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<br />Management Discussion and Analysis - Continued
<br />May 29,2008
<br />
<br />Government-wide Financial Analysis
<br />
<br />As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City,
<br />assets exceeded liabilities by $20,100,475 at the close of the most recent fiscal year.
<br />
<br />By far, the largest portion of the City's net assets (49.6 percent) reflects its investment in capital assets (e.g., land, buildings,
<br />machinery and equipment); less any related debt used to acquire those assets that are still outstanding. The City uses these capital
<br />assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's
<br />investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must
<br />be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
<br />
<br />Assets
<br />Current and other assets
<br />Capital assets
<br />
<br /> Summary of Net Assets
<br />Governmental Activities Business-type Activities
<br /> Increase Increase
<br />2007 2006 (Decrease) 2007 2006 (Decrease)
<br />$ 6,918,012 $ 6,550,631 $ 367,381 $ 3,963,867 $ 3,476,637 $ 487,230
<br />12,164,881 10,415,099 1,749,782 6,820,392 7,1l7,535 (297,143)
<br />19,082,893 16,965,730 2,117,163 10,784,259 10,594,172 190,087
<br />9,175,675 7,683,291 1,492,384 9,377 9,554 (I 77)
<br />562,433 379,705 182,728 19,192 11,808 7,384
<br />9,738,108 8,062,996 1,675,112 28,569 21,362 7,207
<br />
<br />Total assets
<br />
<br />Liabilities
<br />Noncurrent liabilities outstanding
<br />Other liabilities
<br />
<br />Total liabilities
<br />
<br />Net assets
<br />Invested in capital assets,
<br />net ofrelated debt
<br />Restricted for
<br />Future expansion
<br />Debt service
<br />Unrestricted
<br />
<br />(297,143)
<br />
<br />480,023
<br />
<br />$ 182,880
<br />
<br />Total net assets
<br />
<br />The increase in current and other assets in governmental activities is attributed to unspent bond sale proceeds to be expended in
<br />2008. The increase in current and other assets in business-type activities is attributed to the interfund loan to the general fund for
<br />Hidden Springs Park improvements and the purchase of the new public works facility.
<br />
<br />The increase in capital assets in the government-type activities and the business-type activities is attributed to improvements
<br />completed in Hunters Crossing III Addition, Pheasant Marsh 3rd Addition, the purchase of a new public works facility and
<br />improvements to Hidden Springs Park.
<br />
<br />The increase in non-current liabilities outstanding in the governmental activities is attributed to the debt for the CSAH 14, Old
<br />Mill Road and Fairview Street projects (GO Improvement Bonds of2007A).
<br />
<br />An additional portion of the City's net assets (18.6 percent) represents resources that are subject to external restrictions on how
<br />they may be used. The remaining balance of unrestricted net assets ($6,401,925) may be used to meet the City's ongoing
<br />obligations to citizens and creditors.
<br />
<br />At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, both for the
<br />City as a whole, as well as for its separate governmental and business-type activities.
<br />
<br />-v-
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