2020-COH - Comprehensive Annual Financial Report

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Analysis of Net Position As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the County, assets exceeded liabilities by $153.0 million at the close of the most recent fiscal year. By far the largest portion of the County's net position reflects its investment in capital assets (e.g., land, buildings, infrastructure, and equipment) less any related debt used to acquire those assets that is still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources,since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the County's net position represents resources that are subject to external restrictions on how they may be used. At the end of the current fiscal year, the County is able to report positive balances in two of its three categories of net position, both for the government as a whole, as well as for its separate governmental activities. All three categories of net position are positive for its business-type activities. The County's net position increased by $23.0 million from the prior year,which was an increase of $34.7 million (297%) from the decrease that was experienced last fiscal year. The main reasons for the large increase in the current year's increase over last year's decrease, was due to several increases in revenue sources. Property taxes increased in the current fiscal year by $17.5 million due to a $1.0 billion increase in the assessed value of the net taxable buildings. Revenues from the general excise tax surcharge increased by $23.0 million from the prior year due to fact that the surcharge was in effect for 12 months in the current fiscal year and also doubled in the last 6 months. The County's net capital assets increased by $33.0 million (2 percent) due to the large amount of capital improvement projects done by the County during the current fiscal year and infrastructure related assets that were contributed. See further discussion of the increase in capital assets on page 24. The County's long-term liabilities outstanding decreased by $1.9 million (0.1 percent) due primarily to principal payments of bonds and SRF loans and amortization of related bond premiums totaling $30.5 million that were offset by a $32.6 million increase in the County's net pension liability. The remaining decrease in this category is comprised of net changes in the other long-term liability balances,of which most notable is the $6.4 million increase in other post-employment benefit obligation and a $17.6 million decrease in landfill closure payable due to current year payments. See further discussion of the increase in long-term debt outstanding on page 25. - 17 -