C.A.F.R., FY 2004-05 - Laserfiche WebLink

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. Total charges for services for the City of Paris were $16,130,521 compared to $16,143,845 the prevIOUS year while general revenues were $17,381,374 compared to $14,594,923 the previous year. Therefore, total revenues were $33,511,895 for the year 2004-05 and $30,738,768 for the year 2003-04. . Contribution income amounted to $907,566 and there was a gain of$I13,148 on the sale of Capital Assets. . $4,588,598 in transfers from governmental activities to business-type activities occurred during the year. . Liabilities decreased $3,317,323 or 6.68%. . Expenses decreased $1,839,482 or 5.05%. . The ratio of net assets to expenses was 200.04% for the year 2004-05 and 184.49% for the year 2003-04 while the ratio of unrestricted net assets changed from 28.52% in 2003-04 to $37.27% in 2004-05. . The ratio of debt service to total expenditures was 7.66% for the year 2004-05 and 8,62% for the year 2003-04. . Net debt to assets, a measure of solvency, was 38.43% in 2004-05 and 38.72% in 2003-04. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Paris' fmancia1 statements. The City of Paris' financial statements comprise 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 financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City of Paris' finances, in a manner similar to a private-sector business. The statement of net assets presents information on all of the City of Paris' assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Paris is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Paris that are principally supported by taxes and intergovernmental revenues (government activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Paris include general governmen~ public safety, public works, library, and airport. The business-type activities of the City of Paris include water production and distribution as well as wastewater collection and treatment. The government-wide fmancial statements include not only the City of Paris itself (known as the primary government), but also a legally separate economic development corporation (known as the component unit) over which the City of Paris is able to exercise significant contro1. Financial information for this component unit is reported separately from the fmancial information presented for the primary government itself. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Paris, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Paris can be divided into two categories: governmental funds and proprietary funds. 7