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CAPITAL ASSETS AND LONG-TERM LIABILITIES
<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, 2023 are as follows:
<br />Capital Assets - Not Depreciated
<br />Capital Assets - Depreciated
<br />Governmental Business -Type
<br />Activities Activities
<br />Totals
<br />2023 2022 2023 2022 2023 2022
<br />$ 18,176,090 $ 10,772,232 $ 9,717,921 $ 2,329,071 $ 27,894,011 $ 13,101,303
<br />79,668,013 77,499,164 63,637,230 61,157,637 143,305,243 138,656,801
<br />Total capital assets, net of depreciation $ 97,844,103 $ 88,271,396 $ 73,355,151 $ 63,486,708 $ 171,199,254 $ 151,758,104
<br />Depreciation expense $ 4,809,070 $ 4,535,799 $ 1,983,473 $ 1,893,088 $ 6,792,543 $ 6,428,887
<br />The City's investment in capital assets for its governmental and business -type activities as of December 31, 2023
<br />amounts to approximately $171 million (net of accumulated depreciation).
<br />The governmental activities show a net increase of $9,572,707 in capital assets attributable to the construction
<br />and reconstruction of City streets. Business -type activities show a net increase of $9,868,443 in capital assets.
<br />The increase is attributable to developer contributions to the City's utility system as part of their private
<br />developments and the construction of a water treatment plant. Additional details of capital asset activity for the
<br />year can be found in Note 5 of the notes to basic financial statements.
<br />Long -Term Liabilities — The Debt Service Funds account for the accumulation of resources to finance all of
<br />the City's governmental activity general obligation bonds. The revenue sources for these funds include annual
<br />tax levies and special assessments. At year-end, the City had fund balance of $780,840 restricted for debt service.
<br />The following table summarizes the City's long-term liabilities:
<br />2023 2022
<br />Governmental Activities
<br />G.O. improvement bonds $ 39,480,000 $ 34,895,000
<br />Capital equipment certificates 1,495,000 260,000
<br />Unamortized bond premiums 2,099,612 1,951,694
<br />Arbitrage liability 166,156 -
<br />Compensated absences payable 1,197,478 1,069,926
<br />Net pension liability 7,103,501 15,256,095
<br />Total OPEB liability 794,822 796,286
<br />Subtotal 52,336,569 54,229,001
<br />Business -type Activities
<br />Net pension liability
<br />520,046 716,367
<br />Total $ 52,856,615 $ 54,945,368
<br />During the current fiscal year, the City saw an increase of $5,820,000 in bonds and certificates. The City had
<br />one debt issuance during the current year. The series 2023A, were $8,315,000 General Obligation Bonds and
<br />was broke into two issues: $6,915,000 applicable to the Tax Increment Fund and $1,400,000 to Capital
<br />Equipment. The Tax Increment Fund portion of the bond was issued to fund infrastructure improvements in the
<br />COR area such as mass grading, tree clearing and Ferret Street reconstruction. The Capital Equipment portion
<br />will be used to fund some of the capital equipment purchases outlined in the City's 2024 General Fund Budget.
<br />The new bond issue resulted in an increase in bond premium. Arbitrage liability was calculated on the 2022A
<br />bond issue based on gains made in 2023. Due to higher wages and employees retaining larger balances at year
<br />end, the compensated absence liability increased by $127,552. Net pension liability saw a large decrease of
<br />$8,348,915 to reflect the change in the City's proportionate share of the state-wide PERA pension plan
<br />obligations. Other Post -Employment Benefits (OPEB) decreased $1,464 due to annual OPEB contributions
<br />slightly exceeding costs as actuarially determined with the parameters of GASB Statement No. 75.
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