FY 2006-2007_Budget - Laserfiche WebLink

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REPORTING LEVELS The following represents the reporting structure used in this document. Fund Department Division Line Item Detail Departments cross fund lines, for example, the Utility Fund divisions are under the management of the Directors of Public Works and Finance. A description of the Organization of Funds for the City can be found on page 19. LONG RANGE STRATEGIC PLANS The City has a Long Range Strategic Plan covering a period of ten years for its General Fund, Utility operation and the Debt Service Funds. These plans have helped the City identify, and prepare to meet, its needs in future years. DEBT MANAGEMENT The City has a Debt Management Plan that covers all of its debt service accounts. The plan outlines the extinguishment of current debt as well as future debt issues. The plan places emphasis on the next ten years. The plan is reproduced in its entirety . Highlights of the three funds are: ¾»¹·²²·²¹ ±² °¿¹» íìí The General Debt Service Fund is designed to maintain a constant tax rate of 9.9 cents per $100 dollar assessed valuation. This rate allows for the servicing of existing debt and the issuance of new debt. This rate of 9.9 cents is equal to 13.9% of the total property tax rate. The Utility Debt Service Fund is designed to receive revenues to cover debt as a transfer from the Utility Fund. Since this Fund has a healthy balance, no transfer is scheduled for FY2007. The La Porte Area Water Authority is designed to provide for an even revenue stream. This fund needs approximately $750,000 each year to service its debt. All three debt service funds use fund balance in a manner to allow for level annual revenue requirements. CASH MANAGEMENT The City continually revises and improves its cash management practices. The Investment Officer is responsible for monitoring the City’s cash position and for the prudent investing of the City’s idle funds. Staff continuously performs analyses of operational cash flows. The City’s philosophy is to match our investments with cash flows and rate yields. The City’s Investment Policy is reviewed and approved by the City Council annually, and is recognized and certified by the Government Treasurers’ Organization of Texas. The objectives of the Investment Policy are safety, liquidity, yield and risk of loss. The City uses a performance indicator to measure the City's performance. The Council’s Fiscal Affairs Committee reviews the portfolio quarterly. ïí