2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025

NOTE 17 – COMMITMENTS

The City has the following construction commitments at December 31, 2025.

Project

Work

12/31/2025 Commitment

Authorization

Completed

Canterbury Commons Internal Roadways Project Consulting- SRF Consulting

$

429,619 4,000,444 368,529 299,988 1,416,936 376,140 643,186 7,253,428

$

3,807,463 359,699 89,996 1,001,419

$

415,517 192,981 8,830 209,992

Jackson Commons Park 2025 SCADA Improvement Arbor Bluff Stream Stabilization

336,756 334,990

94,629 39,384 58,583 4,904,323

Old Carriage Road Roundabout 2025 Downtown Lighting Phase II Marystown Road Corridor Improvements

584,603 2,349,105

NOTE 18 – RISK MANAGEMENT

Through the pool, the City is subject to reassessment but due to reserves and reinsurance contracts, the likelihood is very low. The policy limits through the pool included $2,000,000 aggregate for liability, $2,000,000 for automobile coverage, $1,000,000 faithful performance employee bonding and $1,000,000 for universal umbrella coverage. Property coverage is approximately $147,000,000. The City has entered into three Tax Abatement Financing agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tax Abatement Disclosures. The City's authority to enter into these agreements comes from Minnesota Statute 469. The City entered into these agreements for the purpose of economic development. NOTE 19 – TAX ABATEMENT AGREEMENT There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three years. The City purchases commercial insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT) with other cities in the state which is a public entity risk pool currently operating as a common risk management and insurance program. The City pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self-sustaining through member premiums and reinsures through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, however, retains risk for the deductible portion of its insurance policies. The amount of these deductibles range from $10,000 to $75,000 and is considered immaterial to the financial statements. Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City through tax revenues from the additional taxable value of the property generated by the development (tax abatement).

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