Popular Annual Financial Report - 2017 For fiscal year ending June 30, 2017 | Page 10

THE TOWN AS A WHOLE AND I
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 on
the next page provides a summary of the net position for FY 15-16 and FY 16-17.
The Town’s assets exceeded liabilities by $83,870,888 an investment in equipment and vehicles of $771,484.
as of June 30, 2017. Approximately 72.8 percent of
net position reflects the Town’s investment in capital W hat does a positive net position mean ?
assets. The net investment in capital assets category
is defined as the Town’s investment in its own assets A positive net position means that Town assets
(e.g. land, buildings, equipment and infrastructure) exceed liabilities, and a negative net position means
less any related debt still outstanding
that liabilities exceed assets. The
issued to acquire those items. The
Town has grown its net position from
Changes in net
Town uses these assets to provide
$71.823 million in 2007 to $83.871
position are
services to citizens.
million in 2017 due to good fiscal
representative of the management and establishment of
An additional portion of net position
sound policies by the Town Council.
(5.2 percent) is restricted. Restricted total annual revenues
resources are subject to specific
compared to total Changes in net position are
external legal restrictions that limit
representative of the total annual
expenses.
the Town’s ability to use these funds
revenues
compared
to
total
beyond the purpose for which they
expenses. When revenues exceed
are provided.
expenditures, the Town’s net position
improves. So, while expenses grew by 5.7 percent in
Overall, net position decreased by $2.3 million, FY 16-17, sales tax revenues increased by 7.8 percent
primarily due to a prior year restatement of $2.4 million (due to the improved economy of the region), which
related to pension obligations. The Town also made more than offset the increase in expenses.
9
2017 POPUL AR ANNUAL FINANCIAL REPORT