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Equipment Revolving Fund — This Capital Project Fund reported ayear-end fund balance of $1,673,000 which <br />represented a $272,183 decrease in fund balance due to a 50% share of the 2017 capital equipment purchases as <br />outlined in the 2017 General Fund adopted budget. <br />Road Reconstruction/Overlay Fund — This capital project fund increased overall fund balance $66,090. <br />The increase is attributable to funds received from bond proceeds and other sources to be used for the <br />reconstruction and overlay projects as outlined in the City's Long -Term Street Maintenance Plan. <br />Public Facilities Construction Fund — This Capital Project Fund had a year-end fund balance of $964,900, or <br />a decrease of $21,270 which was mostly attributed to expenditures to demolish the old city hall/police building. <br />Fire Station #2 Fund — This Capital Project Fund was created to fund the construction of the City's second fire <br />station. Remaining bond proceeds are being used to reduce debt service. The fund balance at year end 2017 <br />was $74,822. <br />Proprietary Funds — The City's Proprietary Funds provide the same type of information found in the <br />government -wide financial statements, but in more detail. The City's Enterprise Funds had a combined net <br />position balance of $92,162,136 at December 31, 2017. The City's Internal Service Fund had an ending net <br />position of $497,361. The financial activities of these funds have been summarized in previous charts within <br />this discussion. <br />The Enterprise Funds consist of the Water Utility Fund, Sewer Utility Fund, Street Light Utility Fund, Recycling <br />Utility Fund, and Storm Water Utility Fund. The growth in net position reflects the ongoing expansion and <br />provision of services to the various service areas of the utilities. <br />Capital Assets — The City's investment in capital assets (net of accumulated depreciation) for its governmental <br />and business -type activities as of December 31, 2017 are as follows: <br />Governmental Bus mes s-Type <br />Activities Activities Totals <br />2017 2016 2017 2016 2017 2016 <br />Land $ 6,848,022 $ 6,848,022 $ 868,513 $ 868,513 $ 7,716,535 $ 7,716,535 <br />Construction in progress 1,615,891 2,369,983 1,214,149 597,780 2,830,040 2,967,763 <br />Buildmgs and structures 29,402,849 30,685,842 6,058,847 6,058,847 35,461,696 36,744,689 <br />Improvements other than buildings 11,089,703 11,385,776 15,744,605 14,554,985 26,834,308 25,940,761 <br />Office equipment 668,396 657,196 - - 668,396 657,196 <br />Motor vehicles 3,968,685 3,832,880 - - 3,968,685 3,832,880 <br />Machinery and equipment 6,635,538 6,336,603 834,318 834,318 7,469,856 7,170,921 <br />Infrastructure 36,965,046 33,733,257 - - 36,965,046 33,733,257 <br />Water and sewer lines - - 50,097,118 48,495,448 50,097,118 48,495,448 <br />97,194,130 95,849,559 74,817,550 71,409,891 172,011,680 167,259,450 <br />Less accumulated depreciation 30,279,339 27,968,849 20,962,265 19,450,297 51,241,604 47,419,146 <br />Totalcaptalassets,net of depreciation $ 66,914,791 $ 67,880,710 $ 53,855,285 $ 51,959,594 $ 120,770,076 $ 119,840,304 <br />Depreciation expense $ 3,335,799 $ 3,181,236 $ L51L968 $ 1,463,213 $ 4,847,767 $ 4,644,449 <br />The City's investment in capital assets for its governmental and business -type activities as of December 31, 2017 <br />amounts to approximately $121 million (net of accumulated depreciation). <br />The governmental activities show a decrease of $965,919 in capital assets attributable to the demolition of the <br />old city hall. Business -type activities show an increase of $1,895,691 in capital assets. The increase is <br />attributable to developer contributions to the City's utility system as part of their private developments. <br />Additional details of capital asset activity for the year can be found in Note 4 of the notes to basic financial <br />statements. <br />35 <br />