Laserfiche WebLink
CITY OF LA PORTE, TEXAS <br />NOTES TO THE FINANCIAL STATEMENTS (continued) <br />Note 1 - Summary of Significant Accounting Policies (continued) <br />The City reports the following major proprietary funds: <br /> TheUtility Enterprise Fund is used to account for operations of the water and sewer services to <br />€ <br />the residents of the City. All activities necessary to provide such services are accounted for in this <br />fund, but not limited to administration, operations and maintenance of the water and sewer system <br />and billing and collection activities. The fund also accounts for the accumulation of resources for, <br />and the payment of, long-term debt principal and interest for water and sewer debt. All costs are <br />financed through charges to utility customers with rates reviewed regularly and adjusted if <br />necessary to ensure integrity of the fund. <br /> La Porte Area Water Authority is used to account for revenues and expenses related to obtaining <br />€ <br />raw surface water and converting it to potable water <br /> Airport Fund is used to account for financial activities of the airport which includes rentals, <br />€ <br />grants and other revenues. <br />Additionally, the government reports the Internal Service Funds which are used to account for the Motor <br />Pool, Technology and Insurance services provided to other departments of the City on a cost <br />reimbursement basis. <br />Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating <br />revenues and expenses generally result from providing services and producing and delivering goods in <br />connection with the proprietary fund’s principal ongoing operations. The principal operating revenues of <br />the enterprise funds are charges to customers for sales and services. Operational expenses for the <br />enterprise funds and internal service fund include the cost of sales and services, administrative expenses <br />and depreciation on capital assets. All revenues not meeting this definition are reported as non-operating <br />revenues and expenses. <br />D.Assets, liabilities, deferred outflows/inflows of resources and net position/fund balance <br />1.Cash and Cash Equivalents <br />Cash includes amounts in demand deposits, short-term investments which mature within ninety <br />days of the fiscal year end, and various petty cash funds. The short-term investments are stated at <br />cost or amortized cost, which approximate fair value. The short-term investments consist of U.S. <br />Treasury Bills and deposits in the Texas Local Government Pool (TexPool), the Local Government <br />Investment Cooperative (LOGIC) all of which have the general characteristics of a demand deposit <br />account. For the purpose of the statement of cash flows, Proprietary Fund types consider temporary <br />investments with a maturity of three months or less when purchased to be cash equivalents. <br />In accordance with GASB Statement No. 31, the City reports all investments at fair value, except <br />for “money market investments” and “2a7-like pools”. Money market investments, which are <br />short-term highly liquid debt instruments that may include U.S. Treasury and agency obligations, <br />short-term highly liquid debt instruments that mashort-term highly liquid debt instruments that ma 3/5/2015 y include U.S. Treasury and agency obligations, <br />short-term highly liquid debt instruments that may include U.S. Treasury and agency obligations, <br />short-term highly liquid debt instruments that ma <br />are reported at amortized costs. Investments pos Draft itions in external investment pools that are <br />are reported at amortized costs. Investments posare reported at amortized costs. Investments posare reported at amortized costs. Investments posare reported at amortized costs. Investments <br /> positions in external investment pools that are itions in external investment pools that are <br />operated in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of <br />operated in a manner consistent with the SEC’s operated in a manner consistent with the SEC’s operated in a manner consistent with the SEC’s operated in a manner consistent with the <br /> SEC’s Rule 2a7 of the Investment Company Act of Rule 2a7 of the Investment Company Act of <br />1940, such as TexPool and LOGIC are reported using the pools’ share price. <br />1940, such as TexPool and LOGIC are reported using the pools’ share price. 1940, such as TexPool and LOGIC are reported using the pools’ share price. 1940, such as TexPool and LOGIC <br /> are reported using the pools’ share price. 1940, such as TexPool and LOGIC are reported using the pools’ share price. <br />28 <br /> <br />