CAFR 2012 Final with Opinion (2)

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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 Iiabilities by$683.0 million at the close of the most recent fiscal year. By far the largest portion of the County's net assets(87 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 (7 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$75.7 million during the current fiscal year,which was $20.1 million more than the increase during last fiscal year. Capital grants and contributions increased by approximately$47.9 million relating mostly to highways and streets and sanitation. The increase was offset and reduced by a decrease in real property taxes of approximately$15.2 million. The County's net capital assets increased by$80.5 million 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 23. The County's long-term liabilities outstanding increased by$17.3 million (4 percent) due primarily to the increases resulting from the County's decision to forgo the employer contributions relating to the pre-funding of its postemployment benefits other than pensions and the issuance of new Bond Anticipation Notes. These increases were offset by principal payments on the General Obligation Bonds and the State Revolving Fund loans from the prior year. See further discussion of the increase in long-term debt outstanding on page 24. - 18 -