2022 Annual Comprehensive Financial Report

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

NOTE 7 – LONG-TERM DEBT (CONTINUED)

B. Components of Long-Term Liabilities

Date Issue

Interest

Original

Due Within

Final Maturity

Principal

Rates

Outstanding

One Year

Issue

Governmental Activities:

G.O. Bonds:

G.O. Tax Abatement

3.00%-5.00%

$

23,745,000

Bonds 2016A

01/21/16

29,500,000

02/01/36

$ 1,330,000

G.O. Tax Increment Bonds:

410,000 220,000

2019A 2020A 2022A

10/17/19 07/02/20 05/19/22

2.00%-4.00% 3.00% 2.25%-5.00%

8,165,000 5,910,000 4,220,000

02/01/36 02/01/37 08/01/41

5,910,000 8,165,000 4,010,000

-

G.O. Improvement Bonds:

45,920,000 4,090,000

-

3.00%

2022A

05/19/22

4,090,000

02/01/33

Total G.O. Bonds

1,960,000

- 41,036

Unamortized Premiums

2,287,279

Lease Payable

113,803

Compensated Absences

2,982,037

1,341,917

Total Governmental Activities

$

51,303,119

$ 3,342,953

Business-Type Activities

Compensated Absences

$

69,079

$

31,085

Tax abatement bonds listed above were issued to finance acquisition and construction of capital facilities. Improvement bonds provided the financing for street construction projects. Tax increment bonds provided the financing for the construction of streets and utilities related to a redevelopment area in the City. For the most part, the General Fund and the Employee Benefits Internal Service Fund are typically used to liquidate governmental compensated absences payable.

C. Lease Payable

Current Year

Total Lease

Interest

Payment

Outflows Additional

Liability

Rate

Issue Date

Terms

Payment Amount

Description

7/1/2022 1/1/2022

$

23,989 89,814 113,803

10.43% 7.48%

$671 Monthly $3,395 Monthly

48 months 41 months

Fire Fitness Equipment Cardio Equipment

$

- -

$

The cardio equipment was leased at the Community Center. The lease is for 41 months. The lease can be renewed for an additional 30 day renewal but the City does not anticipate renewing for an additional term and the equipment will be returned. The interest rate on the lease is 7.48%. The fitness equipment was leased at the Fire Department beginning 7/1/2022 for a term of 48 months at a fixed interest rate of 10.43%. The lease can be renewed for an additional 30 day renewal but the City does not anticipate renewing for an additional term and the equipment will be returned.

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