City of La Porte Adopted Budget 1987-1988

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I I I I I I I I I I I I I I I I I . . - Page Three Budget l'tessage B. Updating the City's Financial Utility Plan, and C. Developing an Economic Development Plan and strategy. 9. Fund ing res ident ial trash pick up on a twice a month schedule. 10. Adopting a philosophy of "pay as you go" on authorized but unissued bonds. We are optimistic these efforts will help the City remain competitive for future growth opportunities by having the capacity to perform at a reasonable cost. The adopted budget reflects an overall increase of 4% over the last years adopted General Fund Budget. This major change is attributed to increased insurance premiums and the effect of the Capital Improvement P roj ects matu ring. The Ut il i ty Fund shows no pel"Cent increase and the City's enterprise funds are set apart as if they were in the private sector. While we are not profit motivated, we are efficiency oriented and motivated. Fiscal Year 1987-88 General Fund revenue projections represent a seven percent (7%) dec rease when compa red to FY 86-87 revenues. This is a result of decreased revenues in several areas. One major area is licenses and pernits. This revenue category projects new construction activity to be down by thirty-two percent (32%) when compared to previous year projections. Overall, the largest impact to our budget is the decrease in proposed tax revenues. Ad valorem tax valuations include a ne\-1 construction growth of $6,000,000. The ad valorem and Industrial In Lieu revenues reflect a shift of annexed valuations increased to 25% of the total industrial valuations. This results in a lowel~ projected Industrial In Lieu tax but a higher taxable value for ad valorem taxes. Industrial In Lieu valuations are down by 8% this year due to depreciation of plant machinery, averaging 4-6% and two plant shut downs. Delinquent tax revenues are up due to a stronger collection effort planned for the coming fiscal year. Tax debt service is reduced over the prior year due to restructuring debt requirements to include only tax related bonds and removal of revenue bonds. The revenue bonds debt requirement is reflected in the appropriate fund. Franchise and Gross Receipts list the inclusion of a telecommunications tax. Counci.l may consider this new source of revenue available to local Texas cities later in the budget year.