|
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
<br />position. At December 31, 2005, the City's assets exceeded liabilities by $190,401,407, a decrease
<br />from 2004 by $3.8 million. The majority of this decrease can be attributed to a reduction of user fee
<br />revenue in the Business -Type Activities. Effective in 2006 both Water and Sewer rates will be
<br />increased to help remediate this problem and increase available cash balances. By far the largest
<br />portion of the City's net assets (68 percent) reflects its investment in capital assets (e.g. land, roads,
<br />storm sewers, water and sewer systems, buildings and equipment }, less an related debt used to
<br />acquire those assets that is still outstanding. Capital assets are used to provide services to citizens,
<br />and they are not available for future spending Although the investment in capital assets are reported
<br />net of related debt, it should be noted that the resources needed to repay this debt must be provided
<br />from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
<br />City of South Bend's Net Assets
<br />Table 1
<br />Governmental Business -Type
<br />Activities Activities Total
<br />2004 2005 2004 2005 2004 2005
<br />Current and other assets
<br />$13',859,344
<br />$146,134,848
<br />$35,393,136
<br />$31,884,533
<br />$171,252,480
<br />178,019,381
<br />Capital assets (net)
<br />112,635,198
<br />124,443,931
<br />157,790,563
<br />152,993,751
<br />270,425,761
<br />277,437,682
<br />Total assets
<br />248,494,542
<br />270,578,779
<br />193,183,699
<br />184,878,284
<br />441,678,241
<br />455,457,063
<br />Long -term liabilities
<br />outstanding
<br />163,133,137
<br />191,148,556
<br />62,695,870
<br />59,761,198
<br />225,829,007
<br />250,909,754
<br />Other liabilities
<br />16,760,834
<br />10,557,060
<br />4,847,108
<br />3,588,842
<br />21,607,942
<br />14,145,902
<br />Total liabilities
<br />179,893,971
<br />201,705,616
<br />67,542,978
<br />63,350,040
<br />247,436,949
<br />265,055,656
<br />Net assets:
<br />Invested in capital
<br />assets, net of related
<br />debt
<br />7,383,902
<br />35,777,247
<br />93,370,899
<br />94,833,960
<br />100,745,801
<br />130,611,207
<br />Restricted
<br />1,966,388
<br />6,138,257
<br />13,254,447
<br />17,942,700
<br />15,220,835
<br />24,080,957
<br />Unrestricted
<br />59,250,281
<br />26,957,659
<br />19,015,375
<br />8,751,584
<br />78,265,656
<br />35,709,243
<br />Total net assets $68,600,571 $68,873,163 $125,640,721 $121,528,244 $194,241,292 $190,401,407
<br />At the end of the current fiscal year the City is able to report positive balances in all three
<br />categories of net assets, both for the government as a whole, as well as for its separate
<br />governmental and business -type activities.
<br />The net assets for government activities decreased by $1.8 from $70.6 million in 2004 to
<br />$68.8 million in 2005. Part of this decrease is attributable to a reclassification of the
<br />parking garage net book value previously recorded in business -type activity. The business-
<br />7
<br />
|