City of La Porte Annual Budget 1995-1996

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The new policy was implemented in February of 1992. Prior to that date, our investments consisted of primarily short term instruments. For the three year period prior to the new polley, the City obtained a performance rate that was 3 basis points above the 90-day Treasury Bill (T -Bill) rate. Slnc:e implementation, the ~pread has increased considerably. For the 37 month period since Implementation of the new policy, the City has earned $876,793 in additional Interest earnings. . RISK MANAGEMENT Uability insurance premiums are expected to remain constant for the new fiscal year. The premiums for 1995 are 23.5% lower than they were in 1988, when the City increased efforts aimed at reducing premiums. Worker's compensation premiums are projected to increase slightly for the new year, but that follows a 50% percent decrease in the current year. The City attributes both of these favorable rates to the impact of internal review committees which have been active during the past six 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 Goals Statement is found starting on page 1-18. FINANCIAL MANAGEMENT POLICIES 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 polley Is found in section 9. Since the policy is a stand alone document, the City has elected to leav~ 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, 1994. In order to ~eceive this award, a governmental unit must publish a budget document that meets program criteria as a polley 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, CX~ T. \\~ Robert T. Herrera City Manager aJi~ Director of Finance/Assistant City Manager 1-12 I I I I I I I I I I I I I I I I I I I