05-27-09 Meeting of the La Porte Redevelopment Authority Minutes

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Management's Discussion and Analysis As management of the La Porte Redevelopment Authority (the "Authority"), we offer readers of the Authority's financial statements this narrative overview and analysis of the financial activities of the Authority for the fiscal year ended September 30, 2008. We encourage readers to consider the information presented here in conjunction with the basic financial statements which follow this section. Overview of the Authority: The City of La Porte, Texas (the "City") authorized the creation of the La Porte Redevelopment Authority (the "Authority") by the Resolution No. 2000-19 passed on December 11, 2000. The Authority was set up as a local government corporation pursuant to provisions of Chapter 394 of the Texas Local Government Code. The Authority is organized as a public nonprofit corporation for the purpose of aiding, assisting, and acting on behalf of the City in the performance of its governmental function to promote the common good and general welfare of Tax Increment Reinvestment Zone (the "TIRZ") and neighboring areas and to promote, develop, encourage and maintain housing, educational facilities, employment, commerce and economic development in the City. The Authority may issue bonds with consent of City Council. The Authority is managed by a Board of Directors consisting of 9 members who are appointed by the Mayor with the approval of City Council. Financial Highlights: . The liabilities of the Authority exceeded its assets as of September 30, 2008, by $(293,847) (i.e. Net assets deficit). . The Authority's total net assets decreased by $293,847 during the year. . Cash and investments equaled $321,179. . Annual expenses consist of constructing of capital assets on behalf of the City and administrative costs. Overview of the Financial Statements: This discussion and analysis are intended to serve as an introduction to the Authority's basic financial statements. The Authority's basic financial statements comprise three components: (I) Management's Discussion and Analysis (this section); (2) government-wide financial statements, which include the fund financial statements, and (3) notes to the financial statements. The financial statements include the Statement of Net Assets and Governmental Fund Balance Sheet and Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance that present information for the Authority as a whole and provide an indication of the Authority's financial health. 2