2005 CAFR Part 1 - Laserfiche WebLink

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Analysis of Net Assets As noted earlier,net assets may serve over time as a useful indicator of a government's financial position. In the case of the County,assets exceeded liabilities by$396,229,825 at the close of the most recent fiscal year. By far the largest portion of the County's net assets(92 percent)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 assets(11 percent)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 three categories of net assets,both for the government as a whole,as well as for its separate governmental and business-type activities. The negative balance in unrestricted net assets of $10,890,781 results primarily from the additional long-term liabilities placed on the books to be in compliance with GASB Statement No.34. The government's net assets increased by$31,465,543 during the current fiscal year. Approximately$9.9 million of the increase is due to increases in real property tax valuations and collections. The remaining increase represents the degree to which increases in ongoing revenues have outstripped similar increases in ongoing expenses. The government's current and other assets increased by$47,337,910 during the current fiscal year. Approximately$42.2 million of the increase is due to an increase in cash and cash equivalents. The government's capital assets increased by$21,522,938 due to the large amount of capital improvement projects done by the County during the current fiscal year. See further discussion of the increase in capital assets on page 21. The government's long-term liabilities outstanding increased by$32,400,234 due to the new general obligation bond issues during the current year. See further discussion of the increase in long-term liabilities outstanding on page 22. The government's other liabilities increased by$4,995,071 due to an increase in interest payable ($0.5 million)and the increase in unearned revenue relating to intergovernmental grants($2.3 million). - 16-