2007 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$472.1 million at the close of the most recent fiscal year. By far the largest portion of the County's net assets(84 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(12 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 all three categories of net assets,both for the government as a whole,as well as for its separate governmental and business-type activities. The government's net assets increased by$30.3 million during the current fiscal year. Approximately$31.4 million of the increase is due to increases in real property tax valuations and collections. The offsetting decrease represents the degree to which increases in ongoing expenses have outstripped similar increases in ongoing revenues. The government's current and other assets increased by$91.0 million during the current fiscal year. Approximately$96.6 million of the increase is due to an increase in cash and investments, which is offset by a$6.2 million decrease in receivables. The increase in cash and investments is primarily due to the issuance of bonds($85 million). The government's capital assets increased by$29.3 million 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$79.1 million due to the new general obligation bonds issued during the current year,offset by principal payments and decreases in other long-term liabilities. See further discussion of the increase in long-term debt outstanding on page 22. The government's other liabilities increased by$10.8 million primarily due to increases in unearned revenue relating to intergovernmental grants($5.6 million),accounts payable and accrued liabilities($4.0 million)and interest due on long-term debt($1.8 million)offset by smaller decreases in other accounts. - 16 -