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File Number: 13-088 <br />Finally, the statistical section includes pertinent financial and non-financial demographic data. <br />The format of the CAFR is designed to serve the needs of three primary users. CAFR <br />information serves the City Council and other governmental oversight bodies, the public, and <br />agencies assessing the City’s creditworthiness . <br />DISCUSSION <br />The City’s independent auditor completed audits of the City’s financial statements and the <br />other reports stated earlier. The audits found no exception to conformance with generally <br />accepted accounting standards, the Government Auditing Standards issued by the <br />Comptroller of the United States, or the U.S. Office of Management and Budget Circular <br />A-133 for state and local governments. <br />Maze found the general-purpose financial statements present fairly, in all material ways, the <br />City’s financial position as of June 30, 2012. The audited financial statements include the <br />statement of net assets, statements of activities and changes in net assets, balance sheets, <br />statements of revenues, expenditures, and, changes in fund balances, and statements of <br />cash flows. <br />The CAFR has been prepared in accordance with generally accepted accounting principles <br />(GAAP). The GASB established this framework for the financial reports of state and local <br />governments. Important financial statement changes highlighted in the CAFR Management <br />Discussion and Analysis include : <br />·The net assets of the City exceeded its liabilities at fiscal year ending June 30, 2012 by <br />$355.6 million. Of this amount, $282 million was invested in capital assets, net of <br />related debt. The balance was restricted for capital projects totaling $8.7 million, $9.2 <br />million is restricted for debt service and other projects, and $55.7 million is unrestricted. <br />·The City’s total net assets increased by $23.4 million; representing a $21.5 million <br />increase in Governmental and a $1.9 million increase in Business type activities. The <br />net assets increase was largely due to the transfer of the Redevelopment Agency <br />negative net assets to a fiduciary fund in the amount of $22.9 million (indebtedness <br />exceeds assets). <br />·The City’s Governmental activities revenues increased by $20.8 million mainly due to a <br />$21.1 million extraordinary accounting gain due to the transfer of redevelopment assets <br />to the Successor Agency to the Redevelopment Agency . Sales tax which increased by <br />$2.3 million. However, charges for services decreased by $4.8 million. The decrease in <br />charges for services is primarily due to the one-time increase in permits and fees for <br />the construction of the Kaiser Hospital in 2010-11. <br />The City’s business-type activities include the Water Pollution Control Plant , Shoreline, Storm <br />Water Utility and Environmental Services . The net assets increased by $1.9 million from prior <br />fiscal year due to the increase in capital assets mainly due to new machinery and equipment <br />for the expansion of the Water Pollution Control Plant . <br />The City has once again received an unqualified opinion (one that is without any reservations <br />or qualifications on the opinion) which is the highest level of assurance that can be rendered <br />Page 2 City of San Leandro Printed on 2/26/2013