2018-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. Iii the case of the County, assets exceeded liabilities by $141.7 million at the close of the most recent fiscal year. By far the largest portion of the County's net position 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 Countyuses 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 represents resources that are subject to external restrictions on how they may be used. At the end of the current fiscal year, the Countyr 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 decreased by $294.3 million from the prior year, which was an increase of $233.2 million (352%) from the decrease that was experienced last fiscal year. The main reasons for the large decrease in the current year over last year's decrease was due to a prior period adjustment of $274.0 million, which was the result of the County's implementation of GASB Statement 751, Accounting and Financial Reporting for Postemployment Benefits other Than Pensions. Under this new accounting standard the Countyr's financials at the government - wide level now reflect their net liability, expense, deferred inflows and outflows relating to Other Postemployrment benefits. The County's net capital assets increased by $1 1.4 million (1 percent) due to the large amount of capital improvement projects done by the Countyr 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 $330.3 million (26 percent) due primarily to the issuance of $5.2 million State Revolving Fund (SRF) loans and $138.8 million in bonds, which were offset by $131.5 in retirements of bonds, Bond Anticipation Notes and SRF loans; a $3.7 million increase in the liability related to claims and judgments against the Countyr; a $250.6 million increase in the Countyr's liability relating to the pre -funding of its postemployrment benefits other than pensions; and a $5.2 million decrease in the County's net pension liabilityr. See further discussion of the increase in long-term debt outstanding on page 25.