2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024

NOTE 20 – TAX INCREMENT FINANCING (CONTINUED)

Since the plan has been fully dissolved, the City is no longer required to present the required supplementary information (RSI) related to the pension plan, including the 10-year schedules of changes in net pension liability and related rations, schedule of contributions, and actuarial assumptions. Prior years’ RSI related to the plan will remain available in previously issued financial statements for historical reference. NOTE 21 – DISSOLUTION OF FIRE PENSION PLAN During the fiscal year ended December 31, 2024, the City dissolved its Firefighters’ Pension Plan as of May 5, 2024. Prior to dissolution, the plan was a single employer defined benefit pension plan established to provide benefits for members of the Shakopee Fire Department per Minnesota State Statutes. The dissolution was completed in accordance with applicable laws and regulations, and all pension obligations were fully settled. As a result, as of December 31, 2024, the City has no remaining pension asset, liability, or related deferred inflows or outflows of resources associated with the plan. TIF District No. 21 was established in 2018 as a soils condition district to facilitate development of certain property by removing or remediating hazardous substances, pollution or contaminants within the city. Under the agreement, the developer, Shakopee Crossings Limited Partnership, will be reimbursed up to $1,387,388 of soil remediation costs and will be reimbursed through tax increment collections over the next 20 years. The district was created in 2018 and was certified to the State of Minnesota in 2019. During the year ended December 31, 2024, the City generated $36,350 of tax increment revenue and made payments of $35,221. The remaining unpaid pay-as-you go balance at year end was $1,645,367.

No further pension-related financial impact is expected in future periods.

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