|
CITY OF LA PORTE, TEXAS
<br />Management's Discussion and Analysis
<br />For the Year Ended September 30, 2004
<br />' Other Information - In addition to the basic financial statements and accompanying notes, this report also
<br />presents certain required supplementary information concerning the City's progress in funding its obligation
<br />to provide pension benefits to its employees. Required supplementary information can be found on page 69
<br />of this report.
<br />The combining statements referred to earlier in connection with nonmajor governmental funds and internal
<br />service funds are presented immediately following the required supplementary information on pensions.
<br />' Combining fund statements and schedules can be found on pages 72-88 of this report.
<br />GOVERNMENT -WIDE FINANCIAL ANALYSIS
<br />As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In
<br />the case of the City of La Porte, assets exceeded liabilities by $87,019,858 at the close of the fiscal year.
<br />By far the largest portion of the City's net assets $49,509,884 (57%) reflects its investment in capital assets
<br />(e.g., land, buildings, machinery, equipment, improvements, construction in progress, and infrastructure),
<br />less any related debt used to acquire those assets that are still outstanding. The City uses these capital
<br />assets to provide services to citizens; consequently, these assets are not available for future spending.
<br />Although the City's investment in its capital assets is reported net of related debt, it should be noted that the
<br />resources needed to repay this debt must be provided from other sources, since the capital assets
<br />' themselves cannot be used to liquidate these liabilities.
<br />City of La Porte's Net Assets
<br />1
<br />Governmental
<br />Activities
<br />Business -Type
<br />Activities
<br />Total
<br />2004
<br />2003
<br />2004
<br />2003
<br />2004
<br />2003
<br />Current and other assets
<br />$ 26,149,467
<br />$ 33,982,205
<br />$ 7,806,711 $
<br />9,172,756
<br />$ 33,956,178
<br />$ 43,154,961
<br />Capital assets
<br />39,705,979
<br />34,110,595
<br />35,193,134
<br />34,110,595
<br />74,899,113
<br />Total Assets
<br />26,149,467
<br />73,688,184
<br />41,917,306
<br />44,365,890
<br />68,066,773
<br />118,054,074
<br />'
<br />Long term liabilities
<br />-
<br />15,775,718
<br />7,507,468
<br />8,500,496
<br />7,507,468
<br />24,276,214
<br />Other liabilities
<br />6,822,322
<br />4,754,482
<br />2,108,756
<br />2,003,520
<br />8,929,078
<br />6,758,002
<br />Total Liabilities
<br />6,822,322
<br />20,530,200
<br />9,614,224
<br />10,504,016
<br />16,436,546
<br />31,034,216
<br />Net Assets:
<br />n
<br />1
<br />Invested in capital assets,
<br />net of related debt
<br />Restricted
<br />Unrestricted
<br />Total Net Assets
<br />23,400,108 3,268,462 26,109,776 3,268,462 49,509,884
<br />5,804,419 3,662,800 3,042,730 3,662,800 8,847,149
<br />19,327,145 23,953,457 25,375,044 4,709,368 44,702,189 28,882,825
<br />$ 19,327,145 $ 53,157,984 $ 32,306,308 $ 33,881,874 $ 51,633,451 $ 87,019,858
<br />An additional portion of the City's net assets $8,847,149 (10%) represents resources that are subject to
<br />external restrictions on how they may be used. The remaining balance of unrestricted net assets of
<br />$28,662,825 (33%) may be used to meet the government's ongoing obligations to citizens and creditors.
<br />As of September 30, 2004, the City is able to report positive balances in all three categories of net assets,
<br />both for the government as a whole, as well as for its separate categories - governmental and business -type
<br />activities.
<br />19
<br />
|