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<br />CITY OF LA PORTE, TEXAS
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<br />Management's Discussion and Analysis
<br />For the Year Ended September 30, 2008
<br />
<br />Other Information - In addition to the basic financial statements and accompanying notes, this report also
<br />presents certain required supplementary information concerning the City's progress in funding its obligation to
<br />provide pension benefits to its employees. Required supplementary information can be found on pages 75-78
<br />of this report.
<br />
<br />The combining statements referred to earlier in connection with nonmajor governmental funds and internal
<br />service funds are presented immediately following the required supplementary information for the general fund.
<br />Combining fund statements and schedules can be found on pages 82-110 of this report.
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<br />GOVERNMENT-WIDE FINANCIAL ANAL YS/S
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<br />As noted earlier, net assets may serve over time as a useful indicator of a govemment's financial position. In
<br />the case of the City of La Porte, assets exceeded liabilities by $101,945,458 at the close of the fiscal year.
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<br />By far the largest portion of the City's net assets ($60,405,676) reflects its investment in capital assets (e.g.,
<br />land, buildings, machinery, equipment, improvements, construction in progress and infrastructure), less any
<br />related debt used to acquire those assets that are still outstanding. The City uses these capital assets to
<br />provide services to citizens; consequently, these assets are not available for future spending. Although the
<br />City's investment in its capital assets is reported net of related debt, it should be noted that the resources
<br />needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be
<br />used to liquidate these liabilities.
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<br /> City of La Porte's Net Assets
<br /> Governmental Business-Type
<br /> Activities Activities Total
<br /> 2008 2007 2008 2007 2008 2007
<br />Current and other assets $ 60,577,388 $ 57,295,634 $ 7,766,710 $ 7,231,350 $ 68,344,098 $ 64,526,984
<br />Capital assets 51,131,865 52,727,418 42,818,003 37,688,868 93,949,868 90,416,286
<br />Total Assets 111,709,253 110,023,052 50,584,713 44,920,218 162,293,966 154,943,270
<br />Long term liabilities 42,799,774 44,109,498 7,744,081 8,607,342 50,543,855 52,716,840
<br />Other liabilities 8,434,625 5,081,971 1,370,028 1,351,282 9,804,653 6,433,253
<br />Total Liabilities 51,234,399 49,191,469 9,114,109 9,958,624 60,348,508 59,150,093
<br />Net Assets:
<br />Invested in capital assets,
<br />net of related debt 24,922,673 27,529,009 35,483,003 29,481,368 60,405,676 57,010,377
<br />Restricted 16,566,966 13,316,591 2,188,240 2,184,725 18,755,206 15,501,316
<br />Unrestricted 18,985,215 19,985,983 3,799,361 3,295,501 22,784,576 23,281,484
<br />Total Net Assets $ 60,474,854 $ 60,831,583 $ 41,470,604 $ 34,961,594 $ 101,945,458 $ 95,793,177
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<br />An additional portion of the City's net assets $18,755,206 (18%) represents resources that are subject to
<br />external restrictions on how they may be used. The remaining balance of unrestricted net assets of
<br />$22,784,576 (22%) may be used to meet the government's ongoing obligations to citizens and creditors.
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<br />As of September 30, 2008, the City is able to report positive balances in all three categories of net assets, both
<br />for the government as a whole, as well as for its separate categories - governmental and business-type
<br />activities.
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