City of La Porte Annual Budget 1994-1995

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I I I I I I I I I I I I I I I I I I I The new policy was Implemented In February of 1992. Prior to that date, our Investments consisted of prlmarUy short term Instruments. For the three year period prior to the new policy, the City obtained a performance rate that was 3 basis points above the 9O-day Treasury "BDI (T -Bill) rate. Since Implementation, the spread has Increased considerably. For ftscal year 1993-94, the City Is expected to eam an additional $170,000 In Interest when compared to our previous method of Investing. This brings the total additional earnings since February 1992 to $835,000. RISK MANAGEMENT Uabllity Insurance premiums are expected to remain constant for the new fiscal year. The premiums for 1994 are 22% lower than they were In 1988. when the City Increased efforts aimed at reducing premiums. Worker's compensation premiums are projected to be 50% lower In 1994-95 than they were In 1993-94. The City attributes both of these reductions to the Impact of the Incident Review Board and the Safety Committee, both Internal committees. which have been very active during the past five years. LONG RANGE GOALS In June of 1988, the City started Into motion the largest City wide planning effort ever to occur In the area. The effort Involved over 100 citizens. The process took In excess of one year to complete and was coordinated by City staff. After countless committee meetings and various workshops, City Council adopted the plan, known as "VIsIons 89- on August 23, 1989. The executive summary from the GC?a1s Statement Is found starting on page 1-21. FINANCIAL MANAGEMENT POUCIES The City Council of the City of La Porte has adopted Financial Management Policies. These policies are used as guidelines by the City In financial decisions. A copy of the policy Is found In section 9. Since the policy Is a stand alone document, the City has elected to leave Its Table of Contents with the document. AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) presented an award for Distinguished Budget Presentation to the City for Its annual budget for the fiscal year beginning October 1, 1993. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. The award Is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting It to GFOA to determine Its eligibility for another award. ACKNOWLEDGMENT The preparation of the budget on a timely basis could not have been accomplished without the efforts and dedication of the staff of the Department of Finance. We would like to express our appreciation to our staff and other personnel from various departments who assisted In Its preparation: In conclusion, this balanced budget represents the latest of several expenditure strategies reflecting sound. prudent, financial management policies and practices. We are fortunate that our administration has been able to weather the distressed economic conditions of the Houston-Metropolitan area. Council Is to be congratulated for providing strong leadership. Respectfully submitted, ~ T. \-\~ Robert T. Herrera City Manager 1-13