2018 City of Shakopee Comprehensive Annual Financial Report

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

Unrestricted net position of the enterprise funds (expressed in thousands):

Storm Drainage

Sewer

Refuse

Beginning of Year Change During Year

$

9,328

$

13,799

$

(791)

(424)

537

96

End of Year $ The City has undertaken several new development projects and continues to review fees charged to ensure costs 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. The Refuse fund was created during 2014 with the City’s purchase of garbage carts. The negative net position is anticipated to be reduced each year as service charges continue to be collected from customers. GENERAL FUND BUDGETARY HIGHLIGHTS Budget amendments of $588,800 between original and final amended budget were approved during 2018. Following are the main components of the amendments:  Revenues were increased $615,000 as a result of increased licenses and permits, increased contracted services in public safety and increased engineering services related to private development and increased community center and ice arena revenues.  Expenditures were increased $26,200. Changes were made between functions related to projects undertaken in 2018. Actual expenditures of $25,841,282 were $780,818 under budget. The variances are noted below:  General government was under budget as a result of not spending contingency funds and timing of projects in planning and development.  Public safety was under budget due to longer than expected vacancies in positions.  Public works was over budget due to an increase in snowplowing during 2018 resulting in increases in overtime, material (sand and salt) and fuel.  Park and recreation came in under budget due to unfilled positions and staffing still being determined with the new operations.  Conservation and natural resources came in under budget due to tree pruning timing in 2018. Actual revenues of $28,107,206 were $1,146,306 over budget. The variances are noted below:  Property taxes came in under budget as a result of tax petitions.  Licenses and permits came in over budget on account of an increase in development and building and conservative budgeting.  Intergovernmental revenue came in over budget due to a Scott County CDA awarding the City $87,815 for a west end study as well as a federal grant related to body worn cameras for $60,000.  Charges for services came in over budget due to increased community center admissions and memberships and ice rentals. Additionally, contracted police services increased and engineering and grading fees were over budget because of the increased development. 8,904 $ 14,336 $ (695)

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