2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025

NOTE 8 – LONG-TERM DEBT (CONTINUED)

C. Lease Payable

Current Year

Total Lease

Interest

Payment

Outflows Additional

Description

Liability

Rate

Issue Date

Terms

Payment Amount

Fire Fitness Equipment

$

4,577 7,426

10.07% 4.92% 3.64% 4.37% 4.37% 4.92% 10.43%

11/27/2024 10/1/2023 10/1/2023 12/1/2023 7/1/2022

24 months 60 months 60 months 63 months 48 months 60 months 60 months

$18,000 Yearly $27,023 Yearly $6,191 Monthly $79,718 Yearly $500 Monthly $671 Monthly $212 Monthly

$

- - - - - - -

Body Cameras Postage Machines

212,506 25,075 17,729 474,722 51,376 156,033

Fleet Cameras City Cameras

Cardio Equipment

5/5/2025 9/1/2025

IT Fiber Infrastructure

$

The city cameras were leased at the Police Department beginning 11/27/2024 for a term of 24 months after first installation which took 8 months at a fixed interest rate of 3.64%. The equipment will be returned at the end of the lease. The cardio equipment was leased at the Community Center. The lease is for 60 months. The lease can be renewed for an additional 30 day renewal but the City does not anticipate renewing for an additional term and the equipment will be returned. The interest rate on the lease is 10.07%. The body and fleet cameras were leased at the Police Department beginning 10/1/2023 for a term of 60 months at a fixed interest rate of 4.37%. The equipment will be returned at the end of the lease. The information technology fiber infrastructure were leased at the Fire Station beginning 9/1/2025 for a term of 60 months at a fixed interest rate of 4.92%. The lease is for the use of the fiber lines. At the end of the service terms the use will be terminated. The fitness equipment was leased at the Fire Department beginning 7/1/2022 for a term of 48 months at a fixed interest rate of 10.43%. The lease can be renewed for an additional 30 day renewal but the City does not anticipate renewing for an additional term and the equipment will be returned. The postage machines lease includes two machines, one at city hall and one at the police station beginning 12/1/2023 for a term of 63 months at a fixed interest rate of 4.92%. The lease can be renewed monthly at the end of the term but the City does not anticipate renewing for an additional term and the equipment will be returned. $726,231 has been recorded by the City as intangible right-to-use software arrangements in the funds noted below as capital assets. Due to the implementation of GASB Statement No. 96, these arrangements for software noted below met the criteria of a SBITA; thus, requiring it to be recorded by the City as intangible assets and a SBITA liability. These assets will be amortized over the lease terms noted below since the software will be replaced at the end of the arrangement term and replaced with upgraded software. There are no residual value guarantees in the arrangement provisions. The term ends are noted on the following page. D. SBITA Liability

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