comprehensive annual financial report - City of St. Petersburg

City of St. Petersburg, FL
Management’s Discussion and Analysis
For the Year Ended September 30, 2010
Unaudited
City uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the City’s investment in its capital assets is reported net
of related debt, it should be noted that the resources needed to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities. Also, approximately 8.8% of the net assets of the City represent resources that are
subject to external restriction on how they may be used. The remaining 21.0% of net assets are
unrestricted net assets and may be used to meet the City’s ongoing obligations to citizens and
creditors.
As was the case in the prior year, the City is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its governmental and
business-type activities.
Governmental activities total net assets increased by $13.5 million during 2010 as compared to
an increase in total net assets of $29.7 million during the prior fiscal year. The $16.2 million
dollar decrease from the prior year’s increase is primarily due to significant reductions in
revenues further described below. The current year increase in total net assets is attributed to
revenues of $276.8 million exceeding expenditures of $267.5 million, and net transfers of $4.2
million from other funds.
Business-type activities total net assets decreased by $11.1 million during 2010. The decrease is
attributed to expenditures of $180.7 million exceeding revenues of $173.7 million, and net
transfers of $4.1 million to other funds. The reason for the decrease is a loss of revenue from
utility revenue due to the federal and state negative economic conditions and declining water use
from conservation.
The City’s operations for the past two fiscal years are summarized as follows:
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