PROJ02041 - Laserfiche WebLink

Home Browse Search

Management's Discussion and Analysis Financial Report Town of Debeque, Colorado December, 31, 2005 Our discussion and analysis of Town of Debeque, Colorado's financial performance provides an overview of the town's financial activities for the fiscal year ending December 31, 2005. Please review in conjunction with the town's financial statements. REVIEWING THE ANNUAL REPORT The annual report covers multiple financial statements. The Statement of Net Assets and the Statement of Activities supply data about the activities of the town as a whole and provide information regarding the town's finances. For government activities, these statements provide long-term and short-term information about the town 's overall status. Financial reporting is similar to that found in the private sector with its basis in full accrual accounting. Fund financial statements show town operations in more detail than government-wide statements, as they provide information about the town's most important funds. FINANCIAL HIGHLIGHTS Due to this year's operations, the town's net assets are as follows: Net assets of business-type activities were $1,842,243 and net assets of governmental activities were $2,132,363. The current year's expense total was $792,951 as compared to the $680,428 generated in fees and charges, grants, general revenues, and taxes for governmental programs. In the previous year, expenses were $692,235 as compared to the $664,430 generated in tax and other revenues for governmental programs. For business-type activities, town revenues were $435,443. Expenses were $200,376. The annual cost of all town programs was $1,027,455. The previous year's cost was $892,611. The Town completed installing a new water treatment plant to increase the treatment capacity and bring the system into current technology at a cost of $461,109. The Town received grant funds totaling $175,000 and a loan of $100,000 to offset this cost of the new treatment plant. THE TOWN AS A WHOLE ANALYSIS Because the Statement of Net Assets and the Statement of Activities provide facts about the town as a whole, the statements can help determine if a town's financial condition has improved or deteriorated as a result of the year's activities. All assets and liabilities are included in the statements using the accrual basis of accounting. The accrual method is comparable to the accounting used by most private corporations. All current year revenues and expenses are included. It does not matter when cash is paid or received. These statements give an account of the town's net assets and any changes in those assets. However, to truly judge the condition of the town, some non-financial factors, such as diversification of the taxpayer base or the condition of the town's infrastructure, must be considered in addition to the financial information provided in this report. MI