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1 <br /> Winter Park Water and Sanitation District <br /> MANAGEMENT'S DISCUSSION AND ANALYSIS <br /> December 31, 2010 <br /> The discussion and analysis of Winter Park Water and Sanitation District's financial <br /> performance provides an overall review of the District's financial activities for the year ended 1 <br /> December 31, 2010. The intent of this discussion and analysis is to look at the District's <br /> financial performance as a whole; readers should review the information presented here in <br /> conjunction with the basic financial statements and the notes to financial statements to enhance <br /> their understanding of the District's financial performance. <br /> Financial Highlights <br /> ➢ Assets of the District exceeded its liabilities at the close of the fiscal year by <br /> $17,415,074 (net assets). Of this amount, $9,868,133 (unrestricted net assets) may <br /> be used to meet the government's ongoing obligations to its citizens and creditors. <br /> > The District's total net assets increased by $258,739 over the prior fiscal year. <br /> > Operating revenues increased $21,849 over the prior year. The District collected $265 <br /> less in water and sewer service fees than in the prior year. <br /> > Operating expenses increased $159,493 over the prior year, of which $77,297 was due <br /> to increased depreciation expense. <br /> > Tap fees decreased $115,368, or 95%, because the slow economy resulted in fewer <br /> taps being purchased. <br /> Overview of the Financial Statements <br /> The Winter Park Water and Sanitation District basic financial statements included in this report <br /> are those of a special-purpose government engaged in a business-type activity, providing water <br /> and wastewater services. The statements are comprised of two components: 1) basic financial <br /> statements and 2) notes to the financial statements. This report also contains other <br /> supplementary information in addition to the basic financial statements themselves. <br /> Basic Financial Statements. The basic financial statements are designed to provide <br /> readers with a broad overview of the District's finances, in a manner similar to a private- <br /> sector business.. <br /> The Statement of Net Assets presents information on all of the District's assets and <br /> liabilities, with the difference between the two reported as net assets. Over time, <br /> increases or decreases in net assets may serve as a useful indicator of whether the <br /> financial position of the District is improving or deteriorating. <br /> The Statement of Revenues, Expenses and Changes in Net Assets presents information <br /> showing how the District's net assets changed during the most recent fiscal year. All <br /> changes in net assets are reported as soon as the underlying event giving rise to the <br /> change occurs, regardless of the timing of the related cash flows. Thus, revenues and <br /> expenses are reported in this statement for some items that will only result in cash flows <br /> induture fiscaLpesiods (e.g., earned compensation). The statement reports the District's <br /> 2 <br />