2026 Budget for the City of Shakopee

4

Transfers to the General Fund Transfers from other city funds to the General Fund help pay for operating costs.

Description

2025

2026

Change

Public safety fund (patrol officer reimbursement)

$126,000 350,000 400,000

$100,000 (26,000)

Self-insurance fund

350,000 400,000 50,000

Sewer/storm water (allocation of admin overhead)

EDA (allocation of admin overhead)

-

50,000 $24,000

Change in transfers

The city received $1.99 million in one-time public safety aid in 2023 which was placed in a separate Public Safety Aid special revenue fund. Funding was provided in 2024 and 2025 to pay for a portion of the cost of two additional officers. These positions weren’t hired until fall of 2024 and as a result, not all funding has been utilized. Approximately $100,000 remains in the fund which is proposed to be utilized with the 2026 budget. Staff is proposing to utilize $350,000 of fund balance from the city’s self-insurance fund to offset costs associated with an increase in the employer share of health insurance premiums (this is the same amount that was used for the 2025 budget). The city continues to explore a potential implementation of a Scott County health insurance pool, a partnership with Scott County and cities, that would increase the plan participants and save money over the long-term. Funding of $600,000 was set-aside initially in 2017 as the city explored their own self-insurance options. A new recurring annual transfer from the EDA to the General fund in the amount of $50,000 is included in the 2026 budget. Similar to the city utility funds (sewer and storm water), the EDA receives administration support from general fund operations including the city council, finance, information technology, communications and human resources. From a financial standpoint, the administration allocation would better reflect the full cost of EDA operations. A corresponding $50,000 increase in the EDA levy is being proposed, resulting in no impact on the EDA operational funding.