AgdaPkt 2006-01-09 - Laserfiche WebLink

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MANAGEMENT'S DISCUSSION AND ANALYSIS Notes to the Financial Statements Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the Financial Statements may be found on pages 29-58 of this report. GoVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net assets may over time serve as a useful indicator of the City's financial position. The City's assets exceeded liabilities by $375 million at June 30, 2005. City's Net Assets (in Millions) Governmental Business-type Activities Activities Total 2005 2004 2005 2004 2005 2004 Variance $ $ $ $ $ $ 142.664 145.954 61.653 25.440 204.317 171.394 19.209% 27.792 38.405 29.366 31.571 57.158 69.976 -18.318% 196.187 167.242 85.483 82.577 281.670 249.819 12.750% 366.643 351.601 176.502 139.588 543.145 491.189 10.578% 86.510 89.846 48.528 12.917 135.038 102.763 31.407% 23.510 22.596 9.298 7.675 32.808 30.271 8.381% 110.020 112.442 57.826 20.592 167.846 133.034 26.168% Cash and investments Other assets Capital assets Total assets Long-term debt outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of debt Restricted Unrestricted Other unrestricted net assets Total net assets 141.069 113.369 38.599 67.464 179.668 180.833 -0.644% 85.745 99.315 27.423 1.565 113.168 100.880 12.181% 29.809 26.475 52.654 49.967 82.463 76.442 7.877% 256.623 239.159 118.676 118.996 375.299 358.155 4.787% The largest portion (48%) of the City's net assets 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 assets (30%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($82.463 million) may be used to meet the government's ongoing obligations (although portions of these unrestricted net assets 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. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. The City's net assets increased by $17.1 million during the current fiscal year. 6