Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90Seattle City Light 2015 Annual Report - 10 - THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 and 2014 The balance net decrease of $0.3 million to $50.3 million was for minimal changes within environmental liabilities, risk management liabilities, and other. Environmental liabilities are primarily attributable to the estimated cost of remediating contaminated sediments in the lower Duwamish Waterway, a designated federal Superfund site. The Department is considered a potentially responsible party for contamination in the Duwamish River due to land ownership or use of property located along the river. Environmental liabilities decreased by $0.4 million to $33.6 million at the end of 2015. More information on environmental liabilities is found in Note 11 Environmental Liabilities and for other Noncurrent liabilities, primarily for risk management liabilities, in Note 8 Provision for Injuries and Damages of the accompanying financial statements. 2014 Compared to 2013 Total non-current liabilities decreased by $10.8 million to $67.3 million at the end of 2014. Non-current environmental liabilities decreased by $12.2 million to $34.0 million. During 2015, work focused on clean-up on two sites; Terminal 117 and Cedar Falls Bridge remediation. Accordingly, a large amount of the non-current liability was reclassified to current. The balance net decrease of $1.2 million to $24.4 million was negligible representing risk management liabilities, compensated absences, and other. Current Liabilities 2015 Compared to 2014 Current liabilities increased by $13.1 million for a total of $271.4 million at the end of 2015. Current liability increases of $24.4 million were for vouchers payable for ongoing operations, debt service, furlough days restored, taxes, power, and other. These were offset by decreases of $11.3 million in part due to payment for Terminal 117 and Cedar Falls Bridge remediation environmental projects during the year. In addition, current environmental liabilities were adjusted downward from the 2014 estimate that was inadvertently recorded. 2014 Compared to 2013 Current liabilities increased by $16.6 million for a total of $258.3 million at the end of the year. Of the net increase, $9.6 million was the result of higher environmental liabilities for ongoing clean-up of the Duwamish Waterway superfund site, with the net balance increase primarily for higher debt service from recent bond issues, and vouchers payable for ongoing operations. 10