2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025

NOTE 6 – CAPITAL ASSETS (CONTINUED)

Depreciation expense was charged to functions/programs of the City as follows:

Business-Type Activities:

Sanitary Sewer Storm Drainage

$ 1,100,571

1,236,227

$ 2,336,798

Total Depreciation Expense- Business-Type Activities

Component unit capital asset activity for the year ended December 31, 2025 was as follows:

Beginning

Ending Balance

Balance

Increases

Decreases

Component Unit Capital Assets not being Depreciated: Land and Land Rights

$ 9,148,582

$

-

$

-

$ 9,148,582

Construction in Progress

5,993,408

9,476,816

10,752,164

4,718,060

Total Capital Assets not being Depreciated

15,141,990

9,476,816

10,752,164

13,866,642

Capital Assets being Depreciated/ Amortized: Infrastructure

158,428,774 46,651,146

14,140,691 5,791,368

5,228,943

167,340,522 52,170,394

Equipment

272,120

Subscription-Based Information Technology Software

1,893,803

135,565

-

2,029,368

being Depreciated Total Capital Assets

206,973,723

20,067,624

5,501,063

221,540,284

Less Accumulated Depreciation/ Amortization: Infrastructure

63,669,951 10,778,860

6,122,324

5,483,711

64,308,564 11,523,227

Equipment

744,367

-

Subscription-Based Information Technology Software

220,721

505,282

-

726,003

Total Accumulated Depreciation/ Amortization

74,669,532

7,371,973

5,483,711

76,557,794

Total Capital Assets being Depreciated/Amortized, Net

132,304,191

12,695,651

17,352

144,982,490

Governmental Activities Capital Assets, Net

$147,446,181

$ 22,172,467

$ 10,769,516

$158,849,132

Depreciation expense was charged to functions/programs of the Component Unit as follows:

Component Units:

Electric

$ 4,042,649

Water

3,329,324

$ 7,371,973

Total Depreciation Expense- Component Unit Activities

73