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La Porte Area Water Authority
<br />Management's Discussion and Analysis
<br />Notes to the Financial Statements — The notes provide additional information that is essential to a full
<br />understanding of the data provided in the fund financial statements. The notes to the financial statements can be
<br />found on pages 13-19 of this report.
<br />Other Information — In addition to the basic financial statements and accompanying notes, this report also
<br />presents certain supplementary information concerning the Water Authority's operations. Required
<br />supplementary information can be found on pages 22-35 of this report.
<br />FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
<br />As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the
<br />case of the La Porte Area Water Authority, assets exceeded liabilities by $7,020,950 at the close of the fiscal
<br />year.
<br />The largest portion of the Water Authority's net assets (59%) reflects its investment in capital assets (e.g., water
<br />production and distribution system), less any related debt used to acquire those assets that are still outstanding.
<br />The City uses these capital assets to provide water services to the participants; consequently, these assets are not
<br />available for future spending. Although the Water Authority's investment in its capital assets is reported net of
<br />related debt, it should be noted that the resources needed to repay this debt must be provided from other sources,
<br />since the capital assets themselves cannot be used to liquidate these liabilities.
<br />LA PORTE AREA WATER AUTHORITY'S NET ASSETS
<br />Business -Type Activities
<br />2011 2010
<br />Current and other assets
<br />$ 2,942,301
<br />Capital assets
<br />7,737,763
<br />Total Assets
<br />10,680,064
<br />Current liabilities
<br />658,412
<br />Noncurrent liabilities
<br />3,000,702
<br />Total Liabilities
<br />3,659,114
<br />Net Assets:
<br />Invested in capital assets, net 4,132,061
<br />of related debt
<br />Restricted 408,500
<br />Unrestricted 2,480,389
<br />Total Net Assets $ 7,020,950
<br />$ 2,744,898
<br />8,198,640
<br />10,943,538
<br />693,796
<br />3,625,058
<br />4,318,854
<br />3,988,582
<br />680,049
<br />1,956,053
<br />$ 6,624,684
<br />An additional portion of the City's net assets (6%) represents resources that are subject to external restrictions
<br />for debt service. The remaining balance of unrestricted net assets ($2,480,389) represents funds available to
<br />meet other ongoing obligations to participants and/or creditors.
<br />Analysis of the Water Authority's Operations — the following table provides a summary of the Water
<br />Authority's operations for the year ended September 30, 2011.
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