03-22-21 Regular Meeting of the La Porte City Council

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CITY OF LA PORTE, TEXAS, TEXAS MANAGEMENTÓS DISCUSSION AND ANALYSIS (continued) For the year ended September 30, 2020, revenues without transfers in the governmental activities totaled $76.1 million. This represents an increase of approximately $2.7 million or 3.6% due primarily to an increase in property taxes and other taxes. BUSINESS-TYPE ACTIVITIES Revenues without transfers or interest in the business-type activities totaled $10.2 million, a $14,481 decrease from the prior year. This decrease is due to a decrease in investment earnings and contributions offset by a slight increase in charges for services due to an increase in usage. A comparison between expenses and program revenues (charges for services) relating to Utility operations follows. ExpenseandProgramRevenuesBusinessTypeActivities $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ UtilityLPAWAAirport ExpensesRevenues FINANCIAL ANALYSIS OF THE CITY'S FUNDS The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As of the close of the current fiscal year, the CityÓs governmental funds reported combined ending fund balances of $117.9 million, an increase of $16.0 million from the prior year. This increase is due to an increase in property taxes, industrial payments and cost containment. As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related legal requirements. Governmental Funds - The focus of the CityÓs governmental funds is to provide information of near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the CityÓs financing requirements. In particular, unassigned fund balance may serve as a useful measure of the CityÓs net resources available for spending at the end of the fiscal year. The General fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the general fund was $64.0 million, an increase of $6.7 million due to an increase in revenue collections and cost containment. As a measure of the general fundÓs liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 155% of total general fund expenditures and total fund balance represents 156% of the same. Draft 3-12-21 13 Fiscal Year 2020 Annual Report