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LA PORTE AREA WATER AUTHORITY
<br />Management's Discussion and Analysis (continued)
<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
<br />can be found on pages 13-19 of this report.
<br />Other Information — In addition to the basic financial statements and accompanying notes, this report
<br />also presents certain supplementary information concerning the Water Authority's operations. Required
<br />supplementary information can be found on pages 23-36 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.
<br />In the case of the La Porte Area Water Authority, assets exceeded liabilities by $7,156,249 at the close of
<br />the fiscal year.
<br />The largest portion of the Water Authority's net assets (60%) reflects its investment in capital assets (e.g.,
<br />water production and distribution system), less any related debt used to acquire those assets that are still
<br />outstanding. The City uses these capital assets to provide water services to the participants; consequently,
<br />these assets are not available for future spending. Although the Water Authority's investment in its
<br />capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt
<br />must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
<br />liabilities.
<br />La Porte Area Water Authority's Net Assets
<br />Current and other assets
<br />Capital assets
<br />Total Assets
<br />Current liabilities
<br />Noncurrent liabilities
<br />Total Liabilities
<br />Net Assets:
<br />Invested in capital assets, net
<br />of related debt
<br />Restricted
<br />Unrestricted
<br />Total Net Assets
<br />Business -Type Activities
<br />2012
<br />2011
<br />$ 3,079,220
<br />$ 2,942,301
<br />7,274,825
<br />7,737,763
<br />10,3 54,045
<br />10,680,064
<br />841,455
<br />658,412
<br />2,356,341
<br />3,000,702
<br />3,197,796
<br />3,659,114
<br />4,293,484
<br />4,132,061
<br />289,500
<br />408,500
<br />2,573,265
<br />2,480,389
<br />$ 7,156,249
<br />$ 7,020,950
<br />An additional portion of the Authority's net assets (4%) represents resources that are subject to external
<br />restrictions for debt service. The remaining balance of unrestricted net assets ($2,573,265) represents
<br />funds available to meet other ongoing obligations to participants and/or creditors.
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