2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025

NOTE 14 – PENSION PLANS (CONTINUED)

Public Employees' Retirement Association (Continued)

D. Pension Costs (Continued)

1. General Employees Fund Pension Costs (Continued)

At December 31, 2025, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources:

Deferred

Inflows of Deferred Resources

Outflows of Resources

Differences between expected and actual experience

$

364,176 92,094

$

-

Changes in actuarial assumptions

879,484

Net difference between projected and actual earnings on pension

plan investments Changes in proportion

- 68,514 437,578

1,520,906 98,638

Employer contributions subsequent to the measurement date

-

$

962,362

$ 2,499,028

The $437,578 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

December 31, Year Ending

Pension Expense

Amount

2026 2027 2028 2029

$

(689,316) (515,782) (271,692) (497,454)

Total

$

(1,974,244)

86