Budget analysis of El Paso, Texas

Budget analysis of El Paso

Texas Financial Highlights

Combined County assets from governmental and business type activities exceeded liabilities at the close of fiscal year 2010 by $179,120,6 10, which represents total net assets. Of this amount, $167,589,57 1 or 93.56 percent relates to governmental-type activities while $1133 1,039 or 6.44 percent represents business-type activities. Total net assets are comprised of restricted and unrestricted assets and investment in capital assets net of related debt. Investment in capital assets net of related debt totaled $18,383,693 or 10.26 percent of total net assets. Restricted assets represent funds subject to constraints that are imposed externally by creditors, debt covenants, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Restricted net assets totaled $1 10,135,901 or 61.49 percent of total net assets of which the primary government and business type activities totaled $109,965,626 or 99.85 percent and $170,275 or .15 percent, respectively. Unrestricted net assets on the other hand may be used to meet the county's ongoing obligations to citizens and creditors and totaled $50,601,016 or 28.25 percent of total net assets. Fiscal year 2010 operations of the County resulted in total net assets increasing by $2,280,304 or 1.29 percent.

This was attributable to an increase of $2,460,526 or 1.49 percent in the governmental-type net assets and a decrease in business-type net assets totaling $180,222 or 1.54 percent. Explanation of these changes is depicted hereafter in this management discussion and analysis.

Government-Wide Financial Analysis

The net assets may serve over time as a useful indicator of a government's financial position. In the case of the County, assets exceeded liabilities by $179,120'6 10 at the close of fiscal year 2010. By far the largest component of the County's net assets represents restricted assets totaling $1 10,135,901 or 61.49 percent. These restricted net assets represent resources that are subject to external restrictions on how they may be used, and are comprised of capital project funds totaling $86,092,118 or 78.17 percent, special revenue funds totaling $2 1,432,389 or 19.46 percent, enterprise funds totaling $170,275 or .15 percent of restricted net assets. Also included are debt service funds totaling $2'44 1,119 or 2.22 percent of total restricted net assets. The next category relates to unrestricted net assets totaling $50,601,016 or 28.25 percent of total net assets, which may be used to meet the County's ongoing obligations to citizens and creditors. The last component of the County's net assets represents investment in capital assets (e.g., land, buildings, machinery, and equipment) totaling $18,383,693 or 10.26 percent of total net assets, which is net of any related debt used to acquire those assets that is still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the ...