2018 City of Shakopee Comprehensive Annual Financial Report

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

NOTE 10 – INTERFUND ASSETS/LIABILITIES The composition of interfund balances as of December 31, 2018 is as follows: Receivable Fund Payable Fund Amount

Capital Improvement Fund Capital Improvement Fund

TIF District No. 17

$

1,801,093

Nonmajor Governmental Funds

57,366 55,000 80,272

Internal Service Fund

City Hall

Sewer Fund

Refuse Fund

Total

$

1,993,731

The due from/due to other funds balance represents borrowing to eliminate a cash deficit. This will be repaid as funds are available. NOTE 11 – ADVANCE FROM/TO OTHER FUNDS The composition of advance from/to other funds as of December 31, 2018 is as follows: Receivable Fund Payable Fund Amount

General Fund

Economic Development Authority Economic Development Authority

$

973,050 125,750 640,220

Capital Improvement Fund

Sewer Fund

Refuse Fund

StormDrainage Fund Internal Service Fund

Internal Service Fund

1,540,000 1,241,394

Economic Development Authority

Total

$

4,520,414

Two advances between the General Fund and Economic Development Authority represents a long term interfund loan related to the Riverfront TIF 19 agreement for $711,205 and the Old City Hall TIF 20 agreement for $261,844.74, both to be repaid over 25 years with Tax Increment Financing at a rate of 4% interest. The advance between the Capital Improvement Fund and Economic Development Authority represents a long term interfund loan related to the Canterbury TIF 18 agreement to be repaid over 25 years with Tax Increment Financing at a rate of 4% interest. The advance between the Sewer Fund and Refuse Fund represents a long term interfund loan which was used to purchase garbage carts. This will be repaid over 10 years with revenue collected for cart usage at rate of 1% interest. The advance between the Internal Service fund and Economic Development Authority Fund represents two interfund loans. The first is a long term interfund loan which was used to purchase property, this will be repaid over 10 years with proceeds from the sale of land or tax levy at rate of 0% interest. The second represents a long term interfund loan which was used to purchase land which will be resold. This will be repaid once the parcels are sold or developed at rate of 0% interest. The advance between the Storm Drainage Fund and the Internal Service fund represents a long term interfund loan which was used as a financing source related to the building of the new City hall building. This will be repaid over 15 years with rent collection at rate of 1.25% interest. 73