AgdaPkt 2019-12-16 Joint SA PFA - Laserfiche WebLink

Browse Search

6.A. - Page 37 of 191 City of Redwood City Management's Discussion and Analysis For the fiscal year ended June 30, 2019 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 $445.0 million at June 30, 2019. City's Net Position (in Millions) The largest portion (87.4%) 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 (14.4%) 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. The City's unrestricted net position has a deficit balance of $8.2 million, which is due to the recording of the City's net pension liability of $248.4 million and the City's net other postemployment benefits liability of $56.6 million. The City's net position increased by $62.9 million, or 16.5 percent, during the current fiscal year. This increase is comprised of $35.7 million in governmental activities net position and $27.2 million in business - type activities net position. 9 44 Governmental Business -type Activities Activities Tota 1 2019 2018 2019 2018 2019 2018 Variance Cash and investments 189.750 168.357 106.899 99.839 296.649 268.196 10.61% Other assets 46.564 43.154 50.609 40.024 97.173 83.178 16.83% Capital assets 225.966 199.611 223.355 218.460 449.321 418.071 7.47% Total assets 462.280 411.122 380.863 358.323 843.143 769.445 9.58% Total deferred outflows of resources 48.163 54.451 5.845 7.335 54.008 61.786 -12.59% Long-term debt outstanding 310.033 306.831 88.595 91.733 398.628 398.564 0.02% Other liabilities 37.022 32.378 12.998 16.318 50.020 48.696 2.72% Total liabilities 347.055 339.209 101.593 108.051 448.648 447.260 0.31% Total deferred inflows of resources 2.981 1.702 0.480 0.124 3.461 1.826 89.54% Net Position: Net investment in capital assets 225.966 199.264 163.031 161.939 388.997 361.203 7.69% Restricted 54.296 64.924 9.922 9.543 64.218 74.467 -13.76% Unrestricted (119.855) (139.527) 111.683 86.001 8.172 53.526 84.73% Total net position 160.407 124.661 284.636 257.483 445.043 382.144 16.46% The largest portion (87.4%) 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 (14.4%) 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. The City's unrestricted net position has a deficit balance of $8.2 million, which is due to the recording of the City's net pension liability of $248.4 million and the City's net other postemployment benefits liability of $56.6 million. The City's net position increased by $62.9 million, or 16.5 percent, during the current fiscal year. This increase is comprised of $35.7 million in governmental activities net position and $27.2 million in business - type activities net position. 9 44