2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024

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

• Information technology security software • 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 $614,342, less accumulated amortization of $235,324.

NOTE 8 – LONG-TERM DEBT

A. General Obligation Bonds

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. The City issues general obligation (G.O.) bonds to provide for financing tax increment projects, street improvements and construction of government buildings. Tax increment bonds 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.

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