Reso 2011-053 Attachment - Laserfiche WebLink

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CITY OF SAN LEANDRO, CALIFORNIA Management's Discussion and Analysis For the Fiscal Year Ended June 30, 2010 Management of the City of San Leandro (the "City") provides this Management Discussion and ' Analysis of the City's Comprehensive Annual Financial Report (CAFR) for readers of the City's financial statements. This narrative overview and analysis of the financial activities of the City is for the fiscal year ended June 30, 2010. We encourage readers to consider this information in conjunction with the additional information that is furnished in the letter of transmittal found in the preceding Introductory Section, and with the City's basic financial statements and the accompanying notes to those financial statements. FINANCIAL HIGHLIGHTS o The assets of the City exceeded its liabilities at fiscal year ending June 30, 2010 by $334.7 million. Of this amount, $288.5 million was invested in capital assets, net of related debt. The balance was restricted for capital projects of $19.5 million, debt service $5.2 million, special revenue $6.6 million, and unrestricted $14.9 million. The unrestricted net asset of $14.9 million includes $3.1 million from an agreement with Kaiser Permanente that is designated in the General Fund for Community Impact and Street Improvements. The negative capital projects is largely due to the Redevelopment Agency, which is required to show indebtedness, thus resulting in expected negative net assets. o The City's total net assets decreased by almost $13 million; representing a $17.1 million decrease in Governmental and a $4.1 million increase in Business type activities. The net assets decreased were largely due to the increase of the Redevelopment Agency indebtedness with related non-capitalizable development expense. o At the close of the current fiscal year, the City's governmental funds including the general, special revenue, debt service, capital projects and Redevelopment funds, reported combined ending fund balances of $59.7 million, a decrease of $13.6 million from the prior year. The change primarily reflects a $13 million increase in funding for capital projects for the Senior Center, downtown lighting and pedestrian rehabilitation and parking infrastructure which are primarily funded by the Redevelopment Agency. Approximately $35.4 million is reserved for capital projects, debt, and operations, of which $13.7 million is in the General Fund. Unreserved fund balances fall into two basic categories — designated and undesignated. Unreserved — designated fund balance totals $12.7 million, all in the General Fund. Unreserved — undesignated fund balance totals $11.6 million (of which $6.8 million is in the Special Revenue funds and $4.8 million in Capital Project funds). o At the end of the fiscal year, unreserved/designated fund balance for the General Fund was $12.7 million, or 17.1% of total general fund expenditures. This amount includes a $5 million in emergency reserve, $6.9 million for economic uncertainty, and $776,000 in other reserves. 3