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A portion of the City's net assets (37.6 %) reflects its investment in capital assets (e.g., land, buildings, <br />machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. <br />The City uses these capital assets to provide services to citizens; consequently, these assets are not <br />available for future spending. Although the City's investment in its capital assets is reported net of <br />related debt, it should be noted that the resources needed to repay this debt must be provided from other <br />sources, since the capital assets themselves cannot be used to liquidate these liabilities. <br />The remaining balance of unrestricted net assets ($110.8 million) may be used to meet the government's <br />ongoing obligations to citizens and creditors. <br />At the end of the current fiscal year, the City of San Marcos is able to report positive balances in all <br />three categories of net assets, both for the government as a whole, as well as for its separate <br />governmental and business -type activities. The same situation held true for the prior fiscal year. <br />Current and other assets <br />Capital assets <br />Total assets <br />Long -term liabilities <br />outstanding <br />Other liabilities <br />Total liabilities <br />Net assets: <br />Invested in capital assets, <br />net of related debt <br />Restricted <br />Unrestricted <br />Total net assets <br />TABLE 1 <br />CITY OF SAN MARCOS' NET ASSETS <br />Governmental Activities <br />2007 2006 <br />Business -type Activities <br />Totals <br />2007 2006 <br />$ 73,966,873 $ <br />45,969,157 <br />$ 90,802,386 $ <br />83,187,875 <br />$ 164,769,259 $ <br />129,157,032 <br />89,044,350 <br />72,936,051 <br />131,455,336 <br />118,744,436 <br />220,499,686 <br />191,680,487 <br />163,011,223 <br />118,905,208 <br />222,257,722 <br />201,932,311 <br />385,268,945 <br />320,837,519 <br />69,541,325 <br />40,115,930 <br />99,464,767 <br />91,021,844 <br />169,006,092 <br />131,137,774 <br />13,371,258 <br />9,363,940 <br />13,707,486 <br />13,905,106 <br />27,078,744 <br />23,269,046 <br />82,912,583 <br />49,479,870 <br />113,172,253 <br />104,926,950 <br />196,084,836 <br />154,406,820 <br />34,026,741 <br />50,982,992 <br />37,167,271 <br />31,937,728 <br />71,194,012 <br />82,920,720 <br />7,178,953 <br />4,288,565 <br />- <br />- <br />7,178,953 <br />4,288,565 <br />38,892,946 <br />14,153,781 <br />71,918,198 <br />65,067,633 <br />110,811,144 <br />79,221,414 <br />$ 80,098,640 $ <br />69,425,338 <br />$ 109,085,469 $ <br />97,005,361 <br />$ 189,184,109 $ <br />166,430,699 <br />Governmental activities. The City's governmental revenues increased when compared to the prior <br />year by 20.8% or $8.6 million. Property tax revenue increased due to increased property valuations and <br />the addition of new property throughout the City. The assessed value of the property in the City <br />increased by $127.3 million or 6.2% as compared to the prior year while the City property tax rate of <br />$0.4702 per $100 assessed valuation remained the same as in the prior year. <br />6 <br />