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

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CITY OF LA PORTE MANAGEMENT'S DISCUSSIONAND ANALYSIS (continued) FINANCIAL ANALYSIS OF THE CITY'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 ending fund balances of $88.6 million, an increase of $6.6 million from the prior year. This increase is due to an increase in property taxes and cost containment. As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance -related legal requirements. Governmental Funds - The focus of the City's governmental funds is to provide information of 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 the City's net resources available for spending at the end of the fiscal year. The focus of the City's governmental funds it 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 $46.8 million, an increase of $6.3 million due to an increase in revenue collections and cost containment. 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 117% of total general fund expenditures and total fund balance represents 118% of the same. The Debt Service fund has a total fund balance of approximately $4.4 million, all of which is restricted for the payment of debt service. The net increase in fund balance from the prior year of $515 thousand was due to an increase in property tax revenue. The 2017 Certificate of Obligation Bonds Fund had a total fund balance of approximately $10.3 million, all of which is restricted for capital projects. The net decrease in fund balance from the prior year of $127 thousand was due to the expenditures related to public works. The Tax Increment Reinvestment Zone Fund had a total fund balance of approximately $1.3 million, all of which is restricted for capital projects. The net increase in fund balance from the prior year of $426 thousand was due to an increase in property tax revenue. Proprietary Funds. The City's proprietary funds provide the same type of information found in the government -wide financial statements. Unrestricted net position of the respective proprietary funds are Utility - $4.8 million, La Porte Area Water Authority - $7.3 million and Airport - $2.2 million. The changes in net position of the proprietary funds for 2018 were as follows: Utility — increase of $2.0 million, La Porte Area Water Authority — decrease of $448 thousand and Airport — decrease of $68 thousand. Increase in the Utility Fund is due to an increase in water sales billings. The decrease in the La Porte Area Water Authority is due to an increase in operating expenses, specifically water purchases and a true -up of water purchase cost. 15 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�