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Management's Discussion and Analysis -Continued
<br />Total Expenses
<br />In reviewing total expenses in Table A-2 you will notice that there was an increase of 4.7 percent overall. Purchased Power (the
<br />amount the Utilities pays for the power distributed) increased 6.7 percent, however, Customer Expenses were decreased due to
<br />lower write-offs and the complete transfer of meter reading responsibilities internally that were previously contracted.
<br />CAPITAL ASSETS
<br />The Utilities' investment in capital assets for its business-type activities as of December 31, 201 I amounts to $49,251,237 (net of
<br />accumulated depreciation). This investment in capital assets includes land, buildings and improvements and equipment. A table
<br />summarizing [he balances by fund follows:
<br /> Increase
<br /> 2011 2010 (Decrease)
<br />Land $ 281,775 $ 281,775 $ -
<br />Landimprovements 18,898 21,424 (2,526)
<br />Buildings 2,177,370 2,289,154 (111,784)
<br />Equipment and machinery 1,198,402 1,027,943 170,459
<br />Infrastructure 45,369,066 46,056,683 (687,617)
<br />Construction in progress 205,726 418,985 (213,259)
<br />Total
<br />$ 49,251,237 $ 50,095,964 $ (844,7271
<br />The total decrease in the Utilities' investment in capital assets for the current fiscal year was 1.7 percent.
<br />Major capital asset events during the current fiscal year included [he following:
<br />• Again this year, the depreciation increase offset the smaller increase in assets, resulting in an actual decrease in capital
<br />assets.
<br />• The decrease in capital projects completed resulted in fewer assets being added, only $2.3 million.
<br />• Accumulated depreciation for the year increased $3 million from prior year's asset additions.
<br />Additional information on the Utilities' capital assets can be found in Note 2B starting on page 39 of this report.
<br />LONG-TERM DEBT
<br />At year end, the Utilities had $12,598,842 in long-term debt down from $13,795,640 in fiscal 2010. More detailed information
<br />about the Utilities' long-term liabilities is presented in the Notes to the Financial Statements on pages 41 - 44 and below:
<br />G.O. revenue bonds
<br />Revenue bonds
<br />Unamortized premium on bonds
<br />Promissory note
<br />Compensated absences payable
<br />OPEB liability
<br />Total
<br /> Increase
<br />2011 2010 (Decrease)
<br />$ 4,477,996 $ 5,014,746 $ (536,750)
<br />5,580,000 6,060,000 (480,000)
<br />45,656 49,750 (4,094)
<br />2,162,882 2,345,318 (182,436)
<br />296,549 295,730 819
<br />35,759 30,096 5,663
<br />$ 12,598,842 $ 13.795,640 $ (1,196,798)
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