2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2025

(Net of Depreciation) Expressed in Thousands Capital Assets

Governmental Activities

Business-Type Activities

Total

2025

2024

2025

2024

2025

2024

Land ROW

$

27,927

$

26,020

$

3,797

$

3,797

$

31,724

$

29,817

1,333

1,333

533 617 569

508

1,866

1,841

Construction in Progress

11,356

18,036

3,481

11,973

21,517

Line Rights Infrastructure

-

-

594

569

594

99,816 60,578 20,073

92,932 54,170 17,223

113,505

103,058

213,321 60,578 21,724

195,990 54,170 18,907

Buildings

-

-

Machinery and Equipment

1,651

1,684

Subscription-Based Information Technology Asset (SBITA)

417 589

379 472

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- -

445 589

379 472

Lease Equipment

-

Total

$ 222,089

$ 210,565

$ 120,700

$ 113,122

$ 342,789

$ 323,687

Major capital assets events during the current year included the following:

l

l l l Vehicle and equipment replacements in police, fire, engineering, inspections, streets, park, sewer and storm. Downtown improvements are being completed in phases with phase one completed and phase 2 substantially completed in 2025. SCADA Extensions continue to be worked on in 2025 with completion expected in 2026. Street reconstruction and mill and overlay projects throughout the city and trail work at Stagecoach Road, McGuire Circle and Sunset Court, Holmes Street and Lewis and 2nd Street along with Valley View Trail. Fire station 2 remodel started in 2025 with completion expected in 2026 to create and improve living spaces for full time firefighters. Additional information on the City’s capital assets can be found in Note 6 on pages 71 to 73 of this report. The City completed the major renovation of Sand Venture, the City owned outdoor sand bottom pool in spring of 2025. Parks updates including Marystown Dog park, Killarney Hills park, Stan park tennis court, Scenic Heights pickleball courts and trails, Jackson Commons park, Greenview playground, Valley Crest park, Miracle field at Tahpah park, and Windermere Bluff park improvements. Storm improvements at CSAH 83, Lewis Street and 2nd Avenue, Boiling Springs and Stagecoach road including adding a vaisala weather station during 2025. l l Developer contributed assets of streets, sanitary sewer and storm sewer at Arbor Bluff 2nd, Palomino Trail, Highview Park 4th, Bluff View, Elliana Estates, Canterbury Roadways and Colburn Drive Extension. Construction on Marystown Road/TH169 started at the end of 2025 with construction continuing through 2026. l l l l

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