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File Number: 13-633 <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, 2013. 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 cash <br />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 />$325 million. Of this amount, $252 million was invested in capital assets, net of related <br />debt. The balance was restricted for capital projects totaling $4 million, $0.8 million is <br />restricted for debt service and other projects, and $19.3 million is unrestricted. <br />• The City's total net position decreased by $5.8 million; representing a $9.9 million <br />decrease in Governmental and a $4.1 million increase in Business type activities. The <br />net assets decrease was largely due to the annual depreciation of assets. <br />• The City's Governmental revenues decreased by $25.9 million largely due to the prior <br />year extraordinary, one-time revenue from the former Redevelopment Agency <br />dissolution in the amount of $21 million, wherein these funds were recorded in the <br />City's "private purpose trust fund" on February 1, 2012. <br />• Sales tax which increased by $2.2 million. In addition, charges for services increased <br />by $1.5 million primarily due to the increase in building permits for community <br />improvements which includes the new permit for Preferred Freezer with 247,462 <br />square feet freezer storage. <br />The City's business -type activities include the Water Pollution Control Plant, Shoreline, Storm <br />Water Utility and Environmental Services. The net position increased by $4.1 million from the <br />prior fiscal year due to the continuation of the plant expansion thus increasing in capital assets <br />with new machinery and equipment. <br />The City has once again received an unqualified "clean" opinion which is the highest level of <br />assurance that can be rendered by the auditors. This opinion assures that the City's financial <br />City of San Leandro Page 2 Printed on 1128/2014 <br />