Circus City issued an $8\%,10-$year $$2,000,000$ bond to build a monorail mass transit system. The city received $$1,754,217$ cash from the bond issuance on January $1,2025.$ The bond yield is $10\%.$ Interest is paid annually on December $31$ of each year. Disclosure information about capital assets is reported below.

Disclosure of Information about Capital Assets for the Year Ending December $31,2025$

Primary Government

Governmental Activities

Beginning Balance

Additions

Retirements

Ending Balance

Land

$$500,000$

$$500,000$

Building

$760,000$

$760,000$

Machinery and Equipment

$950,000$

$$(225,000)$

$725,000$

Construction in Progress

$$1,500,000$

$1,500,000$

Infrastructure

$450,000$

$450,000$

$$Totals at historical cost

$$2,660,000$

$$1,500,000$

$$(225,000)$

$$3,935,000$

Less accumulated depreciation

Building

$(190,000)$

$(59,150)$

$(249,150)$

Machinery and Equipment

$(235,000)$

$(76,050)$

$140,000$

$(171,050)$

Infrastructure

$(50,000)$

$(33,800)$

$(83,800)$

$$Total accumulated depreciation

$$(475,000)$

$$(169,000)$

$$$$140,000$

$$(504,000)$

Governmental activities capital assets, net

$$2,185,000$

$$1,331,000$

$$(85,000)$

$$3,431,000$

Depreciation expense charged to governmental activities as follows:

Public Safety

$$55,000$

General Government

$72,000$

Highways and Streets

$25,000$

Sanitation

$17,000$

$$169,000$

Circus City's governmental funds financial statements are as follows:

Circus CityGovernmental FundsFund Balance Sheets at December $31,2025$

Capital Projects Fund

Debt Service Fund

Total Governmental Funds

Assets

General Fund

Monorail Fund

Term Bond Fund

Cash

$$64,000$

$$300,000$

$$$

$$364,000$

Interest Receivable

$12,000$

$4,000$

$16,000$

Investments

$100,000$

$1,250,500$

$100,000$

$1,450,500$

Property Tax Receivable

$183,000$

$183,000$

$$Total Assets

$$347,000$

$$1,562,500$

$$104,000$

$$2,013,500$

Liabilities and Fund Balance

Vouchers Payable

$$73,000$

$$50,000$

$$123,000$

$$Total Liabilities

$$73,000$

$$50,000$

$$$

$$123,000$

Fund Balances:

$$Restricted for:

$$Capital projects

$1,512,500$

$1,512,500$

$$Debt Service

$104,000$

$104,000$

$$Assigned for encumbrance

$191,000$

$191,000$

$$Unassigned

$83,000$

$83,000$

$$Total Fund Balance

$274,000$

$1,512,500$

$104,000$

$1,890,500$

Total Liabilities and Fund Balances

$$347,000$

$$1,562,500$

$$104,000$

$$2,013,500$

Circus CityGovernmental FundsStatement of Revenues, Expenditures, and Changes in FundBalances for the Year Ended December $31,2025$

Capital Projects Fund

Debt Service Fund

Total Governmental Funds

General Fund

Monorail Fund

Term Bond

Revenues

Property Taxes

$ $525,000$

$$50,000$

$$575,000$

Licenses and Permits$*$

$150,000$

$150,000$

State Grant$$highways and streets

$250,000$

$250,000$

Intergovernmental$$state grant

$$1,000,000$

$1,000,000$

Charges for Services $($general government$)$

$130,000$

$130,000$

Investment Earnings

$75,000$

$75,000$

$$Total Revenue

$$1,130,000$

$$1,000,000$

$$50,000$

$$2,180,000$

Expenditures

Public Safety

$$500,000$

$$500,000$

General Government

$300,000$

$300,000$

Highways and Streets

$130,000$

$130,000$

Sanitation

$70,000$

$70,000$

Debt Service Interest

$$160,000$

$160,000$

Capital Outlay

$$$$1,500,000$

$1,500,000$

$$Total Expenditures

$$1,000,000$

$$$$1,500,000$

$$$$160,000$

$$2,660,000$

Excess $($deficiency$)$ of revenues over expenditures

$$130,000$

$$(500,000)$

$$(110,000)$

$ $(480,000)$

Other Financing Sources $($Uses$)$

Proceeds from long$-$term capital debt

$$1,754,217$

$$1,75$

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