2023 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023

KEB Abatement was established in 2019. KEB America, LLC is a leading manufacturer of automation products. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2029, which required the creation of 98 full-time equivalent new jobs in Shakopee. The total City abatement awarded was $289,263. The first year of disbursement occurred in 2022. During the year ended December 31, 2023, the total disbursed was $25,179. Cherne Abatement was established in 2020. Cherne Industries Incorporated is a manufacturer of mechanical plugs, deflection gauges, testing equipment, tools and accessories for residential, commercial, and industrial piping systems. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2031, which required the creation of 20 full-time equivalent new jobs in Shakopee and the relocation of 115 full-time equivalent jobs to Shakopee. The total City abatement awarded was $459,494. The first year of disbursement occurred in 2023. During the year ended December 31, 2023, the total disbursed was $33,449. transmitters, analyzers, and automation systems. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2023, which required the creation of 154 new full-time jobs in Shakopee. The first year of disbursement occurred in 2016. The total City abatement awarded was $590,496. The total county abatement awarded was $570,608 with an annual maximum award of $64,401. During the year ended December 31, 2023, the total disbursed was $289,940 with $128,802 from Scott County and $161,138 from the City. This included $146,782 related to prior years, which was held by the City, pending the resolution of a tax appeal. Shutterfly Abatement was established in 2014. Shutterfly, Inc. is an Internet-based social expression and personal publishing service that was founded in December of 1999. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2024, which required the creation of 258 new jobs in Shakopee. The first year of disbursement occurred in 2017. The total City abatement awarded was $758,771 with an annual maximum award of $89,431. The total county abatement awarded was $734,898 with an annual maximum award of $86,615. The abatement agreement was cancelled at the beginning of 2023 as a result of job creation goals no longer being met. NOTE 19 – TAX ABATEMENT AGREEMENT (CONTINUED) Emerson Abatement was established in 2013. Rosemount Emerson Process Management is a leading supplier of process management products and solutions, including control valves, regulators,

NOTE 20 – TAX INCREMENT FINANCING

The City has entered into eight Tax Increment Financing (TIF) agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tax Abatement Disclosures. The City's authority to enter into these agreements comes from Minnesota Statute 469. The City entered into these agreements for the purpose of economic development.

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