2023 Annual Comprehensive Financial Report

CITY OF SHAKOPEE MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2023

(Expressed in Thousands) Net Position

Governmental Activities

Business-Type Activities

Total

2023

2022

2023

2022

2023

2022

Current and Other Assets

$

85,060 195,197

$

80,188 183,321

$

23,261 107,638

$

21,574 105,104

$ 108,321

$ 101,762

302,835

288,425

Capital Assets

Total Assets

$ 280,257

$ 263,509

$ 130,899

$ 126,678

$ 411,156

$ 390,187

Deferred Outflows of Resources

16,701

19,828

175

261

16,876

20,089

Long-Term Liabilities Outstanding

$

65,484 11,736

$

83,863 8,519

$

677 584

$

886

$

66,161 12,320

$

84,749 10,616

Other Liabilities

2,097

Total Liabilities

$

77,220

$

92,382

$

1,261

$

2,983

$

78,481

$

95,365

Deferred Inflows of Resources

19,944

5,081

267

72

20,211

5,153

NET POSITION: Net Investment in Capital Assets $ 149,910

$ 137,816

$ 107,638

$ 105,104

$ 257,548

$ 242,920

Restricted Unrestricted

15,377 34,507

10,374 37,684

-

-

15,377 56,415

10,374 56,464

21,908

18,780

Total Net Position

$ 199,794

$ 185,874

$ 129,546

$ 123,884

$ 329,340

$ 309,758

An additional portion of the City’s net position 15.4 million (4.7 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $56.4 million (17.1 percent) 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. During the current year, the City’s net position increased $19.6 million. Capital assets increased by $14.4 million, which included developer contributed assets of $4.7 million. Long-term liabilities decreased by $18.6 million primarily as a result of a decrease in net pension liability of $16.7 million. Deferred inflows of resources increased by $15.1 million primarily as a result of an increase in pension deferred inflows of resources. The impacts to the pension plans are related to investment earnings, changes to plan provisions and changes to actuarial assumptions.

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