Shakopee finance staff report preliminary 2025 results: general fund shows multi‑million dollar positive variance

City finance staff presented preliminary, unaudited 2025 financial results to the Shakopee City Council on Feb. 17, reporting a positive variance in the general fund and stronger‑than‑budget revenues.

Finance presenter Mr. Reinhart said revenues were about 110% of budget — roughly $4.1 million favorable — and expenditures were around 97% of budget (approximately $1.2 million under), producing an estimated $4.8 million positive variance for the year. He emphasized these are preliminary figures: the audit fieldwork is underway and the final audited numbers will be presented after the April audit (final report typically comes to council in June).

Reinhart walked council through revenue detail, citing property taxes and franchise fees as key contributors, and reviewed permit revenue and intergovernmental receipts. Permit valuations for 2025 totaled about $258 million compared with $311 million in 2024. Investment earnings and an unrealized market value adjustment together produced a roughly $4.6 million combined gain for the year, driven by higher interest earnings (~$2.8 million) and market adjustments (~$1.8 million).

Reinhart noted standard year‑end accounting processes (journal entries, receivables/payables and grant reimbursements) that will alter final numbers. Council had no substantive questions beyond thanks and congratulations to the finance team for a long‑running certificate achievement in financial reporting.

The presentation made clear the figures are subject to change as audit adjustments are processed and as final invoices and receivables are reconciled.