Laserfiche WebLink
File Number: 17-060 <br />financial statements and related notes, and supplementary information. Finally, the statistical <br />section includes pertinent financial and non-financial demographic data. <br /> <br />The format of the CAFR is designed to serve the needs of three primary users: the City <br />Council and other governmental oversight bodies, the public, and agencies assessing the <br />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 /> <br />Maze found the general-purpose financial statements present fairly, in all material ways, the <br />City's financial position as of June 30, 2016. 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 /> <br />The CAFR has been prepared in accordance with generally accepted accounting principles <br />(GAAP). The Governmental Accounting Standards Board (GASB) established this framework <br />for the financial reports of state and local governments. Important financial statement <br />changes highlighted in the CAFR Management Discussion and Analysis include: <br /> <br />·The net position of the City exceeded its liabilities at fiscal year ending June 30, 2016 <br />by $194.9 million. Of this amount, $231.0 million was invested in capital assets. <br />$23.7 million is restricted for other purposes; leaving ($59.7) million unrestricted. <br />Unrestricted fund balance changed from ($86.3) million at the end of FY 2014-15 to <br />($59.7) million at the end of FY 2015-16; a change of $26.6 million. This is mainly <br />due to Assets and Deferred Outflows of Resources that were $6.8 million higher at <br />the end of FY 2015-16 than they were at the end of FY 2014-15, Liabilities and <br />Deferred Inflow of Resources that were $7.8 million less at the end of FY 2015-16 <br />than they were at the end of FY 2014-15, Net Investments in Capital Assets that was <br />$14.5 million less at the end of FY 2015-16 than it was at the end of FY 2014-15, <br />and Net Position Restricted for Engineering and Transportation that was $2.4 million <br />less at the end of FY 2015-16 than it was at the end of FY 2014-15. The negative <br />unrestricted net position arose in 2015 due to the implementation of GASB 68 <br />(Accounting and Financial Reporting for Pensions) <br />·The City’s total net position increased by $14.6 million; representing an $11.2 million <br />increase in governmental activities and a $3.4 million increase in Business Type <br />activities. The net position increase was largely due to increases of $1.1 million in <br />Property Tax, $9.4 million in Sales Tax, $400,000 in Utility User Tax, $500,000 in <br />Charges for Service, $7.4 million in Miscellaneous Revenues, and $900,000 in <br />Investment Earnings, and $ 2.8 million in Intergovernmental Revenues. These are <br />offset by expenses, which are $10.9 million greater in FY 2015-16 than they were in <br />Page 2 City of San Leandro Printed on 2/16/2017