10-23-06 Regular Meeting of Fiscal Affairs Committee Minutes

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CiTY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2006 ECONOMIC FACTS AND NEXT YEAR'S BUDGETS AND RA TES The unemployment rate for the Houston metropolitan area is currently 4.5 percent, which is a decrease from a rate of 6.1 percent a year ago. This compares identical to the state's average unemployment rate of 4.7 percent which is comparable to the national average rate of 4.4 percent. The City's budgets for all funds have benefited from a strong and expanding economy from the past several years, which is anticipated to continue in the upcoming Fiscal Year. The City is projected to benefit from growth in the tax base due to increased valuations and new construction. Total assessed property value for all residential and commercial property in the City of La Porte exceeded $2.1 billion for fiscal year 2006 which is 10 percent higher than last year. The trend for total assessed property values has been steadily increasing each year with an average annual increase of 16 percent over the past 5 years. Sales tax receipts have grown 16% 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) 1.7 2.5 2 1.5 2.1 ',.1' .., . .' 2/r /L-- 1.9/' 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 REQUEST FOR INFORMA nON 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 Interim Director of Finance, 604 West Fairmont Parkway, La Porte, Texas, 77571. 23