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The following is a summary of the City's net assets: <br />Assets <br />Current and other assets <br />Capital assets, net of <br />depreciation <br />Total assets <br />Liabilities <br />Current and other liabilities <br />Long -term liabilities <br />Total liabilities <br />Net Assets <br />Invested in capital assets, <br />net of related debt <br />Restricted <br />Unrestricted <br />Total net assets <br />Governmental <br />Activities <br />2006 2005 <br />$ 38,735,783 $ 55,662,283 <br />52,028,348 31,478,456 <br />$ 90, 764,131 $ 87,140, 739 <br />$ 2,270,674 $ 3,851,214 $ 823,752 $ 203,371 <br />32,779,567 33,460,608 - - <br />$ 35, 050,241 $ 37, 311, 822 $ 823,752 $ 203,371 $ <br />$ 23,424,366 $ 12,267,296 <br />13, 860, 707 18, 296, 241 <br />18,428,817 19, 265, 380 <br />$ 55,713,890 $ 49,828,917 <br />$ 18,563,114 $ 17,217,271 <br />47,334,422 36,311,701 <br />- 13, 860, 707 18,296, 241 <br />17, 739, 362 17, 013, 900 36,168,179 36, 279, 280 <br />$ 65, 073, 784 $ 53,325, 601 $ 120, 787,674 $ 103,154, 518 <br />The City's financial position is the product of many factors. For example, the determination of the City's <br />investment in capital assets, net of related debt involves many assumptions and estimates, such as current <br />and accumulated depreciation amounts. A conservative versus a liberal approach to depreciation <br />estimates, as well as capitalization policies, will produce a very significant difference in the calculated <br />amounts. <br />The City has taken a conservative financial approach, carefully analyzing revenues and <br />expenditures /expenses to assure operation of a balanced budget. The ongoing management of revenue <br />and expenditures /expenses has continued to improve the City's net assets, and has resulted in improved <br />bond ratings. In 2006, the Moody's bond rating for the City was upgraded to an Aa3. This has also <br />allowed the City to continue to provide quality public services at a tax rate that is affordable. <br />At the end of the current fiscal year, the City is able to report positive balances in all three categories of <br />net assets, both for the government as a whole, as well as for its separate governmental and business -type <br />activities. <br />Net Assets <br />Business -Type <br />Activities <br />2006 2005 <br />2006 <br />Total <br />2005 <br />$ 57,298,897 $ 72,879,554 <br />99,362,770 67,790,157 <br />65, 897, 536 $ 53, 528, 972 $ 156, 661,667 $ 140,669, 711 <br />3,094,426 $ 4,054,585 <br />32,779,567 33,460,608 <br />35, 873,993 $ 37, 515,193 <br />47, 334,422 $ 36, 311, 701 $ 70, 758,788 $ 48,578, 997 <br />