Comprehensive Annual Financial Report - Cobb County

COBB COUNTY GOVERNMENT
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2007
Government-wide Financial Analysis
Net Assets
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position.
The County’s combined net assets (government and business-type activities) totaled $4.0 billion at
September 30, 2007.
The following table provides a summary of the County’s governmental and business-type net assets for
fiscal years 2007 and 2006:
Cobb County, Georgia
Statement of Net Assets
Governmental Governmental Business-type Business-type
Activities Activities Activities Activities Total Total
2007 2006
2007
2006
2007 2006
Assets:
Current assets $ 478,621,637 $ 369,122,530 $ 87,602,974 $ 98,447,558 $ 566,224,611 $ 467,570,088
Other - noncurrent 5,850,639 5,539,812 650,071 547,894 6,500,710 6,087,706
Capital assets - net 2,576,149,100 2,542,832,953 1,313,659,201 1,281,356,501 3,889,808,301 3,824,189,454
Unamortized bond costs 50,343 - 667,518 732,469 717,861 732,469
Total assets $ 3,060,671,719 $ 2,917,495,295 $ 1,402,579,764 $ 1,381,084,422 $ 4,463,251,483 $ 4,298,579,717
Liabilities
Current liabiities $ 131,425,845 $ 136,277,563 $ 24,126,948 $ 30,186,841 $ 155,552,793 $ 166,464,404
Long-term liabilities (net) 150,385,758 132,880,577 167,274,998 186,046,762 317,660,756 318,927,339
Total liabilities $ 281,811,603 $ 269,158,140 $ 191,401,946 $ 216,233,603 $ 473,213,549 $ 485,391,743
Net Assets
Invested in capital assets,
net of related debt $ 2,519,108,757 $ 2,480,941,152 $ 1,184,655,823 $ 1,160,044,646 $ 3,703,764,580 $ 3,640,985,798
Restricted 183,127,588 85,045,197 - - 183,127,588 85,045,197
Unrestricted 76,623,771 82,350,806 26,521,995 4,806,173 103,145,766 87,156,979
Total net assets $ 2,778,860,116 $ 2,648,337,155 $ 1,211,177,818 $ 1,164,850,819 $ 3,990,037,934 $ 3,813,187,974
The largest portion of the County’s net assets 92.8% reflects its investment in capital assets such as land,
buildings, equipment and infrastructure (roads, bridges, sidewalks, water lines and sewer lines) less any
related debt used to acquire those assets that is still outstanding. Investment in capital assets net of related
debt increased by $62.8 million (1.7%) in FY07.
The County uses these capital assets to provide services to its citizens; therefore, these assets are not
available for future spending. Although the County’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.
At the end of the current fiscal year, the County is able to report positive balances in all categories of net
assets for both the governmental and business-type activities.
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