLDG-PLMBG-HTG (2,132,100) (142,276) (1,511,250) (620,850) 71% 9 (1,404,014) 41 - ENGINEERING (1,430,500) (189,820) (830,229) (600,271) 58% (748,785) 42 - STREET MAINTENANCE (2,846,050) (203,396) (1,713,526) (1,132,524) 60% =D (1,599,232) 44 - FLEET (607,800) (39,234) (295,187) (312,613) 49% ,. (306,086) 46 - PARK MAINTENANCE (3,514,200) (461,731) (2,246,743) (1,267,457) 64% (1,926,700) 67 - RECREATION (5,558,990) (628,288) (3,416,799) (2,142,191) 61% -D (2,894,415) 91 - UNALLOCATED (127,900) (3,192) (12,883) (115,017) 10% T (3,155) TOTAL EXPENDITURES (39,679,300) (4,033,450) (23,502,146) (16,177,154) 59% =D (20,708,201) OTHER FINANCING * - TRANSFERS IN 876,000 0 0 876,000 0% 0 * - TRANSFERS OUT 0 0 0 0 #DIV/0! 0 OTHER FINANCING TOTAL 876,000 0 FUND TOTAL Key T Varies more than 10% than budget positively 9 Varies more than 10% than budget negatively Within 10% of budget 0 876,000 0% 0 (1,550,761) 1,591,887 (1,591,887) 0 543,795 21 WILLA' SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.e August 19, 2025 Set public hearing for the issuance of refunding bonds for Benedictine Living Community of Shakopee LLC (conduit debt) Nate Reinhardt, Finance Director Action to be considered: Adopt Resolution R.2025-091, calling for a public hearing regarding the issuance of revenue refunding bonds under Minnesota Statutes, Chapter 462C, as amended, and providing preliminary approval to the issuance thereof. Motion Type: Simple Majority Background: The City of Shakopee issued two conduit bonds on December 21, 2018, for the benefit of Benedictine Living Community of Shakopee LLC,: (i) the Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project), Series 2018, in the original aggregate principal amount of $52,440,000; and (ii) the Subordinate Senior Housing Revenue Note (Benedictine Living Community of Shakopee LLC Project), Series 2018, in the original aggregate principal amount of $3,000,000. The City loaned the proceeds of the Refunded Bonds to the Borrower to finance the acquisition, construction, and equipping of approximately 116 independent living apartments, 43 assisted living units, and 24 memory care units located at 1705 Windermere Way in the City. The Borrower is requesting that the City issue one or more conduit tax-exempt or taxable revenue refunding bonds or other obligations in the estimated aggregate principal amount not to exceed $65,000,000 to (i) refinance the Project through the redemption and prepayment of the outstanding Refunded Bonds; (ii) fund required reserves, if any; and (iii) pay costs of issuance of the Bonds. The Refunded Bonds were issued in accordance with Minnesota Statutes, Chapter 462C. Pursuant to Section 147(f) of the Internal Revenue Code of 1986, the City Council is required to conduct a public hearing on the issuance of the Bonds. The Borrower has requested that the City Council consider the enclosed resolution at its meeting on August 19, 2025, which calls for a public hearing to be held by the City Council on September 16, 2025, and provides preliminary approval to the issuance of the Bonds for the purposes 22 described above. The Bonds may not be issued until the City Council has approved the issuance of the Bonds following the public hearing. Recommendation: Adopt Resolution R.2025-091, setting the public hearing for September 16, 2025 Budget Impact: There is no financial obligation (liability) or financial impact to the City of Shakopee, the refunding bonds will be conduit debt of the City of Shakopee. Any costs associated with the refinancing, including City legal fees, will be the responsibility of the Benedictine Health Systems. The City will receive a fee as part of this transaction. Attachments: Shakopee BHS Ref 2025 Resolution Calling Public Hearing.docx Shakopee BHS Ref 2025 Ltr N Reinhardt re Preliminary Resolution.docx 23 CITY OF SHAKOPEE RESOLUTION NO. R2025-091 RESOLUTION CALLING A PUBLIC HEARING REGARDING THE ISSUANCE OF REVENUE REFUNDING BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED, AND PROVIDING PRELIMINARY APPROVAL TO THE ISSUANCE THEREOF BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is authorized to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance or refinance multifamily housing developments (including nursing and assisted living facilities). 1.02. Benedictine Living Community of Shakopee LLC, a Minnesota limited liability company (the "Borrower"), the sole member of which is Benedictine Health System, a Minnesota nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), has proposed that the City issue one or more series of tax-exempt or taxable revenue refunding bonds or other obligations (the "Bonds") in an aggregate principal amount estimated not to exceed $65,000,000 and loan the proceeds thereof to the Borrower. The Borrower intends to apply the proceeds thereof, along with other available funds, to (i) refinance the acquisition, construction, and equipping of approximately 116 independent living apartments, 43 assisted living units, and 24 memory care units (the "Project") located at 1705 Windermere Way in the City, through the redemption of the City's outstanding Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project), Series 2018, and the City's outstanding Subordinate Senior Housing Revenue Note (Benedictine Living Community of Shakopee LLC Project), Series 2018 (together, the "Refunded Bonds"); (ii) fund required reserves, if necessary; and (iii) pay costs of issuance of the Bonds. The Borrower owns and operates the Project. The Refunded Bonds were issued in accordance with the provisions of the Act. 1.03. Pursuant Section 147(f) of the Code, prior to the issuance of the Bonds, the City Council must conduct a public hearing after one publication of notice in a newspaper circulating generally in the City at least seven (7) days before the hearing. 1.04. The Borrower has requested that the City Council conduct a public hearing on Tuesday, September 16, 2025, to approve the issuance of the Bonds pursuant to the requirements of Section 147(f) of the Code, and the regulations promulgated thereunder. Section 2. Preliminary Findings. Based on representations made by the Borrower to the City to date, the City Council of the City hereby makes the following preliminary findings, determinations, and declarations: (a) The proceeds of the Bonds will be loaned to the Borrower and the proceeds thereof, along with available funds, will be used to refinance the Project through the redemption and prepayment of the outstanding Refunded Bonds, fund required reserves, if necessary, and pay 4918-5156-5144.1 24 costs of issuance of the Bonds. The City will enter into one or more loan agreements (or other revenue agreements) with the Borrower requiring loan repayments from the Borrower in amounts sufficient to repay the loan of the proceeds of the Bonds when due and requiring the Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon. (b) In preliminarily authorizing the issuance of the Bonds, the City's purpose is to further the policies of the Act. (c) The Bonds will be special, limited obligations of the City payable solely from the revenues pledged to the payment thereof, will not be a general or moral obligation of the City, and will not be secured by or payable from revenues derived from any exercise of the taxing powers of the City. (d) The Bonds will refinance the Project, which is a multifamily housing development designed and intended to be used for rental occupancy by elderly persons. Section 3. Public Hearing. 3.01. The City Council shall meet at or after 7:00 p.m. on Tuesday, September 16, 2025, to conduct a public hearing as requested by the Borrower, notice of which hearing (the "Public Notice") will be published as required by Section 462C.04, subdivision 2 of the Act and Section 147(f) of the Code. 3.02. The City Clerk is hereby authorized to direct Kutak Rock LLP, Minneapolis, Minnesota, acting as bond counsel ("Bond Counsel"), to publish the Public Notice, in substantially the form attached hereto as EXHIBIT A, in the New Prague Times, the official newspaper of the City and a newspaper of general circulation in the City. The Public Notice shall be published at least once, at least seven (7) days prior to the date of the public hearing. At the public hearing, reasonable opportunity will be provided for interested individuals to express their views, both orally and in writing, on the proposed issuance of the Bonds for the purposes set forth herein. Section 4. Preliminary Approval. The City Council hereby states its preliminary intention to issue the Bonds in the aggregate principal amount estimated not to exceed $65,000,000 to (i) refinance the Project through the redemption and prepayment of the outstanding Refunded Bonds; (ii) fund required reserves, if necessary; and (iii) pay the costs of issuing the Bonds. Section 5. Official Statement. Other than providing information regarding the City (the "City Information"), the City has not participated in and will not participate in the preparation of a Preliminary Official Statement or an Official Statement (together, the "Official Statement") relating to the Bonds and the City assumes no responsibility for the sufficiency, accuracy, or completeness of the information contained in the Official Statement, other than the City Information. Subject to the foregoing, the City hereby consents to the distribution and the use by the underwriter in connection with the offer and sale of the Bonds of the Official Statement. Section 6. Costs. The Borrower will pay the administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the financing of the Project and issuing the Bonds, whether or not the Bonds are issued. Section 7. Commitment Conditional. The adoption of this resolution does not constitute a guaranty or firm commitment that the City will issue the Bonds as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Bonds, or issue the Bonds in an amount less than the amount referred to herein, should the City at any 4918-5156-5144.1 2 25 time prior to issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or to issue the Bonds in an amount less than the amount referred to in Section 4 hereof, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. Section 8. Effective Date. This resolution shall be in full force and effect from and after its passage. Approved by the City Council of the City of Shakopee this 19th day of August, 2025. Mayor ATTEST: City Clerk 4918-5156-5144.1 3 26 EXHIBIT A NOTICE OF PUBLIC HEARING CITY OF SHAKOPEE, MINNESOTA NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF REVENUE REFUNDING BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED, AND THE INTERNAL REVENUE CODE OF 1986, AS AMENDED NOTICE IS HEREBY GIVEN that the City Council of the City of Shakopee, Minnesota (the "City"), will hold a public hearing on Tuesday, September 16, 2025, at or after 7:00 p.m. at Council Chambers at City Hall, located at 485 Gorman Street in the City, on a proposal that the City Council approve and authorize the issuance by the City of one or more series of tax-exempt or taxable revenue refunding bonds (the "Bonds") in an aggregate principal amount estimated not to exceed $65,000,000 under Minnesota Statutes, Chapter 462C, as amended, for the benefit of Benedictine Living Community of Shakopee LLC, a Minnesota limited liability company (the "Borrower"), the sole member of which is Benedictine Health System, a Minnesota nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. The proceeds of the Bonds, along with other available funds, will be used to (i) refinance the acquisition, construction, and equipping of approximately 116 independent living apaitnients, 43 assisted living units, and 24 memory care units (the "Project") located at 1705 Windermere Way in the City, through the redemption of the City's outstanding Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project), Series 2018, and the City's outstanding Subordinate Senior Housing Revenue Note (Benedictine Living Community of Shakopee LLC Project), Series 2018; (ii) fund required reserves, if necessary; and (iii) pay costs of issuance of the Bonds. The Borrower owns and operates the Project. Following the public hearing, the City Council will consider adoption of a resolution approving the issuance of the Bonds for the purposes described herein. The Bonds will be issued by the City and will constitute special, limited obligations of the City payable solely from the revenues expressly pledged to the payment thereof, and will not constitute a general or moral obligation of the City and will not be secured by the taxing power of the City or any assets or property of the City except interests in the Project that may be granted to the City in conjunction with the financing. All persons interested may appear and be heard at the time and place set forth above or may file written comments with the City Administrator prior to the date of the hearing set forth above. Dated: [Date of publication] BY ORDER OF THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA /s/ William H. Reynolds City Administrator City of Shakopee, Minnesota 4920-7174-3066.2 27 KUTAKROCK Nathan Reinhardt, Finance Director City of Shakopee 485 Gorman Street Shakopee, MN 55379 Kutak Rock LLP 60 South Sixth Street, Suite 3400, Minneapolis, MN 55402-4018 office 612.334.5000 August 13, 2025 Julie Eddington 612.334.5013 julie.eddington@kutakrock.com Re: Resolution calling a public hearing on the issuance of revenue refunding bonds for the benefit of Benedictine Living Community of Shakopee LLC Dear Nate: The City of Shakopee (the "City") issued two series of bonds (the "Refunded Bonds") on December 21, 2018, for the benefit of Benedictine Living Community of Shakopee LLC, a Minnesota limited liability company (the "Borrower"), the sole member of which is Benedictine Health System, a Minnesota nonprofit corporation: (i) the Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project), Series 2018, in the original aggregate principal amount of $52,440,000; and (ii) the Subordinate Senior Housing Revenue Note (Benedictine Living Community of Shakopee LLC Project), Series 2018, in the original aggregate principal amount of $3,000,000. The City loaned the proceeds of the Refunded Bonds to the Borrower to finance the acquisition, construction, and equipping of approximately 116 independent living apartments, 43 assisted living units, and 24 memory care units (the "Project") located at 1705 Windermere Way in the City. The Borrower is requesting that the City issue one or more series of tax-exempt or taxable revenue refunding bonds or other obligations (the "Bonds") in the estimated aggregate principal amount not to exceed $65,000,000 to (i) refinance the Project through the redemption and prepayment of the outstanding Refunded Bonds; (ii) fund required reserves, if any; and (iii) pay costs of issuance of the Bonds. The Refunded Bonds were issued in accordance with Minnesota Statutes, Chapter 462C, as amended (the "Act"). Pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended, the City Council is required to conduct a public hearing on the issuance of the Bonds. The Borrower has requested that the City Council consider the enclosed resolution at its meeting on August 19, 2025, which calls for a public hearing to be held by the City Council on September 16, 2025, and provides preliminary approval to the issuance of the Bonds for the purposes described above. The Bonds may not be issued until the City Council has approved the issuance of the Bonds following the public hearing. If issued, the Bonds will be issued pursuant to the Act and secured solely by the revenues derived from a loan agreement to be executed by the City and the Borrower and from other security provided by the Borrower, including the proceeds of a mortgage and a guaranty. The Bonds will not constitute a general or moral obligation of the City and will not be secured by or payable from any property or assets of the City (other than the interests of the City in the loan agreement) and will not be secured by any taxing power of the City. The Bonds will not be subject to any debt limitation imposed on the City, and the issuance of the 4937-8370-6462.1 28 KUTAKROCK Bonds will not have any adverse impact on the credit rating of the City, even in the event that the Borrower encounters financial difficulties with respect to the Project to be refinanced with proceeds of the Bonds. Each year the City has the ability to designate up to $10,000,000 in tax-exempt bonds as "qualified tax-exempt obligations" (sometimes referred to as "bank -qualified bonds") for purposes of Section 265(b)(3) of the Code. In order to issue bank -qualified bonds, an issuer must not expect to issue more than $10,000,000 of bonds (other than private activity bonds that are not qualified 501(c)(3) bonds) in a calendar year. Because the principal amount of the Bonds exceeds $10,000,000, the City will be unable to designate the Bonds or any other bonds to be issued by the City in 2025 as bank qualified. The Borrower will pay the out-of-pocket expenses of the City with respect to this transaction as well as the City's administrative fee. If the City Council decides to proceed with a public hearing next month, my office will handle publishing the public hearing notice in the City's newspaper and will also prepare the bond documents and final approval resolution. Please contact me with any questions you may have prior to the City Council meeting. Sincerely, Julie Eddington 4937-8370-6462.1 29 SHAKOPE E Piliall Shakopee City Council 5.f August 19, 2025 Agenda Item: FM Fire Service Grant Program Application Prepared by: Andrea Harrell, Grants and Special Projects Coordinator Reviewed by: Chelsea Petersen, Assistant City Administrator Action to be considered: Adopt Resolution R2025-092, approving an application to the FM Fire Service Grant program. Motion Type: Simple Majority Background: The FM Fire Service Grant program is a dedicated grant program designed to strengthen the capabilities of fire service organizations in preparing for emergency situations through comprehensive pre -incident planning. The initiative aims to provide financial support to fire services to develop, upgrade, and implement effective pre -incident plans that enhance their readiness and response strategies. The City of Shakopee is seeking funding to purchase and implement tablets in the emergency apparatus to run existing pre -plan software. Recommendation: Adopt Resolution R2025-092. Budget Impact: The grant requires a 0% match. Attachments: Resolution R2025-092.docx 30 RESOLUTION R2025-092 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY TO SUBMIT A FM FIRE SERVICE GRANT PROGRAM APPLICATION WHEREAS, the City of Shakopee supports the application made to the FM Fire Service Grant program, and WHEREAS, the application is to obtain funding to purchase and implement tablets to run existing pre -plan software, and WHEREAS, the City of Shakopee recognizes a 0% match is required and will be provided through the Surface Water Fund. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: if the City of Shakopee is awarded a grant by the FM Fire Service, the City of Shakopee agrees to accept the grant award and may enter into an agreement with FM Fire Service for the above -referenced project. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 19th day of August 2025. Matt Lehman, Mayor of the City of Shakopee ATTEST: Richard Parsons City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 31 SHAKOPE E Piliall Shakopee City Council 5.g August 19, 2025 Agenda Item: Policy and Standard Operating Procedure Development Prepared by: Chelsea Petersen, Assistant City Administrator Reviewed by: Action to be considered: Adopt the draft policy for Policy and Standard Operating Procedure Development. Motion Type: Simple Majority Background: As part of the APWA and CAPRA accreditation processes, many city policies are being reviewed and updated. This policy will provide a consistent framework that all city departments can use when it comes to policy development, review, structure, and organization. Recommendation: Adoption as requested. Budget Impact: N/A Attachments: Policy and Standard Operating Procedure Development 32 SHAKOPEE Piiikil Policy and Standard Operating Procedure Development Number: 10.01.01 Adopted: TBD Amended: POLICY CONTENTS I. Issuing Authority 1 II. Scope 1 III. Summary of Guidance 1 IV. Definitions 1 V. Codification 2 VI. Index of Chapters 2 VII. Policy Statement 2 VIII. New Policies and Substantial Revisions 3 I. ISSUING AUTHORITY City Council through City Administrator. II. SCOPE This policy applies to all City of Shakopee staff, regarding policy and standard operating procedure development, revision, approval, implementation, codification, and review. III. SUMMARY OF GUIDANCE The City of Shakopee creates and maintains policies to establish responsibility, accountability and integrity and is committed to ensuring that all city policies are managed in a manner that is compliant and consistent with legal and regulatory requirements and aligns with the city's values. This guidance is intended to assist departments in developing and revising policies and standard operating procedures that are issued. IV. DEFINITIONS Policy: City Council enacted rules or regulations that serve as a guide for the actions and decisions of staff in the administration of programs and services. 33 Standard Operating Procedure (SOP): Administrative processes, procedures and guidance to support policy or ordinance enacted by City Council or general operations and administration. V. CODIFICATION The Department of Administration is responsible for codifying policies and standard operating procedures. A. Policies All policies will be numbered and coded in the following manner: Chapter Section Version Description [xxx] . [xxx] . [xxx] . (insert description) Example: a policy for finance would be similar to: 34.01.01 Purchasing Policy If a policy is in support of an existing ordinance, the chapter and section number of the policy should match the chapter and section number of the ordinance. B. Standard Operating Procedures All standard operating procedures will be numbered and organized in a manner appropriate for the department(s) responsible for the SOP. If an SOP is in support of an existing policy or ordinance, the chapter and section number of the policy or ordinance should be noted in the summary and/or introductory sections of the SOP. VI. INDEX OF CHAPTERS • 10 - General Provisions • 30 - Administration • 50 - Public Works • 70 - Public Safety and Wellbeing • 90 - Parks, Trails, and Public Amenities • 150 - Land Use, Development, and Economic Growth VII. POLICY STATEMENT The City of Shakopee follows a consistent policy development, review and approval process as detailed in this policy. The City Clerk is responsible for the collection and preservation of all city policies. All polices must: Page 2 of 3 34 • Communicate effectively, be easily comprehended and accessed, and internally consistent; • Drafted using the City template; • Developed with input from key stakeholders; • Approved by City Council (policy) or the City Administrator (procedure); • Reviewed regularly and kept current. VIII. NEW POLICIES AND SUBSTANTIAL REVISIONS The process for creating new city policies and making substantive revisions to existing policies include the following steps and responsibilities: A. Policy Development The Department Head responsible for the policy will: • Draft the policy in coordination with any internal and external stakeholders, City Administrator, and the City Attorney (if necessary) • Format the policy using the city template as outlined above • Submit the policy for City Administrator consideration • If approved by the City Administrator, submit the policy for City Council consideration • Review and update the policy, as necessary, at least every three years, or as otherwise directed by the City Administrator • Answer relevant questions concerning the policy, both during its development and after its publication B. Policy Implementation and Administration The Department Head responsible for the policy will: • Administer the approved policy, communicate with, and train applicable city staff with assistance from Communications staff • Maintain policy accuracy • Act as policy liaison to facilitate future policy modification and/or development • Maintain oversight of policy development, implementation, enforcement, and effectiveness Page 3 of 3 35 Piliall SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.h August 19, 2025 Approve Parking Restrictions on Shenandoah Drive Micah Heckman, Assistant City Engineer Alex Jordan, City Engineer Action to be considered: Approve a no parking zone and installation of "No Parking" signs on Shenandoah Drive. Motion Type: Approve Background: Engineering staff received reports of parking issues along Shenandoah Drive from Vierling Drive to Schenian Street. The reports stated that vehicles were parking too close to intersections and causing sightline issues. In addition, two new mid -block pedestrian crossings are being constructed along the Shenandoah Drive corridor and no parking restrictions will be added to provide adequate sight lines at those locations. After visiting the site, reviewing aerial images and roadway plans, the Traffic Safety Committee determined that no parking zones at key locations would eliminate the sightline restrictions. The signage will also help to clearly communicate to drivers where they are allowed to park and where they are not allowed to park. This will also make enforcement more clear for the Shakopee Police Department. See attached for a proposed layout of the parking restrictions. Recommendation: Approve the parking zone restriction. Budget Impact: No parking signs are manufactured and installed by the Public Works Department at a cost of $283 per sign. Nine signs will be installed, and will be funded through the Public Works Street Division operating budget. Attachments: Shenandoah Parking Restrictions 36 rr■ SHAKOPE E Piliall Shakopee City Council 5.i August 19, 2025 Agenda Item: Approval of the City Council Meeting Minutes for August 6, 2025 Prepared by: Rick Parsons Reviewed by: Action to be considered: Approve the City Council meeting minutes for August 6, 2025. Motion Type: Simple Majority Background: N/A. Recommendation: Approve the requested motion. Budget Impact: N/A. Attachments: City Council Minutes 08-06-2025.pdf 38 SHAKOPEE City Council City Hall 485 Gorman Street Shakopee, MN, 55379 Wednesday, August 6, 2025 7:00 p.m. Vision: Shakopee is a place where people want to be! A distinctive river town, with a multitude of business, cultural and recreational opportunities in a safe, welcoming, and attractive environment for residents and visitors. Mission: Our mission is to deliver high quality services essential to maintaining a safe and sustainable community. We commit to doing this cost-effectively, with integrity and transparency. 1) Call to Order 2) Roll Call PRESENT: Mayor Lehman, Council Member Contreras, Council Member Whiting, Council Member DuLaney, and Council Member Lara ABSENT: None. ALSO PRESENT: None. 3) Pledge of Allegiance 4) Special Presentations 4.a) Presentation by Representative Ben Bakeberg 5) Approval of Agenda Council Member Contreras made a motion to approve the agenda, second by Council Member DuLaney and the motion passed. 5 - 0 139 6) Consent Agenda 6.a) Authorize Final Acceptance and Payment for the Eagle Creek Boulevard and Vierling Drive Roundabout Project 6.b) Authorize Final Acceptance and Payment for the Colburn Drive Extension Project 6.c) Declare Costs to be Assessed and Establish a Public Hearing for the 2025 Full Depth Pavement Reconstruction Project 6.d) Accept Proposal from WSB for Design and Construction Services for the Quarry Lake Erosion Restoration Improvements Project 6.e) Surplus Equipment 6.f) Award a Contract for Marystown Road Reconstruction Project 6.g) Approve Off Sale and Sunday Liquor Licenses for Booze Bros dba Express Liquors 6.h) Approve 3.2 On Sale, Wine and Sunday Liquor Licenses for Soi21 Asian Bistro and Bar 6.i) Approve the Traffic Safety Committee Recommendations for Traffic Control Changes 6.j) Minnesota Department of Public Safety's Toward Zero Deaths Enforcement Program Grant Application 6.k) Minnesota Department of Public Safety's DWI Et Traffic Safety Officer Grant Program Application 6.l) Approval of the City Council Meeting Minutes for July 15, 2025 6.m) Award contract for the demolition of 2405 Jennifer Lane 6.n) Approve Change Order for Jackson Commons with Pathfinders 6.0) Approval of Civil Engineering Change and Fee Amount for Schroeder House - (item pulled for separate consideration) 6.p) Approve a Special Event Permit and a Temporary Liquor License for the City of Shakopee Tap 2025 Event. 6.q) Approve a Special Event Permit and a Temporary Liquor License for the Shakopee Chamber of Commerce 6.r) Approve a Tobacco License for Booze Bros dba Express Liquors 240 6.$) Request for a hearing on Tuesday September 2, 2025 for Texas Roadhouse Holdings LLC. dba Texas Roadhouse 6.t) Authorize Execution of a Local Road Improvement Program (LRIP) Grant Agreement with MnDOT for the Marystown Road Reconstruction Project 6.u) Social District Management Plan - (item pulled for separate consideration) 6.v) Ordinance O2025-019, Amending the City's Adopted 2025 Fee Schedule Council Member Lara made a motion to approve the consent agenda with the modification of pulling item 6.o and 6.0 for separate consideration, second by Council Member Whiting and the motion passed. 5 - 0 7) Public Comment 8) Business removed from consent agenda 6.0) Approval of Civil Engineering Change and Fee Amount for Schroeder House Council Member DuLaney made a motion to approve the Contract with Houston Engineering (formerly HTPO) for Civil Work for an amount not to exceed $35,000, second by Council Member Lara and the motion passed. 5 - 0 6.u) Social District Management Plan Council Member Whiting made a motion to approve the Social District Management Plan with the modification of clarifying the answer to the second FAQ question, second by Council Member DuLaney and the motion passed. 5 - 0 9) Recess for Economic Development Authority Meeting Council Member Lara made a motion to recess to the Economic Development Authority meeting, second by Council Member Contreras and the motion passed. 5 - 0 10) Reconvene 11) General Business 11.a) Monthly Financial Review - June 2025 Informational only. 11.b) Zoning Map Amendment and Preliminary and Final Plat of Elliana Estates 341 Council Member Contreras made a motion to approve Ordinance O2025-018 approving the zoning map amendment rezoning the property from Agricultural Preservation (AG) to Urban Residential (R1 - B), second by Council Member Lara and the motion passed. 5 - 0 Council Member Whiting made a motion to approve Resolution R2025- 075 approving the Preliminary Et Final Plat of Elliana Estates, second by Council Member Contreras and the motion passed. 5 - 0 11.c) Community Center 2026 Fee Increase Council Member Whiting made a motion to approve the proposed fee increases for the Shakopee Community Center beginning in 2026, second by Council Member DuLaney and the motion passed. 5 - 0 12) Workshop 12.a) Review Preliminary 2026-2030 Capital Improvement Plan (CIP) 12.b) Discussion on Dog Boarding and Daycare in Residential Zones Council Member Lara made a motion to recess for 10 minutes, second by Council Member Contreras and the motion passed. 5 - 0 12.c) Short Term Rental Issues and Regulations 12.d) Improper Park Use Issues at Quarry Lake and potentially Jackson Commons 12.e) Discussion on the Future of the Park and Recreation Advisory Board in light of CAPRA requirements for accreditation 13) Reports 13.a) City Bill List 13.b) News and Announcements 14) Other Business 15) Adjourn to August 19, 2025, at 7:00 pm Council Member Lara made a motion to adjourn to August 19, 2025, at 7:00 pm, second by Council Member DuLaney and the motion passed. 5 - 0 442 SHAKOPE E Piliall Shakopee City Council 5.j August 19, 2025 Agenda Item: Approve the Scott County Highway 17 Expansion Project Layout Prepared by: Alex Jordan, City Engineer Reviewed by: Action to be considered: Authorize staff to approve the County Highway 17 Expansion Project Layout Motion Type: Simple Majority Background: At the July 15, 2025 Council Meeting, Scott County Transportation staff provided an update on the County Highway (CH) 17 Expansion Project, including changes made to the preliminary layout following the public open house. The project includes reconstruction of CH 17 to a 4 -lane divided rural roadway with pedestrian trails along both sides of the roadway from 160th Street to CH 14. Intersection Improvements (multi -lane roundabouts) are proposed at the intersections of CH 82 and CH 14. Access restrictions are proposed at driveways and local roadway connections with CH 17, including at Marcia Lane, Norton Drive and Eaglewood Lane. The project is proposed to be constructed in 2027 and 2028. Scott County is requesting the City officially approve the preliminary design by signing the layout prior to proceeding with final design and right-of-way acquisition. Staff supports the project, design and cost participation and is recommending the City Council authorize the approval. Recommendation: Authorization as requested Budget Impact: None. The City's Cost Share for the project will be finalized through execution of a Cooperative Agreement with Scott County prior to construction. Attachments: Layout-CSAH 17-08.08.2025-Signed.pdf 43 SHAKOPE E Piliall Shakopee City Council 5.k August 19, 2025 Agenda Item: Joe Schleper Stadium Baseball Field improvements - Sod improvements Prepared by: Bill Delaney, Senior Planner Reviewed by: Michael Kerski Action to be considered: Accept donation and work of field improvements Motion Type: Simple Majority Background: In preparation for hosting the Minnesota Baseball Association's 2026 State Amateur Tournament, the Joe Schleper Stadium Fund (JSSF) plans to repair the infield grass at Joe Schleper Stadium. The project will involve removing the existing sod approximately 6-10 feet on either side of the 1st and 3rd baselines, as well as the infield areas between 1st and 2nd base, 2nd and 3rd base, around the pitching mound, and around home plate. Excess dirt and aglime will be removed to level the field. The sod will then be replaced, using the existing sod where possible and new sod where necessary. Trinity Land Services will complete the work in late August or early September, following the conclusion of the Indian, Coyote, and Legion baseball seasons. This schedule will allow adequate time for the new sod to establish before the tournament. The exact start date will be confirmed and communicated once set. JSSF will cover all costs for sod and labor. The City's role will be limited to a few minor tasks, including adjustments to irrigation heads and limited soil removal. Recommendation: Approve the described repairs and donation by the Joe Schleper Stadium Fund Budget Impact: None, JSSF will pay for sod and labor associated with this project. 45 Attachments: Infield repairs diagram.jpg 46 RED: 4.5' Transition Cut GREEN: 3' Transition Cut WILLA' SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.1 August 19, 2025 Approve a Temporary Liquor License for the Shakopee Chamber of Commerce Heidi Emerson, Deputy City Clerk Action to be considered: Approve a temporary liquor license for the Shakopee Chamber of Commerce Fall Food Truck Festival being held on September 20, 2025. Motion Type: Simple Majority Background: The Shakopee Chamber of Commerce has submitted an application for a temporary liquor license for the Fall Food Truck Festival being held on September 20, 2025 at The Landing, 2187 County Road 101. The hours of the event are 11:00 a.m. - 8:00 p.m. The application is in order and the fee has been paid. Recommendation: Approve the above requested motion. Budget Impact: N/A Attachments: 48 WILLA' SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 5.m August 19, 2025 Approve Extended Construction Hours for the Marystown Road Reconstruction Project Alex Jordan, City Engineer Action to be considered: Approve suspension of City Code Sec. 130.45, Noise Elimination and Noise Prevention, Sudb. C.4, Hourly Restrictions on Certain Operations, allowing the Marystown Road Reconstruction Project contractor, S.M. Hentges and Sons, Inc. and their subcontractors, to perform work from 7 a.m. to 7 p.m. on Saturdays through the end of August 2026. Motion Type: Simple Majority Background: City Code Section 130.45 restricts the hours of construction operation from 7 a.m. to 10 p.m. on weekdays, and 9 a.m. to 9 p.m. on weekends and holidays. Contractors working on the Marystown Road Reconstruction Project have requested the city extend working hours to begin work at 7 a.m. on Saturday mornings through the end of August 2026. This extension will help meet the project deadlines. The impacts from the earlier generated noise is not anticipated to be a substantial nuisance in this area of the city for the prescribed times. If property owner complaints are received by the City, the ordinance suspension can be revoked at the discretion of the City Engineer. City Council's approval, a public news release and notice would be placed in the City's local paper and on the City's website to meet the City Code requirements. Recommendation: Approve the request Budget Impact: None 49 Attachments: 50 Piliall SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 8.a August 19, 2025 Comprehensive Revenue Policy - Parks and Recreation Kelsi McNutt, Parks and Recreation Director Action to be considered: Approve the comprehensive revenue policy for the parks and recreation department. Motion Type: Simple Majority Background: The Comprehensive Revenue Policy fulfills a required standard for the CAPRA accreditation process. It also provides a clear, consistent, and practical framework for managing the department's financial operations. The policy is designed to guide decisions related to pricing, cost recovery, and resource allocation. This approach ensures that programs and services are priced in alignment with the degree of public and individual benefit they provide, supporting long-term service delivery while maintaining community accessibility and value. Recommendation: Approve the comprehensive revenue policy for the parks and recreation department. Budget Impact: Approval of the Comprehensive Revenue Policy will not have an immediate budget impact; however, it establishes a clear framework for sound financial and pricing decisions. By aligning program and service fees with public and individual benefit, setting cost recovery targets, and incorporating market comparisons, the policy positions the department to strategically allocate resources, maintain community access, and support long-term fiscal sustainability. 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W O tr) -0 C N dJ i (J i U N V (73 I— Q 03 • • cu k— ✓ N CU -O CU >� 0.1 c v > I CU O U •E O o U • C •- _N -O O >, O W U tri - - (13 O) E sw O Q Q W N c O it > > N • i H -a • E 0 Q C ^W W v 1 C O °+-) • Approve the Parks and Recreation Comprehensive Revenue Po SHAKOPE E Parks 81 Recreation Comprehensive Revenue Policy Adopted: TBD Amended: POLICY CONTENTS I. ISSUING AUTHORITY 1 II. PURPOSE 1 III GUIDING PRINCIPLES 2 IV. COST RECOVERY MODEL 3 V. PRICING AND FEE PHILOSOPHY 3 VI. FEE ESTABLISHMENT 4 A. Programs and Services 4 B. Resident and Nonresident Rates 4 C. Community Center Memberships and Daily Admission Fees 4 D. Ice Arena Fees 5 E. SandVenture Aquatic Park Fees 5 F. Scholarship 5 G. Sponsorships and Volunteers 6 VII. Revenue diversification 6 VIII. monitoring and evaluation 6 IX. Conclusion 6 I. ISSUING AUTHORITY City Council through City Administrator. II. PURPOSE The purpose of this Comprehensive Revenue Policy is to establish a clear, consistent, and practical framework for managing the financial operations of the Shakopee Parks and Recreation Department. It is intended to support long-term service delivery by 67 guiding decisions related to pricing, cost recovery, and resource allocation using the GreenPlay LLC Cost Recovery Pyramid Model. The Department recognizes the importance of generating revenue from programs and facility use to support the overall budget while maintaining accessibility and value for the community. Since programs vary in the degree of public and individual benefit, fees should be set accordingly, reflecting both the value to the participant and the level of community benefit provided. The GreenPlay Pyramid Model provides a structured approach to classify services and set cost recovery goals. It is widely used in the parks and recreation industry to ensure resources are allocated strategically, and services are priced based on benefit received, rather than a one -size -fits -all model. III. GUIDING PRINCIPLES Vision Statement: Shakopee is a distinctive river town with a variety of business, cultural, and recreational opportunities in a safe, welcoming, and attractive environment. Our vision is for Shakopee to continue being a place where people want to live, work and play! Mission Statement: Our mission is to deliver high quality services essential to maintaining a safe and sustainable community. We commit to doing this cost effectively, with integrity and transparency. Purpose Statement: Working together, the Parks and Recreation Department provides fun and engaging recreational programs, activities, and spaces for the betterment of the community. • Sustainability: Ensure long-term financial sustainability of the parks and recreation department through balanced revenue and cost recovery strategies. • Accountability: Make informed, data -driven decisions regarding service pricing, cost recovery, and the responsible use of alternative funding sources such as sponsorships and scholarship programs. • Clarity: Provide a transparent and understandable pricing and cost recovery structure for staff, elected officials, and the public. • Consistency: Apply consistent methodology when classifying services, evaluating costs, and setting fees. Page 2 of 7 68 • Review and Improvement: Periodically evaluate and update practices based on operational data and community trends. IV. COST RECOVERY MODEL Tier Description Cost Recovery Target Subsidy Level 1 Community Benefit 25%-50% 75%-50% 2 Mixed Benefit 50%-75% 25%-50% 3 Individual Benefit 75%-100% Minimal Subsidy / Full Cost Recovery 4 Profit Centers 125%+ No Subsidy Cost Recovery Target: The percentage of the total cost that is intended to be offset through generated revenue, such as fees, charges, or other revenue sources. It represents the financial goal for recouping expenses associated with delivering the program or service. V. PRICING AND FEE PHILOSOPHY • Tier 1: Community Benefit o This tier includes programs and services that enhance community well-being, promote public health, and improve overall quality of life. These offerings provide significant value to the broader community and are primarily funded through the general fund. To support accessibility, participation fees are kept low or eliminated altogether. Additional funding may be supplemented through grants, sponsorships, and partnerships with local businesses and organizations. • Tier 2: Mixed Benefit o This tier includes programs and services that provide value to individual participants while also contributing to broader community well-being by promoting public health, safety, and social connection. These offerings balance individual and community benefits, with fees typically set to recover a portion of program costs. Remaining costs may be subsidized through the general fund, grants, or sponsorships to encourage participation and maintain accessibility. • Tier 3: Individual Benefit o This tier includes programs and services that provide direct value to individual participants with limited broader community impact. These offerings are typically priced to recover 75% to 100% of the cost of delivery, including both direct and indirect expenses. • Tier 4: Profit Centers o This tier includes programs and services that exceed full cost recovery, generating revenue beyond direct and indirect expenses. These offerings operate as profit centers and may fall outside the department's core mission. Revenue Page 3 of 7 69 generated in this tier helps subsidize programs and services in lower tiers, supporting greater community access and affordability. VI. FEE ESTABLISHMENT A. Programs and Services Department staff are responsible for calculating the full cost of providing each program or service, which includes both direct costs and indirect costs. After determining total costs, staff apply the appropriate cost recovery rate based on the program's classification within the pricing philosophy tiers. As part of the fee -setting process, staff also conduct a market comparison, reviewing fees charged by both nonprofit and for-profit agencies in the region to ensure the City remains competitive and aligned with current pricing trends. Final fees are set to reflect both market conditions and the cost recovery goals established for each program. B. Resident and Nonresident Rates Resident rates are intentionally set lower than nonresident rates to acknowledge the financial support residents provide through local taxes, which help fund Parks and Recreation operations. Nonresidents, who do not contribute to the City's tax base, are charged a higher fee to more equitably share the cost of services. For programs, the nonresident rate is calculated by adding 30% to the base program fee established through the cost recovery model. Nonresident fees apply to individuals living outside the city limits of Shakopee. For recreation facilities, including the Community Center, Ice Arena, and SandVenture Aquatic Center, nonresident admission rates, passes and memberships are set at 40% higher than resident rates to account for facility overhead costs. Nonresident fees do not apply to programs, services, or offerings classified as Tier 4. Tier 4 offerings operate as profit centers, with pricing set at market value and designed to generate a minimum of 25% revenue beyond total costs. C. Community Center Memberships and Daily Admission Fees Membership rates are structured to encourage ongoing participation, with pricing set so that four individual daily admissions exceed the cost of a monthly membership. Page 4 of 7 70 The Adult Monthly Membership serves as the foundational rate, reflecting the average cost of usage and services for one adult, and all other membership rates are calculated from this baseline. The Dual Membership, defined as two adults over the age of 18 residing at the same address, is priced at 1.5 times the adult rate. This reflects shared access while offering a cost savings compared to purchasing two separate memberships and acknowledges the reduced administrative and operational costs of managing a dual account. The Household Membership, defined as two adults over the age of 18 and their tax dependents residing at the same address, is priced at twice the adult rate. This offers the best value for families, maintaining affordability while accounting for higher facility usage. Specialty Memberships, including youth, senior, and military, are priced at 15% below the adult rate to recognize these groups and reduce barriers to participation. Annual Memberships are priced at the equivalent of 11 monthly payments, providing one month free for members who pay in full. D. Ice Arena Fees Ice rental fees are reviewed annually to ensure they remain competitive and align with current regional market trends. Rates are benchmarked against comparable municipalities with similar ice arena facilities. The pricing structure includes regular rates and prime time rates, with prime time rates set higher to reflect increased demand during peak usage hours. E. SandVenture Aquatic Park Fees The individual season pass is priced to equal the cost of 10 daily admissions, providing value for frequent visitors. The family season pass is priced to equal the cost of a family of three visiting the pool 10 times during the season. The senior and military rate is set at 15% below the standard individual rate for memberships. Twilight fees, offered for entry later in the day, are set at a 25% discount from the regular daily pass rate to encourage off-peak attendance. Punch passes are priced to reflect $0.25 off daily admission, these are valid for one season and are transferable. F. Scholarship To support broader community access to programs and services, the Parks and Recreation Department offers a scholarship program that provides financial assistance to eligible residents. Page 5 of 7 71 Scholarships are available for Tier II and Tier III programs, which carry higher fees due to their more individualized nature. G. Sponsorships and Volunteers In addition, the department actively seeks sponsorships and donations from community partners, businesses, and organizations to help offset program costs and increase access to Tier I offerings that provide broad community benefit. The department also maintains a volunteer program, which plays a key role in supporting cost-effective service delivery by supplementing staff costs during community events and programs VII. REVENUE DIVERSIFICATION The department will pursue a diverse range of revenue sources to enhance financial sustainability: • User fees • Program fees • Memberships and season passes • Daily admissions • Facility and park rentals • Sponsorships and advertising • Grants • Vending • Public/Private partnerships VIII. MONITORING AND EVALUATION • Staff will annually assess the cost recovery levels for all programs and facilities as part of the budget process. • A program classification should be completed for all new and recurring services to ensure accurate tier placement. • The revenue policy will be reviewed annually and revised as needed as part of the budget process to reflect operational, demographic and economic changes. IX. CONCLUSION The City of Shakopee Parks and Recreation Comprehensive Revenue Policy provides a clear and consistent framework for financial decision -making, ensuring that programs and services are priced in alignment with their public and individual benefit. By applying the GreenPlay LLC Cost Recovery Pyramid Model, the department can strategically allocate resources, support long-term Page 6 of 7 72 financial sustainability, and maintain broad community access to high quality parks and recreation services. This policy supports transparency and accountability by establishing defined roles, cost recovery targets, and procedures for pricing, subsidy, and financial assistance. Through a combination of tax support, user fees, sponsorships, grants, and volunteer contributions, the department is able to offer a diverse portfolio of services that meet community needs while maintaining responsible fiscal stewardship. Ongoing monitoring, evaluation, and updates to this policy will ensure it remains responsive to economic conditions, service demand, and community expectations. As Shakopee continues to grow and evolve, this revenue policy will serve as a foundational tool to balance accessibility, affordability, and sustainability in delivering parks and recreation services to all residents. Page 7 of 7 73 Piliall SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 8.b August 19, 2025 Healing Center MUSA Comprehensive Plan Amendment Michael Kerski, Planning and Development Director Michael Kerski, Director of Planning and Development Action to be considered: Approve Resolution R2025-090 for a Comprehensive Plan Amendment to Figure 4.60 - Metropolitan Urban Service Area (MUSA) in the 2040 Comprehensive Plan for the Healing Center proposed development @ the southwest corner of Crest Ave and Muhlenhardt Rd. Motion Type: Four -Fifths Vote Background: The Shakopee Mdewakanton Sioux Community is requesting approval of a Metropolitan Urban Service Area (MUSA) extension for properties at the southwest corner of Crest Ave and Muhlenhardt Road. The Metropolitan Council has requested an extension of MUSA to this area so that the SMSC can obtain sewer service to the development of the SMSC's healing center. They could do septic or use their own system but have chosen to access utilities for both sewer and water that are across the street from the development. The SMSC has entered into an agreement with the city and Shakopee Public Utilities for these utility services. Recommendation: Approve requested action. Budget Impact: N.A. Attachments: MUSA Expansion - Site Aerial.pdf MUSA Resolution SMSC.docx 74 u, r- RESOLUTION R2025-090 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, APPROVING A COMPREHENSIVE PLAN AMENDMENT TO FIGURE 4.60 - PLANNED METROPOLITAN URBAN SERVICE AREA (MUSA) IN THE 2040 COMPREHENSIVE PLAN WHEREAS, The City of Shakopee, applicant, has made an application for a Comprehensive Plan amendment to Figure 4.60 — Planned Metropolitan Urban Service Area (MUSA) in the 2040 Comprehensive Plan (see exhibit A) for property included in the SMSC Healing Center; and WHEREAS, all required public notices regarding the public hearing for the Comprehensive Plan amendment were duly sent and posted, and all persons appearing at the hearing have been given an opportunity to be heard thereon; and WHEREAS, the Planning Commission of the City of Shakopee did review the application on August 7, 2025, and recommended approval; and WHEREAS, the City Council of the City of Shakopee did review the application on August 19. 2025, and adopted the following findings: NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Shakopee hereby adopts the following findings of facts relative to the Comprehensive Plan Amendment request: Criteria #1 The original zoning ordinance is in error. Finding #1 The original zoning is not in error. Criteria #2 Significant changes in community goals and policies have taken place. Finding #2 Significant changes in community goals and policies have not taken place. This project would be consistent with the 2040 Comp Plan guiding. Criteria #3 Significant changes in development patterns have occurred. Finding #3 Significant changes in development patterns have occurred since this development was not considered because it is on Trust Land. 76 Criteria #4 The Comprehensive Plan requires a different provision. Finding #4 The Comprehensive Plan does not require a different provision. BE IT FURTHER RESOLVED, to incorporate the changes, the city will modify its official land use map; and FURTHER, approval of the comprehensive plan amendment is contingent upon, and subject to, the required review and response by the Metropolitan Council. Adopted in adjourned regular session of the City Council of the City of Shakopee, Minnesota, held this 19th day of August 2025. Matt Lehman, Mayor of the City of Shakopee ATTEST: Rick Parsons, City Clerk 77 Piliall SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 9.a August 19, 2025 Overview of 2026 Preliminary Budget and Levy Nate Reinhardt, Finance Director Action to be considered: Discuss and provide direction regarding the 2026 preliminary levy and budget. No formal action is being requested. Motion Type: Informational only Background: The City Council must certify a proposed levy on or before September 30, 2025. It is anticipated that the Council will consider adoption of the proposed maximum tax levies for both the City and the EDA on Tuesday, September 16. See attached memo for further information. Recommendation: Receive overview of 2026 preliminary levy and budget and provide feedback to staff. Budget Impact: The 2026 City and EDA levies provide the necessary funds to maintain the city's current service levels. Attachments: 2026 Levy & Budget Memo 8-19-2025.pdf Budget Worksession 8-19-25 (powerpoint).pdf 78 • SHAKOPEE To: Mayor and Council Members From: Nate Reinhardt, Finance Director Cc: Bill Reynolds, City Administrator Date: August 19, 2025 Re: 2026 Property Tax Levy & Budget Background Each year the city must prepare a budget and property tax levy for the following year. Staff analyzed revenues, expenditure information and initiatives to prepare a budget and levy for your consideration. From providing fun recreation programs and beautiful parks to ensuring safe neighborhoods, providing high -quality services enhance and protects people's lives. Responsible fiscal management also builds the foundation for the city to run smoothly and provide effective, innovative programs and services while keeping in mind ways to evolve to meet future expectations and demands. Decisions are made with the future in mind to ensure the city's ongoing ability to provide high quality services at a reasonable price. Shakopee continues to remain in an extremely strong financial position. The city's AA+ long term credit rating reflects the rapidly growing local economy, strong reserves, manageable debt burden and strong financial management practices and policies. The city maintains a very diverse tax base across all sectors, entertainment, industrial, commercial and a range of housing options. The city continues to place an emphasis on long term financial planning including a long-term financial plan, a 15 -year capital improvement plan, establishment of internal service funds, and financial projections of our various funds. Levy Request & Impact It's important to note that we are in the early stages of budget development. Staff continues to make adjustments to the budget as new information is received. Departments are currently inputting their operating budgets, which will be completed by the end of the month. Based on current data, the preliminary 2026 city levy required is $28,408,100, which is an increase of $1,664,050 or 6.22 percent over last year, and a EDA levy of $550,000, which is an increase of $50,000 from last year. For the median value home, whose property value increased from $350,700 to $361,300 (3.02 percent), this equates to an increase of $66 or (7.03 percent) annually in city property taxes. 79 The breakdown and comparison of the current preliminary 2026 levy is as follows: Summary of Levy Changes — 2026 Budget City of Shakopee Levy Analysis August 1, 2025 2026 2025 Final Preliminary City Levy General Fund $ 23,235,050 Abatements 120,000 Capital Improvement Levy 1,200,000 Debt Service 2016 Abatement 2022A Improvement Total Debt Service Total City Levy 2,189,000 2,189,000 $ 24,599,100 120,000 1,500,000 Increase/ (Decrease) % Change $ 1,364,050 300,000 5.87% 0.00% 25.00% 2,189,000 - 0.00% - - 0.00% 2,189,000 $ 26,744,050 $ 28,408,100 $ 1,664,050 0.00% 6.22% Shakopee EDA Special Levy $ 500,000 $ 550,000 $ 50,000 10.00% Total City and EDA Levies $ 27,244,050 $ 28,958,100 $ 1,714,050 6.29% A summary of changes, in comparison to 2025, impacting the property tax levy are as follows with detailed information on each section following the summary. The amount shown in red parentheses represents decreases in the property tax levy, as an example an increase in fee revenues would result in less property tax needed to fund those services. Description Levy Impact Revenues (increase) $ (1,957,780) Transfers from other funds (increase) (24,000) Expenditures: Wages & benefits 2,120,800 Operating expenses 916,330 Internal rent changes 359,200 One-time adjustments (50,500) Capital Improvement Levy 300,000 Debt Service - Change in property tax levy I $1,644,050 The next few pages provide a breakdown of the summarized changes shown in the table above. 80 Revenues The city is projecting an overall net increase of $1,957,780 in non -property tax revenues for the 2026 budget a summary of revenue changes are as follows with explanations below: Description Change Contracted public safety services (offset with expenses) $616,500 Building permit revenues 450,000 Community Center revenues 331,700 Restaurant licenses and inspections (offset with inspector wages and benefits) 122,000 Police state aid 100,000 Municipal State Aid (MSA) maintenance funds 75,000 Interest income (General fund) 75,000 SPU pilot fee 55,000 Fire state aid 45,000 SandVenture revenues 37,000 Tribal contribution 25,000 Ice Arena revenues 25,000 MS4 administration fee 25,000 Other (net adjustments) 15,580 State building official grant (60,000) Change in Revenues $1,957,780 Several organizations contract with the Shakopee police department to provide services during the year. With the addition of concerts at the amphitheater we have increased contracted revenue by $616,500. This revenue is offset by budgeted increases in staffing overtime and contracting with other agencies to fulfill these agreements and related supplies and equipment. The city's building permits have been strong over the past few years with an influx of commercial and residential development. The city has historically been conservative when forecasting and budgeting development and related building permit revenue. The city's 2026 forecast for building permit revenue includes a $450,000 increase in budgeted building permit revenue. In total, the city has budgeted $3.88 million in building permit related revenues. Community center revenues have been increased to reflect proposed community center fee increases for 2026. The recreation department is in the process of creating a comprehensive revenue policy and fee adjustments will closely align with that policy. The community center will continue to remain one of the most affordable options. The city is proposing to add a dedicated health inspector to ensure the safety and cleanliness of our 12 hotels and 72 restaurants. New licenses and inspection fees are budgeted at $122,000 to offset the cost of the new position. 81 Transfers to the General Fund Transfers from other city funds to the General Fund help pay for operating costs. Description 2025 2026 Change Public safety fund (patrol officer reimbursement) $126,000 $100,000 (26,000) Self-insurance fund 350,000 350,000 Sewer/storm water (allocation of admin overhead) 400,000 400,000 EDA (allocation of admin overhead) - 50,000 50,000 Change in transfers $24,000 The city received $1.99 million in one-time public safety aid in 2023 which was placed in a separate Public Safety Aid special revenue fund. Funding was provided in 2024 and 2025 to pay for a portion of the cost of two additional officers. These positions weren't hired until fall of 2024 and as a result, not all funding has been utilized. Approximately $100,000 remains in the fund which is proposed to be utilized with the 2026 budget. Staff is proposing to utilize $350,000 of fund balance from the city's self-insurance fund to offset costs associated with an increase in the employer share of health insurance premiums (this is the same amount that was used for the 2025 budget). The city continues to explore a potential implementation of a Scott County health insurance pool, a partnership with Scott County and cities, that would increase the plan participants and save money over the long-term. Funding of $600,000 was set -aside initially in 2017 as the city explored their own self-insurance options. Staff is proposing a new recurring annual transfer beginning in 2026 from the EDA to the General fund in the amount of $50,000. Similar to the city utility funds (sewer and storm water), the EDA receives administration support from general fund operations including the city council, finance, information technology, communications and human resources. From a financial standpoint, the administration allocation would better reflect the full cost of EDA operations. A corresponding $50,000 increase in the EDA levy is being proposed, resulting in no impact on the EDA operational funding. 82 Expenditures A number of factors will impact the cost of operations in next year's budget. The General Fund expenditures are budgeted to increase in total by $3,345,830. The expenditures have been categorized in this section as wages and benefits, operational (on- going) expenditures, rent (equipment and capital replacement) and one-time adjustments. Wages and benefits Description Change Cost of living adjustment — 3% (3.5% PW Union) $720,000 Pay step changes 388,000 Compensation study implementation (non-union) 320,000 Health Insurance — 15% estimate 248,000 Public safety OT (offset by contracted revenue) 141,000 Health inspector (New) 121,000 Elections judges 94,000 MN Paid Leave (employer contribution) 93,000 Recreation part-time 58,000 Clerk Administrative Assistant (part-time to full-time) 54,000 Fire part-time 51,000 Fire Inspector added July 2025 (half year impact) 49,000 PT Marketing Specialist (split HR and Rec,) 39,000 Other (net adjustments) 39,800 Workers compensation — reduced rates _ (295,000) Change in wages & benefits $2,120,800 Wages and benefits account for nearly 70% of the City's General Fund costs. The City has three unions (Patrol, Sergeants, Public Works), all three union contracts were revised during 2024 and cover a three year period (2024-2026). The 2026 budget has been built with the assumption that the Patrol and Sergeants unions and non-union wages will see an equivalent 3.0 percent cost of living adjustment. The Public Works union includes a 3.5 percent cost of living adjustment. Across all employee groups the cost of living adjustment amounts to an increase of approximately $720,000. The city maintains pay plans for all employees that include step increases on employee anniversary dates. Budgeted step increases amount to $388,000. The city recently completed a market compensation study for all non-union employees. The goal of the study was to evaluate wages of non-union full-time staff with our peer comparable cities (Maplewood, Coon Rapids, Lakeville, Roseville, Blaine, St. Louis Park, Golden Valley, Inver Grove Heights, Burnsville and Savage). The City Council has provided guidance that employees should be compensated at the salary mid -point of our comparable cities. The study showed our pay plan is behind market averages and included several positions that were significantly behind the average wage of similar positions. As a result, the following modifications have been proposed to the non-union pay plan: 83 1) Proposed 1% market adjustment 2) Proposed creation of an additional step at 2 percent above the final step for each pay grade 3) Elimination of step 1 for grades 200 through 240 (which places the number of steps in line with other pay grades) 4) Positions that are six percent or more below the market will be adjusted up to a newly created "half" grade. This grade will be inserted at the mid -point between the current grade and next higher grade. These new grades impacted 18 positions (21 employees). These pay plan adjustments will allow the city to remain competitive, re -align positions that were out of the market average and still retain our current pay plan framework. The total budget impact of these changes amount to $320,000. The following chart provides a comparison line showing the current wage, market average and proposed wage adjustments for grade mid- points. Compensation Study -Shakopee {non-union employees) i r 1 $75.00 Shakopee Marke€ Mid-pornt Shakopee Mid -point )Cu Mid -paint) vent) proposed) s ,+ r r r r r r r r r r r r r ,. r r r r r $55.0: - r F r r r r s r $45.00 r r - r r $35.00 r r $25.00 117. 120 130 140 150 160 170 186 19' 200 210 220 230 240 250 At this point, the health insurance premium amounts for 2026 are unknown. The preliminary 2026 budget currently includes an increase in health insurance premiums of 15.0 percent. This increase along with changes in employee plan elections calculate to an increase of $248,000. We have seen a number of employees move from family to single coverage or from low to high deductible options. The city has seen premium increases of 16.7 percent and 20.9 percent in the past two years. We continue to explore a health insurance pool with Scott County and cities of Scott County, which could occur in 2027. To offset the increase the city is proposing to utilize $350,000 of fund balance previously set aside for potentially moving to self -insured health insurance, which is identified in the transfers section of the memo. The preliminary budget includes the following new items impacting the 2026 budget. - Building Health Inspector ($121k) — Shakopee needs a dedicated health inspector to ensure the safety and cleanliness of our 12 hotels and 72 restaurants, particularly with the opening of the 19,000 -seat amphitheater, which will significantly increase 84 tourism and food service demand. A full-time inspector will help maintain public health standards, respond promptly to complaints, and support local businesses in meeting state and local regulations —safeguarding both residents and the thousands of visitors expected to attend events throughout the year. The position will be offset by restaurant and hotel licenses and inspection revenues. - MN Paid Leave ($93k) — state mandated leave program that requires a .44% contribution of gross wages from employer and employee. The new leave provides job -protected paid time off for eligible employees (up to 20 weeks per year) to care for themselves or family members due to medical reasons, family needs or safety concerns. - Clerk Administrative Assistant ($54k) — proposed change from part-time administrative position to a full-time position with benefits. Will provide consistent front -desk customer service and support other positions by enabling them to focus on their specialized areas. - Part-time Marketing Specialist ($39k) — this shared position between recreation and communications replaces the seasonal intern with year-round professional marking support for programs, events and facilities at minimal add cost. The City's holds workers compensation insurance through the League of Minnesota's Insurance Trust. From 2022 to 2024 we saw rates trend upwards significantly, specifically for public safety employees. In the 2025 budget, the city forecasted those increases to continue, however we have saw our rates decline. Based on our last renewal, claims data and recent changes to post -traumatic stress disorder disability law, we have budgeted for a decrease in workers compensation insurance of $295,000. Operational Expenditure Changes Adjustments to operating budgets that are anticipated to continue into future years are shown below. These include contractual and utility increases. Description Chan • e Public Safety — amphitheater contracted costs (offset by revenue) $300,000 Utilities (electric/water/gas) 72,500 County prosecution costs 42,700 Fire — turnout gear/uniforms 34,300 Community center cleaning contract 30,300 Fire — supplies, minor equipment 28,800 Finance Contracts (assessing/audit/actuary) 24,000 Fire — training 18,100 Park restroom cleaning contract 12,000 Software 7,630 Fuel (18,700) Property Insurance (14,800) Budget Placeholder 379,500 Change in operational expenses $916,330 85 During the early stages of the budget process we identify any anticipated significant budget adjustments for 2026, which is typically any line item that would increase by greater than $10,000. For operations we also review software contracts and include a forecast for utilities and fuel from a city-wide perspective to adjust these amounts consistently across the organization. The current preliminary budget includes a $379,500 budget placeholder as we continue to work through moving pieces. Departments are currently working to complete their line item budgets, following the completion of budget entry the table above will be updated with those changes. Operational adjustments include inflationary costs for utilities (electric, gas, water, etc.), which were based on actual costs over the last two-year period. Software costs have also been adjusted to reflect increases in software costs and any new/removed software in 2025/2026. The Fire Department has provided an initial request for additional funding to provide for turnout gear, additional medical equipment, uniforms, and additional training. The city contracts with Scott County to provide prosecution services, the cost for 2026 will increase by $42,700. The Community Center is proposing an increase of $30,300 to allow them to increase their cleaning contract from 2 days per week to 7 days per week, which would allow maintenance staff to focus more on deep cleaning and preventative maintenance. Rent Changes The city utilizes internal services funds to accumulate funds for the purchase or replacement of city equipment and facilities. The funding sources are annual rents (internal charges) to the appropriate departments. Description Change Equipment Rent $175,700 Building Rent 124,800 Park Facilities Rent 40,000 Information Technology Rent 18,700 Change in internal rent charges $359,200 The equipment rent increase is both a result of new equipment being added to the schedule as well as increases in year over year costs of vehicles and equipment. A 20 -year equipment replacement schedule is included in the 5 -year Capital Improvement Plan that identifies all equipment, useful lives, replacement years and costs. Building rents are set with the intention that they would provide the funding for major maintenance projects (roofs, boilers, hvac, etc.), but not fully fund building replacement or new construction. The rent increase is both the result of projects related to the aging of city buildings and inflationary costs of those projects. The annual cost for the various internal service funds are calculated based on estimated useful life or scheduled replacement dates. The amounts for 2026 have been further adjusted (decreased) based on current balances. As an example, in 2024 fire vehicles were sold and 86 proceeds of the sale were deposited in the equipment fund, which was taken into account with the budget request for 2025. One-time Adjustments The General Fund up and down swings are typically moderated through the use of internal rent charges. However, a few one-time adjustments have been included in this budget. These costs will not be recurring in future budgets, with the exception of the comprehensive plan updates that will span 2026 and 2027. Description Change Comprehensive Plan $100,000 Building Inspector Ford Lightning 51,500 Security cameras — 500 Gorman building 26,000 Irrigation controller upgrades 15,000 Road Materials/Salt (one-time inventory reduction for 2026) (50,000) Fire Admin. vehicle (75,000) Building Inspector Ford Lightning (68,000) Damaged street pole replacement (36,000) 17th Ave sports complex bathroom fixtures (14,000) Change in one-time costs ($50,500) A new building inspector vehicle is proposed for 2026, this would be an electric Ford Lightning, which would replace the need of a previous hold -over vehicle being used as a building inspector vehicle. Additional security cameras have been included for additional coverage at the 500 Gorman public works building and irrigation controller upgrades for the parks. These costs will be offset by a one-time reduction of salt inventory, built up from the recent mild winters and removal of previous one-time items from the 2025 budget. Staff is considering the option of bringing these to council in 2025 for a budget amendment. If so, this would further reduce the budget request by $92,500. Debt Service The city council approved a transfer of $346,000 of year-end fund balance to pay the 2026 payment on the 2022A Improvement Bonds. The council approved a similar transfer the previous year which effectively eliminated the need for the debt service levy for these bonds. City Council will be asked to approve a debt service levy reduction to use the available fund balance in both the existing 2016A debt service fund and the 2022A debt service. If approved, this will result in no change to the debt service levy. 87 Capital Project Funds/Capital Improvements Levy Staff and city council have reviewed the 2026-2030 CIP and projects programmed for 2026. The CIP identifies $54.0 million in projects for 2026. The creation and update of a multi -year capital plan allows the city to plan for its current and long-term needs. Project areas within the CIP include buildings, equipment replacement, information technology, parks, street, sanitary sewer and storm drainage. The CIP is a published as a separate document and include appendixes for a 15 -year CIP, 20 -year equipment replacement schedule and a long-term financial plan. Over the five-year plan annual overlay, rehab and reconstruction projects total $38.7 million, which is an average annual cost of $7.7 million needed to maintain current city roadways. This is a significant increase over the previous five years, looking back at the 2021-2025 CIP, those same annual projects total $20.9 million, which was an average of $4.2 million. Recurring funding sources include tax levy, franchise fees, municipal state aid and special assessments. Recurring funding has not kept pace with increasing street improvement costs. That funding gap has been plugged in recent years through one-time funding sources, including a bond issue in 2022 and year-end General Fund transfers. For 2026, staff is preliminarily recommending an increase the CIP levy from $1.2 million to $1.5 million to prevent that annual funding gap from further widening. The city currently does not have a bond sale anticipated in the budget or CI P for 2026, however a bond issue in 2026 or 2027 could be considered to bridge the funding gap. Economic Development Authority The Shakopee EDA has the statutory authority to levy a small percentage (up to 0.0185%) of the city's taxable market value, which for 2026 would be a maximum of $1,532,766. The EDA and City Council can set the levy at any amount up to this cap. The EDA levy is identified on property tax statements as a separate local tax outside of the city's general property tax. For 2026, the preliminary request is for an EDA levy of $550,000 ($50,000 increase). Additional funding is provided through a contribution of %2 percent of revenues from the Shakopee Public Utilities Commission. Staff is proposing a new ongoing transfer beginning in 2026 from the EDA in the amount of $50,000. Similar to the city utility funds (sewer and storm water), the EDA receives administration support from general fund operations including the city council, finance, information technology, communications and human resources. From a financial standpoint, the administration allocation would better reflect the full cost of the EDA. A corresponding $50,000 increase in the EDA levy is being proposed to allow for no net impact on the EDA. The EDA serves as the landlord for the main level business tenants at River City Centre. The EDA currently owns the land and the CDA owns the building. The activity (lease revenue and expenditures) is accounted for in a separate fund of the EDA. 88 Taxable Market Value The city's taxable market value is at $8.70 billion, which is an increase of $412 million (5.0%) from last year. Residential, apartment, commercial all saw growth in market value. New construction accounted for 57.8% of the increase in taxable market value. Class Payable 2025 Payable 2026 Change (%) Agricultural $41,712,610 $53,862,863 29.1% Apartment 775,299,400 849,623,207 9.6% Commercial 745,589,700 771,505,500 3.5% Industrial 1,765,009,000 1,821,276,800 3.2% Public Utility/Railroad 36,422,700 36,480,300 0.2% Residential 4,917,336,577 5,160,489,043 4.9% Other 3,849,500 3,849,600 0.0% Totals $8,285,219,487 $8,697,087,313 5.0% For the city of Shakopee, the total residential taxable market value increased 4.9 percent (includes new construction), the majority of homes (93%) are seeing very little change in their values (increase/decrease by less than the 5.0 percent). A breakdown of the value changes is provided below. Residential Impacts - Shakopee Estimated Market Value Value Range Number of Residential Properties Percentage of Increase/Decrease Total +15.01+% 187 1% +10.01-15.00% 70 1% +5.01-10.00% 693 5% 59% +0.01-5.00% 7,773 No Change 503 4% -0.01-5.00% 3,900 30% -5.01 - 10.00% 12 0% -10.00 - 15.00% 3 0% -15.01% + 2 0% 13,143 100% 89 Net Tax Capacity Class Payable 2025 Payable 2026 Change (%) Agricultural $372,853 $476,572 27.8% Apartment 8,736,702 9,668,496 10.7% Commercial 14,678,599 15,196,748 3.5% Industrial 35,164,710 36,290,770 3.2% Public Utility/Railroad 721,249 722,401 0.2% Residential 50,000,427 52,533,250 5.1% Other 39,220 39,221 0.0% Adj. to match county report - - Gross Tax Capacity $109,713,760 $114,927,458 4.8% Adjustments: Tax Increment ($3,842,380) ($4,444,243) 15.7% Fiscal Disparity Contribution (17,905,859) (19,676,299) 9.9% Net Tax Capacity $87,965,521 $90,806,916 3.2% Fiscal Disparity Distribution ($8,458,436) ($8,458,436)* - *Fiscal Disparity Distribution amounts have not been determined (as of 8/6/2025). The city typically receives the final amounts at the end of August. The total net tax capacity of the city is estimated at $90,806,916 compared to $87,965,521 in 2025, which is an increase of $2,841,395 (3.2%). The gross tax capacity is adjusted for the increase in tax capacity of properties within tax increment financing districts. The tax increment adjustment of $4.4 million represents 3.9 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: CONTRIBUTION TO SHARED POOL Equals 40% of growth in commercial, industrial, and public utility property tax bse since 1971 SHARED POOL OF TAX RASE FOR METRO AREA DISTRIBUTION FROM SHARED POOL Based on population and market value of all property per person compared to average market value per person for metro area The city's estimated contribution to the program is $19.7 million in tax capacity. The estimated distribution amount has not yet been determined for 2026. The 2025 net contributed amount was $9.5 million. The city of Shakopee continues to be one of the top ten net contributors to the program in 2025 at $9.5 million (8.6%) of tax capacity. 90 City Tax Rates The tax levy and market value estimates are expected to have a minimal impact on the city's tax rate, slightly increasing from 27.768 percent to an estimated 28.732 percent. This calculation will change, as the city received updates valuation numbers and the fiscal disparities distribution amount. 41% 39% 37% 35% 33% 31% 29% 27%. Historical City Tax Rates 38.52% 37.21% 34.94% 33.98% 32.10% 32.11% 28.59% 28.73% 27.40% 27.77% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 est. *2026 estimate will be adjusted as market values and budget information is updated Median Value Home The value of the median value home has increased from $350,700 to $361,300 over the past year. This is an increase of $10,600 (3.0%). The following chart provides information on the median value home and city property taxes paid since 2021. The orange bar and amounts on the left axis represent the median value home. $400,000 $350,000 5300,000 $250,000 5200,00 $150,000 $100,000 550,000 $1,200 $1,000 $&oo - S400 $200 5 2021 2022 2023 2024 2025 2026 est. • Annual City Taxes $814 $877 $973 $909 $932 $998 • Estimated Market Value $266,800 $284,700 $346,500 5338,400 5350,700 $361,300 91 As the budget stands currently, for the median value home this equates to an increase of $66 or (7.0 percent) annually in property taxes. Absent any change in value, homeowners can expect a tax increase of $32 or about 3.5 percent (taking into consideration the proposed tax rate). We do anticipate this to decrease upon further revisions as we work through the full budget process. Enterprise Funds The city operates two public utility funds Sewer and Surface Water. These funds operate on their own ability to generate revenues and receive no property tax support. The Sewer fund provides for the collection and conveyance of wastewater through a system of mains and lift stations. Sewage is treated by the Metropolitan Council Environmental Services, whose contracted services account for approximately 80 percent of the fund's operating expenditures. The disposal charge for 2026 will increase to $3,226,182 (1.8%), following a significant 20.6% increase that occurred in 2025. The Surface Water fund maintains the surface water system for the city, which includes 140 miles of storm sewer and 224 ponds. The City's sewer billings include a city usage rate, a city fixed rate, and Metropolitan Council disposal rate. The surface water charge is based on acreage with residential paying a monthly charge equivalent to 1/3 of an acre. Staff will be proposing rate increases, in the range of one to three percent) for each fund to keep pace with operational costs and maintain the current balances of those funds. For a typical residential user, this would amount to approximately $11 annually for sewer charges and $1 annually in surface water charges. Shakopee is below comparable and surrounding cities when it comes to a cost comparison of city property taxes, sanitary sewer and storm water charges. The following chart provides the 2025 annual cost of services for a $300,000 value home (slightly below the median value home in Shakopee) and 5,000 gallons of water usage a month. A $300,000 home in Shakopee saw a decrease from the previous year as a result of the expanded market value exclusion and minimal tax rate, sewer and storm fee adjustments. S2,000 2025 Annual Cost of Services for Comparable & Surrounding Cities ($300,000 home - 5,000 gallons/month) $1,756 51,578 51,60? 51 516 51,509 $1,566 61,362 61,543 $1,250 51,096 51,694 $1,660 $750 S500 S256 51,829 51,912 52.007 52,083 �5 •k Svsryo� c�t�,�w �' ` 8��4� 4C° o4c4sO a4N¢ o o � ds4„< ¢ G Qr 4, is ♦p dk, i� hod Property Taxes Sewer Stoma o` 92 Schedule for budget and property tax levy development Date Who What May 6, 2025 Council/Staff Review Long-term Financial Plan June 17, 2025 Staff/Public Public Input Meeting August 5, 2025 Council/Staff Review Preliminary Capital Improvement Plan (CIP) August 19, 2025 Council/Staff 2026 Budget Overview September 2, 2025 Council/Staff Review proposed levy, initiatives, and requests September 16, 2025 Council Adopt proposed maximum tax levy for City and Final EDA tax levy. September 30, 2025 Staff Certify maximum tax levy to the County which will be used for proposed property tax notices October 21, 2025 Council Adopt final 2026-2030 CIP Mid -November County Proposed tax notices sent to owners December 2, 2025 Council Hold public meeting to discuss levy and budget. December 16, 2025 Council Adopt final tax levy and budget December 31, 2025 Staff Certify final tax levy and budget to County and State 93 2026 Budget Overview City Council Work Session August 19, 2025 City of Shakopee 2025 Budget and Levy DEPARTMENT Z 2 LL THE CFTY OF SHAKOPE PREPARED B m � 68 E g + 8 N'4 H E=1 2 E E nV /, W U . > a) O . U (13 c.c) c N O N =o a � O6 �= 3 41 q a g 2m1 o o m E1 E W E E E • sg-E • -E E 8 in E. - O U a .02 E � q � .p E 0 Ct Ct a) ct .— • 3 • • Increase tax capacity cct 0 ESTIMATED COMMON MONTHLY HOUSEHOLD COSTS N 475 • Administration 1 0 2 U • Ur:10 r:10 ., c N Ct N o U 43 t a) 9 4 o a Mob �w rd Of 6 M LLFA I s �ry F. A t 11 0 0 N I- W 0 x 8 a a O a' d, U . W U C x� ~ CC 00 o H � 0-0 w u a M a) E a) 0 U 0 a) 0 U 0 c a) a) 0 0 c O cA kin O •`n O g 1-1 Ot oN 1-1 69 O O O O O ^1 O O O I O 01 O O 01 01 N O 00 00 71: N N ,-� 69 OO O � O O O O O O I O O O 01 N ,-i N � N M — N Cl 69 rovement Levy Debt Service 2016 Abatement Total Debt Service ON 0 O O O tn o tn O O O 4.O4. 4 r bl4 69 bl4 O O O 1--I O 1--I O0 O O0 N N kin O kin O O O 7r O 7r N N N N N Total City Levy Shakopee EDA Special Levy Total City and EDA Levies LI O al J V) C co C c CO 359,200 ci Q co C w C1 Revenues (increase) Transfers from other funds (increase) Expenditures: 40 LP cu I Operating expenses Internal rent changes One-time adjustments Capital Improvement Levy O CI Change in property tax levy N O N • Revenue forecasts (net increase of $1,957,750, excluding property taxes) Change l#5c)h-O L t c+ e+5 I � v N. QCICI OQOM M e+' (NI O4� J ,I LL1O r Ri 49 Description Contracted public safety services (offset with expenses) [Building permit revenues Community Center revenues Restaurant licenses and inspections (offset with inspector wages and benefits) Police state aid Municipal State Aid (MMSA) maintenance funds Interest income (General fund) SPIT pilot fee 7 tI 2 a r revenues C O 8 IL Ice Arena revenues rIV1S4 administration fee Other (net adjustments) State building official grant Change in Revenues • Transfers from other city funds (covers General Fund operating costs) CU O 2026 DDDD 4 N CD CD CDHCD pi , n CD s 0-, CD CD Description Public safety fund (patrol officer reimbursement) nt) Self-insurance fund Sewer/storm water (allocation of admin overhead) EDA (allocation of admin overhead) Change in transfers nV Cl) W 0) c U c Z:3 a) o_ W c 0 N O N Description Change Cost of living adjustment — 3% (3.5% PW Union) $720,000 Pay step changes 388,000 CD Health Insurance — 15% estimate 248;000 Public safety OT (offset by contracted revenue) 14100 DC)c)OOC) Fire Inspector added July 2025 (half year impact) I 49,000 PT Marketing Specialist (split HR and Rec,) 39,000 Other (net adjustments) 39,800 Workers compensation — reduced rates i (295,000) Change in wages & benefits $2,120,800 CNI 01C)4's�uaL' cli 4— O C a 0 a 0 Health inspector (New) Elections judges MN Paid Leave (employer contribution) Recreation part-time Clerk Administrative Assistant (part-time to full-time) Fire part-time E o E mi ro c ul cp a E 0 Compensation Study N N A' - ct ti) ° N U c.) !, (1.)N Oc9 U ,� +, '� c.1__� ct • ,-- CD .o a) E 77i '� ▪ ,-E,N C c ° • N.A) E N NO 4) c+-� ,+ U 'Ci = N to C� to ct a) cC cc c� c� bA 0 ct o •o �o • ci.) ci) "ci '▪ Al2 "A -q 1-)' 4 f,„„ ct ;I to ct v1 O O v▪ 1 ct .� . '.... O U ra., O oraN O 4 ra.,(D.E- a: • • Compensation Study - Shakopee (non-union emp[oyees) -63 C, C, C, C, C, C3 co co N CLJ E9 6Y] M •t — Lei CN CN 4'] N CN N CN SV C, O N 67 Lei t4 C7 CP Cr) CN N Lei N Description Change 69 72.500 N- 34,300 CD CD CD CDco T- 0 C' .--. OD `X) Ng CO 69 Public Safety — amphitheater contracted costs (offset by revenue) Utilities (electric/water/gas) County prosecution costs Fire — turnout gearlunifurms Community center cleaning contract Fire — supplies, minor equipment Finance Contracts (assessinglauditlactuary) CO C C U - Park restroom cleaning contract Fuel Property Insurance Budget Placeholder Change in operational expenses • Rent Charges ($359,200) ct ct I) E I) CIJ vi O ct ct . CIJ ct I) ct I) U . 0 F 3 C.) $175. 700 CD Q c) - n c CI i n Q h-.] CO —07 0 CO 04 di. to Description Equipment Rent [-Building Rent Park Fadcities Rent Information Technology Rent Change in internal rent charges Change C3 O C 'norm C C O 0 C, Q 0Q C3 0 o O 00 0 Q C C4 0 Description Comprehensive Flan Building Inspector Ford Lightning Security cameras — 500 Gorman building _Irrigation controller upgrades Road Materials/Salt (one-time inventory reduction for 2026) Fire Admin. vehicle 1 -Building Inspector Ford Lightning Damaged street pole replacement 17tAve spurts complex bathroom fixtures Change in one-time casts mprovement Levy (Proposed • Proposing a $300,000 increase (from $1.2 million to $1.5 million) CIJ • CIJ ct .O O U N � � O E N O U , , ct ct cu ct cu • • sources: • $8.5 million in • $4.2 million bond issue in 2022. r4 a CAD tNJ c O r4 op Cal 0 o N Q r4 0 Lin N cp E ct N 77i ct • ap E ct E E EQ N O �N O A N E cu cit ct A—' 77i wCD CD E N 7i E c. I.) ct I.) cit g Ct A—) V1 A—, E A--) N by 4U .- cq) • O Ct U ) O C •� (1..) v1 `o 00 ¢ A--) O bA O E ct CD ct ct O g = ct 00 cu O I.) — A--' • '� -, Ncu , o 2O 'u O N00 a . . o 4 ct ct LE • A--) O c) 7ci U7 +� c ct • C• U O bA • U _ • U N ,O c/C ct a) +, ct O .v � O at U JN L� O A--) O O LE O O c ct ct • • Proposed 2026 Class Payable 2025 Payable 2026 Change (%) A r-icultural $41312,610 $53,862,863 29.1% Apartment 775,299 400 849,623,207 9.6 Commercial 745,589300 771,505,500 3.5% Industrial 1765,009,000 1.821.276_800 3.2°` Public Utility/Railroad 36,422,700 36.4g0_300 0.20,. Residential 4,917,336,577 5,160,489.043 Other 3,849,500 3,849,600 0.0% Totals $8,2.5,219,487 $8,697,087,313 5.0% New construction accounts for $269 million or 57.8% of the increase a> a> O C) E a a> .7) Percentage of (D O O O LC) 59% I O 30% I O O O O O O O O •,— Number of Residential Properties 187 70 693 ELL `L 503 o CY) co N 13,143 Estimated Market Value Value Range Increase/Decrease 0 o + 0 0 O © + 0 o I O LC)• + 0 r © • O No Change -0.01-5.00% 0 0 o I , O I -10.00 - 15.00% + o 6 Historical City Tax Rates Lri m g g g g g g g a r� c5 N Ln m r-i c+ N 'd m m m m m N N N 0 ri 0 0 r -I 0 N 0 N 0 c5 0 ri CO 0 0 N *2026 estimated tax rate will change with assessed value adjustments and budget changes z x • zz z� H -Am Woo C;�s EZH y w w ?C;) O O 0 O 0 0 0 Q O G 0 0 0 0 0 O 0 0 0 0 0 0 V a 6 e 6 6 6 6 v mm m N N N OI-4 ih AA. vw VI w). +n, va ■ Annual Oty Taxes ■ Estimated Market Value M Property Taxes in MSP Metro Area for a $300,000 Fsome • • • • • I • • • • • • • • • • 4 • • • •• • 0 0 0 0 0 0 saxes ADD 0 CO O ct a) 0 O 4) E O = O 0 O- N t/) '73 0- 4) a) 0 O 0 O (a c rl R im.misrp I o Q rl ti Con i1 Di - lit, IMMIIIMItv- IY 2 hp Miami N •l I NIP UM 8 - t — V3 a U 4$4 'N,.. D a ct E4.`e,.9 Z E. d r:71 r.. z zt a °� H ov o $p ws C7�3 scr F3 a tb .-g-8 o0 z dP Budget Calendar Budget Listening Session Public/Staff July 17, 2025 6 U_ C CO 0 U) E > O L Q E To Q CO 0 C U) E N > 0- O > en U) > U) Et m U) U) U) O- U) L C c3 U) U) > t E N U) U) O Q O Q U) U) Et Council/Staff O c O 0 U) O 1E U) = U O O c O X a3 O -t U) (1) Q O X Q E ) U)a E O co Q EL 0 > U) = 0 c6 U5 O c O 0 August 6, 2025 September 16, 2025 September 30, 2025 October 21 2025 Proposed tax notices sent to owners 4 O 0 Mid -November U) E U) > O U) .> U) Et U) O) C CO a)co N U) O N = U L co O O • L t U) = U > O L Q Q Q O- � I co O c O 0 N O) C CO U) CO To c Q O Q O c O 0 December 2, 2025 N O N t0 I- it E 8 a) a U) to U) C CO O 0 O N O) C CO U) CO To c U) 0 co U) • ecember 31 2025 V J E 0 0 0 0 .73(1) U .O 0 U • Input on the 2026 preliminary levy and budget SHAKOPE E Piliall Shakopee City Council 9.b August 19, 2025 Agenda Item: SCALE 2026 Legislative Priorities Prepared by: William Reynolds, City Administrator Reviewed by: Action to be considered: Provide input to submit to SCALE Motion Type: Informational only Background: Each year SCALE submits legislative priorities to our local legislators. In the past this has included both bonding items that the city has requested, as well as some policy items generally agreed upon by council and approved by SCALE for submission. We have two items for bonding requests in 2026: 1) The HUB Innovation Center which has been a request for several years, and 2) funding for a downtown rail road Quiet Zone. The past policy items that could be considered (from 2025) include the continued reform for official public notices, and recently the increase issues surrounding the use of electric bikes. I addition, to address the continued MVTA battles with the Met Council for funding, the following is a draft priority that could be submitted as well: Support Minnesota Valley Transit Authority and Suburban Transit Providers in receiving a dedicated portion of new Sales and Use Tax transit funding that ensures they are able to meet the transit needs of the communities they serve. The 2025 SCALE Legislative Priorities are attached for reference. Also included is the latest HUB flyer explaining the project. Recommendation: Provide input to submit to SCALE for 2026 Legislative Priorities Budget Impact: n/a 117 Attachments: 2025 SCALE Leg Priorities.pdf The Hub Flyer 2025.pdf 118 I .SCALE Scott County Association for Leadership & Efficiency 2025 Legislative Priorities Scott County Association for Leadership and Efficiency CORE VALUES • Relationships • Innovation • Influence • Partnerships » Education • Leadership » Facilitation GOVERNMENT WITHOUT BORDERS Working. Smarter. Together. The Scott County Association for Leadership and Efficiency (SCALE) was formed in the spring of 2003 to encourage greater efficiencies and leadership in public service through enhanced communication, service collaboration, and resource sharing. • Members include officials from the cities, school districts, and townships within Scott County, the Shakopee Mdewakanton Sioux Community, and Scott County. (See membership list on back page.) • SCALE members meet monthly to discuss ways in which local governments can continue to maximize the value of taxpayers' money through cooperating in mutual service areas, such as public safety, parks and recreation, transportation, community development, and general government. • SCALE recognizes that the 2025 Legislative Session is focused primarily on the State budget, but may include some policy bills and a supplemental bonding bill. • SCALE established these priorities based on this understanding, and appreciate our legislative delegation's consideration in advancing these priorities. 119 TOP PRIORITIES IN POLICY The incremental costs of growth to be paid for by development: Scott County is one of the fastest growing counties in the state of Minnesota. Growth is accompanied by incremental costs to infrastructure (water, sewer, parks, storm water, and roads). To facilitate continued orderly residential growth, it is essential that development fees are collected to ensure infrastructure meets the demand for housing starts without shifting costs to existing residents. » SCALE supports infrastructure accountability: SCALE is seeking legislation to provide cities and townships statutory authority to collect street infrastructure fees to offset the cost for safety and capacity improvements to collector road networks necessitated by new development. Reform Official Public Notices: SCALE supports legislation that would allow greater flexibility in the manner that public notices may be published, including the use of official city websites as an alternative to a locally subscribed newspaper. Additionally, SCALE supports making permanent the current legislative allowance for the publishing of school district public notices. Housing: Housing project in Scott County In conjunction with growth and development, SCALE supports the swift implementation of the 2023 legislative housing investments and a sustained increase to state funding for dwelling options across the housing lifecycle. The prevailing objectives of any housing initiatives should prioritize local control with coordinated efforts to increase production of residential units, the preservation of existing homes, and housing stability programs for individuals and families experiencing the need for transitional and emergency accommodations. » Additionally, SCALE specifically supports Increased flexibility in the utilization of Local Affordable Housing Aid (LAHA) and Statewide Affordable Housing Aid (SAHA) funds. Scott County Soil and Water Conservation District State Aid Funding SCALE opposes the decrease in SWCD State Aid which is being cut by 20% in 2025. This overall decrease of $15M to $12M will result in a decrease in our ability to provide services to Scott County residents. Road bridges: SCALE supports the Minnesota Department of Transportation (MnDOT's) ownership and major maintenance of bridges within its highway right of way. Scott County, townships, and cities are not the appropriate entities to own and maintain those bridges. MnDOT is much better equipped with staff and resources to own and maintain the bridges located within their right of way. Townships and cities do not have the financial resources nor staff to take on ownership and maintenance of these important infrastructure assets. Proper maintenance of bridges is a safety concern and MnDOT is the appropriate entity to own and maintain those bridges. SCALE SUPPORTS THE FOLLOWING POLICY POSITIONS Local School District Control and Funding SCALE supports providing funding to local districts as well as the flexibility to spend those funds to address local needs without statewide mandates. Paid Family Medical and Earned Sick and Safe Time SCALE supports adjusting legislation of employer and employee premium payments and adequate State funding for the MN Paid Leave and the Earned Safe and Sick Time (ESST) mandates for employers with leave programs that exceed the 48/80 hours requirements of ESST. School Teachers' Retirement Account (TRA) Funding SCALE supports legislation allowing school districts the ability to pay both the district portion and the employee portion of School Teachers' Retirement Account (TRA) during a board approved 5 year leave of absence. Truancy and Chronic Absenteeism SCALE supports attendance -review and implementation of the recommendations of the legislative work study group to address chronic absenteeism crisis. Critical Infrastructure SCALE supports funding for aging road and bridge infrastructure and rural business development. Broadband SCALE supports the expansion and Improvement of internet broadband. Franchise Fees SCALE supports legislation to allow Cities to Collect franchise fees on Internet & Data Services. TOP PRIORITIES FOR CAPITAL BONDING REQUESTS SCALE supports the following five projects which are regional projects impacting the southwest metro region. These projects are ready to build and move forward if the state allocates bonds. We ask for bonding funds only when the money is ready to be used. Improvements to Quentin Avenue and bridges in Savage: The state recently awarded the Highway 13 project through Savage and Burnsville a Corridors of Commerce grant, which will help fund some improvements to the Highway 13/Quentin Avenue intersection in Savage. However, current and projected traffic models show that the current design of Quentin Avenue, particularly with its unique bridge issues, will not support the increase in traffic. Quentin Avenue connects Trunk Highway 13 and County Road 16, crossed by a city -owned railroad bridge that restricts Quentin Avenue to a single lane stop sign pass -through with a height clearance of 10 feet. This restrictive bridge height clearance presents a clear public safety hazard as it prohibits fire trucks from using Quentin Avenue. Further complicating the problem is the presence of a second bridge on the same rail line that will require improvements if the bridge over Quentin Avenue is replaced. To facilitate the needed future improvements to Quentin Avenue, the city bought these bridges in 2008; at this point, these future improvements to Highway 13 — replacing the bridges and improving Quentin Avenue from the TH 13 Corridors of Commerce project limits to McColl Avenue to modern roadway standards — have become necessary. As such, the City of Savage is requesting $7.4M for these critically needed improvements. Louisville Segment of the Merriam Junction Trail: Scott County requests $7.3M in state funds to design and construct 4.3 miles of multi -use trail, including elevated boardwalks over wetland and lake areas, to close the existing gap in the regional trail system in northern Scott County. This project will link the Merriam Junction Regional Trail (connecting Scott and Carver Counties) to the Big Woods Regional Trail in Scott County and connect the communities of Shakopee, Prior Lake, the Shakopee Mdewakanton Sioux Community, and Louisville Township. Innovation Center: The Shakopee Innovation Center project creates a post -secondary institution that is next -generation, highly creative, uniquely flexible, and sustainable with a focus on driving education, entrepreneurship, and collaboration across the Twin Cities metro area. Driven by partnership among the City of Shakopee, Scott County, and Minnesota State University -Mankato, the facility is expected to serve a diverse group of local participants with a variety of needs, skills, ideas, and backgrounds. Shakopee is requesting $4M for this project. Scott Dakota Household Hazardous Waste Facility: Scott and Dakota counties have a combined 593,000 residents — more than 10% of the state population — and five active landfills. Requesting $8M in capital funds for a new regional facility located in Lakeville which will increase participation by offering another convenient location to properly manage waste and recyclables. This new facility will also prolong the life of the two existing facilities by slowing the growth at those locations. Interstate 35 and County Road 2 Interchange Development: Quentin Avenue improvements Louisville Segment of the Merriam Junction Trail Louisville Segment Innovation Center Household Hazardous Waste Facility Built in 1963, this is one of the last interstate interchanges in the metro system in need of replacement. Planned commercial and industrial development immediately adjacent to the interchange will accommodate approximately 2.6 million square feet of building space and will provide an estimated 1,723 new jobs. A 2024 detailed study of traffic using the interchange indicates that the interchange serves as access to 135 for an area of over 300 square miles, and the interchange has become an important freight corridor over the past decade - serving a significant amount of freight from the vast Lakeville development. Elko New Market is requesting $4.5 million to be allocated to MnDOT to complete design engineering and environmental documentation for the interchange replacement project, and full funding for the replacement of the interchange within 10 years." Contact Information: SCALE www.scaleinfo.org Tony Albright Poul Haas Government Relations (612) 801-9401 tony.albright@poulhaas.com CITIES Belle Plaine (952) 873-5553 Credit River (952) 440-5515 Elko New Market (952) 461-2777 Jordan (952) 492-2535 New Prague (952) 758-4401 Prior Lake (952) 447-9800 Savage (952) 882-2660 Shakopee (952) 233-9300 SCHOOL DISTRICTS Belle Plaine Public ISD #716 Burnsville -Eagan -Savage ISD #191 Jordan Public School District #717 New Prague Area ISD #721 Prior Lake -Savage ISD #719 Shakopee Public ISD #720 Shakopee Area Catholic Schools Southwest Metro Intermediate District TRIBAL NATION Shakopee Mdewakanton Sioux Tribal Community Perry Mulcrone (952) 457-6692 pmulcrone@co.scott.mn.us TOWNSHIPS Belle Plaine (651) 307-0101 Blakeley (612) 860-0836 Cedar Lake (612) 308-0871 Helena (952) 758-4505 Jackson (952) 445-6495 Louisville (952) 445-8715 New Market (952) 461-1920 St. Lawrence (952) 492-3284 Sand Creek (952) 423-8177 Spring Lake (952) 492-7030 COUNTY ENTITIES Scott County Scott County Community Development Agency Scott County Township Association REGIONAL ENTITIES Metro Cities (AMM) Minnesota Valley Transit Authority (MVTA) Prior Lake - Spring Lake Watershed District Scott Soil and Water Conservation District Three Rivers Park District (952) 873-2400 (952) 707-2000 (952) 492-6200 (952) 758-1700 (952) 226-0000 (952) 496-5000 (952) 445-3387 (952) 567-8100 (952) 496-6109 (952) 496-8100 (952) 402-9022 (612) 490-6363 (651) 215-4000 (952) 882-7500 (952) 440-0067 (952) 492-5425 (763) 559-9000 122 The Hub: Driving Economic Growth Through Innovation and Opportunity SHAKOPEE Owned by the City of Shakopee Economic Development Authority The Shakopee Innovation Hub isn't just a building — it's a bold step toward revitalizing Minnesota's entrepreneurial landscape and securing long-term economic growth. Minnesota currently ranks 48th in the nation for entrepreneurism — a startling statistic that highlights the urgent need for bold, forward -thinking initiatives. The Innovation Hub is answering that call. As the first facility of its kind in Minnesota, The Hub will serve as a centralized resource and innovation center, accelerating small business growth and workforce development across Shakopee, Scott County, and six neighboring counties. This state-of-the-art space brings together higher education, high -bay labs, workforce training, entrepreneurial support, and a makerspace — including a commercial kitchen — all under one roof. The Hub is designed to be a launchpad for innovation for Minnesota, helping residents gain in -demand skills, start new ventures, and access meaningful career opportunities. rew • EMERSON Supported by the Region CAAI AF O11*L1 SHAKOPEE Chanila a of Comtism. (CDA EDEN PRAIRIE A RAHR Si FRANCIS CARVER COUNTY ire2ai Come. Xcel Energy Cheedui �SPU 123 Project Costs Project Funding i* FOUNDER)/ MN Commercial Kitchen Entrepreneurs in Residence Venture Capital Makers Space Coworking Space BETA The Hub SHAKOPEE Angel Investors ICF feld MINNESOTASTATE UNtvEIL5ITy Agribusiness and Food Innovation Program Technology Transfer Degree & Certificate Programs Entrepreneurial Boot Camp Advance Manufacturing Training In partnership with more than 35 entrepreneurs from throughout the state, they have created a new organization called FounderyMN to help guide and accelerate the growth of the region's entrepreneurs and participate in The Hub's design Shakopee is shaping a facility built by and for the business community. Collaborations with Minnesota State University are already underway to offer post -secondary education in a region that currently lacks access to these critical resources — making The Hub an essential tool in closing the education gap and aligning talent development with employer needs. The Hub will also play a key role in attracting foreign direct investment to Minnesota. Companies will be able to establish a presence in the facility to test the U.S. market, explore manufacturing opportunities, and build strategic partnerships. This strengthens The Hub's position as a gateway for global business attraction and development. Engineering and Design Construction $ 1 million $11million Federal Funding State of Minnesota Local support $ 2.5 million $ 4 million $ 5.5 million 124 SHAKOPE E Piliall Shakopee City Council 10.a August 19, 2025 Agenda Item: City Bill List Prepared by: Becky Smith, Accounting Specialist Reviewed by: Action to be considered: Review of City Bill List Motion Type: Informational only Background: The City Bill has been provided to the City Council. Recommendation: Review of City Bill List Budget Impact: N/A Attachments: 125 Piliall SHAKOPE E Agenda Item: Prepared by: Reviewed by: Shakopee City Council 1O.b August 19, 2025 News and Announcements Rick Parsons Action to be considered: No action, item is informational only. Motion Type: Informational only Background: Announcements and Upcoming Events: - Tap 2025 • Tap 2025 is taking place on September 13, 2025 from 1:00 - 5:00 pm in Downtown Shakopee. This event is a craft beer tasting and showcase with more than 40 Minnesota breweries participating. It is hosted by the Shakopee Economic Development Authority. Visit www.tapshakopee.com to learn more and purchase tickets. - SandVenture's Last Day of the Season is August 22, 2025 • SandVenture's season is coming to a close on August 22, 2025. The park is currently operating with modified hours of 11:00 am - 5:00 pm. We can't wait to see you next summer! - Community Center Maintenance Week • The Shakopee Community Center will be closed August 30th - September 7th for maintenance week. During this time the Community Center will be installing new cardio equipment, refinishing the wood floors, deep cleaning, and servicing the facility and equipment. - Marystown Road Reconstruction Project • Construction will begin in the coming weeks on the Marystown Road Reconstruction Project. Starting August 25th, the contractor will begin constructing the temporary roadway connecting the Tahpah Park parking lots. On Tuesday September 2nd, the SB US169 on/off ramp will be closed to all traffic for construction of the first phase of the project. This intersection is anticipated to be re -opened to traffic by 126 November 1st. Visit www.MarystownRoad.com to sign up for project updates! - Downtown Lighting Improvements • Work began last week on the 2025 Downtown Lighting Improvements. The project is located along Holmes Street between 1st and 3rd Avenue. The improvements include replacing the existing street lighting system, brick pavers and pedestrian curb ramps and will continue to October. Recommendation: Please review the information on upcoming news and announcements. Budget Impact: N/A. Attachments: 127