2018 City of Shakopee Comprehensive Annual Financial Report

Major Initiatives The city approved concept designs for Ridge Creek Park, a new 40-acre facility that will include a boardwalk, paved trails, nature area and overlooks on a new water retention area for the Prior Lake Outlet Channel. The city acquired several acres along First Avenue and the river front and is working with a private developer for a 125-unit luxury housing development with commercial space that will break ground in 2019. The city contracted to sell all of its developable property in the West End that was originally acquired from the MnDOT. The city redeveloped the vacant land by bringing in utilities and street improvements. Facilities planned for the parcels include an 80-unit apartment complex, a 16-acre business park site to OPUS Development, the 40-bed rehab facility already under construction and a parcel for a new $2 million facility for Doggie Doos that is relocating from the riverfront bluff redevelopment site. The city developed plans to bring electrical permits and inspections in house to continue to offer better customer service. The city completed the 2040 Comprehensive Plan and sent it out for comment. This 400+ page document sets the stage for the future development and redevelopment of the community including transportation, sewer, water and power. It also sets up a larger vision on the character of development and the community for the next 20 years. The city started a Parks, Recreations and Trails Master Plan with Confluence. They are examining the operation of all city parks and facilities and developing plans for redevelopment of a number of parks facilities and plans for future parks development. The project is being overseen by a 16- person community committee. The Metropolitan Council asked the city to complete an Alternative Urban Area Review (AUAR) Plan for the West End that includes all of the area to be annexed into the Jackson Township. SRF Consulting is completing this plan, that once approved, will allow development to occur in the area without additional environmental reviews as long as it complies with the final plan. Long-Term Financial Planning Historically, the city has issued only limited debt, in the form of bonds and internal funding for planned infrastructure projects, expansion specific to streets, underground utilities, trails and sidewalk expansion. A portion of the long-term debt is funded by special assessments against benefited properties. The city applies special assessments against benefitted properties at a rate of 30% of the assessable project costs. This limited amount of special assessment revenue does require the city to clearly define the other recognized components of the payment of project costs. The city does not assess for overlays, which then requires funding from the tax levy or other regional revenues sources. The City Council has recently allowed for the use of inter-fund

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