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CITY OF LA PORTE, TEXAS
<br />MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
<br />The combining statements referred to earlier in connection with nonmajor governmental funds and
<br />internal service funds are presented immediately following the required supplementary information on
<br />pensions. Combining and individual fund statements and supporting schedules can be found beginning on
<br />page 50 of the City's Comprehensive Annual Financial Report.
<br />Government-Wide Financial Analysis
<br />As noted earlier, net assets may serve over time as a useful indicator of the City's financial position. For
<br />September 30, 2011
<br />the City, assets exceed liabilities by $114.7 million as of , in the primary government
<br />as follows:
<br />Condensed Schedule of Net Assets
<br />September 30, 2011 and 2010
<br />Amounts in (000's)
<br />Governmental ActivitiesBusiness-type ActivitiesTotals
<br />201120102011201020112010
<br />Current and other assets57,132$ 56,384$ 7,003$ 5,673$ 64,135$ 62,057$
<br />Capital assets71,706 67,48542,525 46,380 114,232 113,865
<br />Total Assets
<br /> 123,869128,838 49,528 52,053 178,366 175,922
<br />Other liabilities5,4116,0921,0191,0616,429 7,153
<br />Long-term liabilities outstanding51,18450,5706,0246,91057,209 57,480
<br />Total Liabilities
<br /> 56,66256,595 7,043 7,971 63,638 64,633
<br />Net assets:
<br /> Invested in capital assets, nets of
<br />related debt 37,324 35,195 37,606 40,595 74,930 75,790
<br />Restricted8,060 18,108 680 1,460 8,740 19,568
<br />Unrestricted26,859 13,904 4,199 2,027 31,058 15,931
<br />Total Net Assets
<br />$ 67,20772,243$ 42,485$ 44,082$ 114,728$ 111,289$
<br />Net Assets Invested in Capital Assets Net of Related Debt
<br />65%
<br />The largest portion of the City's net assets () reflects its investments in capital assets (e.g., land,
<br />buildings, machinery, equipment, improvements, construction in progress and infrastructure), less any
<br />debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide
<br />services to citizens; consequently, these assets are not available for future spending. Although the City's
<br />investment in its capital assets is reported net of related debt, it should be noted that the resources needed to
<br />repay this debt must be provided from other sources, since the assets themselves cannot be used to
<br />liquidate these liabilities.
<br />Restricted Net Assets
<br />$8.78%
<br />A portion of the City's net assets, million or , represents resources that are subject to external
<br />restriction on how they may be used. The remaining balance is unrestricted net assets, $31.1 million or
<br />27%, and may be used to meet the City's ongoing obligations to residents and creditors. Both of these
<br />categories remained relatively stable compared to the prior year.
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