Shakopee City Council Meeting – December 2, 2025

The city council met on December 2, 2025, at 1:00 PM. The meeting covered a consent agenda, a public hearing on the 2026 budget and property tax levy, a recess to the Economic Development Authority (EDA) meeting, and liaison reports. The council approved the consent agenda as modified, adopted a temporary advertising and sponsorship signage policy, and closed the public hearing with no public comment. The EDA approved a development agreement transfer. The council also received liaison reports on utility updates, the Chief Tate award, and retirement plans.

Consent Calendar

• Approved as modified (item 5C was pulled by Councilor Lara for separate discussion). The consent agenda included: purchases of four skid steer loaders and a fire department pickup truck; concessions operation policy; Sand Venture Large Yellow Slide refinishing; Community Center sauna remodel; Copman playground equipment purchase; easement acquisition for Boiling Springs drainage improvements; approval of November 18, 2025 minutes; event sponsorships by Lawfler Construction, Krause Anderson, and Lion Site; tobacco, pawnbroker, and taxicab business license renewals for 2026; and purchase of land in the West End for open space/bluff protection.

Public Comments & Testimony

• Jeff Bolt (1401 Herein Court) addressed the council regarding a proposed road connection between Marsha Lane and Wood Timber Trails/Wood Acres. He stated the Scott County engineer had told him the item would be on the agenda, but it was not listed. The council noted the county engineer does not control the agenda and advised Mr. Bolt to contact the engineer directly. No other public comments were made.

Discussion Items

• Item 5C – Temporary Advertising and Sponsorship Signage Policy: Councilor Lara pulled this item from the consent agenda. He reported that all council questions had been satisfactorily answered by staff, and the policy would not hinder organizations the city works with. Administrator Reynolds noted he sent an email to council clarifying the policy for future reference. The council then moved to adopt the policy; the motion passed unanimously.
• Public Hearing – 2026 Budget and Property Tax Levy: Finance Director (Mr. Reinhart) presented the proposed budget. Key points:
  • The city levy is proposed at $28,214,480, a 5.5% increase ($1.47 million) from 2025, including $1.2 million for general fund operations and $300,000 for capital improvement levy.
  • The city has the fourth lowest tax rate among 32 metro cities with populations 25,000–100,000.
  • The median home value increased from $350,700 to $361,500, resulting in a $63 (6.8%) tax increase on the median home; without value change, the increase would be $30 (3.2%).
  • A $350,000 general fund balance was set aside for debt service levy, and a $50,000 increase in the EDA levy was included.
  • New expenditures include a health inspector position (offset by fees), Minnesota paid leave program implementation, a part-time to full-time clerk, and a shared marketing specialist.
  • A market compensation study led to pay plan adjustments totaling $320,000 to bring non-union positions to market midpoint.
  • The city’s taxable market value is $8.7 billion, up 5% (57.8% from new construction).
  • The city remains a net contributor to the fiscal disparities program (fourth largest out of 179 communities).
  • No public comments were made. The hearing was closed; no council action was taken.

Key Outcomes

• Consent agenda approved (with 5C removed) by unanimous voice vote.
• Temporary advertising and sponsorship signage policy adopted (motion by Councilor Lara, seconded; unanimous aye).
• Public hearing closed (motion by Councilor Whiting, seconded by Councilor Lara; unanimous aye). No action on the budget or levy; the final adoption is scheduled for December 16, 2025.
• EDA meeting: Approved resolution E 2025-005 approving the assignment and assumption of the contract for private development from DECO Properties LLC to Loman Holdings Deco LLC (all terms unchanged). Also approved the EDA bill list and adjourned to January 6, 2026.
• Council adjourned to December 16, 2025, at 7:00 PM.

Liaison & Announcements

• Councilor Delaney: Reported that the 169 Coalition will cease operations in 2026 with a final meeting in February. Shakopee Public Utilities noted 1,300 customers with unknown pipe type for lead replacement letters; 41 electric AMI meters remain to be installed.
• Councilor Whiting: Attended Chief Tate’s award ceremony.
• Councilor Contreras: Attended the Boardwalk ribbon cutting (November 19) and Chief Tate’s ceremony (November 25).
• Councilor Lara: Same events; also attended the Boardwalk Bar & Grill ribbon cutting.
• Mayor Lehman: Acknowledged Chief Tate’s retirement at the end of February 2025. Administrator Reynolds announced the city is accepting applications for a new police chief.
• News & Announcements: Winter parking restrictions are in effect (2–6 AM, until April 1). Holiday Fest 2025 is Saturday, December 6, from 2–6 PM in downtown Shakopee, featuring a vendor marketplace, Santa, tree lighting, and fireworks.