2020 Comprehensive Annual Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

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 and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $276.8 million at the close of the most recent year. By far the largest portion of the City’s net position (81.1 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

2020

2019

2020

2019

2020

2019

Current and Other Assets

$

56,591 175,969

$

51,520 175,013

$

24,598 88,975

$

25,245 83,567

$

81,189 264,944

$

76,765 258,580

Capital Assets

Total Assets

$

232,560

$

226,533

$

113,573

$

108,812

$

346,133

$

335,345

Deferred Outflows of Resources

5,468

7,362

87

70

5,555

7,432

Long-Term Liabilities Outstanding

$

56,822 11,513

$

49,123

$

678 354

$

621 662

$

57,500 11,867

$

49,744

Other Liabilities

8,167

8,829

Total Liabilities

$

68,335

$

57,290

$

1,032

$

1,283

$

69,367

$

58,573

Deferred Inflows of Resources

5,485

9,252

24

92

5,509

9,344

NET POSITION: Net Investment in Capital Assets

$

135,476

$

139,359

$

88,975

$

83,567

$

224,451

$

222,926

Restricted

8,206

6,774

-

-

8,206

6,774

Unrestricted

20,526

21,220

23,629

23,940

44,155

45,160

Total Net Position

$

164,208

$

167,353

$

112,604

$

107,507

$

276,812

$

274,860

An additional portion of the City’s net position (3.0 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($44.2 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.

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