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TRANSCRIPT
City City of of KawasakiKawasaki
Investor Presentation October 2008
Municipal Bond Subdivision
Financial Affairs Department City of Kawasaki
1
KawasakiKawasaki JapanJapan
Number of Households
640,241(as of Aug 1, 2008)
48.2 million(as of Oct. 1, 2005)
Area 144.35 km2 377,929.99 km2
GDP4,704.5 billion yen
(2003)503 trillion yen
(2005)
MajorIndustriesof Kawasaki
Manufacturing (Electronics & Telecommunications, Precision Machinery, Petrochemistry), and
Information Service Industries
DevelopingIndustriesof Kawasaki
New Manufacturing Technologies;Information and Telecommunications; Environmental;
Heath, Welfare, and Life Science;and Lifestyle and Cultural Industries
Registered ForeignResidents
28,775(117 nationalities)
(as of Dec. 31, 2006)
2,084,919(as of Oct 1, 2006)
Number of Foreign Affiliated Companies
115(with 83 headquarters, fifth-largest in Japan)
3,500
1. Investment Environment of Kawasaki1. Investment Environment of Kawasaki
KawasakiKawasaki JapanJapan
Population
1,389,059(as of Aug 1, 2008)
It corresponds to the population ofMunich (Germany),
Milano (Italy)
127.8 million(as of Oct. 1, 2005)
Population Growth Rate
6.2% (2005)(Rate of increase/
decrease of population from 2000 to 2005)
0.7% (2005)( Rate of increase/
decrease of population from 2000 to 2005 )
Average Age
40.7 (as of Oct. 1, 2007)
43.9(as of Oct. 1, 2005)
Labor ForcePopulation
730,600(2005)
65.5 million(2005)
2
2. Five Major Advantages of Investing in Kawasaki2. Five Major Advantages of Investing in Kawasaki
11 Convenient Access
22 Huge Market Potential
33 Excellent Track Record of Companies Sited in Kawasaki
44 Three Science Parks Giving Rise to New Businesses
55 Outstanding Cultural and Life Environment
0
• Easy Access to AirportsIt takes 90 min. to Narita and only 13 min. to Haneda (by train)
• Extensive Rail and Road NetworkIt takes 18 min. to Tokyo and 10 min. to Yokohama (by train)
• Further Expansion and Internationalization of Haneda Airport
(services tentatively scheduled to begin in 2010)Expand the departure and arrival capacities by 1.4 times.Begin regular, short-range international flight services.Expand international freight services.The “Kanagawa-Haneda International Airport Linking Project”aims to create a new base for exchange by constructinga new access route to Haneda Airport from Kawasaki (Kanagawa Prefecture), known as “the Kanagawa Gate”.
• New Station To Be Built By 2010(Shin Musashi-Kosugi Station on JR Yokosuka line)
Will reduce travel time between Kawasaki and Tokyo and Yokohama.
Advantage 1 – Convenient AccessAdvantage 1 – Convenient Access
Container TerminalPort of Kawasaki
Haneda Airport
Located immediately adjacent to Tokyo and Yokohama
Kawasaki is the center of the Tokyo metropolitan area, the largest consumer market in Japan!
Advantage 2 – Huge Market PotentialAdvantage 2 – Huge Market Potential
Runway C
International flights area
Runway B
Passenger Term
inal 1
Passenger Term
inal 2
Runway A
Tama River
Connecting taxiway
Tokyo B
ay
New runway
1
JFE Steel
Nisshin Seifun
Mitsubishi FusoTruck & Bus
Showa Denko
Kao
Tonen General Sekiyu
Tokyo Electric Power
Nippon ZEON
Nippon Oil
YAKIN Kawasaki
Advantage 3 – Excellent Track Record of Companies Sited in KawasakiAdvantage 3 – Excellent Track Record of Companies Sited in Kawasaki
TycoElectronics
AMP
Product Development Center
Information and Telecommunication Systems, Systems Development Kawasaki Laboratory
Headquarters, Kawasaki Plant
Tamagawa Office, Chuo Research Laboratories
Toshiba Research and Development CenterSoftware Engineering CenterKomukai PlantKomukai SA System PlantHamakawasaki PlantMicroelectronics Center
Kawasaki Office (Plant)Intellectual Property CenterTechnology and Engineering CenterLife Science LaboratoriesResearch Institute for Health FundamentalsProcessed Food Development and Technology CenterSeasoning Development and Technology CenterApplication CenterAminoScience CenterFermentation and Biotechnology LaboratoriesProduction Control CenterPharmaceutical Research Laboratories
Kawasaki PlantResearch and Development Center
Kawasaki Factory
Kawasaki Plant
Kawasaki Plant, Tonen Chemical Corp. Kawasaki Plant, Chuo Research and Development Center
Kawasaki Thermal Power StationHigashi-Ogijima Thermal Power Station
JFE Higashinihon
Kawasaki Office,Kawasaki Natural Gas Power Plant
Kawasaki Natural Gas Power Plant
Tsurumi Plant
Kawasaki OfficeR&D CenterProduction Technology Center
Yako OfficeTamagawa OfficeKosugi OfficeTechnology Development Center
R&D Center
Headquarter
Gunma Pref.
Saitama Pref.
TokyoYamanashi
Pref.
ShizuokaPref.
Kanagawa Pref. Chiba Pref.
Ibaraki Pref.
Tochigi Pref.
Kawasaki City
2
Advantage 4 –Three Science Parks Giving Rise to New Businesses
Advantage 4 –Three Science Parks Giving Rise to New Businesses
The first science park in Japan (established in 1989) andone of the largest technology incubators in Japan.It has 118 companies (as of Jan. 2006).http://www.ksp.or.jp/english/
Kanagawa Science Park (KSP)Kanagawa Science Park (KSP)
Academic-industrial alliance-typed science park.• Kawasaki Business Incubation Center (KBIC)• Keio University Shin-Kawasaki Town Campus (K2)
It has 21 companies and 7 laboratories (as of Jul. 2006).http://www.kawasaki-net.ne.jp/kbic/index-en2.htm
ShinShin--Kawasaki Science Park (KBIC, K2)Kawasaki Science Park (KBIC, K2)
Private-sector-led science park.Custom-made research space available.It has 55 companies (as of Mar. 2006).http://www.techno-hub-innovation.com/
Techno Hub Techno Hub INnovationINnovation Kawasaki (THINK)Kawasaki (THINK)
6
• City of Music and CinemaMUZA Kawasaki Symphony Hall andcinema complexes
• Growing number of new commercial establishmentsLazona Kawasaki Plaza (opened on Sept. 28, 2006)(about 300 tenants including a cinema complex, home appliance and general merchandise store, mega book store, restaurants and cafes)
Advantage 5 – Outstanding Cultural and Life EnvironmentAdvantage 5 – Outstanding Cultural and Life Environment
MUZA Kawasaki Symphony Hall (left)
MUZA Kawasaki Central Tower (right)
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3. Developing Industries of Kawasaki – The Environment3. Developing Industries of Kawasaki – The Environment
Present
• Highlights1. The city has experience in overcoming pollution problems
2. Accumulation of companies with excellent environmental technologies
• Related News1. Approved as a “Special International
Environmental District” (May 2003)
2. Operation of the Zero-Emission Industrial Complex (Nov. 2002)
3. Holding of “Eco Industries Forum” (from Jul. 2005)
4. Approved as an “Eco-Town” (from Jul. 1997)
Keihin Waterfront Districtin the period of rapid growth (around 1970)
8
4. Developing Industries of Kawasaki – IT4. Developing Industries of Kawasaki – IT
• HighlightsAccumulation of world-famous IT companies such as NEC, Canon, Hitachi, Fujitsu, Dell and IBM.
• Related News1. Completion of “NEC Tamagawa Renaissance City” (May 2005)
(In order to strengthen the research and technology development structure,NEC compressed its sites into this intelligent building.)
2. Establishment of Canon’s R&D basein Kawasaki (currently in progress)
3. Relocation of Pioneer’s base ofhome electronics (spring 2007)
NEC Tamagawa Renaissance City*NEC press release
9
• Highlights1. Accumulation and network of bio/life-science related companies
(1) Setting up of “Kawasaki Life Science Network Meeting” (Oct. 2003)
Encourages meeting between industries and industry and academia.
A total of 91 groups and 185 persons participated (FY 2005).
(2) Setting up of “Kawasaki Salon for Scientists” (Apr. 2006)
Established as a base for sharing knowledge
and fostering of a R&D mindset.
2. Promotion of the health science industry around the “Kanagawa
Gate” of Haneda Airport
Attraction of high-tech medical facilities; and genome, bio, and allergy research institutes
and incubation facilities.
• Related News1. Siting of NEDO’s* head office in Kawasaki (Feb. 2004)
* The New Energy and Industrial Technology Development Organization. It is Japan's largest public R&D management organization for
promoting the development of advanced industrial, environmental, new energy and energy conservation technologies.
2. Expansion of Ajinomoto’s function related to the life science industry (currently in progress)
5. Developing Industries of Kawasaki – Life Science5. Developing Industries of Kawasaki – Life Science
6
Potential of Kawasaki City
130
133135
137
140
144146 147 146
125
130
135
140
145
150
2005 2006 2007 2008 2010 2015 2020 2025 2030
出典:川崎市将来推計人口調査
(万人)
人口1人あたり課税対象所得額(平成18年度)
1.99 1.98
1.85 1.83
1.75
1.621.57 1.56 1.55
1.52 1.521.49
1.38 1.37 1.36 1.35
1.24
1.0
1.2
1.4
1.6
1.8
2.0出典:2008年版個人所得指標
(百万円)
Actual numbers are those as of Jan. 1
predictionActual numbers
東京都
横浜市
川崎市川崎市
Tokyo
Yokohama
Unit: 10,000 Transition and prediction of population
Source: Kawasaki City FuturePopulation Estimates
Taxable income per capita (Fiscal 2006)Unit: ¥1 million
Source: 2008 Personal Income Index
Kaw
asaki
Yokoham
a
Nagoya
Saitama
Chiba
Ham
amatsu
Hiroshim
a
ShizuokaK
obe
Sendai
Fukuoka
Kyoto
Sakai
Sapporo
Niigata
Osaka
Kitakyushu
Kawasaki
7
51.1%42.5%
2.2%7.9%
13.0% 14.9%
10.7% 9.9%
23.0% 24.8%
0%
25%
50%
75%
100%
その他
市債
国庫支出金・都道府県支出金
地方譲与税・地方交付税
市税
0.681
0.835
1.016
1.060
0.974
0.934
1.022
0.720
0.929
0.799
0.690
0.794
0.686
0.830
1.004
0.5
0.6
0.7
0.8
0.9
1.0
1.1
札幌市
仙台市
さいたま市
千葉市
川崎市
横浜市
静岡市
名古屋市
京都市
大阪市
堺市
神戸市
広島市
北九州市
福岡市
(
Comparison of Kawasaki’s financial situation with other ordinance-designated cities
Strong tax revenue base
Comparison based on fiscal 2006 reports on closing accounts
FY2005-07 average
Others
Municipal bond
Treasury disbursement
Prefectural disbursement
Municipal tax
Kawasaki Ordinance-designated cities average
Sapporo
Yokoham
a
Sendai
Saitama
Chiba
Kaw
asaki
Hiroshim
a
Shizuoka
Kobe
Nagoya
Fukuoka
Kyoto
Sakai
Kitakyushu
Osaka
High ratio of independent source of funds (ordinary account)
Ratio of independent source of funds 68% (ranked 2nd)Ratio of independent source of funds 68% (ranked 2nd)
The number of local public bodies that are not granted ordinary local allocation tax
Financial power index of fiscal 2007: 1.060 (ranked 1st)Financial power index of fiscal 2007: 1.060 (ranked 1st)
Local transfer tax, local grand taxTax allocated to local governments
8
877 890 892 843 890 972 1,110 1,126
181 197 165 187 213 247294
308 291
1,169 1,167 1,150 1,100 1,096 1,0961,049
1,059 1,080
433 420 404 396 395 387391 392
860
430
2,8892,868
2,7022,6282,5482,5512,6272,6872,657
0
500
1,000
1,500
2,000
2,500
3,000
3,500
H12 H13 H14 H15 H16 H17 H18 H19 H20
個人市民税 法人市民税 固定資産税 その他(億円)
36.0%30.2%
10.9%15.4%
38.8%
14.3% 15.1%
39.3%
0%
25%
50%
75%
100%
川崎市 政令指定都市平均
その他
固定資産税
法人市民税
個人市民税
Analysis of taxation structure
Initial and supplementary budgets for FY2007Initial budget for FY2008
Others
Municipal tax on real estate
Municipal tax for corporations
Municipal tax for individuals
Comparison based on fiscal 2006 reports on closing accounts
Kawasaki City Ordinance-designated cities average
Unit: ¥100 million Municipal tax
for individualsMunicipal tax for corporations
Municipal tax on real estate Others
2000 2001 2002 2003 2004 2005 2006 2007 2008
The rate of individual municipal tax is high
Component ratio of individual municipal tax is high. Component ratio of individual municipal tax is high. (Ranked second in ordinance(Ranked second in ordinance--designated cities.)designated cities.)
Transition of municipal tax revenue.Transition of municipal tax revenue.Steadily increasing since fiscal 2004.Steadily increasing since fiscal 2004.
9
Analysis of expenditure structure (ordinary account)
14.5% 16.7%20.4%
15.5%19.6% 18.6% 19.6% 17.5% 17.6% 18.5% 16.4% 14.4% 11.7%
21.0%12.5%
13.2% 14.3%16.2%
16.4%12.5% 15.0%
19.9% 22.9% 25.1%17.1% 20.2%
15.5%16.4%
12.9%
16.0%10.4%
16.5%15.1% 13.4%
14.9%
11.7%13.1% 10.5%
19.9%13.5%
13.3% 16.7%
20.7%18.5%
16.2%
0%
10%
20%
30%
40%
50%
60%
70%
人件費 扶助費 公債費Personnel expense
assistance allowance
public debt expenditure
Sapporo Sendai Saitama Chiba Kawasaki ShizuokaYokohama
High ratio of personnel expenditure compared with other cities is the biggest problemin the city’s structure of expenses
Comparison of ratios of required expenses in annual expenditure
The comparison with other ordinanceThe comparison with other ordinance--designated cities is designated cities is based on fiscal 2006 report on closing accountsbased on fiscal 2006 report on closing accounts
Personnel expense ratio: Ranked 15th out of 15 citiesAssistance allowance ratio: Ranked 7th out of 15 citiesPublic debt expenditure ratio: Ranked 12th out of 15 citiesRequired expenses ratio: Ranked 12th out of 15 cities
Nagoya FukuokaKyoto Osaka Sakai Kobe Hiroshima KitakyushuRequired expenses
ratio48.4% 45.2% 43.9% 49.2% 53.1% 47.0% 45.5% 48.5% 51.3% 53.5% 53.2% 55.6% 50.1% 43.1% 44.7%
6
Current account ratio, Primary balance
The comparison with other ordinance-designated cities is based on fiscal 2006 report on closing accounts
93.2%
84.2%
85.5%
91.4%
83.5%
94.7%
99.7%
93.1%
96.6%
94.2%
89.0%
95.8%95.2%
94.3%
93.2%
80%
85%
90%
95%
100%
(
621
1,066
675 701
493
1,008
559521 534625553573
772813
307238254
104
-122
-492
-127
0
200
400
600
800
1000
1200(億円)
-600
-400
-200
0
200
400
600(億円)
市債発行額公債費プライマリーバランス(右軸)
Initial and supplementary budgets for fiscal 2002 to fiscal 2006Initial budgets for fiscal 2007 and fiscal 2008
Sapporo
Yokoham
a
Sendai
Saitama
Chiba
Kaw
asaki
Hiroshim
a
Shizuoka
Kobe
Nagoya
Fukuoka
Kyoto
Sakai
Kitakyushu
Osaka
Floatation price of municipal bondPublic debt expenditurePrimary balance (right-hand axis)Unit:
¥100 millionUnit: ¥100 million
2002 2003 2004 2005 2006 2007 2008
Low current account ratiomeans a resilient fiscal structure
Current account ratioCurrent account ratio
Primary balance continuing upward trend since fiscal 2005
Primary balance of general accountPrimary balance of general account
7
Consolidated Balance Sheet of Kawasaki City (as of end of FY2006)
Section FY2004 FY2005 FY2006
Assets
1. Property, plant and equipment 31,647 31,890 32,035
(Ordinary account of the abovementioned assets)
19,067 19,272 19,460
2. Investments 1,710 1,700 1,702
Investments and capital 489 480 501
Loans 366 373 350
Funds, others 855 847 851
3. Current assets 1,789 1,717 1,562
Cash and deposits 489 561 506
Accounts receivable, others 1,300 1,156 1,056
4. Deferred account 5 2 1
Total assets 35,151 35,309 35,300
Section FY2004 FY2005 FY2006
1. Fixed liabilities 16,322 15,945 15,421
Liabilities
Local government bonds 13,869 13,750 13,399
Reserve funds, others 2,453 2,195 2,022
2. Current liabilities 1,398 1,581 1,625
(Local government bonds, bonds to be redeemed in the next fiscal year)
901 1,070 1,168
Total liabilities 17,720 17,526 17,046
Difference betw
een assets and liabilities
1. Treasury disbursements 4,655 4,774 4,855
2. Prefectural disbursements 259 254 249
3. Funds financed by private firms and other organizations 71 71 72
4. General revenue sources, others 12,446 12,684 13,078
Total of difference between assets and liabilities 17,431 17,783 18,254
Total net assets and liabilities 35,151 35,309 35,300
Unit: ¥100 million
The whole cityThe whole city’’s balance sheet with ordinary account, special account (16) and s balance sheet with ordinary account, special account (16) and government government owned companiesowned companies’’ account (6) is consolidated with the balance sheets of Partial account (6) is consolidated with the balance sheets of Partial Administrative Administrative
Unions, local public corporations and the third sector.Unions, local public corporations and the third sector.
Consolidated balance sheet with associated cooperative groups (Draft)
8
Public-sector enterprise accounts
-1648 -1158 -831
436
-1059
-1511
-604
473
1833
-1057
12531608
-1,793
831
314
1,210
-3,416
652
-3,500
-2,500
-1,500
-500
500
1,500
2,500
H13 H14 H15 H16 H17 H18
自動車運送事業会計
工業用水道事業会計
水道事業会計
下水道事業会計
病院事業会計
収支合計
(年度)
(百万円)
Major factors of recovery of account for waterworks projectDecrease of expenses for water purchasing paid to wide-area Kanagawa Water Supply Authority (Partial Administrative Unions) Increased number of subscription of water use
Major causes of loss in fiscal 2001 account for waterworks projectIncrease of expenses for water purchasing paid to wide-area Kanagawa Water Supply Authority
Major cause of loss of the account for hospital projectIncreased allowance for depreciation of Tama Hospital (which opened in February 2006)
Major cause of loss in account for overland transportation projectIncreased personnel expenses due to an increased number of employees who retired at their employers’ suggestion
Major factors of recovery in fiscal 2002 and 2003 account for waterworks projectsContinuous cutback in labor costs (¥400 million in fiscal 2002, ¥500 million in fiscal 2003)Decrease of expenses for water purchasing paid to wide-area Kanagawa Water Supply Authority
Account for overlandtransportation projectAccount for industrialwater projectAccount forwaterworks projectAccount for sewage works projectAccount for hospitalprojectTotal balance Unit:
¥1 million
FY 2001 2002 2003 2004 2005 2006
Accounts of companies on the recovery track
Transition of each net income (loss) of municipal owned companieTransition of each net income (loss) of municipal owned companies s by accounts (by fiscal year)by accounts (by fiscal year)
9
Balance sheet of Kawasaki (As of end of fiscal 2006)
From the fiscal 2000 period, we started drawing up a balance sheet which includes every account―general account, special account and public-sector companies accounts―in accordance with the central government standard to clarify the financial situation of the whole city of Kawasaki.
When compared with the balance sheet of the previous year, total assets have increased ¥15.8 billion, total liabilities have decreased ¥26.8 billon and total net assets/liabilities have increased ¥42.6 billion.
Of property, plant and equipment of Kawasaki, the ratio of net assets to total assets is 53.4 percent (an increase of 1 percentage point from the previous fiscal year).
When compared with the ordinary account, total liabilities are comparatively larger. As municipal bonds are issued at a high frequency to make funds to keep property, plant and equipment in good condition in the municipal enterprise account, the ratio of total liabilities is higher than in that of the general account
33,748 34,607 11,137 1,726 21,744 Total assets0 0 0 0 4. Deferred account
431 469 178 149 142 Accounts receivable, others
407 386 232 21 133 Cash and deposits837 856 410 170 276 3. Current assets
546 546 80 110 356 Fund, others
399 399 0 37 362 Loan
564 1,405 115 0 1,290 Capitalization and investment
1,509 2,350 195 147 2,008 2. Capitalization, others
(10,350)(Land)987 Others
1,029 Expenses for general affairs
1,643 Expenses for public health
3,863 Expenses for education
11,939 Expenses for publicconstruction works
31,401 31,401 10,533 1,408 19,460 1. Property, plant and equipment
Assets
Total Total accountaccount
Simple Simple totaltotal
Municipal Municipal enterprise enterprise accountaccount
Special Special accountaccount
Ordinary Ordinary accountaccountSectionSection
33,748 34,607 11,137 1,726 21,744 Total net assets and liabilities18,033 18,874 5,141 1,455 12,278 Total net assets
9,667 3. General revenue source, others
238 2. Prefectural disbursements2,373 1. Treasury disbursementsN
et assets
15,715 15,733 5,996 271 9,466 Total liabilities221 239 239 0 Others
1,079 1,079 473 28 579 Local government bonds, bonds to be redeemed in the next fiscal year
1,300 1,318 711 28 579 2. Current liabilities955 955 223 25 707 Reserve funds, others61 61 0 0 61 Carried-over expenses
13,399 13,399 5,062 219 8,119 Local government bonds14,415 14,415 5,285 243 8,887 1. Fixed liabilities
Liabilities
Total Total accountaccount
Simple Simple totaltotal
Municipal Municipal enterprise enterprise accountaccount
Special Special accountaccount
Ordinary Ordinary accountaccountSectionSection
(Unit:¥ million) (Unit:¥ million)
10
Consolidated balance sheet with associated cooperative groups (Draft) (As of end of fiscal 2006)
Kawasaki municipal government provides services to citizens through the administration as well as associated corporate bodies financed by the municipal government.
To disclose the financial situation of the city and its associated organizations as a unified body, Kawasaki has consolidated partial administrative unions, local public corporation and the third sector to the city’s balance sheet, and draws up a consolidated balance sheet (draft).
When comparing the consolidated balance sheet with the total account balance sheet, the total liabilities are comparatively larger because the liabilities ratio of the associated organizations is larger.
35,300 36,574 1,967 11,137 1,726 21,744 Total assets1 1 1 0 0 4. Deferred account
1,056 1,108 639 178 149 142 Accounts receivable, others
506 480 94 232 21 133 Cash and deposits1,562 1,588 733 410 170 276 3. Current assets
851 851 305 80 110 356 Fund, others350 693 294 0 37 362 Loan
501 1,406 0 115 0 1,290 Capitalization and investment
1,702 2,950 600 195 147 2,008 2. Capitalization, others
(10,350)(Lands)
987 Others
1,029 Expenses for general affairs
1,643 Expenses for public health
3,863 Expenses for education
11,939 Expenses for public construction works
32,035 32,035 634 10,533 1,408 19,460 1. Property, plant and equipment
Assets
Total Total accountaccount
Simple Simple totaltotal
Third Third sector and sector and
othersothers
Municipal Municipal enterprise enterprise accountaccount
Special Special accountaccount
Ordinary Ordinary accountaccountSectionSection
35,300 36,574 1,967 11,137 1,726 21,744 Total net assets and liabilities
18,254 19,159 285 5,141 1,455 12,278 Total of difference between assets and liabilities
13,078 13,983 214 2,648 1,455 9,667 4. 4General revenue sources, others
72 72 72 3. Funds financed by
private firms and other organizations
249 249 0 11 0 238 2.Prefecturaldisbursements
4,855 4,855 0 2,482 0 2,373 1.Treasury disbursements
Difference betw
een assets and liabilities
17,046 17,415 1,682 5,996 271 9,466 Total liabilities457 482 243 239 0 Others
1,168 1,168 89 473 28 579
Local governmentbonds, bonds to be redeemed in the next fiscal year
1,625 1,650 332 711 28 579 2. Current liabilities1,961 2,304 1,350 223 25 707 Reserve fund, others
61 61 0 0 0 61 Carried-over expense
13,399 13,399 5,062 219 8,119 Local governmentbonds
15,421 15,765 1,350 5,285 243 8,887 1. Fixed liabilities
Liabilities
Total Total accountaccount
Simple Simple totaltotal
Third Third sector and sector and
othersothers
Municipal Municipal enterprise enterprise accountaccount
Special Special accountaccount
Ordinary Ordinary accountaccountSectionSection
(Unit:¥ million) (Unit:¥ million)
11
Balance sheet of general account of Kawasaki
-0.956.555.557.355.657.4Distribution ratio of net assets (%)
IndexIndex
2.3 28012,27811,99812,21511,68811,712Total of net assets
2.9 2729,6679,3952439,1759,197(3) General revenue source and others
(2.0)(5)2382432,360252255(2) Prefecturaldisbursements
0.6 13 2,3732,3609,6122,2602,260(1) Treasury disbursementsN
et assetsN
et assets
(1.5)(146)9,4669,6129,5779,3278,683Total liabilities3.1 18 579561475387374(2) Current liabilities
(1.7)(140)8,1198,2598,3068,1337,454Local government bonds
(1.8)(164)8,8879,0519,1028,9408,309(1) Long-term liabilitiesLiabilitiesLiabilities
0.6 134 21,74421,61021,33321,01520,395Total assets(25.5)(94)276370337321288(3) Current assets
2.1 41 2,0081,9671,9291,8331,675(2) Capitalization, others
(1.7)(5)281286291297258Expenses for commerce and industry
1.1 131 11,93911,80811,64411,45711,296Expenses for public construction works
(2.0)(21)1,0291,0501,0811,100882Expenses for general affairs
1.0 18719,4609,27319,06718,86018,432(1) Property, plant and equipment
Assets
Assets
Ratio of Ratio of increase/ increase/ decreasedecrease
BalanceBalanceEnd of fiscal End of fiscal 20062006
End of fiscal End of fiscal 20052005
End of fiscal End of fiscal 20042004
End of fiscal End of fiscal 20032003
End of fiscal End of fiscal 20022002SectionSection
(Unit:¥ million)
12
Statement of local government administration costs (General account)
100.0 393,041 100.0 390,955 101.9 398,367 Administrative costs A4.5 17,458 5.0 19,538 5.5 21,539 Subtotal
0.4 1,409 0.5 1,749 0.4 1,718 (2) Losses due to nonpayment
4.1 16,049 4.5 17,700 5.1 19,821 (1) Public debt
expenditure (Only for interests)
0.0 0 0.0 89 0.0 0 (1) Costs of restoring a devastated areaO
ther costs
42.1 165,498 40.5 158,327 41.5 162,128 Subtotal
1.9 7,503 1.4 5,524 1.6 6,237 (4) Construction
operation fee (Grant-in-aid to other organizations)
7.8 30,625 7.3 28,567 8.0 31,220 (3) Transfers to special account
10.9 42,964 11.0 43,018 11.6 45,350 (2) Support fee21.5 84,406 20.8 81,218 20.3 79,321 (1) Assistance expense
Cost for transfer
payment
26.5 104,334 26.5 104,481 26.7 104,454 Subtotal
12.2 47,958 12.2 47,701 12.2 47,678 (3) Depreciation expense1.4 5,539 1.4 5,428 1.3 5,186 (2) Maintenance fee
12.9 50,837 12.9 51,352 13.2 51,590 (1) Cost of suppliesExpenses for properties
26.9 105,751 27.8 108,609 28.2 110,246 Subtotal
2.6 10,153 2.6 10,181 2.6 10,325 (2) Reserve fund for
employees' retirement benefits
24.3 95,598 25.2 98,428 25.6 99,921 (1) Personnel expenseExpenses for personnel m
atters
DistributiDistribution ratioon ratioAmountAmountDistributiDistributi
on ratioon ratioAmountAmountDistributiDistribution ratioon ratioAmountAmount
FY2006FY2006FY2005FY2005FY2004FY2004Section/ FYSection/ FY
[Administration costs] Unit: ¥1million, %
100.0 420,231 97.5 409,574 98.1 401,732 Revenue (B + C + D + E)
1.9 8,150 1.9 8,091 2.0 8,068 (4) Net depreciation
expenditures of national (prefectural) treasury disbursement
80.1%77.9%75.5%D/A
74.9 314,776 73.7 304,406 72.1 295,333 (3) General revenue source D
15.1%14.9%14.9%C/A
14.2 59,519 14.1 58,225 14.3 58,401 (2) Treasury (prefectural) disbursement C
9.6%9.9%10.2%B/A
9.0 37,786 10.2 38,852 9.7 39,930 (1) Usage charge, commission, etc B
DistributiDistribution ratioon ratioAmountAmountDistributiDistributi
on ratioon ratioAmountAmountDistributiDistribution ratioon ratioAmountAmount
FY2006FY2006FY2005FY2005FY2004FY2004Section/ FYSection/ FY
[Revenue] Unit: ¥1million, %
13
Fiscal 2008 plan to issue Kawasaki municipal bond
To avoid financial risk, we evenly issue bonds with three different terms―mid-term, long-term and super-long-term bonds.While maintaining a certain scale of public-offering bonds, we will put on market private placement bonds on banks. (The ratio of public-offering bonds to private placement bonds on banks is 66:34.)While we expect the public fund to be decreased, we will secure a certain amount. (Ratio of private to public is 93:7.)
Of the account balance’s total amount of ¥180.2 billion, total amount of private funds is ¥166.8 billion (93 percent of the total).Of the total issued amount of publicly offered bonds of ¥110 billion (61 percent of the total), the bonds issued independently by Kawasaki amount to ¥75 billion (42 percent of the total).Total issued amount of private placement bonds in banks is ¥56.8 billion (32 percent of the total).
SectionSection TermTerm Amount Amount issuedissued
Apr Apr 20082008 MayMay JunJun JulJul AugAug SepSep OctOct NovNov DecDec
Jan Jan 20092009
FebFeb MarMar MayMay
Public offering bonds
Issued independently by K
awasaki
Publicly offered local governm
ent bonds
5 years 350 100 150 100
10 years 100 100
20 years 100 Issuance of spot bonds on annual basis
20 years 100 Issuance in the first half
20 years or 30 years
100 Issuance in the second half
Joint issue 10 years 350 50 50 50 50 50 50 50
Private placement bonds
on banks
Securities issue or
bond issue
5 years (some 4-
year bonds)
122 3 30 89
10 years 185 105 80
Super-long-term
bond261 161 100
Unit: ¥100 million
City of Kawasaki
Address: 1, Miyamoto-cho, Kawasaki-ku, Kawasaki-shi, 210-8577 E-mail: [email protected]://www.city.kawasaki.jp/23/23sikin/home/ir/ir.htm