02-09-09 Regular Meeting of La Porte Fiscal Affairs Committee

Browse Search

CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2008 ECONOMIC FACTS AND NEXT YEAR'S BUDGETS AND RA TES The unemployment rate for the Houston metropolitan area is currently 5.2 percent, which is an increase from a rate of 4.4 percent a year ago. This compares identical to the state's average unemployment rate of 5.2 percent which is less than the national average rate of 6.2 percent. During the upcoming year, the City will closely monitor the volatility in the housing market. Although our area has not been adversely affected by home foreclosures, we will observe economic changes due to the recession. Total assessed property value for all residential and commercial property in the City of La Porte exceeded $1.9 billion for fiscal year 2008 which is 9 percent higher than last year. The trend for total assessed property values has been steadily increasing each year with an average annual increase of 3.5 percent over the past 5 years. However, in the upcoming fiscal year, we anticipate that residential and commercial values will remain flat. Sales tax receipts have grown 2% this fiscal year due to an increase in economic activity. This revenue source is the most volatile and subject to decline if an economic slowdown occurs. Assessed Property Valuations (in billions) Sales Tax Collections (in millions) 2 6 2.5 5 1.5 4 3 2 0.5 o 2004 2005 2006 2007 2008 o 2004 2005 2006 2007 2008 REQUEST FOR INFORMA TION This financial report is designed to provide our citizens, customers and creditors a general overview of the City's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Director of Finance, 604 West Fairmont Parkway, La Porte, Texas, 77571. 23