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CITY OF LA PORTE, TEXAS
<br /> Management's Discussion and Analysis
<br /> For the Year Ended September 30, 2010
<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 77 -80
<br /> of this report.
<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 -125 of this report.
<br /> GOVERNMENT -WIDE FINANCIAL ANALYSIS
<br /> As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In
<br /> the case of the City of La Porte, assets exceeded liabilities by $111,289,712 at the close of the fiscal year.
<br /> By far the largest portion of the City's net assets $75,789,786 reflects its investment in capital assets (e.g., land,
<br /> buildings, machinery, equipment, improvements, construction in progress and infrastructure), less any related
<br /> debt used to acquire those assets that are 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 capital assets themselves cannot be used to
<br /> liquidate these liabilities.
<br /> City of La Porte's Net Assets
<br /> Govemmental Business -Type
<br /> Activities Activities Total
<br /> 2010 2009 2010 2009 2010 2009
<br /> Current and other assets $ 56,384,215 $ 53,527,689 $ 5,673,459 $ 5,672,420 $ 62,057,674 $ 59,200,109
<br /> Capital assets 67,484,940 62,533,458 46,380,067 46,648,862 113,865,007 109,182,320
<br /> Total Assets 123,869,155 116,061,147 52,053,526 52,321,282 175,922,681 168,382,429
<br /> Long term liabilities 50,569,787 43,417,622 6,910,440 7,165,771 57,480,227 50,583,393
<br /> Other liabilities 6,091,976 6,967,959 1,060,766 1,123,704 7,152,742 8,091,663
<br /> Total Liabilities 56,661,763 50,385,581 7,971,206 8,289,475 64,632,969 58,675,056
<br /> Net Assets:
<br /> Invested in capital assets,
<br /> net of related debt 35,194,777 32,667,469 40,595,009 40,206,362 75,789,786 72,873,831
<br /> Restricted 18,108,170 16,169,693 1,459,834 1,352,867 19,568,004 17,522,560
<br /> Unrestricted 13,904,445 16,838,404 2,027,477 2,472,578 15,931,922 19,310,982
<br /> Total Net Assets $ 67,207,392 $ 65,675,566 $ 44,082,320 $ 44,031,807 $ 111,289,712 $ 109,707,373
<br /> An additional portion of the City's net assets $19,568,004 (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 /> $15,931,922 (14 %) may be used to meet the government's ongoing obligations to citizens and creditors.
<br /> As of September 30, 2010, 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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