NOTES TO FINANCIAL STATEMENTS

NOTE 8. LONG-TERM DEBT (CONTINUED)

Certificates of Participation. During the year ended July 31, 2005, the City entered into leasepurchase agreements with the Georgia Municipal Association for the construction of a new law enforcement center issuing certificates of participation in the amount of $4,575,000. Certificates of participation outstanding at July 31, 2011 are as follows:

Annual debt service requirements on the certificates of participation are as follows: Year Ending July 31,PrincipalInterest

Capital Leases. The City has entered into lease agreements as lessee for financing the acquisition of various items of equipment. The lease agreements qualify as capital leases for accounting purposes (titles transfer at the end of the lease terms) and, therefore, have been recorded at the present values of the future minimum lease payments as of the date of their inceptions.

The following is an analysis of leased assets under capital leases as of July 31, 2011: Equipment$367,209

Governmental Activities

Less: Accumulated depreciation(116,283) $250,926