2022 Annual Comprehensive Financial Report

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

The Refuse enterprise fund had a negative net position of $210,535 on December 31, 2022 as a result of disposing of the garbage carts. Future cart fee revenue which is used to pay off the advance to the sewer fund is anticipated to eliminate this deficit. The Employee Benefits internal service fund had a negative net position of $1,458,396 on December 31, 2022. This deficit has been in place for many years and is not expected to be resolved. Management’s position is that the cash balance should be sufficient enough to cover the current compensated absences and not necessarily the noncurrent portion of compensated absences. The TIF District No. 20 Enclave capital project fund had a negative fund balance of $2,533,625 on December 31, 2022 as a result of lot improvements at the old city hall site. Future tax increment revenue is anticipated to eliminate this deficit. The TIF District No. 19 Riverfront capital project fund had a negative fund balance of $1,549,194 on December 31, 2022 as a result of property acquisition costs. Future tax increment revenue and land sales are anticipated to eliminate this deficit. C. Excess of Expenditures Over Appropriations For the year ended December 31, 2022 expenditures exceeded appropriations in the following fund: B. Deficit Net Position and Fund Balance NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED) The TIF District No. 17 Amazon capital project fund had a negative fund balance of $449,441 on December 31, 2022 as a result of street improvements costs. Future tax increment revenue is anticipated to eliminate this deficit.

Excess of Expenditures Over Appropriations

Budget

Actual

Major

General Fund

$

32,794,860

$

32,803,463

$

8,603

Nonmajor

Economic Development Authority

$

525,175

$

1,321,111

$

795,936

The General Fund excess expenditures were funded by revenues in excess of expectations. The EDA board approved the use of fund balance to acquire the master lease for the River City Centre and professional services to begin planning for improvements to the building.

NOTE 4 – DEPOSITS AND INVESTMENTS

A. Deposits In accordance with applicable Minnesota Statutes, the City and the Component Unit maintains deposits at depository banks authorized by the City Council and the Commissioners.

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