2009 CAFR - 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$526.6 million at the close of the most recent fiscal year. By far the largest portion of the County's net assets(80 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 County's net assets increased by$12 million during the current fiscal year. Although real property tax valuations increased approximately$19 million,the offsetting decrease represents the degree to which increases in ongoing expenses have outstripped similar increases in ongoing revenues. The County's current and other assets decreased by$8.1 million during the current fiscal year. Approximately$13.6 million of the decrease is due to a decrease in cash and investments,which is offset by a$3.9 million increase in receivables. The decrease in cash and investments is primarily due to the spending of proceeds from previously issued bonds. The majority of the increase in receivables is due to an increase in the amount of real property taxes uncollected at fiscal year end. The County's net capital assets increased by$52.6 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 County's long-term liabilities outstanding increased by$32 million due to the new general obligation bonds issued during the current year offset by principal payments. See further discussion of the increase in long-term debt outstanding on page 22. The County's other liabilities increased by$0.5 million primarily due to increases in accounts payable and accrued liabilities($1.6 million)offset by decreases in other liabilities($.9 million) and unearned revenue($.2 million). - 16 -