in Fund Balance – Budget and Actual

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 Business-type

Activities Activities $ 396,471 (104,450) 77,118 144 $ 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 .