2025-city-of-oakland-acfr_final-123025.pdf

OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to introduce the City’s basic financial statements. The City’s basic financial statements consist of four components: • Government-wide Financial Statements • Fund Financial Statements • Notes to the Basic Financial Statements • Required Supplementary Information In addition, this report also contains other supplementary information. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to the financial statements for a private-sector business. The statement of net position presents information on all the City’s assets, deferred outflows and inflows of resources, and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation and sick leave. Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, community and human services, community and economic development, and public works and transportation. The business-type activities of the City include the sewer service system and the parks and recreation. The government-wide financial statements do not include the fiduciary funds, which comprise the private- purpose trust funds, pension trust funds, and custodial fund. Resources in the fiduciary funds are not available to support the City’s own programs. The government-wide financial statements include the primary government of the City and the Port of Oakland (Port), as a discrete component unit. Financial information for the Port is reported separately from the financial information presented for the primary government. Further information about the Port can be obtained from the Port Financial Services Division, 530 Water Street, Oakland, CA 94607 or visit the website at www.portofoakland.com. CITY OF OAKLAND Management’s Discussion and Analysis (Unaudited) Year Ended June 30, 2025 6