2016-12-31 Annual Financial Report

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Figure 2 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis explains the structure and contents of each of the statements. Figure 2 Major features of the Government -wide and Fund Financial Statements Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the City's assets, deferred inflows of resources, liabilities, and deferred inflows of resources with the difference being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cashflows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, economic development, culture and recreation, and interest on long-term debt. The business - type activities of the City include water, sewer, and storm water. The government -wide financial statements start on page 27 of this report. -15- Fund Financial Statements Government -wide Statements Governmental Funds Proprietary Funds Scope Entire City government (except The activities of the City that are Activities the City operates fiduciary funds) and the City's not proprietary or fiduciary, such similar to private businesses, component units as police, fire and parks such as the water and sewer system Required financial . Statement of Net Position • Balance Sheet • Statement of Net Position statements . Statement of Activities • Statement of Revenues, • Statement of Revenues, Expenditures, and Changes in Expenses and Changes in Fund Balances Net Position • Statement of Cash Flows Accounting Basis and Accrual accounting and Modified accrual accounting and Accrual accounting and measurement focus economic resources focus current financial resources focus economic resources focus Type of asset/liability All assets and liabilities, both Only assets expected to be used All assets and liabilities, both information financial and capital, and short- up and liabilities that come due financial and capital, and term and long-term during the year or soon thereafter; short-term and long-term no capital assets included Type of deferred All deferred inflows of Only deferred inflows of All deferred inflows of Inflows of resources resources, regardless of when resources that come due during resources, regardless of when Information cash is received or paid the year or soon thereafter; no cash is received or paid capital assets included Type of inflow/out All revenues and expenses Revenues for which cash is All revenues and expenses flow information during year, regardless of when received during or soon after the during the year, regardless of cash is received or paid end of the year; expenditures when cash is received or paid when goods or services have been received and payment is due during the year or soon thereafter Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the City's assets, deferred inflows of resources, liabilities, and deferred inflows of resources with the difference being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cashflows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, economic development, culture and recreation, and interest on long-term debt. The business - type activities of the City include water, sewer, and storm water. The government -wide financial statements start on page 27 of this report. -15-