2014-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 $808.0 million at the close of the most recent fiscal year. By far the largest portion of the County's net position (91 percent) reflects its investment in capital assets (c.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 (I I 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 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 $42.7 million during the current fiscal year, which was a decrease of $41.3 million (49%) from the increase that was experienced last fiscal year. One of the main reasons for the lower increase in net position is due to a $50.0 million decrease in capital grants and contributions related to highways and streets as compared to the prior fiscal year. This substantial decrease was partially offset by a $7.8 million increase from that of the prior fiscal year in capital grants and contributions related to culture and recreation. The County's net capital assets increased by $42.4 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 Iiabilities outstanding increased by $8.8 million (2 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 liability for post closure remediation costs relating to closure of the County's two metal salvage facilities. 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. 19-