2022 Annual Comprehensive Financial Report

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

Component unit capital asset activity for the year ended December 31, 2022 was as follows: NOTE 6 – CAPITAL ASSETS (CONTINUED)

Beginning Balance

Ending Balance

Increases

Decreases

Construction in Progress Total Capital Assets not being Depreciated Component Unit Capital Assets not being Depreciated: Land and Land Rights

$ 6,329,702

$

-

$

-

$ 6,329,702

8,760,622

6,348,416

7,304,904

7,804,134

15,090,324

6,348,416

7,304,904

14,133,836

Capital Assets being Depreciated: Distribution

17,185,337 134,137,822

3,292,617 9,192,910

-

20,432,305 143,330,732

General

45,649

Total Capital Assets being Depreciated

151,323,159

12,485,527

45,649

163,763,037

Less Accumulated Depreciation

57,817,178

4,810,948

45,649

62,582,477

Total Capital Assets being Depreciated, Net

93,505,981

7,674,579

-

101,180,560

Governmental Activities Capital Assets, Net

$108,596,305

$ 14,022,995

$ 7,304,904

$115,314,396

Electric Depreciation expense was charged to functions/programs of the Component Unit as follows: Component Units: $ 2,950,002

Water

1,860,946

4,810,948

Total Depreciation Expense- Component Unit Activities

NOTE 7 – LONG-TERM DEBT A. General Obligation Bonds

The City issues general obligation (G.O.) bonds to provide for financing tax increment projects, street improvements and construction of government buildings. Tax increment bond are paid from tax increments derived from increases in the taxable valuation of property within a redevelopment area in the City. Debt service on improvement bonds is covered by special assessment against benefited properties with any shortfalls being paid from general taxes. 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 payment each year. G.O. bonds currently outstanding are on the following page.

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