2019 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2019

As noted earlier, net position may serve over time as a useful indicator of a City’s financial position. For the City, assets exceeded liabilities by $274.9 million at the close of the most recent year. By far the largest portion of the City’s net position (81.1 percent) reflects its investment in capital assets (e.g., land, buildings, infrastructure and equipment); less any related debt used to acquire those assets that is still outstanding. The City used these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 118 to 132 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS

Net Position

(Expressed in Thousands)

Governmental Activities

Business-Type Activities

Total

2019

2018

2019

2018

2019

2018

Current and Other Assets

$

51,520 175,013

$

43,166 172,094

$

25,245 83,567

$

24,059 78,642

$

76,765 258,580

$

67,225 250,736

Capital Assets

Total Assets

226,533 $

215,260 $

108,812 $

102,701 $

335,345 $

317,961 $

Deferred Outflows of Resources

7,362

8,929

70

123

7,432

9,052

Long-Term Liabilities Outstanding

$

49,123 8,167

$

46,243 5,344

$

621 662

$

629 425

$

49,744 8,829

$

46,872 5,769

Other Liabilities

Total Liabilities

$

57,290

$

51,587

$

1,283

$

1,054

$

58,573

$

52,641

Deferred Inflows of Resources

9,193

11,559

89

128

9,282

11,687

NET POSITION: Net Investment in Capital Assets

139,359 $

137,799 $

$

83,567

$

78,643

222,926 $

216,442 $

Restricted Unrestricted

6,774 21,220

7,137 16,107

-

-

6,774 45,160

7,137 39,106

23,940

22,999

Total Net Position

167,353 $

161,043 $

107,507 $

101,642 $

274,860 $

262,685 $

An additional portion of the City’s net position (2.5 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($45.2 million) may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current year, the City was able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior year.

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