AgdaPkt 2017-12-18 Special Joint SA PFA

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City of Redwood City Management’s Discussion and Analysis For the fiscal year ended June 30, 2017 8 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 $422.0 million at June 30, 2017. City’s Net Position (in Millions) The largest portion (79.4%) 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, as the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position (15.6%) 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 $27.2 million, or 5.0% of total net position. The City’s net position increased by $25.9 million during the current fiscal year. Governmental Business-type Activities Activities Total 2017 2016 2017 2016 2017 2016 Variance $$$$$$ Cash and investments 164.549 152.571 99.597 91.469 264.146 244.040 8.24% Other assets 35.352 38.929 47.532 45.971 82.884 84.900 -2.37% Capital assets 193.154 193.563 203.549 200.074 396.703 393.637 0.78% Total assets 393.055 385.063 350.678 337.514 743.733 722.577 2.93% Total deferred outflows of resources 38.554 14.391 6.127 4.922 44.681 19.313 131.35% Long-term debt outstanding 12.591 12.778 67.805 75.700 80.396 88.478 -9.13% Other liabilities 250.043 217.714 31.886 27.670 281.929 245.384 14.89% Total liabilities 262.634 230.492 99.691 103.370 362.325 333.862 8.53% Total deferred inflows of resources 3.779 9.271 0.300 2.692 4.079 11.963 -65.90% Net Position: Net investment in capital assets 192.119 191.852 142.830 132.570 334.949 324.422 3.24% Restricted 59.815 60.812 6.227 5.662 66.042 66.474 -0.65% Unrestricted (86.738) (92.973) 107.757 98.142 21.019 5.169 306.64% Total net position 165.196 159.691 256.814 236.374 422.010 396.065 6.55% 6.1.E. - Page 31