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Management Discussion and Analysis - Continued
<br />May 19, 2010
<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 $21,801,373 at the close of the most recent fiscal year.
<br />By far, the largest portion of the City’s net assets (56.1 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 thesecapital
<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 />Governmental ActivitiesBusiness-type Activities
<br />IncreaseIncrease
<br />20092008(Decrease)20092008(Decrease)
<br />Assets
<br />Current and other assets$9,338,395$4,152,677$5,185,718$3,701,352$3,912,486$(211,134)
<br />Capital assets15,829,11513,155,3192,673,7967,502,8897,830,026(327,137)
<br />Total assets25,167,51017,307,9967,859,51411,204,24111,742,512(538,271)
<br />Liabilities
<br />Noncurrent liabilities outstanding13,740,1707,880,1195,860,05116,6319,6087,023
<br />Other liabilities553,851338,053215,798259,726264,047(4,321)
<br />Total liabilities14,294,0218,218,1726,075,849276,357273,6552,702
<br />Net assets
<br />Invested in capital assets,
<br />net of related debt4,725,463675,4834,049,9807,502,8897,830,026(327,137)
<br />Restricted for
<br />Future expansion---71,63171,631-
<br />Debt service3,887,8172,846,0101,041,807---
<br />Unrestricted2,260,2095,568,331(3,308,122)3,353,3643,567,200(213,836)
<br />Total net assets$10,873,489$9,089,824$1,783,665$10,927,884$11,468,857$(540,973)
<br />An additional portion of the City’s net assets (18.2 percent) represents resources that are subject to external restrictions on how
<br />unrestricted net assets
<br />they may be used. The remaining balance of ($5,613,573) may be 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. The same situation held true for the prior
<br />year.
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