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Management Discussion and Analysis -Continued
<br />June 3, 2009
<br />Government-wide Financial Analysis
<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 $20,558,681 at the close of the most recent fiscal year.
<br />By far, the largest portion of the City's net assets (40.5 percent) reflects its investment in capital assets (e.g., land, buildings,
<br />machinery and equipment); less any related debt used to acquire those assets that are still outstanding. The City uses these capital
<br />assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's
<br />investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must
<br />be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
<br />Summary of Net Assets
<br />Assets
<br />Current and other assets
<br />Capital assets
<br />Total assets
<br />Liabilities
<br />Noncurrent liabilities outstanding
<br />Other liabilities
<br />Total liabilities
<br />Net assets
<br />Invested in capital assets,
<br />net of related debt
<br />Restricted for
<br />Future expansion
<br />Debt service
<br />Unrestricted
<br />Total net assets
<br />2008
<br />Governmental Activities Business-type Activities
<br />Increase Increase
<br />2007 (Decrease) 2008 2007 (Decrease)
<br />$ 4,152,677 $ 6,918,012 $ (2,765,335) $ 3,912,486 $ 3,963,867 $ (51,381)
<br />13,155,319 12,164,881 990,438 7,830,026 6,820,392 1,009,634
<br />17,307,996 19,082,893 (1,774,897) 11,742,512 10,784,259 958,253
<br />7,880,119 9,175,675 (1,295,556) 9,608 9,377 231
<br />338,053 562,433 (224,380) 264,047 19,192 244,855
<br />8,218,172 9,738,108 (1,519,936) 273,655 28,569 245,086
<br />675,483 3,148,381 (2,472,898) 7,830,026
<br />- - - 71,631
<br />2,846,010 3,658,146 (812,136) -
<br />5,568,331 2,538,258 3,030,073 3,567,200
<br />6,820,392 1,009,634
<br />71,631 -
<br />3,863,667 (296,467)
<br />$ 9,089,824 $ 9,344,785 $ (254,961) $ 11,468,857 $ 10,755,690 $ 713,167
<br />The decrease in current and other assets in goverrunental activities is attributed to expenditures in 2008 from bond sale proceeds
<br />received in 2007.
<br />The increase in capital assets in the government-type activities and the business-type activities is attributed acquisition of the
<br />Public Works Facility at 2085 Cedar Street and land purchase in Block 7 downtown.
<br />The substantial decrease in non-current liabilities outstanding in the governmental activities is attributed to early call and pay off
<br />of bonds attributed to 2001 and 2002 bond issues.
<br />An additional portion of the City's net assets (14.2 percent) represents resources that are subject to external restrictions on how
<br />they maybe used. The remaining balance of unrestricted net assets ($9,321,531) maybe used to meet the City's ongoing
<br />obligations to citizens and creditors.
<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 />-V-
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