2023 Annual Comprehensive Financial Report

CITY OF SHAKOPEE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL FUNDS

For the Year Ended December 31, 2023

Net Change in Fund Balances - Governmental Funds

$ 1,132,180

Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense.

13,397,322 (6,769,665)

Capital Outlays

Depreciation Expense

(70,299)

Loss on Disposal of Capital Assets

3,505,703 386,652

Contributed Assets Leased Equipment

(61,675) 29,297 (13,924)

Amortization Expense on Leases

SBITA Equipment

Amortization Expense on SBITA Equipment

Current year amortization of bond premium Governmental funds report the effects of bond premiums when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due and thus requires use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. Lease issuances are recognized as an other financing source in the governmental funds but as a decrease in net assets in the Statement of Activities. SBITA issuances are recognized as an other financing source in the governmental funds but as a decrease in net assets in the Statement of Activities. Certain revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Payments on SBITAs are recognized as expenditures in the governmental funds but as an increase in the net position in the Statement of Activities. Payments on leases are recognized as expenditures in the governmental funds but as an increase in the net position in the Statemen of Activities. Principal payments on long-term debt are recognized as expenditures in the governmental funds but as an increase in the net position in the Statement of Activities.

1,960,000

57,170

26,708

69,566

169,616

(386,652)

(29,297)

1,449 53,901

Special Assessments Delinquent Special Assessments Deferred

(3,076,724)

Intergovernmental

OPEB obligations are recognized when paid in the government funds but recognized when incurred in the Statement of Activities

30,575

Delinquent receivables will be collected this year, but are not available soon enough to pay for the current period's expenditures and, therefore, are not revenues in the funds. Governmental funds recognized pension contributions as expenditures at the time of payment whereas the statement of activities factors in items related to pensions on a full accrual perspective.

11,922

(1,907,127)

Pension Expense

Internal service funds are used by management to charge the costs of certain activities such as buildings, equipment, park assets and employee benefits to individual funds. (See Note 2.B.)

5,403,569

Change in Net Position - Governmental Activities

$ 13,920,267

The Notes to the Financial Statements are an integral part of this statement.

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