2019 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019

NOTE 5 – RECEIVABLES/UNAVAILABLE REVENUE (CONTINUED)

B. Forgivable Loan

The Economic Development Authority (EDA) offers a commercial exterior improvement program which is used to encourage property owners to maintain and invest in their properties in order to promote economic growth. The program offers up to 50 percent of project costs for eligible improvements as a no-interest forgivable loan. Forgiveness of the loan takes place over a five-year period with 20 percent of the aware forgiven annually. The city may extend or reduce the repayment period based on the dollar amount of the reward. As of December 31, 2019, the balance of these loans is $448,692. There has been an allowance for doubtful accounts recorded for the same amount, as it is fully expected that these loans will be forgiven.

NOTE 6 – CAPITAL ASSETS

Governmental capital asset activity for the year ended December 31, 2019 was as follows:

Beginning Balance

Ending Balance

Increases

Decreases

Governmental Activities:

Capital Assets not being

Depreciated:

Land Right-Of-Way

21,898,060 $

23,257,460 $ 494,746 4,380,173

1,359,400 $

$

- -

2,015,091 253,904

240,842 3,984,127

Total Capital Assets Construction in Progress

1,619,045

not being Depreciated

24,167,055

5,584,369

1,619,045

28,132,379

Capital Assets being

Depreciated: Buildings

163,936,298 24,694,014 73,189,038

6,790,466 497,597 103,606

- -

73,292,644 170,726,764 24,096,684

Infrastructure Machinery and Equipment Total Capital Assets being Depreciated

1,094,927

261,819,350

7,391,669

1,094,927

268,116,092

Less Accumulated Depreciation for: Buildings Infrastructure

14,246,837 89,809,274 9,836,153

1,605,660 5,118,524 1,506,912

- -

15,852,497 94,927,798 10,454,508

Machinery and Equipment Total Accumulated Depreciation

888,557

113,892,264

8,231,096

888,557

121,234,803

Total Capital Assets being Depreciated, Net

147,927,086

(839,427)

206,370

146,881,289

Governmental Activities Capital Assets, Net

172,094,141 $

4,744,942 $

1,825,415 $

175,013,668 $

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