Part 3 - Provide an overall assessment of the city's financial condition to the City Commissioner using the information provided, both financial and non-financial. Be sure to reference how GASB standards are reflected in the financial statements and what role GASB plays in the financial reporting process.

CITY OF ARBORLAND Statements of Net Position As of December 31 (In Thousands) 2020 2019 2018 Business- Business- Business- Governmental type Governmental type Governmental type Activities Activities Total Activities Activities Total Activities Activities Total Assets Current assets: Cash $ 5,540 $ 1,800 $ 7,340 4,531 $ 1,663 $ 6,194 $ 3,452 $ 1,487 $ 4,939 Investments 733 291 1,024 638 181 819 769 179 948 Receivables (net) 2,747 1,809 4,556 2,947 ,608 4,555 1,865 1,472 3,337 Prepaid expenses 253 261 251 257 171 176 Inventories 26 58 84 101 48 149 167 49 216 Total current assets 9,299 3,966 13,265 8,468 3,506 11,974 6,424 3, 192 9.616 Capital assets: Land 2,180 2, 101 4,281 2,070 1,804 3,874 1,971 1,604 3,575 Depreciable assets 37,600 14,455 52,055 37 ,183 17,775 54,958 39,347 14.801 54,148 Accumulated depreciation (15,039) (5,782) (20,821) (16,732) (9,776) (26,508) (19,680) (7,402) (27,082) Total capital assets (net) 24,741 10,774 35,515 22.521 9,803 32.324 21,638 9.003 30,641 Total assets 34,040 14,740 48,780 30,989 13,309 44,298 28.062 12,195 40,257 Liabilities Accounts payable 1,580 467 2,047 412 376 788 1,633 295 1,928 Deferred revenue 32 32 30 30 42 42 Other, current 1,754 200 1,954 1,443 190 1,633 1,489 170 1,659 Total current liabilities 3,366 567 4,033 1,885 566 2,451 3.164 465 3,629 Bonds payable 15,900 6,500 22,400 16,900 7.500 24,400 15,900 6,500 22,400 Total liabilities 19,266 7,167 26,433 18,785 8,066 26,851 19.064 6,965 26,029 Net Position Net investment in capital assets 9, 104 4,027 13,131 7,945 3,065 11,010 5,366 2,067 7,433 Restricted for: Capital projects 140 140 151 151 130 130 Debt service 933 933 1,033 1,033 818 818 Unrestricted (deficit) 4,597 3,546 8,143 3,075 2,178 5,253 2,683 3,163 5 ,846 Total net position $14,774 $ 7.573 $22,347 $12,204 $ 5,243 $17.447 $ 8,997 $ 5,230 $14.227 443CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2020 (in thousands) Program Revenues Net (Expense) Revenue and Changes in Net Position Charges Operating Capital Business- for Functions/Programs Grants and Grants and Governmental type Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General government $ 5.716 $ $ (5,185) $(5,185) Judicial 1,926 16 99 (1, 1 11 ) (1,111) Public safety 7.958 1,530 168 (6,260) (6,260) Health and sanitation 2,804 524 (2,280) (2,280) Culture and recreation 2,166 554 $495 (1,117) (1,117) Road maintenance 2.455 1,619 831) (831) Interest on long-term debt 948 (948) (948) Total governmental activities 23,973* 3,860. 1.886 495 .+ (17.732) (17,732) Business-type activities 2,895 5,218 $2,330 2,330 Total government $26,868 $9.078 $1,886 $502 (17.732) 2,330 (15.402) General Revenues: Property taxes 17,296 17,296 Grants and contributions not restricted to specific programs 2,190 2,190 Investment earnings 716 716 Special item-gain on sale of land 100 . - 100 Total general revenues and special items 20,3020 20,302 Change in net position 2,570 2,330 4,900 Net position-January 1 12,204 5,243 17,447 Net position-December 31 $14.774 $7.573 $22,347SW CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2019 (in thousands) Net (Expense) Revenue and Program Revenues Changes in Net Position Charges Operating Capital Business- tor Grants and Grants and Governmental type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General government $4.133 $ 148 $ (3.985) - $ (3.985) Judicial 1.737 209 $ 17 _ (1.511) (1.511) Public safety 5,239 1,943 30 2 (3.266) (3.266) Health and sanitation 2.129 147 # (1.982) (1.982) Culture and recreation 3.762 322 $350 (3.090) (3,090) Road maintenance 1.055 501 (554) (554) interest on long-term debt 804 _ ___- [804) (804] Total governmental activities 18.859 2.769 548 350 (15,192) ~ (15.192) Businesstype activities 4.287 4,290 __ $ 13 13 Total government $23,146 $7,059 $310: (15,192) 13 (15.179) General Revenues: Property taxes 13.619 13.619 Grants and contributions not restricted to specific programs 3.664 3.664 investment earnings 916 916 Special Itemgain on sale of land 200 200 Total general revenues and special Items 18,399 18,399 Change in net position 3.207 13 3.220 Net positionJanuary 1 8.997 5.230 14.227 Net positionDecember 31 $12,204 $5 243 $17.447 9W CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2018 (in mousands) Net (Expense) Revenue and Program Revenues Changes in Net Position Charges Operating Capital Business for Grants and Grants and Governmental type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General government $3,922 $ 109 $ 7 3313.813) $8,813) Judicial 1,601 198 57 ~ (1.346) (1,346) Public safety 4,113 1,723 10 (2,380) (2,380} Health and sanitation 2,096 216 (1,880) (1,880) Culture and recreation 3,484 364 $320 (2.800) ~ (2.800) Road maintenance 1,438 ~ 460 (978) (978) Interest on long-term debt 948 _7 _ (948) (948) Total governmental aciivities 17,602 2.610 527 320 (14,145) (14.145) Business-type activities 2,637 3.708 _ A) $1,091 1.091 Total government $20,239 $6,318 M E $114,145) 1,091 13,054) General Revenues: Property taxes 13.100 13,100 Grants and contributions not restricted to specic programs 2.990 2990 Investment earnings 681 681 Special item-gain on sale of land & _ 150 Total general revenues and special items 16,921 16.921 Change In net position 2.776 11091 3,867 Net positionJanuary 1 4,139 m Net positionDecember 31 w m $14227