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CITY OF HUGO, MINNESOTA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />Proprietary funds. The City of Hugo maintains one type of proprietary fund — enterprise funds.
<br />Enterprise funds are used to report the same functions presented as business -type activities in the
<br />government -wide financial statements. The City of Hugo uses enterprise funds to account for its sewer
<br />and water operations. Proprietary funds provide the same type of information as the government -wide
<br />financial statements, only in more detail. The proprietary fund financial statements provide information
<br />for the sewer and water fund, which is considered to be a major fund of the City of Hugo. The basic
<br />proprietary fund financial statements can be found on pages 27-29 and 78 of this report.
<br />Notes to the financial statements. The notes provide additional information that is essential to a full
<br />understanding of the data provided in the government -wide and fund financial statements. The notes to
<br />the financial statements can be found on pages 30-66 of this report.
<br />Other information. The combining and individual fund statements referred to earlier in connection with
<br />nonmajor governmental funds can be found on pages 69-77 of this report.
<br />GOVERNMENT -WIDE FINANCIAL ANALYSIS
<br />As noted earlier, net position may serve over time as a useful indicator of a government's financial
<br />position. In the case of the City of Hugo, assets exceeded liabilities by $74,609,968 at the close of the
<br />most recent fiscal year. A significant portion of the City of Hugo's net position (57 percent) reflects its
<br />investment in capital assets (e.g. land, buildings, vehicles, and equipment), less any related debt used
<br />to acquire those assets that is still outstanding. The balance of the City's net investment in capital
<br />assets increased 8 percent from the prior year due primarily to additional infrastructure completed by
<br />the City during the year as well as debt payments. The City of Hugo uses its capital assets to provide
<br />services to citizens; consequently, these assets are not available for future spending. Although the City
<br />of Hugo's investment in its capital assets is reported net of related debt, it should be noted that the
<br />resources needed to repay this debt must be provided from other sources, since the capital assets
<br />themselves cannot be used to liquidate these liabilities.
<br />Current and other assets
<br />Capital assets
<br />Total assets
<br />Deferred outflows of
<br />resources
<br />Long-term liabilities
<br />outstanding
<br />Other liabilities
<br />Total liabilities
<br />Deferred inflows of
<br />resources
<br />Net assets:
<br />Net investment in
<br />capital assets
<br />Restricted
<br />Unrestricted
<br />Total net position
<br />City of Hugo, Minnesota's Net Position
<br />Governmental Activities
<br />Business -Type
<br />Activities
<br />Total
<br />2015
<br />2014
<br />2015
<br />2014
<br />2015
<br />2014
<br />$ 21,616,812
<br />$ 26,146,620
<br />$ 19,257,201
<br />$ 18,180,330
<br />$ 40,874,013
<br />$ 44,326,950
<br />29,201,788
<br />28,110,507
<br />16,679,906
<br />16,206,682
<br />45,881,694
<br />44,317,189
<br />50,818,600
<br />54,257,127
<br />35,937,107
<br />34,387,012
<br />86,755,707
<br />88,644,139
<br />145,730
<br />31,474
<br />177,204
<br />10,148,889
<br />16,095,768
<br />249,735
<br />26,673
<br />10,398,624
<br />16,122,441
<br />1,662,474
<br />1,592,045
<br />72,581
<br />53,352
<br />1,735,055
<br />1,645,397
<br />11,811,363
<br />17,687,813
<br />322,316
<br />80,025
<br />12,133,679
<br />17,767,838
<br />157,245
<br />32,019
<br />189,264
<br />26,217,435
<br />23,454,304
<br />16,679,906
<br />16,206,682
<br />42,897,341
<br />39,660,986
<br />6,569,231
<br />7,022,529
<br />6,569,231
<br />7,022,529
<br />6,209,056
<br />6,092,481
<br />18,934,340
<br />18,100,305
<br />25,143,396
<br />24,192,786
<br />$ 38,995,722
<br />$ 36,569,314
<br />$ 35,614,246
<br />$ 34,306,987
<br />$ 74,609,968
<br />$ 70,876,301
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