2019 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2019

The TIF District No. 19 Riverfront fund had a fund balance decrease of $428,906. In 2019 purchases of land held for resale along with moving expenses were made in the riverfront area to prepare for development. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the enterprise funds (expressed in thousands): Proprietary funds

Storm

Drainage

Sewer

Refuse

Beginning of Year Change During Year

8,904 $

14,336 $

$

(695)

(298)

1,089

129

End of Year

8,606 $

15,425 $

$

(566)

 Revenues were increased $3,155,800 as a result of increased licenses and permits, increased engineering services related to private development and increased community center and ice arena revenues. Expenditures were increased $740,800. Changes were made throughout all functions, including an additional allocation for building permit software. Licenses and permits came in over budget on account of an increase in development and building and conservative budgeting. Charges for services came in over budget due to increased community center admissions and memberships and ice rentals. The City has undertaken several new development projects and continues to review fees charged to ensure costs are covering operations of the funds. A portion of these projects are funded through special assessments, but a significant portion of this is funded through the anticipated future revenues collected for services. The Refuse fund was created during 2014 with the City’s purchase of garbage carts. The negative net position is anticipated to be reduced each year as service charges continue to be collected from customers. GENERAL FUND BUDGETARY HIGHLIGHTS Actual revenues of $30,706,363 were $582,363 over budget. The variances are noted below: Investment income came in over budget as a result of increased interest earnings and unrealized gains. General government was under budget as a result of not spending contingency funds and due to vacancies in positions during the year. Public safety was under budget due to vacancies in positions during the year as well as timing of building inspection software implementation. Budget amendments of $2,415,000 between original and final amended budget were approved during 2019. Following are the main components of the amendments: Public Works, Culture and Recreation were under budget due to vacancies in positions during the year. Actual expenditures of $27,397,042 were $561,958 under budget. The variances are noted below:       

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