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<br />CiTY OF LA PORTE, TEXAS
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<br />Management's Discussion and Analysis
<br />For the Year Ended September 30,2006
<br />
<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 to
<br />provide pension benefits to its employees. Required supplementary information can be found on pages 75-78
<br />of this report.
<br />
<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 for the general fund.
<br />Combining fund statements and schedules can be found on pages 84-104 of this report.
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<br />GOVERNMENT-WIDE FINANCIAL ANAL YS/S
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<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 $90,229,405 at the close of the fiscal year.
<br />
<br />By far the largest portion of the City's net assets (65%) reflects its investment in capital assets (e.g., land,
<br />buildings, machinery, equipment, improvements, construction in progress and infrastructure), less any related
<br />debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide
<br />services to citizens; consequently, these assets are not available for future spending. Although the City's
<br />investment in its capital assets is reported net of related debt, it should be noted that the resources needed to
<br />repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
<br />liquidate these liabilities.
<br />
<br /> City of La Porte's Net Assets
<br /> Governmental Business-Type
<br /> Activities Activities Total
<br /> 2006 2005 2006 2005 2006 2005
<br />Current and other assets $ 52,030,444 $ 43,543,568 $ 8,234,088 $ 7,559,518 $ 60,264,532 $ 51,103,086
<br />Capital assets 45,974,337 46,416,520 38,697,136 33,734,685 84,671,473 80,151,205
<br />Total Assets 98,004,781 89,960,088 46,931,224 41,294,203 144,936,005 131,254,291
<br />Long term liabilities 36,734,566 31,157,332 9,444,485 7,498,569 46,179,051 38,655,901
<br />other liabilities 5,545,899 3,857,929 2,846,688 2,533,691 8,392,587 6,391,620
<br />Total Liabilities 42,280,465 35,015,261 12,291,173 10,032,260 54,571,638 45,047,521
<br />Net Assets:
<br />Invested in capital assets,
<br />net of related debt 28,424,346 28,933,050 29,642,136 26,589,684 58,066,482 55,522,734
<br />Restricted 7,690,387 6,642,077 2,185,791 3,407,445 9,876,178 10,049,522
<br />Unrestricted 19,269,532 19,369,700 2,812,123 1,264,814 22,081,655 20,634,514
<br />Total Net Assets $ 55,384,265 $ 54,944,827 $ 34,640,048 $ 31,261,943 $ 90,024,313 $ 86,206,770
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<br />An additional portion of the City's net assets $9,548,978 (11 %) represents resources that are subject to external
<br />restrictions on how they may be used. The remaining balance of unrestricted net assets of $22,613,946 (25%)
<br />may be used to meet the government's ongoing obligations to citizens and creditors.
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<br />As of September 30, 2006, the City is able to report positive balances in all three categories of net assets, both
<br />for the government as a whole, as well as for its separate categories - governmental and business-type
<br />activities.
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