2021 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2021

Long-Term Debt At the end of the current year, the City had total bonded debt outstanding of $37,395,000. The full amount is debt backed by the full faith and credit of the government. Outstanding Debt G.O. and Revenue Bonds

Expressed in Thousands

Governmental Activities

Business-Type Activities

Total

2021

2020

2021

2020

2021

2020

G.O. Bonds

$

37,395

$

40,985

$

-

$

-

$

37,395

$

40,985

Special Assessment Debt with Governmental Commitment

-

90

- -

- -

- -

90

-

-

Total

$

37,395

$

41,075

$

-

$

-

$

37,395

$

41,075

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES REQUESTS FOR INFORMATION This financial report is designed to provide a general view of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director, 485 Gorman St., Shakopee, Minnesota, 55379. The City's taxable market value is $6.0 billion for taxes payable 2022, which is an increase of $507 million or 9.2 percent from the previous year. New construction accounted for $162 million of the increase in value. The City is currently experiencing the construction and development of several new industrial, commercial and residential sites. The City’s past years commercial and industrial growth has spurred the need for new housing. The City is seeing all types of housing, from single family to multi-family and senior housing filling this need. The diversified commercial and industrial base provides a strong base of jobs and tax base. The 2022 City property tax levy is increasing by $1,468,200 to $22,486,000. Despite the levy increase the tax rate will remain flat as a result of new growth. In December 2021, the unemployment rate in Shakopee was 2.6%, down 3.5% from a year ago. The large deccline in unemployment is a result of a rebounding workforce after the Covid-19 outbreak caused large layoffs. This compares favorably to the state’s December unemployment rate of 2.6% and the national rate of 3.9%. The City’s total outstanding bonded debt decreased by $3,680,000 during the current year. The City retired $3,680,000 in principal in 2021 including the retirement of General Obligation Improvement Bonds, 2010A and General Obligation Refunding Bonds, 2012A. Minnesota Statutes limit the amount of general obligation (G.O.) debt a government entity may issue to a net figure of three percent of the taxable market value. The current legal debt margin for the City is $128.2 million, which is significantly in excess of the City’s outstanding G.O. debt. The City maintains an “AA+” debt rating from S&P Global Ratings. Additional information on the City’s long-term debt can be found in Note 8 on pages 69 to 71 of this report.

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