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Management Discussion and Analysis -Continued
<br />June 3, 2009
<br />Capital Asset and Debt Administration
<br />Capital Assets. The City's investment in capital assets for its governmental and business-type activities as of
<br />December 31, 2008, amounts to $20,985,345 (net of accmnulated depreciation). This investment in capital assets includes land,
<br />structures, improvements, machinery and equipment, park facilities, roads, highways and bridges.
<br />Major capital asset events during the current fiscal year included the following:
<br />• Completion of the purchase of a new public works facility
<br />• Purchase of land in Block 7 for downtown redevelopment.
<br />Additional information on the City's capital assets can be found in Note 3E on page 31 - 32 of this report.
<br />Capital Assets Net of Depreciation
<br /> Governmental Activities Business-type Activities
<br /> Increase Increase
<br /> 2008 2007 (Decrease) 2008 2007 (Decrease)
<br />Land $ 3,099,999 $ 2,594,350 $ 505,649 $ 186,000 $ - $ 186,000
<br />Buildings 1,084,142 814,597 269,545 406,410 - 406,410
<br />Constiuctioninprogress 1,647,301 1,730,567 (83,266) - - -
<br />Infrastiucture 6,863,178 6,536,423 326,755 7,088,325 6,681,890 406,435
<br />Machinery and equipment 460,699 488,944 (28,245) 149,291 138,502 10,789
<br />Total $ 13,155,319 $ 12,164,881 $ 990,438 $ 7,830,026 $ 6,820,392 $ 1,009,634
<br />Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $7,851,897. 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 decrease in General
<br />obligation bonds resulted from payment of the debt.
<br />Outstanding Debt
<br />Governmental Acti
<br />2008 2007
<br />General obligation bonds $ 7,851,897 $ 9,145,647
<br />Compensated absences payable 28,222 30,028
<br />Total $ 7,880,119 $ 9,175,675
<br />vibes Business-type Activities
<br />Increase Increase
<br />(Decrease) 2008 2007 (Decrease)
<br />$ (1,293,750) $ - $ - $ -
<br />(1,806) 9,608 9,377 231
<br />$ (1,295,556) $ 9,608 $ 9,377 $ 231
<br />Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 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 $372,405,100,
<br />which calculates to a debt margin of $11,172,153. Debt financed 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 $701,897 of general obligation
<br />debt outstanding leaving a debt margin of $10,470,256.
<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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