2021 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2021

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of a City’s financial position. For the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $301.6 million at the close of the most recent year. By far the largest portion of the City’s net position (79.5 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.

Net Position

(Expressed in Thousands)

Governmental Activities

Business-Type Activities

Total

2021

2020

2021

2020

2021

2020

Current and Other Assets

$

65,098 182,293

$

56,591 175,969

$

24,540 96,269

$

24,598 88,975

$

89,638 278,562

$

81,189 264,944

Capital Assets

Total Assets

247,391 $

232,560 $

120,809 $

113,573 $

368,200 $

346,133 $

Deferred Outflows of Resources

11,467

5,468

309

87

11,776

5,555

Long-Term Liabilities Outstanding

$

51,116 11,795

$

56,822 11,513

$

553 440

$

678 354

$

51,669 12,235

$

57,500 11,867

Other Liabilities

Total Liabilities

$

62,911

$

68,335

$

993

$

1,032

$

63,904

$

69,367

Deferred Inflows of Resources

14,156

9,252

356

24

14,512

9,276

NET POSITION: Net Investment in Capital Assets

143,608 $

135,476 $

$

96,269

$

88,975

239,877 $

224,451 $

Restricted Unrestricted

7,048 31,135

8,206 20,526

-

-

7,048 54,635

8,206 44,155

23,500

23,629

Total Net Position

181,791 $

164,208 $

119,769 $

112,604 $

301,560 $

276,812 $

An additional portion of the City’s net position (2.3 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($54.6 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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