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other investments. As investments were called or matured, they had to be replaced by instruments earning lower
<br />yields or were reinvested in the pools. Additionally, the usage of fund balance decreased earning potential.
<br />The revenues for the new fiscal year are projected at $32,894,465, which is $829,918, or 2.46%, lower than they
<br />were in the current year. The revenues for the new fiscal year are shown below:
<br /> Original Projection Projection
<br />Category 2008-09 2009-10 Variance Percent
<br />
<br />General Property Taxes 11,786,500 12,021,871235,371 2.00%
<br />Franchise Taxes 1,992,068 2,151,309 159,241 7.99%
<br />Sales Taxes 3,085,011 2,892,980 (192,031) -6.22%
<br />Industrial Payments 9,860,078 8,718,883 (1,141,195) -11.57%
<br />Other Taxes 75,000 86,218 11,218 14.96%
<br />Licenses & Permits 627,680 601,785 (25,895) -4.13%
<br />Fines & Forfeits 1,405,065 1,523,886 118,821 8.46%
<br />Charges for Services 3,515,772 3,770,960 255,188 7.26%
<br />Parks & Recreation 204,490 205,990 1,500 0.73%
<br />Recreation & Fitness Center 226,000 201,812 (24,188) -10.70%
<br />Intergovernmental 6,000 3,500 (2,500) -41.67%
<br />Miscellaneous 30,000 30,000 - 0.00%
<br />Operating Transfers 460,719 460,271 (448) -0.10%
<br />Interest 450,000 225,000 (225,000) -50.00%
<br />
<br />Total 33,724,38332,894,465(829,918) -2.46%
<br />Property taxes
<br />are projected to increase by 2.00% due to growth in the tax base caused by increases in appraised
<br />values and new construction.
<br />Franchise Taxes
<br />are projected to increase by $159,241, or 7.99% when compared with the prior year’s budget.
<br />The majority of the increase is in the area of electricity and cable franchise fees. The increase in electrical
<br />franchise fees is attributable to a new agreement with Center Point Energy. The increased projection in cable
<br />franchise revenues is based on the 2008 and 2009 revenues. The City’s agreement for Cable franchise fees
<br />expires in October at which time the provider will enter into a state contract; however, it is not anticipated that
<br />this will have a negative impact on this revenue stream.
<br />Sales Taxes
<br />are projected to decrease by $192,031 over the current year budget due to decreased economic
<br />activity within the City.
<br />Industrial Payments
<br />are expected to decrease by $1,141,195 or 11.57%. This decrease is attributed to
<br />bankruptcies in a few of the plants located in the La Porte industrial zone. The City is unsure at this time whether
<br />the payment for fiscal year 2010 will be affected by these bankruptcies; however, the City took a conservative
<br />stance while preparing the budget and planned for a worst case scenario.
<br />Licenses and Permits
<br />are projected to be down from the current year budget by 4.13%, or $25,895, due to a slow
<br />down of development within the City. Several new projects are still underway, but have been delayed as a result
<br />of the national economic downturn.
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