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<br />Management Discussion and Analysis - Continued
<br />May 29,2008
<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, 2007, amounts to $18,985,273 (net of accumulated 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 />. Initiation of the Fairview Street, CSAH 14 and Old Mill Road projects
<br />. Initiation of the purchase of a new public works facility
<br />. Improvements to Hidden Springs Park
<br />
<br />Additional information on the City's capital assets can be found in Note 3 on page 31 - 32 of this report.
<br />
<br /> Capital Assets Net of Depreciation
<br /> Governmental Activities Business-type Activities
<br /> Increase Increase
<br /> 2007 2006 (Decrease) 2007 2006 (Decrease)
<br />Land $ 2,594,350 $ 2,594,350 $ $ $ $
<br />Buildings 814,597 472,098 342,499
<br />Construction in progress 1,730,567 1,730,567
<br />Infrastructure 6,536,423 6,865,271 (328,848) 6,681,890 6,949,698 (267,808)
<br />Machinery and equipment 488,944 483,380 5,564 138,502 167,837 (29,335)
<br />Total $ 12,164,881 $ 10,415,099 $ 1,749,782 $ 6,820,392 $ 7,117,535 $ (297,143)
<br />
<br />Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of$9,145,647. While all of the
<br />City's bonds have revenue streams, they are all backed by the full faith and credit of the City. The net increase in General
<br />obligation bonds resulted from the payment of the GO Temporary Improvement Bonds and the issuance of debt for 2007
<br />improvements (GO Improvement Bonds, Series 2007 A).
<br />
<br /> Outstanding Debt
<br /> Governmental Activities Business-type Activities
<br /> Increase Increase
<br /> 2007 2006 (Decrease) 2007 2006 (Decrease)
<br />General obligation bonds $ 9,145,647 $ 7,652,291 $ 1,493,356 $ $ $
<br />Compensated absences payable 30,028 31,000 (972) 9,377 9,554 (177)
<br />Total $ 9,175,675 $ 7,683,291 $ 1,492,384 $ 9,377 $ 9,554 $ (177)
<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 taxable market value totals $357,863,100,
<br />which calculates to a debt margin of $7,157,262. Debt fmanced partially or entirely by special assessments is not applied against
<br />the City's debt limit, nor is debt financed by proprietary fund revenues. Currently the City has $745,646 of general obligation
<br />debt outstanding leaving a debt margin of $6,411 ,616.
<br />
<br />Additional information on the City's long-term debt can be found in Note 3F on pages 33 - 34 of this report.
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