03-11-19 Regular Meeting of the La Porte City Council

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CITY OF LA PORTE MANAGEMENT'S DISCUSSIONAND ANALYSIS (continued) As management of the City of La Porte, we offer readers of the City of La Porte's financial statements this narrative overview and analysis of the financial activities of the City of La Porte for the fiscal year ended September 30, 2018. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i-vi of this report. FINANCIAL HIGHLIGHTS • The assets and deferred outflows of resources of the City of La Porte exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $116 million (net position). Of this amount,$31.0 million is restricted for special purposes. The remaining balance is unrestricted net position, $9.5 million, which can be used to meet the City's ongoing obligations to residents and creditors. Net position increased by $5.7 million as a result of operations. As a result of the prior year restatement, net position decreased by $27.0 million. The City of La Porte's total expenses were $70.4 million. Program revenues of $19.8 million reduced the net cost of the City's functions to be financed from the City's general revenues to $56.4 million. The City of La Porte's total long-term liabilities and debt increased by $18.9 million, or 21%, during the current fiscal year. This due primarily to the increase in total OPEB liability as a result of the implementation of GASB Statement No. 75. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City of La Porte's basic financial statements. The City's basic financial statements are comprised of three components: (1) government -wide financial statements, (2) fund financial statements and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. GOVERNMENT -WIDE STATEMENTS The government -wide statements report information about the City as a whole using accounting methods similar to those used by private -sector companies. The Statement of Net Position and the Statement of Activities, which are the government -wide statements, report information about the City as a whole and about its activities in a way that helps answer the question of whether the City is better off this year as compared to last year. These statements include all assets and liabilities and are presented on the accrual basis of accounting. All current year revenues and expenses are taken into account regardless of when the cash is received or paid. The Statement of Net Position presents information on all of the City of La Porte's assets, deferred outflows, liabilities and deferred inflows with the difference between the three reported as net position. Over time, deferred outflows, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City of La Porte is improving or deteriorating. iu p000iit p000uoo ti V000uouumv�oouo uuumu umt��moq��moq ��uut ��QQ��yy��pu�oi mu �� iouuuu �1IIV �1IIV uumV ��`� � ouu mfiti111➢uuuuur you mfiti111➢uuuuur °N�uum � you uillfimm�