2018 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2018

The combining statements referred to earlier in connection with non-major governmental funds, internal service funds and fiduciary funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 118 to 134 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a City’s financial position. For the City, assets exceeded liabilities by $262.7 million at the close of the most recent year. By far the largest portion of the City’s net position (82.4 percent) reflects its investment in capital assets (e.g., land, buildings, infrastructure and equipment); less any related debt used to acquire those assets that is still outstanding. The City used these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net Position (Expressed in Thousands)

Governmental Activities

Business-Type Activities

Total

2018

2017

2018

2017

2018

2017

Current and Other Assets

43,166 $

41,399 $

24,059 $

$

23,732 75,547

67,225 $

$

65,131 247,236

Capital Assets

172,094

171,689

78,642

250,736

Total Assets

215,260 $

213,088 $

102,701 $

$

99,279

317,961 $

$

312,367

Deferred Outflows of Resources

8,929

11,800

123

181

9,052

11,981

Long-TermLiabilities Outstanding

46,243 $

49,943 $

$

629 425

$

715 357

46,872 $

$

50,658

Other Liabilities

5,344

5,959

5,769

6,316

Total Liabilities

51,587 $

55,902 $

$

1,054

$

1,072

52,641 $

$

56,974

Deferred Inflows of Resources

11,559

12,141

128

110

11,687

12,251

NET POSITION: Net Investment in Capital Assets

137,799 $

135,442 $

78,643 $

$

75,547

216,442 $

$

210,989

Restricted

7,137

6,343

-

-

7,137

6,343

Unrestricted

16,107

15,060

22,999

22,731

39,106

37,791

Total Net Position

161,043 $

156,845 $

101,642 $

$

98,278

262,685 $

$

255,123

An additional portion of the City’s net position (2.7 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($39.1 million) may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current year, the City was able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior year. 17