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<br />Management Discussion and Analysis - Continued
<br />April 20, 2005
<br />
<br />Capital Asset and Debt Administration
<br />
<br />Capital Assets. The City's investment in capital assets for its govenunental and business type activities as of December 31,
<br />2004, amounts to $14,098,586 (net of accumulated depreciation). This investment in capital assets includes land, structures,
<br />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 />. Construction in progress was a result of the Municipal Street and Hunter's Crossing projects
<br />
<br />Additional information on the City's capital assets can be found in Note 3C on pages 26 - 27 of this report.
<br />
<br /> Capital Assets Net of Depreciation
<br /> Governmental Activities Business-type Activities Total
<br /> 2004 2003 2004 2003 2004 2003
<br />Land $ 1,2] 3,300 $ 1,24],300 $ $ $ 1,213,300 $ 1,241,300
<br />Buildings 493,890 511,462 493,890 5]1,462
<br />Improvement other
<br />than building
<br />Machinery and equipment 396,681 389,707 396,681 389,707
<br />InfrastructurelPUC plant 3,562,894 3,50],852 4,383,529 4,471,837 7,946,423 7,973,689
<br />Construction in progress 2,661,] 58 603,879 ],387,134 246,105 4,048,292 849,984
<br />Total $ 8,327,923 $ 6,248,200 $ 5,770,663 $ 4,717,942 $ 14,098,586 $ 10,966,142
<br />
<br />Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of$6,] ]0,000. While all of the
<br />City's bonds have revenue streams, they are all backed by the full faith and credit of the City.
<br />
<br /> Outstanding Debt
<br /> Governmental Activities Business-type Activities Total
<br /> 2004 2003 2004 2003 2004 2003
<br />General obligation bonds $ 5,710,000 $ 3,065,000 $ $ $ 5,710,000 $ 3,065,000
<br />General obligation
<br />revenue bonds 230,000 400,000 470,000 400,000 700,000
<br />Total $ 5,710,000 $ 3,295,000 $ 400,000 $ 470,000 $ 6,1 ]0,000 $ 3,765,000
<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 />
<br />Additional information on the City's long-term debt can be found in Note 3D on pages 28 - 30 of this report.
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