Agenda Packet 12-9-19 Meeting - Laserfiche WebLink

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Management’s Discussion and Analysis The management of the City of Eugene, Oregon (City) presents this narrative overview to facilitate both a short and a long- term analysis of the financial activities of the City for the fiscal year ended June 30, 2019. This Management’s Discussion and Analysis (MD&A) is based on currently known facts, decisions, and conditions that existed as of the date of the independent auditor’s report. Additional information outside the scope of this analysis can be found in the Letter of Transmittal. Financial Highlights The City’s total assets and deferred outflows of resources at June 30, 2019 increased $103.4 million from $1.1 billion to $1.2 billion. The increase was largely due to a $71.6 million increase in cash and investments and an increase of $22.9 million in capital assets. The City’s total liabilities and deferred inflows of resources at June 30, 2019 increased $60.4 million from $321.4 million to $381.8 million. The increase was attributable to increases in noncurrent liabilities of $17.0 million in net pension liability and an increase of $25.1 million in bonds payable. In addition, deferred inflows of resources increased by $11.6 million. The net position of the City (assets and deferred outflows of resources less liabilities and deferred inflows of resources) at June 30, 2019 increased $43.0 million from $806.0 million to $849.0 million. The City’s unrestricted portion of net position is a negative $31.5 million. This is primarily due to the recognition of the City’s net pension liability which continues to increase each fiscal year. At June 30, 2019, the General Fund’s fund balance remained at $65.0 million. $32.0 million of the General Fund’s fund balance is unassigned. Overview of the Financial Statements The following discussion and analysis is intended to serve as an introduction to the City’s basic financial statements and other required supplementary information. The City’s basic financial statements comprise three components: 1. Government-wide financial statements 2. Fund financial statements 3. Notes to the basic financial statements Government-wide financial statements. The government-wide financial statements are designed to provide readers 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 and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. 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 cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in a future fiscal period. Examples of such items include earned, but uncollected property taxes, and earned, but unused compensated absences. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (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 the following: Central services Fire and emergency medical services Library, recreation, and cultural services Planning and development Police Public works The business-type activities of the City include the following: Ambulance transport Municipal airport Parking services Stormwater utility Wastewater utility 13 December 9, 2019, Meeting - Item 2CCC Agenda - Page 57