2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2024

Long-Term Debt

At the end of the current year, the City had total bonded debt outstanding of $41,480,000. 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

2024

2023

2024

2023

2024

2023

G.O. Bonds

$

41,480

$

43,960

$

-

$

-

$

41,480

$

43,960

The City’s total outstanding bonded debt decreased by $2,480,000 during the current year. The City retired $2,480,000 in principal and did not issue any additional bonded debt. 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 $212.6 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 76 to 80 of this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES

In December 2024, the unemployment rate in Shakopee was 2.4%, which is an increase of 0.1% 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 4.1%. The City's taxable market value is $8.3 billion for taxes payable 2025, which is an increase of $503 million or 6.5 percent from the previous year. New construction accounted for $249.2 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 2025 City property tax levy is increasing by $1,271,050 to $26,744,050. Despite the levy increase the tax rate will see a minimal change as a result of new growth and increasing existing property market value.

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