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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, 2016 are as follows: <br />Governmental <br />Activities <br />Bus me ss -Type <br />Activities <br />Totals <br />.zoja2,115. zoja :Qlz :91G :Qlz <br />Land $ 6,848,022 $ 6,772,024 $ 868,513 $ 868,513 $ 7,716,535 $ 7,640,537 <br />Construction m progress 2,369983 7,429,397 597,780 1,199,547 2967,763 8,628,944 <br />Buddmgs and structures 30,685,842 26,636,674 6,058,847 6,058,847 36,744,689 32,695,521 <br />Improvements other thanbuddmgs 11,385,776 11,385,776 14,412,553 13,214,332 25,798,329 24,600,108 <br />Office equipment 657,196 657,196 657,196 657,196 <br />Motor vehicles 3,832,880 3,879,691 3,832,880 3,879,691 <br />Machmeryand equipment 6,336,603 6,146,967 834,318 639,505 7,170 921 6,786,472 <br />Infrastructure 33,733,257 28 922,328 - 33,733,257 28 922,328 <br />Water ands ewer lines - - 48,637,880 45,346,485 48,637,880 45,346,485 <br />95,849,559 91,830,053 71,409,891 67,327,229 167,259,450 159,157,282 <br />Less accumulated depreciation 27,968,849 25,078,364 19,450,297 17,987,084 47,419,146 43,065,448 <br />Totalcaprtalassets,net of depreciation $ 67,880,710 $ 66,751,689 $ 51,959,594 $ 49,340,145 $ 119,840,304 $ 116,091,834 <br />Depreciation expense $ 3,181,236 $ 2,875,485 $ 1,463,213 $ 1,359,825 $ 4,644,449 $ 4,235,310 <br />The City's investment in capital assets for its governmental and business -type activities as of December 31, 2016 <br />amounts to approximately $120 million (net of accumulated depreciation). <br />The governmental activities show an increase of $1,129,021 in capital assets attributable to an increase in <br />capitalized projects. Business -type activities show an increase of $2,619,449 in capital assets. The increase is <br />attributable to developer contributions to the City's utility system as part of their private developments. The <br />prior period adjustment mentioned earlier also increased capital assets for governmental and business -type <br />activities. Additional details of capital asset activity for the year can be found in Note 4 of the notes to basic <br />financial statements. <br />Long -Term Liabilities — The Debt Service Funds account for the accumulation of resources to finance all of <br />the City's general obligation bonds. The revenue sources for these funds include annual tax levies and special <br />assessments. At year-end, major debt service fund balance was $729,521 and non -major debt service fund <br />balance was $1,083,053 for a total of $1,812,574 in fund balance restricted for debt service. <br />The following table summarizes the City's long-term liabilities: <br />2016 2015 <br />Governmental Activities <br />Bonds $ 27,120,000 $ 27,060,000 <br />Capital equipment certificates 1,165,000 1,310,000 <br />Compensated absences 774,743 777,297 <br />Net Pension Liability 11,832,779 4,599,377 <br />Other Post -Employment Benefits (OPEB) 515,011 459,572 <br />Subtotal 41,407,533 34,206,246 <br />Business -type Activities <br />Net Pension Liability <br />Total <br />639,331 408,072 <br />$ 42,046,864 $ 34,614,318 <br />During the current fiscal year, the City saw a decrease of $85,000 in bonds and certificates. The City had one <br />debt issuance during the current year. The Series 2016A, were $1,650,000 General Obligation Street <br />Reconstruction Bonds used to finance the road reconstruction of Andrie Street and 164th Lane. Even though <br />new personnel was added in 2016, the compensated absence liability decreased slightly by $2,554 due to the <br />retirement of a few long -tern employees. Net pension liability saw a significant increase of $7,464,661 to reflect <br />the change in the City's proportionate share of the state-wide PERA pension plan obligation. Other Post - <br />Employment Benefits (OPEB) increased $55,439 due to the annual OPEB costs exceeding contributions as <br />actuarially determined with the parameters of GASB Statement Nos. 43 and 45. <br />35 <br />