|
<br />Management Discussion and Analysis - Continued
<br />May 3,2007
<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, 2006, amounts to $17,532,634 (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 Backage Road and Hunter's Crossing III projects
<br />
<br />Additional information on the City's capital assets can be found in Note 3C on page 31 - 32 of this report.
<br />
<br /> Capital Assets Net of Depreciation
<br /> Governmental Activities Business-type Activities
<br /> Increase Increase
<br /> 2006 2005 (Decrease ) 2006 2005 (Decrease )
<br />Land $ 2,594,350 $ 1,213,300 $ 1,381,050 $ $ $
<br />Buildings 472,098 476,319 (4,221)
<br />Infrastructure 6,865,271 5,852,460 1,012,811 6,949,698 5,964,487 985,211
<br />Machinery and equipment 483,380 404,264 79,116 167,837 231,272 (63,435)
<br />Total $ 10,415,099 $ 7,946,343 $ 2,468,756 $ 7,117,535 $ 6,195,759 $ 921,776
<br />
<br />Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of$7,652,291. While all of the
<br />City's bonds have revenue streams, they are all backed by the full faith and credit ofthe City. This net increase in General
<br />obligation bonds resulted from the payment of the GO Temporary Improvement Bonds and the issuance of debt for the Backage
<br />Road and Hunters Crossing III projects (GO Improvement Bonds, Series 2006A).
<br />
<br /> Outstanding Debt
<br /> Governmental Activities Business-type Activities
<br /> Increase Increase
<br /> 2006 2005 (Decrease ) 2006 2005 (Decrease )
<br />General obligation bonds $ 7,652,291 $ 6,052,750 $ 1,599,541 $ $ $
<br />Compensated absences payable 31,000 30,479 521 9,554 7,608 1,946
<br />Total $ 7.683.291 $ 6.083,229 $ 1.600,062 $ 9.554 $ 7.608 $ 1.946
<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 on pages 33 - 34 of this report.
<br />
<br />-x-
<br />
|