Statement of Net Position

Governments report proprietary fund assets, liabilities, and net position in a Statement of Net Position. Proprietary fund statements draw a distinction between major and non-major proprietary funds. Bothell is unique in that it did not have any non-major proprietary funds. There are only three funds – Water, Sewer, and Storm and Surface Water.

Total assets in Water ($25.9 million), Sewer ($23.5 million), and Storm and Surface Water ($42.2 million) add up to the total assets reported under business-type activities ($91.5 million). Again, the difference between the government-wide statement of Net Position and the proprietary fund Statement of Net Position is the detailed reporting of assets, liabilities, revenues, and expenses by fund type – Water, Sewer, and Storm and Surface Water.

The proprietary fund Statement of Net Position reports current assets ($26.3 million) separately from non-current assets ($65.2 million). Governments are not required to report current assets separately from their non-current assets in the government-wide statements, but that breakdown is required in the proprietary fund statements.

Like most local governments, revenue bonds make up a large proportion of liabilities ($13.5 million). A large proportion of the city’s proprietary fund liabilities are in the Storm and Street Water fund ($10.9 million).

Like the government-wide Statement of Net Position, the proprietary fund Statement of Net Position classifies the position as either Net Investment in Capital Assets, Restricted Net Position, or Unrestricted Net Position.

  • Net Investment in Capital Assets in the historical cost of capital improvements – net of depreciation – and debt associated with the acquisition, construction, or improvement of capital In the Water Fund, net investment in capital assets is equal to $16,634,885 – i.e., Capital Assets not being depreciated plus capital assets being depreciated minus depreciation ($19,670,033) minus the current portion of revenue bonds payable, net ($183,345) minus non-current revenue bonds payable ($2,851,803).

  • The restricted net position represents assets restricted by a third party or law. Governments are frequently required to establish restricted reserve funds following a revenue bond issue to ensure payments occur on time and in full. Revenue bond reserve funds are often the lesser of (a) maximum annual debt service, (b) 125 percent of average annual debt service, or (c) 10 percent of original bond proceeds.

  • The remainder is reported as the unrestricted net position. Each business-type activity reports a positive unrestricted net position.

CITY OF BOTHELL - Statement of Net Position: Proprietary Funds, December 31, 2021
CITY OF BOTHELL
STATEMENT OF NET POSITION
PROPRIETARY FUNDS, DECEMBER 31, 2021
Business-Type Activities, Enterprise Funds Governmental Activities
Water Sewer Storm & Surface Water Total Internal Service Funds
ASSETS
Current assets
Cash and cash equivalents $303,342 $744,901 $2,049,875 $3,098,118 $2,390,973
Investments $4,190,215 $6,307,503 $8,464,320 $18,962,038 $2,300,000
Accounts receivable $859,474 $1,817,087 – $2,676,561 $53,396
Due from other governments $357 $56,256 $211,575 $268,188 $5,522
Reserved assets
Deposit held in trust – – – – $277,395
Investment-revenue bond reserve $109,785 $292,497 $914,086 $1,316,369 –
Total current assets $5,463,173 $9,218,244 $11,639,857 $26,321,274 $5,027,286
Non-current assets
Net pension assets $724,367 $547,655 $1,303,964 $2,575,986 $38,766
Capital assets not being depreciated
Land $122,175 $163,126 – $285,302 –
Right of way – – 1,935,868 $1,935,868 –
Construction in progress $405,339 $997,494 $1,757,076 $3,159,909 –
Capital assets being depreciated
Intangible assets $141,538 $122,978 $146,663 $411,179 –
Buildings $2,729,301 $3,513,086 $2,304,125 $8,546,512 $35,285
Improvements other than buildings $29,514,840 $17,760,228 $36,850,875 $84,125,944 $1,042,450
Equipment $59,048 $1,806,274 $275,951 $2,141,273 $1,829,336
Vehicles $30,457 $30,457 $250,920 $311,834 9,562,936
Less accumulated depreciation ($13,332,666) ($10,711,077) ($14,284,192) ($38,327,935) ($8,960,868)
Total non-current assets $20,394,400 $14,230,221 $30,541,250 $65,165,871 $4,047,905
Total assets $25,857,573 $23,448,464 $42,181,107 $91,487,144 $9,075,191
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows-pension $80,511 $64,930 $152,126 $297,567 $55,324
Total deferred outflows of resources $80,511 $64,930 $152,126 $297,567 $55,324
LIABILITIES
Current liabilities
Accounts payable $355,435 $28,875 $174,040 $558,349 $59,031
Payroll payable $66,558 $51,260 $119,130 $236,948 $43,504
Compensated absences $87,001 $86,807 $111,987 $285,795 $42,112
Due to other governments $1,166 – $593 $1,759 $39,488
Interest payable – – – – $144,831
Current portion of loans payable – – $45,516 $45,516 –
Current portion of revenue bonds payable, net $183,345 $86,047 $608,890 $878,281 –
Total current liabilites $693,504 $252,988 $1,060,157 $2,006,648 $328,966
Non-current liabilities
Loans payable – $56,250 $455,497 $511,747 –
Revenue bonds payable, net $2,851,803 $1,276,047 $9,400,707 $13,528,557 –
Unearned revenue – – – – $277,395
Total non-current liabilities  $2,851,803 $1,332,297 $9,856,204 $14,040,304 $277,395
Total liabilities $3,545,307 $1,585,285 $10,916,361 $16,046,952 $606,361
DEFERRED INFLOWS OF RESOURCES$606,361
Deferred inflows – advance grant – – $12,909 $12,909 –
Deferred inflow – pension $678,978 $515,295 $1,223,171 $2,417,444 $502,186
Total deferred inflows of resources $678,978 $515,295 $$1,236,080 $2,430,353 $502,186
NET POSITION
Net investment in capital assets $16,634,885 $12,264,222 $18,726,676 $47,635,783 $3,509,139
Restricted for pension assets $125,900 $97,290 $220,010 $443,200 $91,904
Restricted for debt service $109,785 292,497 $914,086 $1,316,369 –
Unrestricted $4,843,229 $8,758,806 $10,320,020 $23,922,054 $4,420,925
Total net position $21,713,799 $21,412,814 $30,180,793 $73,307,406 $8,021,968


Internal service funds are reported in the proprietary fund statements. They account for programs in government that serve other parts of the government. The city of Bothell has three internal service funds – Equipment Rental (Fleet), Self-Insurance, and Asset Replacement. Internal service funds are designed to be self-supporting. They bill the receiving department at rates intended to cover the costs of goods or services provided. Keep in mind that these funds are not reported in government-wide statements, as internal service accounts are canceled once we aggregate governmental activities with proprietary activities.

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