Shakopee City Council Regular Meeting - May 6, 2025

The Shakopee City Council met on Tuesday, May 6, 2025, at 7:00 PM at City Hall. The meeting covered a consent agenda, a public comment, discussion of a hotel licensing ordinance, a brief Economic Development Authority meeting, the monthly financial report, the police annual report, workshops on Westminster baseball field improvements and a long-term financial plan, liaison reports, and other business.

Consent Calendar

• Approved as modified: 5N (fence ordinance) was removed to the June 3 meeting; 5M (hotel licensing) was pulled for separate discussion.
• Items approved included contracts for Phase 2 of the Downtown ADA, Lighting and Tree Rehab Improvement Project; the Stagecoach Road Improvement Project; grants, licenses, donations, ordinances (grease traps, plumbing code, hotel licensing, fence, wine licenses, fee schedule), change orders, bidding approvals, lease renewals, liquor license renewals, and surplus declarations.

Public Comments & Testimony

• Victoria Ranua (5284 Eagle Creek Boulevard, rural residential zone) respectfully requested the Council reconsider the removal of agricultural as an allowed land use. She stated she had been a beekeeper and orchard grower, and the 2020 zoning change prevented her from resuming her operation. She suggested a conditional use permit as an alternative. Staff noted that the removal may have been a scrivener's error, as a roadside stand is permitted but growing crops is not, and they will research the matter.

Business Removed from Consent Agenda

• Ordinance O2025-013 – Hotel Licensing Program (Item 5M): Councilor Delaney requested clarification on language prohibiting interested persons, employees, managers, or contractors from residing in a hotel guest room. After discussion, Council and staff agreed the intent was to prevent permanent residency, not overnight stays. A text amendment changed “reside” to “permanently reside” for consistency. The ordinance was adopted as modified.

Recess for Economic Development Authority Meeting

• The Council recessed for a brief EDA meeting. The EDA agenda was approved, no items were pulled, and the meeting adjourned to the next regular meeting (tentatively June 3, 2025).

General Business

a) Monthly Financial Report – March 2025

• Finance Director presented the report. Highlights: The 2024 audit field work is complete, with a clean audit opinion and no findings; presentation to Council on June 3. General fund revenues and expenditures are within expectations: 25% through the year, building permits ahead of budget, property taxes/assessments zero until June. Investment earnings for Q1 2025 were approximately $700,000, comparable to Q1 2024. The city’s investment portfolio has an average maturity of 2.5 years; unrealized gains of $670,000 as of March 31. Interest rate declines would not immediately impact earnings.

b) Police Annual Report Presentation

• Police Chief presented the 2024 annual report. Overall crime rate hit a record low (8.1% decrease from 2023). Calls for service totaled 22,661. Arrests: 1,400+ total; DUI arrests: 251 (average BAC twice the legal limit); 40 drug impairment arrests. Case clearance rate rose to 55%, well above the metro average (approx. 43%). Response to resistance reports: 104 (0.004% of calls), of which 30% involved mental health crises; use of force (excluding restraint) occurred only 30 times; taser deployed once. Staffing: Fully staffed; positive internal culture noted in 360-degree feedback. Future needs: disaster relief reimbursement (~$20,000 from 2024 flood), new dispatch system concerns, vehicle acquisition challenges, potential training reimbursement cuts, animal control challenges (currently spending $34,000/year), and a building needs study (police station at capacity). The amphitheater will require contractual overtime coordination. Chief emphasized community members locking vehicles to reduce theft.

Workshop

a) Westminster Baseball Field Improvements

• Parks and Rec staff and the Shakopee Youth Baseball Association (SYBA) president presented proposed improvements to the two Westminster baseball fields (currently softball fields). Proposals include: moving fences from 240 ft to 200 ft and lowering height from 6 ft to 4 ft; grassing the infields with irrigation; installing field armor in batter's boxes; adding concrete in dugouts and storage. SYBA will self-fund the project (approx. $35,000 per field for infield, $6,000 per field for fencing; raised ~$35,000 so far). Goal: host 9U-11U tournaments and increase youth participation. Concerns raised about parking constraints and neighborhood impact. Council directed staff to hold a neighborhood meeting and explore parking options before further concept planning.

b) Long-Term Financial Plan

• Finance Director presented the fifth annual long-term financial plan. Summary: Over the past decade, tax capacity more than doubled (from $40.7M to $88M); population increased 18.5% (7,300 new residents). The city's tax rate dropped from 37.9% (2015) to 27.8% (2025). Shakopee is the 9th largest fiscal disparities net contributor in the state. TIF districts generated $4.2M in additional tax capacity. Projections assume 4% annual levy increase to maintain fund balance; if tax capacity grows at 4%, the tax rate impact would be minimal. The city remains one of the lowest tax communities in the metro area (4th lowest among 32 comparable cities). Comparison: A $300,000 home pays $1,094 in city property tax, sewer, and stormwater fees—a $2 decrease from 2024.

Key Outcomes

• Consent agenda: Approved as modified (items removed: 5M and 5N).
• Hotel Licensing Ordinance: Adopted with a text amendment changing “reside” to “permanently reside.”
• Public comment on agricultural land use: Referred to staff for research; Council will receive email findings.
• Westminster baseball fields: Council supported proceeding with neighborhood meeting and parking study before detailed planning.
• Long-term financial plan: Accepted as presented; noting a 4% levy increase as a starting point for future budgets.
• Police station building study: Staff directed to hire a consultant to assess long-term needs (no immediate budget impact).
• Police annual report: Received and noted.
• Cleanup day: 320 vehicles participated; event deemed successful.
• Council chamber PA system: Staff to evaluate for a future budget item.
• County Road 17 project: Council expressed frustration but will await county’s next steps after the open house.
• Adjournment: Meeting adjourned to May 20, 2025, at 7:00 PM.