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<br />Management Discussion and Analysis.- Continued
<br />May 4, 2006
<br />
<br />Capital Asset and Debt Administration
<br />
<br />Capital Assets. The City's investment in capital assets for its governmental and business-type activities as of
<br />December 31,2005, amounts to $14,142,102 (net ofaccumu1ated depreciation). This investment in capital assets includes land,
<br />structures, improvements, machinery and equipment, park facilities, roads, highways and bridges.
<br />
<br />Major capital asset events during the current fiscal year included the following:
<br />
<br />. Completion of the 2004 Municipal Street, Hunter's Crossing n and Water Tower projects
<br />
<br />Additional information on the City's capital assets can be found in Note 3C on page 29 - 30 oftbis report.
<br />
<br />Capital Assets Net of Depreciation
<br />
<br />Governmental Activities
<br />Increase
<br />2005 2004 (Decrease)
<br />
<br />Business-type Activities
<br />Increase
<br />
<br />2005
<br />
<br />2004 (Decrease)
<br />$ $
<br />246,105 (246,105)
<br />4,122,261 1,842,226
<br />70,605 160,667
<br />$ 4,438,971 $ 1,756,788
<br />
<br />Land S 1,213,300 S 1,213,300 $ $
<br />Buildings 476,319 675,209 (198,890)
<br />Construction in progress
<br />Inftastrocture 5,852,460 4,329,090 1,523,370 5,964,487
<br />Machinery and equipment 404,264 631,017 (226,753) 231,272
<br />Total S 7,946,343 $ 6,848,616 $ 1,097,727 $ 6,195,759
<br />
<br />Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $6,052,750. While all of the
<br />City's bonds have revenue streams, they are all backed by the full faith and credit of the City. This net increase in General
<br />obligation bonds resulted from the prepayment of the GO Improvement Bonds, Series 1998 and the issuance of debt for the Joint
<br />Police Station 2005A.
<br />
<br />Outstanding Debt
<br />
<br /> Business-type Activities
<br /> Increase
<br /> 2005 2004 (Decrease)
<br />$ $ $
<br /> 400,000 (400,000)
<br /> 7,608 5,648 1,960
<br />$ 7,608 $ 405,648 $ (398,040)
<br />
<br />Governmental Activities
<br />Increase
<br />2005 2004 (Decrease)
<br />
<br />General obligation bonds
<br />General obligation revenue bonds
<br />Compensated absences payable
<br />
<br />$ 6,052,750 $ 5,710,000 $ 342,750
<br />
<br />30,479 19,419 11,060
<br />
<br />. Total
<br />
<br />$ .6,083,229 $ 5,729,419 $ 353,810
<br />
<br />Minnesota statutes limit.the amount of net general obligation debt a City may issue to 2 percent of the market value of taxable
<br />property within the City. Net debt is debt payable solely from ad valorem taxes. The City currently has no debt applicable to this
<br />limit
<br />Additional information on the City's long-term debt can be found in Note 3D onpages 31 - 32 of this report.
<br />
<br />-x-
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