Professional Documents
Culture Documents
2015 Shakopee CAFR
2015 Shakopee CAFR
2015 Shakopee CAFR
SHAKOPEE
Shakopee
City of Shakopee | 129 Holmes St. S., Shakopee MN 55379 | (952) 233-9300 | www.ShakopeeMN.gov
Minnesota
Department of Finance
Darin Nelson, Director of Finance
Melissa Schlingman, Accounting Manager
CITY OF SHAKOPEE
TABLE OF CONTENTS
SECTION I
Page
INTRODUCTORY SECTION
Elected Officials and Administration................................................................................
Organization Chart ............................................................................................................
Letter of Transmittal .........................................................................................................
Certificate of Achievement for Excellence in Financial Reporting ..................................
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SECTION II
FINANCIAL SECTION
Independent Auditors Report...........................................................................................
Managements Discussion and Analysis (Unaudited) ......................................................
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .....................................................................................
Statement of Activities ..........................................................................................
Fund Financial Statements:
Balance Sheet Governmental Funds ..................................................................
Reconciliation of the Balance Sheet to the Statement of Net Position
Governmental Funds ...........................................................................................
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds ...........................................................................................
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances to the Statement of Activities Governmental Funds ...............
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual General Fund .....................................................................
Statement of Net Position Proprietary Funds.....................................................
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds ................................................................................................
Statement of Cash Flows Proprietary Funds ......................................................
Combined Statement of Fiduciary Net Position ...................................................
Statement of Net Position Component Unit.......................................................
Statement of Revenues, Expenses and Changes in Fund Net Position
Component Unit .................................................................................................
Notes to the Financial Statements ...............................................................................
Required Supplementary Information:
Schedule of Funding Progress Other Post Employment Benefits ...........................
Schedule of City's Proportionate Share of Net Pension Liability GERF
Retirement Fund.................................................................................................
Schedule of City's Proportionate Share of Net Pension Liability PEPFF
Retirement Fund.................................................................................................
Schedule of Component Units' Proportionate Share of Net Pension Liability
GERF Retirement Fund .....................................................................................
Schedule of City Contributions GERF Retirement Fund ..........................................
Schedule of City Contributions PEPFF Retirement Fund .........................................
Schedule of Component Unit Contributions GERF Retirement Fund .......................
Schedule of Changes in the Net Pension Liability and Related Ratios
Fire Relief Association ......................................................................................
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CITY OF SHAKOPEE
TABLE OF CONTENTS
SECTION II (Continued)
FINANCIAL SECTION
Required Supplementary Information: (Continued)
Schedule of City Contributions and Non Employer Contributing Entities
Fire Relief Association ......................................................................................
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual General Fund ...........................................................................
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet Nonmajor Governmental Funds ..............................
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances Nonmajor Governmental Funds .......................................................
Combining Statement of Fund Net Position Internal Service Funds .................
Combining Statement of Revenues, Expenses and Changes in Fund Net
Position Internal Service Funds .......................................................................
Combining Statement of Cash Flows Internal Service Funds ...........................
Combined Statement of Fiduciary Net Position ...................................................
Statement of Changes in Assets and Liabilities Agency Fund ...........................
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SECTION III
STATISTICAL SECTION
Net Position by Component ..............................................................................................
Changes in Net Position ....................................................................................................
Fund Balances Governmental Funds .............................................................................
Changes in Fund Balances Governmental Funds ..........................................................
Tax Capacity and Estimated Actual Value of Taxable Property ......................................
Direct and Overlapping Property Tax Rates .....................................................................
Principal Taxpayers ..........................................................................................................
Property Tax Levies and Collections ................................................................................
Ratio of Outstanding Debt by Type ..................................................................................
Ratio of General Bonded Outstanding ..............................................................................
Direct and Overlapping Governmental Activities Debt....................................................
Legal Debt Margin Information ........................................................................................
Pledged Revenue Coverage ..............................................................................................
Demographic and Economic Statistics .............................................................................
Principal Employers ..........................................................................................................
Full-Time Equivalent City Government Employees by Function/Program .....................
Operating Indicators by Function/Program ......................................................................
Capital Asset Statistics by Function/Program...................................................................
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CITY OF SHAKOPEE
ELECTED OFFICIALS AND ADMINISTRATION
DECEMBER 31, 2015
Elected Officials
Brad Tabke
Matthew Lehman
Jay Whiting
Michael Luce
Kathleen Mocol
Position
Mayor
Council Member
Council Member
Council Member
Council Member
Administration
Bill Reynolds
TBD*
Darin Nelson
TBD*
Andy Hutson
Lori Hensen
TBD*
Dave Kriesel
TBD*
Jeff Tate
Rick Coleman
Bruce Loney
Jamie Polley
City Administrator
Assistant City Administrator
Finance Director
HR Manager
IT Director
City Clerk
Director of Planning & Development
Building Official
Planning Manager
Police Chief
Fire Chief
Public Works Director/Engineer
Park and Recreation Director
Term Expires
December 31, 2015
December 31, 2015
December 31, 2015
December 31, 2017
December 31, 2017
CITY OF SHAKOPEE
ORGANIZATION CHART
DECEMBER 31, 2015
Electorate
City Council
Planning Commission & Board of
Adjustment & Appeals
Environmental Advisory
Committee
Police
Department
Fire
Department
Finance
Department
Department of
Administration
Engineering &
Public Works
Department
HR Division
Department of
Planning &
Development
Parks &
Recreation
Department
Planning
Division
IT Division
City Clerk
Facility Maintenance Division
Building
Inspection
Division
Economic
Development
Transit
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Shakopee:
The Comprehensive Annual Financial Report for the City of Shakopee, Minnesota, for the fiscal year
ended December 31, 2015, 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 Shakopees financial statements have been audited by BerganKDV, Ltd., a firm of
licensed certified public accountants. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City for the year ended December 31, 2015, are fairly
presented in conformity with GAAP (generally accepted accounting principles). Based on the audit,
the independent auditor concluded that there was reasonable basis for rendering an unmodified
(clean) opinion on the Citys financial statements for the year ended December 31, 2015. The
independent audit involved 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 auditors report is presented as the first component of the financial section of this report.
Management Discussion and Analysis (MD&A) immediately follows the independent auditors 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 2010 census confirmed that the population
had increased to 37,076 and has been continuing to experience growth into the current year, with an
estimated population of 39,523, in 2015. 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. More than 60% of the community is
developed, with approximately 30% of the developed land as residential. However, about 25% of the
COMMUNITY PRIDE SINCE 1857
129 Holmes Street South Shakopee, Minnesota 55379-1351 952-233-9300 FAX 952-233-3801 www.ShakopeeMN.gov
undeveloped land is owned or controlled by the Shakopee Mdewakanton Sioux Community (SMSC),
a federally recognized Native American Tribe. The City levies a property tax on both real and
personal property located within its boundaries. The City may also by state statute, extend its
corporate limits by annexation, which historically has occurred periodically.
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 who serve staggered terms of four years plus
the Mayor who serves a two-year term. 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 storm drainage utilities, organized refuse collection, and
recycling. In 2015, the City merged its local transit services with a larger regional transit provider,
Minnesota Valley Transit Authority (MVTA) to provide enhanced commuter service to the
Minneapolis-St.Paul area. 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 Citys 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. 2016 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 2016 was $36 million compared to $9 million for the same timeframe
in 2015.
The annual budget is the basis for the Citys financial planning and control. The budget is prepared
by Fund (e.g., General), function (e.g., Public Works) and division (e.g., Engineering). Budget
requests are submitted in July by Department Heads. The City Administrator reviews the submittals
with the Finance Director and Department Heads, to determine the prioritization of specific budget
requests. Informational budget summaries are presented to the City Council during work sessions and
allow for open community presentation and discussion. The City Council is presented with a
proposed budget and tax levy in August of each year. This information succinctly details changes in
the upcoming year budget, such as changes in personnel and position structure, funding requests that
are unique to the specific budget year, and the basis for the request, such as development of a new
program or project, to a Council approved initiative, as well as requests for transfers and internal
funding needs, such as internal service fund reviews. 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 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 five-year capital improvement plan
(CIP) that is the basis for the long term goal of providing and maintaining a functional public facility
program, that provides the residents and businesses with infrastructure necessary for the on-going
growth and development. The capital plans have historically provided details on the infrastructure
projects that are funded through property tax levy, special assessments, utility funds and other
intergovernmental revenue sources. These projects are primarily allowing for the upgrades, expansion
and coordination of transportation based needs, as well as trails, signals and other infrastructure
improvements. The City Council also reviews and discusses the Park planned improvements that are
funded through the Park Reserve 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.
A five-year major equipment list is also annually prepared and presented to Council. 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. Internal Service funds are utilized for
the definition and application of other charges, including governmental buildings, park assets
facilities, and information technology. These charges are integrated into the individual budgets of the
General fund and departments that are benefitted by the activities of the programs. The Internal
Service funds continue to be reviewed and updated as the 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, and the Minnesota Renaissance Festival. 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.
In 2015 and 2016, permits were issued for the construction of the following:
Rahr Malting Company expansion including the addition of 112,000 square foot
manufacturing, assembly, and processing plant, a 90,000 square foot warehouse, a
14,500 square foot maintenance warehouse, and an 18,400 square foot research
laboratory
Amazon.com, Inc. constructed a new 820,000 square foot order fulfillment warehouse
facility with a targeted open date of August 2016. The interior of this space includes
three mezzanines which brings the total square footage to just over 2 million. This
facility is expected to bring 1,000 new jobs to the City
Amazon.com, Inc. remodeled an existing building and opened a sortation center that
employs 150 new FTEs.
Construction of a 55 unit senior assisted living facility near the downtown area
Duke Reality, Inc. constructed a 242,000 square foot light industrial building that will
be occupied by Milestone AV.
800,000 sq. ft. of vacant space in a previous Kmart distribution center is now occupied
by Polaris Industries.
Amerisource Bergen is constructing a 200,000 sq. ft. Pharmaceutical Distribution
Facility.
Warner Stellian constructed a new three tenant building. They are occupy 1/3 of the
space and have the additional 2/3 available for lease.
St. Francis Regional Medical Center is constructing a new 15,500 sq. ft. addition.
Local tax incentives were provided for both the Rahr Malting Company and the Amazon.com, Inc.
projects. Tax incentives for the Amazon project are directed towards City and County public
infrastructure and street improvements. Rahr Malting Company tax incentives are being directed
back towards the expansion project. Both TIF projects will expire in nine years.
In addition to the 55 unit senior assisted living facility mentioned above, the City continues to issue
residential permits in the Dakota Highlands first and second editions.
Major Initiatives
The recent commercial, industrial and residential growth has required the City to maintain a
commitment to the infrastructure plans, and integration with other local and regional projects. The
City Council committed funding in 2013 for a dedicated transfer of the property tax levy to fund a
portion of the planned capital improvements. The initial $500,000 commitment allows for street
reconstruction and overlays, and miscellaneous other construction projects. The 2014 and 2015
budgets provided $750,000 and $1,000,000 respectively for continued and expanded capital
improvement funding. The 2016 budget continues with the commitment, dedicating $1 million
towards capital improvement funding. This will provide for a consistent funding source needed to
address recently deferred infrastructure programs. The City also continues to work with Scott County,
the State of Minnesota (MnDOT), as well as private developers, to allow for a strong coordination of
project planning and benefits to the regions transportation system and business climate.
Supporting retail opportunities, such as restaurants and small retail sites, are investigating Shakopee as
a result of the impending increased employee counts from the planned commercial ventures that are
scheduled to build in the community.
Scott County has historically dealt with a daily out-migration of workers who work in neighboring
counties. This issue is being addressed by decision makers, who want to utilize the skilled and
educated work force as an attraction to businesses. The commercial and industrial growth that the
City has recently and will continue to experience will eliminate some of the loss of daily work force
from the area. By seeking a solution to both transportation and employment issues, the residents of
the Shakopee area will be able to benefit by living and working close to home.
The Citys community center and ice rink renovation broke ground April 1, 2016. This $30.4 million
project includes the construction of a new two-sheet arena, addition of an aquatic facility, and the
expansion of fitness, senior lounge, indoor playground, and child care areas. This project is being
funded through the issuance of tax abatement bonds.
Long-Term Financial Planning
Historically, the City has issued only limited debt, in the form of bonds and internal funding for the
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. This limited amount of special assessment revenue does
require the City to clearly define the other recognized components of the payment of project costs.
The City does not assess for overlays, which then requires funding from the tax levy or other
regional revenues sources. The City Council has recently allowed for the use of inter-fund
transfers, use of existing fund balance position, as well as review of charges and fees that may be
applicable to the projects, and currently not tapped for future funding sources.
City 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 equipment replacement
program clearly identifies the equipment 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. This has become a high priority of
the departments to make certain that the assets of the City are adequately covered.
Relevant Financial Policies
The Citys target General Fund balance is to maintain an unassigned level between 40% and 45% of
current year 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 City historically receives no local government aid (LGA). Annual legislative actions may
impact the financial position of those cities that are currently reliant on these and other revenue
sources, which leaves them vulnerable to the economies of the State as a whole. As of this writing,
it was not anticipated that actions by the Minnesota Legislature would negatively impact the City
and its operations and planning. The standard budget process, which provides for the presentation
and approval of the property tax levies for the General fund (including Economic Development),
debt service and referendum debt, will be consistent with prior year actions.
The accounting, auditing and financial reporting policies are designed to maintain a system of
financial monitoring, control and reporting for all operations and funds in order to provide effective
means of ensuring that overall City goals and objectives will be met and to assure the Citys
residents and investors that the City is well managed and fiscally sound.
The investment policy provides for conservative investing, preserving capital and maintaining
adequate liquidity for forecasted cash needs. A third party investment manager handles the majority
of 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)
provide 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.
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
Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2014.
This was the 30th 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
CAFR. 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 CAFR
continues to meet the Certificate of Achievement Programs 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 Councilors for their support
for maintaining the highest standards of professionalism in the management of the City of
Shakopees finances.
Respectfully submitted,
William H. Reynolds
City Administrator
Darin Nelson
Finance Director
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CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
As management of the City of Shakopee (the City), we offer readers of the Citys financial statements
this narrative overview and analysis of the financial activities of the City for the year ended
December 31, 2015. 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 8 of this report.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent year by $ 247.3
million (net position). Of this amount, $ 49.9 million (unrestricted net position) may be used to
meet the Citys ongoing obligations to citizens and creditors.
The Citys total net position decreased $ 9,417,587. GASB 68 was implemented in 2015 to
record the Citys pension liability. This resulted in decrease in overall net positon of $ 7.5
million as a change in accounting principle to record the initial year of liability. The current year
net position before the change in account principal decreased $ 1,866,170.
As of the close of the current year, the Citys governmental funds reported combined ending
fund balances of $ 21,501,392, decreasing from the prior year. Approximately 37.7% of this
total amount, $ 8.1 million is available for spending at the Citys discretion (unassigned fund
balance).
At the end of the current year, unassigned fund balance for the General Fund was $ 9.8 million,
or 46.7 %, of total General Fund 2015 expenditures and 45% of the 2016 budgeted expenditures.
The Citys total bonded debt decreased $ 5,615,000.
CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
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). SPUCs 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
Citys government-wide financial statements. The City Council is the EDA Board.
The government-wide financial statements can be found on pages 28 and 29 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.
Government Funds
Government 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 Citys near-term financings requirements.
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 Citys 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 31 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, Economic Development Authority Special
Revenue Fund, 2004D Building Bonds and 2012A Refunding Bonds Debt Service Funds and the Capital
Improvements and Community Center and Ice Arena 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 non-major 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. A budgetary comparison statement
has been prepared for the fund to demonstrate compliance with the budget.
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CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
The basic governmental funds financial statements can be found on pages 30 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 Citys
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 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 40 to 43 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.
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 Citys own programs.
The basic fiduciary fund financial statements can be found on page 45 of this report.
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 49 to 92 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 Citys progress in funding its obligation to provide
pension benefits to its employees.
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CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
The combining statements referred to earlier in connection with non-major governmental funds, internal
service funds and fiduciary funds are presented immediately following the required supplementary
information on pensions. Combining and individual fund statements and schedules can be found on
pages 106 to 123 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a Citys financial position.
For the City, assets exceeded liabilities by $ 247.3 million at the close of the most recent year.
By far the largest portion of the Citys net position (76.8 %) reflects its investment in capital assets (e.g.,
land, buildings 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 Citys 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)
Governmental Activities
2015
2014
Current and Other Assets
Capital Assets
Total Assets
Total Liabilities
Deferred Inflows of Resources
27,526
68,986
29,190
67,831
73,843
198,032
81,826
196,062
$ 180,867
96,512
97,021
$ 271,875
277,888
2,352
44
2,396
18,776
5,224
10,370
10,111
419
1,132
88
616
19,195
6,356
10,458
10,727
24,000
20,481
1,551
704
25,551
21,185
1,398
37
1,435
$ 117,981
7,103
35,302
68,986
25,982
67,831
28,486
$ 189,817
7,547
49,921
185,812
7,103
63,788
$ 160,386
94,968
96,317
$ 247,285
256,703
NET POSITION:
Net Investment in Capital Assets $ 120,831
Restricted
7,547
Unrestricted
23,939
Total Net Position
2014
$ 175,363
$ 152,317
Total
2015
52,636
128,231
46,317
129,046
Business-Type Activities
2015
2014
An additional portion of the Citys net position (3.0%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position ($ 49.9
million) may be used to meet the Citys 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.
18
CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
During the current year, the Citys net position decreased $ 1.8 million along with a decrease of $ 7.5
million related to pension liability. Governmental activities decreased as a result of the City
consolidating public transit services and transferring the remaining fund balance to Minnesota Valley
Transit Authority (MVTA). Additionally, the City purchased new election equipment during 2015. The
business-type activities decreased as a result of declining usage reported by Shakopee Public Utilities
Association related to sewer. Expenses remained consistent with the prior year. This resulted in
revenues under expenditures in business type activities resulting in an overall decrease in net position.
Changes in Net Position
(Expressed in Thousands)
Governmental Acvtivities
2015
2014
REVENUES:
Program Revenues:
Charges for Services
Operating Grants and
Contributions
Capital Grants and
Contributions
General Revenues:
Property Taxes
Other Taxes
Other
Total Revenues
EXPENSES:
General Government
Public Safety
Public Works
Culture and Recreation
Economic Development
Interest on Long-Term Debt
Sewer
Storm
Refuse
Total Expenses
7,920
7,574
4,699
Total
2015
4,200
12,619
2014
11,774
2,510
2,880
2,510
2,880
1,735
6,669
66
497
1,801
7,166
16,807
407
540
29,919
16,447
216
780
34,566
367
5,132
538
5,235
16,807
407
907
35,051
16,447
216
1,318
39,801
4,238
10,582
8,552
4,355
2,604
275
30,606
5,514
10,544
10,667
4,251
1,594
454
33,024
3,824
1,726
128
5,678
3,778
1,924
5,702
4,238
10,582
8,552
4,355
2,604
275
3,824
1,726
128
36,284
5,514
10,544
10,667
4,251
1,594
454
3,778
1,924
38,726
(1,233)
1,075
(634)
(1,867)
1,075
256,703
(7,551)
249,152
$ 247,285
255,628
255,628
256,703
(687)
Transfers
Special Items
496
(634)
Business-Type Activities
2015
2014
1,542
(419)
-
(546)
(467)
(496)
-
419
-
(825)
1,123
(1,042)
NET POSTION:
January 1
160,386
Change in Accounting Principles
(7,244)
January 1 As Restated*
153,142
December 31
$ 152,317
159,263
159,263
160,386
96,317
(307)
96,010
94,968
(48)
96,365
96,365
96,317
*GASB Statement No. 68 was implemented for the year ended December 31, 2015 and required a
$ 7,244,500 and $ 306,917 restatement of beginning net position for governmental activities and
business type activities, respectively. Prior year amounts were not restated causing variance in ending
net position at December 31, 2014 and beginning net position on December 31, 2015. See Note 20.
19
CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
Governmental Activities
Governmental activities decreased the Citys net position before change in accounting principal by
$ 824,085. The major decrease was related to transit services being consolidated within MVTA
resulting in a transfer of $ 634,070 to MVTA to begin operations. Additionally the city purchased
$114,800 in election equipment during 2015.
Expenses and Program Revenues Governmental Activities
$12,000,000
$10,000,000
$8,000,000
Program Revenues
$6,000,000
Expenses
$4,000,000
$2,000,000
Interest on Long
Term Debt
Economic
Development
Recreation
Public works
General
Government
Public Safety
$-
Other Revenues
2%
Operating Grants
and
Contributions
8%
Capital Grants
and
Contributions
6%
Other Taxes
1%
Property Taxes
56%
20
CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
Business-Type Activities
Business-type activities decreased the Citys net position by $ 1,042,085. The City had an increase in
trunk charges due to development. Revenues and expenditures were consistent between the current and
prior year however overall expenditures exceeded revenues as the revenue collected for sewer services
does not cover the payments made to suppliers. Additionally, Business Type activities transferred
$496,484 to the governmental funds for operational expenses. The sewer and storm water activities will
continue to experience a higher degree of expense, as the deferral of maintenance and increasing
mandates will continue to put pressure on the funds, to meet the demands of on-going and future
development needs.
Expenses and Program Revenues Business-Type Activities
$4,000,000
$3,500,000
$3,000,000
$2,500,000
Program
Revenues
$2,000,000
Expenses
$1,500,000
$1,000,000
$500,000
$Sewer
Storm
Refuse
Investment
Earnings
7%
Charges for
Services
92%
21
CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
Governmental Funds
The focus of the Citys governmental funds is to provide information on near-term inflows, outflows and
balances of spendable resources. Such information is useful in assessing the Citys financing
requirements. In particular, assigned and unassigned fund balance may serve as a useful measure of a
Citys net resources available for spending at the end of the year.
As of the end of the current year, the Citys governmental funds reported combined ending fund
balances of $ 21,501,392, a decrease of $ 4,385,581 in comparison with the prior year. Approximately
37.7%, ($ 8,103,435), of the total amount constitutes unassigned fund balance, which is available for
spending at the Citys discretion. Approximately 36.0%, ($ 7,744,416), of the total amount constitutes
assigned fund balance, which is assigned for designated purposes. The remainder of fund balance,
($ 5,653,541), is not available for new spending because it has already been restricted or is
non-spendable.
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 $ 9,840,110. As a measure of the General Funds liquidity, it may be useful to
compare fund balance (unassigned) to total fund expenditures. Fund balance represents 46.7% of total
General Fund expenditures.
Fund balance of the Citys General Fund increased by $ 2,064 during the current year. Key factors in
this increase consist of the following:
Before transfers, the fund balance of the General Fund showed a $ 3,267,530 increase. After the
net transfer out of $ 3,265,466, fund balance increased $ 2,064. Transfers provided the necessary
funding for several significant capital infrastructure programs and projects, payment of some
debt service funds as well as funding for the growing Information Technology needs of the City
Overall revenues increased approximately $ 537,000 as a result of increased property taxes.
Additional licenses and permits increased due to increased growth and development during the
year. Intergovernmental revenue increased due to an increase in state aid maintenance money.
Charges for services increased due to additional contracted services being performed in 2015.
Fine and forfeitures decreased due to the Scott Joint Prosecution Association (SJPA) ceasing
operations during 2014. All court fines are turned over to Scott County as part of the agreement.
Overall expenditures increased approximately $ 557,000 due to cost of living increases and new
positions added in 2015. Additionally as part of City restructuring an early buy-out incentive
was offered in 2015 to one employee. This resulted in a payout of severance for a long term
employees. Additionally new election equipment was purchased for $114,800 during 2015.
Fund balance of the Economic Development Authority fund increased $ 313,341. This was a result of
transfers of $ 1,450,385 from the general fund for operations, improvement loans and downtown
redevelopment and sewer fund for SAC business subsidy payments to nine companies. The EDA fund
balance increase was due to not completing downtown redevelopment projects.
Fund balance of the 2004D Building Bonds fund decreased $ 4,110,786 as this bond reached the
crossover date on refunding and the final bond payment was made. The remaining balance was
transferred to close the fund to the 2012A Refunding Bonds fund.
22
CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
Fund balance of the 2012A Refunding Bond increased $ 658,179. The major reason for the increase
was due to a transfer from the 2004D Building Bonds fund when the fund was closed. Additionally fund
balance increased due to a prior period adjustment with the Capital Improvement fund relating to
assessment revenues, see note 21.
Fund balance of the Capital Improvements fund increased $ 671,098. The increase was attributed to
transfers to reimbursement payments related to completed street projects. The City paid for the
following projects in 2015 from this fund:
Street Reconstruction Projects
Bituminous Overlay
Offsetting the increase was a fund balance decreased related to a prior period adjustment with the 2012A
Refunding Bond fund relating to assessment revenues, see note 21.
Fund balance of the Community Center and Ice Arena fund decreased $ 1,676,076 as this project began
in 2015 with design and bid work being completed in 2015 and construction beginning in 2016.
Fund balance of the Non-major Governmental Funds decreased $ 243,401. Major changes are as
follows:
Debt service fund decreased $ 686,404 due to regular bond payments offset by tax levies and
assessment revenue related to the bonds.
Transit decreased approximately $ 635,247. Services were transferred to Metro Valley Transit
Authority (MVTA) in 2015.
Park Reserve decreased approximately $ 247,000. Southbridge Community Park, Quarry Lake
Park and Tahpah Park field work and lighting are projects that took place during the year.
Tree Replacement increased approximately $ 113,000 as a result of fines paid for unplanted
trees.
City Hall increased approximately $ 1.1 million as a result of transfers from the general fund and
2004C bond fund when it closed to help pay for the construction of a new city hall.
Proprietary funds
The Citys 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):
Sewer
Storm
Refuse
Beginning of Year
Change During Year
14,209
(2,148)
15,235
(494)
(1,100)
92
End of Year
12,061
14,741
(1,008)
The Refuse fund was created during 2014 with the Citys purchase of garbage carts. The City has
undertaken several new development projects and continues to review fees charged to make sure costs are
covering operations of the funds. The capital assets of the projects will increase the capital assets of these
funds, as well as the offsetting future year depreciation charges. 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.
23
CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
GENERAL FUND BUDGETARY HIGHLIGHTS
The original and final legally adopted budget for expenditures was $ 21,867,167 and transfers out were
budgeted at $ 1,900,000. There was one budget amendment during 2015 which just moved expenditures
from the governmental function to the public safety function totaling $ 64,600. Actual expenditures of
$ 21,063,756 were $ 803,411 under budget. The variance was a result of several unique events,
including higher than anticipated position turnover and the accompanying lag in replacement hiring time
and lower than anticipated fuel and vehicle maintenance. Additionally, City staff continued a trend of
conservative spending. The City was diligent in obtaining many of the services and supplies originally
budgeted for the year at a lower than anticipated cost, such as training and training related costs,
building maintenance costs and limited use of the contingency funds which provide for unplanned
events or occurrences. Additional transfers out over budget are under taken annually. This is to comply
with the Citys established fund balance policy. At the end of 2015 following transfers the city
maintained a fund balance percentage of 46.7% of current year expenditures and 43.1 % of the 2016
budgeted expenditures.
The original and final adopted budgets for revenues were $ 23,104,893 and transfers in were
$ 250,000. Actual revenues of $ 24,331,286 were $ 1,226,393 over budget. This was a result of an
increases in development and building and conservative budgeting resulting in both licenses and permits
and charges for services to come in over budget. The revenue received from the Electric and Water
utility, component units, is recorded as a Charge for Service, were over budget as a result of
conservative budgeting as the amounts can fluctuate from year to year based on usage.
Intergovernmental also came in over budget as a result of increased maintenance money and police aid.
Fines and forfeitures came in under budget as a result of SJPA fines not removed from the budget when
the SJPA ceased operations in 2014, in 2015 all court fines received from the state are passed through to
Scott County.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The Citys investment in capital assets for its governmental and business type activities as of
December 31, 2015, amounts to $ 198,032,398 (net of accumulated depreciation). This investment in
capital assets includes land, buildings and systems, improvement, machinery and equipment, park
facilities, roads, highways and bridges.
Major capital assets events during the current year included the following:
Purchase of a 2014 Rosenbaur smart aerial fire truck
Started planning on the new two sheet ice arena and community center remodel
Quarry Lake Park construction was started in 2015
Field improvements at tahpah park and schleper stadium
Reconstruction of streets, sanitary sewer, storm sewer and water mains on St. Marks street,
Shumway street, 7th street, Market street, Thrush street, CSAH 83, Danube avenue, Valley View
road and Jennifer lane.
Several bituminous overlay projects were also undertaken in the community, to maintain the
infrastructure of the system
Vehicle replacements in police, streets and parks
Additional information on the Citys capital assets can be found in Note 6 on pages 66 to 68 of this
report.
24
CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
CAPITAL ASSETS
(Net of Depreciation)
Expressed in Thousands
Governmental Activities
2015
2014
Land
ROW
Construction in Progress
Line Rights
Infrastructure
Buildings
Machinery and Equipment
Total
20,907
254
4,136
69,489
25,631
8,629
$ 129,046
Business-Type Activities
2015
2014
Total
2015
2014
20,783
254
2,671
71,471
26,041
7,011
$ 3,797
448
212
817
61,499
2,214
3,797
448
1,716
841
58,532
2,497
24,704
702
4,348
817
130,988
25,631
10,843
$ 128,231
$ 68,987
67,831
$ 198,033
24,580
702
4,387
841
130,003
26,041
9,508
$ 196,062
In 2015, several projects that were in progress were continued and completed, as these projects often
involved the coordination with County, State and Federal entities. The status of these projects is highly
dependent on weather and the funding and staffing of cooperating entities, and will often impact the
ability of the City to complete these projects in the anticipated year.
Long-Term Debt
At the end of the current year, the City had total bonded debt outstanding of $ 8,215,000. Of this
amount, $ 5,100,000 comprises debt backed by the full faith and credit of the government and
$ 3,115,000 is special assessment debt for which the government is liable in the event of default by the
property owners subject to the assessment.
Outstanding Debt
G.O. and Revenue Bonds
Expressed in Thousands
Governmental Activities
2015
2014
G.O. Bonds
Special Assessment Debt with
Governmental Commitment
Total
5,100
3,115
$
8,215
9,390
4,440
13,830
The Citys total bonded debt decreased by $ 5,615,000 during the current year. The 2004D bond was
refunded in 2012 as a crossover refunding with the call date being February 2015. That bond was paid
off in 2015 with $ 3,580,000 coming from escrow.
25
CITY OF SHAKOPEE
MANAGEMENTS DISCUSSION AND ANALYSIS
December 31, 2015
Minnesota Statutes limit the amount of general obligation (G.O.) debt a government entity may issue to
a net figure of 3% of the taxable market value. The current legal debt margin for the City is $ 108
million, which is significantly in excess of the Citys outstanding G.O. debt.
Additional information on the Citys long-term debt can be found in Note 7 on pages 68 to 71 of this
report.
ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND RATES
The unemployment rate for the state continued to decrease to a year-end level of 3.0%.
The City is currently experiencing the construction and development of several new commercial
business sites. These companies such as Amazon, Duke Reality, Amerisource Bergen, and Warner
Stellian, and improvements at sites such as Rahr Malting, St. Francis Regional Medical Center and
Polaris Industries located in a previous vacant distribution center are expanding and enhancing the
economic tax base as well as the employment options in the community. These business ventures will
bring not only a strong base of varied jobs to the area but enhanced tax base for the recently developed
commercial and industrial sites.
The City is also experiencing interest from business entities that are considering Shakopee as a favorable
site due to increased economic activity and expanded retail sale activity.
During the current year, the unassigned fund balance in the General Fund was $ 9,818,537. This can be
similarly compared to the unassigned fund balance of 2014 of $ 9,824,097. The City continues to
maintain a strong financial position as the economic climate and the economic diversification of the
region and the state continue to improve.
The general tax levy for 2015/2016 is increased to $ 16,825,900, in comparison to the prior year amount
of $ 16,138,000. This levy was increase to provide needed funding for city positions and infrastructure
needs through the capital improvement fund. Historically only 30 % of some of the project costs are
funded through special assessments which will require a firm commitment of the Council to provide
needed resources for maintenance, improvements and additions to the existing infrastructure.
City staff continues to refine and coordinate multi-department development related activities. This is
done through review of fees, charges, consistent practices and detailed discussions specific to each
development review. As staff continues to refine these practices the achieved outcome will be to
provide a higher level of positive customer and development satisfaction.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general view of the Citys finances for all those with an
interest in the Citys finances. Questions concerning any of the information provided in this report or
requests for additional information should be addressed to the Finance Director, 129 Holmes St. S.,
Shakopee, Minnesota, 55379.
26
27
CITY OF SHAKOPEE
STATEMENT OF NET POSITION
December 31, 2015
Governmental
Activities
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Assets
Cash and Investments (Including Cash Equivalents)
Restricted Cash and Investments
Property Tax Receivable
Accounts Receivable (Net of Allowance for
Uncollectible Accounts)
Interest Receivable
Due From Other Governments
Special Assessments Receivable
Inventories
Prepaid Expenses
Land Held for Resale
Net Pension Asset
Capital Assets, Net of Accumulated
Depreciation (Where Applicable):
Land and Land Improvements
Right of Way
Construction in Progress
Line Rights
Infrastructure
Plant in Service
Buildings
Machinery and Equipment
Total Assets
Deferred Outflows of Resources
Deferral on Refunding
Deferred Outflows of Resources Related to Pensions
Total Deferred Outflows of Resources
Total Assets and Deferred Outflows of Resources
Net Position
Net Investment in Capital Assets
Restricted for:
Economic Development
Cable PEG Fees
Forfeiture
Debt Service
Component Units
Capital Improvements
Unrestricted
Total Net Position
Total Liabilities and Net Position
The Notes to the Financial Statements are an integral part of this statement.
37,041,048
145,958
Business-Type
Activities
26,726,691
-
Total
Component Unit
63,767,739
145,958
32,467,135
13,509,936
-
355,737
155,561
984,714
5,314,342
21,573
779,926
1,517,988
111,958
472,014
215,286
-
355,737
267,519
1,456,728
5,529,628
21,573
779,926
1,517,988
3,927,498
31,289
452,544
1,329,595
75,635
-
20,907,105
253,904
4,136,075
69,489,100
25,631,092
8,628,753
3,796,803
447,746
211,774
816,809
61,498,818
2,214,419
24,703,908
701,650
4,347,849
816,809
130,987,918
25,631,092
10,843,172
5,097,532
8,274,803
64,951,984
-
175,362,876
96,512,318
271,875,194
130,117,951
2,352,313
44,160
2,396,473
243,081
436,899
2,352,313
44,160
2,396,473
679,980
177,715,189
96,556,478
274,271,667
130,797,931
1,501,521
875,580
217,667
90,598
1,125
-
445,506
662,411
-
1,947,027
1,537,991
217,667
90,598
1,125
-
3,886,141
385,753
906,992
2,069,558
151,393
6,091
490,048
1,685,000
6,530,000
1,685,000
6,530,000
410,000
8,005,782
851,770
1,041,052
1,345,024
9,860,185
24,497
29,941
66,616
322,582
876,267
1,070,993
1,411,640
10,182,767
3,150,972
23,999,522
1,551,553
25,551,075
19,462,730
1,398,084
37,014
1,435,098
338,541
1,398,084
37,014
1,435,098
338,541
25,397,606
1,588,567
26,986,173
19,801,271
120,831,029
68,986,369
189,817,398
69,908,537
674,910
108,627
180,555
5,202,731
1,380,667
23,939,064
25,981,542
674,910
108,627
180,555
5,202,731
1,380,667
49,920,606
11,188,985
29,899,138
152,317,583
94,967,911
247,285,494
110,996,660
177,715,189
96,556,478
274,271,667
130,797,931
28
29
3,824,026
1,726,149
127,781
5,677,956
4,237,647
10,582,354
8,552,096
4,355,453
2,603,741
274,960
30,606,251
2,829,981
1,765,679
103,637
4,699,297
2,904,587
2,146,840
704,687
2,140,071
24,000
7,920,185
$ 43,419,652
4,451,934
$ 47,871,586
$ 12,619,482
2,509,986
69,903
733,008
703,475
3,600
1,000,000
2,509,986
658,279
3,163,624
3,821,903
1,801,387
65,844
65,844
1,649,872
85,671
1,735,543
Capital Grants
and
Contributions
General Revenues
Property Taxes
Tax Increments
Unrestricted Investment Earnings
Gain on Sale of Asset
Transfers
Special Items
Total General Revenues, Transfers and Special Items
Change in Net Position
Net Position - Beginning
Change in Accounting Principles
Net Position - Beginning, As Restated
$ 38,625,965
4,388,709
$ 43,014,674
$ 36,284,207
Expenses
The Notes to the Financial Statements are an integral part of this statement.
Business-Type Activities
Sewer
Storm Drainage
Refuse
Total Business-Type Activities
Functions/Programs
Governmental Activities
General Government
Public Safety
Public Works
Culture and Recreation
Economic Development
Interest on Long-Term Debt
Total Governmental Activities
Charges for
Services
Program Revenues
Operating
Grants and
Contributions
16,807,367
406,571
452,281
87,819
496,484
(634,070)
17,616,452
(824,085)
160,386,168
(7,244,500)
153,141,668
(18,440,537)
(1,263,157)
(7,702,506)
(5,494,062)
(2,126,111)
(1,579,741)
(274,960)
(18,440,537)
$ 152,317,583
Governmental
Activities
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
CITY OF SHAKOPEE
349,776
17,438
(496,484)
(129,270)
(1,042,085)
96,316,913
(306,917)
96,009,996
(912,815)
(928,201)
39,530
(24,144)
(912,815)
$ 94,967,911
Business-Type
Activities
16,807,367
406,571
802,057
105,257
(634,070)
17,487,182
(1,866,170)
256,703,081
(7,551,417)
249,151,664
(19,353,352)
(928,201)
39,530
(24,144)
(912,815)
(1,263,157)
(7,702,506)
(5,494,062)
(2,126,111)
(1,579,741)
(274,960)
(18,440,537)
$ 247,285,494
Total
104,344
8,783,159
105,181,077
(2,967,576)
102,213,501
90,223
14,121
-
5,451,966
3,226,849
8,678,815
$ 110,996,660
Component
Units
CITY OF SHAKOPEE
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2015
General Fund
ASSETS
Cash and Investments
Delinquent Taxes Receivable
Special Assessments Receivable:
Delinquent
Deferred
Accounts Receivable
Interest Receivable
Due From Other Governments
Prepaid Items
Land Held for Resale
Total Assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities
Accounts Payable
Contracts Payable
Due to Other Funds
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
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
$ 10,145,047
145,557
Special Revenue
Debt Service
Capital Project
Economic
Development
Authority
2012A
Refunding
Bonds
Capital
Improvements
5,786
39,975
331,816
46,318
416,944
21,573
-
980,681
29
3,504
673,300
1,284,291
-
1,599,298
5,388
-
5,837,364
855
3,059,926
12,968
26,834
567,273
-
$ 11,153,016
1,657,514
2,888,977
9,505,220
41,181
941,394
982,575
200
200
50,785
174,880
88,580
314,245
480,624
422,172
217,667
1,125
1,121,588
145,557
45,761
191,318
29
29
1,599,298
1,599,298
3,060,781
3,060,781
21,573
9,818,537
9,840,110
674,910
674,910
1,289,479
1,289,479
6,130,194
6,130,194
$ 11,153,016
1,657,514
2,888,977
9,505,220
30
Capital Project
Community
Center & Ice
Arena
$
Other
Governmental
Funds
Total
Governmental
Funds
5,741,349
372
$ 23,988,732
145,958
21,701
586,801
10,953
17,972
106,626
28,342
5,286,000
355,737
96,252
984,217
21,573
779,926
6,485,774
$ 31,686,737
149,407
34,718
450,000
634,125
(3,764)
$
(3,764)
444,858
897,344
330,110
1,672,312
(1,676,076)
(1,676,076)
(3,764)
1,167,055
174,880
897,344
875,580
217,667
1,391,394
1,125
4,725,045
372
608,502
608,874
145,958
5,314,342
5,460,300
3,667,579
1,614,222
(39,026)
5,242,775
21,573
5,631,968
7,744,416
8,103,435
21,501,392
6,485,774
$ 31,686,737
31
32
CITY OF SHAKOPEE
RECONCILIATION OF THE BALANCE SHEET TO
THE STATEMENT OF NET POSITION - GOVERNMENTAL FUNDS
December 31, 2015
$ 21,501,392
171,734,560
(75,478,730)
1,517,988
(8,215,000)
(1,345,024)
(9,860,185)
145,958
28,342
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
5,286,000
(90,598)
(1,398,084)
2,352,313
46,138,651
The Notes to the Financial Statements are an integral part of this statement.
$ 152,317,583
33
CITY OF SHAKOPEE
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the Year Ended December 31, 2015
General Fund
REVENUES
Property Taxes
Tax Increment
Special Assessments
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Miscellaneous
Total Revenues
EXPENDITURES
Current
General Government
Public Safety
Public Works
Culture and Recreation
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)
Special Items
Net Change in Fund
Balances
FUND BALANCES
Beginning of Year, as Previously Stated
Prior Period Adjustment
Beginning of Year, as Restated
End of Year
$ 16,160,075
12,043
2,023,436
1,356,733
4,452,415
7,093
319,491
24,331,286
Debt Service
Special Revenue
Economic
Development
Authority
$
2
1,000,000
24,000
9,336
1,033,338
2004D
Building
Bonds
$
2012A Refunding
Bonds
1,363
1,363
234,472
92,157
326,629
3,861,312
10,150,416
3,036,284
3,889,078
-
1,920,070
126,666
21,063,756
250,312
2,170,382
3,865,000
80,629
3,945,629
210,000
91,650
301,650
3,267,530
(1,137,044)
(3,944,266)
24,979
250,000
(3,515,466)
1,450,385
-
466,680
(633,200)
633,200
-
(3,265,466)
1,450,385
(166,520)
633,200
2,064
313,341
(4,110,786)
658,179
9,838,046
9,838,046
361,569
361,569
4,110,786
4,110,786
460,218
171,082
631,300
$ 9,840,110
674,910
1,289,479
34
Capital Projects
Community
Center & Ice
Capital
Arena
Improvements
$
635,055
1,070,397
110,347
1,815,799
Total
Governmental
Funds
658,887
406,571
275,835
965,602
3,430
164,763
73,113
2,548,201
$ 16,818,964
406,571
1,157,405
2,989,038
3,427,130
4,479,845
171,856
604,816
30,055,625
(991)
(991)
3,025
59,323
2,464
432,551
3,864,337
10,209,739
3,036,284
3,891,542
2,352,621
2,391,523
2,391,523
1,675,085
1,675,085
1,540,000
193,619
1,018,021
3,249,003
5,615,000
365,898
5,461,607
34,797,028
(575,724)
(1,676,076)
(700,802)
(4,741,403)
6,135,344
(5,145,452)
1,396,822
(150,000)
1,938,257
(846,786)
1,246,822
1,091,471
671,098
(1,676,076)
5,630,178
(171,082)
5,459,096
$
Other
Governmental
Funds
6,130,194
(1,676,076)
989,892
(634,070)
(634,070)
(243,401)
(4,385,581)
5,486,176
5,486,176
25,886,973
25,886,973
5,242,775
$ 21,501,392
35
36
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, 2015
$ (4,385,581)
4,454,712
(4,769,745)
85,105
5,615,000
Interest on long-term debt in the Statement of Activities differs from the amount
reported in the governmental funds because interest is recognized as an expenditure
in the funds when it is due and thus requires use of current financial resources.
In the Statement of Activities, however, interest expense is recognized as
the interest accrues, regardless of when it is due.
90,938
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
(15,734)
(462,196)
OPEB obligations are recognized when paid in the government funds but recognized
when incurred in the Statement of Activities
(160,992)
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.
(11,597)
(178,060)
(143,468)
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.)
(942,467)
The Notes to the Financial Statements are an integral part of this statement.
(824,085)
37
38
CITY OF SHAKOPEE
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GENERAL FUND
For the Year Ended December 31, 2015
Budget
REVENUES
Property Taxes
Special Assessments
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Miscellaneous Revenues:
Investment Income
Contributions and Donations
Rents
Other
Total Revenues
Original
Final
$ 16,163,000
11,500
1,348,300
1,028,393
4,050,700
251,000
$ 16,163,000
11,500
1,348,300
1,028,393
4,050,700
251,000
$ 16,160,075
12,043
2,023,436
1,356,733
4,452,415
7,093
150,000
2,550
9,500
89,950
23,104,893
150,000
2,550
9,500
89,950
23,104,893
110,785
18,992
9,096
180,618
24,331,286
(39,215)
16,442
(404)
90,668
1,226,393
4,512,825
9,855,744
3,238,343
4,258,755
4,448,225
9,920,344
3,238,343
4,258,755
3,861,312
10,150,416
3,036,284
3,889,078
(586,913)
230,072
(202,059)
(369,677)
1,500
21,867,167
1,500
21,867,167
21,800
76,875
27,991
21,063,756
21,800
76,875
26,491
(803,411)
1,237,726
1,237,726
3,267,530
2,029,804
250,000
(1,900,000)
250,000
(1,900,000)
250,000
(3,515,466)
(1,615,466)
(1,650,000)
(1,650,000)
(3,265,466)
(1,615,466)
EXPENDITURES
Current
General Government
Public Safety
Public Works
Parks and Recreation
Capital Outlay
General Government
Public Safety
Park and Recreation
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
Variance with
Final Budget Over (Under)
Actual
Amounts
(412,274)
FUND BALANCES
Beginning of Year
End of Year
The Notes to the Financial Statements are an integral part of this statement.
(412,274)
2,064
(2,925)
543
675,136
328,340
401,715
(243,907)
414,338
9,838,046
$ 9,840,110
39
CITY OF SHAKOPEE
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
December 31, 2015
ASSETS
Current Assets
Cash and Investments, Including Cash Equivalents
Interest Receivable
Special Assessment Receivable:
Delinquent
Deferred
Due from Other Funds
Due from Other Governments
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
Total Cost
Less Accumulated Depreciation
Net Capital Assets
Total Noncurrent Assets
Total
Governmental
Activities Internal
Service Funds
(198)
$ 26,539,687
111,958
$ 13,239,320
59,309
235
135,719
15,572,417
(198)
3,314
211,972
47,332
472,014
27,386,277
897,344
497
14,196,470
960,330
1,391,394
4,500
50,059
1,368,569
42,208,501
1,894,016
45,525,645
(12,884,997)
32,640,648
33,600,978
3,792,303
447,746
161,715
42,201,769
987,857
47,591,390
(12,300,626)
35,290,764
35,290,764
1,172,068
1,172,068
(117,111)
1,054,957
1,054,957
3,796,803
447,746
211,774
1,368,569
84,410,270
4,053,941
94,289,103
(25,302,734)
68,986,369
69,946,699
124,326
321,396
3,405,196
34,717,968
14,294,738
52,863,624
(20,073,425)
32,790,199
34,181,593
45,415,036
50,863,181
1,054,759
97,332,976
48,378,063
22,525
21,635
44,160
$ 45,437,561
$ 50,884,816
$ 1,054,759
$ 97,377,136
$ 48,378,063
Sewer
Storm
Drainage
$ 11,167,716
47,664
$ 15,371,971
64,492
3,314
211,737
47,332
336,295
11,814,058
960,330
Total Assets
Deferred Outflows of Resources
Deferred Outflows of Resources Related to Pensions
Total Assets and Deferred Outflows of Resources
LIABILITIES AND NET POSITION
Current Liabilities
Accounts Payable
Contracts Payable
Due to Other Funds
Due to Other Governments
Current Compensated Absences
Total Current Liabilities
Noncurrent Liabilities
Advances from Other Funds
Compensated Absences
Net OPEB Obligation
Net Pension Liability
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources
Deferred Inflows of Resources Related to Pensions
Net Position
Investment in Capital Assets
Unrestricted
Total Net Position
Total Liabilities, Deferred Inflows of Resources and
Net Position
Adjustment to Reflect the Consolidation of Internal Service
Fund Activity Related to Enterprise Funds (See Note 2c)
Total Business-Type Activities Net Position
The Notes to the Financial Statements are an integral part of this statement.
20,308
98,418
373,369
12,152
Refuse
314,984
11,796
289,042
12,345
47,332
-
335,292
110,214
47,332
662,411
24,497
107,185
52,401
851,770
504,247
628,167
47,332
1,179,746
1,011,356
14,852
33,308
164,538
212,698
716,945
15,089
33,308
158,044
206,441
834,608
960,330
960,330
1,007,662
960,330
29,941
66,616
322,582
1,379,469
2,559,215
1,041,052
1,041,052
2,052,408
18,880
18,134
37,014
32,640,648
12,061,088
44,701,736
35,290,764
14,741,310
50,032,074
1,054,957
(1,007,860)
47,097
68,986,369
25,794,538
94,780,907
32,790,199
13,535,456
46,325,655
$ 45,437,561
$ 50,884,816
$ 1,054,759
$ 48,378,063
187,004
$ 94,967,911
40
CITY OF SHAKOPEE
STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION - PROPRIETARY FUNDS
For the Year Ended December 31, 2015
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
Sewer
Storm Drainage
2,834,769
10,670
2,845,439
282,682
770,616
111,361
2,408,708
59,721
35,373
37,600
71,653
68,624
3,846,338
1,102,668
60
1,102,728
Refuse
$
Total
104,665
(1,028)
103,637
4,042,102
9,642
60
4,051,804
Governmental
Activities Internal Service
Funds
$
1,715,554
654
1,716,208
558,318
777,711
198,594
108,666
44,579
48,445
11,608
540
1,748,461
117,111
117,111
841,000
1,665,438
309,955
2,408,708
168,387
79,952
86,045
83,261
69,164
5,711,910
(1,000,899)
(645,733)
(13,474)
(1,660,106)
(856,044)
154,950
2,220
(15,458)
195,751
15,218
662,952
(926)
(10,670)
-
349,775
(10,670)
17,438
647,494
180,730
87,819
5,000
141,712
873,921
(11,596)
(859,187)
228,188
(25,070)
(656,069)
(582,495)
65,844
13,600
30,008
(675,385)
163,128
97,165
(125,000)
65,844
176,728
127,173
(800,385)
1,332
150,000
(466,680)
(25,070)
(1,086,709)
(897,843)
72,167
72,167
96,174,533
(306,917)
95,867,616
47,223,498
47,223,498
(1,425,120)
NET POSITION
Beginning of Year
Change in Accounting Principle
Beginning of Year, Restated
End of Year
363,481
46,283,404
(156,548)
46,126,856
$ 44,701,736
49,818,962
(150,369)
49,668,593
$
50,032,074
47,097
1,004,037
The Notes to the Financial Statements are an integral part of this statement.
273,549
$ 46,325,655
44,624
94,780,907
167,550
1,780,065
144,901
111,147
368,589
2,572,252
(176,728)
176,728
$
(1,042,085)
41
CITY OF SHAKOPEE
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
For the Year Ended December 31, 2015
Storm
Drainage
Sewer
CASH FLOWS - OPERATING ACTIVITIES
Receipts from Customers and Users
Receipts from Interfund Services
Payments to Suppliers
Payments to Employees
Payments for Interfund Services
Net Cash Flows - Operating
Activities
CASH FLOWS - NONCAPITAL
FINANCING ACTIVITIES
Interfund Loan Issued
Payment Received on Interfund Loan
Interest Expense on Interfund Loan Repayment
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
Proceeds (Loss) from Disposal of Capital Assets
Acquisition of Capital Assets
Net Cash Flows - Capital and
Related Financing Activities
CASH FLOWS - INVESTING ACTIVITIES
Interest Received
Net Cash Flows - Investing
Activities
2,879,743
(2,603,867)
(273,006)
(4,449)
(1,579)
1,100,558
(197,372)
(549,421)
-
113,653
4,449
-
Total
$ 4,093,954
4,449
(2,801,239)
(822,427)
(4,449)
$ 1,715,711
(711,901)
(300,804)
(897,344)
353,765
118,102
470,288
(194,338)
106,704
30,008
(675,385)
97,165
(125,000)
(106,704)
(10,670)
-
(10,670)
127,173
(800,385)
(941,394)
50,000
150,000
(466,680)
(538,673)
(27,835)
(117,374)
(683,882)
(1,208,074)
(15,458)
65,844
2,220
(1,224,425)
662,952
15,219
(1,309,342)
647,494
65,844
17,439
(2,533,767)
5,000
87,819
(2,898,497)
(1,171,819)
(631,171)
(1,802,990)
(2,805,678)
150,337
183,483
(728)
333,092
178,920
150,337
183,483
(728)
333,092
178,920
(1,561,734)
12,729,450
15,493,729
$ 11,167,716
$ 15,371,971
End of Year
Refuse
Governmental
Activities Internal
Service Funds
The Notes to the Financial Statements are an integral part of this statement.
(121,758)
(1,683,492)
(4,029,170)
28,223,179
17,268,490
$ 26,539,687
$ 13,239,320
42
CITY OF SHAKOPEE
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
(Continued)
For the Year Ended December 31, 2015
Storm
Drainage
Sewer
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 Expense
Pension Expense
Changes in:
Accounts Receivable
Due from Other Funds
Due from Other Governments
Special Assessments
Due to Other Governments
Accounts and Contracts Payable
Due to Other Funds
Salaries Payable
Compensated Absences Payable
Net OPEB Obligation
Total Adjustments
Net Cash Flows - Operating
Activities
NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Transfer of Capital Assets
$ (1,000,899)
(645,733)
Refuse
Total
(13,474)
$ (1,660,106)
770,616
4,345
777,711
4,174
117,111
-
1,665,438
8,519
473
(4,449)
(11,423)
45,254
299,833
(110,660)
1,749
3,582
999,320
120
(2,112)
(178)
(78,296)
293,356
1,141
3,582
999,498
10,016
4,449
131,576
10,609
(4,449)
(13,535)
45,076
221,537
182,696
4,449
2,890
7,164
2,130,394
Governmental
Activities Internal
Service Funds
1,780,065
(897,344)
(497)
(87,264)
(261,128)
127,874
661,706
(1,579)
353,765
118,102
470,288
13,600
163,128
176,728
The Notes to the Financial Statements are an integral part of this statement.
(856,044)
(194,338)
1,332
43
44
CITY OF SHAKOPEE
COMBINED STATEMENT OF FIDUCIARY NET POSITION
December 31, 2015
Total Agency
Funds
ASSETS
Cash and Investments
Interest Receivable
Due from Other Governments
Total Assets
LIABILITIES
Accounts Payable
Deposits Payable
Due to Other Governments
Total Liabilities
2,848,829
2,321
22,000
2,873,150
413,426
2,433,368
26,356
2,873,150
The Notes to the Financial Statements are an integral part of this statement.
45
CITY OF SHAKOPEE
STATEMENT OF NET POSITION - COMPONENT UNIT - SPUC
December 31, 2015
Electric
ASSETS
Current Assets
Cash and Investments
Restricted Assets:
Sinking Account
Accrued Interest Receivable
Customer Accounts Receivable
Allowance for Uncollectible Accounts
Other Accounts Receivable
Due from City of Shakopee
Inventory
Prepaid Expenses
Total Current Assets
$ 27,531,120
527,227
24,040
3,553,068
(23,902)
70,137
85,763
1,294,826
56,726
33,119,005
Noncurrent Assets
Restricted Assets:
Customer Deposits Account
Connection Account
Water Reconstruction Account
Emergency Repairs Account
Capital Assets:
Plant in Service
Accumulated Depreciation
Construction in Progress
Total Noncurrent Assets
Total Assets
Water
4,936,015
Total
$ 32,467,135
7,249
273,009
(8,764)
63,950
366,781
34,769
18,909
5,691,918
527,227
31,289
3,826,077
(32,666)
134,087
452,544
1,329,595
75,635
38,810,923
2,048,907
100,000
20,651
10,670,936
142,215
-
2,069,558
10,670,936
142,215
100,000
56,644,012
(20,605,191)
4,647,146
42,834,874
75,953,879
49,848,989
(15,838,294)
3,627,657
48,472,154
54,164,072
106,493,001
(36,443,485)
8,274,803
91,307,028
130,117,951
327,674
243,081
570,755
109,225
109,225
436,899
243,081
679,980
$ 76,524,634
$ 54,273,297
$ 130,797,931
3,430,304
348,014
220,872
3,999,190
410,000
151,393
2,048,907
2,610,300
455,837
558,978
164,881
1,179,696
20,651
20,651
8,015,000
(9,218)
6,091
361,468
2,363,230
10,736,571
17,346,061
128,580
787,742
916,322
2,116,669
253,906
3,886,141
906,992
385,753
5,178,886
410,000
151,393
2,069,558
2,630,951
8,015,000
(9,218)
6,091
490,048
3,150,972
11,652,893
19,462,730
84,635
338,541
2,201,304
$ 19,801,271
32,270,185
375,834
26,278,648
58,924,667
37,638,352
10,813,151
3,620,490
52,071,993
69,908,537
375,834
10,813,151
29,899,138
110,996,660
$ 76,524,634
$ 54,273,297
$ 130,797,931
$ 17,599,967
46
The Notes to the Financial Statements are an integral part of this statement.
CITY OF SHAKOPEE
STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION - COMPONENT UNIT - SPUC
For the Year Ended December 31, 2015
Electric
Water
Total
Operating Revenues
$ 43,055,573
$ 4,287,237
$ 47,342,810
Operating Expenses
36,927,117
3,544,678
40,471,795
Operating Income
6,128,456
742,559
6,871,015
274,079
90,000
79,725
(366,734)
154,597
10,498
(43)
428,676
90,000
90,223
(366,777)
(17,802)
14,121
73,389
10,100
175,152
(17,802)
24,221
248,541
6,201,845
917,711
7,119,556
658,279
(1,314,312)
3,163,624
(843,988)
3,821,903
(2,158,300)
5,545,812
3,237,347
8,783,159
NET POSITION
Beginning of Year
Change in Accounting Principle
Beginning of Year, as Restated
55,604,538
(2,225,683)
53,378,855
49,576,539
(741,893)
48,834,646
Capital Contributions
Transfers to Municipality
End of Year
$ 58,924,667
$ 52,071,993
105,181,077
(2,967,576)
102,213,501
$ 110,996,660
47
The Notes to the Financial Statements are an integral part of this statement.
48
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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 organizations 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. Therefore, the
City has financial oversight for Shakopee EDA activities. The City also has operational
responsibility of the EDA.
The activity of the Shakopee EDA is shown in the Shakopee EDA Special Revenue Fund in the
Citys 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 129 Holmes Street South, Shakopee, Minnesota 55379-1351.
49
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity (Continued)
2. Discretely Presented Component Unit
The electric and water utilities of the Shakopee Public Utilities Commission (SPUC) are selfsupporting 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. 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 44
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 2015, the City paid $ 146,510 to LOGIS for services
provided which is included in expenditures of the General Fund. Financial statements are available
by contacting LOGIS, 5750 Duluth Street, Golden Valley, Minnesota 55422-4036.
4. Other Organizations
Shakopee Volunteer Fire Department Relief Association
The Shakopee Volunteer Fire Department 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 Citys reporting entity.
50
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
The Escrow Agency 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 Agency Funds report only assets and liabilities and have no measurement focus, but do use the
accrual basis of accounting to recognize receivables and payables.
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.
51
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
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 Citys primary operating fund. It accounts for all financial resources
of the general City, except those required to be accounted for in another fund.
Economic Development Authority This Fund accounts for development, improve housing and
reduce blighted areas in the City.
2004D Building Bonds This Fund accounts for the resources accumulated and payments made for
principal and interest on this bond issue.
2012A Refunding Bonds This Fund accounts for the resources accumulated and payments made for
principal and interest on this bond issue.
Capital Improvements Capital Project Fund This Fund accounts for the capital projects of the City
not accounted for in separate capital funds.
Community Center & Ice Arena Capital Project Fund This Fund accounts for the construction
costs associated with the construction of the community center and ice arena.
Proprietary Funds:
Sewer Fund This Fund accounts for operations of the Citys sewer utility.
Storm Drainage Fund This Fund accounts for the activities of the Citys storm drainage utility.
Refuse Fund This Fund accounts for operations associated with the Citys garbage carts and
recycling operations.
52
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
Description of Funds: (Continued)
Internal Service Funds:
Equipment Fund This Fund accounts for the Citys acquisition of larger pieces of equipment.
Buildings Fund This Fund accounts for the Citys funds accumulated for construction,
improvement or major repairs of major public buildings.
Park Assets Fund This Fund accounts for the Citys funds accumulated for the replacement of park
assets.
Employee Benefits Fund This Fund accounts for the Citys funds accumulated for compensated
absences and OPEB.
Information and Technology Fund This Fund accounts for the Citys funds accumulated for
information technology resources.
The Citys 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 Funds:
Escrow Agency Fund This Fund accounts for the monies held for specific purposes for individuals,
private organizations, other government units and other funds. Escrows are held on behalf of
builders and developers, for security deposits and police evidence deposits.
Southwest Metro Drug Task Force Agency 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 SPUCs electric utility.
Water Fund This Fund accounts for the operations of the SPUCs water utility.
53
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
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 Citys 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 funds 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 Citys policy to use
restricted resources first, then unrestricted resources as they are needed.
D. Assets, Liabilities and Net Position or Equity
1. Deposits and Investments
The Citys 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. Investments are stated at fair value.
Minnesota Statutes authorizes the City 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.
The Minnesota Municipal Money Market Fund is an external investment pool not registered with the
Securities Exchange Commission (SEC) that follows the same regulatory rules of the SEC under
Rule 2.a.7. The fair value of the position in the pool is the same as the value of the pool shares.
The Citys investment policy for all funds except the component units addresses custodial credit risk
for deposits. The policy also addresses credit risk, interest rate risk, concentration of credit risk and
custodial credit risk for investments. The Citys component units also have a formal policy to
address all of these risks except custodial credit risk for investments.
54
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. Assets, Liabilities and Net Position or Equity (Continued)
1. Deposits and Investments (Continued)
Custodial Credit Risk Deposits: This is the risk that in the event of a bank failure, the Citys
deposits may not be returned to it. Minnesota Statutes require all deposits be protected by federal
deposit insurance, corporate surety bonds or collateral. The market value of collateral pledged must
equal 110% of deposits not covered by Federal Deposit Insurance Corporation (FDIC) insurance or
corporate surety bonds and letters of credit. The City and component units investment policies state
deposits must be collateralized in order to comply with Minnesota Statutes.
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 Citys investment policy references Minnesota Statutes and further limits the
types of investments that the City is allowed to invest in. The component units investment policy
also defines suitable and authorized investments and related minimum ratings.
Interest Rate Risk: This is the risk that changes in market interest rates will adversely affect the fair
value of an investment. The Citys 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 investment policy for
the Citys Electric and Water Enterprise Funds (Shakopee Public Utilities Commission) addresses
this risk by requiring holding of securities to maturity (subject to certain exceptions) and limiting
maturity constraints to a relatively short duration.
Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of an investment in
a single issuer. According to the Citys investment policy, the aggregate investment portfolio shall
be diversified by:
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. Assets, Liabilities and Net Position or Equity (Continued)
1. Deposits and Investments (Continued)
The investment policy for the Citys Electric and Water Enterprise Funds (Shakopee Public Utilities
Commission) defines suitable and authorized investments and related minimum ratings as well as
application of prudent person standards in construction of portfolio management and diversification.
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 Citys investment policy
states all securities purchased, including appropriate collateral, shall be placed with an independent
third party for custodial safekeeping.
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 governmentwide 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
28 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.
56
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. Assets, Liabilities and Net Position or Equity (Continued)
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 unamortized debt issuance costs, the Emergency Repairs Account and the asset
and related amortization relating to the Electric Plant Acquisition.
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 in the component units are classified as restricted. The Electric Fund
has monies restricted for customer deposits and debt service. The 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 $ 1,000 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 estimated fair market value at the date of
donation.
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.
57
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. Assets, Liabilities and Net Position or Equity (Continued)
6. Capital Assets (Continued)
Property, plant and equipment of the City are depreciated using the straight-line method over the
following estimated useful lives.
Assets
Buildings
Park Buildings
Building Improvements
Light Vehicles
Machinery and Equipment
Utility Distribution System
Infrastructure
Fire Trucks
Years
30-50
30
25
4-10
4-20
50-75
30-50
20-25
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. Assets, Liabilities and Net Position or Equity (Continued)
7. Deferred Outflows/Inflows of Resources (Continued)
The governmental funds report unavailable revenues from two sources: property taxes and special
assessments. These amounts are deferred and recognized as an inflow of resources in the period
that the amounts become available.
The City presents deferred inflows of resources on the Statements of Net Position for deferred
inflows of resources related to pensions. 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. City employees earn vacation time based on years
of City service. Employees who have 0 to 15 years of employment may accumulate no more than
240 hours. Employees who have 16 or more years of service may accumulate no more than 360
hours of vacation leave. Upon termination, employees will receive compensation for all unused
vacation. Employees earn sick leave and may accumulate to a maximum of 960 hours. The City
compensates employees who leave municipal service at the rate of 45% up to 15 years of service.
After 15 years of service, employees who leave are compensated at the rate of 55% plus 2% for
each year of service beyond 15 years up to 75% of unused sick leave.
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.
59
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. Assets, Liabilities and Net Position or Equity (Continued)
10. 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 the relief association and additions to/deductions from PERA's and the
relief association's fiduciary net position have been determined on the same basis as they are
reported by PERA and the relief association 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.
11. 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 Citys intent to be used for specific purposes but are neither restricted nor
committed are classified as assigned fund balances. Assignments are made by the Citys Finance
Director based on the City Councils direction. 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. The Citys 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.
a. Minimum Fund Balance
The Citys target General Fund balance is to maintain an unassigned level between 40%
(minimum) and 45% of 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.
60
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. Assets, Liabilities and Net Position or Equity (Continued)
12. Net Position
Net position represents the difference between assets and deferred outflows and liabilities and
deferred inflows in the government-wide financial statements. Net investment in capital assets
consists of capital assets, net of accumulated depreciation, 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.
13. 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.
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.
46,325,655
(187,004)
46,138,651
61
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS
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:
(897,843)
(44,624)
(942,467)
187,004
44,624
62
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
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.
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.
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 funds 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. 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 by the City Council. Individual
amendments were not material in relation to the original amounts budgeted. Budgeted
expenditure appropriations lapse at year-end
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: As of December 31, 2015, the City and Commissions bank balances were not
exposed to custodial credit risk because they were insured through Federal Deposit Insurance
Corporation (FDIC) and properly collateralized with securities held by the pledging financial
institutions trust departments or agents in the Citys name.
63
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 4 DEPOSITS AND INVESTMENTS
A. Deposits (Continued)
As of December 31, 2015, the City had the following deposits:
City Deposits
Component Unit Deposits
Total Deposits
668,954
9,612,256
$ 10,281,210
B. Investments
As of December 31, 2015, the City held the following investments:
Years to Maturity
Less than
One Year
1-5 Years
7,238,417
9,736,175
$ 3,007,576
9,736,175
$ 4,230,841
-
1,959,795
2,378,561
5,140,434
2,525,473
12,293,375
24,671,860
759,615
210,852
500,067
2,544
332,033
499,160
1,200,180
1,682,109
2,277,535
830,275
9,238,417
24,172,700
485,600
66,193
2,722,925
-
2,296,639
1,692,654
-
65,944,090
$ 15,048,022
$ 43,632,057
$ 3,274,718
$ 3,989,293
Fair Value
Certificate of Deposit
Money Market Fund
Mortgage
FFCB
FHLB
FHLMC
FNMA
Municipal Bond
US Treasury Notes
Total Investments
5-10 Years
$
10-15 Years
$
Concentration
10.98%
14.76%
Moody's
Rating
NR
NR
2.97%
AAA
3.61%
AAA
7.80%
AAA
3.83%
NR
18.64% AAA-BAA
37.41%
AAA
100.00%
As of December 31, 2015, the component units had the following investments:
Years to Maturity
Less than
One Year
1-5 Years
Fair Value
US Agencies
U.S. Treasuries
Brokered Cash
4M Fund
Money Market Fund
Total
6,099,828
12,087,664
5,187
18,095,210
75,226
$ 36,363,115
2,201,006
3,525,898
5,187
18,095,210
75,226
$ 23,902,527
Concentration
Rating
3,898,822
8,561,766
-
16.77%
33.25%
0.01%
49.76%
0.21%
AAA
AAA
N/A
N/A
N/A
$ 12,460,588
100.00%
Custodial Credit Risk Investments: As of December 31, 2015, all investments of the City and the
component units were insured, registered and held by the City or its agent and in the Citys name, or by
the SPUC and in the SPUCs name.
Concentration of Credit Risk: As of December 31, 2015, 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, 2015.
64
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 4 DEPOSITS AND INVESTMENTS
B. Investments (Continued)
The following is a summary of total deposits and investments as of December 31, 2015:
Deposits (Note 3.A.)
City Investments
Component Unit Investments
City Petty Cash
Component Unit Petty Cash
$ 10,281,210
65,944,090
36,363,115
3,524
1,700
$ 112,593,639
Deposits and investments are presented in the December 31, 2015 basic financial statements as follows:
City
Funds
Component
Units
Total
$ 63,767,739
-
$ 32,467,135
13,509,936
$ 96,234,874
13,509,936
2,848,829
2,848,829
$ 66,616,568
$ 45,977,071
$ 112,593,639
Delinquent
Special
Assessments
Deferred
Special
Assessments
$ 145,557
29
372
5,786
855
21,701
39,975
1,599,298
3,059,926
586,801
$ 191,318
29
1,599,298
3,060,781
608,874
$ 145,958
28,342
$ 5,286,000
$ 5,460,300
Total
65
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 6 CAPITAL ASSETS
Governmental capital asset activity for the year ended December 31, 2015 was as follows:
Beginning
Balance
Governmental Activities:
Capital Assets not being
Depreciated:
Land
Right-Of-Way
Construction in Progress
Total Capital Assets
not being Depreciated
Capital Assets being
Depreciated:
Buildings
Infrastructure
Machinery and Equipment
Total Capital Assets
being Depreciated
Less Accumulated
Depreciation for:
Buildings
Infrastructure
Machinery and Equipment
Total Accumulated
Depreciation
Total Capital Assets being
Depreciated, Net
Governmental Activities Capital
Assets, Net
$ 20,782,779
253,904
2,671,223
Increases
124,326
4,068,850
Ending
Balance
Decreases
2,603,998
$ 20,907,105
253,904
4,136,075
23,707,906
4,193,176
2,603,998
25,297,084
37,813,235
141,841,376
14,841,862
501,260
2,711,215
2,730,755
1,138,603
38,314,495
144,552,591
16,434,014
194,496,473
5,943,230
1,138,603
199,301,100
11,772,662
70,370,040
7,831,125
910,741
4,693,451
945,618
971,482
12,683,403
75,063,491
7,805,261
89,973,827
6,549,810
971,482
95,552,155
167,121
103,748,945
2,771,119
$129,046,029
104,522,646
$128,230,552
(606,580)
3,586,596
186,849
635,429
4,871,404
856,128
$ 6,549,810
66
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 6 CAPITAL ASSETS
Business-type capital asset activity for the year ended December 31, 2015 was as follows:
Beginning
Balance
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
Business-Type Activities Capital
Assets, Net
3,796,803
447,746
1,716,056
Increases
195,238
Ending
Balance
Decreases
1,699,520
3,796,803
447,746
211,774
5,960,605
195,238
1,699,520
4,456,323
1,368,569
80,126,743
4,044,505
4,283,527
135,642
126,206
1,368,569
84,410,270
4,053,941
85,539,817
4,419,169
126,206
89,832,780
527,026
21,594,826
1,547,471
24,734
1,316,626
324,078
32,027
551,760
22,911,452
1,839,522
23,669,323
1,665,438
32,027
25,302,734
61,870,494
2,753,731
94,179
64,530,046
$ 67,831,099
$ 2,948,969
$ 1,793,699
$ 68,986,369
770,616
777,711
117,111
$ 1,665,438
67
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 6 CAPITAL ASSETS
Component unit capital asset activity for the year ended December 31, 2015 was as follows:
Beginning
Balance
Component Unit Capital Assets
not being Depreciated:
Land and Land Rights
Construction in Progress
Total Capital Assets
not being Depreciated
5,097,532
4,135,537
Increases
6,301,111
Ending
Balance
Decreases
2,161,845
5,097,532
8,274,803
9,233,069
6,301,111
2,161,845
13,372,335
85,335,275
13,765,585
2,161,845
417,022
194,924
89,334
87,302,196
14,093,273
99,100,860
2,578,867
284,258
101,395,469
33,693,712
2,890,536
140,763
36,443,485
143,495
64,951,984
$ 2,305,340
$78,324,319
65,407,148
$ 74,640,217
(311,669)
$
5,989,442
$ 1,738,718
1,151,818
$ 2,890,536
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 7 LONG-TERM DEBT
B. Revenue Bonds
The Commission issues Revenue Bonds for electric and water activity. Debt service is covered through
the revenue producing activities of these funds.
C. Components of Long-Term Liabilities
Issue
Date
Governmental Activities:
G.O. Bonds:
G.O. Improvement Bonds:
2006A
2007A
Interest
Rates
Original
Issue
Final
Maturity
07/01/06
4.00%
3,440,000
02/01/17
02/01/07
4.00%
1,370,000
02/01/17
Principal
Outstanding
740,000
Due Within
One Year
305,000
380,000
155,000
2007B
09/01/07
4.00%
1,445,000
02/01/18
460,000
150,000
2008A
09/01/08
3.50%-4.00%
2,170,000
02/01/19
835,000
200,000
2010A
08/01/10
0.50%-2.90%
1,555,000
02/01/21
775,000
135,000
05/01/04
2.25%-4.00%
2,275,000
02/01/17
445,000
220,000
06/14/12
1.50%-2.125%
4,865,000
02/01/25
4,655,000
8,215,000
445,000
1,685,000
1,892,822
851,770
11/21/06
4.125%-4.375%
10,570,000
02/01/30
$ 10,107,822
2,536,770
54,438
24,497
8,425,000
410,000
Unamortized Discounts
Total Component Unit Long-Term Liabilities
(9,218)
$
8,415,782
410,000
Long-term bonded indebtedness listed above were issued to finance acquisition and construction of
capital facilities or to refinance (refund) previous bond issues. For the most part, the General Fund and
the Employee Benefits Internal Service Fund are typically used to liquidate governmental compensated
absences payable. The Sewer and Storm Drainage funds are typically used to liquidate business type
compensated absences payable.
69
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 7 LONG-TERM DEBT
D. Changes in Long-Term Liabilities
Long-term liability information for the year ended December 31, 2015 was as follows.
Beginning
Balance
Governmental Activities:
Bonds Payable
Compensated Absences
Additions
Reductions
Ending
Balance
Due Within
One Year
$ 13,830,000
1,764,948
1,025,425
$ 5,615,000
897,551
$ 8,215,000
1,892,822
$ 1,685,000
851,770
$ 15,594,948
$ 1,025,425
$ 6,512,551
$ 10,107,822
$ 2,536,770
Business-Type Activities
Compensated Absences
38,568
35,678
24,497
$ 8,815,000
(9,838)
390,000
(620)
$ 8,425,000
(9,218)
410,000
-
$ 8,805,162
389,380
$ 8,415,782
410,000
51,548
54,438
Year Ending
December 31,
Principal
2016
2017
2018
2019
2020
2021-2025
$ 1,685,000
1,685,000
955,000
815,000
600,000
2,475,000
192,723
139,200
98,893
74,852
57,563
123,855
$ 1,877,723
1,824,200
1,053,893
889,852
657,563
2,598,855
$ 8,215,000
687,086
Total
Total
8,902,086
70
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 7 LONG-TERM DEBT
F. Component Unit Revenue Bonds
Debt service to maturity for outstanding revenue bonds is as follows:
Year Ending
December 31,
2016
2017
2018
2019
2020
2021-2025
2026-2030
Total
Principal
$
410,000
425,000
445,000
460,000
480,000
2,745,000
3,460,000
$ 8,425,000
354,888
337,400
318,912
299,681
279,706
1,065,259
393,750
$ 3,049,596
Total
$
764,888
762,400
763,912
759,681
759,706
3,810,259
3,853,750
$ 11,474,596
G. Refunding Bonds
In June 2012, the City issued $ 4,865,000 G.O. Improvement Refunding Bonds to refund G.O. Bonds,
Series 2004A, maturing in years 2014 through 2025 and G.O. Bonds, Series 2004D, maturing in years
2015 through 2025. The net proceeds of $ 4,951,424 were deposited with an escrow agent to provide
for the payment of the principal maturities at the call date of the refunded bonds and for the interest on
the refunding bonds through the call date. The City is responsible for the principal and interest
payments on the remaining refunded bond issues through the call date. The call date for the refunded
G.O. Bonds, Series 2004A was February 1, 2014 and the call date for the refunded G.O. Bonds, Series
2004D was February 1, 2015. The refunding resulted in reduction of future debt service payments of
$ 442,330 and a net present value savings of $ 387,886.
NOTE 8 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.
71
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 8 CONDUIT DEBT OBLIGATIONS
As of December 31, 2015, the following conduit debt was outstanding:
Project
St. Francis Regional Medical Center
Health Care Facilities Revenue Bond Series 1987
Scott County CDA Housing Development
2006D Refunding- River City Center Project
Scott County CDA Housing Development
2012A Refunding- North Ridge Court Redevelopment
Scott County CDA Housing Development
2013A Refunding- River City Center Project
Scott County CDA Housing Development
2013E Refunding- River City Center Project
Benedictine Health System Obligated Group
Health Care and Housing Facilities Revenue Refunding
Note Series 2013A
Benedictine Health System Obligated Group
Health Care and Housing Facilities Revenue Refunding
Note Series 2013B
St. Francis Regional Medical Center
Health Care Facilities Revenue Refunding Bond Series
2014
Recovery Technology Solutions Shakopee, LLC Project
Solid Waste Revenue Bond Series 2014
Total
Date of
Issue
12/23/87
Original Amount
of Issue
$
8,000,000
Balance
Outstanding
$
710,000
07/15/06
905,000
370,000
04/26/12
5,885,000
5,375,000
12/01/13
2,330,000
2,170,000
12/01/13
1,220,000
1,195,000
12/01/13
9,485,000
8,354,587
12/01/13
9,575,000
8,875,776
06/18/14
41,865,000
40,290,000
12/01/14
16,000,000
16,000,000
$ 83,340,362
72
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 9 INTERFUND ASSETS/LIABILITIES
The composition of interfund balances as of December 31, 2015 is as follows:
Receivable Fund
Internal Service Fund
Sewer Fund
Payable Fund
Amount
897,344
47,332
944,676
The due from/due to other funds balance represents borrowing to eliminate a cash deficit. This will be
repaid as funds are available.
NOTE 10 ADVANCE FROM/TO OTHER FUNDS
The composition of advance from/to other funds as of December 31, 2015 is as follows:
Receivable Fund
Sewer Fund
Internal Service Fund
Internal Service Fund
Payable Fund
Amount
Refuse Fund
Economic Development Authority
Nonmajor Governmental Funds
960,330
941,394
450,000
Total
2,351,724
The advance between the Sewer Fund and Refuse Fund represents a long term interfund loan which was
used to purchase garbage carts. This will be repaid over 10 years with revenue collected for cart usage
at rate of 1% interest. The advance between the Internal Service fund and Nonmajor Governmental
Fund represents a long term interfund loan which was used to recreate a Property Acquisition Fund.
This will be repaid over 10 years with proceeds from the sale of land or tax levy at rate of 0% interest.
The advance between the Internal Service fund and Economic Development Authority Fund represents a
long term interfund loan which was used to purchase land which will be resold. This will be repaid once
the parcels are sold or developed at rate of 0% interest.
73
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 11 INTERFUND TRANSFERS
Transfer In
Transfer Out
250,000
1,450,385
466,680
633,200
1,396,822
1,938,257
6,135,344
$ 3,515,466
633,200
150,000
846,786
5,145,452
Proprietary Funds:
Sewer Fund (1) (5) (6)
Storm Drainage Fund (1) (6)
Total Proprietary Funds
30,008
97,165
127,173
675,385
125,000
800,385
150,000
150,000
466,680
466,680
$ 6,412,517
$ 6,412,517
Governmental Funds:
General Fund (1) (2) (3) (9)
Economic Development Authority (2) (5)
2004D Building Bonds (4) (7)
2012A Refunding Bonds (7)
Capital Improvements (3) (6) (8)
Other Governmental Funds (6) (8) (10)
Total Governmental Funds
Total
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
74
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS
Public Employees' Retirement Association
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by PERA. PERA's defined benefit pension plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 ad 356. PERA's defined benefit pension plans are tax
qualified plans under Section 401(a) of the Internal Revenue Code.
General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the GERF. GERF members
belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by
Social Security and Basic Plan members are not. The Basic Plan was closed to new members in 1967.
All new members must participate in the Coordinated Plan.
Public Employees Police and Fire Fund (PEPFF)
The PEPFF, 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
PEPFF 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.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding
ratio of the plan. Members in plans that are at least 90% funded for two consecutive years are given
2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are
given 1% increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply
to active plan participants. 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.
75
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
B. Benefits Provided (Continued)
GERF Benefits
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
PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate
benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity
accrual rate for a Basic Plan member is 2.2% of average salary for each of the first ten years of service
and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of
average salary for each of the first ten years and 1.7% for each remaining year. Under Method 2, the
annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan
members for each year of service. For members hired prior to July 1, 1989, a full annuity is available
when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after
July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
Disability benefits are available for vested members, and are based upon years of service and average
high-five salary.
PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for
PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to
100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each
year of service. For PEPFF who were first hired prior to July 1, 1989, a full annuity is available when
age plus years of service equal at least 90.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state legislature.
76
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C. Contributions (Continued)
GERF Contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.50%,
respectively, of their annual covered salary in calendar year 2015. The City was required to contribute
11.78% of pay for Basic Plan members and 7.50% for Coordinated Plan members in calendar year 2015.
The City's contributions to the GERF for the year ended December 31, 2015, was $ 407,082. The City's
contributions were equal to the required contributions as set by state statute. The Commission's
contributions to the GERF for the year ended December 31, 2015, was $ 263,747. The Commission's
contributions were equal to the required contributions as set by state statute.
PEPFF Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2015.
The City was required to contribute 16.20% of pay for PEPFF members in calendar year 2015. The
City's contributions to the PEPFF for the year ended December 31, 2015, were $ 685,234. The City's
contributions were equal to the required contributions as set by state statute.
D. Pension Costs
GERF Pension Costs
At December 31, 2015, the City reported a liability of $ 4,819,743 for its proportionate share of the
GERF's net pension liability. The net pension liability was measured as of June 30, 2015, 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 proportion 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, 2014, through
June 30, 2015, relative to the total employer contributions received from all of PERA's participating
employers. At June 30, 2015, the City's proportion was 0.0930%.
For the year ended December 31, 2015, the City recognized pension expense of $ 539,115 for its
proportionate share of GERF's pension expense.
At December 31, 2015, the City reported its proportionate share of GERF's deferred outflows of
resources and deferred inflows of resources, and its contributions subsequent to the measurement date,
from the sources on the following page.
77
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Deferred
Outflows of
Resources
Differences between expected and actual economic experience
Difference between projected and actual investment earnings
Changes in proportion
Contributions paid to PERA subsequent to the measurement date
Total
Deferred
Inflows of
Resources
456,263
203,541
242,997
310,035
-
659,804
553,032
$ 203,541 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, 2016. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as follows:
Year Ending
December 31,
2016
2017
2018
2019
(70,278)
(70,278)
(70,278)
114,065
78
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
For the year ended December 31, 2015, the City recognized pension expense of $ 967,378 for its
proportionate share of the PEPFF's pension expense. The City also recognized $ 42,480 for the year
ended December 31, 2015, as pension expense (and grant revenue) for its proportionate share of the
State of Minnesota's on-behalf contributions to the PEPFF. Legislation passed in 2013 required the State
of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014.
At December 31, 2015, the City reported its proportionate share of the PEPFF's deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Differences between expected and actual economic experience
$
Difference between projected and actual investment earnings
Changes in proportion
Contributions paid to PEPFF subsequent to the measurement date
Total
Deferred Inflows
of Resources
934,418
216,008
342,617
869,707
-
1,493,043
869,707
$ 342,617 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, 2016. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as follows:
Year Ending
December 31,
2016
2017
2018
2019
2020
102,866
102,866
102,866
102,866
(130,745)
79
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Deferred
Inflows of
Resources
298,288
138,611
158,862
179,679
-
436,899
338,541
$ 138,611 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, 2016. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense on the following page.
80
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Year Ending
December 31,
2016
2017
2018
2019
(38,275)
(38,275)
(38,275)
74,572
E. Actuarial Assumptions
The total pension liability in the June 30, 2015, actuarial valuation was determined using the entry age
normal actuarial cost method and the following actuarial assumptions:
Inflation
Active member payroll growth
Investment rate of return
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants were based on RP-2000 tables for males or females, as appropriate, with
slight adjustments. Benefit increases for retirees are assumed to be 1% effective every January 1st
through 2026 and 2.5% thereafter.
Actuarial assumptions used in the June 30, 2015, valuation were based on the results of actuarial
experience studies. The experience study in the GERF was for the period July 1, 2004 through June 30,
2008, with an update of economic assumptions in 2014. Experience studies have not been prepared for
PERA's other plans, but assumptions are reviewed annually.
The long-term expected rate of return on pension plan investments is 7.9%. The State Board of
Investment, which manages the investments of PERA, prepares an analysis of the reasonableness of the
long-term expected rate of return on a regular basis using a building-block method in which bestestimate 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 arithmetic real rates of return for each major asset class are
summarized in the table on the following page.
81
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions (Continued)
Asset Class
Target Allocation
Domestic stocks
International stock
Bonds
Alternative assets
Cash
45%
15%
18%
20%
2%
Total
Long-Term
Expected Real
Rate of Return
5.50 %
6.00
1.45
6.40
0.50
100%
F. Discount Rate
The discount rate used to measure the total pension liability was 7.9%. The projection of cash flows
used to determine the discount rate assumed that employee and employer contributions will be made at
the rates specified in statute. Based on those assumptions, each of the pension plan's fiduciary net
position was projected to be available to make all projected future benefit payments of current active and
inactive employees. 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.
G. Pension Liability Sensitivity
The following table 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 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in
Discount Rate
(6.9%)
Discount Rate
(7.9%)
1% Increase in
Discount Rate
(8.9%)
7,578,349
4,819,743
2,541,558
10,452,591
5,363,024
1,158,156
4,954,447
3,150,972
1,661,578
82
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
H. Pension Plan Fiduciary Net Position
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; by writing to PERA at 60 Empire Drive
#200, St. Paul, Minnesota, 55103-2088; or by calling (651) 296-7460 or 1-800-652-9026.
Defined Contribution Plan
Four Council Members of the City are covered the Public Employees Defined Contribution Plan
(PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP 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 5% of salary which is matched by the
elected official's employer. For ambulance service personnel, employer contributions are determined by
the employer, and for salaried employees must be a fixed percentage of salary. 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% of employer contributions and twenty-five hundredths of 1% (.0025) of the assets in
each member's account annually.
Total contributions made by the City during fiscal year 2015 were:
Contribution Amount
Employee
Employer
$
2,250
2,250
Required Rate
5%
5%
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan Volunteer Fire Fighter's Relief Association (Continued)
A. Plan Description (Continued)
The Association issues a publicly available financial report that includes financial statements and
required supplementary information. That report may be obtained by writing to Shakopee Fire Relief
Association, 129 Holmes Street South, Shakopee, Minnesota 55379 or by calling 952-233-9570.
B. Benefits Provided
Volunteer firefighters of the City are members of the Shakopee Fire Fighter's Relief Association. Full
retirement benefits are payable to members who have reached age 50 and have completed 20 years of
service for lump sum service pension. Partial benefits are payable to members who have reached 50 and
have completed 5 years of service. Disability benefits and widow and children's survivor benefits are
also payable to members or their beneficiaries based upon requirements set forth in the bylaws.
These benefit provisions and all other requirements are consistent with enabling state statutes.
C. Employees Covered by Benefit Terms
At December 31, 2014, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active Employees
Total
0
14
44
58
D. Contributions.
Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The
minimum support rates from the municipality and from State aids are determined as the amount required
to meet the normal cost plus amortizing any existing prior service costs over a ten year period. The
City's obligation is the financial requirement for the year less state aids. Any additional payments by the
City shall be used to amortize the unfunded liability of the relief association. The Association is
comprised of volunteers: therefore, there are no payroll expenditures (i.e. there are no covered payroll
percentage calculations). During the year, the City recognized as revenue and as an expenditure an on
behalf payment of $ 244,626 made by the State of Minnesota for the Relief Association.
E. Net Pension Liability
The City's net pension liability was measured as of December 31, 2014, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that date.
84
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan Volunteer Fire Fighter's Relief Association (Continued)
E. Net Pension Liability (Continued)
Actuarial assumptions.
The total pension liability in the December 31, 2014, actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation
Salary increase
Investment rate of return
2.75 %
0.00 %, average, including inflation
6.00 %, net of pensions plan investment expense:
including inflation
Target
Allocation
Long-Term Expected
Real Rate of Return
Domestic Equity
International Equity
Fixed Income
Real Estate and Alternatives
Cash and Equivalents
59.99%
12.68%
13.18%
1.32%
12.83%
5.25%
5.25%
1.75%
3.75%
0.25%
Total
100.00%
Discount rate.
The discount rate used to measure the total pension liability was 6.00 %. Assets were projected using
expected benefit payments and expected asset returns. Expected benefit payments by year were
discounted using the expected asset return assumption for years in which the assets were sufficient to
pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are
discounted at the municipal bond rate. The equivalent single rate is the discount rate.
85
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan Volunteer Fire Fighter's Relief Association (Continued)
F. Changes in the Net Pension Liability
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) - (b)
$ 3,903,491
$ 5,135,900
$ (1,232,409)
135,715
224,377
341,036
315,532
(341,036)
(315,532)
(599,181)
(10,897)
-
10,897
-
(599,181)
-
Net Changes
$ (239,089)
46,490
$ 3,664,402
$ 5,182,390
135,715
224,377
(285,579)
$ (1,517,988)
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net
pension liability of the City, calculated using the discount rate disclosed on the proceeding page, as well
as what the City's net pension liability would be if it were calculated using a discount rate that is 1percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in
Discount Rate
(5%)
City's proportionate share of
the Relief net pension asset
1,400,355
Current
Discount Rate
(6%)
$
1,517,988
1% Increase in
Discount Rate
(7%)
$
1,630,278
86
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 12 PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan Volunteer Fire Fighter's Relief Association (Continued)
F. Changes in the Net Pension Liability (Continued)
Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position
is available in the separately issued relief association financial report.
G. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended December 31, 2014, the City recognized pension expense of $ 67,816. At December
31, 2014, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred
Outflows of
Resources
Contributions paid subsequent to the measurement date
Net Difference Between Projected and Actual Earnings on
Pension Plan Investments
Deferred
Inflows of
Resources
243,626
Total
243,626
12,359
12,359
$243,626 reported as deferred outflows of resources related to pensions resulting from State contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended December 31, 2016. Amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ending
December 31,
2016
2017
2018
2019
(3,090)
(3,090)
(3,090)
(3,089)
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 13 POST EMPLOYMENT HEALTH BENEFITS PLAN
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 Citys 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.
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 2015, the City contributed $ 69,166 to the plan. As
of January 1, 2015, there were six retirees and two disabled officers receiving health benefits from the
Citys health plan. For the most part, the General Fund and the Employee Benefits Internal Service
Fund are typically used to liquidate net other post employment benefit obligations.
C. Annual OPEB Cost and Net OPEB Obligation
The Citys annual OPEB cost (expense) is calculated based on the annual required contribution (ARC)
of the City, an amount actuarially determined in accordance with the parameters of GASB Statement
No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period
not to exceed 30 years. The following table shows the components of the Citys annual OPEB cost of
the year, the amount actually contributed to the plan, and changes in the Citys net OPEB obligation to
the plan.
ARC
Interest on Net OPEB Obligation
Adjustment to ARC
Annual OPEB Cost (Expense)
Contribution Made
Increase in Net OPEB Obligation
Net OPEB Obligation - Beginning of Year
259,494
49,739
(71,911)
237,322
(69,166)
168,156
1,243,484
1,411,640
The Citys annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for 2015 was as follows:
Fiscal Year
End
12/31/15
12/31/14
12/31/13
Annual OPEB
Cost
Employer
Contribution
237,322
231,421
225,363
69,166
55,738
45,522
Percentage of
Annual OPEB
Cost Contributed
Net OPEB
Obligation
29%
24%
20%
$ 1,411,640
1,243,484
1,067,801
88
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 13 POST EMPLOYMENT HEALTH BENEFITS PLAN
D. Funded Status and Funding Progress
As of January 1, 2013, the most recent actuarial valuation date, the City had no assets deposited to fund
the plan. The actuarial accrued liability for benefits was $ 1,938,082 and the actuarial value of assets was
$ 0, resulting in an unfunded actuarial accrued liability (UAAL) of $ 1,938,082. The covered payroll
(annual payroll of active employees covered by the plan) was $ 8,738,120 and the ratio of the UAAL to
the covered payroll was 22.2%.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality and the health care cost trend. Amounts determined regarding the funded status
of the plan and the ARC of the employer are subject to continual revision as actual results are compared
with past expectations and new estimates are made about the future.
The Schedule of Funding Progress Other Post Employment Benefits, presented as required
supplementary information following the Notes to the Financial Statements, presents multi-year trend
information about whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liabilities for benefits.
E. 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.
In the January 1, 2013 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 4.0 % discount rate, which is based on the investment yield expected to
finance benefits depending on whether the plan is funded in a separate trust (about 7.0% to 8.5%, longterm, similar to a pension plan) or unfunded (3.5% to 5.0%, shorter-term, based on Citys general
assets). The City currently does not fund this benefit. At the actuarial valuation date, the annual health
care cost trend rate was calculated to be 8% initially, reduced incrementally to an ultimate rate of 5%
after six years. Both rates included a 3.0% inflation assumption. The UAAL is being amortized as a
level percentage of payroll on an open basis. The remaining amortization period at December 31, 2015
was 29 years.
NOTE 14 SEGMENT INFORMATION
The City maintains three enterprise funds that account for the sewer, storm drainage and refuse utilities.
The City considers each of its enterprise funds to be a segment. Since the required segment information
is already included in the Citys proprietary funds Balance Sheet and Statement of Revenues, Expenses
and Changes in Fund Net Position balances, this information has not been repeated in the Notes to the
Financial Statements.
89
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 15 FUND BALANCE DETAIL
Fund equity balances are classified as follows to reflect the limitations and restrictions of the respective
funds.
Economic
Development
Authority
General
Fund
Nonspendable:
Prepaid Items
21,573
2012
Refunding
Bond
$
Capital
Improvements
Community
Center/ Ice
Arena
Other
Governmental
Funds
Total
21,573
Restricted:
Forfeitures
SCDP Grant
Revolving Loans
Economic Development
Debt Service
Capital Improvements
Total Restricted
674,910
674,910
1,289,479
1,289,479
180,555
4,683
260,865
1,795,678
1,425,798
3,667,579
180,555
4,683
260,865
674,910
3,085,157
1,425,798
5,631,968
Assigned:
Telecommunications
Capital Improvements
Total Assigned
6,130,194
6,130,194
108,627
1,505,595
1,614,222
108,627
7,635,789
7,744,416
9,818,537
(1,676,076)
674,910
$ 1,289,479
$ 6,130,194
$ (1,676,076)
Unassigned:
Total Fund Balance
$ 9,840,110
(39,026)
8,103,435
$ 5,242,775
$ 21,501,392
NOTE 16 COMMITTMENTS
Project
Authorization
Garbage Truck
Tahpah Park Lighting
Quarry Lake Park Pedestrian Bridge
2015 Street Reconstruction
2015 Sanitary Sewer Lateral Pipe Rehabilitation
Patterson Drive Storm Sewer Improvements
Crossing Blvd
City Hall
Ice Arena/Community Center Improvements
58,827
57,000
167,312
2,167,423
606,316
171,701
33,170
360,000
25,445,623
Work
Completed
$
51,300
2,068,907
534,886
161,715
24,373
163,554
1,302,075
12/31/2015
Commitment
$
58,827
5,700
167,312
98,516
71,430
9,985
8,797
196,446
24,143,548
90
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 17 RISK MANAGEMENT
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 ranges from $ 2,500 to $ 5,000 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,
$ 1,500,000 for automobile coverage, $ 1,000,000 faithful performance employee bonding and
$ 1,000,000 for universal umbrella coverage. Property coverage is at approximately $ 119,900,000.
NOTE 18 SPECIAL ITEMS
On September 9, 2014 the City signed an agreement with the Minnesota Valley Transit Authority
(MVTA) to consolidate public transit services. Transit service consolidation was to take place as of
January 1, 2015. As specified in the agreement, as of August 15, 2015 the City was required to transfer
any remaining transit fund balance to MVTA, which totaled $634,070.
NOTE 19 SUBSEQUENT EVENTS
The City approved to issue G.O. Tax Abatement Bonds, Series 2016A for the construction of the ice
arena and city hall remodel. The sale date is set for January 21, 2016 and the bonds will be
approximately $29,500,000.
An agreement dated April 14, 2016 has been executed with respect to the prepayment of the Solid Waste
Revenue Bonds (Recovery Technology Solutions Shakopee, LLC Project), Series 2014 issued on
December 16, 2014 in the original principal amount of $16,000,000. As of March 24, 2016, the
Company has not fully completed the Project as contemplated by the Lease Agreement because the
Company has been unable to satisfy certain thresholds set forth in the Lease Agreement that needed to
be met before additional draws of principal on the Bonds could occur. Due to the inability to complete
the Project and the condition of the oil markets, the Company has determined to sell the Site and the
Facility and use the proceeds to redeem the outstanding Bonds. The Bonds are subject to optional
redemption on January 1, 2021. However, the holder of one hundred percent of the Bonds has agreed to
the sale of the Site and the Facility and the early redemption of the Bonds. As a result the Recovery
Technology Solutions Shakopee, LLC Project Solid Waste Revenue Bonds Series 2014 have no
outstanding balance as of the date of the agreement.
On May 17, 2016 the City approved bids for construction of a new city hall. The total construction cost
is estimated to be approximately $ 8,400,000.
91
CITY OF SHAKOPEE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2015
NOTE 20 CHANGE IN ACCOUNTING PRINCIPLE
For the year ended December 31, 2015, the City implemented GASB Statement No. 68, Accounting and
Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions
Made Subsequent to the Measurement Date. This resulted in an adjustment to the beginning net position
on the Statement of Activities of $ 7,551,417 to add the beginning net pension liability, and an
adjustment to the beginning net position on the Statement of Revenues, Expenses and Changes in Fund
Net Position Proprietary Funds of $ 306,917 to add the beginning net pension liability, and an
adjustment to the beginning Statement of Net Position Component Unit - SPUC of $ 2,967,576 to add
the beginning net pension liability.
NOTE 21 PRIOR PERIOD ADJUSTMENT
A prior period adjustment was required between two governmental funds to move assessments revenue
on assessment 271300 and 271301 to the 2012A Refunding Bonds Debt Service. This resulted in an
increase in assessment revenue in the 2012A Refunding Bonds Debt Service and a decrease in
assessment revenue in the Capital Improvements Capital Project Fund in the amount of $171,082.
NOTE 22 NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB has issued GASB Statement No. 75, Accounting and Financial Reporting for Postemployment
Benefits other than Pensions. The new statement requires governments in all types of OPEB plans to
present more extensive note disclosures and required supplementary information (RSI) about OPEB
liabilities.
92
93
CITY OF SHAKOPEE
SCHEDULE OF FUNDING PROGRESS - OTHER POST EMPLOYMENT BENEFITS
December 31, 2015
Actuarial
Valuation
Date
01/01/08
01/01/09
01/01/10
01/01/11
01/01/12
01/01/13
01/01/14
01/01/15
*
*
*
*
*
Actuarial
Value of
Assets
(a)
Actuarial
Accrued Liability
(AAL) Entry Age
(b)
1,887,961
1,887,961
1,483,810
1,483,810
1,483,810
1,938,082
1,938,082
1,938,082
Unfunded
AAL
(UAAL)
(b-a)
Funded
Ratio
(a/b)
Covered
Payroll
(c )
UAAL as a
Percentage of
Covered
Payroll
((b-a)/c)
$ 1,887,961
1,887,961
1,483,810
1,483,810
1,483,810
1,938,082
1,938,082
1,938,082
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
$ 6,652,669
6,652,669
7,154,161
7,154,161
7,154,161
8,738,120
8,738,120
8,738,120
28.4%
28.4%
20.7%
20.7%
20.7%
22.2%
22.2%
22.2%
Because an actuarial valuation is being performed once every three years, the amounts for
the 01/01/08 and 01/01/09, and the 01/01/10, 01/01/11 and 01/01/12,and the 01/01/13, 01/01/14
and 01/01/15 valuation are the same.
94
CITY OF SHAKOPEE
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
LAST 10 YEARS GERF RETIREMENT FUND
City's
Proportion
of the Net
Pension
Liability
0.0930%
City's
Proportionate
Share of the
Net Pension
Liability
$ 4,819,743
City's CoveredEmployee
Payroll
$ 5,373,627
City's Proportionate
Share of the Net
Pension Liability as
a Percentage of its
Covered Payroll
89.69%
Net Position as a
Percentage of
the Total
Pension
Liability
78.19%
* Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after.
95
CITY OF SHAKOPEE
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
LAST 10 YEARS PEPFF RETIREMENT FUND
City's
Proportion
of the Net
Pension
Liability
0.4720%
City's
Proportionate
Share of the
Net Pension
Liability
$ 5,363,024
City's CoveredEmployee
Payroll
$ 4,199,481
City's Proportionate
Share of the Net
Pension Liability as
a Percentage of its
Covered Payroll
127.71%
Net Position as a
Percentage of
the Total
Pension
Liability
86.61%
* Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after.
96
CITY OF SHAKOPEE
SCHEDULE OF COMPONENT UNIT'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
LAST 10 YEARS GERF RETIREMENT FUND
Commission's
Proportion of
the Net
Pension
Liability
0.0608%
Commission's
Proportionate
Share of the
Net Pension
Liability
$ 3,150,972
Commission's
CoveredEmployee
Payroll
$ 3,516,627
Commission's
Proportionate
Share of the Net
Pension Liability
as a Percentage of
its Covered
Payroll
89.60%
Plan Fiduciary
Net Position as a
Percentage of
the Total
Pension
Liability
78.19%
* Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after.
97
CITY OF SHAKOPEE
SCHEDULE OF CITY CONTRIBUTIONS
LAST 10 YEARS GERF RETIREMENT FUND
Statutorily
Required
Contribution
$
403,022
Contributions
in Relation to
the Statutorily
Required
Contributions
$
403,022
Contribution
Deficiency
(Excess)
$
-
City's CoveredEmployee
Payroll
$
5,373,627
Contributions
as a Percentage
of Covered
Employee
Payroll
7.50%
* Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after.
98
CITY OF SHAKOPEE
SCHEDULE OF CITY CONTRIBUTIONS
LAST 10 YEARS PEPFF RETIREMENT FUND
Statutorily
Required
Contribution
$
680,316
Contributions
in Relation to
the Statutorily
Required
Contributions
$
680,316
Contribution
Deficiency
(Excess)
$
-
City's CoveredEmployee
Payroll
$
4,199,481
Contributions
as a Percentage
of Covered
Employee
Payroll
16.20%
* Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after.
99
CITY OF SHAKOPEE
SCHEDULE OF COMPONENT UNIT CONTRIBUTIONS
LAST 10 YEARSGERF RETIREMENT FUND
Statutorily
Required
Contribution
$
263,747
Contributions
in Relation to
the Statutorily
Required
Contributions
$
263,747
Contribution
Deficiency
(Excess)
$
-
Commission's
CoveredEmployee
Payroll
$
3,516,627
Contributions
as a Percentage
of Covered
Employee
Payroll
7.50%
* Schedule is to be provided prospectively beginning with the City's fiscal year ended June 30, 2015, or after.
100
CITY OF SHAKOPEE
SCHEDULE OF CHANGES IN NET PENSION LIABILITY
AND RELATED RATIOS - FIRE RELIEF ASSOCIATION
2014
Total Pension Liability (TPL)
Service cost
Interest
Differenced between expected and actual experience
Changes of assumptions
Changes of benefit terms
Benefit payments, including refunds or member contributions
Net change in total pension liability
135,715
224,377
(599,181)
(239,089)
Beginning of year
$ 3,903,491
End of year
$ 3,664,402
341,036
315,532
(599,181)
(10,897)
46,490
5,135,900
$ 5,182,390
$ (1,517,988)
The City implemented the Provisions of Governmental Accounting Standards Board Statement No.
68 for the year ended December 31, 2015. The schedules within the Required Supplementary
Information section required a ten-year presentation, but does not required retroactive reporting.
Information prior to 2014 is not available.
101
CITY OF SHAKOPEE
SCHEDULE OF CITY CONTRIBUTIONS AND NON-EMPLOYER
CONTRIBUTING ENTITIES - FIRE RELIEF ASSOCIATION
Actuarial
Determined
Contribution
$
113,868
Actual
Contributions
Paid
$
113,868
Contribution
Deficiency
(Excess)
$
-
2% State Aid
$
227,168
The Association implemented the Provisions of Governmental Accounting Standards Board Statement
No. 68 for the year ended December 31, 2015. The schedules within the Required Supplementary
Information section required a ten-year presentation, but does not required retroactive reporting.
Information prior to 2014 is not available.
102
SUPPLEMENTARY INFORMATION
103
CITY OF SHAKOPEE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GENERAL FUND
For the Year Ended December 31, 2015
Budget
Original
REVENUES
Property Taxes
General Property Taxes
Fiscal Disparities
Lodging Tax
Aggregate Tax
Total Property Taxes
$ 13,925,000
1,900,000
325,000
13,000
16,163,000
Special Assessments
Actual
Amounts
Final
13,925,000
1,900,000
325,000
13,000
16,163,000
14,057,013
1,729,530
354,384
19,148
16,160,075
Variance with
Final Budget Over (Under)
132,013
(170,470)
29,384
6,148
(2,925)
11,500
11,500
12,043
543
1,348,300
1,348,300
2,023,436
675,136
Intergovernmental Revenues
Federal Grants
PERA Aid
Police Aid
Fire Aid
State Grants
Other Grants and Aids
Total Intergovernmental Revenues
18,000
18,000
300,000
223,893
466,500
2,000
1,028,393
18,000
18,000
300,000
223,893
466,500
2,000
1,028,393
27,889
18,170
362,890
241,626
668,791
37,367
1,356,733
9,889
170
62,890
17,733
202,291
35,367
328,340
2,057,525
532,750
385,500
1,074,925
4,050,700
2,057,525
532,750
385,500
1,074,925
4,050,700
2,091,248
711,426
571,216
1,078,525
4,452,415
33,723
178,676
185,716
3,600
401,715
251,000
251,000
7,093
(243,907)
150,000
2,550
9,500
89,950
252,000
23,104,893
150,000
2,550
9,500
89,950
252,000
23,104,893
110,785
18,992
9,096
180,618
319,491
24,331,286
(39,215)
16,442
(404)
90,668
67,491
1,226,393
213,970
1,389,590
453,690
1,200,890
514,605
480,580
259,500
4,512,825
213,970
1,324,990
453,690
1,200,890
514,605
480,580
259,500
4,448,225
207,377
1,096,915
384,513
1,123,583
476,926
420,552
151,446
21,800
3,883,112
(6,593)
(228,075)
(69,177)
(77,307)
(37,679)
(60,028)
(108,054)
21,800
(565,113)
104
CITY OF SHAKOPEE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GENERAL FUND
For the Year Ended December 31, 2015
Budget
Original
Actual
Amounts
Final
Variance with
Final Budget Over (Under)
EXPENDITURES (Continued)
Public Safety
Current:
Police
Fire
Building Inspection
Capital Outlay
Total Public Safety
7,216,226
1,907,846
731,672
9,855,744
7,216,226
1,972,446
731,672
9,920,344
7,408,174
2,096,522
645,720
76,875
10,227,291
191,948
124,076
(85,952)
76,875
306,947
Public Works
Current:
Engineering
Streets
Shop
Total Public Works
723,090
2,110,568
404,685
3,238,343
723,090
2,110,568
404,685
3,238,343
642,942
2,001,289
392,053
3,036,284
(80,148)
(109,279)
(12,632)
(202,059)
1,612,994
138,660
2,507,101
1,500
4,260,255
1,612,994
138,660
2,507,101
1,500
4,260,255
1,572,214
106,458
2,210,406
27,991
3,917,069
(40,780)
(32,202)
(296,695)
26,491
(343,186)
21,867,167
21,867,167
21,063,756
(803,411)
1,237,726
1,237,726
3,267,530
2,029,804
250,000
(1,900,000)
(1,650,000)
250,000
(1,900,000)
(1,650,000)
250,000
(3,515,466)
(3,265,466)
(1,615,466)
(1,615,466)
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
(412,274)
(412,274)
2,064
FUND BALANCES
Beginning of Year
End of Year
414,338
9,838,046
$
9,840,110
105
CITY OF SHAKOPEE
COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS
December 31, 2015
Special Revenue
Forfeitures
ASSETS
Cash and Investments
Delinquent Taxes Receivable
Special Assessments Receivable:
Delinquent
Deferred
Accounts Receivable
Interest Receivable
Land Held for Resale
Total Assets
Telecommunication
206,937
868
207,805
22,436
4,814
27,250
100,333
7,872
422
108,627
SCDP Grant
$
4,663
20
4,683
180,555
180,555
108,627
108,627
4,683
4,683
207,805
108,627
4,683
106
Special Revenue
Revolving Loan
$
259,775
1,090
260,865
Debt Service
2004B
Refunding
Bonds
Total
$
571,708
7,872
2,400
581,980
22,436
4,814
27,250
221,295
372
928
222,595
200
200
2006A
Improvement
Bonds
$
453,632
15,784
1,903
471,319
200
(4)
196
2007A
Improvement
Bonds
$
296,847
21,397
307,418
322
625,984
200
(1,287)
(1,087)
2007B
Improvement
Bonds
$
211,574
304
16,699
571
229,148
200
200
372
372
15,784
15,784
328,815
328,815
17,003
17,003
260,865
260,865
446,103
108,627
554,730
222,023
222,023
455,339
455,339
298,256
298,256
211,945
211,945
260,865
581,980
222,595
471,319
625,984
229,148
107
CITY OF SHAKOPEE
COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS
(Continued)
December 31, 2015
Debt Service
2008A
Improvement
Bonds
ASSETS
Cash and Investments
Delinquent Taxes Receivable
Special Assessments Receivable:
Delinquent
Deferred
Accounts Receivable
Interest Receivable
Land Held for Resale
Total Assets
400,219
152,319
1,008
553,546
200
200
2010A
Improvement
Bonds
$
206,421
94,581
867
301,869
200
200
Total
$
1,789,988
372
21,701
586,801
5,599
2,404,461
1,200
(1,291)
(91)
152,319
152,319
94,581
94,581
372
608,502
608,874
Fund Balances
Restricted for:
Special Revenue
Debt Service
Capital Projects
Assigned
Unassigned
Total Fund Balances
401,027
401,027
207,088
207,088
1,795,678
1,795,678
553,546
301,869
2,404,461
108
Capital Projects
Park Reserve
$
1,471,518
3,081
6,173
1,480,772
100,079
26
100,105
1,480,772
95
22,669
1,100
29,359
30,459
1,380,667
1,380,667
22,574
-
(7,790)
(7,790)
22,669
1,750
1,750
500
1,250
1,750
500
500
500
500
27,021
113
27,134
500
500
7,046
29
7,075
500
500
26,634
26,634
6,575
6,575
1,750
500
27,134
7,075
109
CITY OF SHAKOPEE
COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS
(Continued)
December 31, 2015
Capital Projects
Road
Expansion
Dedication
Datacard
Abatement
ASSETS
Cash and Investments
Delinquent Taxes Receivable
Special Assessments Receivable:
Delinquent
Deferred
Accounts Receivable
Interest Receivable
Land Held for Resale
Total Assets
11,872
50
11,922
Lions Park
93,152
390
93,542
9,886
42
9,928
11,922
11,922
93,542
93,542
9,928
9,928
11,922
93,542
9,928
110
Capital Projects
Tree
Replacement
$
207,169
869
208,038
24
560
584
Property
Acquisition
Fund
Sealcoat
$
141
33,560
310,834
1,304
106,626
418,764
Total
1,182,912
767
1,183,679
450,000
450,000
22,568
22,568
207,454
207,454
33,560
33,560
208,038
33,419
-
City Hall
33,560
(31,236)
(31,236)
418,764
1,183,679
3,379,653
3,081
9,973
106,626
3,499,333
125,771
31,195
450,000
606,966
1,161,111
1,161,111
Total
Governmental
Funds
3,499,333
21,701
586,801
10,953
17,972
106,626
6,485,774
149,407
34,718
450,000
634,125
372
608,502
608,874
1,425,798
1,505,595
(39,026)
2,892,367
5,741,349
372
446,103
1,795,678
1,425,798
1,614,222
(39,026)
5,242,775
6,485,774
111
CITY OF SHAKOPEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - NON MAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2015
Special Revenue
Forfeitures
REVENUES
Property Taxes
Tax Increment
Special Assessments
Licenses and Permits
Charges for Services
Fines and Forfeitures
Miscellaneous
Total Revenues
EXPENDITURES
Current
General Government
Public Safety
Culture and Recreation
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)
Special Items
Net Change in Fund Balances
FUND BALANCES
Beginning of Year, as Previously Stated
End of Year
Transit
52,763
12,535
65,298
1,848
1,848
31,146
1,139
32,285
SCDP Grant
$
56
56
59,323
-
3,025
-
59,323
3,025
5,975
(1,177)
32,285
56
(634,070)
5,975
(635,247)
32,285
56
635,247
76,342
4,627
174,580
$
Telecommunication
180,555
108,627
4,683
112
Special Revenue
Revolving
Loan
$
Total
3,264
3,264
31,146
52,763
18,842
102,751
200,000
856
200,856
51,174
3,513
54,687
343,215
51,838
1,980
397,033
2007A
Improvement
Bonds
$
27,983
535
28,518
3,025
59,323
-
62,348
215,000
25,925
240,925
260,000
17,921
277,921
370,000
40,600
410,600
155,000
18,900
173,900
3,264
40,403
(40,069)
(223,234)
(13,567)
(145,382)
(332,791)
220,000
-
(332,791)
220,000
(634,070)
3,264
(593,667)
257,601
$
Debt Service
2006A
2004C
Improvement
Improvement
Bonds
Bonds
2004B
Refunding
Bonds
260,865
1,148,397
$
554,730
(40,069)
(556,025)
(13,567)
74,618
262,092
556,025
468,906
223,638
222,023
455,339
298,256
113
CITY OF SHAKOPEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - NON MAJOR GOVERNMENTAL FUNDS
(Continued)
For the Year Ended December 31, 2015
2007B
Improvement
Bonds
REVENUES
Property Taxes
Tax Increment
Special Assessments
Licenses and Permits
Charges for Services
Fines and Forfeitures
Miscellaneous
Total Revenues
EXPENDITURES
Current
General Government
Public Safety
Culture and Recreation
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)
Special Items
Net Change in Fund Balances
FUND BALANCES
Beginning of Year, as Previously Stated
End of Year
92,052
10,336
907
103,295
Debt Service
2010A
2008A
Improvement
Improvement
Bonds
Bonds
$
97,481
2,219
99,700
37,023
2,228
39,251
Total
$
635,267
275,835
12,238
923,340
150,000
24,900
174,900
200,000
40,750
240,750
190,000
23,423
213,423
1,540,000
192,419
1,732,419
(71,605)
(141,050)
(174,172)
75,466
-
160,000
-
455,466
(332,791)
75,466
160,000
122,675
3,861
18,950
(174,172)
208,084
382,077
381,260
211,945
401,027
207,088
(809,079)
(686,404)
2,482,082
$
1,795,678
114
Capital Projects
Park Reserve
$
934,456
3,430
24,708
962,594
TIF District
No. 10
$
11,208
(37)
11,171
TIF District
No. 13
34
34
TIF District
No. 14
3,458
126
3,584
281,175
106
281,281
TIF District
No. 15
$
110,730
4
110,734
13,923
2,883
7,258
254,052
101,276
846,363
846,363
1,200
15,123
2,883
7,258
254,052
101,276
116,231
(3,952)
(2,849)
(3,674)
27,229
9,458
150,000
(513,995)
(363,995)
27,229
9,458
(247,764)
1,628,431
$
TIF District
No. 12
1,380,667
(3,952)
(2,849)
(3,674)
(3,838)
2,849
3,674
(7,790)
(595)
$
26,634
(2,883)
$
6,575
115
CITY OF SHAKOPEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - NON MAJOR GOVERNMENTAL FUNDS
(Continued)
For the Year Ended December 31, 2015
Capital Projects
Road
Expansion
Dedication
Lions Park
Datacard
Abatement
REVENUES
Property Taxes
Tax Increment
Special Assessments
Licenses and Permits
Charges for Services
Fines and Forfeitures
Miscellaneous
Total Revenues
EXPENDITURES
Current
General Government
Public Safety
Culture and Recreation
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)
Special Items
Net Change in Fund Balances
FUND BALANCES
Beginning of Year, as Previously Stated
End of Year
23,620
99
23,719
1,169
1,169
Tree
Replacement
132
132
112,000
2,938
114,938
11,809
1,000
-
1,464
-
11,809
1,000
1,464
11,910
1,169
11,910
1,169
12
92,373
11,922
93,542
(868)
113,474
(868)
113,474
10,796
$
9,928
93,980
$
207,454
116
Capital Projects
Property
Acquisition
Fund
City Hall
Sealcoat
$
7,656
7,656
5,120
5,120
Total Other
Governmental
Funds
Total
(22)
(22)
23,620
406,571
934,456
3,430
112,000
42,033
1,522,110
658,887
406,571
275,835
965,602
3,430
164,763
73,113
2,548,201
41,350
2,464
432,551
3,025
59,323
2,464
432,551
41,350
171,658
171,658
1,200
1,018,021
1,454,236
1,540,000
193,619
1,018,021
3,249,003
7,656
(36,230)
(171,680)
67,874
(700,802)
1,332,791
-
1,482,791
(513,995)
1,938,257
(846,786)
1,332,791
968,796
1,091,471
(634,070)
1,161,111
1,036,670
(243,401)
1,855,697
7,656
(36,230)
25,904
4,994
33,560
(31,236)
1,161,111
2,892,367
5,486,176
$
5,242,775
117
CITY OF SHAKOPEE
COMBINING STATEMENT OF FUND NET POSITION INTERNAL SERVICE FUNDS
December 31, 2015
ASSETS
Current Assets
Cash and Investments, Including
Cash Equivalents
Interest Receivable
Due from Other Funds
Due from Other Governments
Total Current Assets
Equipment
Buildings
Park Asset
$ 4,900,827
20,560
4,921,387
$ 4,794,046
23,879
897,344
5,715,269
$ 2,081,738
8,734
497
2,090,969
941,394
450,000
124,326
273,301
3,325,376
3,313,294
3,553,004
10,589,301
(3,994,228)
6,595,073
6,595,073
Noncurrent Assets
Advances to Other Funds, Noncurrent
Capital Assets:
Land
Construction in Progress
Infrastructure
Buildings
Machinery and Equipment
Total Cost
Less Accumulated Depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
LIABILITIES AND NET POSITION
Current Liabilities
Accounts Payable
Contracts Payable
Current Compensated Absences
Total Current Liabilities
Noncurrent Liabilities
Compensated Absences
Total Noncurrent Liabilities
Total Liabilities
Net Position
Investment in Capital Assets
Unrestricted
Total Net Position
Total Liabilities and
Net Position
48,095
10,314,873
10,362,968
(4,700,792)
5,662,176
6,603,570
79,820
31,404,674
189,539
31,674,033
(11,207,959)
20,466,074
20,916,074
Information
and
Technology
Employee
Benefits
840,566
3,526
844,092
622,143
2,610
624,753
$ 13,239,320
59,309
897,344
497
14,196,470
1,391,394
237,322
237,322
(170,446)
66,876
66,876
$ 11,524,957
$ 26,631,343
$ 8,686,042
844,092
691,629
851,770
851,770
27,172
27,172
21,182
21,182
5,359
5,359
53,472
52,401
105,873
21,182
5,359
105,873
5,662,176
5,841,599
11,503,775
20,466,074
6,159,910
26,625,984
6,595,073
1,985,096
8,580,169
$ 11,524,957
$ 26,631,343
$ 8,686,042
Total
124,326
321,396
3,405,196
34,717,968
14,294,738
52,863,624
(20,073,425)
32,790,199
34,181,593
$ 48,378,063
107,185
52,401
851,770
1,011,356
1,041,052
1,041,052
1,892,822
27,172
1,041,052
1,041,052
2,052,408
(1,048,730)
(1,048,730)
66,876
597,581
664,457
32,790,199
13,535,456
46,325,655
691,629
$ 48,378,063
844,092
118
CITY OF SHAKOPEE
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2015
Equipment
OPERATING REVENUES
Rental Charges
Other Charges
Total Operating Revenues
OPERATING EXPENSES
Salaries and Benefits
Depreciation
Professional Services
Repairs and Maintenance
Materials and Supplies
Total Operating Expenses
464,384
464,384
Buildings
$
517,910
654
518,564
Park Asset
$
374,660
374,660
Information
and
Technology
Employee
Benefits
$
Total
358,600
358,600
$ 1,715,554
654
1,716,208
167,550
1,780,065
144,901
111,147
368,589
2,572,252
615,038
30,801
645,839
745,065
49,229
81,350
5,701
881,345
368,433
59,437
8,576
436,446
167,550
167,550
51,529
36,235
21,221
332,087
441,072
(181,455)
(362,781)
(61,786)
(167,550)
(82,472)
(856,044)
63,778
122,227
-
72,654
-
26,248
(34,408)
5,000
12,120
-
5,930
-
180,730
87,819
5,000
186,005
72,654
(3,160)
12,120
5,930
273,549
4,550
(290,127)
(64,946)
(155,430)
(76,542)
(582,495)
1,332
-
(466,680)
150,000
-
1,332
150,000
(466,680)
5,882
(756,807)
(64,946)
(155,430)
73,458
(897,843)
590,999
47,223,498
664,457
$ 46,325,655
11,497,893
27,382,791
8,645,115
(893,300)
$ 11,503,775
$ 26,625,984
$ 8,580,169
$ (1,048,730)
119
CITY OF SHAKOPEE
COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2015
Equipment
CASH FLOWS - OPERATING ACTIVITIES
Receipts from Customers and Users
Payments to Suppliers
Payments to Employees
Payments for Interfund Services
Net Cash Flows - Operating
Activities
Park Asset
518,564
(138,752)
(897,344)
374,163
(75,896)
-
(300,804)
(300,804)
358,600
(415,973)
-
$ 1,715,711
(711,901)
(300,804)
(897,344)
(57,373)
(194,338)
(517,532)
298,267
(941,394)
-
50,000
(466,680)
150,000
-
(941,394)
50,000
150,000
(466,680)
(941,394)
(416,680)
150,000
(1,208,074)
122,227
(2,195,520)
(190,481)
5,000
(34,408)
(502,228)
(10,268)
5,000
87,819
(2,898,497)
(2,073,293)
(190,481)
(531,636)
(10,268)
(2,805,678)
68,377
68,494
24,527
12,400
5,122
178,920
68,377
68,494
24,527
12,400
5,122
178,920
(208,842)
(288,404)
87,481
(4,029,170)
534,662
17,268,490
622,143
$ 13,239,320
(82,472)
(1,056,199)
7,464,033
5,850,245
2,290,580
$ 4,900,827
$ 4,794,046
$ 2,081,738
$ (362,781)
$ (167,550)
Total
383,104
(2,563,206)
End of Year
464,384
(81,280)
-
Buildings
Information
and
Technology
Employee
Benefits
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 Expense
Changes in:
Due from Other Funds
Due from Other Governments
Accounts and Contracts Payable
Salaries Payable
Compensated Absences Payable
Total Adjustments
Net Cash Flows - Operating
Activities
383,104
1,332
(181,455)
(61,786)
615,038
745,065
368,433
(50,479)
564,559
(897,344)
(2,472)
(154,751)
(497)
(7,883)
360,053
$ (517,532)
298,267
1,128,970
840,566
51,529
(261,128)
127,874
(133,254)
$
1,780,065
(26,430)
25,099
$ (300,804)
(57,373)
(856,044)
(897,344)
(497)
(87,264)
(261,128)
127,874
661,706
$
(194,338)
1,332
120
CITY OF SHAKOPEE
COMBINED STATEMENT OF FIDUCIARY NET POSITION
December 31, 2015
Escrow Agency
Fund
ASSETS
Cash and Investments
Interest Receivable
Due from Other Governments
Total Assets
LIABILITIES
Accounts Payable
Deposits Payable
Due to Other Governments
Total Liabilities
Southwest Metro
Drug Task Force
Agency Fund
Total Agency
Funds
2,293,485
-
555,344
2,321
22,000
2,848,829
2,321
22,000
2,293,485
579,665
2,873,150
2,293,485
-
413,426
139,883
26,356
413,426
2,433,368
26,356
2,293,485
579,665
2,873,150
121
CITY OF SHAKOPEE
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS
December 31, 2015
Deductions
Balance at
December 31,
2015
ASSETS
Current
Cash and Investments
1,696,243
$ 2,361,292
$ 1,764,050
2,293,485
LIABILITIES
Deposits Payable
1,696,243
$ 2,361,292
$ 1,764,050
2,293,485
Balance at
December 31,
2015
703,015
2,348
12,630
234,007
9,370
381,678
27
-
555,344
2,321
22,000
717,993
243,377
381,705
579,665
595,410
107,974
14,609
176,388
55,242
11,747
358,372
23,333
-
717,993
243,377
381,705
413,426
139,883
26,356
$
579,665
122
CITY OF SHAKOPEE
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS
December 31, 2015
Deductions
Balance at
December 31,
2015
2,399,258
2,348
12,630
$ 2,595,299
9,370
$ 2,145,728
27
-
2,848,829
2,321
22,000
2,414,236
$ 2,604,669
$ 2,145,755
2,873,150
595,410
1,804,217
14,609
358,372
1,787,383
-
413,426
2,433,368
26,356
2,414,236
$ 2,604,669
$ 2,145,755
2,873,150
176,388
2,416,534
11,747
123
124
STATISTICAL SECTION
125
126
CITY OF SHAKOPEE
STATISTICAL SECTION
December 31, 2015
This part of the Citys Comprehensive Annual Financial Report (CAFR) 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 Citys overall financial health.
CONTENTS
Financial Trends
Page
128
These schedules show trend information to help the reader understand how the Citys
financial performance and well being have changed over time.
Revenue Capacity
136
Portrayed is information to help the reader assess the Citys most important local revenue
source, the property tax.
Debt Capacity
140
These schedules present information to help the reader assess the affordability of the Citys
current levels of outstanding debt and the Citys ability to issue additional debt in the future.
Demographic and Economic Information
147
Shown are demographic and economic indicators to help the reader understand the
environment within which the Citys financial activities take place.
Operating Information
150
These schedules shown service and infrastructure data to help the reader understand how
the information in the Citys financial report relates to the services the City provides and the
Source: Unless noted otherwise, the information in these schedules is from the CAFR for the relevant
year.
127
CITY OF SHAKOPEE
NET POSITION BY COMPONENT
Years 2006 Through 2015
2006
Governmental Activities:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Governmental
Activities Net Position
Business-Type Activities:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Business-Type
Activities Net Position
Primary Government:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Primary
Government Net Position
2007
2008
2009
$ 119,661,761
12,998,982
29,264,714
113,534,056
13,081,337
28,316,931
112,909,793
21,915,945
22,086,771
112,097,148
16,518,865
28,832,576
161,925,457
154,932,324
156,912,509
157,448,589
109,337,014
880,069
42,400,797
114,546,218
1,026,351
46,169,289
115,124,238
1,756,369
49,366,581
114,331,216
3,574,612
55,595,594
152,617,880
161,741,858
166,247,188
173,501,422
228,998,775
13,879,051
71,665,511
228,080,274
14,107,688
74,486,220
228,034,031
23,672,314
71,453,352
226,428,364
20,093,477
84,428,170
314,543,337
316,674,182
323,159,697
330,950,011
From 2006-2010, the SPUC Funds, Water and Electric Enterprise Funds, were reported as a
blended component unit of the City. In 2011, SPUC funds have been presented as discretely
presented component units as it no longer met the criteria for blending.
The City implemented GASB Statemetn No. 68 and GASB Statement No. 71 in 2015. Years
prior to 2015 have not been restated.
128
Table 1
2010
2011
2012
2013
2014
2015
111,905,152
1,844,129
43,910,102
114,981,955
10,914,439
32,771,327
115,191,768
9,912,551
34,823,712
118,166,525
10,454,238
30,642,443
117,980,552
7,103,581
35,302,035
120,831,029
7,547,490
23,939,064
157,659,383
158,667,721
159,928,031
159,263,206
160,386,168
152,317,583
115,064,968
4,889,050
59,014,070
65,080,070
31,927,930
64,124,590
33,354,521
65,181,465
31,183,904
67,831,099
28,485,814
68,986,369
25,981,542
178,968,088
97,008,000
97,479,111
96,365,369
96,316,913
94,967,911
226,970,120
6,733,179
102,924,172
180,062,025
10,914,439
64,699,257
179,316,358
9,912,551
68,178,233
183,347,990
10,454,238
61,826,347
185,811,651
7,103,581
63,787,849
189,817,398
7,547,490
49,920,606
336,627,471
255,675,721
257,407,142
255,628,575
256,703,081
247,285,494
129
CITY OF SHAKOPEE
CHANGES IN NET POSITION
Years 2006 Through 2015
2006
EXPENSES:
Governmental Activities:
General Government
Public Safety
Public Works
Culture and Recreation
Economic Development
Other
Total Governmental Activities Expenses
Business-Type Activities:
Electric
Water
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
Economic Development
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities
Program Revenues
Business-Type Activities:
Charges for Services:
Electric
Water
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
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION:
Governmental Activities:
Taxes:
Property Taxes
Other Taxes
Unrestricted Investment Earnings
Gain on Disposal of Assets
Special Item
Transfers
Total Governmental Activities
Business-Type Activities:
Investment Earnings
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
3,161,106
6,856,485
6,798,917
4,653,240
333,462
896,110
22,699,320
29,169,297
2,949,990
2,786,234
1,523,343
36,428,864
59,128,184
714,105
2,063,023
2,986,495
1,676,630
1,653,238
6,116,366
2007
3,543,980
8,301,075
15,264,606
5,323,087
363,805
1,042,133
33,838,686
34,710,974
3,332,132
2,938,955
1,352,078
42,334,139
76,172,825
583,247
1,650,235
2,615,402
1,086,750
1,943,805
2,463,129
2008
3,514,573
8,346,104
8,099,384
3,637,527
522,074
1,033,999
25,153,661
36,186,676
3,461,261
3,308,759
1,435,376
44,392,072
69,545,733
606,259
1,506,680
2,354,276
1,295,772
1,660,191
1,825,124
2009
3,807,322
1,382,391
5,189,713
30,503,181
721,180
1,503,188
478,788
1,071,482
7,100
3,606,089
3,152,881
8,246,610
10,540,708
31,906,714
3,127,207
3,471,984
1,859,912
6,174,786
37,407,565
3,525,140
2,806,371
1,505,247
4,138,977
38,732,701
3,390,309
2,556,299
1,379,821
1,007,519
34,272,099
3,605,498
3,485,882
1,405,560
1,879,530
36,872,008
4,417,498
3,508,947
1,281,986
6,415
1,661,001
2,941,753
1,083,878
93,810
49,383,300
47,066,649
44,648,569
59,725,868
56,314,951
(7,489,463)
10,111,739
2,622,276
(23,496,118)
7,049,161
(16,446,957)
(15,905,359)
2,674,577
(13,230,782)
10,547,177
336,648
1,661,257
2,700
2,146,233
14,694,015
12,767,354
369,240
2,232,717
22,628
1,111,046
16,502,985
14,200,833
388,935
1,941,335
56,453
1,297,988
17,885,544
652,686
1,716,573
941,224
1,039,820
2,943,857
952,450
4,252,887
9,236,767
7,094,047
3,866,307
244,361
619,099
25,313,468
7,440,678
32,700,410
3,293,079
3,685,417
1,792,749
41,471,655
67,013,416
9,248,302
61,750,460
680,681
1,677,772
1,342,173
1,013,044
1,485,124
1,241,884
3,042,918
9,123,316
8,397,874
3,765,660
427,169
784,824
25,541,761
10,342,568
46,540,603
30,140,842
3,316,102
3,398,117
1,264,261
38,119,322
63,112,363
2011
15,209,857
3,388,268
8,528,413
7,860,080
3,859,670
316,566
1,040,044
24,993,041
2010
1,973,715
13,749
(2,146,233)
(158,769)
14,535,246
7,204,552
9,952,970
17,157,522
$
$
3,185,863
(1,111,046)
2,074,817
18,577,802
(6,993,133)
9,123,978
2,130,845
$
$
3,128,741
(1,297,988)
1,830,753
19,716,297
1,980,185
4,505,330
6,485,515
$
$
52,089,247
47,747,855
$
(17,552,363) $
6,529,247
(11,023,116) $
14,676,518
151,956
1,323,230
37,162
1,899,577
18,088,443
1,336,979
(1,899,577)
(562,598)
17,525,845 $
536,080
5,966,649
6,502,729
$
$
4,119,441
55,994,465
14,660,149
(17,295,151)
6,276,200
(11,018,951)
(14,772,760)
(1,070,272)
(15,843,032)
14,229,111
147,561
1,039,867
2,089,406
17,505,945
1,279,872
(2,089,406)
(809,534)
16,696,411
210,794
5,466,666
5,677,460
$
$
14,487,805
160,884
1,032,409
100,000
15,781,098
758,182
(100,000)
658,182
16,439,280
1,008,338
(412,090)
596,248
From 2006-2010, the SPUC funds, Water and Electric Enterprise Funds, were reported as a blended component unit of the City. In 2011, SPUC Funds have been presented as
discretely presented component units as it no longer met the criteria for blending.
The City implemented GASB Statemetn No. 68 and GASB Statement No. 71 in 2015. Years prior to 2015 have not been restated.
130
Table 2
2012
4,603,027
9,430,785
7,083,299
3,817,677
152,541
587,384
25,674,713
3,926,541
1,445,633
5,372,174
31,046,887
3,356,772
1,524,158
454,145
2,222,430
16,500
2,106,559
1,479,343
2013
4,704,956
9,868,702
7,578,493
4,020,974
338,907
573,949
27,085,981
4,096,504
1,641,438
5,737,942
32,823,923
3,047,447
1,701,875
688,286
2,012,436
18,000
1,894,436
689,424
2014
5,514,412
10,543,861
10,667,275
4,250,557
1,593,968
453,696
33,023,769
3,777,866
1,924,853
5,702,719
38,726,488
3,155,648
1,879,209
693,647
1,827,046
18,000
2,880,493
6,668,531
2015
4,237,647
10,582,354
8,552,096
4,355,453
2,603,741
274,960
30,606,251
3,824,026
1,726,149
127,781
5,677,956
36,284,207
2,904,587
2,146,840
704,687
2,140,071
24,000
2,509,986
1,735,543
11,159,907
10,051,904
17,122,574
12,165,714
3,728,189
1,442,394
348,756
3,004,826
1,720,653
7,780
2,916,192
1,211,793
72,167
496,655
2,829,981
1,765,679
103,637
65,844
5,519,339
4,733,259
4,696,807
4,765,141
16,679,246
14,785,163
21,819,381
16,930,855
(14,514,806)
147,165
(14,367,641)
(17,034,077)
(1,004,683)
(18,038,760)
(15,901,195)
(1,005,912)
(16,907,107)
(18,440,537)
(912,815)
(19,353,352)
$
$
15,002,764
113,902
546,681
11,769
100,000
15,775,116
423,946
(100,000)
323,946
16,099,062
1,260,310
471,111
1,731,421
$
$
15,795,777
113,796
40,589
256,600
162,490
16,369,252
53,431
(162,490)
(109,059)
16,260,193
(664,825)
(1,113,742)
(1,778,567)
$
$
16,446,631
216,441
727,619
52,674
(419,208)
17,024,157
538,248
419,208
957,456
17,981,613
1,122,962
(48,456)
1,074,506
$
$
16,807,367
406,571
452,281
87,819
496,484
(634,070)
17,616,452
349,776
17,438
0
(129,270)
17,487,182
(824,085)
(1,042,085)
(1,866,170)
131
CITY OF SHAKOPEE
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2006
General Fund:
Nonspendable:
Prepaids
Reserved
Restricted for:
BATC Litigation
Committed to:
Working Capital
Unreserved
Unassigned
Total General Fund
All Other Governmental Funds
Reserved:
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Restricted for:
Forfeitures
Transit
SCDP Grant
Revolving Loans
Economic Development
Debt Service
Capital Improvements
Committed to:
Working Capital
Transit
Revolving Loans
Economic Development
Park Projects
Capital Improvements
2008 Projects
2009 Projects
2010 Projects
Fire Station 2
Assigned to:
Telecomminication
Capital Improvements
Capital Projects Funds
Unreserved
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Unassigned
Governmental Funds
2007
1,490,157
2008
1,810,650
2009
1,126,074
799,276
8,354,477
9,844,634
7,896,883
9,707,533
8,733,528
9,859,602
10,703,004
11,502,280
3,386,721
7,930,114
8,082,799
2,489,775
3,849,703
2,738,909
4,873,440
2,677,290
4,185,059
993,555
7,941,439
1,673,762
16,948,234
1,130,452
7,658,289
1,994,812
18,395,902
7,504,770
2,453,383
16,820,502
(1,205,899)
18,193,735
132
Table 3
2010
2011
149,940
-
2012
131,447
-
2013
19,189
-
2014
16,440
-
2015
13,949
-
21,573
-
218,032
345,820
8,323,938
9,037,730
9,172,747
9,304,194
9,503,652
9,522,841
9,076,549
9,092,989
9,824,097
9,838,046
9,818,537
9,840,110
189,112
1,158,355
55,743
143,023
447,319
5,127,697
2,203,238
208,518
1,237,762
22,462
249,147
497,775
4,625,946
958,195
195,823
1,045,340
22,447
252,639
562,959
9,574,198
1,815,339
180,696
941,469
4,546
253,065
685,671
8,678,680
1,882,231
174,580
635,247
4,627
257,601
361,569
7,053,086
1,634,954
180,555
4,683
260,865
674,910
3,085,157
1,425,798
345,820
463,470
100,000
20,930
1,785,164
3,616,689
190,431
14,876
131,398
2,476,886
49,192
-
45,681
6,964,247
413,228
66,989
8,681,475
394,666
54,499
5,753,669
176,398
76,342
5,630,178
228,059
108,627
6,130,194
1,505,595
(484,089)
14,738,872
(384,965)
22,226,910
(1,716)
18,609,208
(7,316)
16,048,927
(1,715,102)
11,661,282
(116,803)
18,402,540
133
CITY OF SHAKOPEE
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
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
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
Transfers In
Transfers Out
Special Items
Total Other Financing Sources
(Uses)
Net Change in Fund Balance
Debt Service as a Percentage of
Noncapital Expenditures
2006
2007
2008
2009
$ 10,815,367
1,751,871
2,675,935
2,877,245
2,290,996
422,850
1,979,419
22,813,683
$ 13,084,595
2,301,560
1,378,570
2,540,584
2,089,375
501,228
2,322,755
24,218,667
$ 14,437,766
1,879,974
1,221,939
2,702,993
2,209,269
442,626
2,028,529
24,923,096
$ 14,992,051
1,810,511
1,492,746
1,811,668
1,808,865
428,662
1,503,722
23,848,225
3,149,717
7,153,121
3,095,392
3,453,545
-
3,479,925
8,342,017
3,769,491
3,651,539
-
3,517,957
8,462,288
3,628,954
4,101,175
522,074
3,331,193
8,604,704
3,591,049
3,898,844
316,566
3,055,000
1,195,618
10,650,449
31,752,842
3,110,000
1,025,868
7,288,033
30,666,873
3,280,000
1,077,711
3,300,942
27,891,101
2,660,000
1,077,325
1,797,299
25,276,980
(8,939,159)
(6,448,206)
(2,968,005)
(1,428,755)
3,440,000
2,700
20,275
6,683,532
(3,354,364)
-
2,815,000
17,700
9,956
4,411,281
(2,188,333)
-
2,170,000
16,741
4,605,693
(2,224,692)
-
4,958,133
(3,462,100)
-
6,792,143
5,065,604
4,567,742
1,496,033
$ (2,147,016)
$ (1,382,602)
21%
16%
$ 1,599,737
17%
67,278
16%
134
Table 4
2010
2011
2012
2013
2014
2015
$ 14,385,788
1,404,088
1,338,111
2,924,161
2,202,524
549,543
1,255,038
24,059,253
$ 14,699,066
1,475,324
1,281,150
3,941,830
3,958,237
411,211
705,969
26,472,787
$ 15,141,903
1,499,810
2,441,246
2,548,692
4,449,003
418,474
836,868
27,335,996
$ 15,851,560
930,331
2,349,945
1,857,803
4,583,551
381,470
189,717
26,144,377
$ 16,798,542
2,673,132
2,318,447
4,743,014
4,683,722
429,021
675,643
32,321,521
$ 17,225,535
1,157,405
2,989,038
3,427,130
4,479,845
171,856
604,816
30,055,625
2,960,233
9,012,567
3,902,622
4,075,919
270,915
4,004,684
9,460,824
2,602,104
3,902,386
247,591
4,396,219
9,483,999
2,349,042
3,799,723
155,692
4,495,662
9,731,407
2,631,154
3,771,068
340,904
5,225,483
10,193,496
2,829,846
3,981,999
1,595,628
3,864,337
10,209,739
3,036,284
3,891,542
2,352,621
3,800,000
833,245
2,812,488
27,667,989
2,565,000
658,265
6,301,406
29,742,260
1,950,000
634,063
2,164,053
24,932,791
2,070,000
618,695
6,883,191
30,542,081
3,160,000
504,460
7,245,157
34,736,069
5,615,000
365,898
5,461,607
34,797,028
(3,608,736)
(3,269,473)
2,403,205
(4,397,704)
(2,414,548)
(4,741,403)
1,555,000
6,000
13,199,807
(12,380,403)
-
2,968,919
(2,750,830)
-
4,865,000
73,480
3,367,400
(3,002,400)
-
150
4,890,809
(4,540,809)
-
314
3,531,038
(2,932,028)
-
6,135,344
(5,145,452)
(634,070)
2,380,404
$
218,089
(1,228,332)
$ (3,051,384)
18%
14%
5,303,480
$ 7,706,685
11%
350,150
599,324
355,822
$ (4,047,554)
$ (1,815,224)
$ (4,385,581)
11%
12%
20%
135
CITY OF SHAKOPEE
Table 5
TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Taxable Tax
Capacity as a
Percentage of
Estimated
Market Value
Less Net
Fiscal
Disparities
Net Taxable
Tax
Capacity
Total
Direct
Tax Rate
352,543
1,615,190
34,470,585
0.30974
2,987,657,400
1.15%
675,479
378,593
1,963,379
39,164,767
0.31939
3,419,040,600
1.15%
15,426,355
741,679
411,490
1,846,919
43,851,703
0.31925
3,800,795,500
1.15%
29,805,971
16,088,685
1,319,935
156,799
1,862,715
45,195,077
0.32630
3,850,591,200
1.17%
2010
27,805,069
16,459,872
1,279,807
151,914
1,584,552
43,808,282
0.33710
3,710,814,056
1.18%
2011
24,652,932
18,351,835
1,304,688
161,430
1,630,522
42,517,503
0.34731
3,570,069,500
1.19%
2012
23,180,073
17,956,273
852,512
155,002
1,740,447
40,093,409
0.36655
3,347,179,800
1.20%
2013
22,824,263
17,577,547
576,049
107,928
1,707,617
39,162,314
0.41996
3,064,695,700
1.28%
2014
22,782,372
17,580,049
589,717
214,592
1,961,307
38,776,239
0.41437
3,206,518,700
1.21%
2015
26,419,959
18,769,230
625,872
408,172
1,918,874
43,488,015
0.37862
3,629,757,200
1.20%
Fiscal
Year
Residential
Property
Commercial
Industrial
Property
2006
23,162,320
12,710,783
565,215
2007
26,817,616
14,013,644
2008
29,942,078
2009
Other
Property
Less:
Tax Increment
Property
Estimated
Taxable
Market
Value
136
CITY OF SHAKOPEE
Table 6
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
Fiscal
Year
Operating
Rate
Debt Service
Rate
2006
0.28996
0.01978
0.30974
0.27789
0.34974
0.04578
0.00848
2007
0.29822
0.02117
0.31939
0.27132
0.33140
0.04434
0.00728
2008
0.29874
0.02051
0.31925
0.26103
0.32646
0.04642
0.00537
2009
0.30401
0.02229
0.32630
0.27274
0.32684
0.04960
0.00651
2010
0.32152
0.01558
0.33710
0.29050
0.33240
0.04980
0.00651
2011
0.32996
0.01735
0.34731
0.31182
0.35541
0.05020
0.00342
2012
0.34005
0.02650
0.36655
0.35512
0.38802
0.05610
0.00345
2013
0.41996
0.41996
0.39715
0.40674
0.05701
0.00467
2014
0.39305
0.02131
0.41437
0.36963
0.39720
0.05569
0.00524
2015
0.35235
0.02626
0.37862
0.35578
36.63790
0.05169
0.00536
Total Direct
Rate
Shakopee
School
District
Scott
County
Other
Jurisdictions
General
Obligation
Debt Service
Market Value
Rate
137
CITY OF SHAKOPEE
Table 7
PRINCIPAL TAXPAYERS
Current Year and Nine Years Ago
2015
Taxpayer
Type of Business
$
2006
Percentage
of Total
Tax Cap.
Value
2014/15
Tax Cap.
Value
Rank
625,521
1.44%
Rank
422,938
1.51%
Excel Energy
Electrical Generation
Manufacturing
449,000
1.03%
Rahr Malting
Grain Processing
447,112
1.03%
401,067
1.43%
Seagate
Manufacturing/Research
419,250
0.96%
399,250
1.42%
Lothenbach Properties
Warehouse/Manufacturing
399,250
0.92%
Health Care
374,500
0.86%
Certainteed
Manufacturing
365,250
0.84%
335,258
1.19%
Retail
353,200
0.81%
Canterbury Park
Horse Racing
340,760
0.78%
Valleyfair
Amusement Park
323,250
10
0.74%
300,784
1.07%
Retail
344,163
1.23%
Retail
339,458
1.21%
KMart Warehouse
Warehouse/Distribution Center
300,988
1.07%
OIRE
Property Management
272,128
10
0.97%
$ 4,097,093
9.41%
Percentage
of Total
Tax Cap.
Value
2005/06
Tax Cap.
Value
$ 3,396,996
12.10%
138
CITY OF SHAKOPEE
Table 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Year
Collected
Tax
Levy
Collections
of Current
Years Taxes
Percentage
of Levy
Collected
2006
$ 10,951,917
$ 9,945,490
91%
2007
12,745,449
12,418,768
2008
14,222,007
2009
Collections
of Prior
Years Taxes
$
Total
Collections
Percentage
of Total
Collections
To Tax Levy
38,986
$ 9,984,476
91%
97%
91,200
12,509,968
13,661,366
96%
208,470
14,983,677
14,457,378
96%
2010
14,918,665
13,971,356
2011
14,837,438
2012
Accumulated
Delinquent
Taxes
$
Ratio of
Accumulated
Delinquent
Taxes to
Current
Years Taxes
279,316
2.55%
98%
331,315
2.60%
13,869,836
98%
483,317
3.40%
157,920
14,615,298
98%
319,740
2.13%
94%
55,020
14,026,376
94%
310,624
2.08%
14,019,831
94%
278,981
14,298,812
96%
260,248
1.75%
14,837,438
14,553,417
98%
188,750
14,742,167
99%
235,011
1.58%
2013
15,483,223
15,109,599
98%
279,485
15,389,084
99%
293,025
1.89%
2014
16,312,179
16,177,463
99%
16,177,463
99%
157,555
0.97%
2015
16,773,267
16,351,700
97%
16,351,700
97%
145,958
0.87%
139
CITY OF SHAKOPEE
Table 9
RATIO OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
Special
Assessment
Bonds
Business-type
Activities
Revenue
Bonds
Total
Primary
Government
7,950,000
$ 17,070,000
$ 34,535,000
$ 59,555,000
4.9%
1,816
2007
7,560,000
17,165,000
33,895,000
58,620,000
4.5%
1,752
2008
7,165,000
16,450,000
33,225,000
56,840,000
4.1%
1,689
2009
6,755,000
14,200,000
22,235,000
43,190,000
4.1%
1,276
2010
6,340,000
12,370,000
21,470,000
40,180,000
3.4%
1,084
2011
5,905,000
10,240,000
16,145,000
1.3%
428
2012
10,325,000
8,735,000
19,060,000
1.6%
504
2013
9,865,000
7,125,000
16,990,000
1.4%
446
2014
9,390,000
4,440,000
13,830,000
1.1%
353
2015
5,100,000
3,115,000
8,215,000
0.7%
208
Fiscal
Year
2006
Sources:
G.O.
Bonds
$
Percentage
of Personal
Income
Per
Capita
Note: From 2006-2010, the SPUC Funds, Water and Electric Enterprise Funds, were reported as a blended
component unit of the City. In 2011, SPUC Funds have been presented as discretely presented component
units as it no longer met the criteria for blending.
140
CITY OF SHAKOPEE
Table 10
RATIOS OF GENERAL BONDED OUTSTANDING
Last Ten Fiscal Years
Fiscal
Year
2006
G.O.
Bonds
$
Percentage of
Actual Taxable
Value of
Property
Per
Capita
Percentage of
Total
Personal
Income
7,950,000
0.27%
242
0.65%
2007
7,560,000
0.22%
226
0.61%
2008
7,165,000
0.19%
213
0.52%
2009
6,755,000
0.18%
199
0.65%
2010
6,340,000
0.17%
171
0.54%
2011
5,905,000
0.17%
157
0.49%
2012
10,325,000
0.31%
273
0.86%
2013
9,865,000
0.32%
259
0.81%
2014
9,390,000
0.29%
239.88
0.75%
2015
5,100,000
0.14%
129.04
0.40%
Sources:
1. Metropolitan Council estimated for population.
2006-2009 populations are the City's estimate.
2. Scott County Auditor
141
142
CITY OF SHAKOPEE
Table 11
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2015
G.O.
Debt
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
Percentage
Applicable
To City of
Shakopee (1)
8,215,000
100.0%
216,945,000
162,490,000
63,050,000
20,500,000
462,985,000
85.4%
2.2%
27.2%
1.3%
471,200,000
Amount
Applicable
To City of
Shakopee
8,215,000
185,271,030
3,574,780
17,149,600
266,500
206,261,910
$
214,476,910
Source:
Springsted
Carver County
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
143
CITY OF SHAKOPEE
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
2006
2007
2008
2009
$ 2,987,657,400
$ 3,419,040,600
$ 3,800,795,500
$ 3,850,591,200
59,753,148
68,380,812
114,023,865
115,517,736
7,950,000
(810,494)
7,560,000
(834,155)
7,165,000
(847,608)
6,755,000
(837,100)
7,139,506
6,725,845
6,317,392
5,917,900
52,613,642
61,654,967
107,706,473
109,599,836
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 2%
(3% starting 2008) 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.
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.
144
Table 12
2010
2011
2012
2013
2014
2015
$ 3,710,814,056
$ 3,570,069,500
$ 3,347,179,800
$ 3,064,695,700
$ 3,206,518,700
$ 3,629,757,200
107,102,085
107,102,085
100,415,394
91,940,871
96,195,561
108,892,716
6,340,000
(786,306)
5,905,000
(826,957)
10,325,000
(4,974,768)
9,865,000
(4,836,597)
9,390,000
(4,833,096)
5,100,000
(1,511,502)
5,553,694
5,078,043
5,350,232
5,028,403
4,556,904
3,588,498
101,548,391
102,024,042
95,065,162
86,912,468
91,638,657
105,304,218
145
CITY OF SHAKOPEE
Table 13
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Fiscal
Year
2006
Less:
Operating
Expense
Utility
Service
Charges
$
Utility Bonds
Net
Debt Service
Available
Revenue
Principal
Interest
Coverage
38,445,403
$ 31,436,969
$ 7,008,434
$ 785,000
$ 1,174,711
3.58
2007
44,692,049
36,644,414
8,047,635
640,000
1,574,925
3.63
2008
45,499,791
38,689,351
6,810,440
670,000
1,523,198
3.11
2009
42,437,910
33,009,500
9,428,410
710,000
1,012,874
5.47
2010
45,586,795
36,375,440
9,211,355
765,000
939,426
5.40
2011
2012
2013
2014
2015
146
CITY OF SHAKOPEE
Table 14
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Calendar Years
Fiscal
Year
Population (1)
School
Enrollment (2)
Unemployment
Rate (3)
Total
Employment
2006
32,800
6,643
3.9%
19,098
2007
33,460
6,905
4.6%
2008
33,660
7,163
2009
33,860
2010
Per Capita
Income (3)
37,023
$ 1,214,354,400
19,020
39,042
1,306,345,320
6.3%
18,967
31,900
1,375,044,660
7,465
7.4%
18,728
30,900
1,046,274,000
37,076
7,814
6.5%
19,933
31,700
1,175,309,200
2011
37,721
8,115
5.2%
20,449
32,017
1,207,713,257
2012
37,841
8,392
4.6%
20,926
31,628
1,196,835,148
2013
38,120
8,452
3.8%
21,233
31,829
1,213,321,480
2014
39,144
8,698
3.6%
21,439
32,174
1,259,419,056
2015
39,523
8,939
3.0%
21,877
31,965
1,263,352,695
Source: 1.
2.
3.
4.
Personal
Income (4)
2010 is the official census figure. 2005-2009,2011-2015 are the City's estimate.
Shakopee School District, SACS, Bloomington Lutheran
Minnesota Department of Employment and Economic Development
Per capita income times population
147
148
CITY OF SHAKOPEE
Table 15
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
2015
Taxpayer
Type of Business
Employees
Rank
2006
Total
City
Employment
Employees
Rank
Total
City
Employment
Valley Fair
Amusement Park
1,672
7.64%
1,600
8.88%
Education
1,290
5.90%
787
4.37%
Seagate
Manufacturing/Research
1,000
4.57%
1,500
8.32%
Canterbury Park
Horse Racing
839
3.84%
1,000
5.55%
Health Care
830
3.79%
750
4.16%
Entrust Datacard
Manufacturing
820
3.75%
Printing
815
3.73%
Scott County
Government
632
2.89%
740
4.11%
Emerson
Manufacturing
463
2.12%
Shutterfly
Printing
400
10
1.83%
Auto Auction
350
1.94%
Printing
300
1.66%
TORO
Manufacturing
300
1.66%
CertainTeed
Manufacturing
300
10
1.66%
8,761
Total Employment
40.06%
7,627
21,877
42.31%
19,098
Source: Minnesota Department of Employment and Economic Development and Shakopee Chamber of Commerce.
149
CITY OF SHAKOPEE
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES
BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2006
General Government:
Administration
City Clerk
Finance
Planning
Facilities Maintenance
Information Technology
2007
2008
2009
2010
6
4
3
5
6
2
5
4
3
5
6
2
5
4
3
5
7
2
5
4
3
5
6
2
5
4
3
5
6
2
45
7
46
7
47
6
47
6
47
6
48
8
1
48
7
2
48
6
3
44
5
3
44
5
Public Works:
Engineering
Street
Shop
9
12
3
7
12
3
7
13
3
7
13
3
7
13
3
7
10
8
10
8
7
8
7
8
7
175
174
173
168
168
Public Safety:
Police:
Licensed
Other
Fire:
Full time
Paid On Call
Building Inspection
Economic Development:
EDA
Total
150
Table 16
2011
2012
2013
2014
2015
5
4
3
5
6
2
6
3
4
5
4
2
7
3
4
5
4
2
8
3
4
5
4
2
6
3
4
5
3
4
50
6
49
7
47
10
47
10
48
11
3
42
5
3
44
5
7
44
5
7
43
5
7
43
4
7
13
4
7
13
3
7
13
3
8
14
4
8
14
4
8
7
8
7
8
1
7
9
2
7
9
2
9
170
170
1
178
1
183
1
185
151
CITY OF SHAKOPEE
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2006
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
Park and Recreation
Park Maintenance
Acres Maintained
Recreation
Program Participants
Community Center Members
Community Center Admissions
2007
2008
2009
91
10
155
67
3
38
68
2
50
35
2
34
1,770
4,970
18,333
2,199
6,073
19,606
1,881
4,058
19,057
1,913
6,127
17,909
494
609
538
517
1,131
9,671
223
1,194
8,174
138
1,019
5,946
94
1,102
9,726
314
153
154
154
154
930
930
933
933
9,928
578
91,776
10,847
597
100,044
11,410
613
100,397
10,377
823
109,257
152
Table 17
2010
2011
2012
2013
2014
2015
33
1
6
24
2
68
47
5
89
49
8
99
45
7
68
75
9
335
1,962
5,528
17,831
1,666
5,647
17,852
1,798
5,636
18,349
1,387
5,656
17,822
1,524
4,934
17,846
2,121
5,510
19,357
557
600
617
584
730
745
1,083
8,048
160
1,881
8,004
118
1,413
8,191
97
3,556
7,446
104
3,557
7,790
61
4,268
8,438
60
154
154
154
154
156
156
933
933
933
933
1,015
1,402
13,001
2,534
117,336
13,157
3,682
120,667
13,104
4,009
128,929
15,854
5,025
140,778
18,540
2,610
124,124
29,446
2,028
112,000
153
CITY OF SHAKOPEE
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2006
Police:
Stations
Patrol Zones
Patrol Units
Fire Stations
Street:
Miles of Roadway
Traffic Signals
Parks:
Acres
Ball Fields
Playgrounds
2007
2008
2009
2010
1
4
15
1
4
15
1
4
15
1
4
15
1
4
15
153
25
154
25
154
26
154
27
154
27
1,015
47
18
1,015
47
22
1,019
49
24
1,024
49
24
1,024
52
24
154
Table 18
2011
2012
2013
2014
2015
1
4
15
1
4
15
1
4
15
1
4
15
1
4
15
154
27
154
29
154
29
156
30
156
30
1,024
54
26
1,048
56
26
1,048
56
26
1,055
56
26
1,055
56
26
155