2022 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022

Emerson Abatement was established in 2013. Rosemount Emerson Process Management is a leading supplier of process management products and solutions, including control valves, regulators, transmitters, analyzers, and automation systems. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2023, which required the creation of 154 new full-time jobs in Shakopee. The first year of disbursement occurred in 2016. The total City abatement awarded was $590,496. The total county abatement awarded was $570,608 with an annual maximum award of $64,401. The City is holding all 2022 payments pending the resolution of a tax appeal. Shutterfly Abatement was established in 2014. Shutterfly, Inc. is an Internet-based social expression and personal publishing service that was founded in December of 1999. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2024, which required the creation of 258 new jobs in Shakopee. The first year of disbursement occurred in 2017. The total City abatement awarded was $758,771 with an annual maximum award of $89,431. The total county abatement awarded was $734,898 with an annual maximum award of $86,615. During the year ended December 31, 2022, the total disbursed was $162,242 with $79,023 from Scott County and $83,219 from the City. Datacard Abatement was established in 2014. Datacard is the world’s largest issuer of protected, personalized ID cards, credentials, and credit cards. The City of Shakopee awarded an eleven-year economic development property tax abatement, ending in 2024, which required the creation of 100 new full-time jobs in Shakopee. The first year of disbursement occurred in 2014. The total City abatement awarded was $334,869 with an annual maximum award of $36,195. The total county abatement awarded was $324,324 with an annual maximum award of $35,055. During the year ended December 31, 2022, the total disbursed was $83,972 with $41,249 from Scott County and $42,723 from the City. This included the 2021 2nd half payment of $35,626, which was held by the City, pending the resolution of a tax appeal. The City has entered into five Tax Abatement Financing agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tax Abatement Disclosures. The City's authority to enter into these agreements comes from Minnesota Statute 469. The City entered into these agreements for the purpose of economic development. NOTE 19 – TAX ABATEMENT AGREEMENT Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City though tax revenues from the additional taxable value of the property generated by the development (tax abatement). The tax abatement agreements are as follows:

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