2023 Annual Comprehensive Financial Report

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

The Capital Improvement fund had a fund balance increase of $1,919,606. In 2023, the City invested $10,239,218 in infrastructure including approximately $4,400,000 in pavement reconstruction/bituminous overlay projects, approximately $5,200,000 on the on the 169 pedestrian bridge and approximately $343,000 on traffic signals. The TIF District No. 18 Canterbury Commons fund had a fund balance decrease of $5,003,780. The fund had a transfer of $3, 139,905 to the EDA for River City Centre improvements and a loss on sale of land of $1,307,388. The TIF District No. 20 Enclave fund had a fund balance increase of $129,090. Tax increment was received for $212,327. The fund paid admin fees and accrued interest on its interfund advance of $83,237. The remaining increment paid down the interfund advance. Proprietary funds 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):

Storm

Drainage

Sewer

Refuse

Beginning of Year Change During Year

$ 4,571

$ 13,720

$

(211)

1,757

1,210

89

End of Year (122) The City has undertaken several new development projects and completed a study in past years to ensure fees charged 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. Revenue from service charges have increased from an increase in the number of customers as well as rate increases. 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 an agreement is in place with the refuse hauler to repay the cost of carts over the next few years. During 2022, as part of a revised garbage contract the hauler took ownership of the carts. The City still continues to receive a cart fee payment as part of the agreement to help pay down the interfund loan on the original purchase. $ 6,328 $ 14,930 $

23