AgdaPkt 2005-01-24 - 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 26-56 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 $358 million at June 30, 2004. City's Net Assets (in Millions) Governm ental Business- type Activities Activities Total 2004 2003 2004 2003 2004 2003 Variance $ $ $ $ $ $ Cash and investments 145.954 123.862 25.440 23.830 171.394 196.834 -12.925% Other assets 38.405 29.811 31.571 32.556 69.976 101.547 -31.090% Capital assets 167.242 153.116 82.577 77.660 249.819 332.396 -24.843% Total assets 351.601 306.789 139.588 134.046 491.189 630.777 -22.130% Long-term debt outstanding 89.108 53.521 12.917 13.082 102.025 66.603 53.184% Other liabilities 23.334 21.575 7.675 2.868 31.009 24.443 26.862% T otalliabilities 112.442 75.096 20.592 15.950 133.034 91.046 46.11 7% Net assets: Invested in capital assets, net of debt 113.369 136.507 67.464 66.389 180.833 202.896 -10.874% Restricted 99.315 57.991 1.565 1.882 100.880 59.873 68.490% Unrestricted Other unrestricted net assets 26.475 36.988 49.967 50.435 76.442 87.423 -12.561 % Total net assets 239.159 231.486 118.996 118.706 358.155 350.192 2.274% The largest portion (50%) 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 (28%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($76.442 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 $7.9 million during the current fiscal year. 6