2023 Annual Comprehensive Financial Report

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

The City has entered into subscription-based information technology arrangements (SBITAs) involving: • Document management software • Information technology security software • NOTE 7 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA)

Cloud backup services software • Public safety software • Registration and management software

The total of the City's subscription assets are recorded at a cost of $225,930, less accumulated amortization of $60,566.

NOTE 8 – 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 s 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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