2023 Annual Comprehensive Financial Report

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

The City did not make any budget amendments for 2023. GENERAL FUND BUDGETARY HIGHLIGHTS

 Actual revenues of $40,098,076 were $6,130,376 over budget. The significant variances are noted below: Licenses and permits came in over budget on account of an influx of development and conservative budgeting. Intergovernmental revenue came in over budget due to an increase in federal grant aid related to police services, an increase in state police and fire aid, a natural resources grant for emerald ash borer and fire training aid in 2023. Charges for services came in over budget as a result of an increases in the contribution from Shakopee Public Utilities, planning fees related to alternative urban areawide review, increase development engineering fees and recreational revenues.   Fines and forfeitures came in over budget as all fine revenue is turned over to Scott County for prosecution costs. The same variance exists in public safety expenditures as the payment to Scott County was also not budgeted. Investment income came in over budget, as a result of an increase in interest earnings and an unrealized gain from the market value of investments. General government came in under budget due to not spending all of the unallocated budget which is for special items that arise during the year. Public works was under budget as a result of staffing vacancies in the engineering and street departments. Public safety came in over mainly attributed to fire coming in over budget as a result of supplies, uniforms, equipment maintenance, utilities and training expenses. Additionally capital purchases by police for fleet cameras and a building inspection electric vehicle.      Actual expenditures of $34,473,752 were $19,948 under budget. The significant variances are noted below:

Culture and recreation were over budget mainly related to rising utility costs.



CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets

The City’s investment in capital assets for its governmental and business type activities as of December 31, 2023, amounts to $302,834,788 (net of accumulated depreciation and accumulated amortization). This investment in capital assets includes land, buildings and systems, improvement, machinery and equipment, park facilities, roads, highways and bridges and leased equipment.

24