2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2024

The Economic Development Authority Fund had a fund balance increase after transfers of $972,437. The EDA had transfers totaling $421,106 from TIF District No. 18 Canterbury Commons related to the River City Centre improvements. The Capital Improvement Fund had a fund balance decrease of $90,304. In 2024, the City invested $4,849,513 in infrastructure including approximately $3,900,000 in pavement reconstruction/bituminous overlay projects and approximately $930,000 on downtown improvements. The TIF District No. 18 Canterbury Commons fund had a fund balance decrease of $4,351,292. The fund had a transfer of $1,897,875 to the EDA for River City Centre improvements and the debt funds for TIF debt service payments. In 2024, the City invested $3,902,099 in infrastructure including Eagle Creek Boulevard and traffic signal improvements.

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

$ 6,328

$ 14,930

$

(122)

721

904

88

End of Year

$ 7,049

$ 15,834

$

(34)

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.

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