2018 City of Shakopee Comprehensive Annual Financial Report

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

NOTE 6 – CAPITAL ASSETS (CONTINUED) Component unit capital asset activity for the year ended December 31, 2018 was as follows: Beginning Ending Balance Increases Decreases Balance Component Unit Capital Assets not being Depreciated: Land and Land Rights 5,097,532 $ - $ - $ 5,097,532 $ Construction in Progress 2,808,158 4,956,036 6,371,330 1,392,864 Total Capital Assets not being Depreciated 7,905,690 4,956,036 6,371,330 6,490,396

Capital Assets being Depreciated: Distribution

110,071,887 15,033,253

6,913,382 1,029,984

169,115 331,731

116,816,154 15,731,506

General

Total Capital Assets being Depreciated

125,105,140

7,943,366

500,846

132,547,660

Less Accumulated Depreciation

42,755,736

3,652,564

388,820

46,019,480

Total Capital Assets being Depreciated, Net

82,349,404

4,290,802

112,026

86,528,180

Component Unit Capital Assets, Net

90,255,094 $

9,246,838 $

6,483,356 $

$93,018,576

Depreciation expense was charged to functions/programs of the component units as follows: Component Units: Electric 2,237,527 $ Water 1,415,037

Total Depreciation Expense - Component Units

3,652,564 $

NOTE 7 – LEASES A. Operating Leases

The government leases office equipment under noncancelable operating leases. Total costs for such leases were $40,740 for the year ended December 31, 2018. The future minimum lease payments for these leases are as follows: Year Ending Dec. 31 Amount 2019 40,740 $ 2020 40,740 2021 10,185 Total 91,665 $ 68