ARVADA, COLORADO
CITY OF
MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2010
The basic proprietary fund financial statements can be found on pages 34-36 of this report. Fiduciary Funds. The City maintains two different types of fiduciary funds, trust and agency funds. The fiduciary fund financial statements are prepared on the accrual basis of accounting. The fiduciary funds are used to account for resources held by the City in a trustee capacity or as an agent for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of these funds are not available to support the City’s own programs. The funds underlying each of the fiduciary fund types are combined into a single, aggregated column in the fiduciary fund statements The City does not adopt an annual appropriated budget for its fiduciary funds. The basic fiduciary fund financial statements can be found on pages 37-38 of this report. Notes to the Financial Statements. The notes to the basic financial statements are considered an integral part of the financial statements since they provide additional information needed to gain a full understanding of the data provided in both the government-wide and fund financial statements. The notes to the financial statements can be found on pages 39-70 of this report. Combining Statements. The combining statements referred to earlier in connection with the non-major governmental funds, non-major enterprise funds, internal service funds and fiduciary funds are presented following the required notes to the financial statements. Infrastructure Assets. Historically, infrastructure assets (roads, bridges and capital improvements other than buildings) have not been reported or depreciated in governmental financial statements. Infrastructure represents a significant portion of the government’s assets. Similarly, the outflow of resources expended by a government to maintain infrastructure also represents a sizeable portion of its operations. GASB 34 requires that the infrastructure assets be valued and reported within the governmental column of the government-wide statements. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. At the close of December 31, 2010, the City’s assets exceeded liabilities by $635,169,000. The following summaries of net assets and changes in net assets are presented for the current year and the previous year in comparison format.
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