2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED)

B. Deficit Net Position and Fund Balance

The TIF District No. 18 Canterbury Commons capital project fund had a negative fund balance of $6,577,816 on December 31, 2024 as a result of construction on River City Centre and roads in the Canterbury district. Future tax increment revenues are anticipated to eliminate this deficit. The TIF District No. 19 Riverfront capital project fund had a negative fund balance of $1,559,223 on December 31, 2024 as a result of pubic infrastructure costs. Future tax increment revenues are anticipated to eliminate this deficit. The TIF District No. 20 Enclave capital project fund had a negative fund balance of $2,273,826 on December 31, 2024 as a result of lot improvements at the former city hall site. Future tax increment revenue is anticipated to eliminate this deficit. The Refuse enterprise fund had a negative net position of $34,220 on December 31, 2024 as a result of an agreement with the refuse hauler to purchase garbage carts from the city. The city will receive an annual cart fee payment which is used to pay off the advance to the sewer fund and is anticipated to eliminate this deficit. The Employee Benefits internal service fund had a negative net position of $1,308,316 on December 31, 2024. This deficit has been in place for many years and is not expected to be resolved. Management’s position is that the cash balance should be sufficient enough to cover the current compensated absences and not necessarily the noncurrent portion of compensated absences. C. Excess of Expenditures Over Appropriations For the year ended December 31, 2024 expenditures exceeded appropriations in the following fund:

Excess of Expenditures Over Appropriations

Budget

Actual

Economic Development Authority

$

1,011,450

$

1,032,179

$

20,729

The EDA board approved major improvements to the building at River City Centre. The excess expenditures were funded from a transfer from TIF District No. 18 Canterbury Commons Capital Project Fund.

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