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M��G��'r's D�SC�ss�o��A��,�s�s The City-wide Financial Statements provide a longer-term view of the City's activities as a whole, and comprise the Statement of Net Assets and the Statement of Activities. The Statement of Net Assets provides information about the financial position of the City as a whole,including all its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities provides information about all the City's revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each of the City's programs. The Statement of Activities explains in detail the change in Net Assets for the year. All of the City's activities are grouped into government activities and business-type activities, as explained below. All the amounts in the Statement of Net Assets and the Statement of Activities are separated into governmental activities and business-type activities in order to provide a summary of these two activities of the City as a whole. The Fund Financial Statements report the City's operations in more detail than the government-wide statements and focus primarily on the short-term activities of the City's general fund and other maj or funds. The Fund Financial Statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long- term debt, and other long-term amounts. Maj or funds account for the maj or financial activities of the City and are presented individually, while the activities of non-maj or funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. Major funds are explained below. The Go�ernment-wide Financial Statements The Statement of Net Assets and the Statement of Activities present information about the following: Governmental Activities All of the City's basic services are considered to be governmental activities, including general government, community development, public safety, public works, culture-recreation, public improvements, planning and zoning, and general administration services. These services are supported by general City revenues such as taxes, and by specific program revenues such as developer fees. Business-type Activities All the City's enterprise activities are reported here, including water, sewer, parking, and the Port of Redwood City. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use. Government-wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. The go vernment-wlde f nanclal statements may be found on pages 16-17 of thls report Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Redwood City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Redwood City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Fund financial statements provide detailed information about each of the City's most significant funds, called maj or funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each maj or fund is presented individually, with all non-maj or funds summarized and presented only in a single column. Subordinate schedules present the detail of these non-maj or funds. Maj or funds present the maj or activities of the City for the year, and may change from year to year as a result of changes in the pattern of the City's activities. Governmental fund financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the governmental fund financial statements. Unlike the government-wide financial 4