2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2024

GENERAL FUND BUDGETARY HIGHLIGHTS

l Revenues were increased $325,000 in forfeitures offset by a corresponding increase in prosecution services expense. Previously repayment to Scott County was netted against the revenue. Additionally $221,650 was added in intergovernmental revenues for the state fire aid, historical society grant and a building official grant. The expenditure budget adjustments of $623,950 included the cost of the national registry program with the historical society, state fire aid, building inspector hired with the grant, union contract settlements, county court fines offsetting the revenue increase, and additional firefighter positions. Budget amendments totaling an additional $546,650 of revenues and $623,950 of expenditures between original and final amended budget were approved during 2024. Following are the main components of the amendments: Intergovernmental revenue came in over budget due to an increase in public safety grants received during the year. Licenses and permits came in over budget on account of an influx of development and conservative budgeting. Actual revenues of $40,977,156 were $4,183,506 over budget. The significant variances are noted below: Charges for services came in over budget as a result of an increases in police contracted services and an increase in development. This was offset by SandVenture not opening in 2024 due to construction on the pool. 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. 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. Public works was under budget as a result of staffing vacancies in the engineering department and the street department having less snow plowing and snow removal including salt purchases related to favorable winter weather. Public safety came in over budget as a result of police, fire and building inspection divisions coming in over budget. Police came in over budget due to the additional liability recorded for future compensated absences with the new union contract settlement and pension expenses related to PERA as well as purchasing additional equipment and citywide cameras that were not originally budgeted. Fire came in over budget as a result of the new staffing model and being under in some of our assumptions in costs for part-time, staffing, and uniforms and training. Building Inspection came in over budget as a result of software costs related to programming rental inspections and credit card processing fees directly related to more than anticipated revenue being received. l l l l l l l l Actual expenditures of $37,633,698 were $48,612 under budget. The significant variances are noted below:

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