C.A.F.R., FY 2008-09 - Laserfiche WebLink

Home Browse Search

• The ratio of net assets to expenses was 217.05% for the year 2007-08 and 220.55% for the year 2008-09. The decrease in long-term debt was the major factor in this improvement. Unrestricted net assets changed from $20,087,182 in 2007-08 to $22,357,422 in 2008-09 an increase of 11.30% reflecting the decrease in restrictions for construction projects. • The ratio of City-wide n .,t assets restricted for debt service to total expenditures was 5.03% for the year 2007-08 and 7.60% for the year 2008-09. The City had a larger increase in net restricted assets for debt than the increase in City- wide expenditures. • Net long-term debt to a sets, a measure of solvency, was 30.21% in 2007-08 and 27.60% in 2008-09. Decreasing debt caused this change. Overview of the Financial Stat ments This discussion and analysis are tended to serve as an introduction to the City of Paris' basic financial statements. The City of Paris' basic financial stateme is are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) not to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial St tements 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 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 as ets 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 fist 1 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 re enues (governmental 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 go ernment, public safety, public works, library, and airport. The business-type activities of the City of Paris include water prod action and distribution as well as wastewater collection and treatment. The government-wide financial 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 control. Financial information for this component unit is reported separately from the financial information presented for the primary government itself. Fund Financial Statements A fund is a grouping of related counts that is used to maintain control over resources that have been segregated for specific activities or objectives. The C' 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. Governmental Funds Governmental funds are used o account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on n ar-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end f the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for government activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financ' g decisions. Both the governmental fund balance sheet and the governmental fund statement 4