2021 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021

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, 2021, the balance of these loans is $334,486. 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, 2021 was as follows:

Beginning Balance

Ending Balance

Increases

Decreases

Governmental Activities:

Capital Assets not being

Depreciated:

Land Right-Of-Way

23,258,561 $

1,484,808 $

$

- -

24,743,369 $ 1,089,211 6,401,943

8,448,214 889,965

2,060,998 199,246

Total Capital Assets Construction in Progress

4,107,269

not being Depreciated

32,596,740

3,745,052

4,107,269

32,234,523

Capital Assets being

Depreciated: Buildings

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

219,691

- -

73,771,060 186,221,897 27,148,007

Infrastructure

12,299,633 2,741,330

Machinery and Equipment Total Capital Assets being Depreciated

629,494

272,509,804

15,260,654

629,494

287,140,964

Less Accumulated Depreciation for: Buildings Infrastructure

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

1,618,640 5,284,317 1,498,505

- -

19,083,602 105,512,313 12,486,300

Machinery and Equipment Total Accumulated Depreciation

456,688

129,137,441

8,401,462

456,688

137,082,215

Total Capital Assets being Depreciated, Net

143,372,363

6,859,192

172,806

150,058,749

Governmental Activities Capital Assets, Net

175,969,103 $

10,604,244 $

4,280,075 $

182,293,272 $

66

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