03-23-15 Fiscal Affairs Committee Meeting

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CITY OF LA PORTE, TEXAS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) Business-type Activities. Revenues without transfers in the business-type activities totaled $10.1 million, a $492 thousand decrease from the prior year. This decrease is due to a decrease in charges for services and grants and contributions. A comparison between expenses and program revenues (charges for services) relating to Utility operations follows. Expenses and Program Revenues -Business-type Activities $7,000 $6,000 Expenses $5,000 Program Revenues $4,000 $3,000 $2,000 $1,000 $- Water ServicesSewer services Financial Analysis of the Government’s Funds The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As of the close of the current fiscal year, the City's governmental funds reported combined $47.1 an increase $1.7 ending fund balances ofmillion,offrom the prior year. This increase is due to an increase in sales and use taxes, intergovernmental revenues, property taxes, and industrial payments. Governmental Funds. The focus of the City’s governmental funds is to provide information on near- term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. The General fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the general fund was $21.3 million, an increase of $2.4 million for commitments for construction. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 59% of total general fund expenditures and total fund balance represents 71% of the same. The Debt Service fund had a total fund balance of approximately $2.8 million, all of which is restricted for the payment of debt service. The net increase in fund balance from the prior year of $278,423 was due to a debt refunding. to a debt refunding. 3/5/2015 to a debt refunding. The Capital Projects Fund experienced a decrease in Draft 3/5/2015 fund balance in the amount of $2,623,779 . This was a fund balance in the amount of $2,623,779 . This was a The Capital Projects Fund experienced a decrease in The Capital Projects Fund experienced a decrease in planned decrease as the Draft City utilized bond funds to construct 3/5/2015 and acquire various capital assets. planned decrease as the City utilized bond funds to construct City utilized bond funds to construct and acquire various capital assets. 8