CAFR 2020 Final

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

The TIF District No. 20 Enclave fund had a fund balance decrease of $2,382,855. A redevelopment grant of $2,132,400 was issued for public redevelopment costs for the property, which will be repaid from tax increment revenues.

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

$ 8,606

$ 15,425

$

(566)

(376)

(127)

133

End of Year

$ 8,230

$ 15,298

$

(433)

The City has undertaken several new development projects and continues to review fees charged to ensure costs 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. 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 service charges continue to be collected from customers.

GENERAL FUND BUDGETARY HIGHLIGHTS

l l Revenues were increased $3,167,823 primarily as a result of Federal Coronavirus Relief funds. Expenditures were increased $662,494. Changes were made throughout all functions mainly as a result of expenditures related to Coronavirus Relief funds. Budget amendments of $2,505,329 between original and final amended budget were approved during 2020. Following are the main components of the amendments: Licenses and permits came in over budget on account of an increase in development and building and conservative budgeting. Charges for services came in under budget as a result of COVID-19 related community center closures and reductions in recreational programming. Investment income came in over budget as a result of increased interest earnings and unrealized gains. General government was under budget as a result of not spending contingency funds and due to vacancies in positions during the year. Public works was under budget due to pavement management coming in under budget. Additionally less overtime and part time work in 2020. Culture and Recreation expenditures were under budget as a result of reductions in recreational programming due to the COVID-19 pandemic. Actual expenditures of $28,883,520 were $921,974 under budget. The variances are noted below: Actual revenues of $31,413,288 were $147,465 over budget. The variances are noted below: l l l l l l

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