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City of Redwood City Management's Discussion and Analysis For the fiscal year ended June 30, 2016 GOVERNMENT -WIDE FINANCIAL ANALYSIS 6.1.D. - Page 35 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) The largest portion (81.9%) 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 (16.8%) 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. Due to the City's net pension liability, the City's unrestricted net position has a balance of $5.169 million, or 1.6% of total net position. The City's net position increased by $30.6 million during the current fiscal year. E3 Governmental Business -type Activi ties Activi ties Tota 1 2016 2015 2016 2015 2016 2015 Variance Cash and investments 152.571 156.331 91.469 87.771 244.040 244.102 -0.025% Other assets 38.929 37.945 45.971 35.782 84.900 73.727 15.155% Capital assets 193.563 186.821 200.074 195.333 393.637 382.154 3.005% Total assets 385.063 381.097 337.514 318.886 722.577 699.983 3.228% Total deferred outflows of resources 14.391 15.006 4.922 3.359 19.313 18.365 5.162% Lo ng -term d ebt o uts ta n d i ng 12.778 12.974 75.700 78.604 88.478 91.578 -3.385% Other liabilities 217.714 206.570 27.670 25.546 245.384 232.116 5.716% Total liabilities 230.492 219.544 103.370 104.150 333.862 323.694 3.141% Total deferred inflows of resources 9.271 26.306 2.692 2.908 11.963 29.214 -59.050% Net Position: Net investment in capital assets 191.852 184.443 132.570 125.259 324.422 309.702 4.753% Restricted 60.812 57.862 5.662 5.742 66.474 63.604 4.512% Unrestricted (92.973) (92.052) 98.142 84.191 5.169 (7.861) 165.755% Total net position 159.691 150.253 236.374 215.192 396.065 365.445 8.379% The largest portion (81.9%) 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 (16.8%) 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. Due to the City's net pension liability, the City's unrestricted net position has a balance of $5.169 million, or 1.6% of total net position. The City's net position increased by $30.6 million during the current fiscal year. E3