2020 Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020

NOTE 5 – RECEIVABLES/UNAVAILABLE REVENUE (CONTINUED)

B. Forgivable Loan

The Economic Development Authority (EDA) offers a commercial exterior improvement program which is used to encourage property owners to maintain and invest in their properties in order to promote economic growth. The program offers up to 50 percent of project costs for eligible improvements as a no-interest forgivable loan. Forgiveness of the loan takes place over a five-year period with 20 percent of the aware forgiven annually. The city may extend or reduce the repayment period based on the dollar amount of the reward. As of December 31, 2020, the balance of these loans is $411,134. There has been an allowance for doubtful accounts recorded for the same amount, as it is fully expected that these loans will be forgiven.

NOTE 6 – CAPITAL ASSETS

Governmental capital asset activity for the year ended December 31, 2020 was as follows:

Beginning Balance

Ending Balance

Increases

Decreases

Governmental Activities:

Capital Assets not being

Depreciated:

Land Right-Of-Way

23,258,561 $ 889,965 8,448,214

23,257,460 $

$

1,101

$

- -

395,219 4,474,111

494,746 4,380,173

not being Depreciated Total Capital Assets Construction in Progress

406,070

32,596,740

28,132,379

4,870,431

406,070

Capital Assets being

Depreciated: Buildings

73,551,369 173,922,264 25,036,171

170,726,764 24,096,684 73,292,644

3,195,500 1,615,026 258,725

- -

Infrastructure

Machinery and Equipment Total Capital Assets being Depreciated

675,539

272,509,804

268,116,092

5,069,251

675,539

Less Accumulated Depreciation for: Buildings Infrastructure

17,464,962 100,227,996 11,444,483

15,852,497 94,927,798 10,454,508

1,612,465 5,300,198 1,455,926

- -

Machinery and Equipment Total Accumulated Depreciation

465,951

129,137,441

121,234,803

8,368,589

465,951

Total Capital Assets being Depreciated, Net

143,372,363

146,881,289

(3,299,338)

209,588

Governmental Activities Capital Assets, Net

175,969,103 $

175,013,668 $

1,571,093 $

$

615,658

67