2022 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022

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: 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. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Major Governmental Funds: General Fund – This Fund is the City’s primary operating fund. It accounts for all financial resources of the general City, except those required to be accounted for in another fund. Capital Improvement Capital Project Fund – This Fund accounts for the capital projects of the City not accounted for in separate capital funds. TIF District No. 18 Canterbury Commons Capital Project Fund – This Fund accounts for tax increment financing district number 18- Canterbury Commons development project. TIF District No. 20 Enclave Capital Project Fund – This Fund accounts for tax increment financing district number 20- old city hall redevelopment project. Sewer Fund – This Fund accounts for operations of the City’s sewer utility. Storm Drainage Fund – This Fund accounts for the activities of the City’s storm drainage utility. Refuse Fund – This Fund accounts for operations associated with the City’s garbage carts and recycling operations. Proprietary Funds:

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