2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Property taxes, franchise taxes, licenses and interest associated with the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current period. Only the portion of special assessments receivable due within the current period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City.

Description of Funds:

Major Governmental Funds:

Capital Improvement Capital Project Fund – This Fund accounts for the capital projects of the City not accounted for in separate capital funds. Economic Development Authority Special Revenue Fund – This Fund accounts for development, improve housing and reduce blighted areas of the City. It also accounts for the River City Centre tenants. Taxes, grants lease revenue and contributions are the dedicated funding sources. TIF District No. 18 Canterbury Commons Capital Project Fund – This Fund accounts for tax increment financing district number 18- Canterbury Commons development project. General Fund – This Fund is the City’s primary operating fund. It accounts for all financial resources of the general City, except those required to be accounted for in another fund.

Proprietary Funds:

Sewer Fund – This Fund accounts for operations of the City’s sewer utility.

Storm Drainage Fund – This Fund accounts for the activities of the City’s storm drainage utility.

Refuse Fund – This Fund accounts for operations associated with the City’s garbage carts and recycling operations.

Internal Service Funds:

Park Assets Fund – This Fund accounts for the City’s funds accumulated for the replacement of park assets. Employee Benefits Fund – This Fund accounts for the City’s funds accumulated for compensated absences and OPEB. Buildings Fund – This Fund accounts for the City’s funds accumulated for construction, improvement or major repairs of major public buildings. Equipment Fund – This Fund accounts for the City’s funds accumulated for the acquisition of larger pieces of equipment.

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