2004 Annual Comprehensive Financial Report

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• • • • • Management's Discussion and Analysis (millions) This section of City of Louisville, Colorado's annual financial report presents the discussion and analysis of the City's financial performance during the fiscal year that ended on December 31, 2004. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-4 of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars. Financial Highlights • The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $140.2 million (net assets). Of this amount, $19.1(unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $3.6 million or 2.6%. This was due primarily to the increases in interest rates during 2004 generating more unrestricted investment earnings. • During the year, the City's revenue from taxes and other revenues for governmental programs exceeded the expenses by $4.0 million. This is a decrease of $.9 million over last year's comparison. This decrease is primarily attributable to increases in general revenues of $.5 offset by increase in the expenses for the City's governmental programs which have increased $1.6 million as fixed costs rise due to increased building maintenance and utility costs. • In the City's business -type activities, total revenue decreased by $1.1 million from last year due to the unexpected increase in rainfall during the summer of 2004 and a decrease in building construction which would normally generate water and sewer tap fees. Expenses, increased $.3 million due to increases in fixed costs for utilities. • The City's total debt has increased $5.6 million primarily due to the issuance of the Library Construction Bond of $7.4 million offset by principal payments of over $1.4 million 2004. See Figure 9. • At the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $23.7. Over 43.7% of this is available for spending at the government's discretion (unreserved, undesignated fund balance) which was close to prior year. Overview of the Financial Statements This annual report consists of four parts — management's discussion and analysis (this section), the basic financial statements, required supplementary information, and a section that presents combining statements for nonmajor governmental funds, internal service funds and budget statements. The basic financial statements include two kinds of statements that present different views of the City: • The first two statements are government -wide financial statements that provide both long-term and short-term information about the City's overall financial status. 11