2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2025

The Economic Development Authority Fund (EDA) had a fund balance increase after transfers of $936,723. The EDA had transfers totaling $178,051 from TIF District No. 18 Canterbury Commons related to the River City Centre improvements. The Capital Improvement Fund had a fund balance decrease of $2,283,156. In 2025, the City invested $9,747,728 in infrastructure including approximately $5.6 million in pavement reconstruction/bituminous overlay projects, approximately $2.8 million on the Marystown road project and approximately $0.7 million on downtown improvements. The TIF District No. 18 Canterbury Commons fund had a fund balance decrease of $1,574,403. The fund had a transfers to the EDA for River City Centre improvements and the debt funds for TIF debt totaling $1,462,400. In 2025, the City invested approximately $1,324,000 in infrastructure including CSAH 83 expansion, 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

$ 7,049

$ 15,834

$

(34)

1,036

1,247

91

End of Year

$ 8,085

$ 17,081

$

57

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 was reduced each year with collection of cart fees from the contracted garbage hauler. The net position became positive in 2025.

GENERAL FUND BUDGETARY HIGHLIGHTS

Budget amendments totaling an additional $567,900 of revenues and $1,072,900 of expenditures between original and final amended budget were approved during 2025. On the following page are the main components of the amendments.

25