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June 03, 2025 - Council Packet
Shakopee City Council Regular Meeting Tuesday, June 3, 2025 7:00 PM City Hall, 485 Gorman Street Vision: Shakopee is a distinctive river town with a variety of business, cultural, and recreational opportunities in a safe, welcoming, and attractive environment. Our vision is for Shakopee to continue being the place people want to live, work, and play! Mission: Our mission is to deliver high quality services essential to maintaining a safe and sustainable community. We commit to doing this cost-effectively, with integrity and transparency. 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Approval of Agenda 5. Consent Agenda These items are considered routine and will be enacted by one motion. There will be no separate discussion of these unless a council member or staff requests, in which event the item will be removed from the consent agenda for separate discussion & action. 5.a Declaration of Surplus Fire Department Property 5.b Walmart Foundation's Spark Good Local Grants Program Application and Award 5.c Approve a License Agreement with the Shakopee Mdewakanton Sioux Community for the 2025 SCADA System Expansion Project 5.d Approve Extended Construction Hours for the County Road 78 and County Road 79 Roundabout Project 5.e Accept bids and award a contract for Materials Procurement for the Minnesota Riverbank Protection and Parks Integration -Marina Equipment Project 1 5.f Authorize the submittal of Letter of Support for the University of Minnesota Center for Transportation Studies' Safe Streets and Roads for All (SS4A) grant application 5.g Adopt a Resolution of Support for the Downtown Quiet Zone 2026 State Capital Budget Request 5.h Authorize Execution of a Construction Cooperative Agreement with MnDOT for the Marystown Road Corridor Improvement Project 5.i Accept a Proposal from WSB for Construction Services for 2025 Private Development Projects 5.j Approval of the City Council Meeting Minutes for May 20, 2025 5.k Approve a Tobacco License for Northstar Regional Men's Treatment Center 6. Public Comment Individuals may address the City Council about any item not on the regular agenda. Speakers are requested to come to the center table, state their name and address for the clerk's record, and limit their remarks to three minutes. The City Council will not take official action on items discussed at this time, but may refer the matter to staff for a follow up report or direct that matter be scheduled on an upcoming agenda. 7. Business removed from consent agenda 8. Recess for Economic Development Authority Meeting 9. Reconvene 10. General Business 10.a 2024 Annual Comprehensive Financial Report, Audit Presentation and Review by Abdo 10.b Final Plat of Richland Court 10.c Ordinance Amending City Code Section 111.02 related to fence construction and placement regulations 10.d Monetary Donation for Aquatic Programming 10.e Donation of AED SaveStation at Schleper Stadium 11. Reports Liaison and Administration 2 11.a City Bill List 12. Other Business 13. Adjourn to June 17, 2025 at 7:00 p.m. 3 Shakopee City Council OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Declaration of Surplus Fire Department Property Mike Nelson, Fire Chief Action to be considered: Declare Fire Department property as surplus property and authorize for sale and disposal. Motion Type: Simple Majority 5.a Background: The attached document includes a list of items that are expired, damaged, or no longer used by the Fire Department and may be declared surplus. Equipment that is expired, damaged, or unsuitable for resale will be disposed of. Equipment suitable for resale will be sold. Recommendation: Approve as recommended. Budget Impact: None. Attachments: Fire Department Surplus Equipment 6.3.2025.pdf 4 Fire Department Surplus Equipment June 3, 2025 5' Dry Wall Hook 8' Pike Pole 2 - Storz Wrenches 14- SCUBA Cylinders Backpack Blower Mercury Spill Kit Low Level Strainer Irons Set Mounting Bracket SCBA Mounting Bracket Parts Washer Hardware Storage Bin Approximately 150 Trophies Approximately 30 Plaques Toy Pedal Car 5 Shakopee City Council 5.b OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Walmart Foundation's Spark Good Local Grants Program Application and Award Andrea Harrell, Grants and Special Projects Coordinator Chelsea Petersen, Assistant City Administrator Action to be considered: Adopt Resolution R2025-063, approving an application to the Walmart Foundation's Spark Good Local Grants program and subsequent grant award. Motion Type: Simple Majority Background: The Walmart Foundation's Spark Good Local Grants program strengthens local communities by investing in the communities Walmart and Sam's Club serves. Local grants are designed to support local organizations that meet the unique needs of the communities where they operate, build pride among associates, and deepen relationships with their customers. Each year, Walmart U.S. stores, Sam's Clubs, and their Distribution Centers award local cash grants to organizations in their community. Recently, the local Sam's Club Distribution Center reached out to invite the City to apply for the Spark Good grant, stating that a set amount of $7,500 has been designated to the City to provide $3,750 grants to both the Fire and Police Departments for equipment and/or projects of the Departments' choosing. The Shakopee Fire Department will be requesting and utilizing the funds to purchase EMS equipment. The Shakopee Police Department will be requesting and utilizing the funds to supplement the Recovery Assistance Program (RAP). Recommendation: Adopt Resolution R2025-063. Budget Impact: The grant requires a 0% match. Attachments: Resolution R2025-063.docx 6 RESOLUTION R2025-063 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY TO SUBMIT A WALMART FOUNDATION SPARK GOOD LOCAL GRANT APPLICATION AND ACCEPT THE SUBSEQUENT GRANT AWARD WHEREAS, the City of Shakopee supports the application made to the Walmart Foundation Spark Good Local Grant program, and WHEREAS, the local Sam's Club Distribution Center has invited the City of Shakopee to apply for the grant with a pre -determined funding amount of $7,500 designated to the City's application, and WHEREAS, the application is to obtain funding to provide Recovery Assistance Program scholarships within the Police Department and to purchase of EMS equipment for use within the Fire Department, and WHEREAS, the City of Shakopee recognizes a 0% match is required. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: the City of Shakopee recognizes that with the submission of the grant application to the Spark Good Local grant program, it will be awarded the grant by the Walmart Foundation. The City of Shakopee agrees to accept the grant award and grant agreement for the above - referenced project, and authorizes the City Administrator to execute the necessary contracts and agreements applicable to accepting this award. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 3rd day of June 2025. Matt Lehman, Mayor of the City of Shakopee ATTEST: Richard Parsons City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 7 Shakopee City Council 5.c OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Approve a License Agreement with the Shakopee Mdewakanton Sioux Community for the 2025 SCADA System Expansion Project Josiah Ferguson, Graduate Engineer Alex Jordan, City Engineer Action to be considered: Approve License Agreement with the Shakopee Mdewakanton Sioux Community for the 2025 SCADA Expansion Project. Motion Type: Simple Majority Background: At its April 15, 2025, meeting, the City Council approved a contract with Vinco, Inc. for the 2025 SCADA Expansion Project. One of the three sites for this project is located on property owned by the Shakopee Mdewakanton Sioux Community (SMSC), located within an easement. SMSC requires the City to enter into a License Agreement for access onto their property prior to beginning construction. The Agreement establishes the City's requirements for temporarily accessing SMSC's property to complete the project. A similar agreement was adopted in 2024 for the L16 Levee Rehabilitation Project. Recommendation: Approve the agreement. Budget Impact: None. Attachments: Access License Agreement SCADA project.pdf 8 CI LICENSE AGREEMENT CITY OF SHAKOPEE SCADA EXPANSION TEMPORARY ACCESS LICENSE AND RIGHT -OF- ENTRY Subject to the limitations specified in this License Agreement, the Shakopee Mdewakanton Sioux Community, a sovereign Indian Tribe, federally recognized under Section 16 of the Indian Reorganization Act of 1934, 25 U.S.C., 476, located in Scott County, Minnesota ("SMSC") hereby grants to the CITY OF SHAKOPEE, a Minnesota municipal corporation located at 485 Gorman Street Shakopee, MN 55379 and its employees, contractors and invitees or guests ("CITY OF SHAKOPEE"), the following temporary license and non-exclusive right -of -entry: A temporary license and right of entry ("License") is hereby granted to the CITY OF SHAKOPEE, its employees, agents, and invitees through and to certain property owned by SMSC located in Shakopee, MN 55379 (PID 279060105 and 271000040) ("SMSC Property") as depicted on Exhibit A ("License Area"), for only the following purposes: Permit, supervise, monitor, and access work being completed by Vinco, Inc. on certain property owned by SMSC, 1251 Bluff Avenue East. Access shall be through existing SMSC private frontage road located in Section 6, Township 115, Range 22, to access the worksite per access route depicted at Exhibit A. The License Area may only be accessed during the hours of 7:00 A.M. TO 7:00 P.M. — Monday through Friday. CITY OF SHAKOPEE shall be responsible for the repair (or cost thereof) of any damage to the License Area caused by CITY OF SHAKOPEE, its employees, agents, or invitees during the term of this License Agreement. Any use of the License Area by CITY OF SHAKOPEE, its agents, or employees shall be (i) at no cost to SMSC (ii) in compliance with all applicable governmental rules, regulations, and requirements, and in a good workmanlike manner and in such a manner as to cause the least economic interference with the SMSC Property. CITY OF SHAKOPEE agrees that it is accepting this License without any warranty or representation regarding the License or the License Area, and is subject to all valid and existing licenses, leases, grants, exceptions, encumbrances, title defects, matters of record, reservations, and conditions affecting the SMSC Property or access thereto. Nothing in this License shall confer or be construed or interpreted to confer any authority on CITY OF SHAKOPEE or SMSC to limit or expand any property interest of either of the parties to the License Area, nor shall it confer or be construed or interpreted to confer waiver of any immunities or reservation of rights on the part of the SMSC or CITY OF SHAKOPEE. CITY OF SHAKOPEE 1 does not waive any statutory immunity from available to it under Minnesota Statutes, Chapter 466 or under common law The CITY OF SHAKOPEE shall be responsible for any costs incurred by SMSC on account of the CITY OF SHAKOPEE's entry upon or use of the License Area or on account of the CITY OF SHAKOPEE's breach of its obligations under this License Agreement. To the extent permitted by applicable law, the CITY OF SHAKOPEE shall indemnify, defend, and hold SMSC harmless from and against any and all claims, demands, losses, damages, costs and expenses (including but not limited to court costs, penalties, and reasonable attorneys' fees), judgments, liabilities, and causes of action of any nature whatsoever resulting from or relating to the use or occupancy of the License Area by the CITY OF SHAKOPEE, its employees, agents, invitees, or guests or arising in any manner out of the acts or omissions of the CITY OF SHAKOPEE, its employees, agents, invitees, or guests, in connection with this License or with the use or occupancy of the License Area. The indemnity obligations set forth in this paragraph shall survive the termination of this License Agreement for a period of 12 months. CITY OF SHAKOPEE shall obtain and keep in force (or through self-insurance) and require its contractors to obtain and keep in force during the entire term of this License commercial general liability insurance, including coverage for bodily and personal injury, property damage, and contractual liability, with limits of not less than $1,000,000 each occurrence and $2,000,000 general aggregate. In addition, CITY OF SHAKOPEE shall obtain and keep in force (or through self-insurance) and require its contractors to obtain and keep in force during the entire term during which the License is in effect automobile liability insurance in an amount not less than $2,000,000 combined single limit. CITY OF SHAKOPEE represents that it and any contractors entering onto the License Area have workers' compensation insurance to the extent required by law and agrees to furnish proof of such insurance upon request. This License Agreement constitutes the entire agreement between CITY OF SHAKOPEE and SMSC. With the exception of this License Agreement, there are no other agreements, either oral or written, between CITY OF SHAKOPEE and SMSC. Any modification of this License Agreement or additional obligation assumed by either party in connection with this License Agreement shall be binding only if evidenced in writing signed by each party or an authorized representative of each party. This License Agreement does not create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY OF SHAKOPEE and SMSC, the sole relationships of the parties hereto being that of Licensee and Licensor under this License Agreement. This License Agreement shall be effective as of June 17, 2025 and will terminate no later than May 1, 2026("Term"). The terms and conditions herein shall be binding upon the parties successors and assigns. EXECUTED as of this day of 2025. 2 SHAKOPEE MDEWA„ANTON SIOUX COMMUNITY Cole W. Miller, chairman SMSC Business Council CITY OF SHAKOPEE By: Its: By: Its: 2025 SCADA EXPANSION ACCESS LICENSE Exhibit A nlooloolooloolooly rym OuudM1iim Shakopee City Council 5.d OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Approve Extended Construction Hours for the County Road 78 and County Road 79 Roundabout Project Alex Jordan, City Engineer Action to be considered: Approve suspension of City Code Sec. 130.45, Noise Elimination and Noise Prevention, Subd. C.4, Hourly Restrictions on Certain Operations, allowing the County Road 78 and County Road 79 Roundabout project contractor, Northwest Asphalt, Inc., and their subcontractors, to perform work beginning at 7 a.m. on Saturdays through the end of August, 2025. Motion Type: Simple Majority Background: City Code Section 130.45 restricts the hours of construction operation from 7 a.m. to 10 p.m. on weekdays, and 9 a.m. to 9 p.m. on weekends and holidays. Contractors working on the County Road 78 and County Road 79 Roundabout project have requested the city extend working hours to begin work at 7 a.m. on Saturday mornings through the end of August 2025. This extension has been requested by the Contractor in an effort to meet Scott County's project schedule. The project is located within the proximity of residential properties as shown on the attached map. If property owner complaints are received by the City, the ordinance suspension can be revoked at the discretion of the City Engineer in consultation with the County Engineer. With Council's approval, a public news release and notice would be placed in the New Prague Times and on the City's website to meet the City Code requirements. Recommendation: Approve the requested action. Budget Impact: 13 None. Attachments: NWA Early Start Request - Saturdays.pdf County Road 78-79 Roundabout - Extended Construction Hours.pdf 14 I May 27th, 2025 TH EST ASP ALT, I C. "Paving, Excavation and Utilities" 1451 STAGECOACH ROAD SHAKOPEE, MN 55379-2797 City of Shakopee 485 Gorman Street Shakopee MN. 55379 Attn: Alex Jordan, P.E. City Engineer Re: Northwest Project # 5714 County Road 78 & 79 Roundabout Shakopee, MN Dear Alex, PHONE (952) 445-1003 FAX (952) 445-1056 www.nwasphalt.net Northwest respectfully requests extended working hours on the above referenced project due to extreme time constraints. As you are aware this project has an 8 week construction window to complete through pavement, lighting & striping. This is almost an impossible feat and will require Northwest to work every Saturday starting June 7th through August 9th We hereby request modified working hours on Saturdays starting at 7:00am, shutting down by 4:00pm. We appreciate your consideration. Respectffally submitted, Northvest,Tpta) T Enright AN EQUAL OPPORTUNITY EMPLOYER '^µ u'u'°ill up;V1�",':IIov' ',Vi, uVV ' i,1,",;^ Ilvu „„,II,lll o uII,III a,odlllna,,, uwIIPI'li l Iii dl pl„„i,,riP',,,Iy,IP i, y'µ`„ Shakopee City Council 5.e OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Accept bids and award a contract for Materials Procurement for the Minnesota Riverbank Protection and Parks Integration -Marina Equipment Project Alex Jordan, City Engineer Action to be considered: Adopt Resolution R2025-064, accepting bids and awarding a contract in the amount of $341,660.00 to The Dock Doctors, LLC, for Materials Procurement for the Minnesota Riverbank Protection and Parks Integration - Marina Equipment Project. Motion Type: Simple Majority Background: The City's adopted Capital Improvement Plan (CIP) programs the construction of the Minnesota Riverbank Stabilization Project in 2026. The project includes stabilizing sections of the Minnesota Riverbank, flood protection for the city's parallel sanitary sewer, and parks integration improvements, including re-establishment of the historic Sweeney's Marina. On its July 18, 2023 meeting, the City Council adopted Resolution R2023-084, Approving the MN Department of Natural Resources' Outdoor Recreation Grant Award Agreement. Through this grant program, the City was awarded $350,000 for construction of the marina to provide river access for non -motorized personal watercraft. A 50% match is required for this grant. The grant expires on June 30, 2025, of which the Grant Agreement requires the City to be invoiced for the proposed improvements associated with the grant by the expiration date. To meet the grant requirements and deadlines, the City solicited bids for the procurement of the materials for construction of the gangway, floating dock and ADA accessible kayak launch. The marina is designed to accommodate ADA accessibility an estimated 62 days per year (33% of recreation season - May 1 to October 31) and full accessibility and access to the river 158 days per year (86% of recreation season). The attached plan sheet show the design elements of the marina and dock system. Acquisition of these materials in 2025 allows the City to be eligible for the full grant 17 amount while still constructing the improvements in 2026 with the larger Riverbank Stabilization project. In accordance with Minnesota Statute Section 471.345 Uniform Municipal Contracting Law, bids were solicited and opened May 29, 2025. Two bids were received and The Dock Doctors, LLC from Ferrisburgh, VT was the low bidder in the amount of $341,660.00 (see attached resolution for the bid tabulation summary). The Dock Doctors, LLC has the capacity and experience for the project and is deemed a responsible bidder. Construction is anticipated to be completed in 2026 in conjunction with the Riverbank Stabilization improvements. Recommendation: Adopt Resolution R2025-064. Budget Impact: The cost of the materials procurement is $341,660.00. This work is budgeted in the 2025- 2029 Capital Improvement Plan and will be funded by the MN DNR Outdoor Recreation Grant. Attachments: 2025-05-07_MATERIALS PROCUREMENT- MINNESOTA RIVERBANK PLANS.pdf Resolution R2023-084 AWARD.pdf R2025-064.docx 18 0 0 CITY OF SHAKOPEE z aw m� CC wD CC UJ QQ 0 z () CC w Q z z z w O N 0 L.L � m N Q � Q O Z Irl`/ w N 0O C9 s- w~ z z� 8z W Q 0 z cC Q JO Q � pC U w w < 0 � oC 41, orno ' il�iu l 111 li IIII IFl1 " ii r,ill b (loop Illo y III � llIplOPIP„.IIII ��� �IIIIIII � �, II� IIII Iwll�l IIloOlI III�II"uHm nn� y I� �� III I �� II��C VII �'. d b' II NNNI�Nd� � ��I III�� NI I� N'IIip p." In.I III 00 I NV DI I, l'illiii.1„I II'iIII �.., �w '.11�VI .IIIIII��hl II �11111111111u � �I�rv�;I,I��uilz�µN�llO�lu�,�„IuNN�N�Ib��V�V�u�l II Illilli WIvo m IIn,,IIWI�N ,I iiiM1� I. N ph'I PPA'�I�I III�VIIIIu�V�' ll '0 III �11� ' , • III Hi WN' y 4 III ��IIIII �iI III �Io� 1p b� >1, II I'llillilliIIIIIIIIIIi'l",,"?',,i'll'ih,u'l,ril,Inu'll, lll� .N IlIIIIIIr�l 'n IBIIN nlyuu I IV , f I I p' I nml ,.. I �IIIII � uul�' �� i L IIII, I g o 0I lltil!IIIII,II,I'll'I','!:I'''!;1?''I'll'i ip a °YW0 � 'III I 11 uulu liIli d yuI IIIIIIIIIIII...�Millilt Ili[IIIy�����,�, VI ,llal' ll �lil�,,l il {IN 111111 Ipuu I, I III I NM +� 'Ill l (IIII I NIA �.,, II III I if I IIDIDOll!il p„ II� II grow A CITY OF SHAKOPEE, MINNESOTA MINNESOTA RIVERBANK PROTECTION AND PARKS INTEGRATION TITLE SHEET oz I -w mitt o" ACCESSORIES, CONT'D ENGINEERING DRAWINGS. REDUCE SCALES BY 2 FOR ) O SCOPE OF WORK $ \ INSTALLATION OF THE PROVIDED MATERIALS WILL BE BY OTHERS QUALITY ASSURANCE 18 INCHES BEYOND THE ENDS OF WALKING RS SHALL RE ROUND SCHEDULE 40 PIPE. SIZE OF PIPE IS DEPENDENT UPON LENGTH AND AFETY GUARD RAILS SHALL BE CONTINUOUS 1.25 INCH O.D. ROUND TUBE WITH 1UM CLEAR OPERAS OF 4 INCHES. ACCESSORIES GWA :\\\ hAp ,«:_ iffiffilIWTH MINNESOTA RIVERBANK PROTECTION AND PARKS INTEGRATION GENERAL NOTES O C T,,T,L U I U U L _ +„T,6 ADA BOARDING STEPS/HANDLE TAPERED/RAMPED SECTION U MINNESOTA RIVERBANK PROTECTION AND PARKS INTEGRATION GANGWAY & LAUNCH DETAILS w CE Mott +„Z-TZ Odd ST ES SOES.92,, HP, PH HHHH.04,0VH,H9HHIZIOHAVHS H RESOLUTION R2023-084 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE MN DEPARTMENT OF NATURAL RESOURCES' OUTDOOR RECREATION GRANT AWARD AGREEMENT WHEREAS, the City of Shakopee applied to the MN Department of Natural Resources (DNR) grant, previously approved via Resolution R2023-037 on 2152 day of March 2023, and WHEREAS, the grant award is to provide funding for the development of the Sweeney's Marina Park project, and WHEREAS, the City of Shakopee was awarded the MN Eats grant for $350,000, and WHEREAS, the City of Shakopee recognized a 50% match was required. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: the City of Shakopee recognizes it has been awarded a grant by the MN DNR. The City of Shakopee agrees to accept the grant award and authorizes the City Administrator to execute any grant contracts and agreements for the above -referenced project. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 18th day of July 2023. /e at Lehman, Mayor of the City of Shakopee ATTEST: Lori Hens City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 24 RESOLUTION R2025-064 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA ACCEPTING BIDS AND AWARDING A CONTRACT IN THE AMOUNT OF $341,660 TO THE DOCK DOCTORS, LLC, FOR THE MATERIALS PROCUREMENT FOR THE MINNESOTA RIVERBANK PROTECTION AND PARKS INTEGRATION — MARINA EQUIPMENT WHEREAS, pursuant to an advertisement for bids for the Materials Procurement for the Minnesota Riverbank Protection and Parks Integration — Marina Equipment, bids were received, opened on May 29, 2025, and tabulated according to law, and the following bids were received complying with the advertisement: Bidder THE DOCK DOCTORS, LLC TOPPER INDUSTRIES I LLC Amount $ 341,660.00 $ 456,538.00 WHEREAS, The Dock Doctors, LLC, 19 Little Otter Ln, Ferrisburgh, VT, 05456, is the lowest responsive bidder for the Materials Procurement for the Minnesota Riverbank Protection and Parks Integration — Marina Equipment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: 1. The appropriate City officials are hereby authorized and directed to enter into a contract with The Dock Doctors, LLC in the name of the City of Shakopee for the Materials Procurement for the Minnesota Riverbank Protection and Parks Integration — Marina Equipment according to the plans and specifications on file in the office of the City Clerk. 2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted in regular session of the City Council of the City of Shakopee, Minnesota, held this 3rd day of June 2025. Mayor of the City of Shakopee ATTEST: City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 25 Shakopee City Council 5.f OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Authorize the submittal of Letter of Support for the University of Minnesota Center for Transportation Studies' Safe Streets and Roads for All (SS4A) grant application Alex Jordan, City Engineer Action to be considered: Authorize staff to submit a Letter of Support to the University of Minnesota Center for Transportation Studies for its application to the Safe Streets and Roads for All FY25 grant program. Motion Type: Simple Majority Background: The University of Minnesota Center for Transportation Studies' plans to submit an application for the Safe Streets and Roads for All (SS4A) FY25 grant program to conduct Supplemental Planning and Demonstration projects. The project's goal is to help bring advanced safety technology to Minnesota communities through evidence based, rigorously tested demonstration. As a past recipient of an SS4A grant, the City of Shakopee was asked to participate in this multijurisdictional grant application, which will be a collaborative effort with other SS4A communities. Participating in this proposal will allow the city to compare safety approaches and results along with the most effective safety countermeasures and technologies with other jurisdictions throughout the state. Recommendation: Authorization as requested. Budget Impact: In exchange for providing a portion of the financial cost share required for this grant, the City plans to devote in -kind staff time to support this project. Engineering staff anticipate spending approximately 20-40 hours during the collaborative period and up to 100 hours of time if Shakopee is identified as the site of a potential demonstration project. 26 Attachments: 27 Shakopee City Council 5.g OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Adopt a Resolution of Support for the Downtown Quiet Zone 2026 State Capital Budget Request Alex Jordan, City Engineer Action to be considered: Adopt Resolution R2025-068, Supporting the City's submittal of a 2026 State Capital Budget request for the Downtown Quiet Zone Improvements. Motion Type: Simple Majority Background: Increased rail traffic in recent years has brought with it higher volumes of train horn noise and more frequent delays for motorists at crossings. As downtown Shakopee continues to redevelop - with growing numbers of residents, businesses, and visitors - that constant sounding of train horns, particularly in the evening and overnight hours, has become a significant public nuisance. Due to the proximity of multiple crossings, the horns often sound continuously across a six -block stretch, disrupting the area's livability and vitality. Beyond the quality -of -life benefits, the project will also serve as a catalyst for economic development in our downtown. Reducing noise pollution in targeted redevelopment areas will help increase property values, attract new investment, improvement business retention, and enhance the overall appeal of our community to residents and visitors alike. The Quiet Zone project aligns with the goals of Envision Shakopee 2040, supporting downtown revitalization, sustainable growth, and long-term infrastructure improvements that benefit the broader region. In order to establish the Quiet Zone, the City must construct certain rail crossing improvements at crossing. The specific project improvements include upgrading the existing rail crossing measures along the UPRR mainline rail corridor extending from Fuller Street to Shenandoah Drive in Shakopee. This corridor includes 10 existing public street rail crossings. Currently, the majority of the crossings consist only of flashing warning lights, painted stop bars and train horn as trains approach the crossing (three 28 crossings include gates). Options for the rail crossing improvements that will be considered include: • Potential street closures eliminating crossings • Basic crossing upgrades, including gates, flashing lights and constant warning time train detection (CWT) - required at each crossing • Non -traversable medians and channelization devices • Four -quadrant gates that block both the approach and departure side of the roadway • Increase train speed limit to 25 mph The full scope of the improvements will be based on the funding available, but at a minimum, the improvements must include countermeasures that meet specific safety criteria. Local funding for the rail crossing improvements is not programmed in the current adopted 2025-2029 five-year Capital Improvement Plan (CIP). In addition to this Capital Budget Request, the City has previously requested state funding for these improvements be included in the State Transportation Bill, and federal funding through the 2026 Congressionally Directed Spending and Community Project Funding requests. State and federal funding would enable the city to install the safety improvements required to implement a Quiet Zone, eliminating the routine horn use while maintaining compliance with federal rail safety standards. Recommendation: Adopt Resolution R2025-068. Budget Impact: Minnesota State Statutes 16A.86 Subd. 4(a) require that the state share of the project must be no more than half the total cost of the project, including design and construction. Based on these statutes, the City would be required to provide a 50% match for the state funds, which would either be from federal funding (if acquired) or from local Capital Improvement Funds (CIF). If the City is able to secure state or federal funds, the project would be programmed in an upcoming CIP to establish the construction year and the required funding match. Attachments: Resolution_R2025-068.docx 29 RESOLUTION R2025-068 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY TO SUBMIT A 2026 STATE CAPITAL BUDGET REQUEST WHEREAS, the City of Shakopee supports the submittal of a request to be in included in the State of Minnesota's 2026 Capital Budget. WHEREAS, the request is to obtain funding to construct rail crossing improvements necessary to establish a Quiet Zone in Shakopee along the United Pacific Railroad (UPRR) mainline rail corridor extending from Fuller Street to Shenandoah Drive, and WHEREAS, the City of Shakopee recognizes a 50% match is required. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: if the City of Shakopee's Quiet Zone improvements are included in the 2026 Capital Budget, the City of Shakopee agrees to accept the funding. The City of Shakopee will comply with all applicable statutes, Capital Budget Requirements, laws, and regulations as stated in the Capital Budget Instructions. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this 3rd day of June 2025. Mayor of the City of Shakopee ATTEST: City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 30 Shakopee City Council 5.h OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Authorize Execution of a Construction Cooperative Agreement with MnDOT for the Marystown Road Corridor Improvement Project Micah Heckman, Assistant City Engineer Alex Jordan, City Engineer Action to be considered: Adopt Resolution R2025-065, Authorizing the Execution of a Cooperative Construction Agreement for the Marystown Road/TH 169 Interchange and Trail Improvement Project, CIF -23-004. Motion Type: Simple Majority Background: The City's adopted 2025 Capital Improvement Plan (CIP) programs the construction of the Marystown Road Corridor Improvements Project, CIF -23-004 (see attached CIP Sheet). The City Council approved the plans and advertisement for bids on May 6, 2025. A public bid opening will occur in July 2025, and City Council consideration of the bid award is anticipated August 2025. Trunk Highway 169 is under the full jurisdiction of the Minnesota Department of Transportation (MnDOT). The Construction Cooperative Agreement with MnDOT will permit the City of Shakopee to construct roadway and bridge improvements, bituminous trails, storm sewer, lighting and associated appurtenances within the state highway right- of-way. The recommended Cooperative Construction Agreement will codify the initial construction and ongoing maintenance responsibilities of each agency, similar to and consistent with the many other City and MnDOT agreements. Recommendation: Adopt Resolution R2025-065. Budget Impact: The project is budgeted in the 2025-2029 CIP and will be funded by the Capital Improvement Fund, Storm Drainage Fund and State and Federal Grant funds. 31 Attachments: CIF -23-004 RES-R2025-065.docx 32 2025 thru 2029 Capital Improvement Plan Shakopee, MN Project # Project Name CIF -23-004 Marystown Rd/TH 169 Interchange & Trail Imp Total Project Cost $8,425,000 Type Improvement Priority 1 - Have to do Useful Life 30 years Fund Capital Improvement Fund Description Department Capital Improvements Fund Category Street Construction Status Active Accounting Code 5894/6894 Project Code CI2304 Interchange, intersection and access control improvements to improve safety and construct trail connections along Marystown Road/Adams Street from TH 169 NB ramps to Vierling Drive. A corridor study was performed in 2020 that is attributed to the prior expenditures for the project. Justification Improvements to the interchange are for vehicle safety and to provide safe pedestrian crossings of the Marystown Road bridge over TH 169. Intersection and access control improvements are needed to address increased traffic issues and existing access control issues at Hy-Vee. The city has been awarded $3,723,000 from the Regional Solicitation program for construction in 2025 and $1,430,800 from the Local Road Improvement Program (LRIP) in 2024. Prior 620,000 Construction/Maintenance Engineering/Administration Expenditures Funding Prior Sources 620,000 Cost Sharing,MnDOT/Federal Capital Improvement Fund Grants Storm Drainage Fund Total Total 2025 2,900,000 392,500 3,292,500 2026 4,120,000 392,500 4,512,500 2027 0 0 2028 0 0 2029 0 0 Total 7,020,000 785,000 7,805,000 2025 987,700 997,200 987,600 320,000 512,000 3,292,500 4,512,500 2026 2027 2028 2029 2,735,300 0 0 0 822,000 0 0 0 443,200 0 0 0 0 0 0 Total 3,723,000 1,819,200 1,430,800 832,000 7,805,000 Budget Impact The project was awarded $3,723,000 from the Metropolitan Council 2022 Regional Solicitation Project Selection which is programmed for 2025. Staff will continue to explore additional funding opportunities. Produced Using Plan -It CIP Software 44 33 2025 thru 2029 Capital Improvement Plan Shakopee, MN Project # Project Name CIF -23-004 Marystown Rd/TH 169 Interchange & Trail Imp Ii 11, n iiiiillllVp�l�IIII iii l „ AlIteg uiu 1 P"7�1 III hioilli y i /yr/ /,/ Department Capital Improvements Fund e# y i" / 34 Produced Using Plan -It CIP Software 45 RESOLUTION R2025-065 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA AUTHORIZING THE EXECUTION OF A COOPERATIVE CONSTRUCTION AGREEMENT FOR THE MARYSTOWN ROAD/TH 169 INTERCHANGE & TRAIL IMPROVEMENT PROJECT, CIF -23-004 WHEREAS, an Agreement will be created by the State of Minnesota, acting through its Commissioner of Transportation (State) and the City of Shakopee, acting through its City Council (City), NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: 1. The City of Shakopee will enter into MnDOT Agreement No. 1058587 with the State of Minnesota, Department of Transportation for the following purposes: to allow for construction and to provide for definition of maintenance responsibilities between the State and the City for the roundabouts and other associated construction to be performed upon, along and adjacent to Trunk Highway No. 169 within the corporate City limits under State Project No. 7005-145. 2. The Mayor and the City Engineer are authorized to execute the Agreement and any amendments to the Agreement. Adopted in regular session of the City Council of the City of Shakopee, Minnesota, held this 3rd day of June 2025. Mayor of the City of Shakopee ATTEST: City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 35 Shakopee City Council 5.i OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Accept a Proposal from WSB for Construction Services for 2025 Private Development Projects Alex Jordan, City Engineer Action to be considered: Accept a proposal for professional services from WSB, LLC in the amount of $267,838.00 for construction observation and inspection services for private development improvements. Motion Type: Simple Majority Background: WSB has assisted the City since 2022 in providing construction inspection services for private development projects. WSB's scope of services in the proposal includes providing similar inspection services for the 2025 construction season. The 2025 proposal includes an additional task of providing public tree planting oversight to ensure trees in the public right-of-way are planted and maintained consistent with the City's Forestry Manual Specifications. WSB's proposal is subject to the Master Agreement for Professional Consulting Services between the City and WSB dated August 7, 2024. Recommendation: Accept the proposal. Budget Impact: WSB's proposal to complete the construction services for the 2025 construction season is based on a not to exceed amount of $267,838. Funding for these services is paid for by engineering fees collected with private developments. Attachments: Shakopee Development Proposal 2025.pdf 36 May 28th, 2025 Alex Jordan, PE City Engineer City of Shakopee 485 Gorman Street Shakopee, MN 55379 RE: Shakopee 2025 Development Inspections Dear Mr. Jordan, WSB is excited about the opportunity to present this scope of work and deliverables for construction services for the Cities Development Projects. The scope of work WSB will provide are the staff and services as necessary to meet the expected outcomes of this contract, which include the following tasks: • Construction Observation and Inspection • Tree Planting Oversight and Inspection Deliverables and responsibilities provided for each of the above tasks are described in the Project Approach/Scope of Services below. The intent of the scope is to outline the major tasks required for this project and highlight areas of importance that are needed to complete the requested services. The scope does not list all responsibilities to be performed. PROJECT UNDERSTANDING The Development projects consist of new underground utilities including sanitary, watermain and storm sewer. They also consist of street grading, curb and gutter, and paving installation. Construction is ongoing currently. 0 C PROJECT APPROACH/SCOPE OF SERVICES A. Construction Observation and Inspection WSB will provide Construction Observation and Inspection services through construction of the project and final project closeout. This task will include: • Record all construction activities daily, making a complete and accurate record of all events. • Communicate regularly with involved stakeholders to keep them informed regarding the impact of construction to the area, including neighbors, businesses, and local agencies. • Ensure construction practices and materials used on site are compliant with project specifications. • Perform daily reviews of construction signing and construction traffic control maintenance. • Communicate regularly with the Project Manager, Contractor, City, SPUC and involved stakeholders. • Perform reviews of temporary and permanent erosion control measures on the project for compliance with applicable permits and specifications. • Provide services required under this contract as necessary to accommodate the contractor's schedule and needs. 37 MI r. Alex Jordan May '2,Bt.lh, 2025 Page l • Exercise the "Authority and Duties of the Inspector" as necessary. B. Tree Planting Oversight and Inspection WSB will provide public Tree Planting Oversight and Inspection services from pre -planting to the final two-year warranty final inspection. This task will include: • Meet with Developers and/or their Landscaping representatives for pre -work meetings and attend meetings when requested by the city staff • Review plan sets to become familiar with trees planned for the development • Inspect all available tree stock on planting day, talk with planting contractor, and observe 2-3 trees planted in the development. Return to inspect each planted tree to ensure it meets project and Shakopee Forestry Manual specifications • Inventory each tree within a week after planting, using Shakopee's schema and Field Maps, using an Arrow 200 for sub -foot accuracy. o Species, condition rating, inspection date, and photo will be included • Return to each tree to perform a 2 -year warranty inspection o Update condition rating, inspection date, and attach a final photo o Recommend approval or rejection in Field Maps drop -down menu o Document all factors for rejection using Field Map drop -down menus and notes • Communicate regularly with the Project Manager, Contractors, City, and involved stakeholders. • Provide services required under this contract as necessary to accommodate the contractor's schedule and needs. PROPOSED FEE The estimated cost proposal we are providing is based on the contract documents and anticipated schedule for the work. A better understanding of the level of effort needed will be realized once the contractor presets their approach to the work. WSB will provide the services as outlined in Project Approach/Scope of Services. Our budget was developed based on our understanding of the scope and experience with the 2022, 2023, and 2024 development projects. The full Cost Estimate is provided on page 3 of this document. The estimated cost of this project is $267,838.00. All travel time is included in the estimated fee. The proposed scope and fee presented herein represents our complete understanding of the project based on site visits and work performed. If you have any questions or concerns, please feel free to contact me at (763) 286-6141. Once again, we appreciate the opportunity to submit this proposal and look forward to working with you and your staff. Sincerely, WSB Craig Albe4 PE, Director, Construction Services Metro Attachments ACCEPTED BY: 38 MI r. Alex Jordan May '2,3V.Ih, 2025 Page 3 City of Shakopee By: Date: By: Date: Matt Lehman, Mayor Willaim Reynolds, City Administrator 39 ►�I CA • i1V ►�1 5 • 0 01,4 ^, W A yy C O � � cf) • - tn co N V) O (/) • g h C C...) O O N a M m N 69 ' $234,910.00' O O O O1 n ff3 O O \D r h M 69 O O GO m n S `.= N 69 Total Hours o Ln 7 N LLLI Tree Inspector 71- d" Tree Inspector N M N M Project Inspector 1540 40 24 O Project Manager Trees OC. M CG M Project Manager Construction ' I 25 O\ M WORK TASK G c C ci o`i 'PROJECT MANAGEMENT Project Management (2 hours a month) CONSTRUCTION INSPECTION SERVICES Construction Inspection Punchlist / Final Inspection Record Plan Measurements 'Assume 28 weeks construction inspection, 5 days per week, it hours per day I Total Hours O S N O S O co, co, O N O OC N Ftj 6R 07 N vj WSB SALARY COSTS Co CoO N TOTAL CONSTRUCTION SERVICES PROJECT COST oo N TOTAL PROJECT COST 40 Shakopee City Council OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Approval of the City Council Meeting Minutes for May 20, 2025 Rick Parsons Action to be considered: Approve the City Council meeting minutes for May 20, 2025. Motion Type: Simple Majority Background: N/A. Recommendation: Approve the requested motion. Budget Impact: N/A. Attachments: City Council Minutes 05-20-2025.pdf 5.j 41 City Council City Hall 485 Gorman Street Shakopee, MN, 55379 Tuesday, May 20, 2025 7:00 p.m. Vision: Shakopee is a place where people want to be! A distinctive river town, with a multitude of business, cultural and recreational opportunities in a safe, welcoming, and attractive environment for residents and visitors. Mission: Our mission is to deliver high quality services essential to maintaining a safe and sustainable community. We commit to doing this cost-effectively, with integrity and transparency. 1) Call to Order 2) Roll Call PRESENT: Mayor Lehman, Council Member Contreras, Council Member Whiting, Council Member DuLaney, and Council Member Lara ABSENT: None. ALSO PRESENT: None. 3) Pledge of Allegiance 4) Approval of Agenda Council Member Lara made a motion to approve the Agenda with the modification of pulling item 8.a from consideration, second by Council Member Contreras and the motion passed. 5 - 0 5) Consent Agenda 5.a) Monthly Financial Review - April 2025 1.42 5.b) Monetary Limits on Tort Liability for League of Minnesota Cities Insurance Trust 5.c) Surplus Property 5.d) Minnesota Department of Transportation Safe Routes to School Infrastructure Grant Awards 5.e) CenterPoint Energy's Community Safety Grant Program Application 5.f) Approval of the City Council Meeting Minutes for May 6, 2025. 5.g) 2025 Sanitary Sewer and Storm Sewer Televising 5.h) Stagecoach ID131 Control Panel Replacement 5.i) Gambling Premise Permit for Shakopee Dollars for Scholars 5.j) Approve a Special Event Permit and Temporary Liquor Licenses for the Shakopee Chamber of Commerce 5.k) Approve 3.2 On -Sale, Wine and Sunday Liquor Licenses for Joe Schleper Stadium Fund Council Member Whiting made a motion to approve the Consent Agenda, second by Council Member DuLaney and the motion passed. 5 - 0 6) Public Comment 7) Business removed from consent agenda 8) General Business 8.a) Final Plat of Bluff View - (item pulled from consideration) 9) Reports 9.a) City Bill List 10) Other Business 11) Adjourn to June 3, 2025 at 7:00 p.m. Council Member Lara made a motion to adjourn to June 3, 2025 at 7:00 p.m., second by Council Member Whiting and the motion passed. 5 - 0 Shakopee City Council 5.k OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Approve a Tobacco License for Northstar Regional Men's Treatment Center Heidi Emerson, Deputy City Clerk Action to be considered: Approve a tobacco license for Northstar Regional Men's Residential Treatment Center, located at 1250 Lincoln Street. Motion Type: Simple Majority Background: Staff has received an application for a tobacco license for Northstar Regional Men's Treatment Center, located at 1250 Lincoln Street. The application is in order and the fees have been paid. The Police Department has conducted a background investigation and found nothing that would prohibit issuance of the license. Recommendation: Approve the above requested motion. Budget Impact: none. Attachments: 44 Shakopee City Council 10.a OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: 2024 Annual Comprehensive Financial Report, Audit Presentation and Review by Abdo Nate Reinhardt, Finance Director Action to be considered: Accept the 2024 audit and accompanying reports, as presented by the audit staff from Abdo. Motion Type: Informational only Background: Annually the City of Shakopee's financial staff and Abdo's audit staff undertake an extensive audit process of City financial information. The City received an unmodified opinion, which is commonly referred to as a "clean audit opinion." This means that, in the auditor's opinion, the financial statements conform with applicable accounting standards. In addition to formulating an opinion on the City's financial statements, the auditors reviewed the City's internal controls, legal compliance and financial management practices. Those results were included in the special purpose report which is issued under a separate cover. Overall, the information in the 2024 Annual Comprehensive Financial Report continues to show the City is in excellent financial condition and should continue to monitor itself to ensure its continued fiscal good health. The audit results, Annual Comprehensive Financial Report, and accompanying data will be presented and discussed at the June 3, 2025 meeting by Bonnie Schwieger, Partner with Abdo. Recommendation: 45 Accept the 2024 Annual Comprehensive Financial Report as presented. Budget Impact: The 2024 financial report conveys the fiscal condition of the City as of December 31, 2024 and lays the groundwork for understanding the financial resources available to the city when planning for the future. Attachments: 2024 City of Shakopee ACFR.pdf 2024 FINAL Executive Governance Summary.pdf 2024 FINAL Other Required Reports.pdf Governance Audit Communication Letter.pdf 2024 FINAL Audit Presentation.pdf 46 Ann al COMPREHENSIVE FINANCIAL REPORT For the fiscal year ended December 31, 2024 Ribbon cutting at the Fitness Court in Scenic Heights Park, July 2024. 9l"itllulVp'!' ii�l'iumm6mtlplVlVlll���'ym ill,111,111,111,1111111111,1111,1,1111,111,1,1,1,1,111111,11111,1,11111111,1,1,1,1,1,1,1,111,1,111,111111111111111111111111,11,1111111,111,111111 �6iu911R° II RI�IiIVl�ll�" ,„�;"maYTWIiIN,N� • INNOVATING. ENTERTAINING. THRIVING. City of Shakopee I 485 Gorman St., Shakopee, MN 55379 952-23.3-9.3001 www..ShakopeelVIN.gov SHAKOPEE III rem3mmmumli��iiuIIIIIG iugpril'llllip 47 CITY OF SHAKOPEE, MINNESOTA Scott County ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended December 31, 2024 Department of Finance Nathan Reinhardt, Director of Finance Melissa Schlingman, Accounting Manager 485 Gojinan Street Shakopee, MN 55379 48 CITY OF SHAKOPEE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2024 TABLE OF CONTENTS SECTION I Page INTRODUCTORY SECTION Elected Officials and Administration 1 Organization Chart 2 Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 11 SECTION II FINANCIAL SECTION Independent Auditor's Report 13 Management's Discussion and Analysis 16 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position 32 Statement of Activities 34 Fund Financial Statements: Balance Sheet — Governmental Funds 36 Reconciliation of the Balance Sheet to the Statement of Net Position — Governmental Funds 37 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds 38 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities — Governmental Funds 39 Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — General Fund 40 Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Economic Development Authority Special Revenue Fund 41 Statement of Net Position — Proprietary Funds 42 Statement of Revenues, Expenses and Changes in Net Position — Proprietary Funds 43 Statement of Cash Flows — Proprietary Funds 44 Statement of Fiduciary Net Position 46 Statement of Changes in Fiduciary Net Position 47 Notes to the Financial Statements 48 49 CITY OF SHAKOPEE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2024 TABLE OF CONTENTS (CONTINUED) SECTION II (Continued) FINANCIAL SECTION Required Supplementary Information: Schedule of City's Proportionate Share of Net Pension Liability General Employees Retirement Fund 108 Schedule of City's Proportionate Share of Net Pension Liability Public Employees Police and Fire Retirement Fund 109 Schedule of Component Units' Proportionate Share of Net Pension Liability General Employees Retirement Fund 110 Schedule of City Contributions General Employees Retirement Fund 111 Schedule of City Contributions Public Employees Police and Fire Retirement Fund 112 Schedule of Component Unit Contributions General Employees Retirement Fund 113 Schedule of Changes in the City's OPEB Liability and Related Ratios 114 Notes to Required Supplementary Information 116 Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General Fund 126 Combining and Individual Fund Financial Statements and Schedules: Combining Balance Sheet — Nonmajor Governmental Funds 128 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds 134 Combining Statement of Net Position — Internal Service Funds 140 Combining Statement of Revenues, Expenses and Changes in Net Position — Internal Service Funds 141 Combining Statement of Cash Flows — Internal Service Funds 142 50 CITY OF SHAKOPEE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2024 TABLE OF CONTENTS (CONTINUED) SECTION III STATISTICAL SECTION Financial Trends: Net Position by Component 1 146 Changes in Net Position 2 148 Fund Balances — Governmental Funds 3 150 Changes in Fund Balances — Governmental Funds 4 152 Revenue Capacity: Tax Capacity and Estimated Actual Value of Taxable Property 5 154 Direct and Overlapping Property Tax Rates 6 155 Principal Taxpayers 7 156 Property Tax Levies and Collections 8 157 Debt Capacity: Ratio of Outstanding Debt by Type 9 158 Ratio of General Bonded Outstanding 10 159 Direct and Overlapping Governmental Activities Debt 11 161 Legal Debt Margin Information 12 162 Demographic and Economic Information: Demographic and Economic Statistics 13 164 Principal Employers 14 165 Operating Information: Full -Time Equivalent City Government Employees by Function/Program 15 166 Operating Indicators by Function/Program 16 168 Capital Asset Statistics by Function/Program 17 170 51 CITY OF SHAKOPEE ELECTED OFFICIALS AND ADMINISTRATION DECEMBER 31, 2024 Elected Officials Matthew Lehman Angelica Contreras Jim DuLaney Jesse Lara Jay Whiting Administration William H. Reynolds Chelsea Petersen Nathan Reinhardt Michael Kerski Jeff Tate Mike Nelson Alex Jordan Bill Egan Kelsi McNutt Position Mayor Council Member Council Member Council Member Council Member City Administrator Assistant City Administrator Finance Director Director of Planning & Development Police Chief Fire Chief City Engineer Public Works Director Park and Recreation Director Term Expires December 31, 2026 December 31, 2026 December 31, 2026 December 31, 2028 December 31, 2028 1 52 CITY OF SHAKOPEE ORGANIZATION CHART DECEMBER 31, 2024 Citizens City Council Department'. saf Administrations 4:dis t City Admilnll Communications Department tiR Division IT Division City Clerk H inFacility ltlallmenlance Chrision Grant & Special Project Co4Mdlnaitor Finance Department Planning Conmrnilssion/acerd of Adjustments and AppeallS Shakopee IP iblllc I.Itilities (SPUN Police Civil Se MICe Commission. City Adeolln05ttatce Directorof Planning & Development Engineering Department Pllanlniing Division Building Inspection Dvisiion. Econlomnlic'. Development Public Works Department. Park & Recreation Department. H Street Maintenance Division „hits Maintenance Division Flleea Divisi� Salnitalry Sewer Division H Storm Drainage Dilsion 2 53 May 15, 2024 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Shakopee: The Annual Comprehensive Financial Report for the City of Shakopee, Minnesota, for the fiscal year ended December 31, 2024, is submitted herewith: Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. The costs of internal control should not exceed anticipated benefits and therefore the object is to provide reasonable rather than absolute assurance that the financial statements are free from material misstatement. The City of Shakopee's financial statements have been audited by Abdo, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the city for the year ended December 31, 2024, are fairly presented in conformity with GAAP (generally accepted accounting principles). Based on the audit, the independent auditor concluded that there is reasonable basis for rendering an unmodified (clean") opinion on the city's financial statements for the year ended December 31, 2024. The independent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used; significant estimates made by management; as well as evaluation of the overall financial statement presentation. The independent auditor's report is presented as the first component of the financial section of this report. Management Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Profile of the City The City of Shakopee was incorporated for the second time in 1870 and is located approximately 25 miles southwest of Minneapolis. Bound by the Minnesota River on the north, Shakopee is in the northern part of Scott County and is the county seat. In recent years, the city has been one of the most rapidly growing communities in the state. The 2000 population of the city was 20,568 and the land area covered is approximately 30 square miles. The 2020 census confirmed that the population had increased to 43,698 and is expected to continue to grow to 53,000 in 2030. The city comprises a unique blend of residential, commercial and industrial properties, which provides a wide range of opportunities that are the result of the strong economic health of the community and region. The city levies a property tax on both real and personal property located within its boundaries except for land owned or controlled by the Shakopee Mdewakanton Sioux Community (SMSC), a Federally recognized Native American Tribe. The city may also by state statute, extend INNOVATING. ENTERTAINING. THRIVING. City of Shakopee 485 Gorman St., Shakopee, MN 55379 Phone: 952-233-9300 Fax: 952-233-3801 www.ShakopeeMN.gov its corporate limits by annexation, which historically has occurred periodically. The city has an executed an orderly annexation agreement with Jackson Township that will allow the city to actively annex certain portions of the township as market forces dictate. Shakopee is organized in Minnesota under Plan A, which includes a City Administrator, but the City Council retains primary decision -making authority such as policy setting, adopting ordinances and budget and staffing. The City Council has four members plus the Mayor who serve staggered terms of four years. All council positions are non-partisan, part-time and members are elected at large. The city provides typical municipal services such as police and fire protection, street and infrastructure construction, public works maintenance, parks, recreation, planning and zoning. Also provided are utilities such as sewer and stoiin drainage utilities, organized refuse collection, and recycling. Electric and water utilities are operated by Shakopee Public Utilities Commission which is appointed by the City Council but operates independently of the City of Shakopee. Economic development and redevelopment are controlled by the Shakopee Economic Development Authority (the Authority). The Authority is comprised of the Mayor and City Council members and is included as an integral part of the city's report. The economic development activities of both staff and Council continue to increase from past years, as the strong economic climate in the region has provided the city with the benefit of planned commercial and industrial growth as well as expansion of several existing businesses and commercial sites. 2025 activity has already confirmed that the continuation of the growth trend will carry into the current year, as the valuation of building permits for the first quarter of 2025 was $74.3 million. Included in the first quarter 2025 valuation is 45 single-family home building permits. This number is expected to increase as additional phases of existing housing developments come online in 2025. The annual budget is the basis for the city's financial planning and control. The budget is prepared by fund (e.g., General), function (e.g., Public Safety) and division (e.g., Fire). Major budget requests or initiatives are submitted in July by department directors. The City Administrator reviews the submittals with the Finance Director and department directors to determine the prioritization of specific budget requests. The City Council is presented with a proposed budget and a maximum tax levy in September of each year. This information succinctly details changes in the upcoming year budget, such as changes in personnel and position structure. It also includes funding requests that are unique to the specific budget year, the basis for the request, as well as requests for transfers and internal funding needs, such as internal service fund reviews. The City Council is required to adopt a maximum tax levy by September 30. The final tax levy and budget are adopted in December after a public meeting, which provides the City Council and community impact information relating to both the budget decisions and property tax levies. Final 55 4 levy information is submitted to the County for inclusion in the development of the upcoming year property tax statements. Budgeting control is provided by an annual budget resolution passed by City Council. Formal control is at the division level and Council action is necessary to change budgeted amounts between divisions and/or funds. The Finance Director or City Administrator may make changes within divisions. Along with the operating budget, the city annually prepares a detailed five-year capital improvement plan (CIP), 15 year capital improvement schedule, and a long-term financial plan. These documents are the basis for the long-term goal of providing and maintaining a functional public facility program, that provides the residents and businesses with infrastructure and equipment necessary for the on -going growth and development. The capital plans have historically provided details on the infrastructure projects and capital equipment that are funded through property tax levy, franchise taxes, special assessments, utility user -fees and other intergovernmental revenue sources. These projects primarily allow for the upgrade, expansion and coordination of transportation -based needs, as well as trails, signals and other infrastructure improvements. The City Council also reviews, discusses and approves the park planned improvements that are funded through the Park Development fund, which provides for the use of park and community facilities that have historically been funded through the collection of Park Dedication fees. The capital plans are reviewed with the Council and city staff, and the funding sources and priorities developed for the annual and future budget practices. The city also maintains several internal service funds including equipment, park assets, information technology, buildings and self-insurance. The funding for this program is through the internal service fund rate charges, which are determined by departmental use, replacement plans and determination of the remaining life. These charges are integrated into the individual budgets of the General fund and departments that are benefitted by the activities of the programs. Funds are accumulated over time to ensure adequate funding is available when equipment and facilities are scheduled to be replaced. The Internal Service funds continue to be reviewed and updated as community needs and council directives are considered during each budget cycle. Local Economy Shakopee is the county seat of Scott County, and it abuts the largest county in the region, Hennepin County. Shakopee continues to benefit from its strategic location within the metropolitan region, as well as its direct access to TH 169, which connects the city to other major regional roadways, the MSP International Airport, and major employment centers. The city is also at the heart of regional attractions which includes ValleyFair, Canterbury Park horse racing track, Mystic Lake and Little Six casinos, the Minnesota Renaissance Festival and will soon be joined by a 19,000 -seat amphitheater. These and other factors have propelled the city through a period of strong and consistent growth that is likely to continue for years to come. The City's taxable market value is $8.44 billion for taxes payable 2025, which is an increase of $660 million or 8.5 percent from last year. New construction accounted for $250 million of the 56 5 increase in value. Residential housing makes up 45.0% of the 2025 tax capacity base. For the valuation used to calculate the 2025 property tax statements, the median value home in the City of Shakopee is $350,700 compared to $338,400 in the previous valuation. The following projects are anticipated to begin construction in the near future or are currently under construction in the City: Residential: • Arbor Bluff: Located south of Valley View Road and west of Independence Drive, Lennar is constructing 54 new homes in the first phase, with a total of 196 single-family lots in the full build -out. • Blakeley Apartments: 1600 Windermere Way, a 205 -unit market -rate apartment building by Roers Companies opened. • Canterbury Crossing: 1050 Schenian Street; a total of 152 residential units, 108 townhomes by Pulte Homes and Artessa in the northwest corner of Eagle Creek Boulevard and Schenian Street, and a 42 -unit senior co-op building by Lifestyle Communities at 2695 Paddock Path. The final phase of townhomes is under construction. • Countryside 3rd Addition: Located south of Lusitano Street and east of Marystown Road, consisting of 17 single-family residential lots by Donnay Homes, Inc. is under construction. • Gateway Townhouses: Located between Lincoln Street, Vierling Drive West, and Taylor Street, 43 units are under construction with first units renting in mid -2025. • Highview Park: South of 130th Street (CR78) and along Zumbro Avenue, a 172 single- family and twin -home residential subdivision (first phase of the overall 601 -lot development) by D.R. Horton. They have been building and selling faster than anticipated and will be completing the final phase in late 2025. • Jefferson Court: Intersection of 10th Avenue West and Adams Street South, to be used for the creation of eight single-family lots, which are under construction. • Legacy Central: The Scott County CDA broke ground on a 60 -unit senior apartment complex. • Omry Apartments: 2900 Winners Circle Drive, a 147 -unit luxury senior apartment building, opened. • Lennar Multifamily completed the 288 -unit Emblem apartment complex (12 buildings with 24 units each) at 1601 Emblem Way, located along the north side of 17th Avenue (CSAH 16), west of Canterbury Road/Mystic Lake Boulevard. The project is in the final rent up. • Summerland Place: North of 17th Avenue (CSAH 16), south of Hwy. 169, west of Canterbury Road/Mystic Lake Boulevard, and east of Balinese St. Construction continues on a mix of 300 single-family and townhome units over several phases by Summergate Development. David Weekly Homes purchased the remaining lots in the subdivision and is completing the build out. • Valley Crest: West of Mystic Lake Drive S and north and south of Thrush Street, M/I Homes are constructing 175 single-family homes on 56 acres. The second and third/final phases of the development are currently under construction. 57 6 • Whispering Waters: South of Eagle Creek Boulevard and west of Foothill Trail S, Brandl-Anderson, Key Land Homes, and One TenTen Construction are constructing a total of 134 single-family homes in two phases. Construction on the second phase began in the spring of 2024 and the development is in its final build out. • Windermere South 4th Addition: Approximately 53 acres of property located north of Astoria Dr. and west of Attenborough St. for a residential development creating 125 single-family lots that are under construction and nearing completion. • Windermere South 5th Addition: Approximately 72 acres of property located north of CSAH 78, west of Zumbro Avenue, and east of CR 69/Old Brick Yard Road to be used for residential development, with 158 single-family lots under construction. • Windermere South 6th Addition: Approximately 14 acres of property located north of CSAH 78 and west of Zumbro Avenue to be used for residential development, creating 43 single-family lots that are under construction. Commercial/Industrial: • Scott County CDA: Construction is constructing a new 21,000 sq. ft. office location. The building is located across from the Scott County Government Center at 5th Ave E and Holmes St S. • Affinity Plus Credit Union: A new, 2,400 sq. ft. credit union building was constructed at 1714 Crossings Boulevard, south of McCoy's Copper Pint for its new Shakopee offices. • Canterbury Amphitheater: Located east of Canterbury Park, the 19,000 -person amphitheater is under construction, with an opening scheduled for Spring 2025. The facility will be operated by Live Nation. • Canterbury Boardwalk and Stables: North of Shenandoah Drive, adjacent to the Canterbury Park racetrack, it is a 19,000 sq. ft. restaurant and event venue with an outdoor bar, patio, and game area under construction with an opening in mid -2025. • Canterbury Horse Barn Redevelopment: Located north of 12th Avenue East and west of CSAH 83, this project included new barns and four supporting facility buildings, remodeling of existing barns and dorms, construction of new dorms, reconfiguring the practice track, and architectural and structural engineering of the Stable Gate and Quarantine Barn. • Canterbury Starting Gate: A 9,600 sq. ft. building located north of Winners Circle Drive and east of Schenian Street in the Canterbury Southwest Development was constructed. It houses three tenants: Mr. Pig's Smokery restaurant, Discover Strength and OG ZaZa. • Dean Lakes Corporate Center: At 5201/5225 Dean Lakes Boulevard, speculative shell buildings of 226,000 sq. ft. and 136,000 sq. ft. were completed in 2024. The developer, Inland Development Partners, is marketing both buildings to prospective tenants. • Eagle Pointe Estates: This 140 -acre mixed -use development, on property owned by Shakopee Gravel, Inc. and Michael Hawkins, proposes 155 single-family residences, 110 attached townhomes, 74 detached townhomes, up to 534 apartment units, 174,000 sq. ft. of commercial/office/medical space, and approximately 24 acres of open space. A water treatment facility, to be owned and operated by Shakopee Public Utilities, is also proposed. The city council approved a Tax Increment Financing District, preliminary plat and PUD Zoning for this estimated $500 million development. 58 • Holiday / Circle K Gas Station: A 6,600 sq. ft. gas station, convenience store, and car wash was constructed at the southwest corner of Marystown Road and Windermere Way. • J & J Minneapolis: A 126,120 sq. ft. industrial building was constructed at 3750 4th Avenue E. It offers multiple industrial suites from 17,000 sq ft. to 126,120 sq. ft. • Saint Francis Ambulatory Surgery Center: A 43,600 sq. ft. outpatient surgery building, operated by Tria Orthopedics, was constructed at the northwest corner of Valley View Road E and Sarazin Street. • Southwest Logistics Center: The build -out of a 505,000 sq. ft. facility at 7400 Hentges Way, predominantly leased to Sam's Club, was completed. • Southern Valley Alliance: Completed their new HQ office building in downtown Shakopee. • GN Resound: Denmark -based international company manufactures hearing aids and Jabra speakers is relocating its North American hearing headquarters into the former Shutterfly facility at 5005 Dean Lakes Blvd. GN is leasing the 218,437 sq. ft. space. GN employees approximately 600 people in Minnesota, all of which will be relocated into this new North American HQ. GN plans on locating staff from California and Arizona for its Jabra and Parrott headsets to the facility in 2026. • Valvoline was granted a grading permit for a new oil change facility at 8231 Crossings Boulevard. Building should begin construction in Spring 2025. • Quality Equipment: Opened its new 120,000 square foot corporate headquarters, sales and repair facility at 5300 12`11 Avenue E. The facility had been planned for many years and solidifies Shakopee as the headquarters. • XCEL: Began construction of a new gas/hydrogen turbine replacement facility at the Blue Lake Generation Facility at Quarry Lake. This eliminates the need for diesel generators or storage on site and is highly efficient. Should be online in 2026. Public: • SandVenture in Lions Park was completed including a new building that houses Tommy's Malt Shop, changing rooms and showers, offices and a community space. The existing pool was reconstructed with new amenities including a boardwalk and new liner. • Windermere Park was completed including a new 50 -foot viewing tower, playground and trails. • Jackson Commons began construction. This new multi -use park will include a custom- themed playground, mountain bike trails, training course, boardwalk and tails. Completion will be in the fall of 2025. As part of the park development, a pedestrian tunnel was installed under CR 78, allowing all residents in the area to access the new park. • Work began on the designs for the reconstruction of the bank of the Minnesota River that will include riverbank armoring and new public access points, reconstruction of the marina for canoe and kayak access, a sculpture garden, lookouts, new trails and parking. • Final construction plans were completed for Killarney Hills, ValleyCrest, and the Marystown dog park. The three are out for bid and will be constructed in 2025. • River City Centre: Renovations and new streetscape were completed and the retail portion of the building controlled by the City's EDA is one hundred percent leased. • Memorial Park: The city removed the former Chamber of Commerce building and restrooms along with a remote shelter that was no longer used. The removals were observed under a State of Minnesota plan with an archeologist present at all times. The entire park and the removal areas have been planted in native seeds to recreate the historic Oak Savannah. Long -Term Financial Planning Historically, the city has issued only limited debt, in the form of bonds and internal funding for planned infrastructure projects, expansion specific to streets, underground utilities, trails and sidewalk expansion. A portion of the long-term debt is funded by special assessments against benefited properties. The city applies special assessments against benefitted properties at a rate of 30% of the assessable project costs. City capital and equipment needs are currently identified and funded in a manner that will not place an undue burden or single year expense fluctuation on the taxpayers. The planned CIP clearly identifies the needs for current projects as well as future use. This is based on known and anticipated programs and mandates, such as environmental program adjustments and possible community expansion and growth. The capital and equipment needs of the city require constant appraisal for replacement cost, life span and the assurance that the insurance coverage is providing for the most comprehensive, yet affordable, coverage. Annually the City develops a 15 -year CIP, which is a schedule of planned projects and funding sources that extend past the more detailed five-year CIP. The document increases transparency, project coordination and financial planning of future projects. The City also prepares a Long- term Financial Plan annually that includes trend analysis and ten-year General Fund projections, which allows for a view on city finances from a wider perspective. These documents are reviewed and discussed with the City Council and included as part of the adopted five-year CIP. Relevant Financial Policies The city's target General Fund balance is to maintain an unassigned level between 35% and 50% of expenditures. This level is to provide working capital for cash flow, expected declines in revenues, and for unforeseen expenditures such as natural disasters, or for unforeseen but urgent requests. Replenishing the fund balance when it falls below the target level shall be accomplished by inter -fund transfers, or adjusting of expenditures or revenues, over a period not to exceed three years. The accounting, auditing and financial reporting policies are designed to maintain a system of financial monitoring, control and reporting for all operations and funds to provide effective means of ensuring that overall city goals and objectives will be met and to assure the city's residents and investors that the city is well managed and fiscally sound. 60 9 The investment policy provides for conservative investing, preserving capital and maintaining adequate liquidity for forecasted cash needs. The finance department manages the portfolio, and all investments are held in a trust account. The debt policy ensures that the city's debt; 1) does not weaken the city's financial structure; and 2) provides limits on debt to avoid problems in servicing debt. This policy is critical for maintaining the best possible credit rating. Capital policies include having expenditures forecasted ahead for five to ten years and are updated annually. Internal Service Funds for major equipment, major buildings and facilities, park asset replacement and information technology costs stabilize the annual impact of those items to the General fund and taxpayers. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Shakopee for its Annual Comprehensive Financial Report for the fiscal year ended December 31, 2023. This was the 39th consecutive year that the city has received this award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the Finance Department, Accounting Manager Melissa Schlingman, and the entire city staff. We express appreciation to those staff members who assisted and contributed to the preparation of this report. Credit also must be given to the Mayor and City Councilors for their support in maintaining the highest standards of professionalism in the management of the City of Shakopee's finances. Respectfully submitted, peak William II. Reynolds City Administrator Finance Director Nathan J. Reinhardt 10 61 GD Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Shakopee Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2023 p. Executive Director/CEO 11 62 (THIS PAGE LEFT BLANK INTENTIONALLY) 63 12 INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Council City of Shakopee, Minnesota Opinions We have audited the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City of Shakopee, Minnesota (the City), as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City as of December 31, 2024, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General fund and Economic Development fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of Shakopee Public Utilities Commission, as of December 31, 2024, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Shakopee Public Utilities Commission is based solely on the report of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. furW,1 r rr,i 64 13 In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis starting on page 16 and the Schedules of Employer's Share of the Net Pension Liability, the Schedules of Employer's Contributions and the Schedule of Changes in the Other Post -Employment Benefit Liability and Related Ratios starting on page 108 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinion on the financial statements that collectively comprise the City's basic financial statements. The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and related directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 03 o0iL,ul0'o S Cerro 65 14 Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 15, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Abdo Minneapolis, Minnesota May 15, 2025 66 15 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 As management of the City of Shakopee (the "City"), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the year ended December 31, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our Letter of Transmittal, which can be found on pages 3 to 10 of this report. Financial Highlights • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent year by $343.1 million (net position). Of this amount, $51.8 million (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors, $14.8 million is restricted for specific purposes (restricted net position) and $276.5 million is the City's net investment in capital assets. • The City's total net position increased $13.8 million. Before transfers, the net increase in governmental activities accounts for 47 percent of the total increase and business -type activities accounts for 53 percent of the increase.The City's net investment in capital assets increased by $18.9 million, primarily a result of developer contributed infrastructure and infrastructure paid from capital grants. • As of the close of the current year, the City's governmental funds reported combined ending fund balances of $39.7 million, which is a decrease of $5,167,000 from the prior year. Approximately 25.0 percent of this total amount, $9.9 million is available for spending at the City's discretion (unassigned fund balance). The City has assigned $14.2 million primarily for capital projects, restricted $12.9 million primarily for debt service and park development, and committed $2.2 million for building inspections. The remaining $526,886 is considered non -spendable fund balance. • At the end of the current year, unassigned fund balance for the General Fund was $20.3 million, or 54.0 percent of total General Fund 2024 expenditures and 51.2 percent of the 2025 budgeted expenditures. • The City's total outstanding bonded debt decreased from $43.96 million to $41.48 million during the current year. The City retired $2.48 million in principal and did not issue any additional bonded debt. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) Notes to the Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -Wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to private -sector business. The Statement of Net Position presents information on all of the City's assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between them reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. 67 16 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 The Statement of Activities presents information showing how the City's net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused employee leaves). Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, highways and streets, economic development and recreation. The business -type activities of the City include sewer, storm drainage utilities and refuse. The government -wide financial statements include not only the City itself (known as the primary government), but also two legally separate entities for which the City is financially accountable. The component units are Shakopee Public Utilities Commission (SPUC) and the Economic Development Authority (EDA). SPUC's financial information is reported separately from the financial information presented for the primary government as a discretely presented component unit. The EDA, which functions like a department of the City although it is a legally separate entity, is presented within the City's government - wide financial statements. The City Council is the EDA Board. The government -wide financial statements can be found on pages 32 to 35 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the year. Such information may be useful in evaluating a City's near -term financing's requirements. 68 17 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the City's near -term financing decisions. The governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 29 individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund, and the Economic Development Authority Special Revenue Funds, and the Capital Improvement and TIF District No. 18 Canterbury Commons Capital Project Funds. Those are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund. Budgetary comparison statements have been prepared for the fund to demonstrate compliance with the budget. The basic governmental funds financial statements can be found on pages 36 to 39 of this report. Proprietary Funds The City maintains three different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its sewer, storm drainage and refuse operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its fleet of vehicles and mobile equipment, its major buildings, the replacement of park assets, information technology items, insurance funding and for employee compensated absences. All of these services predominantly benefit governmental rather than business -type functions. Proprietary funds provide the same type of information as the government -wide financial statements. The proprietary fund financial statements provide separate information for the sewer, storm drainage and refuse operations, all of which are considered to be major funds of the City. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 42 to 45 of this report. 69 18 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City's own programs. The basic fiduciary fund financial statements can be found on pages 46 to 47 of this report. Component Units Component units are legally separate organizations for which the City is financially accountable. The government -wide financial statements present information for the component units in a single column on the Statement of Net Position. Also, some information on the Statement of Changes in Net Position is aggregated for component units. The component units' Statements of Net Position and Statement of Changes in Net Position provide detail for each major component unit. The complete financial statements can be obtained from Shakopee Public Utility. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The Notes to the Financial Statements can be found on pages 48 to 105 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. These can be found on pages 108 to 115 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 126 to 142 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a City's financial position. For the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $343.1 million at the close of the most recent year. 70 19 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 By far the largest portion of the City's net position $276.5 million (80.6 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. Net Position (Expressed in Thousands) Current and Other Assets Capital Assets Governmental Activities Business -Type Activities Total 2024 2023 2024 2023 2024 2023 $ 76,077 $ 85,060 $ 24,825 $ 23,261 $ 100,902 $ 108,321 210,565 195,197 113,122 107,638 323,687 302,835 Total Assets $ 286,642 $ 280,257 $ 137,947 $ 130,899 $ 424,589 $ 411,156 Deferred Outflows of Resources Long -Term Liabilities Outstanding Other Liabilities Total Liabilities Deferred Inflows of Resources 13,250 16,701 140 175 13,390 16,876 $ 60,792 $ 65,484 $ 549 $ 677 $ 61,341 $ 66,161 13,444 11,736 957 584 14,401 12,320 $ 74,236 $ 77,220 $ 1,506 $ 1,261 $ 75,742 $ 78,481 18,834 19,944 299 267 19,133 20,211 NET POSITION: Net Investment in Capital Assets $ 163,879 $ 149,910 $ 112,592 $ 107,638 $ 276,471 $ 257,548 Restricted 14,849 15,377 - - 14,849 15,377 Unrestricted 28,094 34,507 23,690 21,908 51,784 56,415 Total Net Position $ 206,822 $ 199,794 $ 136,282 $ 129,546 $ 343,104 $ 329,340 An additional portion of the City's net position 14.8 million (4.3 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $51.8 million (15.1 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. 20 71 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 During the current year, the City's net position increased $13.8 million. Capital assets increased by $20.9 million, which included developer contributed assets of $8.7 million. Long-term liabilities decreased by $4.8 million primarily as a result of a decrease in net pension liability of $4.1 million. Deferred inflows of resources decreased by $1.1 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. Changes in Net Position (Expressed in Thousands) Governmental Activities Business -Type Activities Total 2024 2023 2024 2023 2024 2023 REVENUES: Program Revenues: Charges for Services $ 15,768 $ 17,653 $ 7,489 $ 6,694 $ 23,257 $ 24,347 Operating Grants and Contributions 2,700 2,037 115 81 2,815 2,118 Capital Grants and Contributions 7,994 12,585 6,308 4,863 14,302 17,448 General Revenues: Property Taxes 25,947 24,220 - - 25,947 24,220 Franchise Taxes 1,295 1,571 - - 1,295 1,571 Tax Increment 2,266 3,043 - - 2,266 3,043 Other 3,774 3,918 840 884 4,614 4,802 Total Revenues EXPENSES: General Government Public Safety Public Works Culture and Recreation Natural Resources Economic Development Interest on Long -Term Debt Sewer Storm Refuse Total Expenses Increase (Decrease) in Net Position before Transfers Transfers Change in Net Position NET POSTION: January 1 December 31 59,744 65,027 14,752 12,522 74,496 77,549 6,513 5,910 19,675 17,962 16,177 16,039 6,588 6,039 44 45 2,866 3,769 1,406 1,531 53,269 - - 6,513 5,910 - - 19,675 17,962 - - 16,177 16,039 - - 6,588 6,039 - - 44 45 - - 2,866 3,769 - - 1,406 1,531 5,134 4,556 5,134 4,556 2,328 2,114 2,328 2,114 1 2 1 2 51,295 7,463 6,672 60,732 57,967 6,475 13,732 7,289 5,850 553 188 (553) (188) 7,028 13,920 199,794 185,874 6,736 5,662 13,764 19,582 13,764 19,582 129,546 123,884 329,340 309,758 $ 206,822 $ 199,794 $ 136,282 $ 129,546 $ 343,104 $ 329,340 21 72 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 Governmental Activities Governmental activities increased the City's net position by $7.0 million. Contributing factors to this increase are related to intergovernmental revenues, park dedication revenues, building permit revenues, increased investment earnings and contributed assets from outside developers. Expenditures increased due to wage cost of living adjustment, increase in full time firefighters, attorney costs related to prosecution services, and pension liability related to PERA. Expenses and Program Revenues — Governmental Activities $22,000,000 $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- c3 7 0. Public works 0 Revenues by Source — Governmental Activities Charges for Services 26% Other Taxes 1% Franchise Taxes 2% Other Revenues 9% Operating Grants and Contributions 5% Capital Grants and Contributions 13% Taxes 44% 000000 Program Revenues Er Expenses 22 73 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 Business -Type Activities Business -type activities increased the City's net position by $6.7 million. The increase in net position was primarily the result from increased investment income and developer contributed capital in 2024. Contributions totaled approximately $6.2 million, related to sewer and storm water infrastructure in various developments throughout the city. The sewer and storm water activities will continue to experience ongoing expenses as capital investment is required to maintain and reconstruct the City's utilities. In addition, new development will also require investment of the City. Expenses and Program Revenues — Business -Type Activities $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Sewer Storm Refuse Revenues by Source — Business -Type Activities Other Income 6% Charges for Services 51% Operating Grants and Contributions 1% Capital Grants and Contributions 42% on Program Revenues uuiu� Expenses 23 74 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 FINANCIAL ANALYSIS OF THE CITY'S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds The focus of the City's governmental funds is to provide information on near -term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, assigned and unassigned fund balance may serve as a useful measure of a City's net resources available for spending at the end of the year. As of the end of the current year, the City's governmental funds reported combined ending fund balances of $39,720,732, a decrease of $5,166,829 in comparison with the prior year. Approximately 25 percent, $9,922,361, of the total amount constitutes unassigned fund balance, which is available for spending at the City's discretion. Approximately 35.7 percent, $14,165,969, of the total amount constitutes assigned fund balance, which is assigned for designated purposes. Approximately 5.6 percent, $2,225,000, of the total amount constitutes committed fund balance through formal action of the City Council. The remainder of fund balance, $13,407,402, is not available for new spending because it has already been restricted or is non - spendable. Following is a discussion of the major governmental funds: The General Fund is the chief operating fund of the City. At the end of the current year, fund balance of the General Fund was $23,521,240. As a measure of the General Fund's liquidity, it maybe useful to compare fund balance (unassigned) to total fund expenditures. Unassigned fund balance represents 54.0 percent of total General Fund expenditures or 51.2 percent of the 2025 budgeted expenditures. The City's fund balance policy is to maintain an unassigned fund balance in the General Fund of 35 to 50 percent of budgeted expenditures, as a result a transfer of $2,460,000 was approved to adjust the assigned fund balance accordingly. The transfers went to the Capital Improvement Fund for future projects, the Buildings Internal Service Fund for future fire station remodeling and 2022A GO Improvement Bond Debt Service Fund for next years bond payments. Fund balance of the City's General Fund increased by $1,496,762 during the current year, primarily as a result of revenues exceeding budgeted expectations. Overall General Fund revenues increased $879,080 in comparison to last year as a result of taxes, charges for services and investment income revenue offset by a decrease in intergovernmental revenue. As mentioned in the previous paragraph, the City did a one time transfer of $2,460,000 to help offset future expenses of those funds. Overall General Fund expenditures increased by $3,159,946 due to cost of living increases plus market value adjustment related to unions, additional public safety employees and sick and safe time. The largest operational increase of $2,242,671 was in public safety. 75 24 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 The Economic Development Authority Fund had a fund balance increase after transfers of $972,437. The EDA had transfers totaling $421,106 from TIF District No. 18 Canterbury Commons related to the River City Centre improvements. The Capital Improvement Fund had a fund balance decrease of $90,304. In 2024, the City invested $4,849,513 in infrastructure including approximately $3,900,000 in pavement reconstruction/bituminous overlay projects and approximately $930,000 on downtown improvements. The TIF District No. 18 Canterbury Commons fund had a fund balance decrease of $4,351,292. The fund had a transfer of $1,897,875 to the EDA for River City Centre improvements and the debt funds for TIF debt service payments. In 2024, the City invested $3,902,099 in infrastructure including Eagle Creek Boulevard and traffic signal improvements. Proprietary funds The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net position of the enterprise funds (expressed in thousands): Storm Sewer Drainage Refuse Beginning of Year Change During Year $ 6,328 $ 14,930 $ (122) 721 904 88 End of Year $ 7,049 $ 15,834 $ (34) The City has undertaken several new development projects and completed a study in past years to ensure fees charged are covering operations of the funds. A portion of these projects are funded through special assessments, but a significant portion of this is funded through the anticipated future revenues collected for services. Revenue from service charges have increased from an increase in the number of customers as well as rate increases. The Refuse fund was created during 2014 with the City's purchase of garbage carts. The negative net position is anticipated to be reduced each year as an agreement is in place with the refuse hauler to repay the cost of carts over the next few years. During 2022, as part of a revised garbage contract the hauler took ownership of the carts. The City still continues to receive a cart fee payment as part of the agreement to help pay down the interfund loan on the original purchase. 25 76 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 GENERAL FUND BUDGETARY HIGHLIGHTS Budget amendments totaling an additional $546,650 of revenues and $623,950 of expenditures between original and final amended budget were approved during 2024. Following are the main components of the amendments: • Revenues were increased $325,000 in forfeitures offset by a corresponding increase in prosecution services expense. Previously repayment to Scott County was netted against the revenue. Additionally $221,650 was added in intergovernmental revenues for the state fire aid, historical society grant and a building official grant. • The expenditure budget adjustments of $623,950 included the cost of the national registry program with the historical society, state fire aid, building inspector hired with the grant, union contract settlements, county court fines offsetting the revenue increase, and additional firefighter positions. Actual revenues of $40,977,156 were $4,183,506 over budget. The significant variances are noted below: • Licenses and permits came in over budget on account of an influx of development and conservative budgeting. • Intergovernmental revenue came in over budget due to an increase in public safety grants received during the year. • Charges for services came in over budget as a result of an increases in police contracted services and an increase in development. This was offset by SandVenture not opening in 2024 due to construction on the pool. • Investment income came in over budget, as a result of an increase in interest earnings and an unrealized gain from the market value of investments. • Fines and forfeitures came in over budget as all fine revenue is turned over to Scott County for prosecution costs. The same variance exists in public safety expenditures as the payment to Scott County was also not budgeted. Actual expenditures of $37,633,698 were $48,612 under budget. The significant variances are noted below: • Public safety came in over budget as a result of police, fire and building inspection divisions coming in over budget. Police came in over budget due to the additional liability recorded for future compensated absences with the new union contract settlement and pension expenses related to PERA as well as purchasing additional equipment and citywide cameras that were not originally budgeted. Fire came in over budget as a result of the new staffing model and being under in some of our assumptions in costs for part-time, staffing, and uniforms and training. Building Inspection came in over budget as a result of software costs related to programming rental inspections and credit card processing fees directly related to more than anticipated revenue being received. • Public works was under budget as a result of staffing vacancies in the engineering department and the street department having less snow plowing and snow removal including salt purchases related to favorable winter weather. 77 26 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental and business type activities as of December 31, 2024, amounts to $323,686,977 (net of accumulated depreciation and accumulated amortization). This investment in capital assets includes land, buildings and systems, improvement, machinery and equipment, park facilities, roads, highways and bridges, lease equipment and software. Capital Assets (Net of Depreciation) Expressed in Thousands Land ROW Construction in Progress Line Rights Infrastructure Buildings Machinery and Equipment Subscription -Based Information Technology Asset (SBITA) Lease Equipment Total Governmental Activities Business -Type Activities Total 2024 2023 2024 2023 2024 2023 $ 26,020 $ 25,128 $ 3,797 $ 3,797 $ 29,817 $ 28,925 1,333 1,210 508 508 1,841 1,718 18,036 10,887 3,481 6,590 21,517 17,477 - - 594 618 594 618 92,932 89,439 103,058 94,259 195,990 183,698 54,170 52,424 - - 54,170 52,424 17,223 15,352 1,684 1,866 18,907 17,218 379 165 - - 379 165 472 592 - - 472 592 $ 210,565 $ 195,197 $ 113,122 $ 107,638 $ 323,687 $ 302,835 Major capital assets events during the current year included the following: • Developer contributed assets of streets, sanitary sewer and storm sewer at Highview Park Second and Third, Countryside, Whispering Waters, Arbor Bluffs and Moraine Addition. Additionally Shakopee Public Utility added street lights throughout the City as contributed assets to the City. • Completion of the improvements to enhance the commercial space of River City Centre in downtown Shakopee, including store front, drainage, streetscape and parking lot improvements. • The City continued the major renovation of SandVenture, the City owned outdoor sand bottom pool estimated to be completed in 2025 before the summer season. • Parks updates including Meadows park playground, Stan Park tennis court, Scenic Heights pickleball courts and trails, Lions park pickleball courts, Jackson Commons park, Lions park disc golf improvements, and Windermere Bluff Park improvements. • L-16 lift station rehabilitation and the west end and Maras/Hanson lift stations. • Street reconstruction and mill and overlay projects throughout the city and trail work at Southbridge Drive and Windsor Drive. Completed Eagle Creek Blvd. street, sewer, and storm improvements. • Downtown improvements are being completed in phases and phase one took place in 2024. • Vehicle and equipment replacements in police, fire, recreation, streets, park, sewer and storm. Additional information on the City's capital assets can be found in Note 6 on pages 73 to 75 of this report. 27 78 CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 Long -Term Debt At the end of the current year, the City had total bonded debt outstanding of $41,480,000. The full amount is debt backed by the full faith and credit of the government. Outstanding Debt General Obligation Bonds Expressed in Thousands G.O. Bonds Governmental Activities Business -Type Activities Total 2024 2023 2024 2023 2024 2023 $ 41,480 $ 43,960 $ - $ - $ 41,480 $ 43,960 The City's total outstanding bonded debt decreased by $2,480,000 during the current year. The City retired $2,480,000 in principal and did not issue any additional bonded debt. Minnesota Statutes limit the amount of general obligation (G.O.) debt a government entity may issue to a net figure of three percent of the taxable market value. The current legal debt margin for the City is $212.6 million, which is significantly in excess of the City's outstanding G.O. debt. The City maintains an "AA+" debt rating from S&P Global Ratings. Additional information on the City's long-term debt can be found in Note 8 on pages 76 to 80 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES In December 2024, the unemployment rate in Shakopee was 2.4%, which is an increase of 0.1% from 2.3% from a year ago. This compares favorably to the state's December unemployment rate of 2.6% and the national rate of 4.1%. The City's taxable market value is $8.3 billion for taxes payable 2025, which is an increase of $503 million or 6.5 percent from the previous year. New construction accounted for $249.2 million of the increase in value. The City is currently experiencing the construction and development of several new industrial, commercial and residential sites. The City's past years commercial and industrial growth has spurred the need for new housing. The City is seeing all types of housing, from single family to multi -family and senior housing filling this need. The diversified commercial and industrial base provides a strong base of jobs and tax base. The 2025 City property tax levy is increasing by $1,271,050 to $26,744,050. Despite the levy increase the tax rate will see a minimal change as a result of new growth and increasing existing property market value. CITY OF SHAKOPEE MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2024 REQUESTS FOR INFORMATION This financial report is designed to provide a general view of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director, 485 Gorman St., Shakopee, Minnesota, 55379. 80 29 (THIS PAGE LEFT BLANK INTENTIONALLY) 81 30 BASIC FINANCIAL STATEMENTS 82 31 CITY OF SHAKOPEE STATEMENT OF NET POSITION December 31, 2024 Primary Government Governmental Activities Business -Type Activities Total Component Unit Shakopee Public Utility ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Cash and Investments (Including Cash Equivalents) $ 69,966,766 $ 20,349,459 $ 90,316,225 $ 67,372,717 Restricted Cash and Investments - 18,341,693 Property Tax Receivable 100,777 100,777 - Accounts Receivable (Net of Allowance for Uncollectible Accounts) 1,551,418 5,378 1,556,796 6,779,207 Interest Receivable 464,666 135,975 600,641 443,756 Due From Other Governments 2,238,796 456,893 2,695,689 307,970 Special Assessments Receivable 1,377,262 1,053,349 2,430,611 Lease Receivable 2,343,853 - 2,343,853 2,229,418 Inventories 35,999 2,941 38,940 2,903,550 Prepaid Expenses 510,998 510,998 117,262 Notes Receivable 200,000 200,000 - Land Held for Resale 106,627 106,627 Advances from Other Funds (Internal Balances) (2,820,627) 2,820,627 - Capital Assets, Net of Accumulated Depreciation and Amortization (Where Applicable): Land and Land Improvements 26,020,170 3,796,803 29,816.973 9,148,582 Right of Way 1,332,928 507,746 1,840,674 Construction in Progress 18,036,356 3,481,315 21.517,671 5,993,408 Line Rights - 594,006 594,006 Infrastnrcture 92,931,800 103,057,892 195,989,692 95,503,190 Buildings 54,169,495 - 54,169,495 Machinery and Equipment 17,223,209 1,684,165 18,907,374 35,127,919 Subscription -Based Information Technology Asset 379,018 379,018 1,673,082 Lease Equipment (Intangible Right to Use Asset) 472,074 472,074 - Total Assets Deferred Outflows of Resources Deferred Outflows of Resources Related to Pensions Deferred Outflows of Resources Related to OPEB Total Deferred Outflows of Resources 286,641,585 11,705,176 1,544,565 13,249,741 137,946,549 424,588,134 77,238 63,228 140,466 11,782,414 1,607,793 13,390,207 245,941,754 658,566 658,566 Total Assets and Deferred Outflow's of Resources $ 299,891,326 $ 138,087,015 $ 437,978,341 $ 246,600,320 The Notes to the Financial Statements are an integral part of this statement. 32 83 CITY OF SHAKOPEE STATEMENT OF NET POSITION (Continued) December 31, 2024 Primary Government Component Unit LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Accounts and Contracts Payable Other Current Liabilities Due to Other Governments Salaries and Benefits Payable Deposits Payable Interest Payable Unearned Revenue Customer Advances Bond Principal Payable, Net: Payable Within One Year Payable After One Year Lease Liability Payable Within One Year Payable After One Year SBITA Liability Payable Within One Year Payable After One Year Compensated Absences Payable: Payable Within One Year Payable After One Year OPEB Liability: Payable Within One Year Payable After One Year Net Pension Liability: Payable After One Year Total Liabilities Deferred Inflows of Resources Regulatory Collections to Cover Future Costs Deferred Inflows of Resources Related to Leases Deferred Inflows of Resources Related to Pensions Deferred Inflows of Resources Related to OPEB Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources Net Position Net Investment in Capital Assets Restricted for: Economic Development Local Affordable Housing Aid DARE Public Safety Fund Opioids Settlement Forfeiture Debt Service Component Units Water and Electric Capital Improvements Unrestricted Total Net Position Governmental Business -Type Activities Activities Total $ 3,341,185 $ 650,128 $ 3,991,313 727,951 307,031 1,034,982 1,068,266 1,068,266 7,567,598 7,567,598 533,298 533,298 205,144 205,144 2,585,000 2,585,000 40,843,047 40,843,047 140,703 140,703 219,412 219,412 129,969 129,969 139,756 139,756 1,624,088 31,424 1.655,512 1,984,997 38,406 2,023,403 174,755 7,154 181,909 2,899,864 118,708 3,018,572 10,049,999 353,418 10,403,417 74,235,032 1,506,269 2,200,257 15,479,014 1,155,154 251,723 47,286 18,834,425 299,009 93,069,457 1,805,278 163,878,931 Shakopee Public Utility $ 4,391,411 1,231,422 459,479 1,683,130 1,687,999 258,630 784,158 2,502,509 75,741,301 12,998,738 2,200,257 15,730,737 1,202,440 339,995 2,132,991 1,858,052 19,133,434 4,331,038 94,874,735 17,329,776 112,591,908 276,470,839 147,266,911 3,386,911 3,386,911 212,328 212,328 1,916 1,916 584,665 584,665 264,162 264,162 63,933 63,933 3,825,555 3,825,555 16,635,861 6,509,484 6,509,484 28,093,984 23,689,829 51,783,813 65,367,772 206,821,869 136,281,737 343,103,606 229,270,544 Total Liabilities, Deferred Inflows of Resources and Net Position $ 299,891,326 $ 138,087,015 $ 437,978,341 $ 246,600,320 The Notes to the Financial Statements are an integral part of this statement. 33 84 CITY OF SHAKOPEE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2024 Program Revenues Operating Charges for Grants and Functions/Programs Expenses Services Contributions Primary Government: Governmental Activities General Government Public Safety Public Works Culture and Recreation Conservation and Natural Resources Economic Development Interest on Long -Term Debt Total Governmental Activities Business -Type Activities Sewer Storm Drainage Refuse Total Business -Type Activities $ 6,512,719 $ 4,167,583 $ 416,024 19,674,720 6,699,301 1,450,889 16,177,262 1,338,235 792,913 6,587,521 2,606,354 39,935 44,160 2,866,321 956,511 1,406,349 53,269,052 15,767,984 2,699,761 5,133,671 5,912,682 2,327,621 1,486,426 1,067 90,000 114,780 7,462,359 7,489,108 114,780 Total Primary Government $ 60,731,411 $ 23,257,092 $ 2,814,541 Component Unit: Shakopee Public Utility Electric Water Total Component Unit $ 55,182,485 $ 59,549,527 $ 7,563,361 7,553,058 $ 62,745,846 $ 67,102,585 $ General Revenues Property Taxes Lodging Tax Franchise Taxes Tax Increments Unrestricted Investment Earnings Gain on Sale of Asset Transfers Total General Revenues and Transfers Change in Net Position Net Position - Beginning Net Position - Ending The Notes to the Financial Statements are an integral part of this statement. 34 85 Program Revenues Capital Grants and Contributions 5,986,265 2,007,523 7,993,788 2,164,765 4,142,915 6,307,680 $ 14,301,468 $ 936,171 13,020,147 $ 13,956,318 Net (Expense) Revenues and Changes in Net Position Primary Government Governmental Activities Business -Type Activities $ (1,929,112) $ (11,524,530) (8,059,849) (1,933,709) (44,160) (1,909, 810) (1,406,349) (26,807,519) (26,807,519) 25,946,932 472,152 1,295,303 2,266,356 3,301,707 552,964 33,835,414 7,027,895 199,793,974 Total - $ (1,929,112) - (11,524,530) - (8,059,849) - (1,933,709) - (44,160) - (1,909,810) - (1,406,349) 2,943,776 3,416,500 88,933 6,449,209 6,449,209 839,514 (552,964) 286,550 6,735,759 129,545,978 $ 206,821,869 $ 136,281,737 (26,807,519) 2,943,776 3,416,500 88,933 6,449,209 (20,358,310) 25,946,932 472,152 1,295,303 2,266,356 4,141,221 34,121,964 13,763,654 329,339,952 $ 343,103,606 Component Unit Shakopee Public Utility 5,303,213 13,009,844 18,313,057 3,277,797 15,956 3,293,753 21,606,810 207,663,734 $ 229,270,544 35 86 CITY OF SHAKOPEE BALANCE SHEET - GOVERNMENTAL FUNDS December 31, 2024 ASSETS Cash and Investments Delinquent Taxes Receivable Special Assessments Receivable: Delinquent Deferred Accounts Receivable Interest Receivable Notes Receivable Lease Receivable Due from Other Funds Due from Other Governments Advance to Other Funds Inventories Prepaid Items Land Held for Resale Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable Due to Other Funds Deposits Payable Due to Other Governments Salaries and Benefits Payable Advance from Other Funds Unearned Revenue Total Liabilities Deferred Inflows of Resources Unavailable Revenue - Property Taxes Unavailable Revenue - Special Assessments Deferred Inflow of Resources Related to Leases Unavailable Revenue- Intergovernmental Total Deferred Inflows of Resources Fund Balances Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Special Revenue Economic Development General Fund Authority Capital Projects Capital Improvement TIF District No. 18 Canterbury Commons Other Governmental Funds Total Governmental Funds $ 29,956,765 $ - $ 8,496,724 $ 98,855 1,922 2,888 21,455 406,947 7,353 169,781 19,008 200,000 - 393.857 1,949,996 344,380 8,491 1.891,672 3,561,011 35.999 - 259,365 695 106,627 108 677,893 468,203 66,714 745,098 1,278,405 2,840,550 - $ 11,334,556 $ 49,788,045 100,777 595,975 107,255 8,139 666,779 34,438 63,307 500,265 3,177 11,135 1,366,127 1,512,916 318,810 200,000 2,343,853 745,098 2,238,796 8,293,233 35,999 263,237 106,627 $ 33,781,964 $ 5,655,103 $ 14,573,695 $ 703,230 $ 12,610,661 $ 67,324,653 $ 386,209 $ 18,802 $ 340,543 7,530,392 37,206 618,899 1,068,266 167,553 37,591 9,771,319 434,142 348,322 $ 368,183 404,555 1,736 106,747 6,401,561 350,058 7,281,046 $ 1,317,717 $ 2,439,233 745,098 7,567,598 311 727,693 1,068,266 3,832,299 10,233,860 205,144 5,150,327 22,986,892 98,855 1,922 24,343 - 366,207 1,834,050 678,001 938,733 674,918 100,777 1,377,262 2,200,257 938,733 4,617,029 489,405 1,835,972 1,616,734 674,918 523,014 2,225,000 440,000 20,333,226 23,521,240 695 3,384,294 12,606,903 - 3,177 526,886 - 9,496,222 12,880,516 - - 2,225,000 - 1,119,066 14,165,969 (6,577,816) (3,833,049) 9,922,361 3,384,989 12,606,903 (6,577,816) 6,785,416 39,720,732 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 33,781,964 $ 5,655,103 $ 14,573,695 $ 703,230 $ 12,610,661 $ 67,324,653 The Notes to the Financial Statements are an integral part of this statement. 36 87 CITY OF SHAKOPEE RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION - GOVERNMENTAL FUNDS December 31, 2024 Total Fund Balances - Governmental Funds $ 39,720,732 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds. Cost of Capital Assets Less Accumulated Depreciation Lease Equipment Less Accumulated Amortization SBITA Equipment Less Accumulated Amortization Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: Bond Principal Payable Unamortized Bond Premium Lease Liability SBITA Liability Net OPEB Obligation Net Pension Liability Delinquent property taxes and assessments receivable will be collected this year, but are not available soon enough to pay for the current period's expenditures and, therefore, are reported as unavailable revenue in the funds. Property Taxes Special Assessments Deferred special assessments receivable are not available to pay for current expenditures and, therefore, are reported as unavailable revenue in the funds. Deferred Special Assessments Governmental funds do not report a liability for accrued interest due and payable. Intergovernmental receivable are not available to pay current -period expenditures and therefore, are unavailable in the funds. Deferred Outflows of Resources and Deferred Inflows of Resources are created as a result of various differences related to pensions and OPEB that are not recognized in the governmental funds. Deferred Inflows of Resources Related to Pensions Deferred Outflows of Resources Related to Pensions Deferred Inflows of Resources Related to OPEB Deferred Outflows of Resources Related to OPEB Internal service funds are used by management to charge the costs of equipment, buildings, park assets and employee benefits to individual funds. A portion of the assets and liabilities of those funds are included in governmental activities in the Statement of Net Position. 299,594,112 (130,312,388) 572,640 (223,440) 101,716 (36,562) (41,480,000) (1,948,047) (284,684) (54,040) (3,074,619) (10,049,999) 100,777 11,135 1,366,127 (533,298) 938,733 (15,479,014) 11,705,176 (1,155,154) 1,544,565 55,797,401 Total Net Position - Governmental Activities $ 206,821,869 The Notes to the Financial Statements are an integral part of this statement. CITY OF SHAKOPEE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2024 Special Revenue Capital Projects Formerly Major Fund Economic TIF District Other Total Development Capital No. 18 TIE District Governmental Governmental General Fund Authority Improvement Canterbury No. 20 Enclave Funds Funds REVENUES Taxes Tax Increment Special Assessments Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Investment Income Total Revenues EXPENDITURES Current General Government Public Safety Public Works Culture and Recreation Conservation and Natural Resources Economic Development Debt Service Principal Interest and Other Charges Capital Outlay Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset SBITA Issued Lease Issued Transfers In Transfers Out Total Other Financing Sources (Uses) $22,730,797 $ 499,024 $ 1,628,586 $ - $ - 2,899.661 $ 27,758,068 - - 1,636,552 - 629.804 2,266,356 19,709 - 478,458 - 120,761 618,928 5,542,101 - - - 1,911,040 7,453,141 6,035,453 - 1,030,047 - 212,678 7,278,178 5,076,353 798,869 - 8,468 5,883,690 296,452 - - 205,665 502,117 195,763 156,971 28,011 671 - 137,146 518,562 1,080,528 151,896 480,107 53,379 - 447,536 2,213,446 40,977,156 1,606,760 3,645,209 1,690,602 - 6,572,759 54,492,486 5,864,017 18,491,465 7,797,066 5,198,428 100,877 5,587 176,258 37,633,698 766,575 59,674 265,604 1,032,179 3,343,458 574,581 6,338 75,155 36,258 495,553 (2,460,000) (1,846,696) 182,246 4,849,513 3,902,099 4,849,513 4,144,019 (1,204,304) (2,453,417) 421,106 1,114,000 (23,250) 397,856 (1,897,875) 1,114,000 (1,897,875) Net Change in Fund Balances 1,496,762 972,437 (90,304) (4,351,292) FUND BALANCES Beginning of Year, as Previously Presented Change within financial reporting entity (major to nonmajor fund) Beginning of Year, as Adjusted End of Year 22,024,478 22,024,478 2,412,552 12,697,207 2,412,552 (2,226,524) (2,404,535) 12,697,207 (2,226,524) 494,293 6,358,310 155,373 18,646,838 67,195 7,864,261 5,198,428 44,160 44,160 512,072 1,338,321 2,609,312 2,710,189 1,436,340 1,624,173 6,198,912 15,392,386 11,517,657 59,177,066 (4,944.898) (4,684,580) 6,338 75,155 36,258 1,822,769 3,853,428 (72,303) (4,453,428) 1,750,466 (482,249) (3,194,432) (5,166,829) 12,384,383 44,887,561 2,404,535 (2,404,535) - 9,979,848 44,887,561 $23,521,240 $ 3,384,989 $ 12,606,903 $ (6,577,816) $ - $ 6,785,416 $ 39,720,732 The Notes to the Financial Statements are an integral parr of this statement. 38 89 CITY OF SHAKOPEE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2024 Net Change in Fund Balances - Governmental Funds $ (5,166,829) Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital Outlays Depreciation Expense Loss on Disposal of Capital Assets Contributed Assets Lease Equipment Amortization Expense on Leases SBITA Equipment Amortization Expense on SBITA Equipment The issuance of long term debt provides current financial resources to governmental funds, while the repayment of principal of long term debt consumes the current financial resources of the governmental funds. Neither transaction, however has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The amounts below are the effects of these differences in the treatment of long-term debt Principal Payments on Debt Leases Principal Payments on Leases Subscriptions Principal Payments on Subscription Payable Net Adjustment to Interest Payable Amortization of Bond Premium Certain revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Special Assessments Delinquent Special Assessments Deferred Intergovernmental Delinquent receivables will be collected this year, but are not available soon enough to pay for the current period's expenditures and, therefore, are not revenues in the funds. The reduction of some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Pension Expense OPEB Obligations Internal service funds are used by management to charge the costs of certain activities such as buildings, equipment, park assets and employee benefits to individual funds. (See Note 2.B.) 9,210,777 (7,146,562) (1,921) 4,306,034 36,258 (122,932) 75,155 (36,638) 2,480,000 (36,258) 194,472 (75,155) 35,717 48,208 169,616 (565,349) 53,901 938,733 (43,681) (1,339,231) (11,098) 4,024,678 Change in Net Position - Governmental Activities $ 7,027,895 The Notes to the Financial Statements are an integral part of this statement. CITY OF SHAKOPEE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2024 Budget Amounts Variance with Actual Final Budget - Original Final Amounts Over (Under) REVENUES Taxes Special Assessments Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Revenues: Investment Income Contributions and Donations Rents Other Total Revenues EXPENDITURES Current General Government Public Safety Public Works Culture and Recreation Debt Service: Principal Interest and Other Charges Capital Outlay General Government Public Safety Public Works Culture and Recreation Total Expenditures Excess of Revenues Over(Under) OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset SBITA Issued Lease Issued Transfers In Transfers Out $ 22,569,800 $ 22,569,800 $ 22,730,797 $ 160,997 14,000 14,000 19,709 5,709 3,491,450 3,491,450 5,542,101 2,050,651 4,979,000 5,200,650 6,035,453 834,803 4,813,350 4,813,350 5,076,353 263,003 200 325,200 296,452 (28,748) 325,000 325,000 1,080,528 755,528 25,000 25,000 31,208 6,208 10,700 10,700 1,050 (9,650) 18,500 18,500 163,505 145,005 36,247,000 36,793,650 40,977,156 4,183,506 6,569,550 6,052,000 5,864,017 (187,983) 17,019,800 18,072,800 18,491,465 418,665 8,260,450 8,348,950 7,797,066 (551,884) 5,208,560 5,208,560 5,198,428 (10,132) 37,058,360 37,682,310 (811,360) 100,877 100,877 5,587 5,587 64,478 64,478 100,930 100,930 4,683 4,683 6,167 6,167 37,633,698 (48,612) (888,660) 3,343,458 4,232,118 6,338 6,338 75,155 75,155 36,258 36,258 611,360 634,610 495,553 (139,057) (252,550) (2,460,000) (2,207,450) Total Other Financing Sources (Uses) 611,360 382,060 Net Change in Fund Balances FUND BALANCES Beginning of Year 22,024,478 (1,846,696) (2,228,756) $ (200,000) $ (506,600) 1,496,762 $ 2,003,362 End of Year $ 23,521,240 The Notes to the Financial Statements are an integral part of this statement. CITY OF SHAKOPEE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ECONOMIC DEVELOPMENT AUTHORITY For the Year Ended December 31, 2024 Variance with Budget Amounts Actual Final Budget - Original Final Amounts Over (Under) REVENUES Taxes Charges for Services Miscellaneous Revenues: Investment Income Other Total Revenues EXPENDITURES Current Economic Development Capital Outlay Economic Development Total Expenditures Excess of Revenues Over Expenditures OTHER FINANCING SOURCES/ (USES) Transfers In Transfers Out $ 500,000 $ 500,000 $ 499,024 $ (976) 747,000 747,000 798,869 51,869 1,000 1,000 151,896 150,896 156,971 156,971 1,248,000 1,248,000 1,606,760 358,760 861,450 861,450 766,575 (94,875) 150,000 150,000 265,604 115,604 1,011,450 1,011,450 236,550 236,550 (23,250) Total Other Financing Sources (Uses (23,250) Net Change in Fund Balances 1,032,179 20,729 574,581 338,031 421,106 (23,250) 421,106 397,856 421,106 $ 236,550 $ 213,300 972,437 $ 759,137 FUND BALANCES Beginning of Year 2,412,552 End of Year $ 3,384,989 The Notes to the Financial Statements are an integral part of this statement. 41 92 CITY OF SHAKOPEE STATEMENT OF NET POSITION - PROPRIETARY FUNDS December 31, 2024 Business -Type Activities - Enterprise Funds ASSETS Current Assets Cash and Investments, Including Cash Equivalents Accounts Receivable Interest Receivable Special Assessment Receivable: Delinquent Deferred Due from Other Funds Due from Other Governments Inventories Prepaid Expenses Total Current Assets Noncurrent Assets Advances to Other Funds, Noncurrent Capital Assets: Land Right of Way Construction in Progress Line Rights Infrastructure Buildings Machinery and Equipment Lease Equipment Subscription -Based Technology Information Assets (SBITA) Total Cost Less Accumulated Depreciation and Amortization Net Capital Assets Total Noncurrent Assets Total Assets Deferred Outflows of Resources Deferred Outflows of Resources Related to Pensions Deferred Outflows of Resources Related to OPEB Sewer Storm Drainage Refuse Total $ 6,165,393 $ 13,343,472 5 3,299 2,079 41,516 94,695 1,050,950 33,984 365,573 312 206 2,193 91,320 2,629 7,661,027 13,536,594 Governmental Activities - Internal Service Funds - $ 19,508,865 $ 21,019,315 - 5,378 38,502 (2361 135,975 145,856 206 1,053,143 33,984 456,893 2,941 247,761 (236) 21,197,385 21,451,434 2,820,627 - 2,820,627 4,500 3,792,303 507,746 2,473 016 1008 299 1,368,569 - 66,822,570 74,004,937 2,210,504 1,646,434 72,879,159 80,959,719 (20,459,237) (20257.714) 52,419,922 60,702,005 52,419,922 63,522,632 60,080,949 77,059,226 3,796,803 507,746 3,481,315 1,368,569 140,827,507 3,856,938 221,876 11,023,5 II 4,981,670 32,854,778 20,805,624 163,832 512,626 153,838,878 70,563,917 (40,716,951) (29,694,945) 113,121,927 40,868,972 115,942,554 40,868,972 (236) 137,139,939 62,320,406 30,457 46,781 - 77,238 31,614 31,614 - 63,228 Total Deferred Outflow's of Resources 62,071 Total Assets and Deferred Outflows of Resources LIABILITIES AND NET POSITION Current Liabilities Accounts Payable Due to Other Funds Due to Other Governments Current Compensated Absences Current Lease Liability Current SBITA Liability Current OPEB Liability Total Current Liabilities Noncurrent Liabilities Advance from Other Funds Compensated Absences Lease Liability SB1TA Liability OPEB Liability Net Pension Liability Total Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources Deferred Inflows of Resources Related to Pensions Deferred Inflows of Resources Related to OPEB 78,395 - 140,466 $ 60,143,020 $ 77,137,621 S (236) $ 137,280,405 $ 62,320,406 $ 186,543 $ 463,585 S 276,381 30,650 18,941 12,483 3,577 3,577 485,442 33,984 510,295 33,984 23,149 15,257 59,354 59,354 139.363 214,055 221,866 288,666 707,308 798,961 33,984 $ 650,128 $ 901,952 33,984 - 307,031 258 31,424 1,624,088 24,055 97,191 7,154 - 1,029,721 2,647,5{4 880,000 38.406 1,984,997 51,376 118,494 118,708 353,418 510,532 3,034,867 1,540,253 5,682,411 99,262 152,461 - 251,723 23,643 23,643 - 47,286 Total Deferred inflows of Resources 122,905 Net Position Net Investment in Capital Assets Unrestricted Total Net Position Total Liabilities, Deferred Inflows of Resources and Net Position 176,104 - 299,009 52,263,465 60,328,443 112,591,908 39,772,132 7,049,342 15,834,113 (34,220) 22,849,235 16,865,863 59,312,807 76,162,556 (34,220) 135,441,143 56,637,995 $ 60,143,020 $ 77,137,621 S (236) $ 62,320,406 Adjustment to Reflect the Consolidation of internal Service Fund Activity Related to Enterprise Funds (See Note 2c) 040,594 Total Business -Type Activities Net Position 5 136,281,737 The Notes to the Financial Statements are an integral part of this statement. 42 93 CITY OF SHAKOPEE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUNDS For the Year Ended December 31, 2024 Business -Type Activities - Enterprise Funds Governmental Activities - Internal Service Sewer Storm Drainage Refuse Total Funds OPERATING REVENUES Charges for Services Rental Charges Other Charges Special Assessments Total Operating Revenues OPERATING EXPENSES Salaries and Benefits Depreciation Professional Services Sewer Disposal Charges Repairs and Maintenance Materials and Supplies Rent Insurance Utilities Total Operating Expenses Operating Income (Loss) N ON OPERATIN G REVENUES (EXPENSES) Investment Income (Loss) Grants and Contributions Insurance Dividends Interest Expense Gain (Loss) on Sale of Asset $ 5,908,969 $ 1,406,922 $ 90,000 $ 7,405,891 $ 2,646 - - 2,646 5,406,567 1,067 76,301 - 77,368 59,392 - 3,203 - 3,203 - 5,912,682 1,486,426 90,000 7,489,108 5,465,959 419,863 751,618 1,009,506 1,180,118 905,599 127,287 2,627,730 - 33,454 86,219 78,301 77,362 30,900 24,925 33.700 11,300 34.968 16,266 5,174.021 2,275,095 738,661 (788,669) 90,000 1,171,481 2,189,624 2,418,261 1,032,886 188,244 2,627,730 - 119,673 80,154 155,663 669,411 55,825 - 45,000 809,933 51,234 - 7,449,116 4,166,003 39,992 1,299,956 297,066 543,144 (696) 839,514 1,088,261 114,780 - 114,780 - - - - 80,324 - (1,067) (1,067) (25,305) (82,953) 2,746 - (80,207) 372,171 Total Nonoperating Revenues (Expenses) 214,113 660,670 (1,763) 873,020 1,515,451 Income before Capital Contributions and Transfers 952,774 (127,999) 88,237 913,012 2,815,407 Capital Contributions from Special Assessments 42,176 - - 42,176 Capital Contributions from Outside Developers 2,122,589 4,142,915 - 6,265,504 Capital Contributions (to)/from Governmental Funds (8,751) (144,213) - (152,964) 277,302 Transfers In - - - - 1,000,000 Transfers Out (200.000) (200,000) - (400,000) Change in Net Position 2,908,788 3,670,703 88,237 6,667,728 4,092,709 NET POSITION Beginning of Year 56,404,019 72,491,853 (122,457) 128.773,415 52,545,286 End of Year $ 59,312,807 $ 76,162,556 $ (34,220) $ 135,441,143 $ 56,637,995 Adjustment to Reflect the Consolidation of Internal Service Fund Activity Related to Enterprise Funds (See Note 2d) 68,031 Governmental Activities Contribution Revenue Reported Above 152,964 Transfers In of Capital Assets from Governmental Activities (152,964) Change in Net Position - Business -Type Activities $ 6,735,759 The Notes to the Financial Statements are an integral part of this statement. 43 94 CITY OF SHAKOPEE STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS For the Year Ended December 31, 2024 Business -Type Activities - Enterprise Funds Governmental Activities - Storm Internal Sewer Drainage Refuse Total Service Funds CASH FLOWS - OPERATING ACTIVITIES Receipts from Customers and Users Receipts from Interfund Services Payments to Suppliers Payments to Employees Net Cash Flows - Operating Activities CASH FLOWS - NONCAPITAL FINANCING ACTIVITIES Payment Received (Paid) on Interfund Loan Grants for Operating Purposes Receipts from Interfund Services Payments for Interfund Services Interest Paid on Interfund Loan Insurance Dividends Transfer from Other Funds Transfer to Other Funds Net Cash Flows - Noncapital Financing Activities CASH FLOWS - CAPITAL AND RELATED FINANCING ACTIVITIES Trunk Charges Capital Related Special Assessments Principal paid on Leases and SBTTA Proceeds from Disposal of Capital Assets Acquisition of Capital Assets Net Cash Flows - Capital and Related Financing Activities CASH FLOWS - INVESTING ACTIVITIES Interest Received (Loss) Net Cash Flows - Investing Activities Net Change in Cash and Cash Equivalents CASH AND CASH EQUIVALENTS Beginning of Year End of Year $ 5,083,444 $ 1,516,035 $ 90,000 $ 6,689,479 $ 5,428,165 - - - 662,730 (3,967,665) (277,040) - (4,244,705) (2,781,853) (481,840) (751,148) - (1,232,988) 633,939 106,703 (18,331) (200,000) (111,628) 487,847 90,000 1,211,786 3,309,042 236,237 (106,703) 236,237 (60,000) 114,780 - 114,780 18,331 18,331 - (18,331) (1,067) (1,067) (12,375) - - 80,324 - - 1,000,000 (200,000) - (400,000) 151,017 (89,439) (50,050) 1,007,949 154,223 1,166,231 - 1,320,454 42,176 - 42,176 - - - (275,125) - 78,000 - 78,000 771,261 (1,320,213) (1,189,320) - (2,509,533) (10,466,320) (1,123,814) 54,911 297,765 526,793 297,765 526,793 (303,738) 1,220,568 6,469,131 12,122,904 (1,068,903) (9,970,184) (561) 823,997 1,112,046 (561) 823,997 1,112,046 916,830 (4,541,147) 18,592,035 25,560,462 $ 6,165,393 $ 13,343,472 $ - $ 19,508,865 $ 21,019,315 The Notes to the Financial Statements are an integal part of this statement. 44 95 CITY OF SHAKOPEE STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (Continued) For the Year Ended December 31, 2024 Business -Type Activities - Enterprise Funds RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS - OPERATING ACTIVITIES Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows - Operating Activities: Depreciation/Amortization Expense Pension Expense Changes in: Accounts Receivable Due from Other Governments Special Assessments Due to Other Governments Accounts and Contracts Payable Inventory Prepaid Expenses Compensated Absences Payable Net OPEB Obligation Total Adjustments Net Cash Flows - Operating Activities NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Contributions of Capital Assets from Developers Transfer of Capital Assets Transfer of Lease Assets Transfer of SBITA Assets Acquisition of Capital Assets on Account Issuance of SBITA Right -to -use Assets Issuance of SBITA Liability Sewer Storm Drainage Refuse Total Governmental Activities - Internal Service Funds $ 738,661 $ (788,669) $ 90,000 $ 39,992 $ 1,299,956 1,009,506 1,180,118 - 2,189,624 2,418,261 (65,413) 3,162 - (62,251) (3,299) 35 24,473 24,852 (850,412) 4,722 79,034 2,906 (302,153) 63,589 106 (176) 6,249 121 (2,813) (2,813) (104,722) 1,276,516 (3,264) (37,794) 49,325 (845,690) 81,940 258 (238,564) (1,084,764) (70) - 50,395 6,370 662,730 (5,626) 1,171,794 2,009,086 $ 633,939 $ 487,847 $ 90,000 $ 1,211,786 $ 3,309,042 $ 1,968,366 $ 2,976,684 $ (8,751) (144,213) 156,457 373,562 $ 4,945,050 (152,964) 530,019 260,280 (7,022) (10,000) 805,724 365,720 (365,720) The Notes to the Financial Statements are an integral part of this statement. 45 96 CITY OF SHAKOPEE STATEMENT OF FIDUCIARY NET POSITION December 31, 2024 Custodial Fund Southwest Metro Drug Task Force ASSETS Cash and Investments $ 27,959 LIABILITIES Due to Other Governments $ 27,959 NET POSITION Restricted for Task Force $ The Notes to the Financial Statements are an integral part of this statement. 97 46 CITY OF SHAKOPEE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Year Ended December 31, 2024 Custodial Fund Southwest Metro Drug Task Force Additions Forfeitures Total Additions Deductions Vehicle Expenses Supplies and Evidence Insurance Training Capital Outlay Transfer Task Force to Scott County Total Deductions $ 12,054 12,054 16,166 8,470 3,670 3,669 3,254 577,721 612,950 Net Increase (Decrease) in Fiduciary Net Position (600,896) NET POSITION Net Position, January 1 600,896 Net Position, December 31 $ The Notes to the Financial Statements are an integral part of this statement. 47 98 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Shakopee is a statutory city governed by an elected mayor and four council members. The accompanying financial statements present the government entities for which the government is considered to be financially accountable. The financial statements present the City and its component units. The City includes all funds, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organization's governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities or level of services performed or provided by the organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, certain organizations have been defined and are presented in this report as follows: Blended Component Unit — Reported as if they were part of the City. Discretely Presented Component Unit — Entails reporting the component unit financial data in statements separate from the financial date of the City. Joint Ventures and Jointly Governed Organizations — The relationship of the City with the entity is disclosed. For each of the categories above, the specific entities are identified as follows: 1. Blended Component Unit The Shakopee Economic Development Authority (EDA) was organized to promote development, improve housing and reduce blighted areas in the City. It is included by reason of the City Council having final approval for Shakopee EDA actions and the Shakopee EDA Board being comprised entirely of City Council Members. City staff handles Shakopee EDA activity including Shakopee EDA funds and the City approves Shakopee EDA tax levies and bonding activity. The City has operational responsibility of the EDA. The activity of the Shakopee EDA is shown in the Shakopee EDA Special Revenue Fund in the City's financial statements. No separate financial statements for the Shakopee EDA are issued. For any information desired beyond what is presented in this report, contact the Finance Director for the City of Shakopee at 485 Gorman St., Shakopee, Minnesota 55379. 99 48 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued) 2. Discretely Presented Component Unit The electric and water utilities of the Shakopee Public Utilities Commission (SPUC) are self-supporting entities and collectively comprise separate enterprise funds of the City of Shakopee (the "City"). The utility provides electric and water operations to properties within the City as well as electric distribution to certain other areas outside of the City. The utility accounts for the costs of electric and water operations on a continuing basis and is managed by the SPUC. The SPUC Board consists of five members who serve three year consecutive terms. SPUC is presented as a discretely presented component unit because of the nature and significance of its relationship with the primary government. Separate financial statements are included in this report for the SPUC Funds to emphasize that it is legally separate from the City. Based on its relationship with the City, it would be misleading to exclude SPUC as a component unit. It is this criterion that results in SPUC being reported as a discretely presented component unit. The complete financial statements can be obtained from the Shakopee Public Utility Commission, 225 Sarazin Street, Shakopee, Minnesota 55379. 3. Joint Ventures and Jointly Governed Organizations Local Government Information Systems Local Government Information Systems (LOGIS) is a joint venture of approximately 57 governmental entities that provides computerized data processing and support services to its members. Legally separate, the City does not appoint a voting majority of the Board and LOGIS is fiscally independent of the City. During 2024, the City paid $592,696 to LOGIS for services provided which is included in expenditures of the General Fund and Information and Technology Internal Service Fund. Financial statements are available by contacting LOGIS, 5750 Duluth Street, Golden Valley, Minnesota 55422. 100 49 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued) 4. Other Organizations Shakopee Volunteer Fire Department Relief Association The Shakopee Volunteer Fire Depaitiiient Relief Association (the "Association") is organized as a nonprofit organization, legally separate from the City, by its members to provide pensions and other benefits to such members in accordance with Minnesota Statutes. It is not a component unit of the City because the Board of Directors is appointed by the membership of the Association and not by the City Council. The financial oversight of the City is limited to approval authority for amending the Association bylaws when the change results in an increase in the pension benefit level requiring an increased City contribution. The Association has the authority to levy its own taxes for pensions and deficits and would continue to exist for its members if the City was dissolved. Because the Association is fiscally independent of the City, the financial statements of the Association have not been included within the City's reporting entity. On May 5, 2024, the Shakopee Volunteer Fire Department Relief Association dissolved. The Pension Plan Assets were fully distributed in accordance with the Association Bylaws and Minnesota State Statute B. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the City. The fiduciary funds are only reported in the Statement of Fiduciary Net Position at the fund financial statement level. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Interest on general long-term debt is considered an indirect expense and is reported separately in the Statement of Activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated revenues are reported as general revenues rather than program revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 101 50 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government -Wide and Fund Financial Statements (Continued) The South West Metro Task Force Fund is presented in the fiduciary fund financial statements. Since, by definition, these assets are being held for the benefit of a third party (other local governments, private parties, etc.) and cannot be used to address activities or obligations of the City, this Fund is not incorporated into the government -wide statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The Custodial Funds report using the economic resources measurement focus and the accrual basis of accounting. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current period. Only the portion of special assessments receivable due within the current period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Description of Funds: Major Governmental Funds: General Fund — This Fund is the City's primary operating fund. It accounts for all financial resources of the general City, except those required to be accounted for in another fund. 102 51 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Description of Funds: (Continued) Major Governmental Funds: (Continued) Economic Development Authority Special Revenue Fund — This Fund accounts for development, improve housing and reduce blighted areas of the City. It also accounts for the River City Centre tenants. Taxes, grants lease revenue and contributions are the dedicated funding sources. Capital Improvement Capital Project Fund— This Fund accounts for the capital projects of the City not accounted for in separate capital funds. TIF District No. 18 Canterbury Commons Capital Project Fund — This Fund accounts for tax increment financing district number 18- Canterbury Commons development project. Proprietary Funds: Sewer Fund — This Fund accounts for operations of the City's sewer utility. Storm Drainage Fund — This Fund accounts for the activities of the City's storm drainage utility. Refuse Fund — This Fund accounts for operations associated with the City's garbage carts and recycling operations. Internal Service Funds: Equipment Fund — This Fund accounts for the City's funds accumulated for the acquisition of larger pieces of equipment. Buildings Fund — This Fund accounts for the City's funds accumulated for construction, improvement or major repairs of major public buildings. Park Assets Fund — This Fund accounts for the City's funds accumulated for the replacement of park assets. Employee Benefits Fund — This Fund accounts for the City's funds accumulated for compensated absences and OPEB. Information and Technology Fund — This Fund accounts for the City's funds accumulated for information technology resources. Self Insurance Fund —This Fund is used to account for all revenues and expenses associated with premiums, deductibles and claims for general liability and workers compensation policy through LMCIT. 103 52 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Description of Funds: (Continued) Internal Service Funds: (Continued) The City's internal service funds are allocated between governmental and business -type activities and are combined, as allocated in Note 2, with the respective governmental activities and business -type activities in the government -wide financial statements. Fiduciary Fund: Southwest Metro Drug Task Force Custodial Fund — This Fund accounts for the activity related to the task force held by the City in a strictly custodial capacity. Component Unit Funds: Electric Fund — This Fund accounts for the operations of the SPUC's electric utility. Water Fund — This Fund accounts for the operations of the SPUC's water utility. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are payments, where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the City's utility function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. 104 5.3 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity 1. Deposits and Investments Cash and investments include balances from all funds that are combined and invested to the extent available in various securities as authorized by state law. Earnings from the pooled investments are allocated to the individual funds based on the average of month -end cash and investment balances. All funds of the City are included in the pooled investments. The City and Component Unit's cash and cash equivalents are considered to be cash on hand, demand deposits and highly liquid debt instruments purchased with original maturities of three months or less from the date of acquisition. Certain investments for the City and Component Unit are reported at fair value as disclosed in Note 4. The City and Component Unit categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The Hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are valued using matrix pricing model; Level 3 inputs are significant unobservable inputs. Minnesota Statutes authorizes the City and Component Unit to invest in obligations of the U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements and commercial paper of the highest quality with a maturity of no longer than 270 days and in the Minnesota Municipal Money Market Fund. In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities are valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14 -day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as "advances to/from other funds". All other outstanding balances between funds are reported as "due to/from other funds". Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "interfund balances". All trade and property tax receivables are shown at a gross amount since both are assessable to the property taxes and are collectible upon the sale of the property. The City levies its property tax for the subsequent year during the month of December. December 30 is the last day the City can certify a tax levy to the County Auditor for collection the following year. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. The property tax is recorded as revenue when it becomes measurable and available. Scott County is the collecting agency for the levy and remits the collections to the City three times a year. The tax levy notice is mailed in March with the first half of the payment due on May 15 and the second half due on October 15. Taxes not collected as of December 31 each year are shown as delinquent taxes receivable. The County Auditor prepares the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The County Auditor also collects all special assessments, except for certain prepayments paid directly to the City. The County Auditor submits the list of taxes and special assessments to be collected on each parcel of property to the County Treasurer in January of each year. 3. Inventory, Prepaid Items and Other Assets Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Prepaid expenditures of governmental funds are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. Inventories of enterprise funds are valued at average cost using the first in, first out (FIFO) method. Inventory in the governmental funds are recorded as an expenditure when consumed rather than when purchased. Other assets include the Emergency Repairs Account and the asset and related amortization relating to the Electric Plant Acquisition. 106 53 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 4. Land Held for Resale Land is acquired by the City for subsequent resale for redevelopment purposes. Land held for resale is reported as an asset at the lower of cost or estimated realized value in the fund that acquired it. 5. Restricted Assets Certain cash and investments are classified as restricted. The Component Unit Electric Fund has monies restricted for customer deposits and debt service. The Component Unit Water Fund has monies restricted for water production and trunk distribution facility acquisition, based on trunk and connection fees collected from users, construction projects and debt service. 6. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the City, excluding the component unit, as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of two years. Capital assets for the component unit are defined as assets with an initial, individual cost of more than $3,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. Intangible right to use assets are recorded at the value of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives. Intangible right to use assets are depreciated over the life of the lease. Assets Years Buildings Park Buildings Building Improvements Light Vehicles Machinery and Equipment Electrical Utility Distribution System Water Utility Distribution System Utility General Equipment Infrastructure Fire Trucks 30-50 30 25 4-10 4-20 10-40 20-75 4-40 30-75 20-25 107 5t) CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 7. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has two items that qualify for reporting in this category. The City presents deferred outflows of resources on the Statement of Net Position for the deferred charge related to pensions and other postemployment benefit resources. The Commission has one item that qualifies related to pensions. Accordingly, the items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position. These items result from actuarial calculations and current year pension contributions and OPEB contributions made subsequent to the measurement dates. In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The governmental funds report unavailable revenues from three sources: property taxes, special assessments, and intergovernmental revenue. The City recognizes a deferred lease receivable under both the modified accrual and full accrual basis. Resources received in advance is reported in both the governmental fund financial statements and within the government -wide financial statements. This item are reported for amounts that have been received before time requirements are met, but after all other eligibility requirements have been met. The Commission presents deferred inflows of resources related to pensions, leases receivable and regulatory collections. The City presents deferred inflows of resources on the Statements of Net Position for deferred inflows of resources related to pensions and other postemployment benefit resources. Deferred inflows of resources related to pensions results from the net difference between projected and actual earnings on plan investments, changes in proportionate share and the differences between expected and actual economic experience. 8. Compensated Absences Vacation and sick leave benefits are recorded as expenditures in the Employee Benefits Internal Service Fund and governmental funds when the obligations have matured and are expected to be liquidated with expendable financial resources. The liability for compensated absences reported in the government -wide and proprietary fund statements consists of unpaid, accumulated annual vacation, sick and compensatory balances. The liability has been calculated using the vesting method, in which leave amounts for employees eligible to receive termination payments and used sick leave during the year are included and an additional liability for nonvested leave that the employer considers more likely than not that the nonvested leave will be used. The current portion of this liability is based on an estimate of the cost during the upcoming year. 108 5. CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE l - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 8. Compensated Absences (Continued) Under the City's personnel policy and union contracts, City employees are granted vacation and sick in varying amounts based on their length of service. Certain employees are also granted compensatory time. Vacation accruals for full-time employees vary from 10-30 days per year based on years of service. Sick leave accrual is 12 days per year. The City compensates employees who leave municipal service in varying amounts based on their length of service. 9. Long -Term Obligations In the government -wide financial statements and proprietary fund types in the fund financial statements, long- term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietary fund type Statement of Net Position. Enterprise fund bond premiums and discounts, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures. 10. Leases The City determines if an arrangement is a lease at inception. Lessee leases are included in Right -to -use lease assets (lease assets) and lease liabilities in the statement of net position. Lessor leases are included in lease receivables and deferred inflow of resources in the statement of net position and fund financial statements. Lease receivables represent the City's claim to receive lease payments over the lease term, as specified in the contract, in an exchange or exchange -like transaction. Lease receivables are recognized at commencement date based on the present value of expected lease payments over the lease term, reduced by any provision for estimated uncollectible amounts. Interest revenue is recognized ratably over the contract term. Deferred inflows of resources related to leases are recognized at the commencement date based on the initial measurement of the lease receivable, plus any payments received from the lessee at or before the commencement of the lease term that relate to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term. The deferred inflows related to leases are recognized as lease revenue in a systematic and rational manner over the lease term. 109 58 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 10. Leases (Continued) Lease assets represent the City's control of the right to use an underlying asset for the lease term, as specified in the contract, in an exchange or exchange -like transaction. Lease assets are recognized at the commencement date based on the initial measurement of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs. Lease assets are amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. Lease liabilities represent the City's obligation to make lease payments arising from the lease. Lease liabilities are recognized at the commencement date based on the net present value of expected lease payments over the lease term, less any lease incentives. Interest expense is recognized ratably over the contract term. The City has elected to recognize payments received for short-term leases with a lease term of 12 months or less as revenue as the payments are received. These leases are not included as lease receivables or deferred inflows on the statements of net position and fund financial statements. The individual lease contracts do not provide information about the discount rate implicit in the lease. Therefore, the Entity has elected to use their incremental borrowing rate to calculate the present value of expected lease payments. 11. Subscription Based Information Technology Arrangements (SBITA) The City determines if an arrangement is a SBITA at inception. SBITA's are included in Right -to -use subscription assets (SBITA assets) and SBITA liabilities in the statement of net position. SBITA assets represent the City's control of the right to use an underlying asset for the subscription term, as specified in the contract, in an exchange or exchange -like transaction. SBITA assets are recognized at the commencement date based on the initial measurement of the subscription liability, plus any payments made at, or before, the commencement of the subscription term and certain direct costs. SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying asset. SBITA liabilities represent the City's obligation to make lease payments arising from the subscription. SBITA liabilities are recognized at the commencement date based on the net present value of expected subscription payments over the subscription term, less any subscription incentives. Interest expense is recognized ratably over the contract term. The individual subscription contracts do not provide information about the discount rate implicit in the subscription. Therefore, the City has elected to use their incremental borrowing rate to calculate the present value of expected subscription payments. 110 59 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 12. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General fund is typically used to liquidate governmental pension liability. 13. Other Postemployment Benefits Under Minnesota statute 471.61, subdivision 2b, public employers must allow retirees and their dependents to continue coverage indefinitely in an employer -sponsored health care plan, under the following conditions: 1) Retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in a group plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees are able to add dependent coverage during open enrollment period or qualifying life event prior to retirement. All premiums are funded on a pay-as-you-go basis. The liability was determined, in accordance with GASB Statement No. 75, at December 31, 2023. The General fund is typically used to liquidate governmental other postemployment benefits payable. The City has no assets accumulated in a trust that meets the criteria in GASB 75. 14. Net Position Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources in the government -wide financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization, reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. Net position is reported as restricted in the government -wide financial statement when there are limitations on their use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. 15. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenditures/ expense during the reporting period. Actual results could differ from those estimates. 111 60 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (Continued) 16. Fund Equity a. Classification In the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in those funds can be spent. Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form. Amounts that are restricted to specific purposes either by a) constraints placed on the use of resources by creditors, grantors, contributors, or laws or regulations of other governments or b) imposed by law through enabling legislation are classified as restricted fund balances. Amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council (highest level of decision making authority) through resolution are classified as committed fund balances. Amounts that are constrained by the City's intent to be used for specific purposes but are neither restricted nor committed are classified as assigned fund balances. Assignments are made by the City's Finance Director based on the City Council's direction or by City Council expressing its intent. Positive unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed or assigned to a specific purpose in the General Fund. For governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. The City's policy is to consider unrestricted fund balance to be spent by City Council action, appropriations or emergency situations. The City applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned and unassigned) are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. b. Minimum Fund Balance The City's target General Fund balance is to maintain an unassigned level between 35% (minimum) and 50% of the ensuing year's budgeted expenditures. This level is to provide working capital for cash flow, expected decline in revenues and unforeseen expenditures such as natural disasters. Replenishing fund balance when it falls below the target level shall be accomplished by interfund transfers or budgeting for expenditures and other uses to be less than revenues or other sources over a period not to exceed three years. Annually the City Council will decide what to do with the General Fund unassigned fund balance that exceeds 50% of the ensuing year's expenditure budget. Any excess fund balance transfers will not be used as a funding source for ongoing recurring expenditures. 112 6i CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government -Wide Statement of Net Position The governmental fund Balance Sheet includes reconciliation between fund balance — total governmental funds and net position — governmental activities as reported in the government -wide Statement of Net Position. One element of that reconciliation explains that "Internal Service Funds are used by management to charge the costs of providing certain services for the City." Net Position of the Internal Service Funds $ 56,637,995 Less Portion Loss Related to Business -Type Activities (840,594) Net Adjustment to Increase Fund Balance- Total Governmental Funds to Arrive at Net Position- Governmental Activities $ 55,797,401 B. Explanation of Certain Differences between the Governmental Fund Statements of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities Another element of that reconciliation states that "Internal Service Funds are used by management to charge the costs of providing various services for the City." The details of this difference are as follows: Change in Net Position of the Internal Service Fund $ 4,092,709 Less the Net of Indirect Revenues and Expense (68,031) Net Adjustment to Decrease Net Change in Fund Balances - Total Government Funds to Arrive at Changes in Net position of Government Activities $ 4,024,678 C. Explanation of Certain Differences between the Proprietary Fund Statements of Net Position and the Government -Wide Statement of Net Position The proprietary fund Statement of Net Position includes reconciliation between net position — total enterprise funds and net position of business -type activities as reported in the government -wide Statement of Net Position. The description of the sole reconciliation is "adjustment to reflect the consolidation of internal service fund activities related to enterprise funds." The details are as follows: Internal Payable Representing Costs less than Charges to Business- Type Activities- Current Year $ 840,594 113 62 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED) D. Explanation of Certain Differences between the Proprietary Fund Statements of Revenues, Expenses, and Changes in Net Position and the Government -Wide Statement of Activities Another element of that reconciliation states that "Internal Service Funds are used by management to charge the costs of providing various services for the City." The details of this difference are as follows: Net adjustment to Increase Net Change in Fund Balances- Total Enterprise Funds to Arrive at Changes in Net Position of Business- Type Activities NOTE 3 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annually appropriated budgets are adopted for the General Fund and EDA. Budgeted amounts present the originally adopted budget and final amended budget approved by the City Council. The City does not use encumbrances. Budgeted expenditure appropriations lapse at year-end. $ 68,031 1. In August of each year, City staff submits to the City Council, a proposed operating budget for the year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them for the upcoming year. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution after obtaining taxpayer comments. 4. Expenditures may not legally exceed budgeted appropriations at the division level. The division level expenditures are presented in the schedule of revenues, expenditures and changes in fund balances — budget and actual — general fund. No fund's budget can be increased without City Council approval. The City Council may authorize transfer of budgeted amounts between divisions within any fund. Management may amend budgets within a division level, so long as the total division budget is not changed. 5. An annual budget is adopted for the General Fund and EDA. Annual appropriated budgets are not adopted for Debt Service Funds because effective budgetary control is alternatively achieved through bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls and budgets are not adopted. 6. Budgeted amounts are as originally adopted and as amended in December by the City Council. Budgeted expenditure appropriations lapse at year-end. 114 6.1 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED) B. Deficit Net Position and Fund Balance The TIF District No. 18 Canterbury Commons capital project fund had a negative fund balance of $6,577,816 on December 31, 2024 as a result of construction on River City Centre and roads in the Canterbury district. Future tax increment revenues are anticipated to eliminate this deficit. The TIF District No. 19 Riverfront capital project fund had a negative fund balance of $1,559,223 on December 31, 2024 as a result of pubic infrastructure costs. Future tax increment revenues are anticipated to eliminate this deficit. The TIF District No. 20 Enclave capital project fund had a negative fund balance of $2,273,826 on December 31, 2024 as a result of lot improvements at the former city hall site. Future tax increment revenue is anticipated to eliminate this deficit. The Refuse enterprise fund had a negative net position of $34,220 on December 31, 2024 as a result of an agreement with the refuse hauler to purchase garbage carts from the city. The city will receive an annual cart fee payment which is used to pay off the advance to the sewer fund and is anticipated to eliminate this deficit. The Employee Benefits internal service fund had a negative net position of $1,308,316 on December 31, 2024. This deficit has been in place for many years and is not expected to be resolved. Management's position is that the cash balance should be sufficient enough to cover the current compensated absences and not necessarily the noncurrent portion of compensated absences. C. Excess of Expenditures Over Appropriations For the year ended December 31, 2024 expenditures exceeded appropriations in the following fund: Excess of Expenditures Over Budget Actual Appropriations Economic Development Authority $ 1,011,450 $ 1,032,179 $ 20,729 The EDA board approved major improvements to the building at River City Centre. The excess expenditures were funded from a transfer from TIF District No. 18 Canterbury Commons Capital Project Fund. CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 4 - DEPOSITS AND INVESTMENTS A. Deposits In accordance with applicable Minnesota Statutes, the City and the Component Unit maintains deposits at depository banks authorized by the City Council and the Commissioners. Custodial Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligation to the holder of the investment. Minnesota Statutes 118A.04 and 188A.05 limit investments that are in the top two ratings issued by nationally recognized statistical rating organizations. The City's investment policy references Minnesota Statutes and further limits the types of investments that the City is allowed to invest in. The Commission has a deposit policy that requires the Commission's deposits to be collateralized as required by Minnesota Statues 118.03 for an amount exceeding FDIC, SAIF, BIF, FCUA, or other federal deposit coverage. As of December 31, 2024, the City and Commission's bank balances were not exposed to custodial credit risk because they were insured through Federal Deposit Insurance Corporation (FDIC), National Credit Union Association (NCUA) and properly collateralized with securities held by the pledging financial institutions' trust departments or agents in the City's name. As of December 31, 2024, the City had the following deposits: City Deposits Component Unit Deposits $ 3,048,748 13,542,181 Total Deposits $ 16,590,929 B. Investments As of December 31, 2024, the City held the following investments: Pooled Investments: Certificate of Deposit Money Market Fund Agencies FFCB FAMC FHLB FHLMC FNMA TVA Agencies- Mortgage Backed FHLMC FNMA SBA Municipal Bond US Treasury Notes Total Investments Years to Maturity Less than Value One Year 1-5 Years Moody's 5-10 Years 10-15 Years Concentration Rating $ 17,218,230 $ 7,596,956 $ 9,371,633 249,641 5,051,249 5,051,249 - 8,271,687 1,989,410 607,434 - 13,755,301 3,993,163 1,649,881 1,649,881 5,724,578 3,052,692 987,050 987,050 416,876 3,104,848 243,865 17,554,081 2,276,507 12,708,816 3,058,588 $ 87,293,896 $ 29.655,496 4,013,859 2,268,418 607,434 - 7,638,954 2,123,184 596,408 2,075,478 6,726 410,150 617,248 1,765,116 243,865 10,867,295 4,410,279 8,455,760 1,194,468 $ 42,175,317 $ 14,740,599 722,484 $ 722,484 19.70% NR 5.79% NR 9.48% AAA 0.70% AAA 15.76% AAA 1.89% AAA 6.56% AAA 1.13% AAA 0.48% AAA 3.56% AAA 0.28% AAA 20.11% AAA-AA3 14.56% NR 116 65 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 4 - DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) As of December 31, 2024, the component units had the following investments: Years to Maturity Pooled Investments: 4M Fund 4M Plus Fund Money Market Fund Municipal Bonds Commercial Paper US Treasuries US Agencies Total Investments Less than Value One Year $ 2,609,275 $ 2.609,275 8,994,140 8 994,140 3,292,189 3,292,189 660,501 509,193 4,936,879 4,936,879 45,184,864 8,779,528 6,492,381 2.855.919 $ 72,170,229 $ 31,977,123 1-5 Years $ 151,308 Moody's 5-10 Years 10-15 Years Concentration Rating $ $ 36,405,336 3,492,560 143,902 $ 40,049,204 $ 143,902 3.61% NR 12.46% NR 4.56% NR 0.92% AA 6.84% N/A 62.61% N/A 9.00% AAA The City's investment policy, which covers all funds except the component units, addresses the following risks. The City's component units also have a formal policy to address the following risks. Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligation to the holder of the investment. Minnesota Statutes 118A.04 and 188A.05 limit investments that are in the top two ratings issued by nationally recognized statistical rating organizations. The City's investment policy references Minnesota Statutes and further limits the types of investments that the City is allowed to invest in. The Commission's policy states to ensure safety, it is the policy of the Shakopee Public Utilities Commission that when Considering an investment, all depositories under consideration be cross-checked against existing investments to make certain that funds in excess of insurance limits are not made in the same institution unless collateralized as outlined below. Furthermore, the Shakopee Public Utilities Commission will approve all financial institutions, brokers, and advisers with which the Shakopee Public Utilities Commission will do business. Custodial Credit Risk — Investments: For an investment, this is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policy states all securities purchased, including appropriate collateral, shall be placed with an independent third party for custodial safekeeping. The Commission's policy states they will minimize risk by only purchasing investments that are held in safekeeping with a Federal Reserve bank, United States Bank with corporate trust powers, a primary reporting dealer to the Federal Reserve Bank of New York, or a broker dealer having its principal executive office in Minnesota and that designated brokers have insurance through the SIPC (Securities Investor Protection Corporation). As of December 31, 2024, all investments of the City and the component units were insured, registered and held by the City or its agent and in the City's name, or by the SPUC and in the SPUC's name. 117 6b CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 4 - DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Interest Rate Risk: This is the risk that changes in market interest rates will adversely affect the fair value of an investment. The City's policy states the investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. To the extent possible, the City shall attempt to match its investments in short-term operating funds with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than ten years from the date of purchase. Long-term funds shall not be invested in securities exceeding 10 years in modified duration, at time of purchase. The Commission's policy states that will minimize interest rate risk by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operation, thereby avoiding the need to sell securities on the open market prior to maturity. Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of an investment in a single issuer. According to the City's investment policy, the aggregate investment portfolio shall be diversified by: • Limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding securities backed by the U.S. government). • Limiting investments in securities that have higher credit risks. • Investing in securities with varying maturities. • Continuously investing a portion of the portfolio in readily available funds, such as Local Government Investment Pools (LGIP), money market funds or repurchase agreements to ensure appropriate liquidity is maintained in order to meet ongoing obligations. • Having all investments, other than those in direct obligations or agencies of the United States, secured by collateral or repurchase agreements, shall not exceed 50% of the aggregate investment portfolio. Mortgage backed securities shall not exceed 30% of the aggregate investment portfolio, at the time of investment. • Limiting investments in any one corporation to 5% of the aggregate investment portfolio. The Commission's policy states they will minimize risk by only purchasing investments that are held in safekeeping with the Federal Reserve bank, United States Bank with corporate trust powers, a primary reporting dealer to the Federal Reserve Bank of New York, or a broker dealer having its principal executive office in Minnesota and that designated brokers have insurance through a SIPC (Securities Investor Protection Corporation). As of December 31, 2024 the City held investments that exceeded 5% of its total investments for all funds as noted in the table on the previous page. The component units' investments noted in the table above exceeded 5% of its total investments as of December 31, 2024. 118 6"/ CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 4 - DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) The City has the following recurring fair value measurements as of December 31, 2024: Fair Value Measurement Using Value Level 1 Level 2 Level 3 Investments at Fair Value: Certificate of Deposit $ 17,218,230 $ - $ 17,218,230 $ Agencies FFCB 8,271,687 - 8,271,687 FAMC 607,434 - 607,434 FHLB 13,755,301 - 13,755,301 FHLMC 2,066,757 - 2,066,757 FNMA 8,829,426 - 8,829,426 TVA 987,050 - 987,050 SBA 243,865 - 243,865 Municipal Bond 17,554,081 - 17,554,081 US Treasury Notes 12,708,816 12,708,816 Total/Subtotal 82,242,647 $ 12,708,816 $ 69,533,831 $ Investments at Amortized Cost: Money Market Fund 5,051,249 Total $ 87,293,896 The Commission has the following recurring fair value measurements as of December 31, 2024: Fair Value Measurement Using Value Level 1 Level 2 Level 3 Investments at Fair Value: Agencies $ 6,492,381 $ - $ 6,492,381 $ Municipal Bond 660,501 - 660,501 US Treasury Notes 45,184,864 45,184,864 Total/Subtotal 52,337,746 $ 45,184,864 $ 7,152,882 $ Investments at Amortized Cost: 4M 2,609,275 4M Plus 8,994,140 Commercial Paper 4,936,879 Money Market Fund 3,292,189 Total $ 72,170,229 119 68 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 4 - DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Publicly traded assets are valued in accordance with market quotation or valuation methods from services believed by our broker to be reliable. Assets, which are not publicly traded, may reflect values from other external sources or special valuations prepared by our broker. Assets for which a current value is not available may be reflected as not valued, at par value, or at a nominal value of $1.00. The following is a summary of total deposits and investments as of December 31, 2024: City Deposits Component Unit Deposits City Investments Component Unit Investments City Petty Cash Component Unit Petty Cash $ 3,048,748 13,542,181 87,293,896 72,170,229 1,540 2,000 Total Deposits and Investments $ 176,058,594 Deposits and investments are presented in the December 31, 2024 basic financial statements as follows: Primary Fiduciary Component Government Funds Unit Total Statement of Net Position: Cash and Investments Restricted Cash and Investments $ 90,316,225 $ 27,959 $ 67,372,717 $ 157,716,901 18,341,693 18,341,693 Total $ 90,316,225 $ 27,959 $ 85,714,410 $ 176,058,594 NOTE 5 — RECEIVABLES/UNAVAILABLE REVENUE A. Taxes, Assessments, Notes Receivable, Intergovernmental Revenue Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current year, the various components of unavailable revenue reported in the governmental funds were as follows: General Fund Economic Development Authority Capital Improvement Nonmajor Funds Total Delinquent Delinquent Deferred Property Special Special Intergovernmental Taxes Assessments Assessments Revenue Total 98,855 1,922 2,888 108 677,893 8,139 666,779 21,455 - $ 123,198 1,922 938,733 1,616,734 674,918 $ 100,777 $ 11,135 $ 1,366,127 $ 938,733 $ 2,416,772 120 69 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 5 - RECEIVABLES/UNAVAILABLE REVENUE (CONTINUED) B. Lease Receivable As of December 31, 2024 the City had the following lease receivable: Description Shakopee Cell Towers Ice Arena Dryland Room Ice Arena Room Rental River City Centre Sand Venture Current Year Other Issue Discount Inflow of Payments Balance at Date Rate Resources Received Year End 01/01/22 04/01/22 09/19/23 08/01/22 10/01/24 1.80% 1.30% 5.01% 0.44%-1.80% 4.08% $ 12,904 $ 25,061 14,294 358,252 7,952 1,260 $ 235,240 57,753 14,260 1,949,996 86,604 $ 2,343,853 Under the Shakopee cell tower lease, the vendor pays the city $962 per month for 2 months for operating cell tower leases in the City of Shakopee. Each February lease payments increase 4% until the final payment on January 2040. Each term is 5 years and if cancelled must be cancelled prior to the start of the term. Under the Shakopee Ice Arena Dryland Room lease, the orthopedic vendor pays the city $2,000 per month for twelve months in exchange for operating its business within a 6,100 square foot space in the dryland room of the Ice Arena building. The monthly rent increases 2.5% per year for an additional four years. The lessee makes an additional variable payment equal to 5 percent of gross sales of all unlicensed athletic training services not to exceed $6,000. Under the Ice Arena Skate School lease, the vendor pays the City $1,160 per month for twelve months in exchange for use of 3 rooms within the Ice Arena building. The monthly rent increases 2.5% per year until the lease ends on January 1, 2026. The lessee makes an additional variable payment equal to hourly ice time based on enrollment ranging from $200 per hour up to $225 per hour. Additionally variable payments ranging from $5,500 to $14,000 per month are received based on enrollment for the use of ice. Under the SandVenture lease, the retail vendor operates its business within a 3,333 square foot unit. The city is paid 6% of gross receipts with a minimum payment of $40,000 paid annually and a maximum of $60,000. Minimum and maximums increase yearly by CPI. Rent payments are not due until the lease hold improvements of $100,000 have been paid back with due rent. The lease ends September 2029. The River City Centre leases were purchased by the EDA as of August 2022. All current tenants became tenants of the city at that time. There are a total of 13 units in the space. Rent is paid by all tenants to operate their business within their designated unit of the River City Centre building. The space is the retail/commercial space on the first floors of building A and B of River City Centre. 121 70 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 5 - RECEIVABLES/UNAVAILABLE REVENUE (CONTINUED) B. Lease Receivable (Continued) Under the River City Center Building lease: * The mortgage vendor operates its business within a 1,855 square foot unit. The payment terms vary over the life of the lease. The city is paid nothing for the first four months increased to $1,314 per month for six months while the tenant is getting set up. After the introductory rate, the city is then paid $2,630 per month for twelve months increasing 3% every twelve months for 36 additional months. The lease ends May 2027. * The insurance vendor operates its business within a 1,883 square foot unit. The payment terms vary over the life of the lease. The city is paid $2,197 per month for five months while the tenant is getting set up. After the introductory rate, the city is then paid $2,275 per month for twelve months increasing 3% every twelve months for 60 additional months. The lease ends December 2028. * The retail space vendor operates its business within a 3,490 square foot unit. The payment terms vary over the life of the lease. The city is paid nothing for the first two months increased to $3,272 per month for nine months while the tenant is getting set up. After the introductory rate, the city is then paid $4,944 per month for twelve months increasing 5% every twelve months for 96 additional months. The lease ends June 2032. * The retail vendor operates its business within a 1,993 square foot unit. The payment terms vary over the life of the lease. The city is paid $3,322 per month for twelve months increasing 2.5%, 2.44%, 2.38% and 2.33% every twelve months for 48 additional months. The lease ends August 2028. * The retail vendor operates its business within a 1,721 square foot unit. The city is paid $2,438 per month for the first five months. Every January rent is increased 3% for the remaining 50 months. The lease ends February 2027. * The restaurant vendor operates its business within a 1,608 square foot unit. The city is paid $2,948 per month for the first four months. Every December rent is increased 2-3% based on the lease terms for the remaining 108 months. The lease ends November 2031. * The retail vendor operates its business within a 1,732 square foot unit. The city is paid nothing for the first three months while the tenant is getting set up. Rent is then $2,454 per month for eight months. Each July rent is increased 3% per month for 36 months. There is one last 3% increase to finish out the remaining 16 months of the lease. The lease ends October 2027. * The hospitality vendor operates its business within a 1,470 square foot unit. The city is paid $1,600 per month for 12 months. Rent is then increased to $1,650 for the next 24 months and $1,715 for the following 24 months. The lease ends April 2028. * The medical vendor operates its business within a 1,470 square foot unit. The city is paid $2,328 per month for 24 months. Rent is then increased to $2,389 for the next 24 months and $2,450 for the final 12 months. The lease ends June 2028. 122 7i CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 5 - RECEIVABLES/UNAVAILABLE REVENUE (CONTINUED) B. Lease Receivable (Continued) * The service industry vendor operates its business within a 1,290 square foot unit. The city is paid $2,150 per month for 12 months. Rent is then increased 2.5% per year for a total of 5 years. The lease ends February 2029. * The health care vendor operates its business within a 4,427 square foot unit. The city is paid $7,009 per month for twelve months increasing 2.6% per year until the end of the lease. The lease ends November 2029. The Commission, acting as lessor, leases water tower space for cellular services under long-term, non - cancelable lease agreements. The leases expire at various dates through 2038. During the year ended December 31, 2024, the Commission recognized $176,446 and $53,017 in lease revenue and interest revenue, respectively, pursuant to these contracts. Certain leases provided for increases in future minimum annual rental payments of either 3 or 4 percent. Total commissions lease receivable at year end is $2,229,418. C. Notes Receivable In 2003 the City entered into an agreement for a note receivable to be reimbursed for developing certain property located within the City. The project consisted of a twenty-two (22) unit residential, rental townhome development to be constructed primarily for the purpose of providing low- and moderate - income housing. The term of the note is the later of December 31, 2033 or the maturity date of the Minnesota Housing Finance Agency (MHFA) first mortgage loan with respect to the project. The receivable related to the note is $200,000. D. Forgivable Loan The Economic Development Authority (EDA) offers a commercial exterior improvement program which is used to encourage property owners to maintain and invest in their properties in order to promote economic growth. The program offers up to 50 percent of project costs for eligible improvements as a no -interest forgivable loan. Forgiveness of the loan takes place over a five-year period with 20 percent of the aware forgiven annually. The city may extend or reduce the repayment period based on the dollar amount of the reward. As of December 31, 2024, the balance of these loans is $217,196. There has been an allowance for doubtful accounts recorded for the same amount, as it is fully expected that these loans will be forgiven. 123 72 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 6 - CAPITAL ASSETS Governmental capital asset activity for the year ended December 31, 2024 was as follows: Governmental Activities: Capital Assets not being Depreciated/Amortized: Land Right -Of -Way Construction in Progress Total Capital Assets not being Depreciated/Amortized Capital Assets being Depreciated/ Amortized: Buildings Infrastructure Machinery and Equipment Lease Equipment (Intangible Right to Use Asset) Subscription -Based Information Technology Software Total Capital Assets being Depreciated/Amortized Less Accumulated Depreciation/ Amortization: Buildings Infrastructure Machinery and Equipment Lease Equipment (Intangible Right to Use Asset) Subscription -Based Information Technology Software Total Accumulated Depreciation/ Amortization Total Capital Assets being Depreciated/ Amortized, Net Beginning Balance (Restated) $ 25,128,216 1,209,773 10,886,747 37,224,736 74,109,424 206,082,366 28,314,146 700,214 194,183 309,400,333 21,685,299 116,643,404 12,962,179 108,700 61,300 151,460,882 157,939,451 Increases Decreases $ 891,954 $ 123,155 14,843,834 7,694,225 15,858,943 Ending Balance $ 26,020,170 1,332,928 18,036,356 7,694,225 45,389,454 3,433,748 49,016 9,453,054 4,025,386 1,276,989 36,258 440,875 20,716 77,494,156 215,535,420 31,062,543 736,472 614,342 17,389,321 1,346,721 325,442,933 1,688,378 49,016 5,960,216 1,753,133 875,978 155,698 194,740 20,716 23,324,661 122,603,620 13,839,334 264,398 235,324 9,752,165 945,710 160,267,337 7,637,156 401,011 165,175,596 Governmental Activities Capital Assets, Net $195,164,187 $ 23,496,099 $ 8,095,236 $210,565,050 124 7.1 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 6 - CAPITAL ASSETS (CONTINUED) Depreciation/amortization expense was charged to functions/programs of the City as follows: Governmental Activities: General Government Public Safety Public Works Parks and Recreation Economic Development Total Depreciation/Amortization Expense- Governmental Activities $ 531,980 886,412 6,152,200 2,117,326 64,247 $ 9,752,165 Business -type capital asset activity for the year ended December 31, 2024 was as follows: Business -Type Activities: Capital Assets not being Depreciated: Land Right -Of -Way Construction in Progress Total Capital Assets not being Depreciated Capital Assets being Depreciated: Line Rights Plant in Service Machinery and Equipment Total Capital Assets being Depreciated Less Accumulated Depreciation for: Line Rights Plant in Service Machinery and Equipment Total Accumulated Depreciation Total Capital Assets being Depreciated, Net Beginning Ending Balance Increases Decreases Balance $ 3,796,803 $ $ $ 3,796,803 507,746 - 507,746 6,589,718 1,243,297 4,351,700 3,481,315 10,894,267 1,243,297 4,351,700 7,785,864 1,368,569 1,368,569 130,233,505 10,798,295 204,293 140,827,507 4,175,437 141,745 460,244 3,856,938 135,777,511 10, 940, 040 664,537 146,053,014 749,762 24,801 - 774,563 35,974,721 1,969,069 174,175 37,769,615 2,309,175 195,754 332,156 2,172,773 39,033,658 2,189,624 96,743,853 8,750,416 506,331 40,716,951 158,206 105,336,063 Business -Type Activities Capital Assets, Net $107,638,120 $ 9,993,713 $ 4,509,906 $113,121,927 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 6 - CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to functions/programs of the City as follows: Business -Type Activities: Sanitary Sewer Storm Drainage Total Depreciation Expense- Business -Type Activities $ 1,009,506 1,180,118 $ 2,189,624 Component unit capital asset activity for the year ended December 31, 2024 was as follows: Component Unit Capital Assets not being Depreciated: Land and Land Rights Construction in Progress Total Capital Assets not being Depreciated Capital Assets being Depreciated/ Amortized: Infrastructure Equipment Subscription -Based Information Technology Software Total Capital Assets being Depreciated Less Accumulated Depreciation/ Amortization: Infrastructure Equipment Subscription -Based Information Technology Software Total Accumulated Depreciation/ Amortization Total Capital Assets being Depreciated/Amortized, Net Beginning Ending Balance Increases Decreases Balance $ 9,148,582 $ - $ - $ 9,148,582 9,270,832 8,662,975 11,940,399 5,993,408 18,419,414 8,662,975 11,940,399 15,141,990 139,431,389 19,174,536 177,151 158,428,774 39,608,454 7,285,920 243,228 46,651,146 678,042 1,271,016 55,255 1,893,803 179,717,885 27,731,472 475,634 206,973,723 57,517,524 5,753,107 345,047 62,925,584 10,778,860 744,367 - 11,523,227 84,609 191,367 55,255 220,721 68,380,993 6,688,841 111,336,892 21,042,631 400,302 74,669,532 75,332 132,304,191 Governmental Activities Capital Assets, Net $129,756,306 $ 29,705,606 $ 12,015,731 $147,446,181 Depreciation expense was charged to functions/programs of the Component Unit as follows: Component Units: Electric Water Total Depreciation Expense- Component Unit Activities $ 3,881,563 2,807,278 $ 6,688,841 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 7 - SUBSCRIPTION -BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA) The City has entered into subscription -based information technology arrangements (SBITAs) involving: • Document management software • Information technology security software • Cloud backup services software • Public safety software • Registration and management software The total of the City's subscription assets are recorded at a cost of $614,342, less accumulated amortization of $235,324. NOTE 8 — LONG-TERM DEBT A. General Obligation Bonds The City issues general obligation (G.O.) bonds to provide for financing tax increment projects, street improvements and construction of government buildings. Tax increment bonds are paid from tax increments derived from increases in the taxable valuation of property within a redevelopment area in the City. Debt service on improvement bonds is covered by special assessment against benefited properties with any shortfalls being paid from general taxes. G.O. bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as serial bonds with equal debt service payment each year. G.O. bonds currently outstanding are on the following page. 127 7t) CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 8 - LONG-TERM DEBT (CONTINUED) B. Components of Long -Term Liabilities Issue Interest Original Final Principal Due Within Date Rates Issue Maturity Outstanding One Year Governmental Activities: Bonds Payable: G.O. Tax Abatement Bonds 2016A G.O. Tax Increment Bonds: 2019A 2020A 2022A G.O. Improvement Bonds: 2022A Total Bonds Unamortized Premiums Lease Payable SBITA Payable Compensated Absences Total Governmental Activities Business -Type Activities Compensated Absences 01/21/16 3.00%-5.00% 29,500,000 02/01/36 $ 21,060,000 $ 1,425,000 10/17/19 2.25%-5.00% 4,220,000 02/01/36 3,560,000 245,000 07/02/20 2.00%-4.000/,, 8,165,000 02/01/37 7,330,000 440,000 05/19/22 3.00% 5,910,000 08/01/41 5,835,000 80,000 05/19/22 3.00% 4,090,000 02/01/33 3,695,000 395,000 41,480,000 2,585,000 1,948,047 - 360,115 140,703 269,725 129,969 3,609,085 1,624,088 $ 47,666,972 $ 4,479,760 $ 69,830 $ 31,424 Tax abatement bonds listed above were issued to finance acquisition and construction of capital facilities. Improvement bonds provided the financing for street construction projects. Tax increment bonds provided the financing for the construction of streets and utilities related to a redevelopment area in the City. For the most part, the General Fund and the Employee Benefits Internal Service Fund are typically used to liquidate governmental compensated absences payable. C. Lease Payable Description Total Lease interest Liability Rate Issue Date Payment Terms Payment Amount Current Year Additional Outflows Fire Fitness Equipment $ 11,807 10.43% 7/1/2022 48 months $671 Monthly $ - Cardio Equipment 16,766 7.48% 1/1/2022 41 months $3,395 Monthly Postage Machines 9,557 4.92% 12/1/2023 63 months $212 Monthly Body Cameras 229,091 4.37% 10/1/2023 60 months $79,718 Yearly Fleet Cameras 75,431 4.37% 10/1/2023 60 months $27,023 Yearly City Cameras 17,463 3.64% 11/27/2024 24 months $18,900 Yearly $ 360,115 The cardio equipment was leased at the Community Center. The lease is for 41 months. The lease can be renewed for an additional 30 day renewal but the City does not anticipate renewing for an additional term and the equipment will be returned. The interest rate on the lease is 7.48%. 128 7"/ CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 8 - LONG-TERM DEBT (CONTINUED) C. Lease Payable (Continued) The fitness equipment was leased at the Fire Department beginning 7/1/2022 for a term of 48 months at a fixed interest rate of 10.43%. The lease can be renewed for an additional 30 day renewal but the City does not anticipate renewing for an additional term and the equipment will be returned. The postage machines lease includes two machines, one at city hall and one at the police station beginning 12/1/2023 for a term of 63 months at a fixed interest rate of 4.92%. The lease can be renewed monthly at the end of the term but the City does not anticipate renewing for an additional term and the equipment will be returned. The body cameras were leased at the Police Department beginning 10/1/2023 for a term of 60 months at a fixed interest rate of 4.37%. The equipment will be returned at the end of the lease. The fleet cameras were leased at the Police Department beginning 10/1/2023 for a term of 60 months at a fixed interest rate of 4.37%. The equipment will be returned at the end of the lease. The city cameras were leased at the Police Department beginning 11/27/2024 for a term of 24 months at a fixed interest rate of 3.64%. The equipment will be returned at the end of the lease. D. SBITA Liability $614,342 has been recorded by the City as intangible right -to -use software arrangements in the funds noted below as capital assets. Due to the implementation of GASB Statement No. 96, these arrangements for software noted below met the criteria of a SBITA; thus, requiring it to be recorded by the City as intangible assets and a SBITA liability. These assets will be amortized over the lease terms noted below since the software will be replaced at the end of the arrangement term and replaced with upgraded software. There are no residual value guarantees in the arrangement provisions. The term ends are noted below. Description EKOS Clear Daxko Granicus Polco Microsoft Vmware Revize Total SBITA Liability 3,088 24,870 1,401 19,033 5,648 170,807 12,409 32,469 $ 269,725 Term End Term End Year 32 months 2026 2 years 2025 2 years 2025 2 years 2026 3 years 2027 3 years 2027 3 years 2027 5 years 2029 Fund Accounted General Fund General Fund General Fund General Fund General Fund TT TS Fund IT IS Fund IT IS Fund The commission recorded SBITA assets of $1,893,803 as of December 31, 2023. The SBITA assets consist of an accounting and HR information system. Management is reasonably certain that the period covered by the SBITA arrangement will end in 2033. The future subscription payments under SBITA agreements totals $1,042,788. 129 78 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 8 - LONG-TERM DEBT (CONTINUED) E. Changes in Long -Term Liabilities Long-term liability information for the year ended December 31, 2024 was as follows. Governmental Activities: Bonds Payable Unamortized Premiums Lease Payable SBITA Payable Compensated Absences Total Governmental Activities Business -Type Activities Compensated Absences Restated Beginning Balance Ending Additions Reductions Balance Duc Within One Year $ 43,960,000 $ - $ 2,480,000 $ 41,480,000 $ 2,585,000 2,117,663 - 169,616 1,948,047 - 569,207 36,258 245,350 360,115 140,703 88,814 440,875 259,964 269,725 129,969 2,946,355 2,653,390 1,990,660 3,609,085 1,624,088 $ 49,682,039 $ 3,130,523 $ 5,145,590 $ 47,666,972 $ 4,479,760 $ 63,460 $ 57,081 $ 50,711 $ 69,830 $ 31,424 F. Minimum Debt Payments for Bonds, Leases and SBITAs Debt service to maturity for outstanding G.O. bonds, lease payables and SBITA payables are as follows: Year Ending December 31, 2025 2026 2027 2028 2029 2030-2034 2035-2039 2040-2041 Governmental Bonds Principal Interest Total $ 2,585,000 $ 1,233,468 $ 3,818,468 2,690,000 1,115,644 3,805,644 2,805,000 1,000,493 3,805,493 2,905,000 899,444 3,804,444 2,990,000 805,968 3,795,968 15,690,000 2,718,599 18,408,599 9,450,000 851,441 10,301,441 2,365,000 71,475 2,436,475 Total $ 41,480,000 $ 8,696,532 $ 50,176,532 130 79 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 8 - LONG-TERM DEBT (CONTINUED) F. Minimum Debt Payments for Bonds, Leases and SBITAs (Continued) Year Ending December 31, Governmental Lease Payable Principal Interest Total 2025 $ 140,703 $ 12,188 $ 152,891 2026 108,259 6,139 114,398 2027 108,317 1,361 109,678 2028 2,469 84 2,553 2029 367 2 369 Total Year Ending December 31, $ 360,115 $ 19,774 $ 379,889 Governmental SBITA Payable Principal Interest Total 2025 $ 129,969 $ 7,937 $ 137,906 2026 114,197 2,850 117,047 2027 16,864 794 17,658 2028 8,695 205 8,900 Total $ 269,725 $ 11,786 $ 281,511 NOTE 9 — NON -EXCHANGE FINANCIAL GUARANTEE In conjunction with a Development Agreement dated as of October 1, 1997, between the Scott County Development Agency (Agency), the City of Shakopee, and the Shakopee EDA the Agency issued Bonds to finance the acquisition and construction of a mixed use project within Tax Increment Financing District No. 10. The Project consisted of the construction of 52 -units of multifamily rental housing and related parking facilities, an approximately 25,000 square foot retail facility, a public plaza, and public parking facility. The Agency issued its Governmental Development Refunding Bonds (City of Shakopee, Minnesota — General Obligation), Series 2013A (River City Centre Project), on December 26, 2013, in the original aggregate principal amount of $2,330,000 (the "Series 2013A Bonds"). The Series 2013A Bonds refunded the outstanding principal balance of the Series 2006A Bonds on February 1, 2014. The Series 2013A Bonds are secured the net revenues of the housing component of the Project and a pledge of the full faith and credit of the City. The Series 2013A Bonds are currently outstanding in the principal amount of $530,000 and mature on February 1, 2027. If housing lease revenues are insufficient to pay the principal of and interest on the Series 2013A Bonds, the City may be called upon to levy ad valorem taxes. To date, no funds of the City have been used to pay principal of or interest on the 2013A Bonds. 131 80 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 9 - NON -EXCHANGE FINANCIAL GUARANTEE (CONTINUED) The Scott County Community Development Agency (CDA) issued its Governmental Refunding Bonds (City of Shakopee, Minnesota — General Obligation), Series 2012D (Northridge Project), on November 24, 2020, in the original aggregate principal amount of $4,000,000 (the "Series 2012B Bonds"). The Series 2020B Bonds are secured the net revenues of the housing component of the Project and a pledge of the full faith and credit of the City. The Series 2020B Bonds are currently outstanding in the principal amount of $3,165,000 and mature on February 1, 2034. If housing lease revenues are insufficient to pay the principal of and interest on the Series 2020B Bonds, the City may be called upon to levy ad valorem taxes. To date, no funds of the City have been used to pay principal of or interest on the 2020B Bonds. NOTE 10 - CONDUIT DEBT OBLIGATIONS Conduit debt obligations are certain limited obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued various revenue bonds to provide funding to private -sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City has no obligation for such debt beyond the resources provided by related leases or loans. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. As of December 31, 2024, the following conduit debt was outstanding: Project St. Francis Regional Medical Center Health Care Facilities Revenue Refunding Bond Series 2014 Benedictine Health System Obligated Group Senior Housing Revenue Bonds Series 2018 Original Date of Amount Balance issue of Issue Outstanding 06/18/14 41,865,000 $ 26,110,000 12/01/18 52,440,000 51,175,000 Total NOTE 11 — INTERFUND ASSETS/LIABILITIES The composition of interfund balances as of December 31, 2024 is as follows: Receivable Fund Capital Improvement Fund Capital Improvement Fund Sewer Fund $ 77,285,000 Payable Fund Amount Economic Development Authority Fund $ 340,543 TIF District No. 18 Canterbury Commons 404,555 Refuse Fund 33,984 Total $ 779,082 The due from/due to other funds balance represents borrowing to eliminate a cash deficit. This will be repaid as funds are available. 132 81 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 12 — ADVANCE FROM/TO OTHER FUNDS The composition of advance from/to other funds as of December 31, 2024 is as follows: (1) (2) (3) (4) (5) (6) Receivable Fund General Fund Economic Development Authority Capital Improvement Fund Storm Drainage Fund General Fund Storm Drainage Fund Payable Fund Nonmaj or Governmental Funds TIF District No. 18 Canterbury Commons TIF District No. 18 Canterbury Commons Internal Service Fund TIF District No. 20 Enclave TIF District No. 20 Enclave Amount $ 1,559,223 3,561,011 2,840,550 880,000 332,449 1,940,627 Total $ 11,113,860 (1) The advance represents a long term interfund loan related to the TIF District No. 19 Riverfront agreement to be repaid over 25 years with Tax Increment Financing at a rate of 4% interest. (2) The advance represents a long term interfund loan related to the TIF District No. 18 Canterbury agreement to be repaid over 25 years with Tax Increment Financing at a rate of 5% interest. (3) The advance represents a long term interfund loan related to the TIF District No. 18 Canterbury agreement to be repaid over 25 years with Tax Increment Financing at a rate of 4% interest. (4) The advance is a long term interfund loan which was used as a financing source related to the building of the new City hall building. This will be repaid over 15 years with rent collection at rate of 1.25% interest. (5) The advance related to the TIF District No. 20 Old City Hall agreement (Enclave). This will be repaid over 25 years with Tax Increment Financing at a rate of 4% interest. (6) The advance related to the TIF District No. 20 Old City Hall agreement (Enclave). This will be repaid over 25 years with Tax Increment Financing at a rate of 3% interest. 133 82 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 13 - INTERFUND TRANSFERS Transfer In Transfer Out Governmental Funds: General Fund (1) (2) (3) (6) Economic Development Authority (2) (4) Capital Improvement (6) TIF District No. 18 Canterbury Commons (4) (5) Other Governmental Funds (3) (5) (6) Total Governmental Funds Proprietary Funds: Sewer (1) Storm Drainage (1) Total Proprietary Funds Internal Service Funds: Buildings (6) Total Internal Service Funds $ 495,553 $ 2,460,000 421,106 23,250 1,114,000 - - 1,897,875 1,822,769 72,303 3,853,428 4,453,428 200,000 200,000 - 400,000 1,000,000 1,000,000 Total $ 4,853,428 $ 4,853,428 (1) Annual transfer to finance General Fund indirect costs. (2) Transfer Minnesota Historical Society grant funds for archeological investigation (3) Transfer of Public Safety funds for new patrol officers (4) Transfer of River City Centre Project costs for reimbursement from future tax increment (5) Transfer of increment for debt service payment on tax increment bond. (6) Transfer of available fund balance for future capital projects and future debt service payment on 2022A Improvement Bonds. 134 8.3 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS The City participates in various pension plans. Total pension expense for the year ended December 31, 2024 was $4,082,658. The components of pension expense are noted in the following plan summaries. Public Employees' Retirement Association (PERA) A. Plan Description The City participates in the following cost -sharing multiple -employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). These plan provisions are established and administered according to Minnesota Statutes chapters 353, 353D, 353E, 353G, and 356. Minnesota Statutes chapter 356 defines each plan's financial reporting requirements. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. 1. General Employees Retirement Plan All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees Plan members belonging to the Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Plan The Police and Fire Plan, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the Police and Fire Plan also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. B. Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. 135 84 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) B. Benefits Provided (Continued) 1. General Employees Plan Benefits General Employees Plan requires three years of service to vest. Benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of the Step or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members receive 1.2 percent of the highest average salary for each of the first 10 years of service and 1.7 percent for each additional year. Under the Level formula, General Plan members receive 1.7 percent of highest average salary for all years of service. For members hired prior to July 1, 1989 a full retirement benefit is available when age plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced requirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by .25 percent for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of .25 percent for each month the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the cost -of -living adjustment (COLA) announced by the Social Security Administration, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. 136 83 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) B. Benefits Provided (Continued) 2. Police and Fire Plan Benefits Benefits for Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired on or after July 1, 2010, are 50 percent vested after five years of service and 100 percent vested after ten years. After five years, vesting increase by 10 percent each full year of service until members are 100 percent vested after ten years. Police and Fire Plan members receive 3 percent of highest average salary for all years of service. Police and Fire Plan members receive a full retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417 percent each month members are younger than age 55. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. C. Contributions Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. General Employees Fund Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2024 and the City was required to contribute 7.50 percent of pay for Coordinated Plan members. The City's contributions to the General Employees Fund for the year ended December 31, 2024, was $760,715. The City's contributions were equal to the required contributions as set by state statute. The Commission's contributions to the General Employees Fund for the year ended December 31, 2024, was $417,048. The Commission's contributions were equal to the required contributions as set by state statute. 2. Police and Fire Fund Contributions Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2024 and the City was required to contribute 17.7 percent for Police and Fire Plan members. The City's contributions to the Police and Fire Fund for the year ended December 31, 2024, was $1,296,505. The City's contributions were equal to the required contributions as set by state statute. 137 8t) CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs 1. General Employees Fund Pension Costs At December 31, 2024 the City reported a liability of $4,242,718 for its proportionate share of the General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non -employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $109,708. City's proportionate share of the net pension liability State of Minnesota's proportionate share of the net pension liability associated with the City $ 4,242,718 109,708 Total $ 4,352,426 The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023 through June 30, 2024 relative to the total employer contributions received from all of PERA's participating employers. The City's proportion was 0.1148 percent, which was an increase of percent at the end of the measurement period and 0.1133 percent for the beginning of the period. For the year ended December 31, 2024, the City recognized pension expense of $343,449 for its proportionate share of General Employees Fund's pension expense. In addition, the City recognized an additional $2,941 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the General Employees Fund. The State of Minnesota is not included as a non -employer contributing entity in the General Employees Plan pension allocation schedules for the $170.1 million in direct state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $195,204 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to the General Employees Fund. 138 8"/ CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) 1. General Employees Fund Pension Costs (Continued) At December 31, 2024, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Differences between expected and actual experience Changes in actuarial assumptions Net difference between projected and actual earnings on plan investments Changes in proportion Contributions to GERF subsequent to the measurement date Deferred Outflows of Resources $ 467,111 31,403 40,913 387,803 Deferred Inflows of Resources $ 26,483 1,645,608 1,219,113 130,681 $ 927,230 $ 3,021,885 The $387,803 reported as deferred outflows of resources related to pensions resulting from City contributions to General Employees Fund subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending December 31, 2025 2026 2027 2028 Pension Expense Amount $ (1,425,645) (222,039) (509,595) (325,179) Total $ (2,482,458) 139 88 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) 2. Police and Fire Fund Pension (PEPFF) Costs At December 31, 2024 the City reported a liability of $6,160,699 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023 through June 30, 2024 relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2024, the City's proportionate share was 0.4683 percent at the end of the measurement period and 0.4749 percent for the beginning of the period. The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2024. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation, additional one-time direct state aid contribution of $19.4 million, and $9 million in supplemental state aid that does not meet the definition of a special funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $26,267. City's proportionate share of the net pension liability State of Minnesota's proportionate share of the net pension liability associated with the City $ 6,160,699 234,843 Total $ 6,395,542 For the year ended December 31, 2024, the City recognized pension expense of $976,644 for its proportionate share of the Police and Fire Plan's pension expense. The City recognized $26,267 as grant revenue and pension expense for its proportionate share of the State of Minnesota's pension expense for the contribution of $9 million to the Police and Fire Fund. The State of Minnesota is included as a non -employer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $28.4 million in direct state aid. Police and Fire Plan employers need to recognize their proportionate share of the State of Minnesota's pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. 140 89 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) 2. Police and Fire Fund Pension (PEPFF) Costs (Continued) The State of Minnesota is not included as a non -employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in fire state aid. The City recognized $42,741 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to the Police and Fire Fund. At December 31, 2024, the City reported its proportionate share of the Police and Fire Plan's deferred outflows of resources and deferred inflows of resources, from the following sources: Differences between expected and actual experience Changes in actuarial assumptions Net difference between projected and actual earnings on plan investments Changes in proportion Contributions to PEPFF subsequent to the measurement date Deferred Outflows of Resources $ 2,697,601 7,385,212 66,898 705,473 Deferred Inflows of Resources $ 237,936 9,738,823 2,040,500 691,593 $ 10,855,184 $ 12,708,852 The $705,473 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense on the following page. Year Ending December 31, 2025 2026 2027 2028 2029 Pension Expense Amount $ (554,031) 1,400,656 (1,119,218) (2,428,515) 141,967 Total $ (2,559,141) 141 90 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) 3. Component Unit's General Employees Fund Pension Costs At December 31, 2024, the Commission reported a liability of $2,502,508 for its proportionate share of the General Employees Fund's net pension liability. The Commission's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non -employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the Commission totaled $64,710. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Commission's proportion of the net pension liability was based on the Commission's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023, through June 30, 2024, relative to the total employer contributions received from all of PERA's participating employers. The Commission's proportion share was 0.0677 percent at the end of the measurement period and 0.0716 percent for the beginning of the period. Commissions' proportionate share of the net pension liability State of Minnesota's proportionate share of the net pension liability associated with the Commission $ 2,502,508 64,710 Total $ 2,567,218 For the year ended December 31, 2024, the Commission recognized pension expense of $212,399 for its proportionate share of General Employees Fund's pension expense. At December 31, 2024, the Commission reported its proportionate share of General Employees Fund's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources are below. Differences between expected and actual experience Changes in actuarial assumptions Net difference between projected and actual earnings on plan investments Changes in proportion Contributions to GERF subsequent to the measurement date Deferred Outflows of Resources Deferred Inflows of Resources $ 235,302 $ 12,218 192,243 218,803 947,158 726,708 184,186 $ 658,566 $ 1,858,052 142 9i CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) 3. Component Unit's General Employees Fund Pension Costs (Continued) $218,803 reported as deferred outflows of resources related to pensions resulting from Commission contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense below. Year Ending December 31, 2025 2026 2027 2028 Pension Expense Amount $ (733,453) (125,026) (368,008) (191,802) Total $ (1,418,289) E. Long -Term Expected Rate of Investment The table State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized on the following page. Asset Class Domestic Equity International Equity Fixed Income Private Markets Target Allocation 33.5% 16.5% 25.0% 25.0% Total 100.0% Long -Term Expected Real Rate of Return 5.10% 5.30% 0.75% 5.90% 143 92 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) F. Actuarial Assumptions The total pension liability for each of the cost -sharing defined benefit plans was determined by an actuarial valuation as of June 30, 2024, using the entry age normal actuarial cost method. The long-term rate of return on pension plan investments used to determine the total liability is 7%. The 7% assumption is based on a review of inflation and investment return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates considered reasonable by the actuary. An investment return of 7% is within that range. Inflation is assumed to be 2.25 percent for the General Employees Plan and the Police and Fire Plan. Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan, 1% for the Police and Fire Plan. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to 3.0 percent after 27 years of service. In the Police and Fire Plan, salary growth assumptions range from 11.75 percent after one year of service to 3.0 percent after 24 years of service. Mortality rates for the General Employees Plan are based on the Pub -2010 General Employee Mortality Table. Mortality rates for the Police and Fire Plan is based on the Pub -2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA's experience. Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year experience study in the General Employees Plan was completed in 2022. The assumption changes were adopted by the Board and become effective with the July 1, 2023 actuarial valuation. The Police & Fire Plan and Correctional Plan were reviewed in 2024. PERA anticipates the experience study will be approved by the Legislative Commission on Pensions and Retirement and become effective with the July 1, 2025 actuarial valuation. 144 9.1 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) F. Actuarial Assumptions (Continued) General Employees Fund Changes in Actuarial Assumptions • Rates of merit and seniority were adjusted, resulting in slightly higher rates. • Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. • Minor increase in assumed withdrawals for males and females. • Lower rates of disability. • Continued use of Pub -2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. • Minor changes to form of payment assumptions for male and female retirees. • Minor changes to assumptions made with respect to missing participant data. Changes in Plan Provisions • The workers' compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. Police and Fire Fund Changes in Plan Provisions • The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police & Fire Plan and the State Patrol Retirement Fund attain 90 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90 percent funded status for one year. • The additional $9.0 million contribution will continue until the Police & Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). G. Discount Rate The discount rate used to measure the total pension liability in 2024 was 7.0 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and Fire Plans were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) H. Pension Liability Sensitivity The table on the following page presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate. City's proportionate share of the General Employees Fund net pension liability Commission's proportionate share of the General Employees Fund net pension liability City's proportionate share of the Police and Fire Fund net pension liability I. Pension Plan Fiduciary Net Position 1% Decrease in Discount Rate (6%) $ 9,266,780 $ 5,465,881 1% Decrease in Discount Rate (6%) $ 14,558,935 Discount Rate (7%) $ 4,242,718 $ 2,502,508 Discount Rate (7%) $ 6,160,699 1% Increase in Discount Rate (8%) $ 109,970 $ 64,864 1% Increase in Discount Rate (8%) $ (736,010) Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. 146 93 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 14 - PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) J. Public Employees Defined Contribution Plan (Defined Contribution Plan) Four Council Members of the City are covered the Defined Contribution Plan, a multiple -employer deferred compensation plan administered by PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes five percent of salary which is matched by the elected official's employer. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2.0 percent of employer contributions and twenty-five hundredths of one percent (0.25 percent) of the assets in each member's account annually. Total contributions made by the City during fiscal year 2024 were: Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer Required Rate $ 2,645 $ 2,645 5% 5% 5% 147 9t) CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 15 - POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) A. Plan Description The City provides a single -employer defined benefit health care plan to eligible retirees and their spouses. The plan offers medical coverage administered by Medica. It is the City's policy to periodically review its medical coverage and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. The City has no assets accumulated in a trust that meets the criteria in GASB 75. At December 31, 2024, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefit payments Active employees waiving coverage Active plan members 12 18 145 Total plan members 175 B. Funding Policy Retirees and their spouses contribute to the health care plan at the same rate as City employees. This results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with Medica. The required contributions are based on projected pay-as-you-go financing requirements. For the year ended December 31, 2024, the City's average contribution rate was 20.23 percent of covered -employee payroll. For the year 2024, the City contributed $92,015 to the Plan. C. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations. The City's total OPEB liability of $3,200,481 was measured as of December 31, 2023, and the total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation as of December 31, 2023. 148 9"/ CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 15 - POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) C. Actuarial Methods and Assumptions (Continued) The total OPEB liability in the December 31, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount Rate 3.77% Expected Long -Term Investment Return N/A 20 -Year Municipal Bond Yield 3.77% Inflation Rate 2.50% Medical Trend Rate 6.90% in 2024 gradually decreasing over several decades to an ultimate rate of 3.9% in 2075 and later years The Actuarial Standards Board provides coordinated guidance for measuring pension and retiree group benefit obligations through a series of Actuarial Standards of Practice (ASOPs). ASOP No. 27, Selection of Economic Assumptions for Measuring Pension Obligations, requires that the actuary disclose the rationale used in selecting each non -prescribed economic assumption and any changes to non -prescribed economic assumptions. All non -prescribed economic assumptions are summarized below. The discount rate used to measure the total OPEB liability was 3.77 percent. Per GASB guidance, the single rate that produces the same present value of expected benefit payments as (1) the expected long-term rate of return on plan assets during the period when projected assets are sufficient to pay future retiree benefits, and (2) the 20 -year municipal bond rate after assets are projected to be exhausted. The Fidelity 20 - Year Municipal GO AA Index is used because it meets the GASB requirements and is based on a large amount of municipal security data. Mortality rates were based on the current actuarial assumptions for the pension plan in which the current or future retiree participates. The inflation rate used to measure the OPEB liability was 2.5 percent. Based on analysis of historical Consumer Price Index for All Urban Consumers (CPI -U) and 30 -year Treasury Inflation -Protected Securities (TIPS) data, the Federal Open Market Committee target inflation rate, and the 2021 Survey of Capital Market Assumptions produced by Horizon Actuarial Services. Annual salary increases were based on the most recently disclosed assumption for the pension plan in which the employee participates. 149 98 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 15 - POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) D. Changes in the Total OPEB Liability Total OPEB Liability Balances at January 01, 2024 Changes for the Year: Service cost Interest Differences between expected and actual experience Changes in assumptions or other inputs Benefit payments Net Changes Balances at December 31, 2024 $ 1,846,603 90,290 75,723 1,105,067 217,187 (134,389) 1,353,878 $ 3,200,481 Since the prior measurement date, the following benefit terms changed: • The discount rate was changed from 4.05% as of 12/31/2022 to 3.77% as of 12/31/2023 based on updated 20 -year municipal bond rates as of each measurement date. Since the prior measurement date, the following benefit terms changed: • The discount rate was changed from 4.05% to 3.77% based on updated measurement dates and GASB 75 requirements. E. Sensitivity of the Total OPEB Liability The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1 -percentage point lower (2.77 percent) or 1 - percentage -point higher (4.77 percent) than the current discount rate: 1% Decrease (2.77%) Current (3.77%) 1% Increase (4.77%) $ 3,536,733 $ 3,200,481 $ 2,905,647 The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a Healthcare Cost Trend Rates that is 1 -percentage point lower (5.90 percent decreasing to 2.90 percent) or 1 -percentage -point higher (7.90 percent decreasing to 4.90 percent) than the current discount rate: 1% Decrease (5.9% Healthcare Cost Trend Rates 1% Increase (7.9% Decreasing to 2.9%) (6.9% Decreasing to 3.9%) Decreasing to 4.9%) $ 2,825,200 $ 3,200,481 $ 3,644,632 150 99 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 15 - POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2024, the City recognized OPEB expense of $5,472. At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Changes in actuarial assumptions Differences between expected and actual experience Contributions to OPEB subsequent to the measurement date $ 1,055,271 $ 522,895 418,133 679,545 134,389 - $ 1,607,793 $ 1,202,440 Deferred outflows of resources totaling $134,389 related to pensions resulting from the City's contributions to OPEB subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending December 31, 2025 2026 2027 2028 2029 Thereafter Total OPEB Expense Amount $ 20,752 20,752 16,912 15,484 3,016 194,048 $ 270,964 151 100 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 16 - FUND BALANCE DETAIL Fund balances are classified as follows to reflect the limitations and restrictions of the respective funds. Non spendable: Prepaid Items Inventories Notes Receivable Leases Total Nonspcndablc Restricted: Forfeitures Opioids Settlement Public Safety Fund DARE Local Affordable Housing Aid Economic Development Debt Service Capital Improvements Total Restricted Committed: Building Permits Assigned: Building Offical Modular Vehicle Barriers Shakopee Government Television Capital Improvements Total Assigned Unassigned General Fund Economic TIF District No. 18 Other Development Capital Canterbury Governmental Authority Improvement Commons Funds 259,365 $ 35,999 200,000 27,650 523,014 695 695 $ $ 3,384,294 3,384,294 Total $ 3,177 $ 263,237 35,999 200,000 27,650 3,177 526,886 62,240 62,240 264,162 264,162 584,665 584,665 1,916 1,916 212,328 212,328 3,384,294 3,683,935 3,683,935 4,686,976 4,686,976 9,496,222 12,880,516 2,225,000 2,225,000 65,000 375,000 440,000 12,606,903 12,606,903 20,333,226 (6,577,816) 65,000 375,000 95,797 95,797 1,023,269 13,630,172 1,1 19,066 14,165,969 (3.833,049) 9,922,361 Total Fund Balance $ 23,521,240 $ 3,384,989 $ 12,606,903 $ (6,577,816) $ 6,785,416 $ 39,720,732 152 101 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 17 - COMMITTMENTS The City has the following construction commitments at December 31, 2024. Project Work 12/31/2024 Authorization Completed Commitment Park Planning- Confluence Project Consulting- SRF Consulting Trail Wayfinding West End Lower Bluff Utility Improvements Windermere Bluff Park Sand Venture Scenic Heights CSAH 101 & Shenandoah Drive Vierling Dr E & Eagle Creek Blvd Roundabout Canterbury Commons Internal Roadways Quarry Lake Shelter Marystown Dog Park Downtown Improvements Jackson Commons Park L16 Levee Rehabilitation 2024 Full Depth Reconstruction 2024 Valley Crest Trail NOTE 18 - RISK MANAGEMENT $ 14,014 $ 10,059 $ 3,955 1,451,989 1,226,936 225,053 176,119 139,200 36,919 2,745,953 2,689,442 56,511 983,250 977,754 5,496 7,435,224 7,256,498 178,726 323,489 312,254 11,235 1,264,373 1,160,141 104,232 2,041,249 2,021,783 19,466 4,000,444 3,609,270 391,174 87,280 - 87,280 24,000 23,006 994 901,285 809,113 92,172 2,840,985 1,382,916 1,458,069 96,092 80,460 15,632 3,894,663 3,794,061 100,602 147,963 117,637 30,326 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 $50,000 and is considered immaterial to the financial statements. 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. 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 $2,000,000 for universal umbrella coverage. Property coverage is approximately $113,000,000. 153 102 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 19 — TAX ABATEMENT AGREEMENT The City has entered into two 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. Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City though tax revenues from the additional taxable value of the property generated by the development (tax abatement). The tax abatement agreements are as follows: • KEB Abatement was established in 2019. KEB America, LLC is a leading manufacturer of automation products. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2029, which required the creation of 98 full-time equivalent new jobs in Shakopee. The total City abatement awarded was $289,263. The first year of disbursement occurred in 2022. During the year ended December 31, 2024, the total disbursed was $41,431. • Cherne Abatement was established in 2020. Cherne Industries Incorporated is a manufacturer of mechanical plugs, deflection gauges, testing equipment, tools and accessories for residential, commercial, and industrial piping systems. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2031, which required the creation of 20 full-time equivalent new jobs in Shakopee and the relocation of 115 full-time equivalent jobs to Shakopee. The total City abatement awarded was $459,494. The first year of disbursement occurred in 2023. During the year ended December 31, 2024, the total disbursed was $43,375. NOTE 20 - TAX INCREMENT FINANCING The City has entered into five Tax Increment Financing (TIF) 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. Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City though tax revenues from the additional taxable value of the property generated by the development (tax increment). A "pay-as-you-go" is established for this amount, on which the City makes payments for a fixed period of time with available tax increment revenue after deducting for certain administrative costs. 154 103 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 20 - TAX INCREMENT FINANCING (CONTINUED) During the year ended December 31, 2024, the City generated $2,478,382 in tax increment revenue. TIF District No. 15 was established in 2015 for the purpose of establishing a housing unit. Trident/All Saints Senior Living is an 80 -unit senior community providing assisted living, memory care, and care suites with 20% of the units being affordable to persons of low and moderate income. Under the agreement, up to $1,000,000 of development costs will be reimbursed through tax increment over a 25 year period. During the year ended December 31, 2024, the City generated $173,194 of tax increment revenue. As of December 31, 2023 the pay -as -you go balance was paid off and future increment received by the district must be used for qualified affordable housing projects. TIF District No. 18 was established in 2018 to aid in redeveloping the horse racetrack area known as Canterbury Commons with new and improved public infrastructure. This is a multi -year, three phase project that will entail eliminating blighted properties and in turn provide a mix of housing and other commercial and industrial redevelopment. Under the agreement, $39,970,331 of public infrastructure costs will be reimbursed through tax increment to a combination of the City of Shakopee and the Developer over the duration of 25 years. During the year ended December 31, 2024, the City generated $1,636,552 of tax increment revenue, which was placed in a debt service fund for current and future debt service payments. As of December 31, 2024, the City had bonds outstanding of $16,725,000, an interfund loan of $2,515,611, and developer had certified $11,395,701 of eligible expenses. TIF District No. 19 was established in 2018 to aid in redeveloping property located in the downtown area along the riverfront. The developer, Gaughan Shakopee LLC purchased four properties from the City at an agreed upon amount of $1,000,000 and develop approximately 125 market -rate luxury apartment units including underground parking and 3,500 sq. feet of commercial space. Under the agreement, the developer will reimburse the city's $1,228,600 (primarily for land acquisition) with 22.3% of future tax increment. The remaining increment will be directed towards reimbursement of developer costs up to a principal amount of $2,811,700 over the course of 25 years. The district was created in 2018 and was certified to the State of Minnesota in 2019. During the year ended December 31, 2024, the City generated $420,994 of tax increment revenue and made a payment of $294,401. TIF District No. 20 was established in 2018 to aid in redeveloping the old downtown city hall location. The developer, Enclave Development, LLC is developing approximately 80 market -rate apartment units, including underground parking, and approximately 1,500 square feet of commercial space including all site improvements. Under the agreement, a redevelopment grant in the amount of $2,132,400 will be issued to the developer. The city will collect 100% of the future increment over the course of the next 25 years to repay the redevelopment grant. The district was created in 2018 and was certified to the State of Minnesota in 2019. During the year ended December 31, 2024, the City generated $211,292 of tax increment revenue. 155 104 CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024 NOTE 20 - TAX INCREMENT FINANCING (CONTINUED) TIF District No. 21 was established in 2018 as a soils condition district to facilitate development of certain property by removing or remediating hazardous substances, pollution or contaminants within the city. Under the agreement, the developer, Shakopee Crossings Limited Partnership, will be reimbursed up to $1,387,388 of soil remediation costs and will be reimbursed through tax increment collections over the next 20 years. The district was created in 2018 and was certified to the State of Minnesota in 2019. During the year ended December 31, 2024, the City generated $36,350 of tax increment revenue and made payments of $35,221. The remaining unpaid pay -as -you go balance at year end was $1,645,367. NOTE 21— DISSOLUTION OF FIRE PENSION PLAN During the fiscal year ended December 31, 2024, the City dissolved its Firefighters' Pension Plan as of May 5, 2024. Prior to dissolution, the plan was a single employer defined benefit pension plan established to provide benefits for members of the Shakopee Fire Department per Minnesota State Statutes. The dissolution was completed in accordance with applicable laws and regulations, and all pension obligations were fully settled. As a result, as of December 31, 2024, the City has no remaining pension asset, liability, or related deferred inflows or outflows of resources associated with the plan. Since the plan has been fully dissolved, the City is no longer required to present the required supplementary information (RSI) related to the pension plan, including the 10 -year schedules of changes in net pension liability and related rations, schedule of contributions, and actuarial assumptions. Prior years' RSI related to the plan will remain available in previously issued financial statements for historical reference. No further pension -related financial impact is expected in future periods. 156 103 (THIS PAGE LEFT BLANK INTENTIONALLY) 157 100 REQUIRED SUPPLEMENTARY INFORMATION 158 10"i CITY OF SHAKOPEE SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND City's Proportionate City's Plan State's Share of the Net Proportionate Fiduciary Proportionate Pension Liability and Share of the Net Position City's City's Share of the the State's Net Pension as a Proportion Proportionate Net Pension Proportionate Share Liability as a Percentage of the Net Share of the Liability of the Net Pension City's Percentage of of the Total For the Fiscal Pension Net Pension Associated Liability Associated Covered Covered Pension Year Ended Liability Liability with the City with the City Payroll Payroll Liability June 30, 2024 0.1148% S 4,242,718 S 109,708 $ 4,352,426 S 9,708,017 43.70% 89.10% June 30, 2023 0.1133% 6,335,609 174,766 6,510,375 9,013,258 70.29% 83.10% June 30, 2022 0.1199% 9,496,121 278,364 9,774,485 8,977,932 105.77% 76.67% June 30, 2021 0.1142% 4,876,852 148,945 5,025,797 8,222,977 59.31% 87.00% June 30, 2020 0.1108% 6,642,966 204,816 6,847,782 7,893,394 84.16% 79.00% June 30, 2019 0.1062% 5,871,560 182,492 6,054,052 7,502,811 78.26% 80.20% June 30, 2018 0.1045% 5,797,232 190,111 5,987,343 7,014,843 82.64% 79.50% June 30, 2017 0.1026% 6,549,916 82,350 6,632,266 6,194,557 105.74 % 75.90% June 30, 2016 0.0933% 7,575,497 - 7,575,497 6,246,667 121.27% 68.91% June 30, 2015 0.0930% 4,819,743 4,819,743 5,275,939 91.35% 78.19% 159 108 CITY OF SHAKOPEE SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT FUND City's Proportionate City's Plan State's Share of the Net Proportionate Fiduciary Proportionate Pension Liability and Share of the Net Position City's City's Share of the the State's Net Pension as a Proportion Proportionate Net Pension Proportionate Share Liability as a Percentage of the Net Share of the Liability of the Net Pension City's Percentage of of the Total For the Fiscal Pension Net Pension Associated Liability Associated Covered Covered Pension Year Ended Liability Liability with the City with the City Payroll Payroll Liability June 30, 2024 0.4683% S 6,160,699 S 234,843 $ 6,395,542 S 6,484,423 95.01% 90.20% June 30, 2023 0.4749% 8,200,906 330,319 8,531,225 6,235,796 131.51% 86.50% June 30, 2022 0.4987% 21,701,454 947,883 22,649,337 6,057,666 358.25% 70.53% June 30, 2021 0.4727% 3,648,743 164,053 3,812,796 5,709,197 63.91% 93.70% June 30, 2020 0.4977% 6,560,219 - 6,560,219 5,619,672 116.74% 89.30% June 30, 2019 0.5126% 5,457,145 5,457,145 5,531,821 98.65% 86.60% June 30, 2018 0.4810% 5,126,965 5,126,965 5,069,010 101.14% 85.40% June 30, 2017 0.4810% 6,494,072 6,494,072 4,642,761 139.88% 63.88% June 30, 2016 0.4680% 18,781,654 18,781,654 4,827,360 389.07% 86.61% June 30, 2015 0.4720% 5,363,024 5,363,024 4,051,444 132.37% 0.00% 160 109 CITY OF SHAKOPEE SCHEDULE OF COMPONENT UNIT'S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND Component Unit's State's Share of the Net Unit's Plan Proportionate Pension Liability and Proportionate Fiduciary Component Component Share of the the State's Share of the Net Position Unit's Unit's Net Pension Proportionate Share Net Pension as a Proportion Proportionate Liability of the Net Pension Component Liability as a Percentage of the Net Share of the Associated with Liability Associated Unit's Percentage of of the Total For the Fiscal Pension Net Pension the Component with the Component Covered Covered Pension Year Ended Liability Liability Unit Unit Payroll Payroll Liability June 30, 2024 0.0677% S 2,502,508 $ 64,710 $ 2,567,218 S 5,863,021 42.68% 89.10% June 30, 2023 0.0716% 4,003,792 110,260 4,114,052 5,478,816 73.08% 83.10% June 30, 2022 0.0668% 5,290,582 155,198 5,445,780 5,009,118 105.62% 76.67% June 30, 2021 0.0634% 2,707,464 82,761 2,790,225 4,553,229 59.46% 87.00% June 30, 2020 0.0678% 4,064,920 125,364 4,190,284 3,516,627 115.59% 79.00% June 30, 2019 0.0639% 3,532,888 109,829 3,642,717 4,522,507 78.12% 80.20% June 30, 2018 0.0645% 3,578,196 117,344 3,695,540 4,333,280 82.57% 79.50% June 30, 2017 0.0644% 4,111,253 51,656 4,162,909 4,145,653 99.17% 75.90% June 30, 2016 0.0621% 5,042,212 65,842 5,108,054 3,854,427 130.82% 68.91% June 30, 2015 0.0608% 3,150,972 - 3,150,972 3,516,627 89.60% 78.19% 161 110 CITY OF SHAKOPEE SCHEDULE OF CITY CONTRIBUTIONS LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND For the Fiscal Year Ended Contributions in Relation to Statutorily the Statutorily Contribution Contributions as Required Required Deficiency City's Covered a percentage of Contribution Contributions (Excess) Payroll Covered Payroll December 31, 2024 $ 760,715 $ 760,715 $ - $ 10.142,865 7.5% December 31, 2023 697,384 697,384 - 9,298,458 7.5% December 31, 2022 675,864 675,864 - 9,011,525 7.5% December 31, 2021 643,525 643,525 - 8,580,333 7.5% December 31, 2020 607,487 607,487 - 8,099,830 7.5% December 31, 2019 577,643 577,643 - 7,701,906 7.5% December 31, 2018 544,381 544,381 - 7,258,413 7.5% December 31, 2017 499,333 499,333 - 6,657,773 7.5% December 31, 2016 459,555 459,555 - 6,127,400 7.5% December 31, 2015 416,647 416,647 - 5,555,293 7.5% 162 111 CITY OF SHAKOPEE SCHEDULE OF CITY CONTRIBUTIONS LAST 10 YEARS PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT FUND For the Fiscal Year Ended Contributions in Relation to Statutorily the Statutorily Contribution Contributions as Required Required Deficiency City's Covered a percentage of Contribution Contributions (Excess) Payroll Covered Payroll December 31, 2024 $ 1,296,505 $ 1,296,505 $ - $ 7,324,889 17.70% December 31, 2023 1,103,809 1,103,809 - 6,236,212 17.70% December 31, 2022 1,084,634 1,084,634 - 6,127,876 17.70% December 31, 2021 1,044,257 1,044,257 - 5,899,757 17.70% December 31, 2020 974,737 974,737 - 5,750,663 16.95% December 31, 2019 947,168 947,168 - 5,588,012 16.95% December 31, 2018 851,625 851,625 - 5,256,945 16.20% December 31, 2017 788,803 788,803 - 4,869,154 16.20% December 31, 2016 761,951 761,951 - 4,703,401 16.20% December 31, 2015 720,513 720,513 - 4,447,611 16.20% 163 112 CITY OF SHAKOPEE SCHEDULE OF COMPONENT UNIT CONTRIBUTIONS LAST 10 YEARS GENERAL EMPLOYEES RETIREMENT FUND For the Fiscal Year Ended Contributions in Relation to Statutorily the Statutorily Contribution Contributions as Required Required Deficiency City's Covered a percentage of Contribution Contributions (Excess) Payroll Covered Payroll December 31, 2024 $ 429,682 $ 429,682 $ - $ 5,729,093 7.5% December 31, 2023 417,048 417,048 - 5,560,640 7.5% December 31, 2022 401,135 401,135 - 5,348,467 7.5% December 31, 2021 359,999 359,999 - 4,799,987 7.5% December 31, 2020 360,080 360,080 - 4,801,067 7.5% December 31, 2019 350,018 350,018 - 4,666,907 7.5% December 31, 2018 339,188 339,188 - 4,522,507 7.5% December 31, 2017 315,791 315,791 - 4,210,547 7.5% December 31, 2016 299,473 299,473 - 3,992,973 7.5% December 31, 2015 273,227 273,227 - 3,643,027 7.5% 164 113 CITY OF SHAKOPEE SCHEDULE OF CHANGES IN THE CITY'S OPEB LIABILITY AND RELATED RATIOS Total OPEB Liability Service cost Interest Changes of benefit terms Differenced between expected and actual experience Changes of assumptions Benefit payments Net change in total OPEB liability Total OPEB liability- beginning Total OPEB liability- ending Covered Employee Payroll City's Total OPEB Liability as a Percentage of Covered Employee Payroll 2018 $ 143,652 79,747 2019 $ 164,694 77,453 81,560 (69,528) (72,637) (85,589) 232,322 87,030 1,985,761 2,218,083 2020 $ 162,381 89,919 135,664 164,630 (87,621) 464,973 2,305,113 2021 $ 212,676 80,808 (11,389) 215,072 (88,559) 408,608 2,770,086 $ 2,218,083 $ 2,305,113 $ 2,770,086 $ 3,178,694 $ 12,533,653 $ 12,472,516 $ 12,982,682 $ 13,704,330 17.70% Note: No Assets are accumulated in a trust to pay related benefits. 18.48% 21.34% 23.19% 165 114 2022 2023 2024 $ 248,127 67,656 (755,344) (471,095) (88,083) (998,739) 3,178,694 $ 2,179,955 $ 14,047,001 15.52% $ 129,364 41,687 3,690 (420,608) (87,485) (333,3 52) 2,179,955 $ 1,846,603 $ 15,240,076 $ 90,290 75,723 1,105,067 217,187 (134,389) 1,353,878 1,846,603 $ 3,200,481 $ 15,822,251 12.12% 20.23% 166 113 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION GENERAL EMPLOYEES FUND 2024 Changes Changes in Plan Provisions • The workers' compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions Changes in Actuarial Assumptions • Rates of merit and seniority were adjusted, resulting in slightly higher rates. • Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. • Minor increase in assumed withdrawals for males and females. • Lower rates of disability. • Continued use of Pub -2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. • Minor changes to form of payment assumptions for male and female retirees. • Minor changes to assumptions made with respect to missing participant data. 2023 Changes Changes in Plan Provisions • An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. • The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. • The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. • A one-time, non -compounding benefit increase of 2.5 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. Changes in Actuarial Assumptions • The investment return assumption and single discount rate were changed from 6.5 percent to 7.00 percent. 2022 Changes Changes in Actuarial Assumptions • The mortality improvement scale was changed from Scale MP -2020 to Scale MP -2021. 2021 Changes Changes in Actuarial Assumptions • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The mortality improvement scale was changed from Scale MP -2019 to Scale MP -2020. 167 11t NOTES TO REQUIRED SUPPLEMENTARY INFORMATION GENERAL EMPLOYEES FUND (Continued) 2020 Changes Changes in Plan Provisions • Augmentation for current privatized members was reduced to 2.0 percent for the period July 1, 2020, through December 31, 2023, and 0.0 percent after. Augmentation was eliminated for privatizations occurring after June 30, 2020. Changes in Actuarial Assumptions • The price inflation assumption was decreased from 2.50 percent to 2.25 percent. • The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. • Assumed salary increase rates were changed as recommended in the June 30, 2019, experience study. The net effect is assumed rates that average 0.25 percent less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub -2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP -2014 disabled annuitant mortality table to the PUB -2010 General/Teacher disabled annuitant mortality table, with adjustments. • The mortality improvement scale was changed from Scale MP -2018 to Scale MP -2019. • The assumed spouse age difference was changed from two years older for females to one year older. • The assumed number of married male new retirees electing the 100 percent Joint & Survivor option changed from 35 percent to 45 percent. The assumed number of married female new retirees electing the 100 percent Joint & Survivor option changed from 15 percent to 30 percent. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 2019 Changes Changes in Plan Provisions • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. Changes in Actuarial Assumptions • The mortality projection scale was changed from MP -2017 to MP -2018. 168 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION GENERAL EMPLOYEES FUND (Continued) 2018 Changes Changes in Plan Provisions • The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. • Interest credited on member contributions decreased from 4 percent to 3 percent, beginning July 1, 2018. • Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Annual increases were changed from 1 percent per year with a provision to increase to 2.5 percent upon attainment of 90 percent funding ratio to 50 percent of the Social Security Cost -of Living Adjustment, not less than 1 percent and not more than 1.5 percent, beginning January 1, 2019. • For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. Changes in Actuarial Assumptions • The mortality projection scale was changed from MP -2015 to MP -2017. The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 Changes Changes in Plan Provisions • The State's contribution for the Minneapolis Employees Retirement Fund equals $16.0 million in 2017 and 2018 and $6.0 million thereafter. • The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. Changes in Actuarial Assumptions • The combined service annuity (CSA) loads were changed from 0.80 percent for active members and 60 percent for vested and non -vested deferred members. The revised CSA load are now 0 percent for active member liability, 15 percent for vested deferred member liability, and 3 percent for non -vested deferred member liability. • The assumed annual increase rate was changed for 1 percent per year for all years to 1 percent per year through 2044 and 2.50 percent per year thereafter. 2016 Changes Changes in Actuarial Assumptions • The assumed annual increase rate was changed from 1 percent per year through 2035 and 2.50 percent per year thereafter to 1 percent per year for all years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed from 7.90 percent to 7.50 percent. • Other assumptions were changed pursuant to the experience study June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 169 118 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION GENERAL EMPLOYEES FUND (Continued) 2015 Changes Changes in Plan Provisions • On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increase the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised; the State's contribution of $6 million, which meets the special funding situation definition, was due September 2015. Changes in Actuarial Assumptions • The assumed annual increase rate was changed from 1 percent per year through 2030 and 2.5 percent per year thereafter to 1 percent per year through 2035 and 2.5 percent per year thereafter. POLICE AND FIRE FUND 2024 Changes Changes in Plan Provisions • The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police & Fire Plan and the State Patrol Retirement Fund attain 90 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90 percent funded status for one year. • The additional $9.0 million contribution will continue until the Police & Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). 2023 Changes Changes in Actuarial Assumptions • The investment return assumption was changed from 6.5 percent to 7.00 percent. • The single discount rate changed from 5.4 percent to 7.0 percent. Changes in Plan Provisions • Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. • Vesting requirement for new hires after June 30, 2014, was changed from a graded 20 -year vesting schedule to a graded 10 -year vesting schedule, with 50 percent vesting after five years, increasing incrementally to 100% after 10 years. • A one-time, non -compounding benefit increase of 3.0 percent will be payable in a lump sum for calendar year 2024 by March 31, 2024. • Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member's occupation. • The total and permanent duty disability benefit was increased, effective July 1, 2023. 2022 Changes Changes in Actuarial Assumptions • The mortality improvement scale was changed from Scale MP -2020 to Scale MP -2021. The single discount rate changed from 6.5% to 5.4%. 170 119 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION POLICE AND FIRE FUND (Continued) 2021 Changes Changes in Actuarial Assumptions • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. • The inflation assumption was changed from 2.50 percent to 2.25 percent. • The payroll growth assumption was changed from 3.25 percent to 3.00 percent. • The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub -2010 Public Safety Mortality table. The mortality improvement scale was changed from MP -2019 to MN -2020. • The base mortality table for disabled annuitants was changed from the RP -2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP -2019) to the Pub -2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP -2020). • Assumed rates of salary increase were modified as recommended in the July 14, 2020, experience study. The overall impact is a decrease in gross salary increase rates. • Assumed rates of retirement were changed as recommended in the July 14, 2020, experience study. The changes result in slightly more unreduced retirements and fewer assumed early retirements. • Assumed rates of withdrawal were changed from select and ultimate rates to service -based rates. The changes result in more assumed terminations. • Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. • Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied. 2020 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP -2018 to MP -2019. 2019 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP -2017 to MP -2018. 2018 Changes Changes in Plan Provisions • Annual increases were changed to 1.00 percent for all years, with no trigger. • An end date of July 1, 2048, was added to the existing $9 million state contribution. • New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9 million thereafter until the 1 • Member contributions were changed from 10.8 percent to 11.3 percent of pay, effective January 1, 2019, and 1 • Employer contributions were changed from 16.2 percent to 16.95 percent of pay, effective January 1, 2019, and 17.7 percent of pay, effective January 1, 2020. • Interest credited on member contributions decreased from 4 percent to 3 percent, beginning July 1, 2018. • Deferred augmentation was changed to 0 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Changes in Actuarial Assumptions • The morality projection scale was changed from MP -2016 to MP -2017. 171 120 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION POLICE AND FIRE FUND (Continued) 2017 Changes Changes in Actuarial Assumptions • Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. • Assumed rates of retirement were changed, resulting in fewer retirements. • The Combined Service Annuity (CSA) load was 30 percent for vested and non -vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non -vested members. • The base mortality table for healthy annuitants was changed from the RP -2000 fully generational table to the RP -2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP -2016. The base mortality table for disabled annuitants was changed from the RP -2000 disabled mortality table to the mortality tables assumed for healthy retirees. • Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. • Assumed percentage of married female members was decreased from 65 percent to 60 percent. • Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. • The assumed percentage of female members electing joint and survivor annuities was increased. • The assumed post -retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. • The single discount rate was changed from 5.6 percent to 7.5 percent. 2016 Changes Changes in Actuarial Assumptions • The assumed post -retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. • The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. 2015 Changes Changes in Plan Provisions • The post -retirement benefit increase to be paid after attainment of the 90% funding threshold was changed, from inflation up to 2.5%, to a fixed rate of 2.5%. Changes in Actuarial Assumptions • The assumed post -retirement benefit increase rate was changed from 1.0% per year through 2030 and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter. 172 12i NOTES TO REQUIRED SUPPLEMENTARY INFORMATION OTHER POST EMPLOYMENT BENEFITS 2024 Changes Assumption changes: • The discount rate was changed from 4.05% as of 12/31/2022 to 3.77% as of 12/31/2023 based on updated 20 - year municipal bond rates as of each measurement date. 2023 Changes Assumption changes: • The discount rate was changed from 1.84% as of 12/31/2021 to 4.05% as of 12/31/2022 based on updated 20 - year municipal bond rates as of each measurement date. 2022 Changes Assumption changes: • The discount rate was changed from 2.00% as of 12/31/2020 to 1.84% as of 12/31/2021 based on updated 20 - year municipal bond rates as of each measurement date. • The inflation assumption changed from 2.50% to 2.25% based on an updated historical analysis of inflation rates and forward looking market expectations. • The payroll growth rate changed from 3.25% as of 12/31/2020 to 3.00% as of 12/31/2021 based on an updated historical analysis of inflation rates and forward looking market expectations. 2021 Changes Assumption changes: • The discount rate was changed from 2.75% as of 12/31/2019 to 2.00% as of 12/31/2020 based on updated 20 - year municipal bond rates as of each measurement date. 2020 Changes Assumption changes: • The discount rate was changed from 3.71% as of 12/31/2018 to 2.75% as of 12/31/2019 based on updated 20 - year municipal bond rates as of each measurement date. 2019 Changes Assumption changes: • The discount rate was changed from 3.31% as of 12/31/2017 to 3.71% as of 12/31/2018 based on updated 20 - year municipal bond rates as of each measurement date. 2018 Changes Assumption changes: • The discount rate was changed from 3.81% as of 12/31/2016 to 3.31% as of 12/31/2017 based on updated 20 - year municipal bond rates as of each measurement date. 173 122 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION OTHER POST EMPLOYMENT BENEFITS (CONTINUED) 2017 Changes Assumption changes: • The discount rate was changed from 3.50% to 3.81% based on updated measurement dates and GASB 75 requirements. • Healthcare trend rates were reset to reflect updated const increase expectations, including an adjustment to reflect the impact of the Affordable Care Acts Excise Tax on high -cost health insurance plans. • Medical per capita claims costs were updated to reflect recent experience and new plan offerings. • Withdrawal, retirement, mortality and salary increase rates were updated from the rates used in the 7/1/2015 PERA General and Police & Fire Employees Retirement Plan to the rates used in the 7/1/2018 valuation. • The percent of future regular retirees assumed to elect coverage at retirement changed from 50% to 30% to reflect recent plan experience. • The inflation assumption changed from 2.75% to 2.50% based on an updated historical analysis of inflation rates and forward looking market expectations. 174 12.3 (THIS PAGE LEFT BLANK INTENTIONALLY) SUPPLEMENTARY INFORMATION 176 125 CITY OF SHAKOPEE SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2024 Variance with Budget Amounts Actual Final Budget - Original Final Amounts Over (Under) REVENUES Taxes General Property Fiscal Disparities Franchise Aggregate Total Taxes Special Assessments Licenses and Permits $ 19,904,800 $ 19,904,800 $ 20,161,404 $ 256,604 2,280,000 2,280,000 2,226,686 (53,314) 385,000 385,000 334,514 (50,486) - - 8,193 8,193 22,569,800 22,569,800 22,730,797 160,997 14,000 14,000 19,709 5,709 3,491,450 3,491,450 5,542,101 2,0.50,651 Intergovernmental Revenues Federal Grants 16,000 16,000 123,423 107,423 Police Aid 530,000 530,000 647,754 117,754 Fire Aid 345,000 447,400 447,448 48 State Grants 766,000 831,000 1,282,282 451,282 Other Grants and Aids 3,322,000 3,376,250 3,534,546 158,296 Total Intergovernmental Revenues 4,979,000 5,200,650 6,035,453 834,803 Charges for Services General Government Public Safety Public Works Parks and Recreation Total Charges for Services Fines and Forfeitures Miscellaneous Revenues Investment Income Contributions and Donations Rents Other Total Miscellaneous Revenues Total Revenues EXPENDITURES General Government Current: Mayor and Council Administration City Clerk Finance Planning Government Buildings Unallocated Capital Outlay Total General Government 126,000 126,000 387,820 261,820 1,012,000 1,012,000 1,084,731 72,731 1,088,700 1,088,700 1,055,217 (33,483) 2,586,650 2,586,650 2,548,585 (38,065) 4,813,350 4,813,350 5,076,353 263,003 200 325,200 296,452 (28,748) 325,000 325,000 1,080,528 755,528 25,000 25,000 31,208 6,208 10,700 10,700 1,050 (9,650) 18,500 18,500 163,505 145,005 379,200 379,200 1,276,291 897,091 36,247,000 36,793,650 40,977,156 4,183,506 208,000 208,000 135,800 (72,200) 2,770,200 2,643,925 2,650,750 6,825 567,500 567,500 551,702 (15,798) 1,255,200 1,128,925 1,113,281 (15,644) 731,900 886,900 801,800 (85,100) 693,650 603,650 602,884 (766) 343,100 13,100 7,800 (5,300) - - 64,478 64,478 6,569,550 6,052,000 5,928,495 (123,505) 177 l20 CITY OF SHAKOPEE SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND (Continued) For the Year Ended December 31, 2024 Variance with Budget Amounts Actual Final Budget - Original Final Amounts Over (Under) EXPENDITURES (Continued) Public Safety Current: Police Fire Building Inspection Capital Outlay Total Public Safety Public Works Current: Engineering Streets Shop Park Maintenance Capital Outlay Total Public Works Culture and Recreation Current: Recreation Capital Outlay Total Parks and Recreation Debt Service Principal Interest and Other Charges Total Debt Service Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset SB1TA Issued Lease Issued Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances FUND BALANCES Beginning of Year End of Year $ 11,477,300 $ 12,204,900 $ 12,247,697 $ 42,797 3,731,100 3,991,500 4,213,549 222,049 1,811,400 1,876,400 2,030,219 153,819 - - 100,930 100,930 17,019,800 18,072,800 18,592,395 519,595 1,490,850 1,490,850 1,348,084 (142,766) 2,808,200 2,837,830 2,565,919 (271,911) 558,200 565,100 514,251 (50,849) 3,403,200 3,455,170 3,368,812 (86,358) - - 4,683 4,683 8,260,450 8,348,950 7,801,749 (547,201) 5,208,560 5,208,560 5,198,428 6,167 5,208,560 5,208,560 37,058,360 37,682,310 (811,360) (888,660) (10,132) 6,167 5,204,595 (3,965) 100,877 100,877 5,587 5,587 106,464 106,464 37,633,698 (48,612) 3,343,458 4,232,118 - 6,338 6,338 - 75,155 75,155 - 36,258 36,258 611,360 634,610 495,553 (139,057) - (252,550) (2,460,000) (2,207,450) 611,360 382,060 (1,846,696) (2,228,756) $ (200,000) $ (506,600) 1,496,762 $ 2,003,362 22,024,478 $ 23,521,240 178 1T/ CITY OF SHAKOPEE COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2024 Special Revenue Shakopee Government Forfeiture DARE Television ASSETS Cash and Investments Special Assessments Receivable: Delinquent Deferred Accounts Receivable Interest Receivable Due from Other Governments Prepaid Items Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable Due to Other Governments Advance from Other Funds Total Liabilities Deferred Inflows of Resources Unavailable Revenue - Special Assessments Total Deferred Inflows of Resources Fund Balances Nonspendable Restricted for: Special Revenue Debt Service Capital Projects Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 61,930 $ 2,437 $ 87,462 430 7,728 607 80 1,693 1,484 $ 64,053 $ 2,517 $ 97,281 $ 120 $ 601 $ 120 601 1,693 1,484 62,240 1,916 63,933 95,797 1,916 97,281 $ 64,053 $ 2,517 $ 97,281 179 128 Special Revenue Local Opioids Public Safety Affordable Lodging Tax Settlement Funds Housing Aid Total $ $ 264,162 $ 601,895 $ 212,328 $ 1,230,214 25,708 33,436 1,037 80 3,177 $ 25,708 $ 264,162 $ 601,895 $ 212,328 $ 1,267,944 $ 25,708 $ $ 17,230 $ $ 43,659 25,708 17,230 43,659 264,162 584,665 212,328 264,162 584,665 3,177 1,125,311 95,797 212,328 1,224,285 $ 25,708 $ 264,162 $ 601,895 $ 212,328 $ 1,267,944 180 129 CITY OF SHAKOPEE COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) December 31, 2024 Debt Service 2016A GO Tax 2019A Tax 2020A Tax Abatement Increment increment Bonds Bonds Bonds ASSETS Cash and Investments Special Assessments Receivable: Delinquent Deferred Accounts Receivable Interest Receivable Due from Other Governments Prepaid Items Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable Due to Other Governments Advance from Other Funds Total Liabilities Deferred Inflows of Resources Unavailable Revenue - Special Assessments Total Deferred Tnflows of Resources Fund Balances Nonspendable Restricted for: Special Revenue Debt Service Capital Projects Assigned Unassigned Total Fund Balances $ 1,448,865 $ 306,607 $ 555,958 10,059 2,129 3,860 $ 1,458,924 $ 308,736 $ 559,818 1,458,924 1,458,924 S $ 308,736 559,818 308,736 559,818 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 1,458,924 $ 308,736 $ 559,818 181 130 Debt Service 2022A GO Tax 2022A GO Increment Improvement Revenue Bond Bond Total TIF District No. Park 15 All Development Saints/Trident $ 138,507 $ 1,210,796 $ 3,660,733 $ 5,185,580 $ 197,003 8,139 8,139 666,779 666,779 1,002 962 6,007 23,017 37,120 185 185 500,000 $ 139,469 $ 1,891,906 $ 4,358,853 $ 5,723,702 $ 197,003 $ $ 674,918 674,918 674,918 674,918 139,469 1,216,988 3,683,935 $ 1,233,541 $ 1,380 311 1,233,852 1,380 4,489,850 195,623 139,469 1,216,988 3,683,935 4,489,850 195,623 $ 139,469 $ 1,891,906 $ 4,358,853 $ 5,723,702 $ 197,003 182 131 CITY OF SHAKOPEE COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (Continued) December 31, 2024 Capital Projects TIF District No. TIF District No. TIF District No. 21 Shakopee 19 Riverfront 20 Enclave Crossing ASSETS Cash and Investments Special Assessments Receivable: Delinquent Deferred Accounts Receivable Interest Receivable Due from Other Governments Prepaid Items Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable Due to Other Governments Advance from Other Funds Total Liabilities Deferred Inflows of Resources Unavailable Revenue - Special Assessments Total Deferred Inflows of Resources Fund Balances Nonspendable Restricted for: Special Revenue Debt Service Capital Projects Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 1,380 $ 630 $ 2,883 $ 1,380 $ 630 $ 2,883 $ 1,380 $ 1,380 $ 1,380 1,559,223 2,273,076 1,560,603 2,274,456 1,380 (1,559,223) (2,273,826) (1,559,223) (2,273,826) 1,503 1,503 $ 1,380 $ 630 $ 2,883 183 132 Capital Projects Road Expansion Dedication Tree Replacement Seal Coat Total Total Governmental Funds $ 357,841 $ 307,219 $ 391,073 $ 6,443,609 $ 11,334,556 8,139 666,779 1,002 34,438 2,133 39,253 63,307 500,000 500,265 3,177 $ 357,841 $ 309,352 $ 391,073 $ 6,983,864 $ 12,610,661 $ 34,997 $ 34,997 322,844 322,844 309,352 391,073 309,352 391,073 $ 1,274,058 $ 1,317,717 311 311 3,832,299 3,832,299 5,106,668 5,150,327 674,918 674,918 3,177 1,125,311 3,683,935 4,686,976 4,686,976 1,023,269 1,119,066 (3,833,049) (3,833,049) 1,877,196 6,785,416 $ 357,841 $ 309,352 $ 391,073 $ 6,983,864 $ 12,610,661 184 13 _i CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONIVIAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2024 Special Revenue Shakopee Government Lodging Forfeiture DARE Television SCDP Grant Tax REVENUES Taxes Tax Increment Special Assessments Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Investment Income Total Revenues EXPENDITURES Current General Government Public Safety Public Works Conservation and Natural Resources Economic Development Debt Service Principal Interest and Other Charges Capital Outlay Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances FUND BALANCES Beginning of Year, as Previously Presented Change within financial reporting entity (major to nonmajor fund) Beginning of Year, as Adjusted End of Year 350 11,533 1,952 3,725 $ $ 32,203 $ - $ 472,152 1,203 17,560 1,203 55,008 4,592 _5.5,008 3,344 35,547 - 472,152 22,141 - 472,152 4,592 22,141 (37,448) (3,389) (37,448) (3,389) 101,381 5,305 101,381 5,305 18,368 18,368 472,152 13,406 (18,368) 13,406 (18,368) 83,875 18,368 83,875 18,368 $ 63,933 $ 1,916 $ 97,281 $ - $ Special Revenue Debt Service Local Opioids Public Safety Affordable Settlement Funds Housing Aid 188,929 $ - $ Total $ 504,355 212,328 212,678 201,665 1,952 7,069 2016A GO Tax 2019A Tax Abatement Increment Bonds Bonds $ 2,189,000 $ 23,118 4,527 188,929 - 212,328 927,719 2,212,118 4,527 80,852 14,921 129,312 10,249 811,097 80,852 965,579 108,077 (965,579) 494,293 155,373 18,368 129,312 1,355,000 230,000 10,249 742,856 108,763 811,097 - - 1,618,692 2,097,856 338,763 212,328 (690,973) (72,303) - (72,303) (72,303) 108,077 (1,037,882) 156,085 1,622,547 156,085 1,622,547 114,262 (334,236) 348,628 (72,303) - 348,628 212,328 (763,276) 114,262 14,392 1,987,561 1,344,662 294,344 1,987,561 1,344,662 294,344 $ 264,162 $ 584,665 $ 212,328 $ 1,224,285 $ 1,458,924 $ 308,736 186 133 CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONIVIAJOR GOVERNMENTAL FUNDS (Continued) For the Year Ended December 31, 2024 Debt Service REVENUES Taxes Tax Increment Special Assessments Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Investment Income Total Revenues EXPENDITURES Current General Government Public Safety Public Works Conservation and Natural Resources Economic Development Debt Service Principal Interest and Other Charges Capital Outlay Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances FUND BALANCES Beginning of Year, as Previously Presented Change within financial reporting entity (major to nonmajor fund) Beginning of Year, as Adjusted 2020A Tax 2022A GO Tax 2022A GO Increment Increment Improvement Bonds Revenue Bond Bond $ - $ Total $ 121,500 $ 2,310,500 120,761 120,761 8,429 (11,171) 31,126 56,029 8,429 (11,171) 273,387 2,487,290 425,000 75,000 395,000 2,480,000 203,300 176,675 116,775 1,348,369 628,300 251,675 511,775 3,828,369 (619,871) (262,846) (238,388) (1,341,079) 634,977 493,164 346,000 1,822,769 634,977 493,164 346,000 1,822,769 15,106 230,318 107,612 481,690 544,712 (90,849) 1,109,376 3,202,245 544,712 (90,849) 1,109,376 3,202,245 End of Year $ 559,818 $ 139,469 $ 1,216,988 $ 3,683,935 187 l30 Capital Projects Formerly Mu/or Fund TIF District TIF District Park No. 14 J&J / No. 15 All T1F District No. TIF District No. T1F District No. Development Sanmar Saints/Trident 17 Amazon 19 Riverfront 20 Enclave 1,911,040 5,262 8,231 350,672 $ - $ (186,545) 173,194 1 1 2,275,205 (186,544) 5,352,818 5,352,818 2,869 (3,077,613) (186,544) (3,077,613) (186,544) $ - $ (25,481) 173,195 (25,481) 2,869 170,326 (25,481) 170,326 (25,481) 7,567,463 186,544 25,297 7,567,463 186,544 $ 4,489,850 $ 420,994 211,292 420,994 211,292 365,068 2,861 77,722 365,068 80,583 55,926 130,709 55,926 130,709 25,481 (1,615,149) 25,297 25,481 (2,404,535) (1,615,149) (2,404,535) $ 195,623 $ - $ (1,559,223) $ (2,273,826) 13"/ 188 CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONIVIAJOR GOVERNMENTAL FUNDS (Continued) For the Year Ended December 31, 2024 Capital Projects TIF District No. 21 Shakopee KEB Cherne Road Expansion Crossing Abatement Abatement Dedication REVENUES Taxes Tax Increment Special Assessments Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Investment Income Total Revenues EXPENDITURES Current General Government Public Safety Public Works Conservation and Natural Resources Economic Development Debt Service Principal Interest and Other Charges Capital Outlay Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances FUND BALANCES Beginning of Year, as Previously Presented Change within financial reporting entity (major to nonmajor fund) Beginning of Year, as Adjusted End of Year $ - $ 41,431 $ 43,375 $ 36,350 - 9,719 36,350 41,431 43,375 9,719 38,100 41,431 38,100 41,431 43,375 34,997 43,375 34,997 (1,750) - (25,278) (1,750) - (25,278) 3,253 348,122 3,253 - 348,122 $ 1,503 $ $ $ 322,844 189 138 Capital Projects Tree Replacement Seal Coat Total Total Other Governmental Funds $ - $ - $ 84,806 $ 2,899,661 - - 629,804 629,804 - - - 120,761 - - 1,911,040 1,911,040 - - - 212,678 3,206 - 8,468 8,468 4,000 - 4,000 205,665 - 126,963 135,194 137,146 14,214 9,831 384,438 447,536 21,420 136,794 3,157,750 6,572,759 44,160 - - 494,293 - - 155,373 67,195 67,195 67,195 - 44,160 44,160 - 493,704 512,072 - - 2,609,312 - 77,722 1,436,340 - 5,387,815 6,198,912 44,160 67,195 6,070,596 11,517,657 (22,740) 69,599 (2,912,846) (4,944,898) 1,822,769 - - (72,303) 1,750,466 (22,740) 69,599 (2,912,846) (3,194,432) 332,092 321,474 7,194,577 12,384,383 332,092 321,474 (2,404,535) (2,404,535) 4,790,042 9,979,848 $ 309,352 $ 391,073 $ 1,877,196 $ 6,785,416 190 139 CITY OF SHAKOPEE COMBINING STATEMENT OF NET POSITION - INTERNAL SERVICE FUNDS December 31, 2024 Information Employee and Equipment Buildings Park Asset Benefits Technology Self Insurance Total ASSETS Current Assets Cash and Investments, Including Cash Equivalents Accounts Receivable Interest Receivable Prepaid Expenses Total Current Assets Noncurrent Assets Capital Assets: Land Construction in Progress Infrastructure Buildings Machinery and Equipment Lease Equipment Subscription -Based Technology Information Assets (SBITA) Total Cost Less Accumulated Depreciation and Amortization Net Capital Assets Total Noncurrent Assets Total Assets LIABILITIES AND NET POSITION Current Liabilities Accounts Payable Due to Other Governments Current Compensated Absences Current Lease Liability Current SBITA Liability Total Current Liabilities Noncurrent Liabilities Advance from Other Funds Compensated Absences Lease Liability SBITA Liability Total Noncurrent Liabilities Total Liabilities Net Position Net Investment in Capital Assets Unrestricted Total Net Position $ 7,439,896 $ 4,133,805 $ 2,291,326 $ 2,281,873 $ 1,140,595 $ 3,731,820 $21,019,315 17,963 20,539 38,502 51,204 25,269 16,627 18,896 7,919 25,941 145,856 - - - 17,920 229,841 247,761 7,491,100 4,177,037 2,307,953 2,300,769 1,166,434 4,008,141 21,451,434 1,466,328 13,771,783 163,832 221,876 9,347,146 210,037 373,982 4,547,657 29,453,474 3,401,304 1,362,550 5,303,132 60,031 368,159 221,876 11,023,511 4,981,670 32,854,778 20,805,624 163,832 512,626 512,626 15,401,943 40,537,152 13,684,006 940,816 70,563,917 (7,217,993) (15,129,311) (6,942,960) (404,681) (29,694,945) 8,183,950 25,407,841 6,741,046 536,135 40,868,972 8,183,950 25,407,841 6,741,046 536,135 40,868,972 $15,675,050 $29,584,878 $ 9,048,999 $ 2,300,769 $ 1,702,569 $ 4,008,141 $62,320,406 $ 188,968 $ 597,645 $ 19,851 $ $ 37,010 $ 58,478 $ 901,952 258 - 258 1,624,088 1,624,088 24,055 24,055 97,191 97,191 213,023 597,645 51,376 880,000 51,376 880,000 264,399 1,477,645 7,919,551 7,491,100 15,410,651 19,851 1,624,088 134,459 58,478 2,647,544 1,984,997 1,984,997 118,494 118,494 3,034,867 880,000 1,984,997 51,376 118,494 19,851 3,609,085 252,953 58,478 5,682,411 24,810,196 6,721,935 3,297,037 2,307,213 28,107,233 9,029,148 320,450 - 39,772,132 (1,308,316) 1,129,166 (1,308,316) 1,449,616 3,949,663 16,865,863 3,949,663 56,637,995 Total Liabilities and Net Position $15,675,050 $29,584,878 $ 9,048,999 $ 2,300,769 $ 1,702,569 $ 4,008,141 $62,320,406 191 140 CITY OF SHAKOPEE COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - INTERNAL SERVICE FUNDS For the Year Ended December 31, 2024 Information Employee and Self Equipment Buildings Park Asset Benefits Technology Insurance Total OPERATING REVENUES Rental Charges Other Charges Total Operating Revenues OPERATING EXPENSES Depreciation Professional Services Repairs and Maintenance Materials and Supplies Insurance Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Investment Income Insurance Dividends Interest Expense Gain (Loss) on Sale of Asset Total Nonoperating Revenues (Expenses) Income (Loss) before Capital Contributions and Transfers Capital Contributions (to)/from Governmental Funds Transfers In Change in Net Position NET POSITION Beginning of Year End of Year $ 1,579,300 $ 1,398,500 $ 659,100 $ $ 652.000 $ 1,117,667 $ 5,406,567 - - 59,392 59,392 1,579,300 1,398,500 659,100 652,000 1.177,059 5,465,959 943,569 785,542 445,919 243,231 - 2,418,261 30,312 12,775 121,851 23,306 188,244 36,645 - 876 42,633 80,154 157,439 10,768 59,741 441,463 - 669,411 - - - 809,933 809,933 1,101,008 863,267 518,435 807,421 875,872 4,166,003 478,292 535,233 140,665 (155,421) 301,187 1,299,956 346,558 385,356 100,395 62,200 53,293 140,459 1,088,261 - - 80,324 80,324 (3,994) (12,375) - (8,936) - (25,305) 372,171 - - - 372,171 714,735 372,981 100,395 62,200 44,357 220,783 1,515,451 1,193,027 908,214 241,060 62,200 (111,064) 521,970 2,815,407 156,123 160,905 - 10,000 (49,726) 277,302 1,000,000 - - 1,000,000 1,349,150 2,069,119 241,060 62,200 (101,064) 472,244 4,092,709 14,061,501 26,038,114 8,788,088 (1,370,516) 1,550,680 3,477,419 52,545,286 $15,410,651 $ 28,107,233 $ 9,029,148 $ (1,308,316) $ 1,449,616 $ 3,949,663 $56,637,995 192 141 CITY OF SHAKOPEE COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS For the Year Ended December 31, 2024 Information Employee and Equipment Buildings Park Asset Benefits Technology Self Insurance Total CASH FLOWS - OPERATING ACTIVITIES Receipts from Customers and Users Receipts from Interfund Services Payments to Suppliers Net Cash Flows - Operating Activities CASH FLOWS- NONCAPITAL FINANCING ACTIVITIES Payment Paid on Interfund Loan Interest Paid on Interfund Loan Insurance Dividends Transfer from Other Funds Net Cash Flows - Noncapital Financing Activities $ 1,579,300 $1,380,537 $ 659,100 $ - $ 652,708 $ 1,156,520 $ 5,428,165 662,730 - 662,730 (485.267) (899,233) (89,241) (477,611) (830,501) (2,781,853) 1,094,033 481,304 569,859 (60,000) (12,3 75) 1,000,000 927,625 662,730 175,097 326,019 3,309,042 80,324 (60,000) (12,375) 80,324 1,000,000 80,324 1,007,949 CASH FLOWS - CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on Leases and SBITA (47.023) (228.102) (275,125) Proceeds from Disposal of Capital Assets 771,261 771,261 Acquisition of Capital Assets (2,705,375) (7,266,901) (382,982) (61,336) (49,726) (10,466,320) Net Cash Flows - Capital and Related Financing Activities (1,981,137) (7,266,901) (382,982) (289,438) (49,726) (9,970,184) CASH FLOWS - INVESTING ACTIVITIES Interest Received (Loss) 346,779 420,048 98,437 53,622 57,969 135,191 1,112,046 Net Cash Flows - Investing Activities 346,779 420,048 98,437 53,622 57,969 135,191 1,112,046 Net Change in Cash and Cash Equivalents (540,325) (5,437,924) 285,314 716,352 (56,372) 491,808 (4,541,147) CASH AND CASH EQUIVALENTS Beginning of Year 7,980,221 9,571,729 2,006,012 1,565,521 1,196,967 3,240,012 25,560,462 End of Year $ 7,439,896 $4,133,805 $2,291,326 $2,281,873 $ 1,140,595 $ 3,731,820 $21,019,315 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS - OPERATING ACTIVITIES Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows - Operating Activities: Depreciation/Amortization Expense Changes in: Accounts Receivable Due to Other Governments Accounts and Contracts Payable Prepaid Expenses Compensated Absences Payable Total Adjustments Net Cash Flows - Operating Activities NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Transfer of Capital Assets Transfer of Lease Asset Transfer of SBITA Asset Acquisition of Capital Assets on Account Issuance of SBITA Right -to -use Assets Issuance of SBITA Liability $ 478,292 $ 535,233 $ 140,665 $ 943,569 785,542 445,919 (17,963) (327,828) (821,508) (16,725) 615,741 (53,929) 429,194 $ (155,421) $ 301,187 $ 1,299,956 243,231 2,418,261 708 (20,539) (37,794) 258 - 258 25,389 55,908 (1,084,764) 60,932 (10,537) 50,395 662,730 - 662,730 662,730 330,518 24,832 2,009,086 $ 1,094,033 $ 481,304 $ 569,859 $ 662,730 $ 175,097 $ 326,019 $ 3,309,042 $ 149.101 $ 160,905 $ (7,022) 188,968 597,645 19,111 $ $ (10,000) $ (49,726) $ 260,280 (7,022) (10,000) 805,724 365,720 365,720 (365,720) (365,720) 193 142 STATISTICAL SECTION 194 143 (THIS PAGE LEFT BLANK INTENTIONALLY) CITY OF SHAKOPEE STATISTICAL SECTION December 31, 2024 This part of the City's Annual Comprehensive Financial Report (ACFR) presents detailed information for placing in context and understanding what the information shown in the financial statements, note disclosures and required supplementary information reveals about the City's overall financial health. CONTENTS Financial Trends Page 146 These schedules show trend information to help the reader understand how the City's financial performance and well being have changed over time. Revenue Capacity 154 Portrayed is information to help the reader assess the City's most important local revenue source, the property tax. Debt Capacity 158 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information 164 Shown are demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 166 These schedules shown service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Source: Unless noted otherwise, the information in these schedules is from the ACFR for the relevant year. 196 143 CITY OF SHAKOPEE NET POSITION BY COMPONENT Years 2015 Through 2024 Governmental Activities: Net Investment in Capital Assets Restricted Unrestricted Total Governmental Activities Net Position Business -Type Activities: 2015 2016 $ 120,831,029 7,547,490 23,939,064 $ 128,559,527 6,637,391 16,719,760 2017 2018 $ 135,442,110 6,342,643 15,059,730 $ 137,799,457 7,136,534 16,107,363 $ 152,317,583 $ 151,916,678 $ 156,844,483 $ 161,043,354 Net Investment in Capital Assets $ 68,986,369 $ 70,099,288 $ 75,547,444 $ 78,642,426 Unrestricted 25,981,542 23,281,483 22,730,751 22,999,131 Total Business -Type Activities Net Position $ 94,967,911 $ 93,380,771 $ 98,278,195 $ 101,641,557 Primary Government: Net Investment in Capital Assets $ 189,817,398 $ 198,658,815 $ 210,989,554 $ 216,441,883 Restricted 7,547,490 6,637,391 6,342,643 7,136,534 Unrestricted 49,920,606 40,001,243 37,790,481 39,106,494 Total Primary Government Net Position $ 247,285,494 $ 245,297,449 $ 255,122,678 $ 262,684,911 197 140 Table 1 2019 2020 $ 139,359,387 6,774,024 21,218,968 $ 135,476,194 8,205,757 20,525,616 2021 2022 $ 143,607,647 7,048,301 31,134,716 $ 137,816,027 10,374,081 37,683,599 2023 2024 $ 149,909,918 15,377,348 34,506,708 $ 163,878,931 14,848,954 28,093,984 $ 167,352,379 $ 164,207,567 $ 181,790,664 $ 185,873,707 $ 199,793,974 $ 206,821,869 $ 83,567,240 $ 88,975,174 $ 96,269,258 $ 105,103,994 $ 107,638,120 $ 112,591,908 23,939,802 23,629,333 23,449,836 18,780,330 21,907,858 23,689,829 $ 107,507,042 $ 112,604,507 $ 119,719,094 $ 123,884,324 $ 129,545,978 $ 136,281,737 $ 222,926,627 $ 224,451,368 $ 239,876,905 $ 242,920,021 $ 257,548,038 $ 276,470,839 6,774,024 8,205,757 7,048,301 10,374,081 15,377,348 14,848,954 45,158,770 44,154,949 54,584,552 56,463,929 56,414,566 51,783,813 $ 274,859,421 $ 276,812,074 $ 301,509,758 $ 309,758,031 $ 329,339,952 $ 343,103,606 14"/ 198 CITY OF SHAKOPEE CHANGES IN NET POSITION Years 2015 Through 2024 EXPENSES: Governmental Activities: General Government Public Safety Public Works Culture and Recreation Conseivation and Natural Resources Economic Development Other Total Governmental Activities Expenses Business -Type Activities: Sewer Storm Refuse Total Business -Type Activities Expenses Total Primary Government Expenses PROGRAM REVENUES: Governmental Activities: Charges for Services: General Government Public Safety Public Works Culture and Recreation Conservation and Natural Resources Economic Development Operating Grants and Contributions Capital Grants and Contributions Total Governmental Activities Program Revenues Business -Type Activities: Charges for Services: Sewer Storm Refuse Operating Grants and Contributions Capital Grants and Contributions Total Business -Type Activities Program Revenues Total Primary Government Program Revenues Net (Expense) Revenue: Governmental Activities Business -Type Activities Total Primary Government Net Expense 2015 2016 2017 2018 2019 $ 4,237,647 $ 4.205,975 $ 4,624,885 $ 5,267,652 $ 5,372,566 10,582,354 13.281,715 11,981,416 11,376,216 12,921,133 8,552,096 8.593,885 9,695,789 12,431,309 12,681,165 4,355,453 4,653,362 5,359,259 4,953,434 5,171,408 - - - 87,555 169,247 2,603,741 2,104,584 1,630,516 3,069,377 3,271,933 274,960 1,190,824 1,112,571 1,009,230 666,405 30,606,251 34,030,345 34,404,436 38,194,773 40,253,857 3,824,026 3,843,232 4,226,027 3,968,897 4,216,061 1,726,149 1,848,768 1,773,670 1,685,266 1,785,789 127,781 127,034 125,647 124,579 123,513 5,677,956 5,819,034 6,125,344 5,778,742 6,125,363 $ 36,284,207 $ 39,849,379 $ 40,529,780 $ 43,973,515 $ 46,379,220 $ 2,486,042 $ 2,410,321 $ 2,544,126 $ 2,811,252 $ 2,738,342 2,146,840 2,744,824 2,989,770 3,225,764 5,386,489 704,687 746,086 880,361 1,033,398 1,325,631 2,140,071 1,760,925 2,813,951 4,167,615 3,847,457 - - 52,384 3,683 24,000 256,312 26,520 113,908 311,737 2,509,986 2,777,982 2,068,419 2,036,547 1,881,409 1,735,543 2,187,039 3,847,001 5,061,933 6,527,458 11,747,169 12.883,489 15,170,148 18,502,801 22,022,206 2,829,981 3,292,166 3,380,321 3,682,569 4,222,236 1,765,679 1,632,218 1,272,506 1,230,592 1,304,738 103,637 105,309 131,753 104,638 137,824 - - 890 - 65,844 183,142 2,701,892 4,233,507 5,213,883 4,765,141 5,212,835 7,487,362 9,251,306 10,878,681 $ 16,512,310 $ 18,096,324 $ 22,657,510 $ 27,754,107 $ 32,900,887 $ (18,859,082) (912,815) $ (19771,897) (21,146,856) $ (19,234,288) (606,199) 1,362,018 (21,753,055) $ (17,672,270) (19,691,972) 3,472,564 (18,231,651) 4,753,318 $ (16,219,408) (13,478,333) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION: Governmental Activities: Taxes: Property $ 16,807,367 $ 18,015,507 $ 19,229,300 $ 20,005,373 $ 19,416,202 Franchise 418,545 448,023 1,251,819 1,343,650 1,305,556 Other 406,571 464,632 1,014,774 1,657,231 2,405,929 Unrestricted Investment Earnings 452,281 495,804 390,911 508,812 1,464,670 Gain on Disposal of Assets 87,819 50,132 1,576 14,588 165,784 Special Item 496,484 - - - Transfers (634,070) 1.271,853 26,990 436,480 (217,465) Total Governmental Activities 18,034,997 20,745,951 21,915,370 23,966,134 24,540,676 Business -Type Activities: Investment Earnings (Loss) Gain on Disposal of Assets Transfers Total Business -Type Activities Total Primary Government Change in Net Position: Government Activities Business -Type Activities Total Primary Government 349,776 289,001 340,345 318,501 812,204 17,438 1,911 6,217 1,875 82,498 (496,484) (1,271,853) (26,990) (436,480) 217,465 (129,270) (980,941) 319,572 (116,104) 1,112,167 $ 17,905,727 $ 19,765,010 $ 22,234,942 $ 23,850,030 $ 25,652,843 $ (824,085) $ (400,905) $ 2,681,082 $ 4,274,162 (1,042,085) (1,587,140) 1,681,590 3,356,460 $ (1,866,170) $ (1,988,045) $ 4,362,672 $ 7,630,622 $ 6,309,025 5,865,485 12,174,510 In 2018 the City reported Conservation and Natural Resources separately from Culture and Recreation. Prior years have not been restated. In 2020 Conservation and Natural Resources was combined with Public Works. 199 148 Table 2 2020 2021 2022 2023 2024 $ 5,366,469 $ 5.476,971 $ 5,988,737 $ 5,910,579 $ 6,512,719 13,246,236 12.373,811 15,638,770 17,962,160 19,674,720 13,862,381 13, 880,078 14,572,386 16,038,602 16,177,262 4,445,956 5,173,536 5,943,934 6,039,360 6,587,521 24,223 72,748 55,165 44,604 44,160 5,927,106 3,051,908 5,002,819 3,769,340 2,866,321 1,214,033 1,169,247 1,272,813 1,530,985 1,406,349 44,086,404 41,198,299 48,474,624 51,295,630 53,269,052 4,496,890 4,394,259 4,339,366 4,556,318 5,133,671 1,759,785 1,918,958 1,777,363 2,114,125 2,327,621 122,766 121,379 354,854 2,134 1,067 6,379,441 6,434,596 6,471,583 6,672,577 7,462,359 $ 50,465,845 $ 47,632,895 $ 54,946,207 $ 57,968,207 $ 60,731,411 $ 2,584,666 $ 2,890,048 $ 3,991,541 $ 4,510,359 $ 4,167,583 4,036,947 5,271,207 6,983,904 7,381,574 6,699,301 978,043 1,850, 883 1,034,275 1,726,122 1,338,235 1,712,607 2,330,335 2,478,388 2,917,350 2,606,354 146,145 529,395 1,117,947 956,511 4,774,564 7,554,897 2,203,489 2,037,280 2,699,761 4,498,321 13,015,138 11,105,707 12,585,365 7,993,788 18,731,293 32.912,508 28,326,699 32,275,997 26,461,533 4,056,714 4,377,349 4,781,238 5,146,171 5,912,682 1,337,694 1,296,199 1,403,523 1,457,255 1,486,426 139,826 131,240 98,350 90,000 90,000 - 1,724 81,409 114,780 1,679,881 7,999,749 4,094,910 4,863,274 6,307,680 7,214,115 13, 804,537 10,3 79, 745 11,638,109 13,911,568 $ 25,945,408 $ 46,717,045 $ 38,706,444 $ 43,914,106 $ 40,373,101 $ (25,355,111) $ (8,285,791) $ (20,147,925) $ (19,019,633) $ (26,807,519) 834,674 7,369,941 3,908,162 4,965,532 6,449,209 $ (24,520,437) $ (915,850) $ (16,239,763) $ (14,054,101) $ (20,358,310) $ 20,703,562 $ 21,724,568 $ 23,060,873 $ 24,220,022 $ 25,946,932 1,157,614 1,312,325 1,706,284 1,570,945 1,295,303 2,533,400 3,021,589 2,957,522 3,503,803 2,738,508 1,371,386 (355,723) (2,638,052) 3,457,281 3,301,707 57,627 51,932 - - (3,613,290) 114,197 (855,659) 187,849 552,964 22,210,299 25.868,888 24,230,968 32,939,900 33,835,414 649,501 (91,157) (648,591) 880,481 839,514 - 3,490 3,613,290 (114,197) 855,659 (187,849) (552,964) 4,262,791 (205,354) 207,068 696,122 286,550 $ 26,473,090 $ 25,663,534 $ 24,438,036 $ 33,636,022 $ 34,121,964 $ (3,144,812) $ 17,583,097 $ 4,083,043 $ 13,920,267 $ 7,027,895 5,097,465 7,164,587 4,115,230 5,661,654 6,735,759 $ 1,952,653 $ 24,747,684 $ 8,198,273 $ 19,581,921 $ 13,763,654 200 149 CITY OF SHAKOPEE FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years General Fund: Nonspendable: Prepaids Inventories Notes Receivable Leases Committed to: Building Permits Assigned SandVenture Public Safety Building Offical Modular Vehicle Barriers Unassigned Total General Fund All Other Governmental Funds Nonspendable: Prepaids Restricted for: Forfeitures DARE SCDP Grant Opioids Settlement Public Safety Revolving Loans Local Affordable Housing Aid Economic Development Debt Service Capital Improvements Assigned to: Telecommunication Capital Improvements Capital Projects Funds Unassigned Total all Other Governmental Funds 2015 $ 21,573 2016 $ 22,188 9,818,537 10,739,178 $ 9,840,110 $ 10,761,366 180,555 4,683 260,865 674,910 3,085,157 1,425,798 108,627 6,130,194 1,505,595 (1,715,102) 186,965 4,734 263,787 1,503,917 3,712,584 7,213,258 70,795 4,744,275 2,244,591 (39,928) 2017 $ 24,602 34,421 11,918,971 2018 $ 25,613 43,171 12,250,660 $ 11,977,994 $ 12,319,444 221,048 10,805 138,004 356,588 3,608,453 1,539,267 74,139 6,592,822 530,329 (3,241,015) $ 3,801 195,322 18,368 73,004 3,207,099 3,166,302 76,698 6,423,824 516,211 (2,823,436) $ 11,661,282 $ 19,904,978 $ 9,830,440 $ 10,857,193 201 150 Table 3 2019 2020 2021 2022 2023 2024 $ 125,172 $ 108,547 $ 167,407 $ 185,827 $ 261,826 $ 259,365 29,944 29,682 30,157 32,531 33,696 35,999 200,000 200,000 6,727 16,206 27,650 1,588,000 1,104,000 1,430,000 2,333,000 2,650,000 2,225,000 200,000 200,000 200,000 - 65,000 375,000 14,136,227 14,891,656 16,144,333 17,247,211 18,462,750 20,333,226 $ 15,879,343 $ 16,133,885 $ 17,771,897 $ 20,005,296 $ 22,024,478 $ 23,521,240 $ 1,401 $ 120 $ 24,831 $ 5,877 $ 4,664 $ 3,872 172,971 158,179 181,269 121,712 101,381 62,240 - - 5,305 1,916 18,368 18,368 18,368 18,368 18,368 125,048 156,085 264,162 1,622,547 584,665 212,328 1,022,360 1,380,179 1,300,084 2,407,888 3,384,294 3,147,055 4,332,924 1,747,005 2,547,833 3,293,094 3,683,935 3,902,170 5,709,910 5,249,748 9,387,453 7,808,038 4,686,976 109,472 124,018 46,300 68,084 83,875 95,797 5,771,223 5,363,301 5,691,414 10,777,601 12,697,207 12,606,903 720,445 743,188 4,491,480 3,930,285 1,001,688 1,023,269 (2,151,671) (4,665,559) (4,665,559) (4,532,260) (6,337,057) (10,410,865) $ 11,691,434 $ 12,806,809 $ 14,165,035 $ 23,750,085 $ 22,863,083 $ 16,199,492 202 151 CITY OF SHAKOPEE CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years 2015 2016 2017 2018 REVENUES: Taxes Special Assessments Licenses and Permits Intergovernmental Charges for Service Fines and Forfeits Miscellaneous Total Revenues EXPENDITURES: General Government Police Public Works Culture and Recreation Conservation and Natural Resources Economic Development Debt Service: Principal Interest and Other Charges Capital Outlay Total Expenditures Excess of Revenues Under Expenditures OTHER FINANCING SOURCES (USES): Bonds Issued Sale of Assets Premium on Bonds Issued SBITA Issued Lease Issued Transfers In Transfers Out Special Items Total Other Financing Sources (Uses) $ 17,225,535 $ 18,549,468 $21,476,591 $ 22,999,326 1,157,405 1,615,161 933,773 984,158 2,989,038 3,146,818 3,283,495 4,361,054 5,413,650 5,730,576 4,695,847 5,028,349 2,493,325 2,648,478 3,433,660 4,410,024 171,856 104,943 241,874 95,821 604,816 877,108 1,004,665 589,865 30,055,625 32,672,552 35,069,905 38,468,597 3,864,337 4,016,871 4,415,257 5,047,823 10,209,739 10,643,342 11,039,220 11,692,533 3,036,284 3,061,172 2,973,840 5,634,985 3,891,542 4,269,211 5,228,929 3,598,591 - - - 89,488 2,352,621 2,092,337 1,611,073 2,848,426 5,615,000 1,685,000 1,685,000 1,995,000 365,898 864,494 1,259,987 1,171,990 5,461,607 32,159,412 18,386,260 5,928,038 34,797,028 58,791,839 46,599,566 38,006,874 (4,741,403) (26,119,287) (11,529,661) 461,723 29,500,000 9,134 104,661 2,237,727 79,100 6,135,344 6,916,355 7,282,929 4,038,516 (5,145,452) (3,378,977) (4,794,939) (3,132,036) (634,070) - 355,822 35,284,239 2,671,751 906,480 Net Change in Fund Balance $ (4,385,581) $ 9,164,952 $ (8,857,910) $ 1,368,203 Debt Service as a Percentage of Noncapital Expenditures 20% 9% 10% 9% In 2018 the City reported Conservation and Natural Resources separately from Culture and Recreation. Prior years have not been restated. In 2020 the City reported Conservation and Natural Resources as part of Public Works. 203 152 Table 4 2019 2020 2021 2022 2023 2024 $ 23,139,620 835,345 5,912,112 5,358,921 4,906,607 83,957 1,493,245 41,729,807 $ 24,370,324 $ 26,058,683 990,509 1,398,860 3,923,439 8,129,101 8,491,711 9,773,799 3,035,482 5,023,786 21,379 53,386 2,394,550 1,210,039 43,227,394 51,647,654 $ 27,707,122 893,686 9,353,506 9,326,423 4,440,351 475,364 (1,024,585) $ 29,282,848 $ 30,024,424 1,312,090 618,928 10,183,808 7,453,141 12,735,936 7,278,178 5,961,270 5,883,690 415,715 502,117 3,419,982 2,732,008 51,171,867 63,311,649 54,492,486 5,130,038 5,241,568 5,390,005 5,606,228 5,779,713 6,358,310 12,849,532 13,577,981 14,359,463 15,368,123 16,649,938 18,646,838 5,824,268 6,579,242 7,086,627 7,670,005 7,618,981 7,864,261 3,885,624 3,559,908 4,190,443 4,835,898 5,017,325 5,198,428 169,959 25,557 79,244 36,727 43,040 44,160 2,510,329 5,819,029 2,847,578 2,834,350 2,356,434 1,338,321 1,910,000 1,750,000 3,680,000 1,475,000 2,032,025 2,710,189 1,096,743 1,171,363 1,397,438 1,287,695 1,771,030 1,624,173 9,047,340 13,690,958 9,657,226 10,979,692 19,081,220 15,392,386 42,423,833 51,415,606 48,688,024 50,093,718 60,349,706 59,177,066 (694,026) (8,188,212) 2,959,630 4,220,000 8,165,000 579 10,284 267,587 832,845 1,125,289 3,226,176 (525,289) (2,676,176) 5,088,166 9,558,129 $ 4,394,140 8% 6,331,732 (6,099,632) 1,078,149 2,961,943 (4,684,580) 10,000,000 984 14,416 6,338 117,582 - - 29,297 75,155 26,242 386,652 36,258 2,277,547 9,374,633 3,853,428 (1,877,547) (11,634,761) (4,453,428) 232,100 10,544,808 (1,829,763) (482,249) $ 1,369,917 $ 3,191,730 $ 11,622,957 $ 1,132,180 $ (5,166,829) 7% 12% 6% 8% 9% 204 153 CITY OF SHAKOPEE Table 5 TAX CAPACITY AND TAXABLE MARKET VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Tax Less: Capacity as a Commercial Less: Fiscal Net Adjusted Total Taxable Percentage of Fiscal Residential Industrial Other Tax Increment Disparity Tax Direct Market Taxable Year Property (a) Property Property (b) Property Contribution (c) Capacity (d) Tax Rate Value Market Value 2015 $ 26,419,959 $ 18,769,230 $ 625,872 $ 408,172 $ 2,068,024 $ 43,338,865 0.37862 $ 3,629,757,200 1.19% 2016 27,838,939 20,111,657 670,839 384,578 2,409,936 45,826,921 0.37902 3,843,037,400 1.19% 2017 28,199,409 23,224,857 608,016 827,765 2,219,811 48,984,706 0.38522 4,034,313,200 1.21% 2018 30,219,157 25,188,979 1,108,269 1,330,932 3,647,951 51,537,522 0.37212 4,341,199,500 1.19% 2019 32,113,022 27,026,224 1,084,001 1,657,341 3,923,222 54,642,684 0.34943 4,613,605,800 1.18% 2020 35,763,301 29,170,963 1,106,038 1,953,037 4,269,143 59,818,122 0.33965 5,063,434,500 1.18% 2021 38,756,283 32,123,467 1,819,208 2,554,354 5,102,644 65,041,960 0.32105 5,537,836,867 1.17% 2022 42,796,326 34,709,876 1,410,279 2,749,307 6,139,141 70,028,033 0.32111 6,044,797,135 1.16% 2023 54,133,179 36,878,916 1,255,486 3,393,736 6,235,453 82,638,392 0.28585 7,215,756,805 1.15% 2024 55,770,305 45,054,143 1,275,678 2,862,355 6,665,042 92,572,729 0.27402 7,782,044,997 1.19% Source: Scott County Assesor/Auditor By State Statute, property taxes are calculated and collected based on the prior year's assessor market value. (a) Includes single-family homes, townhouses, apartments and residential vacant land. (b) includes personal property, agricultural, railroad and utility classifications. (c) Figure represents fiscal disparities contribution net of fiscal disparities distribution. The City of Shakopee is a net contributor. (d) Figure represents total tax capacity less net fiscal disparities. Note that total direct tax rate in the next column is calculated based on total tax capacity less fiscal disparities contribution and less tax capacity in TIF districts. CITY OF SHAKOPEE Table 6 DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years City Direct Rate General Obligation Shakopee Debt Service Fiscal Operating Debt Service Total Direct School Scott Other Market Value Year Rate Rate Rate District County Jurisdictions Rate 2015 0.36867 0.00994 0.37862 0.35578 0.36638 0.05169 0.00536 2016 0.36710 0.01192 0.37902 0.53478 0.36175 0.05129 0.00605 2017 0.34063 0.04458 0.38522 0.49282 0.35896 0.04979 - 2018 0.32993 0.04219 0.37212 0.52141 0.35114 0.05732 2019 0.30976 0.03968 0.34943 0.52934 0.33841 0.06466 2020 0.30319 0.03646 0.33965 0.50558 0.32718 0.03154 2021 0.28762 0.03343 0.32105 0.33722 0.31025 0.04767 2022 0.28985 0.03126 0.32111 0.33444 0.30492 0.05025 2023 0.25789 0.02796 0.28585 0.30003 0.26578 0.04369 2024 0.24916 0.02485 0.27402 0.28602 0.26228 0.04576 Sources: Scott County Auditor 206 153 CITY OF SHAKOPEE Table 7 PRINCIPAL TAXPAYERS Current Year and Nine Years Ago 2024 2015 Percentage Percentage 2023/24 of Total Net 2014/15 of Total Adj. Tax Cap. Adj. Tax Tax Cap. Tax Cap. Taxpayer Type of Business Value* Rank Cap. Value Value Rank Value MCP Shakopee LLC Distribution $ 1,223,406 1 1.32% GEP X Addison LLC Apartments 863,721 2 0.93% Rahr Malting Grain Processing 753,833 3 0.81% $ 447,112 3 1.03% Shakkin LLC Warehouse/Manufacturing 619,949 4 0.67% J & J Minneapolis LLC Manufacturing 609,817 5 0.66% 449,000 2 1.03% Seagate Technology LLC Manufacturing/Research 589,714 6 0.64% 419,250 4 0.96% Soutwest Logistics Center, LLC Distribution 577,450 7 0.62% Lothenbach Properties Warehouse/Manufacturing 570,651 8 0.62% 399,250 5 0.92% Xcel Energy Electrical Generation 514,444 9 0.56% 625,521 1 1.44% EXETER 2101 4th LLC Warehouse/Manufacturing 484,760 10 0.52% St. Francis RMC Health Care 374,500 6 0.86% Certainteed Manufacturing 365,250 7 0.84% Shakopee Station LLC Retail 353,200 8 0.81% Canterbury Park Horse Racing 340,760 9 0.78% Valleyfair Amusement Park 323,250 10 0.74% $ 6,807,745 Source: Scott County Auditor 7.35% $ 4,097,093 9.41% *Current year values are ranked by Adjusted Net Tax Capacity value, which are adjusted for tax increment and fiscal disparities. Values for the nine year comparison are ranked by Net Tax Capacity value and not adjusted for tax increment and fiscal disparities 207 15b CITY OF SHAKOPEE Table 8 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Ratio of Accumulated Percentage Delinquent Collections Percentage Collections of Total Accumulated Taxes to Year Tax of Current of Levy of Prior Total Collections Delinquent Current Collected Levy Years Taxes Collected Years Taxes Collections To Tax Levy Taxes Years Taxes 2015 $ 16,773,267 $ 16,351,700 97.49% $ - $ 16,351,700 97.49% $ 145,958 0.87% 2016 17,610,195 17,316,074 98.33% 41,140 17,357,214 98.56% 76,631 0.44% 2017 18,926,341 18,628,201 98.42% - 18,628,201 98.42% 95,933 0.51% 2018 19,610,548 19,198,990 97.90% 43,706 19,242,696 98.12% 102,862 0.52% 2019 19,580,500 18,992,066 96.99% 61,887 19,053,953 97.31% 90,928 0.46% 2020 20,730,500 20,227,478 97.57% 57,390 20,284,868 97.85% 115,180 0.56% 2021 21,367,800 21,116,697 98.82% 163,802 21,280,499 99.59% 114,979 0.54% 2022 22,986,000 22,273,905 96.90% 215,912 22,489,817 97.84% 132,536 0.58% 2023 24,392,000 23,552,819 96.56% 336,147 23,888,966 97.94% 144,458 0.59% 2024 25,973,000 25,345,904 97.59% 427,906 25,773,810 99.23% 100,777 0.39% Source: Scott County Auditor 1. The above data does not include tax increment districts. 208 15" CITY OF SHAKOPEE Table 9 RATIO OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Activities General Tax Total Percentage Fiscal Obligation Increment Improvememt SBITA Lease Primary of Personal Per Year Bonds Bonds Bonds Liability Liability Government Income Capita 2015 $ 5,100,000 $ $ 3,115,000 $ $ $ 8,215,000 0.7% 208 2016 36,070,590 2,095,000 38,165,590 2.9% 948 2017 35,284,168 1,085,000 65,330 36,434,498 2.7% 886 2018 33,677,746 585.000 46,542 34,309,288 2.5% 826 2019 32,006,324 4,220,000 235,000 26,616 36,487,940 2.5% 857 2020 31,097,636 12,385,000 90,000 5,481 43,578,117 2.8% 997 2021 26,588,480 13,142,512 39,730,992 2.3% 871 2022 25,212,058 18,859,032 4,136,189 113,803 48,321,082 2.6%, 1,051 2023 23,770,636 18,174,099 4,132,928 121,483 569,207 46,768,353 2.5% 1,016 2024 22,304,213 17,389,166 3,734,668 269,725 360,115 44,057,887 2.0% 957 Sources: Details regarding the city's outstanding debt can be found in the notes to the financial statements. See Table 13 for income and population data. 209 15l CITY OF SHAKOPEE Table 10 RATIOS OF GENERAL BONDED OUTSTANDING Last Ten Fiscal Years Less: Net Percentage of Percentage General Tax Available General Actual Taxable of Total Fiscal Obligation Increment Improvcmemt Total in Debt Bonded Debt Value of Per Personal Year Bonds Bonds Bonds Bonds Service Outstanding Property Capita Income 2015 $ 5,100,000 $ $ 3,115,000 $ 8,215,000 $ 3,085,157 $ 5,129,843 0.23% $ 130 0.65% 2016 36,070,590 - 2,095,000 38,165,590 4,875,714 33,289,876 0.99% 827 2.90% 2017 35,284,168 - 1,085,000 36,369,168 4,265,148 32,104,020 0.90% 780 2.71% 2018 33,677,746 - 585,000 34,262,746 3,207,099 31,055,647 0.79% 748 2.48% 2019 32,006,324 4,220,000 235,000 36,461,324 3,147,055 33,314,269 0.79% 782 2.55% 2020 31,097,636 12,385,000 90,000 43,572,636 4,332,924 39,239,712 0.86% 898 2.80% 2021 26,588,480 13,142,512 - 39,730,992 1,239,273 38,491,719 0.72% 844 2.30% 2022 25,212,058 18,859,032 4,136,189 48,207,279 2,231,462 45,975,817 0.80% 1,000 2.57% 2023 23,770,636 18,174,099 4,132,928 46,077.663 3,470,018 42,607,645 0.64% 926 2.43% 2024 22,304,213 17,389,166 3,734,668 43,428,047 3,825,555 39,602,492 0.56% 860 2.00% Sources: 1. Metropolitan Council estimated for population. 2. Scott County Auditor 3. Details regarding the city's outstanding debt can be found in the notes to the financial statements. 210 159 (THIS PAGE LEFT BLANK INTENTIONALLY) 211 160 CITY OF SHAKOPEE Table 11 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31, 2024 Percentage Amount Applicable Applicable Long -Term To City of To City of Debt Shakopee (1) Shakopee Direct Debt: City of Shakopee Overlapping Debt: Independent School District No. 720 Independent School District No. 191 Scott County Metropolitan Council (2) Total Overlapping Debt: Total Direct and Overlapping Debt $ 44,057,887 100.0% $ 44,057,887 124,178,822 99,160,000 90,795,000 229,420,000 78.3% 97,223,160 3.8% 3,751,342 26.6% 24,151,526 1.3% 2,961,575 543,553,822 128,087,603 $ 587,611,709 $ 172,145,490 Source: Scott County and Dakota County Taxation Department Metropolitan Council Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each government. (1) The percentage of overlapping debt is estimated using net tax capacity. Applicable percentages were estimated by determining the portion of net tax capacity that is within the City's boundaries and dividing it by total net tax capacity for each entity. (2) Excludes general obligation debt supported by wastewater revenues and housing rental payments. Includes certificates of participation, leases and subscription liabilites. 212 161 CITY OF SHAKOPEE LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years 2015 2016 2017 2018 Market Value (Taxable) $ 3,629,757,200 $ 3,844,106,800 $ 4,034,313,200 $ 4,342,662,600 Debt Limit - Percent of Market Value (Note A) Amount of Debt Applicable to Debt Limit: General Obligation Bonds Available in Debt Service Funds Total Debt Applicable to Debt Limit 108,892,716 115,323,204 121,029,396 130,279,878 5,100,000 36,070,590 35,284,168 33,677,746 (1,511,502) (2,443,111) (3,102,308) (2,750,395) 3,588,498 33,627,479 32,181,860 30,927,351 Legal Debt Margin $ 105,304,218 $ 81,695,725 $ 88,847,536 $ 99,352,527 NOTE (A): M.S.A. Section 475.53 (Limit on Net Debt) Subdivision 1. Generally, except of otherwise provided in Sections 475.51 to 475.75, no municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of 3% of the market value of taxable property in the municipality." NOTE (B): M.S.A. Section 475.51 Definitions: Subdivision 4. "Net debt" means the amount remaining after deduction from its gross debt the aggregate of the principal of the following: (1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. (2) Warrants or orders having no definite or fixed maturity. (3) Obligations payable wholly from the income of revenue -producing conveniences. (4) Obligations issued to create or maintain a permanent improvement revolving fund. (5) Obligation issued for the acquisition, and betterment of public waterworks systems, and public lighting, heating or power systems and on any combination thereof or for any other public convenience from which a revenue is or may be derived. (6) Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other than those deductible under this subdivision. (7) All other obligations which under the provisions of law authorizing their issuance are not to be included in computing the net debt of the municipality. NOTE (C): M.S.A. Section 469.178, subdivision 1. (tax increment bonds) "... The bonds are not included for purposes of computing the net debt of any municipality." 213 162 Table 12 2019 2020 2021 2022 2023 2024 $ 4,613,605,800 $ 5,063,670,900 $ 5,540,321,100 $ 6,044,797,135 $ 7,215,756,805 $ 7,782,044,997 138,408,174 151,910,127 166,209,633 181,343,914 216,472,704 233,461,350 32,006,324 31,097,636 26,588,480 25,212,058 23,770,636 22,304,213 (2,729,462) (2,760,690) (3,644,630) (1,233,474) (1,344,662) (1,458,924) 29,276,862 28,336,946 22,943,850 23,978,584 22,425,974 20,845,289 $ 109,131,312 $ 123,573,181 $ 143,265,783 $ 157,365,330 $ 194,046,730 $ 212,616,061 214 16� CITY OF SHAKOPEE Table 13 DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Calendar Years Fiscal School Unemployment Total Per Capita Personal Year Population (1) Enrollment (2) Rate (3) Employment (3) Income (4) Income (5) 2015 39,523 8,939 3.0% 21,877 $ 31,965 $ 1,263,352,695 2016 40,254 8,927 3.2% 21,571 32,704 1,316,466,816 2017 41,143 9,036 2.6% 27,156 32,662 1,343,812,666 2018 41,519 8,636 2.4% 25,930 33,300 1,382,582,700 2019 42,595 8,807 2.8% 27,427 33,631 1,432,512,445 2020 43,698 8,665 6.1% 22,051 35,607 1,555,954,686 2021 45,593 8,572 2.3% 22,417 37,857 1,726,014,201 2022 45,961 8,573 2.2% 23,773 40,748 1,872,818,828 2023 46,037 8,286 2.3% 23,510 41,261 1,899,532,657 2024 46,037 * 8,354 2.4% 23,485 47,238 2,174,695,806 Source: 1. Met Council estimates and 2020 is the official census number. 2. Shakopee School District, SACS, Bloomington Lutheran 3. Minnesota Department of Employment and Economic Development Local Area Statistics 4. Census estimates 5. Per capita income times population * 2024 estimated population is not yet available. CITY OF SHAKOPEE Table 14 PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2024 2015 Total Total (1) City (1) City Taxpayer Type of Business Employees Rank Employment Employees Rank Employment Amazon Distribution 2,200 1 9.81% Valley Fair Amusement Park 1,706 (a) 2 7.61% 1,672 1 7.64% Emerson Manufacturing 1,528 (b) 3 6.82% 463 9 2.12% School District No. 720 Education 1,224 (b) 4 5.46% 1,290 2 5.90% Cyberpower Systems Manufacturing 1,160 5 5.17% Datacard Manufacturing 1,000 (b) 6 4.46% 820 6 3.75% St. Francis RMC Health Care 956 7 4.26% 830 5 3.79% Scott County Government 823 (b) 8 3.67% 632 8 2.89% Imagine Print Solutions Printing 775 9 3.46% 815 7 3.73% Canterbury Park Horse Racing 700 10 3.12% 839 4 3.84% Seagate Manufacturing/Research 1,000 3 4.57% Shutterfly Printing 400 10 1.83% 12,072 53.84% 8,761 40.06% Total Employment (2) 23,485 21,877 Source: (1) D&B Hoovers, https://app.dnbhoovers.com/, and a December 2024 best efforts contact of individual employers. This does not purport to be a comprehensive list. Some employers do not respond to inquiries. (2) Minnesota Department of Employment and Economic Development Local Area Statistics (a) At seasonal peak (b) Includes full and part-time and seasonal employees. 216 163 CITY OF SHAKOPEE FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years 2015 2016 2017 2018 2019 General Government: Administration City Clerk Finance Planning Facilities Maintenance Information Technology Public Safety: Police: Licensed Other Fire: Full time Building Inspection Public Works: Engineering Street and Utility Shop Park and Recreation: Park Maintenance Natural Resources Recreation Economic Development: EDA Total Source: City departments 7 8 8 9 9 3 3 3 3 3 4 4 4 4 4 5 6 5 6 5 5 3 3 2 2 4 5 5 5 5 48 48 47 50 50 10 10 11 12 12 7 7 7 8 8 5 5 5 5 7 8 8 8 9 10 16 15 15 15 15 3 3 3 3 3 9 9 9 9 9 1 1 1 - - 7 10 13 15 16 1 1 1 1 1 186 189 194 202 205 217 160 Table 15 2020 2021 2022 2023 2024 9 9 9 10 11 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 2 2 2 2 2 5 5 5 5 5 50 50 50 50 52 12 12 12 12 12 8 8 8 11 14 7 8 8 9 10 11 11 10 10 10 16 16 16 15 15 3 3 3 3 3 11 11 11 12 12 16 18 18 18 19 1 1 1 1 1 206 212 211 214 178 218 16" CITY OF SHAKOPEE OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years 2015 2016 2017 2018 General Government Planning Number of Case Files Number of Plats Filed Number of Acres Platted Public Safety Police Arrests Citations Calls for Service Fire Calls for Service Building Inspection Building Permits Issued Number of Inspections Single Family Homes Permitted Public Works Street Miles of Roadway 75 50 59 72 9 7 10 11 335 79 169 161 2,121 1,543 1,338 1,741 5,510 4,396 3,569 3,470 19,357 21,117 21,632 21,916 745 792 808 914 1,054 1,030 1,145 1,274 6,835 6,659 6,301 8,350 50 45 33 76 156 156 156 156.5 Park and Recreation Park Maintenance Acres Maintained 783 783 783 783 Recreation Program Participants 19,788 23,700 41,289 25,559 Community Center Memberships Sold N/A N/A N/A 1,880 Community Center Admissions N/A N/A N/A N/A Ice Rental Hours 1,589 1,773 2,870 3,158 Sand Venture Admissions N/A N/A N/A 20,867 Source: City departments 219 168 Table 16 2019 2020 2021 2022 2023 2024 83 59 49 63 9 11 11 12 131 305 294 206 55 8 156 47 15 253 1,683 1,206 1,574 1,258 1,122 1,046 3,391 2,278 2,552 2,699 2,846 2,715 22,910 22,137 22,591 22,423 22,358 22,661 957 1,146 1,544 1,732 1,728 1,938 1,158 1,611 1,686 3,331 2,534 2,021 9,507 11,191 11,195 15,482 16,793 16,279 140 165 202 203 132 271 161.2 163.0 165.9 170.5 173.6 178.2 783 783 765 765 765 765 20,811 6,508 25,244 28,287 33,889 39,817 1,992 1,704 1,408 1,417 1,496 1,548 N/A N/A N/A 42,329 47,070 45,491 3,410 2,134 7,518 6,875 7,704 8,287 20,913 CLOSED 30,674 27,568 32,568 CLOSED 220 169 CITY OF SHAKOPEE CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years 2015 2016 2017 2018 2019 Police: Stations Patrol Zones Patrol Units Fire Stations Street: Miles of Roadway Traffic Signals 1 1 1 1 1 4 4 3 3 3 15 15 16 16 16 2 2 2 2 2 156 156 156 157 161 30 30 30 30 30 Parks: Acres 783 783 783 783 783 Ball Fields/Sports Fields 56 56 57 57 57 Playgrounds 27 27 27 27 27 Source: City departments * Number updated to include all field types not just baseball fields in 2022. 221 170 Table 17 2020 2021 2022 2023 2024 1 1 1 1 1 3 3 3 3 3 16 16 16 16 16 2 2 2 2 2 163 166 171 174 178 30 30 30 30 30 783 765 765 765 765 57 57 94* 94* 94* 27 27 29 31 30 222 171 (THIS PAGE LEFT BLANK INTENTIONALLY) 223 172 (..hIr,iGlr „ vl mc( uwtl'If II!lo oo , � I 'Dial 4 ilaulaalallaaaaaaaaaa II e tale' 11111111111111111111111111111111111111111111 2M1INI1111111111 tat ii�llllliiii,l�u; 1111111111111111,,,1„ �;IIIII�,��III����� r ����� rrn «llnuulllulllllllVrr� t� fIllilNNIIIiHr I V (Ollil111 ��l�I�ll�ljllill f��tl91a91A91pVIon, l4wiwNO hIh wNatMtiuhl�dl�( , ^ uuuuulij°i r �filP IflhldrthVlli�6lVluiiMl(e��hINU�� I „�i i i 1111111111111111111111111100 loaloalooloolovo 111 IIIIII((IIII��I�I� s Executive Governance Summary City of Shakopee Shakopee, Minnesota For the year ended December 31, 2024 >f 5201 Eden Avenue„ Ste 250 Ediine, MN 55436 "Y 952. 835.9090 Manka.'alo Off i ' 100 Warren Street, Ste (0l3 Man lkatca, MN 56007111 ' 50.625 212.1 ,Scott S(I(lie Office 14500 N NolrtIns g it Nllvd, Ste 2:3;.3 Scottsdale, AZ 8 260 11111 480.864.5579 I>j�l4tuoli�uuuolmaumulum�� II ion M., 224 May 15, 2025 Management, Honorable Mayor and City Council City of Shakopee, Minnesota We have audited the financial statements the governmental activities, the business -type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City of Shakopee, (the City) for the year ended December 31, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Governmental Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated January 2, 2025. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 2 225 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The City changed accounting policies in 2024 related to the accounting and financial reporting for compensated absences (GASB 101). We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were depreciation on capital assets, allocation of payroll, compensated absences, lease balances, other postemployment benefits payable and the liability for the City's pension. • Management's estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight-line method. • Management's estimate of its OPEB liability is based on several factors including, but not limited to, anticipated retirement age for active employees, life expectancy, turnover, and healthcare cost trend rate. • Management's estimate of its pension liability is based on several factors including, but not limited to, anticipated investment return rate, retirement age for active employees, life expectancy, salary increases and form of annuity payment upon retirement. • Management's estimate of its lease liability, receivables and related deferred inflows are based on several factors including, but not limited to, estimated incremental borrowing rates. • Management's estimate of certain payables related to construction projects are based on certain assumptions including contract estimates and project completeness. • Management's estimate of future compensated absences usage is based on historical usage data. We evaluated the key factors and assumptions used to develop these estimates in determining that they are reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management Representations We have requested certain representations from management that are included in the management representation letter dated May 15, 2025. �Itrl� ,vi V 116 .4 `V V YM1'M 3 226 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the required supplementary information (RSI) (Management's Discussion and Analysis, the Schedules of Employer's Share of the Net Pension Liability, the Schedules of Employer's Contributions, and the Schedule of Changes in the Other Post -Employment Benefits Liability and Related Ratios, which is information that supplements the basic financial statements. Our procedures onsisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information (combining and individual fund financial statements and schedules), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory or statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on them. Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future -City financial statements: GASB Statement No. 102 - Certain Risk Disclosures GASB Statement No. 103 - Financial Reporting Model Improvements GASB Statement No. 104 - Disclosure of Certain Capital Assets Further information on upcoming GASB pronouncements. �hltrl� ,vi V 116 .4 `V V YTM Effective: 12/31/2025 Effective: 12/31/2026 Effective: 12/31/2026 4 227 * * * * * Restriction on Use The purpose of this communication is solely for the information and use of the City Council, management and the Minnesota Office of the State Auditor and is not intended and should not be used by anyone other than those specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. Abdo Minneapolis, Minnesota May 15, 2025 �Itrl� ,vi 5 228 P',r��lrl Irtl� Efl� IrriGlr �r,� vl �mc( I�)I uwtl'If II , Ina 4 ilaulaaaHlaaaaaaaaaa WIIISWdIN 11111111111111111 111111111111111I 1111111111111111111 INI' tat Illllllllllliiiiiuluu� '')1)11111111111111111111111111 611311 '11111111111111111111111111111111111a 1111 Il�i����llll,i�u; IIIIIIIIIIIIIIII,,,I„ �;IIIII�,��III����� r ����� rrn «!lmuullullllulVrr� W� nr 611, mv,,ii000lim0000000jlijil0000000000000000000m000000000000000m00000000000000000000000000lli.00'ooloiooioiiliii'iliilii'll'' 'Illlijl((((�I(Iii��l��ll��ljllill I,�f����91a91A91q�l�ald,;tA4�iw�iNO Other Required Reports City of Shakopee Shakopee, Minnesota For the year ended December 31, 2024 5201 Eden Avenue„ Ste 250 Ediine, MN 55436 I"Y 952.835 9090 Manka.'alo Off i ' 100 Warren Street, Ste (0l3 Man lkatca, MN 56001 ' 50.625 272.1 re(mtiW�llli rI(Ii�flhi61�hu1���5�VIu��M�(e��hlNu��NWN��N�1�u���ai�� No o 'i'" ri)' 7Yhri ieulai ! �OVPII Halal 111111111111111111 �alaanalhauala uuuuuiiipl@ >j�li�uNIluuOlulNuumlumii �(�III M., ion Scott S(I(Il(r Off ice 14500 N NoIrtIn sMrplFit Nllvd, Ste 2:3;.3 Scotf;otaFe, AZ 8 260 IP 480.864.5579 229 City of Shakopee, Minnesota Other Required Reports Table of Contents For the Year Ended December 31, 2024 Page No. Other Required Reports Independent Auditor's Report on Minnesota Legal Compliance Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 4 5 2 230 OTHER REQUIRED REPORTS CITY OF SHAKOPEE SHAKOPEE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 3 231 INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Shakopee, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States the financial statements of the governmental activities, the business -type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City of Shakopee, Minnesota (the City) as of and for the year ended December 31, 2024, and the related notes to the financial statements, and have issued our report thereon dated May 15, 2025. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. This report is intended solely for the information and use of those charged with governance and management of the City and the State Auditor and is not intended to be, and should not be, used by anyone other than these specified parties. Abdo Minneapolis, Minnesota May 15, 2025 4 232 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Council City of Shakopee, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City of Shakopee, Minnesota (the City), as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 15, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 5 233 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Abdo Minneapolis, Minnesota May 15, 2025 �Itrl� ,vi V 116 .4 `V V YM1'M 6 234 May 15, 2025 Prinlnpr,ralttiion) crairrt Communication with Those Charged with Governance Management, Honorable Mayor and City Council City of Shakopee Shakopee, Minnesota We are engaged to audit the financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Shakopee (the City) for the year ended December 31, 2024. Professional standards require that we provide you with the following information related to our audit. We would also appreciate the opportunity to meet with you to discuss this information further since a two-way dialogue can provide valuable information for the audit process. Our Responsibilities under U.S. Generally Accepted Auditing Standards and Government Auditing Standards 1. As stated in our engagement letter dated January 2, 2025, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. 2. As part of our audit, we will consider the system of internal control of the City. Such considerations are solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. 3. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will also perform tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit. Generally accepted accounting principles provide for certain required supplementary information (RSI) to supplement the basic financial statements. Our responsibility with respect to Management Discussion & Analysis, the Schedule of Net Pension Liability and Employer Contributions and the Schedule of Changes in the OPEB Liability and Related Ratios which supplement(s) the basic financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. However, the RSI will not be audited and, because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance, we will not express an opinion or provide any assurance on the RSI. We have been engaged to report on Combining and Individual Fund Financial Statements and Schedules Schedules which accompany the financial statements but are not RSI. Our responsibility for this supplementary information, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Edina Office 5201 Eden Avenue, Ste 250 Erfina, MN 55436 p 952.8"35.90190 Mankato Office Scottsdale Office 100 Warren Street, Ste 600 Mankato, MN 56001 P 507.625.2727 14500 N (North^3iight Blvd, Ste 233 Scottsdalle, AZ 85260 480.864.5579 235 March 21, 2025 We have not been engaged to report on the Introductory Section and the Statistical Section, which accompany the financial statements but are not RSI. Our responsibility with respect to this other information in documents containing the audited financial statements and auditor's report does not extend beyond the financial information identified in the report. We have no responsibility for determining whether this other information is properly stated. This other information will not be audited and we will not express an opinion or provide any assurance on it. Planned Scope, Timing of the Audit, Significant Risks, and Other An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Our audit will include obtaining an understanding of the entity and its environment, including the system of internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. We will generally communicate our significant findings at the conclusion of the audit. However, some matters could be communicated sooner, particularly if significant difficulties are encountered during the audit where assistance is needed to overcome the difficulties or if the difficulties may lead to a modified opinion. We will also communicate any internal control related matters that are required to be communicated under professional standards We are required by our professional standards to perform a risk assessment and to communicate what we have determined to be the significant risks of the audit of the City. We have identified the following significant risk(s) of material misstatement as part of our audit planning: • Revenue Recognition • Management Override of Controls We began our audit in April 2025, and will issue our report on approximately May 15, 2025. Andy Berg is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. This information is intended solely for the use of city council and management of the City of Shakopee and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Abdo I", 116.,C • 236 110,j'ill Ih �!! III I IM'M'MIIII ol'Ifl' �uu 6 tlo"I ul l I II^IIIII'�, IIIIIIN'nd°°lulil II;11' uIIiI II I,II' I lu � 'I ��illu � N IV;II !I NI"V� i YI I olollloly"''I ' � �� I I e ii\i\i�O� I Ioi?,,,„, I rl ° "ii lllliil,lu Y, II' ,ttiolt 111111 1111111 1II IIIIIIII li'IIII ,PII ulu Ruil y I V � VV II �yII VI V �I� VII1 4 � ol w ilii� lwuiulwlllI �, 11111 �i'udliIIIIiIIIIIIiiiiIIIiiiIlM III v,I,01 I;P iljlj �A yo III mpili I IIII 'IuIIIIVII IVYIIVI II NI 11 I�Nuyl NII uiI mIIIIIII(filittilljj'iiii . III (IIII NNli oollIIIIIIIIIIX""u"Ill ��Itl�GIIGIItl ii m,owauaua ii)i)il lb ''II e )I1, �119N lul IIII uuuuuuoouuuuuummuuuuuuil mII ilili LI � � I� uI: i I�N�1 II. 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O O O O O O O O O ON CO N N N to to Cities in Scott County ▪ City of Shakopee Senior Associa Dave Abriol Senior Associate Shakopee City Council 10.b OPEE June 3, 2025 Agenda Item: Final Plat of Richland Court Prepared by: Mark Noble, Senior Planner Reviewed by: Michael Kerski, Director of Planning and Development Action to be considered: Approve Resolution R2025-067 approving the Final Plat of Richland Court. Motion Type: Simple Majority Background: Stonebrooke Engineering, on behalf of Matt Logeais (South Oaks Realty, Inc., property owner) has made application for Final Plat of Richland Court. The property is located north of CSAH 78, and east of Townline Avenue (County Road 79). The property is 4.38 acres, with the plat identifying eight (8) residential lots and two (2) outlots that would consist of a storm pond and a wetland. The stormwater pond is located on the northside of proposed Kristal Court and the wetland is located on the south side of proposed Kristal Court, both just east of Townline Avenue (CH 79). The area of the outlots is 1.38 acres and the additional right-of-way area is 0.76 acres (city code states that right-of-way is excluded when determining density), which would result in net area of 2.23 acres and 3.58 units/acre. The development is compliant with the requirements of the single-family residential guiding (3-6 units/acre) and the R-1 B zoning (max. 5 units/acre). The applicant is a custom home builder and has shared that if this 8 - lot subdivision is approved, he would build homes compliant with the R-1 B design and performance standards. City departments, Scott County and other outside agencies were given the opportunity to review and provide comments regarding this application. Comments are included below and are attached to this report and have been incorporated into the draft Resolution. City Engineering recommend approval, conditioned on compliance with their May 22nd & May 28th memos and redlined drawings, and conditioned that the easements listed below are shown on the final plat: 1. Need to verify the drainage swales behind lots 5, 6, 7, and 8 are within a drainage and utility (D & U) easement. Currently, they appear to be located outside the D&U easement. 2. Revise rear yard easement from 5 feet to 10 feet behind Lot 1. 256 3. Remove blanket D&U easement for Outlots A and B and include a 10 ft. easement adjacent to Kristal Court and CH 79. These changes have been made on the new submitted final plat drawings attached. SPU commented that the watermain sheet needs updates per notes shown on 51169 Planset 2025-4-28, payment of SPU Trunk invoice #1261 for the amount $18,174.32, and payment of the SPU Plan Review & Inspection fee of $9,537.00. Scott County has commented that the developer would be responsible for the installation of a northbound right -turn lane on CH 79 with development, consistent with the most recent road design plans. Additionally, no ponding, berming, signage, or landscaping shall be permitted in the County right of way and any work within the County right of way shall require the issuance of a county permit before construction begins. Recommendation: Approve requested action. Budget Impact: N/A Attachments: Richland Court FP Resolution.docx Final Plat Application Narative.pdf Site Aerial.pdf RICHLAND COURT final plat.pdf Street, utility & grading plans.pdf Landscape Plan.pdf County Road 79 Design.pdf Richland Court FP Eng Memo.docx STORMWATER REVIEW MEMO 5-28-2025.PDF Richland Court Final Plat Eng redlines.pdf 257 RESOLUTION R2025-067 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE FINAL PLAT OF RICHLAND COURT WHEREAS, Stonebrooke Engineering, applicant, and South Oaks Realty, Inc., property owner, have made application for Final Plat of RICHLAND COURT; and WHEREAS, the property upon which the request is being made is legally described as: Lot 1, Block 1, Bechrich Park Estates, Scott County, Minnesota; and WHEREAS, all required public notices regarding the public hearing for the Preliminary Plat were duly sent and posted and all persons appearing at the hearing have been given an opportunity to be heard thereon; and WHEREAS, the Planning Commission held a public hearing and reviewed the Preliminary Plat on April 3, 2025; and WHEREAS, the City Council reviewed and approved the Preliminary Plat on April 15, 2025; and WHEREAS, the City Council reviewed the Final Plat on June 3, 2025; and NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota that the Final Plat of RICHLAND COURT is hereby approved subject to the following conditions: I) The following procedural actions must be completed prior to the release of the Final Plat for recording: A. Approval of title by the City Attorney. B. Comply with conditions identified in the May 22 & May 28, 2025 memos and the redlined plans from City Engineering. C. Comply with SPU standard terms and conditions. Developer will be required to pay Trunk Water Charge to SPU for net developable acreage. SPU will pay the developer trunk oversizing where SPU requests pipes larger than required to meet the lateral requirements per SPU Water Policy Manual. Utility plan revisions are required and have been noted in the e -permit system on the construction plan set. D. Further electric design review and discussion is required for SPU existing overhead electric along West property line. Other small utilities have attachment to SPU overhead facilities and would be required to relocate should SPU need to relocate existing overhead to underground due to NESC vertical clearances from Kristal Court 258 Road. Developer would be required to install SPU conduits if relocation is required. SPU electric per lot fee applies for joint trench small utilities construction. Payment required before joint trench construction. SPU requires signed electric terms and condition and signed underground distribution agreement from developer. E. The developer would be responsible for the installation of a northbound right turn lane on CH 79 with this development, consistent with the most recent road design plans. F. No ponding, berming, signage, or landscaping shall be permitted in the County right of way. G. Any work within the County right of way shall require the issuance of a county permit before construction begins. H. Comply with landscape requirements of the City Code Sections 151.112 (Landscape Requirements) and 151.113 (Tree Preservation Requirements). Revise submitted landscape plan to include providing at least one (1) street tree in the boulevard per lot where feasible, and a second tree in the front yard, or if not feasible due to easements or spacing, in the rear yard. I. Construction and development of lots shall comply with the design standards of City Code Section 151.034 (Urban Residential Zone). J. House design and performance standards shall be compliant with City Code Section 151.108 (Construction Material). K. Park dedication fees in the amount required by the City Code and adopted City fee schedule shall be paid prior to the recording of the final plat. Adopted in Regular session of the City Council of the City of Shakopee, Minnesota, held on the 3rd day of June, 2025. Mayor of the City of Shakopee ATTEST: Richard Parsons, City Clerk 259 ARRA' UUvE To: The City of Shakopee From: Aaron Mages Date: 04/29/25 Re: Richland Court - Subdivision Property Description: Lot 1, Block 1, BECKRICH PARK ESTATES PID: 271650010 Stonebrooke Engineering on behalf of owner Matt Logeais (South Oaks Realty Inc.) is requesting final plat approval for Richland Court. The property is currently platted as one lot and is primarily open grass land with a wetland on a portion of the property. The property is accessed from County State Aid Highway No. 79 which runs along the west line of the property. The owner would like to replat the property into 8 single family lots that will be accessed by a cul-de-sac road that will be constructed as part of the project. The property is currently zoned R1B. All of the lots would meet the R1B zoning requirements and would not require rezoning. We are currently working with Scott County to meet their access requirements. The preliminary plat was approved per Resolution R2025-003. a 3 ":::"?"79 w o�M„7a f o 260 'I6daii��liii;IIIIIIIIIIPIIII IiIG; ii 1010HououoUu u udiillm k„ "I ydhuui'VY pmllloiupiiili"' SF-[AKoI'Fs �. NA Richland Court Final Plat auuuuhl May 29, 2025 0 0 03 0 06 0 12 nil 261 ZGZ OFFICIAL PLAT COPY £9Z 553 Z CIVIL SITE LEGEND'. v 5 a g (R00 w0 mMU Na DEaL 1001 iig vi 2 rea.o3 RICHLAND HOMES- SHAKOPEE DEVELOPMENT STREET PLAN - PLAN VIEW a� eir 0 mssuvi3a ow Nrna — s2LLs\— u,asc:a — szmz 'ezJ,v 99Z Z (9 ROAD HOLD DOWN CLAY LINEAR HOLD DOWN 5,917 CY OF ALL NET CUT - FILL RICHLAND HOMES- SHAKOPEE DEVELOPMENT GRADING PLAN 0 M P'OV319—LL-69 LLS\Sall Poa\q ue wdolane0 Pu of w�21 — 69LLS\buueeui6 u3 Moo�geuaa,5\:a — wdg):g — SZOZ 'HZ V 99i z I I 2 g �i prom 3 ,<<eaS, OirldSZU x,60.,, 01708:T3 RICHLAND HOMES- SHAKOPEE DEVELOPMENT UTILITY PLAN - SANITARY SEWER a�rip MP\aviiNVS—aL-6e sew Po=\woiw, — e0LLs a..,4au0asba — wacc:a — eaoa 'ea - 0 GENERAL WATERMAIN NOTES: ■ ■ ■ RICHLAND HOMES- SHAKOPEE DEVELOPMENT UTILITY PLAN - WATERMAIN : 993 2 FES-600 TO FES 602 CB -400 TO FES 402 : ■ a ■ a 8 _ ; RICHLAND HOMES- SHAKOPEE DEVELOPMENT STORMWATER MANAGEMENT PLAN : LANDSCAPING SUMMARY 6 so 00 O O 0 O Z EXISTING TR a m ri SAN a Y.$ a 5 RICHLAND HOMES- SHAKOPEE DEVELOPMENT LANDSCAPE PLAN d) 1 0 fiMP9d,66ry 1-80-6916VeIS pooApuewdoieoe0 Puoiwla — 6906V6uuaau6uJ noo'4auo1S\:0 — wd,6:B — 0000 00 �d0 OLZ GENERAL SITE DEMOLITION AND CLEARING NOTES: m SITE DEMOLITION LEGEND: | ! . ! l. 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GENERAL GEOME N RICHLAND HOMES- SHAKOPEE DEVELOPMENT COUNTY ROAD 79 TURN LANE a� rip 0 mP'SM., NO.. 9NV 311S--1-69LLS\seiy pm\ — 69LLs \:6 — w sl:5 — 9zoz 'Hz J,V iLi Op e ghg h RICHLAND HOMES- SHAKOPEE DEVELOPMENT COUNTY ROAD 79 TURN LANE STRIPING AND SIGNAGE PLANE d rip 0 P 3 eN ONe ON1d1,1S—,—s91.LS\=a Po. , awdo as P o �,a — 69LLS 6 „ae ,6 3 ,00,4e o \ a — w s s — szoz RZ , £Li GENERAL GRADING AND DRAINAGE NOTES GENERAL EROSION AND SEDIMENT CONTROL NOTES: N GRADING LEGEND: 8 8 555 H S E® 6 a� RICHLAND HOMES- SHAKOPEE DEVELOPMENT COUNTY ROAD 79 TURN LANE GRADING AND EROSION CONTROL PLAN ,oa 0D No50a3 aNe ON1o,10—,—s9LLS\=a Po. , awdo�aa P o�,a — 69LLS „ae ,6 3 ,00,4e o \ a — w s s — szoz RZ , 6Li N CBMH-910 TO FES 911 FES-900 TO FES 901 2 Y RICHLAND HOMES- SHAKOPEE DEVELOPMENT COUNTY ROAD 79 TURN LANE STORMWATER PLAN a� rip 0 Ms'a�vMwaois—wi—se es\aiu so=\s�awaoi�aa s�oiw!a — 62LLs \:a — w soe — szoz 'ez J,V SLZ Xr, ss ry r' 1 11 .1. �` ,,,1"-'--,,,,, Y y 3 03 &�i. 3 I 17 RI a r w a 2 C71 N = — RICHLAND HOMES- SHAKOPEE DEVELOPMENT COUNTY ROAD 79 TURN LANE DETAILS as g W �S€ Stonebrooke (1 ( _!.w w 3 & as I-- ---1 a l-- g \S�B a t'Ee � a s�3w w G ........ eE� � � — a�m� Z N w5 - p _ E - URBAN TIE IN Jo TURN LANES DOWEL TIE BAR REINFORCEMENT IRU LANE )3 =O F2 IUwen vvw l E SP 12 5 WEARING E SP 12 5 WEARING "UMINOUS TACK COAT PLIED EEN ALL Li BASE (NO LIMESTONE) kflOVE APPROVED S. p wa i ow I`0 6 :9t U z a.>- O! I m ' r 15:1 TAPER, STRIPE o I mO J Q P NE DETAIL 4, id Ii j m y T TURN LA w g + o m ,„ o 2,C0 U I ri 2 /15:1 TAPER STRIPE w o N U �ww D 28 } WZ ,1 m CC � (/) 1 l d C7 o H Zo g 1.1 w woi .l I 13' BYPASS OR - TURN LANE J ) EDOEGLINE EDNIf } m HU � g p O Q -- BYPP TURt Fes. LJ 6��P'SM31A N0110. a. 3115—,-691. LS\sell PD.\ — 691.15\b Jssu..3 .loo.9e-.15\:0 — wdSl:6 — SZOZ 'HZ .dV City of Shakopee Memorandum TO: Mark Noble, Senior Planner FROM: Darin Manning, Project Engineer SUBJECT: Final Plat — Richland Court Development PROJECT: PLAT -000288-2025 DATE: May 22, 2025 The staff review indicates a request to review a Final Plat application for the Richland Court Development. Richland Court is located north of County Road 78 (130th Street West) and east of County Road 79 (Townline Avenue). This review should be considered preliminary, as more comments will follow with additional submittals. However, the Engineering Department offers the following comments at this time to the applicant and to the planning department: The following items need to be addressed/completed prior to release of the Final Plat for recording: 1. Plan review and plat review redlined comments are attached to this memo and must be addressed and approved by the City Engineer. 2. Refer to Shakopee Public Utilities comments for watermain. 3. Conduct a title search to confirm other interests on the property. 4. Easements will be shown on the Final Plat as approved by the City Engineer. They include, but are not limited to the following: • Verify appropriate drainage and utility easements for public sanitary sewer, storm sewer and watermain systems are provided. The minimum widths of drainage and utility easements are set forth in Section 10.1.A -D of the City of Shakopee Design Criteria. • Remove the blanket drainage and utility easement over Outlots A and B, and include a 10 -foot drainage and utility easement adjacent to CSAH 79 and Kristal Court. • A 10 -foot drainage and utility easement at the northwest rear corner of Lot 1. • The proposed drainage swale behind Lots 5, 6, 7, and 8 shall be located within a designated drainage and utility easement. C:\Users\ufc-prod\AppData\Local\Temp\BCL Technologies \easyPDF 8\@BCL@9016BBF5\@BCL@9016BBF5.docx 1 of 3 276 • Additional easements are identified in the attached redline plan review comments. 5. A Submit and obtain approval of a Wetland Mitigation Plan. 6. Deed Outlots A and B to the City of Shakopee. 7. Execution of a Developer's Agreement, which needs to include provisions for a letter of credit or cash security equal to 125 percent of the estimated total cost of the improvements, plus 100 percent of the estimated costs of city inspection and administration. 8. Pay all applicable fees/charges listed below, as required by the most current City of Shakopee Fee Schedule. • Street and Utility Fee • Watermain Fee • Trunk Storm Water Charge • Trunk Sanitary Sewer Charge • Sign Installation Fee • Wetland Conservation Act Fees • Bituminous Sealcoat Fee • Storm Water Management Plan Review Fees 9. Submit a detailed contractor's bid for all public improvements associated with this subdivision. 10. Submit a detailed lot area drawing showing the total plat area, the total drainage and utility easement area encompassing 100 -year high water levels of wetlands/storm water basins, the total area of right-of-way, the total area of conservation easements and outlots, the total area of bituminous street and the total area of lots. 11. At a minimum, obtain conditional approval of the development's storm water management plan. 12. Prior to discharging into a storm water basin, pretreatment must be provided. 13. Provide electronic files (AutoCAD and Portable Document Format — PDF) of the Final Plat to be recorded with datum on the Scott County coordinate system. 14. Final plat approval does not constitute approval of the submitted construction plans. The following items need to be addressed/completed prior to approval of a grading permit, a street and utility plan and/or a building permit: 15. Obtain final approval of the subdivision's storm water management plan. 16. Pay all applicable fees and submit security for grading permit as required by the most current City of Shakopee Fee Schedule. C:\Users\ufc-prod\AppData\Local\Temp\BCL Technologies \easyP DF 8\@BCL@ 9016BBF5\@BCL@ 9016BBF5.d ocx 2 of 3 277 17. Obtain an NPDES construction site permit prior to any land disturbing activity. A copy of the permit must be provided to the city. 18. Grade the entire site, as proposed on the approved plans, in one phase within one year from the date of approval of the grading permit application. Grading is defined as bringing the site to the proposed finished grade with materials deemed acceptable by the City of Shakopee engineering department, providing topsoil per City requirements and applying seed, mulch and/or sod per City requirements and providing an as -built record grading plan per Section 2.5 of the City of Shakopee Design Criteria. 19. The contractor must submit a Construction Management Plan to the city prior to any construction activities. 20. The contractor must submit a signed copy of the supplemental conditions of the grading permit to the city prior to any grading activities. 21. Record plans need to be provided per the City of Shakopee Design Criteria, Section 2.5 and Section 11.2 (A -L). The record plans need to be certified and submitted to the engineering department. Provide a letter from the engineer of record certifying all improvements were constructed per approved plans and under the direct supervision of the engineer of record. Recommendation The Engineering Department recommends approval of the application subject to the conditions above being addressed/completed by the applicant. C:\Users\ufc-prod\AppData\Local\Temp\BCL Technologies \easyPDF 8\@BCL@9016BBF5\@BCL@9016BBF5.docx 3 of 3 278 ENGINEERING MEMORANDUM TO: Darin Manning, Project Engineer, PE FROM: Kirby Templin, Water Resources -Environmental Manager, PE SUBJECT: Richland Court — Stormwater Review Comments - 2 DATE: May 28, 2025 This memo summarizes the stormwater review comments for Richland Court. The following documents were submitted for review: • StormwaterResponseMemo_v1_v1, Dated 3/30/2025 • 1169 - Stormwater Management Report 2025.03.24_v1, Dated 3/23/2025 • S1169-PLanset 2025.04.28 - SIGNED_v1, Dated 4/28/2025 General 1. Provide a comment response memo. 2. The following lots do not appear to meet the low floor separation requirement of 2 -feet above the HWL. Meet the separation requirement, or since there is lateral distance between these lots and the basin an analysis could be completed to demonstrate that these low floors will meet the separation requirement to the estimated water level from the lateral flow influenced by the basin. Include the summary and analysis in the stormwater management plan. Adjust proposed elevations as needed based on the results of the analysis. a. Lots 2, 3, 4, 5, 6, 7. 3. Lot 7 and 8 are proposed at a location of an existing wetland. The existing ground appears to be elevation 895 ft. Lot 8 is proposed as a slab on grade at an elevation higher than the existing wetland. Lot 7 is proposed as a full basement with elevation 880.15 ft which is lower than the existing wetland elevation. There is a concern there will be drainage issues with low floors proposed below existing wetland elevations. The city has a structure separation requirement from groundwater (4 ft above current, 2 ft above historical). Adjust proposed elevations of lot 7 as needed to address this concern, or alternatively, a geotechnical engineer could monitor the groundwater after site grading at the Lot 7 location and verify the proposed structure would meet separation requirements to any potential groundwater. If monitoring is proposed, put a note on the grading plan in this location to state the following; "Geotechnical Engineer to monitor groundwater after site grading to determine if proposed building low floors meet groundwater separation requirements". 4. Include a typical cross section/detail for the proposed basin. Show the extents of the pond liner. Clay liners are a minimum of 2 feet thick and include the clay material specifications as INNOVATING. ENTERTAINING. THRIVING. Department of Engineering 1485 Gorman St., Shakopee, MN 55379 I Phone: 952-233-9300 I Fax: 952--233-3801 I www.ShakopeeMNgov 279 part of the detail. Add the clay liner specifications detailed in the Minnesota Stormwater Manual are acceptable material specifications. 5. Complete the EOF calculation for the wetland and the Pond to verify there is adequate separation to proposed structures and that EOF dimensions are adequate. The separation requirement is a minimum of 1 foot plus the flow depth or 1.5 feet, whichever is greater. The 100 -year inflow rate into the wetland is approximately 35 cfs. a. Calculate the flow depth over the wetland EOF elevation 896 ft and include the calculation in the stormwater management plan. b. Verify the proposed low opening elevation is a minimum of 1 foot plus the flow depth or 1.5 feet, whichever is greater, above the EOF elevation. c. The wetland EOF is through Basin 1. Verify the dimensions of Basin 1 EOF are adequate to convey the EOF flow rate of 35 cfs. Update the dimensions of Basin 1 EOF as needed. 6. The Basin 1 EOF detail says to provide stabilization per the plan. a. Update the riprap hatch on the plan so it is in the correct location and extend the riprap to the bottom of the downgradient slope to the north. 7. The proposed permanent pool (dead storage) summarized in the stormwater management plan of 30,355 cf does not match the model input volume associated with the 887 ft elevation of 25,031 cf. Update the summary and/or the model storage so they match. 8. Include the wetland buffers on the proposed plan. Verify the proposed structures meet the setback requirements from the wetland buffer. 9. Add a wetland buffer monument plan to the plan set. Add wetland buffer monuments to the wetland buffer plan. The buffer monuments need to be proposed around the entirety of the wetland. a. If the buffer abuts property lines, at least one wetland buffer monument needs to be proposed at each property. A monument needs to be located at each location the buffer changes direction. A monument is required at a minimum every 200 feet. b. Add a note to contact the city for the current wetland buffer signage template. 10. The restoration plans show turf grass to restore around the wetland and proposed pond. Restoration needs to propose an appropriate native seed mix around the stormwater pond and the wetland. Update plans to show the wetland buffer and appropriate seed mixes for restoration (stormwater pond, wetland, upland, etc). Update seeding plan as needed. 11. The proposed development includes impacts to onsite wetlands. A wetland replacement plan/application has been submitted and is in review. Address any comments from the review when the review is complete and update plans as needed. 12. The disturbance area is greater than 1 acre. An NPDES Construction Stormwater permit is required. Submit documentation that this permit has been obtained. Storm Sewer 13. CB -401 has a SAFL Baffle proposed. Also include a skimmer like a SKUNK/BMP snout (or equivalent). Add the skimmer to the label. INNOVATING. ENTERTAINING. THRIVING. Department of Engineering 1485 Gorman St., Shakopee, MN 55379 I Phone: 952-233-9300 I Fax: 952--233-3801 I www.ShakopeeMNgov 280 L93 OFFICIAL PLAT COPY 393 Shakopee City Council 10.c OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Ordinance Amending City Code Section 111.02 related to fence construction and placement regulations Amanda Schwabe, Planner Michael Kerski Action to be considered: Adopt Ordinance O2025-010 amending Title XI of the City Code repealing and replacing Section 111.02 related to fence construction and placement regulations, appeal period, and publication by summary. Motion Type: Simple Majority Background: City engineering, building inspections and planning staff have reviewed the current fence regulations and are proposing amendments to clarify existing language in an effort to provide clear direction on fence construction and placement requirements. Fence permits are required prior to the installation of a fence that is not a "garden fence" by definition or the replacement of more than 20% of an existing fence. Permits are not required if less than 20% of the fence is being replaced and the materials, height, or location are not changing. Currently, engineering and planning staff as well as Shakopee Public Utilities review fence permits to ensure placement and materials are compliant with city code requirements. After installation, an applicant schedules a fence inspection, at which time planning staff verifies the installation was completed per the approved plan/permit. A summary of the proposed changes are as follows: • Clarifies permit requirements including a site plan or survey showing the proposed fence location with gates (if applicable), written, notarized permission from adjacent property owners to place the fence on the property line or to physically connect, as well as the requirement for the permittee to schedule a fence inspection following installation. • Creating a definition for "Opaque". • Clarifies materials that are prohibited including: barbed wire, razor wire/concertina wire, materials with the capability to carry/hold/emit an electrical current, sheet metal, pallets or other non -exterior rated wood, chain link thinner than 11 gauge, 283 and plastic slats or mesh in/on chain link fences. City -owned facilities are exempt from this requirement. • Requires a top rail for chain link fencing. • Requires fences in the Shoreland Overlay District within the structure setback to have a maximum height of four feet. No fence shall be allowed below the 100 -year High Water Level of any lake, stream, river, wetland, wetland buffer, or stormwater basin without permission from the City Engineer or designee. • Reduces the appeal period from thirty days of the date of the decision to ten. • Removes language associated with requiring a demolition permit review of locally significant historic properties by the City's Historic Preservation Advisory Commission (HPAC). Due to the number of proposed changes, staff is recommending the existing language be repealed and replaced. A public hearing is not required for this proposed text amendment, as the ordinance is not part of the zoning or subdivision code (Title XV). The ordinance would be effective upon approval and publication. Recommendation: Two motions are required: 1) Approve Ordinance O2025-010. 2) Approve publication of Ordinance O2025-010 by summary. Budget Impact: None Attachments: Ordinance O2025-010 Official Summary of Ordinance O2025-010 Redlines of Current Ordinance 284 ORDINANCE NO. 02025-010 AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING TITLE XI, CHAPTER 111 RELATED TO FENCE CONSTRUCTION AND PLACEMENT REQUIREMENTS The City Council of Shakopee, Minnesota ordains: Section 1. Section 111.02 of the Shakopee City Code is hereby repealed in its entirety and replaced to read as follows: 111.02 Building Permits A. Generally. 1. It is unlawful for any person to erect, construct, enlarge, alter, repair, move, improve, remove, convert, or demolish any building or structure, or any part or portion thereof, including, but not limited to, the plumbing, electrical, ventilating, heating or air conditioning systems, water wells, and on -site disposal systems therein, or remove or displace any soil, ground, or earth preparatory to any action, or cause the same to be done, without first obtaining a separate building permit for each such building or structure from the Building Official. 2. It is also unlawful for any firm, person, or corporation to erect, enlarge, improve, construct, repair, replace, or move a fence in all zoning districts of the city except Agricultural Preservation without first obtaining a permit, with the exception of garden fences. The permit application shall include a survey or site plan showing property lines with dimensions, existing structures, and the proposed fence and gates with dimensions. Written, notarized permission from adjacent property owner(s) is required as part of any fence permit application if a fence is proposed to be constructed on the property line or if a proposed fence will physically connect to an existing fence on an adjacent property. After permit issuance and installation of an approved fence, the permittee shall schedule a fence inspection for which the property lines/pins shall be located and identified. 3. Notwithstanding any provision of this section and in addition thereto, it is unlawful for any person to remove or displace any soil, ground, gravel, or earth without first obtaining a permit from the proper city officials. B. Fence construction requirements. 1. All fences, with the exception of garden fences, shall require a permit. No permit is required for repair to, or replacement of, an existing fence if the portion of the fence that is being repaired, or replaced, is less than 20% of the fence's overall length and there is no change in the fence's height, material, or location. For purposes of this section, a FENCE shall be defined as any permanent partition, structure, or gate erected as a dividing marker, barrier, or enclosure encircling either wholly or any portion of 285 any area. A GARDEN FENCE shall be defined as a fence that is no more than 3 feet in height measured at grade, that may be easily removed that is used to protect gardens from animals. OPAQUE shall be defined as a surface that is solid, or mostly solid, that blocks the line of site into a premises and does not allow the passage of light or air. Opacity is determined by calculating the average openness of the fence from top to bottom over a distance of 50 feet. 2. All fences erected in the city may be constructed adjacent to the property lines; provided, they do not encroach into any sight triangle per Chapter 151, Section 151.125 or easement area held by the city or others as defined by this code of ordinances, except if permission is otherwise granted or allowed as part of the permitting process pursuant to Chapter 90, Section 90.16 or in writing from the easement holder or if written, notarized permission is granted per Section 111.02 A. 2. 3. All fences shall be constructed of exterior rated materials that are low maintenance or easily maintained; chain link fences shall have a top rail; and all fences shall have the finished side of the materials facing adjacent properties or the public rights -of -way. 4. Temporary, plastic snow fence up to 4 feet in height is allowed between Oct. 1 — April 1 when placed out of the right-of-way and not in an easement or sight triangle, no permit required. 5. Barbed wire, razor wire/concertina wire, materials with the capability to carry/hold/emit an electrical current, sheet metal, pallets or other non -exterior rated wood, chain link with a thickness less than 11 gauge, and plastic slats or mesh in/on chain link fences, whether for screening purposes or for other applications, shall be prohibited. City -owned facilities shall be exempt from this requirement. 6. Swimming pool barriers shall comply with Chapter 111, Section 111.09 D. 7. Fences greater than 7 feet in height shall meet the requirements of the State Building Code. C. Fence placement requirements. 1. Fences 6-1/2 feet and under shall be permitted anywhere on a lot except in the front yard setback or within any easement areas or sight triangles unless permission is otherwise granted in writing by the easement holder as part of the permitting process. In the case of a corner or double frontage lot, fences 6-1/2 feet in height and under and commercial and industrial fences 8 feet in height or less shall be allowed within the setback on a street frontage from which access is not obtained. 2. All fences up to 3 feet in height shall be allowed in the front yard setback, so long as they are not within any city easement areas or sight triangles. Garden fences may be located within a city easement area but shall not obstruct drainage or impede the flow of surface water from or in the easement area. If a garden fence is located within an easement area, city staff may require it to be removed at the owner's expense at any time. 3. Fences shall be set back a minimum of 5 feet from an existing sidewalk or trail and if abutting a public alley, they shall be a minimum of 3 feet from the property line or traveled alley, whichever is more restrictive. 4. Fences in the Shoreland Overlay District within the structure setback shall have a maximum height of 4 feet and maximum opacity of 50%. 286 5. No fence shall be placed below the 100 -year High Water Level of any waterway, lake, stream, river, stormwater basin, wetland or within any wetland buffer without permission from the City Engineer or designee regardless of the existence of an easement. 6. No fence shall be placed when it impacts the flow of drainage or emergency overflow path without permission from the City Engineer or designee regardless of the existence of an easement. D. Conditional Use Permit required. 1. Residential fences more than 6-1/2 feet in height and commercial and industrial fences greater than 8 feet in height shall require a conditional use permit. City -owned facilities shall be exempt from the conditional use permit requirement. E. Fees. 1. Fee payment per the fee schedule is required prior to permit issuance. F. Appeal. 1. Any person aggrieved by a denial of a fence permit or removal of a garden fence by city staff may appeal such decision to the Board of Adjustment and Appeals. The appeal shall be filed in writing with the Planner within 10 days of the date of the decision. Upon receipt of an appeal, the Planner shall schedule the matter for consideration by the Board. The Board shall have the authority to affirm, modify, or reverse the decision of the Planner or designee. This provision shall not apply in the case of a criminal prosecution for violation of this chapter. Section 2. Publication by Summary. The city council determines that publication of the title and the approved summary of this ordinance would clearly inform the public of the intent and effect of the ordinance and therefore directs that only the title of the ordinance and the approved summary be published. Section 3. Effective Date. This ordinance becomes effective from and after its adoption and publication. Passed in regular session of the City Council of the City of Shakopee, Minnesota held on the day of , 2025. Mayor of the City of Shakopee Attest: Richard Parsons, City Clerk Published in The New Prague Times on the day of , 2025. 287 Official Summary of Ordinance O2025-010 The following is the official summary of Ordinance O2025-010 Approved by the City Council of the City of Shakopee, Minnesota on June 3, 2025 AN ORDINANCE AMENDING TITLE XI, CHAPTER 111 RELATED TO FENCE CONSTRUCTION AND PLACEMENT REQUIREMENTS 1. The ordinance amends the City Code by repealing and replacing Section 111.02 related to fence regulations. 2. The ordinance clarifies application requirements including a survey and/or site plan and written, notarized permission from adjacent property owners to place the fence on the property line or to physically connect, as well as the requirement for permittee to schedule an inspection following installation. 3. The ordinance adds a definition for opaque. 4. The ordinance lists the construction materials which are prohibited and requires a top rail for chain link fencing. 5. The ordinance clarifies the setback requirements in the Shoreland Overlay District. 6. The ordinance reduces the appeal period from 30 days of the date of the decision to ten. 7. The ordinance removes language associated with requiring a demolition permit review of locally significant historic properties by the City's Historic Preservation Advisory Commission (HPAC). 8. The ordinance will be effective upon publication. A printed copy of the ordinance is available for inspection by any person during the City's regular office hours or on the City's website. 288 CHAPTER 111 CONSTRUCTION LICENSING 111.02 Building Permits A. Generally. 1. It is unlawful for any person to erect, construct, enlarge, alter, repair, move, improve, remove, convert, or demolish any building or structure, or any part or portion thereof, including, but not limited to, the plumbing, electrical, ventilating, heating or air conditioning systems, water wells, and on -site disposal systems therein, or remove or displace any soil, ground, or earth preparatory to any action, or cause the same to be done, without first obtaining a separate building permit for each such building or structure from the Building Official. 2. It is also unlawful for any firm, person, or corporation to erect, enlarge, improve, construct, repair, replace, or move a fence in all zoning districts of the city except Aagricultur ;�l4e, Preservation .w4Il u.n the ce aur:ate- li-i its of t.le...€.u.a.y without first obtaining a permit, with the exception of garden fences."The permit application shall include a survey or site plan showing property lines with. dimensions, existing structures and the...proposed osed fence and gates with dimensions. ./rotten notarized...permission from adjacent property.owners s its ire uliired as girt of any fence permit application if a fence is..proposed to be constructed on the property line or if a proposed fence will physically connect to am existing fence on am adjacent property, ...............................................................Lp...............Ip................................................................................................Ip.........Y...............................Y..................................................................................................................................i'�.............................................................................................�............................................................................ After permit it issuance and installation of am a aprove:^d fenck:^. the :rermittee shall schedule a fence inspection for which the property lines ins shall be located and identified. Notwithstanding any provision of this section and in addition thereto, it is unlawful for any person to remove or displace any soil, ground, gravel, or earth without first obtaining a permit from the proper city officials. B. Fence construction requirements. 1. All fences, with the exception of garden fe•irnfeesfeinces shall require a fenereepermit. No permit is required for repair to, or replacement of, an existing fence if the portion of the fence that is being repaired, or replaced,, is less than 20% of the fence's overall length and there is no change in the fence's height, material, or location. For purposes of this section, a FENCE shall be defined as any permanent partition, structure, or gate erected as a dividing marker, barrier, or enclosure encircling either wholly or any portion of any area. A GARDEN FENCE shall be defined as a fence that is no more than 3 feet in height I.Xe usto„iredait....grlra_de, that may be easily removed and that is used to protect gardens from animals. f fPIP f U .l;;; shall be defined as a surface that is solid or mostly solliid that blocks the line of site into a premises and does not allow the passage of fight or air.gpaclity is determined by calculating the avera e openness of time fence fir ...m top to bottom over a distance of 50 feet.Rea:s r •a4.......:ffeRees g.r.ea.:te.r....t.h. y.er-- .4/..... fee:tHii.n.....he ght ......CF.....c o..rn.e el a...arnit...i.fir:.r. :r..ii..a..l e i e:s.....g.te n'te.n-.....t-N=r.„ ......8- feet.....:i n 2. All fences erected in the city may be constructed adjacent to the property lines; provided, a.a.t......they do not encroach into any sight ......triangle .......per ........Chapter 151, Section 1,51.12.5 or...... easement area held by the city..®r...c h_ersr....,a..r,.y...E.e,.s.rv.a:t.i.en....e.-.e...n.e.A::,-t...;a*e;kk .hel.d...........the-city.. y at ao°ia tte---as defined by this code of ordinances, except if permission is otherwise granted or allowed lay-.... he---eiraa --as part of the permitting process pursuant to Chapter :.....90.k. Sectiorn§ 90.16....o?r....ir.....writing. ...fry...rr.....:t11h.e.....easement holder. Il....a.....feece......en-..the......re.,a.r.....pfepe.Fty......4,e s.....a.....t llal4i.c.....a.lge..y.....:the.re.... &a....be-a,........: e.e:t....sea-113ack All fences shall be constructed ofe........................... exterior rated materials that are :........rD.w.....maintenance .....o..r:._easily rmnaintalined° chain link fences shall have a top rail° and all fences shall have- deemed- a.:z.aFded-s---iby......:tis .......Ba;uildhag...... `.f.i.a..p.a.1. ......rnn ateriia-....:a4hat.......are ......ee-as,.i.s:t.....et........w t.l .......1 t not 289 rf to ialisr&taR: a.-set-f+.-Y4h-in-Cb,-151TwJTh the finished side of the materials facing adjacent properties or the public rights -of -way. -a - ..... .:teiri tV+,-..:t1 .a.:t....;a..rca.....p.:: ...... ,fn-te.r .e....o ....e.a.sµy e-rfaHataikered, 4. Temporary,plastic snow fence up to 4 feet lilrn height is allowed between Oct, 1 --April 1.. when placed out of the right-of-way and not in an easement or .sight trilanngIle no penrunnit requlired. Barbed wire, razor wli.P/c:oncelrtliuna wire,. materials with the capability alblilllit to carrytholdlemit an electrical current sheet Irmetall pallets on other non -exterior bated wood chain Illw..k with a thickness less than 11 gauge, and plastic Ike..i..ru-...1414....feda—eif ......lfteFwo.vef-w4h....slats or mesh in/on chain _link fences, whether for screening purposes or for other applications, shall be prohibited. City -owned fac.....itlics shall be exempt from this requirement, 6. Swimming pool barriers shall comply with Chapter 111„Section 11109 D. 7. Fences greater than 7 feet in Ihei Iht shall meet the requirements of the State II: uilldiin g Code. G.................Fence .....,.lacecr¢e!:!.....requirements. -Fences -fienees-6iila feet and under shall be permitted anywhere on kne lot except in the front yard setback or within any .64.y -easement areas or sight triangles exeeapt--i-ful.ni..e.ss permission is otherwise granted &u. --a4 ewedIn...w.lril.....rng by the city-e,aaseimeimtholder as part of the permitting process. In the case of a corner c....rdouble frontage lot, rc s.... e nn„t;.a➢„fences 6;;;;;x/2„ feet in height; and under and commercial and industrial fences 8 feet ...P. height or Mess shall be pe*n-n-fitted--a. lowed ..,within the setback on a street frontage from which access is not obtained. IFfences up to 3 feet in height shall be allowed in the front yard setback, so long as they are not within any city easement areas or sight triangles. Garden fences may ....11aa,e....11ocaated w.iitlh,li.lra, city easement area but shall not obstruct dlraiilna ea on limn ede the fllow of surface water frond or in the easement area. Of a Q.ardenn fence is (located within an easement area,. city.staff may. require ire it to be removed at the owner's expense at any time. Fences shall be set back a minimum of 5 fc°,eAt from an eaxistlilni . sidewalllk or trail and if abutting a public alley,.they shall be a minimum of 3 feet from the property.line o.r traveled alllle whichever r....s....more ....restrictive. . Vii. Fences lilrn the Shall -eland Overlay Dilstlrilct, within the structure setback shall have a maximum height ...c.f..4...:feet ...and ......C._ xiilr1B-'..[P......opacit.Y....of...50%s... S. No fence shall be Ip...c.ed (bellow the 100 -year High Water Il...evell of any waterway,lakestlrealm river stormwater Ibaslilc wetland or within any wetland (buffer without permission from the City Engineer ineer or designee Ire .alydlles.s of time existence of » Inn easement. 6, No fence slhalll be placed when it impacts the flow of drainage or emergency overflow path without permission from the City.Engineer or designee regardless of the existence of am easement„ 7.. Wriltten notarized permission fnolrnn adjacent property owners is required as ant of a fence permit application if a proposed fence will rn sicallll connect to an existing fence on an ................................................................................................................................lP...............r?.........................................................................................................1p.........Y...............................M...............................................................................................................................................I�................................................................................... adjacent propert.Y.:: If.:........................_Conditional Use Permit required. 1...... IResid'entiall....: fences uor......exceps-.....e4rr.clrc°........than ....:1.12........: feet ..........!m.........lLeig.htthe......theve.........leeight& arn.d. commercial and industrial fences greater than 8 ferret in hei . ht shall require a conditional use permit. City -owned facilities shall be, exempt from the conditional usca e;rrmit re uirement. E. Fees. ....................................................... 1. (pone as meat er the fee schedule is ne wired prior to permit is issuance. 290 n.e••••ee -itie• h•a-l1-••Eis•e••.•pe f e.c .. IHre•P •e•lrn ...°...........A.µµ4...:ffen—ces;....wHi-th-..,ee.....x e.... •of -q • d•e•ern...:feee ......&II-1-all11-ereat.....ba-a....11 ae to .. ° ...ern ci�l:...E.. n.e.. ....o: d.�hht....:t.IF°.. ••plµe^.....t,.yeept-......••beepori-s5.11orn-...µ•5••... • )elrw .....g•F e.d...€ n..... ...I ,..:.g. e....el l::y�......a•Y..... .:....e ..... µhe rf•nrrn ttifi .... ..e..s.s......Geede.n.....#e ne•e.s... y.•••be.....I4o.e.ate.d..... ilerrµer••••...e:....e:^:;e•mef4•••••a•re^.a.......µ. •••{ .rall -nJt •tr t......dlra••µIFSe• • •••...ear..... rn• nd•e••••.:the•....:4ow •••••($••••: it ee..e......w-ate•F••••••frolrn....••o•r.....•ka-•••tlhre......e se,rr-ne,rnat.....a.l .a ••••.1 ••••a -a•fr-e•n••••.:fe.e.•Ikaeated-...wiit-in-••an-•..ea emen•t.....o.Fe.a......•eity....,s f••••n a-a.y••. e.g.. e..........to-••• ••••.re...... e.d.....a.t tlh•e.... a.r .aa .....e.:x.. .a.Rse••••4•..; ,••• HF1 e,. 3„ ...............P..a•yIrre ft•••ef-•a- elrn.e.,e..... ,..r..IFe:.e....a•5•••,e.t...foeth••...µlrn-• 4Qa....e.iityYy.... . •••Feee..e.t...:ff.e.e.... lens•ife....a•••pe• lre.. t•••.il,n--s c^ F:................Appeal. 1." Any. person aggrieved by a denial off a fence permit our removal of a garden fence by city staff Irnay appeal such decision to the µ:aoaird of Ad°ustmn-nernt and Appeals. The appeall slhalll° be filed ft) writing with the Planner wµtll°numn 7 days of the cute of the cdeciisliomn • Upon receipt of an a .npeap the Planner shall sclhecdu,ulle the irnnatter for consideration by the Board. The µI.oairdd shall have the authority to affirm,. modify,.or reverse the decision of the IF'Ilamnrneir or cdesli 7irnee. lb . moviislorn shoaµµ not appY. in the case of a cr'µirn•nlirnaµ .rmosecutiioma for violation of tfhls chapter. 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I•Ek•g 0ffffµeiral•••••r i-s- •...4.e••••pe. • ...wrirtµkn. ......Ipfiar....I µµNAC••ae:tire - „ ...............µma...ad•dfftµ•oe•..to•••••n,..ua.y...cy . .r....•Fe.u:.m•e•d.i-es...4.≥ t......m4,1......d.e.....ave•441ale•••..:to••••:.t.•••••e..d.:t.yy....:t.kn.e......'Bu.:i•14i.un.g....Qff:ffµ.E.µ. n.....•of ,t.ffn.e.....7.eeJ•e..... , n. airs to.....usrto•ia-,-..pus e ve•n-ty....E a..s_•set..:ffoE:t.d:n....µEn...:td::n.e....B,., .d.4 ag•••.C.o.Ey.e...., :....µra....t.µne....E. yY.u; ..ffe.e...c€be pe••e... r•ay••1•a.y.a.yu•e.....a.....s:te..p...' d„::.k..•••o::.de•r••••••o1i::.....eefalm.e•• n.ee.....;p...F...vd..d.......rn e•et4•ve.... o.... •a )e•••••ef...:t.•h••s•••• vis•heH....•(.t.:1..aed-.may...ads•o-..:µ.m.poso..... i µooaµ...:ffe. 291 (2013 Code, § 4.03) (Ord. 67, passed 6-18-1981; Ord. 75, passed 11-12-1981; Ord. 115, passed 3-2-1983; Ord. 129, passed 8-11-1983; Ord. 221, passed 6-30-1987; Ord. 361, passed 8-19-1993; Ord. 403, passed 3-2-1995; Ord. 550, passed 6-10-1999; Ord. 571, passed 6-27-2000; Ord. 591, passed 3-1-2001; Ord. 780, passed 6-14-2007; Ord. 786, passed 11-21-2007; Ord. 796, passed 5-29-2008; Ord. 804, passed 8-28-2008; Ord. 820, passed 5-14-2009; Ord. 855, passed 5-17-2012) 292 Shakopee City Council 10.d OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Monetary Donation for Aquatic Programming Rachel Bland, Community Engagement Coordinator Action to be considered: Approve Resolution R2025-062 accepting monetary donation of $1500.00 from Sue Westegaard for the Women's Water Safety Program. Motion Type: Simple Majority Background: The City has received a monetary donation from Sue Westegaard in the amount of $1500.00. Ms. Westegaard continued support of our Women's Water Safety program is given in memory of Ms. Westegaard's mother, Helen Halvorson. Women's Water Safety is aimed to serve our female population who are not able to take lessons at the Community Center due cultural barriers. In this program we aim to teach water safety skills like floating, getting their faces wet, orienting themselves in the water and what to do if they find themselves in a water emergency. We also want to teach them how to be safe and keep others safe around water and to also have fun. The City of Shakopee appreciates the on -going generosity from Sue Westegaard, an active member of the Shakopee Community Center and participant in aquatic programming. The City's donation policy requires a 2/3 vote to accept cash donations over $1,000.00 and donations of real property. Recommendation: Approve Resolution R2025-062 accepting monetary donation of $1500.00 from Sue Westegaard for the Women's Water Safety Program. Budget Impact: The donation will be used to offset program costs of Women's Water Safety Attachments: 293 Resolution 2025-062 - Water Safety Donation.pdf 294 RESOLUTION NO. 2025-062 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA ACCEPTING A MONETARY DONATION FROM SUE WESTEGAARD. WHEREAS, on November 6, 2002, the City Council adopted Resolution No. 5794, which established procedure relating to the receipt of gifts and donations by the City; and WHEREAS, Resolution No. 5794 specifies that donations of real property shall be accepted by resolution of the City Council, and shall require a two-thirds majority of the Council for acceptance; and SUE WESTEGAARD has generously given a monetary donation in the amount of $1500.00 in memory of her mother, Helen Halvorson; and WHEREAS, such donation will help to offer Women's Water Safety and enhance the overall quality of life in Shakopee. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that the donations are gratefully accepted; and FURTHER, the donation shall be used for Women's Water Safety, which is consistent with the wishes of the donor. FURTHER, the City staff is directed to send a letter to the donor, acknowledging receipt of the gift and expressing appreciation of the City Council. Adopted in regular session of the City Council of the City of Shakopee, Minnesota held this 3rd Day of June 2025. Matt Lehman Mayor of the City of Shakopee ATTEST: City Clerk 295 Shakopee City Council 10.e OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: Donation of AED SaveStation at Schleper Stadium Rachel Bland, Community Engagement Coordinator Action to be considered: Approve the donation of an outdoor AED SaveStation at Schleper Stadium Motion Type: Simple Majority Background: A donation valued at $4,620.00 (excluding the AED unit) was made to the Shakopee School District to support the installation of an outdoor SaveStation cabinet at Schleper Stadium. The stadium, located on city property, is a city resource serving students and families within the City of Shakopee and the school district. The SaveStation cabinet will house an existing AED unit currently located at the stadium and will include advanced features such as a built-in camera, cellular connectivity, heating, and cooling systems to ensure weather-proof functionality. Cell coverage for the SaveStation is being donated for four years, valued at approximately $499. After this period, either the school district or the city will need to determine whether to continue service or discontinue cellular connectivity. The cabinet will be wrapped in school colors and include the Shakopee High School logo, along with recognition of the donation by AFA and the Mendoza family. Recommendation: Staff recommends approval of the AED SaveStation donation to enhance emergency preparedness at Schleper Stadium. Budget Impact: City's Contribution: $1,350 for electrical hookup costs (one-time expense). Donated Assets: SaveStation cabinet and cell coverage valued at $4,620 and $1,996 respectively. 296 Ongoing Cost Consideration: $499/year for cellular service beginning in year five, pending future discussion and agreement between the city and school district. Attachments: Resolution 2025-069.pdf 297 RESOLUTION NO. 2025-069 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA ACCEPTING AED SAVE STATION DONATION FROM SHAKOPEE PUBLIC SCHOOLS. WHEREAS, on November 6, 2002, the City Council adopted Resolution No. 5794, which established procedure relating to the receipt of gifts and donations by the City; and WHEREAS, Resolution No. 5794 specifies that donations of real property shall be accepted by resolution of the City Council, and shall require a two-thirds majority of the Council for acceptance; and WHEREAS, SHAKOPEE PUBLIC SCHOOLS has generously given AFA Save Station; and WHEREAS, such donations will improve emergency preparedness and response for students and residents of Shakopee. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that the donations are gratefully accepted; and FURTHER, the donation shall be installed at Tahpah Park in Joe Schleper Stadium, which is consistent with the wishes of the donor. FURTHER, the City staff is directed to send a letter to the donor, acknowledging receipt of the gift and expressing the appreciation of the City Council. Adopted in regular session of the City Council of the City of Shakopee, Minnesota held this 3rd Day of June 2025. Matt Lehman Mayor of the City of Shakopee ATTEST: City Clerk 298 Shakopee City Council 11.a OPEE June 3, 2025 Agenda Item: Prepared by: Reviewed by: City Bill List Becky Smith, Accounting Specialist Action to be considered: Review of City Bill List Motion Type: Informational only Background: The City Bill has been provided to the City Council. Recommendation: Review of City Bill List Budget Impact: N/A Attachments: 299