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<br />Management Discussion and Analysis - Continued
<br />May 3, 2007
<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 [mancial position. In the case of the City,
<br />assets exceeded liabilities by $19,475,544 at the close ofthe most recent fiscal year.
<br />
<br />By far, the largest portion ofthe City's net assets (50.7 percent) reflects its investment in capital assets (e.g., land, buildings,
<br />machinery and equipment), less any related debt used to acquire those assets that are still outstanding. The City uses these capital
<br />assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's
<br />investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must
<br />be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
<br />
<br /> Summary of Net Assets
<br /> Governmental Activities Business-type Activities
<br /> Increase Increase
<br /> 2006 2005 (Decrease ) 2006 2005 (Decrease )
<br />$ 6,550,631 $ 6,864,839 $ (314,208) $ 3,476,637 $ 2,851,010 $ 625,627
<br /> 10,415,099 7,946,343 2,468,756 7,117,535 6,195,759 921,776
<br /> 16,965,730 14,811,182 2,154,548 10,594,172 9,046,769 1,547,403
<br /> 7,683,291 6,083,229 1,600,062 9,554 7,608 1,946
<br /> 379,705 266,437 113,268 11,808 30,056 (18,248)
<br /> 8,062,996 6,349,666 1,713,330 21,362 37,664 (16,302)
<br />
<br />Assets
<br />Current and other assets
<br />Capital assets
<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 of related debt
<br />Restricted for
<br />Future expansion
<br />Debt service
<br />Unrestricted
<br />
<br />921,776
<br />
<br />641,929
<br />
<br />Total net assets
<br />
<br />$ 1,563,705
<br />
<br />The decrease in current and other assets in governmental activities is attributed to the payment of the GO Temporary
<br />Improvement Bonds of2003 and the transfer of the storm water fund from a government-type activity to a business-type activity.
<br />Correspondingly, the increase in current and other assets in business-type activities is attributed to the transfer of the storm water
<br />fund from a government-type activity to a business-type activity.
<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 and Pheasant Marsh 3rd Addition.
<br />
<br />The increase in non-current liabilities outstanding in the governmental activities is attributed to the debt for the backage road and
<br />Hunters Crossing III projects (GO Improvement Bonds of2006A).
<br />
<br />An additional portion of the City's net assets (21.1 percent) represents resources that are subject to external restrictions on how
<br />they may be used. The remaining balance of unrestricted net assets ($5,484,173) 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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