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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 60 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
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<br />the City, assets exceed liabilities by $119.1 million as of September 30, 2012, in
<br />the primary government as follows:
<br />Condensed Schedule of Net Assets
<br />September 30, 2012 and 2011
<br />Amounts in (000's)
<br />Governmental ActivitiesBusiness-type ActivitiesTotals
<br />220112012201120122011
<br />201
<br />Current and other assets
<br />$ 57,13257,745$ 7,222$ 7,003$ 64,967$ 64,135$
<br />Capital assets75,888 71,70641,549 42,524117,437 114,230
<br />Total Assets
<br /> 128,838133,633 48,771 49,527 182,404 178,365
<br />Other liabilities
<br />5,9025,4111,5121,0187,413 6,429
<br />Long-term liabilities outstanding50,56851,1845,3426,02455,911 57,208
<br />Total Liabilities
<br /> 56,59556,470 6,854 7,042 63,324 63,637
<br />Net assets:
<br /> Invested in capital assets, nets of related
<br />debt 46,814 37,32437,567 37,606 84,381 74,930
<br />Restricted8,728 8,060559 680 9,287 8,740
<br />Unrestricted21,621 26,859 3,791 4,199 25,412 31,058
<br />Total Net Assets
<br />$ 72,24377,163$ 41,917$ 42,485$ 119,080$ 114,728$
<br />Net Assets Invested in Capital Assets Net of Related Debt
<br />The largest portion of the City's net assets (71%) 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 />A portion of the City's net assets, $9.3 million or 8% represents resources that are subject to external
<br />restriction on how they may be used.
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