2021 Annual Comprehensive Financial Report

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

NOTE 7 – LEASES

The government leases fitness equipment under noncancelable operating leases. Total costs for such leases were $43,232 for the year ended December 31, 2021. The future minimum lease payments for these leases are as follows: 40,740 $ A. Operating Leases

2023 2024 2025 2022

40,740 40,740 16,975

Total

139,195 $

A. General Obligation Bonds NOTE 8 – LONG-TERM DEBT

G.O. bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as serial bonds with equal debt service payments each year. G.O. bonds currently outstanding are shown on the following page. The City issues general obligation (G.O.) bonds to provide for financing tax increment projects, street improvements and construction of government buildings. Debt service is covered respectively by tax increments and special assessments against benefited properties with any shortfalls being paid from general taxes.

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