2020 Comprehensive Annual Financial Report

 The city completed a master plan for Scenic Heights Park that includes a new accessible playground and future pickleball courts.  The city is constructing Stagecoach Park and Jennifer Lane Park.  Shakopee Public Utilities is constructing a new Water Tower in the Windermere Development – 135 feet tall and 750,000 gallons.  Shakopee Public Utilities has been approved to construct a new Electrical Substation in the West End.

Major Initiatives

The city completed an Alternative Urban Area Review (AUAR) Plan for the West End that includes all of the area to be annexed into the Jackson Township. The city annexed 250 acres in 2021 and will begin extending services to the area, largely for business park users, in 2022. The city has received applications to annex more than 150 acres adjacent to the recently annexed land.

The city is completing an AUAR for the Valley View Area. This area consists of more than 300 acres of land that can be developed for single family houses.

The city is completing an EAW for an entertainment expansion at Canterbury for a possible $50 million in new investment.

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 transfers, use of existing fund balance position, as well as review of charges and fees that may be applicable to the projects, and currently not tapped for future funding sources. In addition, the City Council passed an ordinance effective January 1, 2017 assessing the private gas and electric utilities a franchise tax based on three percent of energy sales. This franchise tax generated approximately $750,657 in 2020, with revenue dedicated to the Capital Improvement Fund. City capital and equipment needs are currently identified and funded in a manner that will not place an undue burden or single year expense fluctuation on the taxpayers. The planned CIP clearly identifies the needs for current projects as well as future use. This is based on known and anticipated programs and mandates, such as environmental program adjustments and possible community expansion and growth. The capital and equipment needs of the city require constant appraisal for replacement cost, life span and the assurance that the insurance coverage is providing for the most comprehensive, yet affordable, coverage.

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