The Town as a Whole and Its Net Position
THE STATEMENT OF net position looks at the Town as a whole and is a useful indicator of the Town’ s financial position. Net position is the difference between total assets and deferred outflows of resources and total liabilities and deferred inflows of resources. The table to the right provides a summary of the net position for FY 14-15 and FY 15-16.
Garner’ s Net Position
FY 15-16 FY 14-15 Assets $ 130,780,442 $ 132,100,635 Deferred outflows of resources 654,824 669,335
Liabilities 44,839,922 44,717,868 Deferred inflows of resources 396,113 2,362,396
Net Position
The Town’ s assets exceeded liabilities by $ 86,199,231 as of June 30, 2016. Approximately |
Net investment in capital assets
Restricted
|
61,370,282
3,614,616
|
63,979,719
4,732,543
|
71.2 percent of net position reflects the Town’ s investment in capital assets. |
Unrestricted
TOTAL NET POSITION
|
21,214,333
$ 86,199,231
|
16,977,444
$ 85,689,706
|
The net investment in capital |
|
|
|
assets category is defined as |
|
|
|
the Town’ s investment in its own assets( e. g. land, buildings, equipment and infrastructure) |
less any related debt still outstanding issued to acquire those items. The Town uses these |
assets to provide services to citizens. An additional portion of net position( 4.2 percent) is |
restricted. Restricted resources are subject to specific external legal restrictions that limit the |
Town’ s ability to use these funds beyond the purpose for which they are provided. |
Net position increased by $ 509,525 due to an 80 percent increase in fees related to an increase in building activity, a 7.8 percent increase in property taxes and a 10.5 percent increase in expenses for street maintenance and debt service.
What does a positive net position mean?
A
POSITIVE NET POSITION means that Town assets exceed liabilities, and a negative net position means that liabilities exceed assets. The Town has grown its net position from $ 21.591 million in 2006 to $ 86.199 million in 2016 due to good fiscal management and establishment of sound policies by the Town Council.
Changes in net position are representative of the total annual revenues compared to the total expenses. When revenues exceed expenditures, the Town’ s net position improves. So, while expenses grew by 10.5 percent in FY 15-16, an 80 percent increase in fees charged for services more than offset that increase.
garnernc. gov 7