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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 30,2007
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<br />Other Information - In addition to the basic financial statements and accompanYi{g1ii\tD to\; 1iil5IB~0
<br />presents certain required supplementary information concerning the City's progress i U~).~galon to
<br />provide pension benefits to its employees. Required supplementary information can · 'no'od 00 p.O"' 70. 8
<br />of this report.
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<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 YSIS
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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 $95,793,177 at the close of the fiscal year.
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<br />By far the largest portion of the City's net assets ($57,010,377) reflects its investment in capital assets (e.g.,
<br />land, buildings, machinery, equipment, improvements, construction in progress and infrastructure), less any
<br />related debt used to acquire those assets that are still outstanding. The City uses these capital assets to
<br />provide services to citizens; consequently, these assets are not available for future spending. Although the
<br />City's investment in its capital assets is reported net of related debt, it should be noted that the resources
<br />needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be
<br />used to liquidate these liabilities.
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<br /> City of La Porte's Net Assets
<br /> Governmental Business- Type
<br /> Activities Activities Total
<br /> 2007 2006 2007 2006 2007 2006
<br />Current and other assets $ 57,295,634 $ 51,344,644 $ 6,472,819 $ 7,429,428 $ 63,768,453 $ 58,774,072
<br />Capital assets 52,727,418 45,856,003 37,688,868 38,595,964 90,416,286 84,451,967
<br />Total Assets 110,023,052 97,200,647 44,161,687 46,025,392 154,184,739 143,226,039
<br />Long term liabilities 44,109,498 36,883,566 8,607,342 9,444,483 52,716,840 46,328,049
<br />Other liabilities 5,081.971 5,545,896 1,351,282 1,356,227 6,433,253 6,902,123
<br />Total Liabilities 49,191,469 42,429,462 9,958,624 10,800,710 59,150,093 53,230,172
<br />Net Assets:
<br />Invested in capital assets,
<br />net of related debt 27,529,009 28,424,345 29,481,368 29,642,136 57,010,377 58,066,481
<br />Restricted 13,316,591 7,363,187 2,184,725 2,185.791 15,501,316 9,548,978
<br />Unrestricted 19,985,983 18,983,653 3,295,501 3,396,755 23,281,484 22,380,408
<br />Total Net Assets $ 60,831,583 $ 54,771,185 $ 34,961 ,594 $ 35,224,682 $ 95,793,177 $ 89,995,867
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<br />An additional portion of the City's net assets $15,501,316 (16%) represents resources that are subject to
<br />external restrictions on how they may be used. The remaining balance of unrestricted net assets of
<br />$23,281,484 (24%) may be used to meet the government's ongoing obligations to citizens and creditors.
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<br />As of September 30, 2007, 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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