NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 G. Net Investment in Capital Assets Net investment in capital assets is a component of net position, and consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of borrowing attributable to the acquisition, construction or improvement of those assets. The calculation of net investment in capital assets is shown below:
Capital assets, net Related debt Unspent debt proceeds Deferred loss on refunding Outstanding related accounts and contracts payable
Governmental Activities $ 396,471 (104,450) 77,118 144
Business-type Activities $ 337,203 -
(2,048)
(1,379)
$
Net investment in capital assets
367,234
$
335,824
H. Significant and Subsequent Events As a result of the spread of the COVID-19 coronavirus, economic uncertainties have arisen which may negatively affect the financial position, results of operations and cash flows of the City. The duration of these uncertainties and the ultimate financial effects cannot be reasonably estimated at this time. In March, 2022, The City and AURA entered into a promissory note in which the City loaned AURA $8,000,000 at a simple interest rate of 3% through March, 2025. Interest and principal payments are due annually. The loan is unsecured, though the City shall be authorized to withhold payment to AURA derived from incremental sales tax or public improvement fess in the event of default. The agreement may be extended for four one-year terms.
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