2018 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Description of Funds: (Continued) Internal Service Funds: Equipment Fund – This Fund accounts for the City’s acquisition of larger pieces of equipment. Buildings Fund – This Fund accounts for the City’s funds accumulated for construction, improvement or major repairs of major public buildings. 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. Information and Technology Fund – This Fund accounts for the City’s funds accumulated for information technology resources. Self Insurance Fund –This Fund is used to account for all revenues and expenses associated with premiums, deductibles and claims for general liability and workers compensation policy through LMCIT. The City’s internal service funds are allocated between governmental and business-type activities and are combined, as allocated in Note 2, with the respective governmental activities and business-type activities in the government-wide financial statements. Fiduciary Funds: Escrow Agency Fund – This Fund accounts for the monies held for specific purposes for individuals, private organizations, other government units and other funds. Escrows are held on behalf of builders and developers, for security deposits and police evidence deposits. Holiday Lighting Agency Fund – This Fund accounts for the monies held for holiday lighting. Southwest Metro Drug Task Force Agency Fund – This Fund accounts for the activity related to the task force held by the City in a strictly custodial capacity. Component Unit Funds:

Electric Fund – This Fund accounts for the operations of the SPUC’s electric utility. Water Fund – This Fund accounts for the operations of the SPUC’s water utility.

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