2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2025

Governmental Activities

Governmental activities increased the City’s net position by $17.9 million. Contributing factors to this increase are related to intergovernmental revenues, engineering fee revenues, building permit revenues, increased investment earnings and contributed assets from outside developers. Expenditures increased due to wage adjustments, contracted engineering services, fee revenue, an increase in full time firefighters and attorney costs related to prosecution services.

Expenses and Program Revenues – Governmental Activities

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000

Program Revenues Expenses

General

Recreation

Economic

Government

Public works

Public Safety

Development

Interest on Long Term Debt

Conservation and

Natural Resources

Revenues by Source – Governmental Activities

Operating Grants and Contributions 4%

Other Revenues 5%

Capital Grants and Contributions 23%

Charges for Services 25%

Other Taxes 1%

Tax Increment 4%

Franchise Taxes 2%

Taxes 36%

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