2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2025

During the current year, the City’s net position increased $28.9 million. Capital assets increased by $19.1 million, which included developer contributed assets of $16.0 million. Long-term liabilities decreased by $2.5 million primarily as a result of bond payments of $2.5 million. Deferred inflows of resources decreased by $3.1 million primarily as a result of a decrease in pension deferred inflows of resources. The impacts to the pension plans are related to investment earnings, changes to plan provisions and changes to actuarial assumptions.

(Expressed in Thousands) Changes in Net Position

Governmental Activities

Business-Type Activities

Total

2025

2024

2025

2024

2025

2024

REVENUES: Program Revenues:

Charges for Services Operating Grants and Contributions Capital Grants and Contributions

$

18,207

$

15,768

$

6,792

$

7,489

$

24,999

$

23,257

3,049

2,700

123

115

3,172

2,815

16,677

7,994

10,331

6,308

27,008

14,302

General Revenues:

Property Taxes Franchise Taxes Tax Increment

26,705

25,947

- - -

- - -

26,705

25,947

1,570 2,835 4,095

1,295 2,266 3,774

1,570 2,835 5,233

1,295 2,266 4,614

Other

1,138

840

Total Revenues

73,138

59,744

18,384

14,752

91,522

74,496

EXPENSES: General Government

6,633

6,513

- - - - - - -

- - - - - - -

6,633

6,513

Public Safety Public Works

18,374 17,950

19,675 16,177

18,374 17,950

19,675 16,177

Culture and Recreation

7,413

6,588

7,413

6,588

Natural Resources

59

44

59

44

Economic Development Interest on Long-Term Debt

2,858 1,433

2,866 1,406

2,858 1,433 5,259 2,640

2,866 1,406 5,134 2,328

Sewer Storm Refuse

- - -

- - -

5,259 2,640

5,134 2,328

-

1

-

1

Total Expenses

54,720

53,269

7,899

7,463

62,619

60,732

Increase (Decrease) in Net Position before Transfers

18,418

6,475

10,485

7,289

28,903

13,764

Transfers

(531)

553

531

(553)

-

-

Change in Net Position

17,887

7,028

11,016

6,736

28,903

13,764

NET POSITION: January 1

206,822

199,794

136,282

129,546

343,104

329,340

December 31

$ 224,709

$ 206,822

$ 147,298

$ 136,282

$ 372,007

$ 343,104

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