2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2025

By far the largest portion of the City’s net position $302.6 million (81.3 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.

(Expressed in Thousands) Net Position

Governmental Activities

Business-Type Activities

Total

2025

2024

2025

2024

2025

2024

Current and Other Assets

$

76,024 222,089

$

76,077 210,565

$

27,636 120,700

$

24,825 113,122

$ 103,660

$ 100,902

Capital Assets

342,789

323,687

Total Assets

$ 298,113

$ 286,642

$ 148,336

$ 137,947

$ 446,449

$ 424,589

Deferred Outflows of Resources

11,818

13,250

137

140

11,955

13,390

Long-Term Liabilities Outstanding

$

58,298 11,167

$

60,792 13,444

$

579 341

$

549 957

$

58,877 11,508

$

61,341 14,401

Other Liabilities

Total Liabilities

$

69,465

$

74,236

$

920

$

1,506

$

70,385

$

75,742

Deferred Inflows of Resources

15,757

18,834

255

299

16,012

19,133

NET POSITION: Net Investment in Capital Assets

$ 181,429

$ 163,879

$ 121,183

$ 112,592

$ 302,612

$ 276,471

Restricted

13,650 29,630

14,849 28,094

-

-

13,650 55,745

14,849 51,784

Unrestricted

26,115

23,690

Total Net Position

$ 224,709

$ 206,822

$ 147,298

$ 136,282

$ 372,007

$ 343,104

An additional portion of the City’s net position 13.7 million (3.7 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $55.7 million (15.0 percent) 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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