City of La Porte First Quarter Report 1990-1991

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I I I 1ST QUARTER REVENUES NON-TAX CATEGORIES I CATEGORV I I L.ICENSE I PERMITS CHARGES FOR SERVICES ~ .. f '.lr~. ..,.. FINES I FORFIETS "',! I~Wr.~;t::.., ...,.. '.:I','I~ I OTHER REVENUE ":...........: ~.~. ~ :!:J~~~'.n"!. ...i~;..f.; o 6 10 16 20 26 30 PERceNT COLLeCTeD 36 I _ FY 88-88 E3!J FY 80-81 D FY 88-90 I I I Regarding the Tax Category, it appears the Property and In-Lieu of Tax payments are down. However, we do not believe this to be a true picture. Revenues generated from Ad Valorem taxes are not usually collected until their due date, which is January 31st. In prior years, we did have several taxpayers elect to pay in December. We attribute the decline in these December revenues to the problems we have had with the mail system. We have had to regenerate and remail (or fax) a large quantity of .tax and in-lieu statements. I I Sales Taxes continue their upward trend. I All other categories appear to be running on target. I The only concern that we have is in the area of interest income. When we prepared the budget, we based our projection on an interest rate of 7.75%. At the time, we were receiving interest rates in excess of 8% on our investments so we felt we had a conservative number. Interest rates have now fallen below 7% and we believe that the potential exist for them to keep falling. Each percentage point drop below the estimate of 7.75% translates to a reduction in interest income for the General Fund of about $60,000. While this number is a large number, it's impact can easily be absorbed by the General Fund. The impact of the drop in rate will not impact us until the second quarter because of the diversity in our investment portfolio. I I I As a side note, we will be looking at refunding some of our older bond issues that have high interest rates in an attempt to take advantage of the current low interest rate market. I 2