City of La Porte Operating Budget 1998-1999

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I I I I I I I I I I I I I I I I I . . - Utility Fund Overall Fund Condition The projected end-of-year working capital balance for the Utility Fund is $2,291,851 which is approximately 38.1%, or 139 days of budgeted expenses. This is well above the targeted balance of 90 to 120 days of working capital as called for in the City's Financial Management Policies. Other Enterprise Funds All enterprise funds meet or exceed the working capital targets outlined in the financial management plan. One item of interest in these funds involves the Golf Course. The Golf Course has set aside $470,000 over the last several years to fund an expansion of its club house area. This project will be completed during fiscal year 98-99. In addition, the Golf Course Fund has decreased the transfer to the Debt Service Fund by $50,000 for the new year. This brings the total annual transfer to $150,000. Internal Service Funds Both of the internal service funds are operations which include funding for future large capital outlays and therefore are not easily measured by days of working capital. Both funds include sufficient amounts to adequately replace equipment as it becomes necessary. The Motor Pool Fund will expend $756,003 in replacing existing vehicles that have reached the end of their useful life while the Computer Fund will expend $25,170 to replace computer equipment. In addition to the $95,400 budgeted in the Computer Fund, the City will also spend $150,000 from the Capital Improvement Fund for computer systems. This additional amount is needed to fund the replacement of the Police and Municipal Court Data Processing System. When the Computer Fund was created in fiscal year 1993-94, the City elected to fund the new system with Capital Improvement funds instead of inflating lease fees for ~o years. Capital Outlay Funds The Capital Improvement Funds, contains numerous projects that will help fine tune the City infrastructure and facilities. The 1998-99 budget includes over $8.7 million of capital improvement. All of these projects are vital to the City's continued operation in a manner that is acceptable to our citizens. The projects identified for the fiscal year 1998-99 are described in Section 7. None of the projects will have a major impact on increasing operational costs. We expect increased efficiency to result from several of the projects, especially the computer enhancements and the improvements to the sewer system. TARGETED OPERATING BALANCES The City strives to maintain a minimum working capital balance of 90 to 120 days of operating expenses in its Operating Funds and 60 to 90 days of working capital balance in its Debt Service Funds. With the exception of the General Fund (which is slightly below at 87 days), all funds currently meet or exceed this bench mark. 1-11