2023 Annual Comprehensive Financial Report

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

The Scott County Community Development Agency (CDA) issued its Governmental Refunding Bonds (City of Shakopee, Minnesota – General Obligation), Series 2012D (Northridge Project), on November 24, 2020, in the original aggregate principal amount of $4,000,000 (the “Series 2012B Bonds”). The Series 2020B Bonds are secured the net revenues of the housing component of the Project and a pledge of the full faith and credit of the City. The Series 2020B Bonds are currently outstanding in the principal amount of $3,455,000 and mature on February 1, 2034. If housing lease revenues are insufficient to pay the principal of and interest on the Series 2020B Bonds, the City may be called upon to levy ad valorem taxes. To date, no funds of the City have been used to pay principal of or interest on the 2020B Bonds. NOTE 9 – NON-EXCHANGE FINANCIAL GUARANTEE (CONTINUED) Conduit debt obligations are certain limited obligation revenue bonds or similar debt instruments issued for the express purpose of providing capital financing for a specific third party. The City has issued various revenue bonds to provide funding to private-sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City has no obligation for such debt beyond the resources provided by related leases or loans. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. NOTE 10 – CONDUIT DEBT OBLIGATIONS

As of December 31, 2023, the following conduit debt was outstanding:

Original Amount of Issue

06/18/14 Issue Date of

Outstanding Balance

Project

St. Francis Regional Medical Center

41,865,000

$

28,105,000

Health Care Facilities Revenue Refunding Bond

Series 2014

52,440,000

51,620,000

12/01/18

Benedictine Health System Obligated Group Senior Housing Revenue Bonds Series 2018

Total

$

79,725,000

NOTE 11 – INTERFUND ASSETS/LIABILITIES

The composition of interfund balances as of December 31, 2023 is as follows:

Receivable Fund

Amount

Payable Fund

Capital Improvement Fund Capital Improvement Fund

Economic Development Authority Fund Nonmajor Governmental Funds

$

15,653 89,746 658,862

Sewer Fund

Refuse Fund

Total

$

764,261

The due from/due to other funds balance represents borrowing to eliminate a cash deficit. This will be repaid as funds are available.

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