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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 />10 <br />GOVERNMENT-WIDE OVERALL FINANCIAL ANALYSIS <br /> <br />Net Position <br /> <br />As noted previously, net position may serve over time as a useful indicator of a government's financial position. In the <br />case of the City of Redwood City, assets and deferred outflows of resources exceeded liabilities and deferred inflows <br />of resources by $741.2 million at the close of the fiscal year. <br /> <br />Total Total <br />2025 2024 2025 2024 2025 2024 Variance <br />$$ $$$$ <br />Cash and investments 327,580 326,722 166,847 162,135 494,427 488,857 1.14% <br />Other assets 57,851 43,461 72,116 66,425 129,967 109,886 18.27% <br />Capital assets 363,509 342,646 256,894 249,344 620,403 591,990 4.80% <br /> Total assets 748,940 712,829 495,857 477,904 1,244,797 1,190,733 4.54% <br />Total deferred outflows of <br /> resources 77,384 93,914 8,241 10,748 85,625 104,662 -18.19% <br />Long-term liabilities 417,348 385,424 71,965 78,070 489,313 463,494 5.57% <br />Other liabilities 63,476 87,493 19,433 15,577 82,909 103,070 -19.56% <br /> Total liabilities 480,824 472,917 91,398 93,647 572,222 566,564 1.00% <br />Total deferred inflows of <br /> resources 5,058 6,512 11,991 13,620 17,049 20,132 -15.31% <br />Net Position: <br /> Net investment in capital assets 306,530 321,969 213,598 202,882 520,128 524,851 -0.90% <br /> Restricted 138,145 145,302 11,259 10,685 149,404 155,987 -4.22% <br /> Unrestricted (deficit) (104,233) (139,957) 175,852 167,601 71,619 27,644 159.08% <br /> Total net position 340,442 327,314 400,709 381,168 741,151 708,482 4.61% <br />(Amounts in thousands) <br />Net position <br />Activities <br />Governmental Business-type <br />Activities <br /> <br />The largest portion (83.7%) of the City’s net position reflects its capital assets (e.g., land, buildings, machinery, and <br />equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets <br />to provide services to residents; accordingly, these assets are not available for future spending. Although the City’s <br />investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt <br />must be provided from other sources, as the capital assets themselves cannot be used to liquidate these liabilities. <br /> <br />The restricted portion of the City’s net position represents resources that are subject to external restrictions on how they <br />may be used. Unrestricted net position may be used to meet the government’s ongoing obligations (although portions <br />of unrestricted net position may, by law or contract, be only used for specified purposes and may not necessarily be <br />used for any general governmental purpose) to residents and creditors. <br /> <br /> <br />7.C. - Page 42 of 269 <br />61