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Management Discussion and Analysis - Continued
<br />May 19, 2010
<br />Capital Asset and Debt Administration
<br />Capital Assets
<br />. The City’s investment in capital assets for its governmental and business-type activities as of
<br />December31,2009, amounts to $23,332,004 (net of accumulated 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 />Purchase of land in Block 3 for downtown redevelopment.
<br />The start of a new trail project
<br />Street and Utility improvements
<br />Additional information on the City’s capital assets can be found in Note 3D start on page 59 of this report.
<br />Capital Assets Net of Depreciation
<br />Governmental ActivitiesBusiness-type Activities
<br />IncreaseIncrease
<br />20092008(Decrease)20092008(Decrease)
<br />Land$3,253,120$3,099,999$153,121$186,000$186,000$-
<br />Buildings1,046,8521,084,142(37,290)398,130406,410(8,280)
<br />Construction in progress4,469,7541,647,3012,822,453---
<br />Infrastructure6,635,5086,863,178(227,670)6,793,6117,088,325(294,714)
<br />Machinery and equipment423,881460,699(36,818)125,148149,291(24,143)
<br />Total$15,829,115$13,155,319$2,673,796$7,502,889$7,830,026$(327,137)
<br />Long-term debt
<br />. At the end of the current fiscal year, the City had total bonded debt outstanding of $13,691,543. While all of
<br />the City’s bonds have revenue streams, they are all backed by the full faith and credit of the City. The net increase in General
<br />obligation bonds resulted from issuance of new debt for 2009 capital projects and for refunding of existing debt.
<br />Outstanding Debt
<br />Governmental ActivitiesBusiness-type Activities
<br />IncreaseIncrease
<br />20092008(Decrease)20092008(Decrease)
<br />General obligation bonds$13,691,543$7,851,897$5,839,646$-$-$-
<br />Compensated absences payable33,85928,2225,63711,9679,6082,359
<br />Other postemployment benefits payable14,768-14,7684,664-4,664
<br />Total$13,740,170$7,880,119$5,860,051$16,631$9,608$7,023
<br />Minnesota statutes limit the amount of net general obligation debt a City may issueto 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 $387,124,300,
<br />which calculates to a debt margin of $11,613,729. 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 $656,543 of general obligation
<br />debt outstanding leaving a debt margin of $10,957,186.
<br />
<br />Additional information on the City’s long-term debt can be found in Note 3F start on page 61 of this report.
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