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 |
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|
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assets category is defined as |
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|
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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 .
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