2023 Annual Comprehensive Financial Report

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

Long-Term Debt At the end of the current year, the City had total bonded debt outstanding of $43,960,000. The full amount is debt backed by the full faith and credit of the government.

Outstanding Debt

General Obligation Bonds Expressed in Thousands

Governmental Activities

Business-Type Activities

Total

2023

2022

2023

2022

2023

2022

G.O. Bonds

$

43,960

$

45,920

$

-

$

-

$

43,960

$

45,920

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES In December 2023, the unemployment rate in Shakopee was 2.3%, which is no change from 2.3% from a year ago. This compares favorably to the state’s December unemployment rate of 2.6% and the national rate of 3.5%. The City's taxable market value is $7.8 billion for taxes payable 2024, which is an increase of $574 million or 8.0 percent from the previous year. New construction accounted for $182.9 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 2024 City property tax levy is increasing by $1,581,000 to $25,473,000. Despite the levy increase the tax rate will see a significant decrease as a result of new growth and increasing existing property market value. 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 $173.6 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 78 to 82 of this report. The City’s total outstanding bonded debt decreased by $1,960,000 during the current year. The City retired $1,960,000 in principal and did not issue any additional bonded debt.

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