2022 Annual Comprehensive Financial Report

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

NOTE 5 – RECEIVABLES/UNAVAILABLE REVENUE

A. Taxes and Assessments Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current year, the various components of unavailable revenue reported in the governmental funds were as follows: Delinquent Delinquent Deferred Property Special Special Intergovernmental Taxes Assessments Assessments Revenue Total

General Fund

$ 129,813

$

2,444 2,104

$

52,079

$

-

$ 184,336 4,521,183

Capital Improvement

-

1,442,355

3,076,724

Nonmajor Funds

2,723

379

333,999

-

337,101

Total

$ 132,536

$

4,927

$ 1,828,433

$

3,076,724

$ 5,042,620

B. Lease Receivable As of December 31, 2022 the city had the following lease receivable:

Current Year

Other

Issue Date

Discount

Resources Inflow of

Received Payments

Year End Balance at

Description

Rate

08/01/22 04/01/22 01/01/22

$

125,116 18,000 11,931

Ice Arena Dryland Room Shakopee Cell Towers

$

-

$

105,114 251,766

1.30% 1.80%

722

River City Centre

6,207

1,806,186

0.44%-1.80%

$

2,163,066

Under the Shakopee cell tower lease, the vendor pays the city $962.16 per month for 2 months for operating cell tower leases in the City of Shakopee. Each February lease payments increase 4% until the final payment on January 2040. Each term is 5 years and if cancelled must be cancelled prior to the start of the term. Under the Shakopee Ice Arena Dryland Room lease, the orthopedic vendor pays the city $2,000 per month for twelve months in exchange for operating its business within a 6,100 square foot space in the dryland room of the Ice Arena building. The monthly rent increases 2.5% per year for an additional four years. The lessee makes an additional variable payment equal to 5 percent of gross sales of all unlicensed athletic training services not to exceed $6,000.

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