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City of Redwood City <br />Management’s Discussion and Analysis (Unaudited) (Continued) <br />For the Year Ended June 30, 2025 <br /> <br /> <br />6 <br />Basic Financial Statements <br /> <br />The basic financial statements comprise the City-wide financial statements and the fund financial statements; these two <br />sets of financial statements provide two different views of the City’s financial activities and financial position. <br /> <br />The City-wide financial statements provide a longer-term view of the City’s activities as a whole and comprise the <br />Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about <br />the financial position of the City as a whole, including all of its capital assets and long-term liabilities on a full accrual <br />basis, which is similar to the methodology used by private corporations. Over time, increases or decreases in net position <br />may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement <br />of Activities provides information about all the City’s revenues and expenses and is also accounted for on a full accrual <br />basis, with the emphasis on measuring net revenues or expenses of each of the City’s programs. The Statement of <br />Activities explains in detail the change in net position for the fiscal year. <br /> <br />All of the City’s activities are grouped into government activities and business-type activities, as explained below. All <br />of the amounts in the Statement of Net Position and the Statement of Activities are separated into governmental <br />activities and business-type activities in order to provide a summary of these two activities of the City as a whole. <br /> <br />The fund financial statements report the City’s operations in greater detail than the government-wide statements and <br />focus primarily on the short-term activities of the City’s general fund and other major funds. The fund financial <br />statements, which are prepared using the modified accrual basis of accounting, measure only current revenues, <br />expenditures, and fund balances. As such, the fund financial statements exclude capital assets, long-term debt, and other <br />non-current revenues and expenditures. <br /> <br />Major funds account for the major financial activities of the City and are presented individually, while the activities of <br />non-major funds are presented in summary, with subordinate schedules presenting the detail for each of these other <br />funds. Major funds are explained in more detail in subsequent sections of this discussion and analysis. <br /> <br />Government-wide Financial Statements <br /> <br />The Statement of Net Position and the Statement of Activities present information about the following: <br /> <br />Governmental Activities — All of the City’s basic services are considered governmental activities, including general <br />government, community development, public safety, public works, culture/recreation, public improvements, planning <br />and zoning, and general administration services. These activities have been broken down into various functions, such <br />as community development; public safety; public ways and facilities; leisure, cultural, and information services; and <br />general government. These services are supported by general City revenues such as taxes, and by specific program <br />revenues such as developer fees. <br />7.C. - Page 38 of 269 <br />57