01-28-08 Special Called Regular Meeting of La Porte Fiscal Affairs Committee Minutes

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CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30,2007 ECONOMIC FACTS AND NEXT YEAR'S BUDGETS AND RA AFT The unemployment rate for the Houston metropolitan area is currently 4.4 percent, w a rate of 4.5 percent a year ago. This compares identical to the state's average unemployment rate of 4.2 percent which is comparable to the national average rate of 4.6 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 $1.7 billion for fiscal year 2007 which is 6 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. Sales tax receipts have grown 40% this fiscal year due to an increase in economic activity as well as an addition of a ~ cent sales tax for street maintencance. This revenue source is the most volatile and subject to decline if an economic slowdown occurs. Assessed A"operty Valuations (in billions) Sales Tax Collections (in millions) 2.5 2003 2004 2005 2006 2007 4.5 4 ./ 3.5 // 3/ 25 /~. . , 2/" 1~r 0.5"/ oj 2003 t 2 . ./ 2004 2005 2006 2007 REQUEST FOR INFORMA TlON 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