AgdaPkt 2016-01-11 Closed and Joint SA PFA

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6.1.E. - Page 37 , Management's Discussion and Analysis For the year ended June 30, 2015 GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may over time serve as a useful indicator of the City's financial position. The City's assets exceeded liabilities by$365.4 million at June 30, 2015. City's Net Position (in Millions) Governmental Business-type Activities Activities Total 2015 2014 2015 2014 2015 2014 Variance $ $ $ $ $ $ Cash and investments 156.331 132.376 87.771 79.290 244.102 211.666 15.324% Other assets 37.945 37.339 35.782 37.218 73.727 74.557 -1.113% Capital assets 186.821 187.660 195.333 191.219 382.154 378.879 0.864% Total assets 381.097 357.375 318.886 307.727 699.983 665.102 5.244% Total deferred outflows of resources 15.006 3.359 1.611 18.365 1.611 1039.975% Long-term debt outstanding 12.974 13.015 78.604 81.619 91.578 94.634 -3.229% Other liabilities 206.570 50.428 25.546 10.898 232.116 61.326 278.495% Total liabilities 219.544 63.443 104.150 92.517 323.694 155.960 107.549% Total deferred inflows of resources 26.306 2.908 29.214 0.000 100.000% Net Position: Net investment in capital assets 184.443 184.625 125.259 117.928 309.702 302.553 2.363% Restricted 57.862 49.269 5.742 6.553 63.604 55.822 13.941% Unrestricted (92.052) (102.683) 84.191 75.563 (7.861) (27.120) -71.014% Total net position 150.253 131.211 215.192 200.044 365.445 331.255 10.321% The largest portion (85%) of the City's net position reflects its capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to residents; accordingly, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net position (17.4%) represents resources that are subject to external restrictions on how they may be used. Unrestricted net position may be used to meet the government's ongoing obligations (although portions of unrestricted net position may by law or contract be only used for specified purposes and may not necessarily be used for any general governmental purpose) to residents and creditors. With the implementation of GASB 68, the City's unrestricted net position has a negative balance of($7.861) million. At the end of the current fiscal year, the City is able to report positive balances in two categories of net position,for the government as a whole, as well as for its separate governmental type activities. The City is able to report positive balances in all three categories of net position for its separate business type activities. 8