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CITY OF HUGO, MINNESOTA <br />MANAGEMENT'S DISCUSSION AND ANALYSIS <br />Capital Asset and Debt Administration <br />Capital assets. The City of Hugo's investment in capital assets for its governmental and business -type <br />activities as of December 31, 2015, amounts to $45,881,694 (net of accumulated depreciation). This <br />investment in capital assets includes land, buildings and systems, improvements, machinery and <br />equipment, park facilities, roads, and highways. The total increase in the City of Hugo's reported <br />investment in capital assets for the current fiscal year was $1,606,972, or 3.6 percent. The increase in <br />governmental activities and in business -type activities capital assets is due primarily to various street <br />construction projects within the City during 2015. <br />City of Hugo, Minnesota's Capital Assets <br />(net of depreciation) <br />Additional information on the City of Hugo's capital assets can be found in Note 3:C. on pages 46-47 of <br />this report. <br />Long-term debt. At the end of the current fiscal year, the City of Hugo had $8,795,000 in bonds <br />outstanding. The entire amount of this debt is backed by the full faith and credit of the government. <br />City of Hugo, Minnesota's Outstanding Debt <br />General Obligation Bonds Payable <br />Governmental <br />Activities <br />Business -Type <br />Activities <br />Total <br />2015 2014 2015 2014 2015 2014 <br />General obligation bonds $ 8,795,000 $ 15,865,000 $ $ $ 8,795,000 $ 15,865,000 <br />13 <br />Governmental Activities <br />Business-TypeActivities <br />Totals <br />2015 <br />2014 <br />2015 <br />2014 <br />2015 <br />2014 <br />Land <br />$ 4,628,249 <br />$ 4,578,710 <br />$ 259,560 <br />$ 259,560 <br />$ 4,887,809 <br />$ 4,838,270 <br />Construction in progress <br />48,245 <br />48,245 <br />48,245 <br />48,245 <br />Buildings <br />3,763,902 <br />3,892,287 <br />16,221,606 <br />15,747,968 <br />19,985,508 <br />19,640,255 <br />Improvements other than <br />buildings <br />457,990 <br />597,334 <br />457,990 <br />597,334 <br />Machinery and equipment <br />2,175,999 <br />2,175,711 <br />150,495 <br />150,909 <br />2,326,494 <br />2,326,620 <br />Infrastructure <br />18,175,648 <br />16,866,465 <br />18,175,648 <br />16,866,465 <br />Total <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 />Additional information on the City of Hugo's capital assets can be found in Note 3:C. on pages 46-47 of <br />this report. <br />Long-term debt. At the end of the current fiscal year, the City of Hugo had $8,795,000 in bonds <br />outstanding. The entire amount of this debt is backed by the full faith and credit of the government. <br />City of Hugo, Minnesota's Outstanding Debt <br />General Obligation Bonds Payable <br />Governmental <br />Activities <br />Business -Type <br />Activities <br />Total <br />2015 2014 2015 2014 2015 2014 <br />General obligation bonds $ 8,795,000 $ 15,865,000 $ $ $ 8,795,000 $ 15,865,000 <br />13 <br />