|
<br />-17-
<br />GOVERNMENT-WIDE FINANCIAL STATEMENTS
<br />
<br />In addition to fund-based information, the current reporting model for governmental entities also requires
<br />the inclusion of two government -wide financial statements designed to present a clear picture of the City
<br />as a single, unified entity. These government-wide financial statements provide information on the total
<br />cost of delivering services, including capital assets and long-term liabilities.
<br />
<br />STATEMENT OF NET POSITION
<br />
<br />The Statement of Net Position essentially tells you what your city owns and owes at a given point in time,
<br />the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to
<br />use for providing services after its debts are settled. However, those resources are not always in spendable
<br />form, or there may be restrictions on how some of those resources can be used. Therefore, net position is
<br />divided into three components: investment in capital assets, restricted, and unrestricted.
<br />
<br />The following table presents the components of the City’s net position as of December 31, 2017 and 2016
<br />for governmental activities and business-type activities (utility fund operations):
<br />
<br />Increase
<br />2017 2016 (Decrease)
<br />Net position
<br />Governmental activities
<br />Investment in capital assets 22,750,377$ 25,178,721$ (2,428,344)$
<br />Restricted 898,739 786,678 112,061
<br />Unrestricted 10,678,219 8,249,560 2,428,659
<br />Total governmental activities 34,327,335 34,214,959 112,376
<br />Business-type activities
<br />Investment in capital assets 16,292,000 16,306,381 (14,381)
<br />Unrestricted 1,298,744 1,116,957 181,787
<br />Total business-type activities 17,590,744 17,423,338 167,406
<br />Total net position 51,918,079$ 51,638,297$ 279,782$
<br />As of December 31,
<br />
<br />Net position for governmental activities increased by $112,376 in 2017, as presented above. The
<br />investment in capital assets decreased $2,428,344 this year, mainly due to the contribution of capital
<br />assets to the county for a multi-year street project accumulated by the City. The remaining change in this
<br />category of net position typically depends on the relationship of the rate at which the City is adding
<br />capital assets, the rate capital assets are being depreciated, and how the City finances the purchase and
<br />construction of capital assets. The restricted portion of net position increased $112,061, due to increases
<br />in amounts restricted for tax increment purposes and cable television. The increase in unrestricted net
<br />position is due to positive operating results in the current year.
<br />
<br />The change in net position for business-type activities is consistent with our earlier discussion for the
<br />utility operations, which are presented under the same, full accrual, basis of accounting.
|