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

services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of employees and parties outside the City. The Police and Fire Retirement System (PFRS) Fund is reported as a pension trust fund. The private-purpose trust funds along with the custodial fund are also reported as fiduciary funds since their resources are not available to support the City’s own programs. For this reason, they are not reflected in the government-wide financial statements. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the Basic Financial Statements The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Required Supplementary Information The required supplementary information includes the budgetary schedule for the General Fund and the Other Special Revenue Fund, schedules of changes in the net pension liability and related ratios and pension plan contributions, and schedules of changes in the net OPEB liability and related ratios and OPEB plan contributions. Other Information In addition, this report presents combining statements and schedules referred to earlier in connection with nonmajor governmental funds, internal service funds, and fiduciary funds that immediately follow the required supplementary information. Government-Wide Financial Analysis Net position may serve over time as a useful indicator of the City’s financial condition. As of June 30, 2025, total assets and deferred outflows of resources exceed the total liabilities and deferred inflows of resources by $1.4 billion compared to a net position of $982.8 million at June 30, 2024, which represents an increase in net position of $414.7 million. Current and other assets increased by $62.9 million, primarily due to growth in business license tax, real estate transfer tax, voter-approved special tax, and legal settlements. Additionally, capital assets increased by $64.7 million. The City’s net position also reflects the net investment in capital assets of $1.3 billion for governmental and business-type activities. Of the remaining balance, $930.5 million of net position is subject to external restrictions on how it may be used. The unrestricted net position of negative $0.85 billion is comprised of a deficit balance of $0.94 billion for governmental activities, and a positive balance of $85.3 million for business-type activities. As of June 30, 2025, unrestricted net position for governmental and business-type activities increased by $309.4 million as compared to balances at June 30, 2024. CITY OF OAKLAND Management’s Discussion and Analysis (Unaudited) Year Ended June 30, 2025 8