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CITY OF SAN LEANDRO, CALIFORNIA <br />Management’s Discussion and Analysis <br />For the Fiscal Year Ended June 30, 2015 <br /> <br /> <br /> <br />The Management’s Discussion and Analysis (MD&A) provides an overview of the City of San Leandro’s <br />activities and financial performance for the fiscal year ended June 30, 2015. To obtain a complete picture <br />of the City’s financial condition, this document should be read in conjunction with the accompanying <br />Transmittal Letter and Basic Financial Statements. <br /> <br />FINANCIAL HIGHLIGHTS <br /> <br />Information about net position is presented in the summary schedule, below: <br /> <br />• At the close of the most recent fiscal year, the net position of the City exceeded its liabilities by $180 <br />million (net position). Of this amount, $245 million was invested in capital assets. $21.2 million is <br />restricted for other purposes; leaving ($86.3) million unrestricted. Unrestricted fund balance changed <br />from $49.3 million at the end of FY 2013-14 to ($86.3) million at the end of FY 2014-15 mainly due <br />to the requirement of Governmental Accounting Standard Board (GASB) Statement Number 68 to <br />record Net Pension Liability in the amount of $116.2 million. <br /> <br />• As of June 30, 2015, the City’s total net position increased by $7.8 million; representing a $2.6 million <br />increase in governmental activities and a $5.3 million increase in Business Type activities. <br /> <br />• In FY 2014-15, GASB Statement Number 54, governments are obligated to enhance the financial <br />reporting of the fund balance categories. Fund balances are described and presented in Note 10 which <br />details the classifications of the City’s new fund balance categories. The City’s governmental funds <br />include the general, special revenue, debt service, and capital projects, with a combined ending fund <br />balance of $56.0 million, an increase of $12.0 million from the prior fiscal year. The increase is <br />primarily due to the rise of $5.8 million in Property and Other Taxes, $2.8 million in Intergovernmental <br />Revenues, $1.8 million in Other Revenues, $340,000 in Licenses and Permits, $250,000 in <br />Interdepartmental Charges, and $221,000 in Fines and Forfeitures. <br /> <br />a) Approximately 24.7% of the amount ($13.8 million) is Nonspendable because the funds are <br />both legally and contractually required to be maintained and are not available or spendable <br />such as advances and loans to other funds. <br /> <br />b) Approximately 40.4% of the amount ($22.6 million) is Restricted due to the constraints placed <br />on the use of resources or imposed by law through constitutional provisions or enabling <br />legislation. This includes capital projects and debt service payments. <br /> <br />c) Approximately 3.1% of the amount ($1.7 million) is Assigned which are General fund <br />encumbrances from prior fiscal year. <br /> <br />d) Approximately 31.8% of the amount ($17.8 million) is Unassigned and available for spending <br />in the future. These include Compensated Absences, Major Emergencies and Economic <br />Uncertainties and funds that have deficit fund balances. <br />5