2022 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022

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 $309.8 million at the close of the most recent year. By far the largest portion of the City’s net position (78.4 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

2022

2021

2022

2021

2022

2021

Current and Other Assets

$

80,188 183,321

$

65,098 182,293

$

21,574 105,104

$

24,540 96,269

$ 101,762

$

89,638 278,562

Capital Assets

288,425

Total Assets

$ 263,509

$ 247,391

$ 126,678

$ 120,809

$ 390,187

$ 368,200

Deferred Outflows of Resources

19,828

11,467

261

309

20,089

11,776

Long-Term Liabilities Outstanding

$

83,863 8,519

$

51,116 11,795

$

886

$

553 440

$

84,749 10,616

$

51,669 12,235

Other Liabilities

2,097

Total Liabilities

$

92,382

$

62,911

$

2,983

$

993

$

95,365

$

63,904

Deferred Inflows of Resources

5,081

14,156

72

356

5,153

14,512

NET POSITION: Net Investment in Capital Assets

$ 137,816

$ 143,608

$ 105,104

$

96,269

$ 242,920

$ 239,877

Restricted Unrestricted

10,374 37,684

7,048 31,135

-

-

10,374 56,464

7,048 54,635

18,780

23,500

Total Net Position

$ 185,874

$ 181,791

$ 123,884

$ 119,769

$ 309,758

$ 301,560

An additional portion of the City’s net position (3.3 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($56.5 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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