2023 Annual Comprehensive Financial Report

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

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED)

A. Budgetary Information (Continued)

The 2022A GO Tax Increment Revenue Bond debt service fund had a negative fund balance of $90,849 on December 31, 2023 as a result of less increment received than originally forcasted. Future tax increment revenue is anticipated to eliminate this deficit. The TIF District No. 20 Enclave capital project fund had a negative fund balance of $2,404,535 on December 31, 2023 as a result of lot improvements at the former 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 $1,615,149 on December 31, 2023 as a result of pubic infrastructure costs. Future tax increment revenues are anticipated to eliminate this deficit. The TIF District No. 18 Canterbury Common capital project fund had a negative fund balance of $2,226,524 on December 31, 2023 as a result of construction on River City Centre and roads in the Canterbury district. Future tax increment revenues are anticipated to eliminate this deficit. 6. Budgeted amounts are as originally adopted and as amended in December by the City Council. Budgeted expenditure appropriations lapse at year-end. through bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls and budgets are not adopted. An annual budget is adopted for the General Fund and EDA. Annual appropriated budgets are not adopted for Debt Service Funds because effective budgetary control is alternatively achieved Council approval. The City Council may authorize transfer of budgeted amounts between divisions within any fund. Management may amend budgets within a division level, so long as the total division budget is not changed. B. Deficit Net Position and Fund Balance 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution after obtaining taxpayer comments. 4. Expenditures may not legally exceed budgeted appropriations at the division level. The division level expenditures are presented in the schedule of revenues, expenditures and changes in fund balances – budget and actual – general fund. No fund’s budget can be increased without City In August of each year, City staff submits to the City Council, a proposed operating budget for the year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them for the upcoming year. 1. 5.

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