Shakopee City Council Regular Meeting - September 16, 2025

The Shakopee City Council held its regular meeting on September 16, 2025, at 7:00 PM at City Hall. The meeting covered routine approvals, a public hearing on conduit bond refinancing, adoption of the 2026 preliminary property tax levy, a new policy for non-city modifications to city property, and discussions on dog daycare and short-term rental ordinances. The council also heard public comments from the Scott County Attorney and received liaison reports.

Consent Calendar

• The council approved the consent agenda, including 18 items: amendments to financial policies, wetland replacement plan for Elliana Estates, monthly financial report for August 2025, certifications of delinquent accounts, parking restrictions, transit provider resolution, surplus equipment and vehicle declarations, grant awards, budget amendments, and change orders. All items were approved unanimously.

Public Comments & Testimony

• Scott County Attorney Ron Hossevar introduced himself to the council, noting his office's role in prosecuting crimes including homicides (5 currently), DUIs, domestics, and drug offenses (fentanyl, meth, cocaine). He highlighted the efficiency of the Scott Joint Prosecution Association. Council members asked about crime trends and drug use statistics; Mr. Hossevar stated that per capita crime is relatively static across the county, but DUIs and domestics remain constant. (Note: This public comment occurred during the public comment period for items not on the agenda, as per the agenda structure.)

Public Hearings

• Refunding Bonds for Benedictine Living Community of Shakopee LLC (Conduit Debt): The council opened a public hearing to consider issuing refunding revenue bonds in a principal amount up to $65 million to refinance existing debt from 2018. The bonds are conduit debt, meaning no financial liability to the city. The city's bond attorney, Julie Eddington, explained that the city would receive a $50,000 fee for the refunding. Councilmembers asked about the difference between original and new interest rates and the status of the original debt. The public hearing was closed, and the council unanimously adopted Resolution R2025-____ authorizing the refunding.

Discussion Items

• 2026 Proposed Property Tax Levies and Debt Levy Cancellations: Finance Director Reinhardt presented the 2026 preliminary levy of $28,214,480, a 5.5% increase ($1.47 million) over 2025, including a $300,000 increase for the capital improvement levy. The tax rate is estimated at 28.57, and the median home value is $361,300. The council discussed fiscal disparities, noting that Shakopee is a net contributor to the metro program. Councilmember Whiting expressed concern about the rising contribution. The council adopted three resolutions: R2025-100 cancelling debt service levies, R2025-101 setting the maximum preliminary levy, and R2025-102 approving the preliminary EDA levy of $550,000. Councilmembers noted that the EDA levy could be reduced before final adoption in December, and a workshop was scheduled to discuss outstanding questions.
• Policy on Modification and Enhancement of City Property by Non-City Organizations and Groups: City Administrator Reynolds presented the policy, which outlines requirements for donations and modifications to city property, including planning, budgeting, maintenance plans, and public comment. A key discussion point was the prohibition on outdoor advertising on city property, which has been in place for decades. Councilmembers debated whether to allow temporary signage for service organization events. The policy was amended by adding the word "permanent" to the advertising restriction to clarify that temporary event signage is not prohibited. The policy was approved unanimously with that amendment.
• Discussion of Dog Daycare and Boarding Proposed Ordinance in Residentially Zoned Areas: The council reviewed a draft ordinance regulating dog daycare and boarding as home occupations. Councilmember Contreras raised questions about including grooming, unattended outdoor time (30 minutes), and record-keeping requirements. City Attorney Kersky explained that grooming can be removed from the special conditions, and the draft will be refined for planning commission review. Councilmember Whiting noted that the ordinance is intended to allow owner-occupied homes to offer these services with limitations, such as a maximum number of dogs and one non-resident employee.
• Proposed Changes to Rental Ordinance adding Short Term Rentals: The council discussed adding short-term rentals (e.g., Airbnb) to the rental ordinance, requiring inspections and limiting rentals to 60 days per year with owner-occupancy. Councilmember Whiting expressed concern about out-of-town investors buying homes solely for short-term rentals. The consensus was to move forward with the draft, which will be refined and brought back for a public hearing.

Key Outcomes

• Approved consent agenda (18 items) unanimously.
• Conducted public hearing and adopted resolution authorizing conduit bond refunding for Benedictine Living Community (unanimous).
• Adopted Resolution R2025-100 cancelling debt service levies (unanimous).
• Adopted Resolution R2025-101 setting the maximum 2026 preliminary property tax levy (unanimous).
• Adopted Resolution R2025-102 approving the preliminary EDA levy (unanimous), with a plan to revisit before final adoption.
• Approved the Policy on Modification and Enhancement of City Property by Non-City Organizations and Groups, as amended (unanimous).
• Continued discussion on dog daycare and short-term rental ordinances; will proceed to planning commission for public hearings.
• Adjourned to October 1, 2025, at 6:00 PM at the Scott County Government Center.