HomeMy WebLinkAbout03-11-13 Fiscal Affairs Committee
CHUCK ENGELKEN,CHAIR
JOHN ZEMANEK
CouncilmemberDistrict 2
Councilmember At-Large A
Alternate Member 1
DARYL LEONARD
Councilmember District 3
JAY MARTIN
Councilmember District 5
TOMMY MOSER
Alternate Member 2
Councilmember District 4
CITYOF LA PORTE FISCAL AFFAIRS COMMITTEE
MEETING AGENDA
Notice is hereby given of ameeting of the City of La Porte Fiscal Affairs Committee to be held onMonday,
March11, 2013, at 5:00 p.m.,
in the La Porte City Hall Council Chambers, 604 West Fairmont Parkway,
LaPorte, Texas, regarding the items of business according to the agenda listed below:
1.
Call to Order
2.
Consider approval of minutes of the January 28, 2013,meeting of the Fiscal Affairs Committee – P.
Fogarty
3.
Receive and review 2012 Comprehensive Annual Finance (CAFR) Report – P. Rinehart
4.
Set date for next meeting – P. Rinehart
5.
Administrative Reports – C. Alexander
6.
Committeecomments regarding matters appearing on agenda; recognition of community members,
city employees, and upcoming events; inquiry of staff regarding specific factual information or
existing policies –Committee members Engelken, Leonard, Moser, Martin, and Zemanek.
7.
Adjourn
In compliance with the Americans with Disabilities Act, the City of La Portewill provide for
reasonable accommodations for persons attending publicmeetings. To better serve attendees,
requestshould be received 24 hours prior to the meetings. Please contact Patrice Fogarty, City
Secretary, at 281.470.5019.
CERTIFICATION
I certify that a copy of the March11,2013, agenda of items to be considered by the Fiscal Affairs Committeewas
posted on the City Hall bulletin board on March 5, 2013.
Patrice Fogarty, City Secretary
I certify that the attached notice and agenda of items was removed by me from the City Hall bulletin board on the
____ day of ________________, 2013.
__________________________________________________________________
Name and Title
Page 1 of 1
March11, 2013, Fiscal Affairs Committee Agenda
CHUCK ENGELKEN,CHAIR
JOHN ZEMANEK
CouncilmemberDistrict 2
Councilmember At-Large A
Committee Member
Alternate Member 1
DARYL LEONARD
JAY MARTIN
Councilmember District 3
Councilmember District 5
Committee Member
Alternate Member 2
TOMMY MOSER
Councilmember District 4
Committee Member
MINUTES OF MEETING OF FISCAL AFFAIRS COMMITTEE
JANUARY 28,2013
January 28, 2013, at 5:00p.m.
The Fiscal Affairs Committee met on in the La Porte City Hall Council
Chambers, 604 West Fairmont Parkway, La Porte,Texas, to considerthe following items of business:
1.Call to Order
ChairmanChuck Engelken called the meeting to order at 5:00p.m. Committee Members present
wereTommy Moser,Daryl Leonard, Alternate Member 1 John Zemanek, who arrived at 5:13 p.m.,
andAlternate Member 2 Jay Martin.Also present wereCity Secretary Patrice Fogarty, City
Manager Corby Alexander, Assistant City Manager Traci Leach, Finance Director Michael Dolby
andTreasurer Shelley Wolny.
2.Consider approval of Minutes of the November 12,2012,meeting of the Fiscal Affairs
Committee
–P. Fogarty
Committee member Leonardmoved to approve the minutes of the November 12,2012,meeting of
.MOTION PASSED.
the Fiscal Affairs CommitteeCommittee member Moserseconded.
Ayes:Chairman Engelken,Committee MembersMoserandLeonard
Nays:None
Absent:None
3.Receive and review FirstQuarter (FY 2013) Investment Report–M. Dolby
Treasurer Shelley Wolny provided an update on the FirstQuarter (FY 2013) Investment Report.
4.Receive andreview months of October andNovember(FY 2012) Purchasing Card
Expenditures –M. Dolby
Finance Director Michael Dolby provided an update for the month of OctoberandNovember(FY
2012) Purchasing Card Expenditures.
5.Set date for next meeting –M. Dolby
The Committee setMarch 11, 2013,at 5:00 p.m.,as the date and time for the next meetingto
review the audit.
6.Administrative Reports
–C. Alexander
Finance Director Michael Dolby reportedhe received a phone call from State Representative Davis’
Office regarding telecommunications sales taxes and discovered Verizon, T-Mobile and Sprint are
Page 1of 2
January 28, 2013, Fiscal Affairs Committee Minutes
charging citizens telecommunications sales taxes,andhe hopes toobtain assistance with the
matterfrom RepresentativeDavis’ office. Mr. Dolby also reported a letter was received from the
Comptroller’s Office regarding Monument Inn payments of sales taxes and being located in the City
of Houston and not the City of La Porte. Mr. Dolby advised an option for reimbursement can beby
reducing current sales taxes on a monthly basis.
7.Committee Comments
–Matters appearing on agenda;Recognition of community members, city
employees, and upcoming events;Inquiry of staff regarding specific factual information or existing
policy.
There were no Committee comments.
8.Adjourn
There being no further businessthe meeting was adjourned at 5:21 p.m.
Respectfully submitted,
________________________________
Patrice Fogarty, City Secretary
Passed and approved on the _____day of___________, 2013.
________________________________
Chairman Chuck Engelken
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January 28, 2013, Fiscal Affairs Committee Minutes
CITY OF LA PORTE, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Year Ended September 30, 2012
Prepared By
Department of Finance
CITY OF LA PORTE, TEXAS
TABLE OF CONTENTS
Page
Introductory Section
Letter of Transmittal i
GFOA Certificate of Achievement vii
Organization Chart viii
List of Elected and Appointed Officials ix
Financial Section
Report of Independent Auditors
1
Management’s Discussion and Analysis
3
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Assets 15
Statement of Activities 16
Fund Financial Statements:
Balance Sheet - Governmental Funds 18
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net
Assets 19
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds 20
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 21
Statement of Net Assets - Proprietary Funds 22
Statement of Revenues, Expenses and Changes in Fund Net Assets – Proprietary
Funds 23
Statement of Cash Flows - Proprietary Funds 24
Notes to the Financial Statements 25
Required Supplementary Information:
General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 54
Notes to Required Supplementary Budget Information 55
Required Pension System Supplementary Information 56
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds:
Combining Balance Sheet 60
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 64
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
Budgetary Comparison Schedules:
Debt Service Funds 70
Special Revenue Funds:
Hotel/Motel Tax 71
Section 48 Sales Tax 72
Tax Increment Reinvestment Zone 73
Grant Fund 74
Street Maintenance Sales Tax Fund 75
Emergency Services Sales Tax Fund 76
CITY OF LA PORTE, TEXAS
TABLE OF CONTENTS (continued)
Page
Combining and Individual Fund Statements and Schedules (continued)
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual:
Budgetary Comparison Schedules:
Capital Projects Funds:
Transportation & Other Infrastructure 77
1998 General Obligation Bonds 78
2000 Certificate of Obligation Bonds 79
2004 Certificate of Obligation Bonds 80
2005 Certificate of Obligation Bonds 81
2005 General Obligation Bonds 82
2006 Certificate of Obligation Bonds 83
2006 General Obligation Bonds 84
2007 Certificate of Obligation Bonds 85
2010 Certificate of Obligation Bonds 86
Drainage & Improvements 87
Supplementary Individual Fund Financial Statements and Schedules -
General Fund
Schedule of Revenues – Budget and Actual 90
Schedule of Expenditures – Budget and Actual 91
Combining Financial Statements – Internal Service Funds
Combining Statement of Net Assets 98
Combining Statement of Revenues, Expenses and Changes in Fund
Net Assets 99
Combining Statement of Cash Flows 100
Exhibit
Unaudited Statistical Section
Net Assets by Component 104 1
Changes in Net Assets 106 2
Fund Balances of Governmental Funds 110 3
Changes in Fund Balances of Governmental Funds 112 4
Assessed Value and Estimated Actual Value of Taxable Property 114 5
Property Tax Rates - Direct and Overlapping Governments 116 6
Principal Property Taxpayers 118 7
Property Tax Levies and Collections 119 8
Ratios of Outstanding Debt by Type 120 9
Ratios of General Bonded Debt Outstanding 122 10
Direct and Overlapping Governmental Activities Debt 123 11
Pledged Revenue Coverage 124 12
Demographic and Economic Statistics 125 13
Principal Employers 126 14
Full-Time Employees by Function/Program 127 15
Operating Indicators by Function/Program 128 16
Capital Assets Statistics by Function/Program 130 17
INTRODUCTORY SECTION
CITY OF LA PORTE
Established 1892
March 11, 2013
To the Honorable Mayor,
Members of City Council, and
Citizens of the City of La Porte, Texas:
The Finance Department and City Manager’s Office are pleased to submit the Comprehensive Annual
Financial Report for the City of La Porte, Texas for the fiscal year ended September 30, 2012. This report
is published to provide the City Council, City staff, our citizens, our bondholders and other interested
parties with detailed information concerning the financial condition and activities of the City government.
This report consists of management’s representations concerning the finances of the City of La Porte.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the City has established a comprehensive internal control framework that is designed both
to protect the government’s assets from loss, theft or misuse and to compile sufficient reliable information
for the preparation of the City of La Porte’s financial statements in conformity with GAAP. The cost of
internal controls should not outweigh their benefits; therefore the City of La Porte’s comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute assurance
that the financial statements will be free from material misstatement. As management, we assert that, to
the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City of La Porte’s financial statements have been audited by Whitley Penn, LLP, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that
the financial statements of the City of La Porte for the fiscal year ended September 30, 2012, are free of
material misstatement. The independent audit involved examining, on a test basis, evidence supporting
the amount and disclosures in the financial statements, assessing the accounting principles used and
significant estimates made by management and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering
an unqualified opinion that the City of La Porte’s financial statements for fiscal year ended September 30,
2012, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as a
component of the financial section of this report.
The independent audit of the financial statements of the City of La Porte included a federally mandated
“Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair presentation of
the financial statements, but also on the audited government’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving the
administration of federal awards. These reports are available in the City of La Porte’s separately issued
Single Audit Report. GAAP requires that management provide a narrative introduction, overview and
analysis to accompany the basic financial statements in the form of Management’s Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City of La Porte’s MD&A can be found immediately following the report of the
independent auditors.
i
Profile of the City
The City of La Porte, incorporated in 1892, is located in the southeast quadrant of Harris County and is
bounded on the north by the Houston ship channel, on the east by Galveston Bay and the south by the
Bayport channel. The City of La Porte currently encompasses 19 square miles and serves a population of
35,280.
The City is a home rule city operating under the Council-Manager form of government. Policymaking and
legislative authority are vested in a governing council consisting of the mayor and eight other members.
The city council is responsible, among other things, for passing ordinances, adopting the budget,
appointing committees and hiring the City Manager, City Secretary and Attorney. The City Manager is
responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day
operations of the City and for appointing the heads of various departments. The Council is elected on a
non-partisan basis. The Mayor and Council members serve three-year staggered terms. Six of the council
members are elected by district. The Mayor and the two remaining council members are elected at large.
The City of La Porte provides a full range of services, including police and fire protection, the
construction and maintenance of streets and other infrastructure and recreational activities and cultural
events. Certain services are provided through a legally separate Water Authority, which functions, as a
blended component unit and in essence, is a department of the City of La Porte, and, therefore, has been
included as an integral part of the City of La Porte’s financial statements. Additional information on the
Water Authority and other blended component units can be found in Note 1.B. of the notes to the
financial statements. The City has established a Taxing Increment Reinvestment Zone one (the Zone).
The zone is presented as a blended component unit and is being reported as a governmental fund type (see
Note 1 B). The City has also established a section 4 B Sales Tax Corporation (see Note 1 B). The City’s
accounting records for general governmental operations are maintained on modified accrual basis, with
the revenues being recorded when available and measurable and expenditures being recorded when the
services or goods are received and the liabilities are incurred. Accounting records for the City’s utilities
and other proprietary activities are maintained on the accrual basis.
The annual budget serves as the foundation for the City of La Porte’s financial planning and control.
Budgetary control has been established at the fund level. All agencies of the City of La Porte are required
to submit requests for appropriation to the City Manager on or before May 26 of each year. The City
Manager uses these requests as the starting point for developing a proposed budget. The City Manager
then presents this proposed budget to council for review prior to August. The council is required to hold a
public hearing on the proposed budget and to adopt a final budget by no later than September 30th. The
appropriated budget is prepared by fund, function (e.g., public safety) and department (e.g., police). The
directors are given latitude to approve transfers of appropriations within a department. Transfers of
appropriations between funds, however require the special approval of the city council. Budget-to-actual
comparisons are provided in financial reports for each individual governmental fund for which an
appropriated annual budget has been adopted. For the general fund, this comparison is presented on page
56 as part of the required supplementary information. For governmental funds, other than the general
fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection
of this report, which starts on page 72. Formal budgetary integration is employed as a management
control device during the year for the General Fund and Enterprise Funds. Formal budget integration is
not employed for the Debt Service and Capital Projects Funds because effective budgetary control is
alternatively achieved through bond indenture provisions and legally binding construction contracts,
respectively.
Economic Condition
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the City of La Porte operates.
ii
Local economy.
The City of La Porte is located in the southeast quadrant of Harris County, which is a 1,723 square mile
county is a leading oil, gas and petrochemical areas. The County has more than 3,200 manufacturing
plants, the nation’s largest concentration of petrochemical plants, the third largest United States seaport
and is a corporation management center. A significant part of the County’s major employers,
manufacturers, education and financial institutions are located in Houston, the County seat. The Texas
Medical Center, located in Harris County, is one of the nation’s largest, providing medical care and
educational opportunities. Higher education facilities includes: University of Houston, Rice University,
Texas Southern University, St. Thomas University and Houston Baptist University, all offering full four-
year as well as postgraduate programs. The Lyndon B. Johnson Space Center is also located here. Located
some 20 miles southeast of Houston on Galveston Bay in Harris County are the three communities that
make up the La Porte Bayshore Area: La Porte, Morgan’s Point and Shoreacres. The area has a combined
population of approximately 40,000. Though much of the image of this area is industrial, the La Porte-
Bayshore area is still characterized by an expanse of resort homes.
Future planning.
The La Porte 2020 Comprehensive Plan is a 20-year master plan adopted by the City Council to guide
policy decisions relating to the physical and economic development of the community. In general, the
plan indicates how the community desires to develop and redevelop over the course of the next twenty
years. The comprehensive plan is a physical plan; it is long range, comprehensive and states the goals,
objectives and policies of the local government. The comprehensive plan provides clear direction through
specific statements of action to achieve the desired results envisioned by citizens and the leadership of the
community. The essential objectives of the comprehensive plan are as follows:
It is a plan to guide the future physical development and redevelopment of the community;
The time frame is long, extending over a twenty-year horizon;
It encompasses a large geographic area including the corporate limits and ETJ of the community;
It is general in nature, allowing some issues to be resolved and many decisions to be made;
It articulates ideas in a framework of goals and objectives, policies and actions, and plans and
projects;
It is intended foremost, to serve as a continuing guide to decision-making, to provide a common
direction and to provide stability as issues are addressed and future decisions are made.
Residential Development.
Neighborhoods are one of La Porte’s greatest assets as they form a foundation for a sound quality of life.
The City is made up of several distinct neighborhood areas, each with somewhat different physical
characteristics such as the age of housing, street configuration, and the sizes of structures and lots. Much
of the City’s overall image and identity is due to the unique character of its neighborhoods and these
distinguishing features should, therefore, be preserved. Neighborhoods that are safe, well maintained and
have character which will maintain property values and thus maintain a sound neighborhood environment
along with a stable residential tax base. The attractive appearance and environmental quality of existing
and future low-density residential neighborhoods should be protected and improvements made where
necessary to maintain the value of properties and enhance the quality of life. As the city continues to
develop it is important that the integrity of the neighborhoods is preserved and the value and enjoyment of
property is maintained and enhanced.
iii
Goals for residential development:
Consider programs to revitalize and rehabilitate existing housing where needed.
Meet the future housing needs by providing for a variety of housing options.
Encourage the rehabilitation or replacement of substandard housing.
Promote a standard of home ownership encouraging well-maintained residential properties.
Preserve the integrity of existing neighborhoods and create livable and safe neighborhood
environments.
Protect the attractive appearance and environmental quality of existing neighborhoods and make
necessary improvements to maintain the value of properties and enhance the quality of life.
Beautification and Conservation.
Citizens have expressed great interest for enhancing the visual appearance of La Porte and the
redevelopment and reinvestment in Downtown, along major corridors and in nonresidential areas.
Through public involvement it is apparent that citizens visualize attractive shopping centers, livable
neighborhoods, landscaped roadways, pleasant places to walk and an enhanced quality of life. They want
successful shopping areas that appeal to shoppers. They see the opportunities in downtown to create a
destination that combines a lively entertainment district in a historically significant area, retail stores
interspersed with restaurants and professional offices and a blend of residential units as well.
Goals for Beautification:
Improve the community character to make it a more desirable place to live, work and visit.
Improve the aesthetic visual environment through enhancement of site design, signage, roadways,
parking areas, open space and landscaping.
Invest in Downtown to establish a vibrant mix of places to work, live and visit, with shops,
restaurants, entertainment and a variety of dwelling units.
Redevelopment Strategy.
Urban redevelopment efforts require cooperative action to encourage new and sustained private
investment and to provide supporting rehabilitation of public infrastructure. A key part of the process is
determining what strategic actions the community should take to achieve its redevelopment goals and
objectives. Successful redevelopment will often require cooperation and coordination between agencies at
different levels of government as well as non-profit community organizations. This should include
coordination of physical improvements with social service programs, which aim to enhance the health and
economic capacity of residents in targeted neighborhoods.
Redevelopment Goals:
Stabilize and improve the quality of neighborhoods and other areas in decline by attracting
renewed private investment activity.
Revitalize the City’s historic downtown area.
Relevant Financial Policy
City Council voted to adopt GASB 54 which resulted in the passage of a resolution that measures net
financial resources available to finance expenditures of future periods.
iv
Major Initiatives
Following the completion of a comprehensive city-wide drainage plan, City Council directed staff to
alleviate affected neighborhoods from surface water flooding. Consequently, in 2010, the City issued
$6.28 million in certificates of obligation to be spent on engineering and construction projects. In 2011
the City was also a recipient of the second round of disaster recovery funds of $4.1 million which will
also alleviate flooding on surface roads.
Long Term Planning
Given the current economy and the uncertainty of the next few years, the City’s existing financial position
remains strong. The City has incorporated several strategies to decrease the expenses to the City over the
next several years. Rising costs of personnel and the related benefits have been a challenge to the City;
however, over the last few years, a healthy fund balance in the General Fund has allowed the City to
weather these rising costs. In an effort to limit affects of rising personnel costs on future years,
compounding merit increases for employees was not funded this year; however, council approved a one
time stipend and health incentive programs were established to control costs. In another effort to reduce
costs, in fiscal year 2010 the City transferred excess fund balance from the General Fund to the Motor
Pool Fund to reduce lease fees by prefunding vehicle replacements. Other operational costs remain
steady.
Overall, revenues for the City have remained fairly stable. The City is projecting a slight increase in
property tax revenues. Sales tax revenues, which represent about 9% of revenues, are beginning to
increase again. Despite the unfavorable economy, the City has some new retail growth, which has aided
in sales tax revenue increases. The residential solid waste fee was increased in 2012.
Conservative revenue estimates and efforts to reduce expenditures have contributed to the City’s strong
financial position and have allowed the City to weather the economic slump. We are especially pleased
that there have been no property taxes rate increases for a number of years. Additional capital projects are
being funded by utilizing excess fund balances and previously issued debt that had been stranded. With
the associated fund draw downs, the remaining fund balances continue to meet operational objectives and
current fiscal policies.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal
year ended September 30, 2011. This was the thirty-first consecutive year that the City has received this
prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily
readable and efficiently organized comprehensive annual financial report. This report satisfied both
generally accepted accounting principles and applicable legal requirements.
v
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In
addition, the government also received the GFOA’s Distinguished Budget Award for its annual budget
document. In order to qualify for the Distinguished Budget Presentation Award, the government’s budget
document was judged to be proficient in several categories, including as a policy document, a financial
plan, an operations guide and a communications device. The preparation of this report would not have
been possible without the efficient and dedicated services of the entire staff of the finance and
administration department. We would like to express our appreciation to all members of the department
who assisted and contributed to the preparation of this report. Credit also must be given to the mayor and
city council for their unfailing support for maintaining the highest standards of professionalism in the
management of the City of La Porte’s finances.
Respectfully submitted,
vi
vii
CITY OF LA PORTE
Organizational Chart
viii
CITY OF LA PORTE, TEXAS
LIST OF ELECTED AND APPOINTED OFFICIALS
For the year ended September 30, 2012
Elected Officials Position
Louis Rigby Mayor
Michael Mosteit Council Member - District One
Chuck Engelken Council Member - District Two
Daryl Leonard Council Member – District Three
Tommy Moser Council Member - District Four
Jay Martin Council Member - District Five
Mike Clausen Council Member - District Six
John Zemanek Mayor Protem – At Large A
Dottie Kaminski Council Member – At Large B
City Management Position
Corby Alexander City Manager
Traci Leach Assistant City Manager
Ken Adcox Police Chief
David Mick Director of Public Services
Patrice Fogarty City Secretary
Denise Mitrano Municipal Judge
Michael G. Dolby Director of Finance
ix
FINANCIAL SECTION
Houston Offi ce
3411 Richmond Avenue
Suite 500
Houston, Texas 77046
713.621.1515 Main
whitleypenn.com
REPORT OF INDEPENDENT AUDITORS
To the Honorable Mayor and Members
of the City Council & Citizens
City of La Porte, Texas
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of La Porte, Texas
(the “City”) as of and for the year ended September 30, 2012, which collectively comprise the City’s
basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City of La Porte, Texas’ management. Our responsibility is to express opinions on
these financial statements based on our audit. We did not audit the financial statements of La Porte
Redevelopment Authority which represents 5 percent of the aggregate remaining fund balances and 21%
of the revenues of the aggregate remaining funds. Those financial statements were audited by other
auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the
amounts included for La Porte Redevelopment Authority.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and the significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion based on our audit and the report of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City, as of September 30, 2012, and the respective changes in financial position, and cash flows,
where applicable, thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March 11,
2013, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of our
audit.
1
An Independent
Member of
DallasFort WorthHouston
To the Honorable Mayor and
Members of City Council
City of La Porte, Texas
Page 2
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, and budgetary comparison information and pension information system on pages
3 through 11 and 54 through 56, respectively, be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s financial statements. The combining and individual nonmajor fund financial
statements are presented for purposes of additional analysis and are not a required part of the financial
statements. Such information is the responsibility of management and were derived from and relate
directly to the underlying accounting and other records used to prepare the financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the combining and individual nonmajor fund
financial statements are fairly stated in all material respects in relation to the financial statements as a
whole.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s financial statements. The introductory and statistical sections are presented for the
purposes of additional analysis and are not a required part of the basic financial statements. Such
information has not been subjected to the auditing procedures applied in the audit of the basic financial
statements, and accordingly, we do not express an opinion or provide any assurance on it.
Houston, Texas
March 11, 2013
2
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of La Porte (the “City”), we offer the readers of the City’s financial
statements this narrative overview and analysis of the financial activities of the City for the fiscal year
ended September 30, 2012. It should be read in conjunction with the accompanying letter of transmittal
and the accompanying basic financial statements.
Overview of the Financial Statements
The discussion and analysis serves as an introduction to the City’s basic financial statements. The City’s
basic financial statements are comprised of three components: 1) government-wide financial statements,
2) fund financial statements, 3) notes to the financial statements and required supplementary information.
This report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide Financial Statements.
The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector
business.
The statement of net assets presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net assets.Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.
uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through their user fees and charges (business-
type activities). The governmental activities of the City include general government, public safety, health
and sanitation and culture and recreation. The business-type activities of the City consist of the water and
sewer utilities, airport, and the La Porte Area Water Authority.
The government-wide financial statements can be found on pages 15 through 17 of this report.
Fund Financial Statements.
A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into two categories - governmental and
proprietary – and utilize different accounting approaches.
3
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
Governmental Funds.
Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains 20 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and
changes in fund balances for the general, debt service and capital improvements funds, which are
considered to be major funds. Data from the other 17 governmental funds are combined into a single,
aggregated presentation.
The City adopts an annual appropriated budget for its general fund. A budgetary comparison statement
has been provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 18 through 21 of this report.
Proprietary Funds.
The City maintains two types of proprietary funds. Proprietary funds are used to
report the same functions presented as business type activities in the government-wide statements. The
City uses proprietary funds to account for its utilities, airport and water authority. Internal service funds
are an accounting device used to accumulate and allocate costs internally among the City’s various
functions. The City uses its internal service funds to account for motor pool services, technology services
and insurance. Because these services predominantly benefit the governmental rather than business type
functions, they have been included in the governmental activities in the government-wide financial
statements.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements, only in more detail. The City uses enterprise funds to account for
its Utility operations, La Porte Area Water Authority and the Airport. All internal service funds are
combined into a single aggregated presentation in the proprietary fund financial statements. The basic
proprietary fund financial statements can be found on pages 22 through 24 of this report.
Notes to the Financial Statements.
The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found on pages 25 through 51 of this report.
Other Information.
In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City's progress in funding its
obligation to provide pension benefits to its employees and general fund budgetary comparisons.
Required supplementary information can be found on pages 53 through 55 of the City's Comprehensive
Annual Financial Report.
4
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
The combining statements referred to earlier in connection with nonmajor governmental funds and
internal service funds are presented immediately following the required supplementary information on
pensions. Combining and individual fund statements and supporting schedules can be found beginning on
page 60 of the City's Comprehensive Annual Financial Report.
Government-Wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of the City's financial position. For
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the City, assets exceed liabilities by $119.1 million as of September 30, 2012, in
the primary government as follows:
Condensed Schedule of Net Assets
September 30, 2012 and 2011
Amounts in (000's)
Governmental ActivitiesBusiness-type ActivitiesTotals
220112012201120122011
201
Current and other assets
$ 57,13257,745$ 7,222$ 7,003$ 64,967$ 64,135$
Capital assets75,888 71,70641,549 42,524117,437 114,230
Total Assets
128,838133,633 48,771 49,527 182,404 178,365
Other liabilities
5,9025,4111,5121,0187,413 6,429
Long-term liabilities outstanding50,56851,1845,3426,02455,911 57,208
Total Liabilities
56,59556,470 6,854 7,042 63,324 63,637
Net assets:
Invested in capital assets, nets of related
debt 46,814 37,32437,567 37,606 84,381 74,930
Restricted8,728 8,060559 680 9,287 8,740
Unrestricted21,621 26,859 3,791 4,199 25,412 31,058
Total Net Assets
$ 72,24377,163$ 41,917$ 42,485$ 119,080$ 114,728$
Net Assets Invested in Capital Assets Net of Related Debt
The largest portion of the City's net assets (71%) reflects its investments in capital assets (e.g., land,
buildings, machinery, equipment, improvements, construction in progress and infrastructure), less any
debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City's
investment in its capital assets is reported net of related debt, it should be noted that the resources needed to
repay this debt must be provided from other sources, since the assets themselves cannot be used to
liquidate these liabilities.
Restricted Net Assets
A portion of the City's net assets, $9.3 million or 8% represents resources that are subject to external
restriction on how they may be used.
5
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
Unrestricted Net Assets
The remaining balance is unrestricted net assets, $25.4 million or 21%, and may be used to meet the City's
ongoing obligations to residents and creditors. Both of these categories remained relatively stable compared
to the prior year.
The following table provides a summary of the City’s operations for the year ended September 30, 2012,
with comparative totals for the year ended September 30, 2011, Governmental activities increased the
City’s net assets by $4.9 million. Business-type activities decreased net assets by $0.6 million.
6
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
At the end of the current fiscal year, the City is able to report positive balances in all three categories of
net assets, both for the government as a whole, as well as for its separate governmental and business-type
activities.
Governmental Activities.
A comparison of program expenses to program revenues and revenues by
source for governmental activities follows:
Expenses and Program Revenues -Governmental Activities
20,000
18,000
16,000
Expenses
14,000
Program Revenues
12,000
10,000
8,000
6,000
4,000
2,000
0
General Public Public Culture and Health, Interest on
GovernmentSafetyWorksRecreationWelfare and Long-term
Sanitationdebt
Revenue sources for governmental activities were distributed as follows:
Revenues by Source -Governmental Activities
Grants and
Charges for
contributions
services
3%
17%
Other taxes
22%
Property taxes
Industrial
36%
payments
22%
For the year ended September 30, 2012, revenues without transfers in the governmental activities
totaled $49.9 million. This represents an increase of approximately $0.0 million or 0.1%. In the prior
year, the City realized a gain of $4.2 million on the sale of property. During the current year, they
received only $1.9 million from the sale of property but had an increase in sales tax revenues of $2.1
million due to increased economic activity and an additional ¼ cent emergency service sales tax.
7
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
Total expenses decreased for fiscal year 2012 in comparison to fiscal year 2011. Public Works expenses
decreased due to fewer project costs in 2012 compared to 2011.
Business-type Activities.
Revenues without transfers in the business-type activities totaled $10,572
million, a $0.8 million decrease from the prior year. This decrease is mainly due to a decrease in capital
grants and contributions. A comparison between expenses and program revenues (charges for services)
relating to Utility operations follows.
Expenses and Program Revenues -Business-Type Activities
$9,000
$8,000
$7,000
$6,000
$5,000
Revenue
$4,000
Expense
$3,000
$2,000
$1,000
$-
2012201120122011
Water ServicesSewer Services
Financial Analysis of the Government’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 City's governmental funds reported combined
ending fund balances of $43.1 million, an increase of$0.5 million from the prior year. This increase is due
to an increase in sales and use taxes and intergovernmental revenues.
Governmental Funds.
The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows and balances of spendable resources. Such information is useful in assessing the
City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a
government’s 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 $23.8 million, an increase of $4.6 million compared to last year. The
increase in General Fund fund balance is due in part to a reduction of transfers to other funds; transfers to
the Capital Projects fund decreased by $1.5 million since capital construction was decreased. The General
Fund also saw an increase in property and other tax revenues from 2011. As a measure of the general
fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total
fund expenditures. Unassigned fund balance represents 69% of total general fund expenditures and total
fund balance represents 70% of the same.
The Debt Service fund had a total fund balance of approximately $3.1 million, all of which is reserved for
the payment of debt service. The net decrease in fund balance from the prior year of $22,346 was due to
more debt service payments made than revenues collected.
8
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
The Capital Projects Fund experienced a decrease in fund balance in the amount of$2,525,307. This was a
planned decrease as the City utilized bond funds to construct and acquire various capital assets.
Proprietary Funds.
The City’s proprietary funds provide the same type of information found in the
government-wide financial statements.
Unrestricted net assets of the respective proprietary funds are Utility - $909 thousand, La Porte Area
Water Authority - $2.6 million and Airport - $358 thousand. The changes in net assets of the proprietary
funds for 2012 was as follows: Utility - decrease of $550 thousand, La Porte Area Water Authority -
increase of $135 thousand and Airport - decrease of $154 thousand.
General Fund Budgetary Highlights
Actual revenues exceeded original and amended General Fund budgeted revenues by $2,232,055.
Property taxes and industrial payments exceeded the projected budget by $755,516 and $571,444
respectively. Sales and use taxes, franchise fees and licenses and permits also exceeded budget by
$640,216, $166,944 and $128,121 respectively.
Total appropriations exceeded expenditures by $1,383,726, the majority of which can be attributed to five
departments. Administration had a positive variance in the amount of $324,145 due to a reduction in
special programs. Planning and Engineering had a positive variance of $176,104 due to open positions.
The variance in Fire and Police for $209,840 and $216,815 was due to open positions in the department.
Culture and recreation had a positive variance of $175,742 due to open positions.
The city made budget adjustments of approximately $400 thousand because of additional proceeds
from the sale of land.
Capital Asset and Debt Administration
Capital Assets.
The City’s investment in capital assets for its governmental and business type activities
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as of September 30, 2012 amounted to $117.4 million (net of accumulated
depreciation). This investment in capital assets includes land, buildings, roads, park facilities, water and
wastewater plants and service lines, machinery and equipment, and construction in progress. The total
increase in the City’s investment in capital assets for the current fiscal year was approximately $3.2
Error! Not a valid link.
million. The following table shows capital asset activity for the 2012 fiscal year
(in 000’s):
Major capital asset events during the current year include the reporting of a drainage master plan study.
9
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
Construction in progress at year-end represents ongoing projects; to include various water and sewer
projects. Additional information on capital asset activity can be found in note 5 to the financial
statements.
Long-term Debt.
At the end of the current fiscal year, the City had total bonded debt outstanding of
$42.8$38.8
million. Of this amount, million is backed by the full faith and credit of the City, and the
remainder represents revenue bonds secured solely by specified revenue sources.
The City’s total debt decreased by approximately $2.4 million during the fiscal year. They key factor in
this decrease was payment of debt.
The City of La Porte maintains and “Aa2”, “AA”, and “AA-“by Moody’s, Standard and Poor’s and Fitch
respectively for general obligation debt. The revenue bonds have been rated “A2”, “A”, “NR” by
Moody’s, Standard and Poor’s and Fitch respectively.
Additional information on long-term debt activity can be found in note 6 to the financial statements.
Economic Factors and Next Year’s Budgets and Rates
The unemployment rate for the City of La Porte is currently 6.3 percent which is a decrease from the
rate of 9.0 percent a year ago. This is less than the state’s average unemployment rate of 6.8 percent
which is less than the national average of 7.8 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 future economic changes. Total assessed value for all residential
and commercial property in the City of La Porte exceeded $2.3 billion for fiscal year 2012. The trend
for total assessed values has been steadily increasing each year with an average annual increase of 5
percent over the past five years.
Assessed property values trends (in billions):
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10
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
Sales tax receipts have increased 37 percent this fiscal year.
Sales tax revenues trends (in millions):
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Contacting the City's Financial Management
This financial report is designed to provide our citizens, customers and creditors a general overview of the
City’s finances. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to the Director of Finance, 604 West Fairmont Parkway, La
Porte, Texas, 77571.
11
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12
BASIC FINANCIAL STATEMENTS
13
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14
15
CITY OF LA PORTE, TEXAS
TATEMENT OF ACTIVITIES
S
For the Year Ended September 30, 2012
Program Revenue
Operating Capital Grants
Charges for Grants and and
ExpensesServicesContributionsContributions
Functions/Programs
Primary government
Governmental Activities:
General Government14,091,176$ 843,898$ 239,654$ -$
Public Safety17,374,5663,127,595 431,076 -
Public Works3,784,047 267,534 766,127 -
Culture and Recreation6,361,313 1,384,810 78,348 644
Health, Welfare and Sanitation2,423,898 2,197,491 - -
Interest on Long-term debt1,268,112 - -
Total governmental activities
7,821,32845,303,112 1,515,205 644
Business-type activities:
Water Services7,691,088 6,054,683 - 858,431
Sewer services2,932,057 3,600,979 - -
Airport182,700 28,340 - -
Total business-type activities
9,684,00210,805,845 - 858,431
Total primary government
$ 17,505,33056,108,957$ 1,515,205$ 859,075$
General revenues:
Taxes:
Property taxes
Sales and use taxes
Industrial payments
Franchise taxes
Unrestricted investment earnings
Miscellaneous
Special item - gain on sale of asset
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending
See Notes to Financial Statements.
16
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Governmental Business-type
ActivitiesActivities
Total
$ -(13,007,624)$ (13,007,624)$
-(13,815,895) (13,815,895)
-(2,750,386) (2,750,386)
-(4,897,511) (4,897,511)
-(226,407) (226,407)
-(1,268,112) (1,268,112)
-(35,965,935) (35,965,935)
(777,974)- (777,974)
668,922- 668,922
(154,360)- (154,360)
(263,412) (263,412)
(263,412)(35,965,935) (36,229,347)
17,251,121- 17,251,121
8,267,162- 8,267,162
10,471,444- 10,471,444
2,311,944- 2,311,944
12,309142,951 155,260
16,387167,922 184,309
-1,939,699 1,939,699
(334,029)334,029 -
(305,333)40,886,272 40,580,939
(568,745)4,920,337 4,351,592
72,243,28742,485,386114,728,673
$ 41,916,64177,163,624$ 119,080,265$
17
BALANCE SHEET
GOVERNMENTAL FUND
S
eptember 30, 2012
S
Capital Other Total
Debt Service Improvements Governmental Governmental
General FundFundFundFundsFunds
Cash and cash equivalents
$ 2,340,09719,817,710$ 5,884,995$ 7,715,995$ 35,758,797$
Investments
742,0406,240,632 1,857,661 1,408,878 10,249,211
Receivables, net of allowance for
uncollectibles
40,9713,787,296 2,697 833,292 4,664,256
Due from other governments
-- - 84,653 84,653
Due from other funds
-51,837 - 662,000 713,837
Inventories
-94,401 - - 94,401
3,123,10829,991,876 7,745,353 10,704,818 51,565,155
Accounts payable2,803,768 - 1,079,544 449,899 4,333,211
Accrued salaries payable796,001 - - 5,355 801,356
Due to others- - 112,392 - 112,392
Due to other funds- - - 713,837 713,837
Deferred revenue2,427,550 32,572 - 33,810 2,493,932
Other payables- - - 50,343 50,343
32,5726,027,319 1,191,936 1,253,244 8,505,071
Inventories94,401 - - - 94,401
Debt service- 3,090,536 - 410,061 3,500,597
Grants- - - 441,232 441,232
Economic development- - - 3,052,164 3,052,164
Public safety- - - 974,523 974,523
Capital projects- - - 3,817,390 3,817,390
Public works- - - 787,036 787,036
Construction- - 6,553,417 - 6,553,417
Assigned for encumbrances30,003 - - - 30,003
-23,840,153 - (30,832) 23,809,321
3,090,53623,964,557 6,553,417 9,451,574 43,060,084
$ 3,123,10829,991,876$ 7,745,353$ 10,704,818$ 51,565,155$
See Notes to Financial Statements.
18
19
20
21
CITY OF LA PORTE
TATEMENT OF NET ASSETS
S
ROPRIETARY FUNDS
P
eptember 30, 2012
S
Governmental
Business-type ActivitiesActivities
Internal Service
Utility FundLPAWAAirportTotalsFund
Assets
Current Assets:
Cash and cash equivalents
$ 937,0911,218,572$ 272,471$ 2,428,134$ 4,599,784$
Investments
1,212,7691,056,913 86,400 2,356,082 1,464,780
Accounts receivable, net of allowance for
doubtful accounts
184,111991,301 2,342 1,177,754 120,556
Accrued interest receivable
993975 125 2,093 2,182
Inventories
-4,800 - 4,800 33,362
Deferred charges
49,057- - 49,057 -
Restricted cash and cash equivalents
695,199508,577 - 1,203,776 -
Total Current Assets
3,079,2203,781,138 361,338 7,221,696 6,220,664
Non-current Assets:
Capital Assets:
Land and improvements
-224,308 203,504 427,812 -
Construction in progress
-3,751,099 - 3,751,099 -
Buildings and improvements
-57,620 - 57,620 -
Improvements other than buildings
15,429,68064,209,708 5,778,399 85,417,787 -
Vehicles and equipment
6,130652,564 - 658,694 13,838,476
Less Accumulated depreciation
(8,160,985)(37,317,557) (3,285,523) (48,764,065) (7,843,199)
Total Non-current Assets
7,274,82531,577,742 2,696,380 41,548,947 5,995,277
Total Assets
10,354,04535,358,880 3,057,718 48,770,643 12,215,941
Liabilities
Current Liabilities:
Accounts payable
213,097669,272 1,316 883,685 22,420
Accrued salaries payable
-92,424 - 92,424 22,232
Due to other funds
-- 777 777 -
Other current liabilities
-5,230 1,689 6,919 -
Interest payable
3,3587,309 - 10,667 -
Customer deposits
-517,252 - 517,252 -
Claims and judgments
-- - - 500,075
Long-term debt, current portion
Compensated absences
19,175- - 19,175 -
Bonds payable, current portion
625,000262,500 - 887,500 -
Total Current Liabilities
841,4551,573,162 3,782 2,418,399 544,727
Non-current Liabilities:
Compensated absences
-220,514 - 220,514 80,932
Net pension obligation
-271,460 - 271,460 -
OPEB obligation
-799,788 - 799,788 -
Bonds payable, current portion
2,356,341787,500 - 3,143,841 -
Total Non-current Liabilities
2,356,3412,079,262 - 4,435,603 80,932
Total Liabilities
3,197,7963,652,424 3,782 6,854,002 625,659
Net Assets
Invested in capital assets, net of related debt
4,293,48430,527,742 2,696,380 37,517,606 5,995,277
Restricted for debt service
289,500269,809 - 559,309 -
Unrestricted908,905 2,573,265 357,556 3,839,726 5,595,005
Total Net Assets
$ 7,156,24931,706,456$ 3,053,936$ 41,916,641$ 11,590,282$
See Notes to Financial Statements.
22
CITY OF LA PORTE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended September 30, 2012
Governmental
Business-type ActivitiesActivities
Total Enterprise Internal Service
Utility FundLPAWAAirportFundsFund
Revenues
Charges for services8,377,570$ 1,294,479$ 58,963$ 9,731,012$ 6,536,344$
Total Operating Revenues
1,294,4798,377,570 58,963 9,731,012 6,536,344
Operating Expenses
Personnel services3,226,183 - 17,102 3,243,285 853,157
Supplies and materials285,466 4,207 - 289,673 299,041
Purchased water- 1,264,050 - 1,264,050 -
Repairs and maintenance- - 13,521 13,521 -
Other services and charges3,129,833 107,012 14,966 3,251,811 5,252,259
Depreciation2,022,463 462,938 167,734 2,653,135 878,534
Total Operating Expenses
1,838,2078,663,945 213,323 10,715,475 7,282,991
Operating income(286,375) (543,728) (154,360) (984,463) (746,647)
Non-operating Revenues (Expenses)
Earnings on investments5,592 5,945 772 12,309 14,012
Gain (loss) on disposal of capital assets- - - - 116,515
Interest expense(41,833) (79,160) - (120,993) -
Total Non-operating Revenue (Expenses)
(73,215)(36,241) 772 (108,684) 130,527
Income before contributions and transfers
(616,943)(322,616) (153,588) (1,093,147) (616,120)
Capital contributions106,189 752,242 - 858,431 -
Transfers in21,000 - - 21,000 478,341
Transfers out(354,511) - (518) (355,029) (34,236)
Change in net assets(549,938) 135,299 (154,106) (568,745) (172,015)
Total net assets - beginning
32,256,3947,020,9503,208,042 42,485,386 11,762,297
Total net assets - ending
$ 7,156,24931,706,456$ 3,053,936$ 41,916,641$ 11,590,282$
See Notes to Financial Statements.
23
CITY OF LA PORTE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30, 2012
Governmental
Business-type ActivitiesActivities
Total
Enterprise Internal Service
Utility FundLPAWAAirportFundsFund
Cash Flows from Operating Activities
Receipts from customers and users8,439,215$ 1,327,476$ 56,621$ 9,823,312$ 6,536,344$
Disbursed for personnel services(3,029,325) - (17,102) (3,046,427) (861,842)
Disbursed for goods and services(3,079,417) (1,200,595) (30,415) (4,310,427) (5,653,270)
Net cash provided (used) by operating activities
126,8812,330,473 9,104 2,466,458 21,232
-
Cash Flows from Noncapital Financing Activities
-
Transfers from other funds21,000 - 777 21,777 478,341
Transfers to other funds(354,511) - (518) (355,029) (34,236)
Net cash rovided b (used b) noncaital
pyyp
financing activities
-(333,511) 259 (333,252) 444,105
Cash Flows from Capital and Related
Financing Activities
Capital grants and contributions106,189 - - 106,189 -
Principal payments on debt(262,500) (624,361) - (886,861) -
Interest paid on debt(43,660) (79,790) - (123,450) -
Acquisition and construction of capital
assets, net of dispositions
-(1,677,642) - (1,677,642) (1,231,690)
Payments received from participants for debt service- 693,142 - 693,142 -
Payments received from participants for capital recovery - 59,100- 59,100 -
Net cash used by capital and related financing activities
48,091(1,877,613) - (1,829,522) (1,068,337)
-
Cash Flows from Investing Activities
-
Sale of investments168,403 139,700 30,326 338,429 762,148
Interest received5,326 5,508 740 11,574 13,653
Net cash provided by (used by) investing activities
145,208173,729 31,066 350,003 775,801
-
Net increase in cash and equivalents293,078 320,180 40,429 653,687 172,801
Cash and equivalents, beginning of year
1,312,1101,434,071 232,042 2,978,223 4,426,983
Cash and equivalents, at end of year
$ 4,599,784$
$ 1,632,2901,727,149$ 272,471$ 3,631,910
Unrestricted cash and equivalents1,218,572$ 937,091$ 272,471$ 2,428,134$ 4,599,784$
Restricted cash and equivalents508,577 695,199 - 1,203,776 -
$ 1,632,2901,727,149$ 272,471$ 3,631,910$ 4,599,784$
Reconciliation of operating income to net cash
provided by operating activities
Operating income (loss)(286,375)$ (543,728)$ (154,360)$ (984,463)$ (746,647)$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation2,022,463 462,938 167,734 2,653,135 878,534
(Increase) decrease in accounts receivable55,460 32,997 (2,342) 86,115 (629)
(Increase) decrease in inventory- - - - 1,266
(Increase) decrease in prepaid expenses- 11,001 - 11,001 (74,448)
Increase (decrease) in accounts payable336,257 163,673 (2,117) 497,813 (28,730)
Increase (decrease) in salaries payable(7,917) - - (7,917) (3,345)
Increase (decrease) in other current liabilities(375) - 189 (186) (5,398)
Increase (decrease) in deferred revenue- - - - 629
Increase (decrease) in customer utility deposits6,185 - - 6,185 -
Increase (decrease) in compensated absences(14,711) - - (14,711) -
- 219,486 -
Increase (decrease) in net pension and OPEB obligation 219,486 -
Net cash provided by operating activities
$ 126,8812,330,473$ 9,104$ 2,466,458$ 21,232$
See Notes to Financial Statements.
24
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
Note 1 - Summary of Significant Accounting Policies
The City of La Porte, Texas (the "City"), was incorporated under the laws of the State of Texas on
August 10, 1892. The City operates under a “Council- Manager” form of government and provides the
following services as authorized by its charter: public safety, development services, public health and
welfare, culture and recreation and waterworks.
The accounting and reporting policies of the City relating to the funds included in the accompanying
basic financial statements conform to U.S Generally accepted Accounting Principles (GAAP)
applicable to state and local governments which include the principles prescribed by the Governmental
Accounting Standards Board (GASB), the American Institute of Certified Public Accountants and the
Financial Accounting Standards Board. The more significant accounting policies of the City are
prescribed below.
A.
Reporting Entity
The City’s basic financial statements include the accounts of all City operations. The City, with its elected
governing body of mayor and eight council members, is considered a primary government. As required
by GAAP, the basic financial statements include the City and its component units, entities for which the
government is considered to be financially accountable. Blended component units, although legally
separate entities, are in substance, part of the government’s operations. All component units have been
included as blended component units because of the significance of their operational and financial
relationships with the City.
The La Porte Area Water Authority (the “Authority”) is governed by a five-member board appointed by
the City Council. Although it is a legally separate entity, the Authority provides services almost
exclusively for the City’s water operations, and is in substance a part of the City’s primary operations.
The Authority was created by the City to finance the operations involved in obtaining surface water
supplies and converting these supplies to potable water. This water is sold primarily to the City of La
Porte (86%) with the remainder being sold to other neighboring political subdivisions. The operations of
the Authority are reported as a proprietary fund type.
The Tax Increment Reinvestment Zone One (the “Zone”) is governed by a nine-member board appointed
by the City Council. The Zone provides benefits exclusively for the City through reinvestment financing
of ad valorem taxes, which are utilized for capital improvements for the City of La Porte. The Zone is
presented as a governmental fund type.
The Section 4B Sales Tax Corporation provides services that exclusively benefit the City of La Porte and
is governed by a seven-member board appointed by City Council. The Section 4B Sales Tax Corporation
is presented as a governmental fund type.
Complete financial statements for each of the individual component units may be obtained through the
City of La Porte.
25
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
B.Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Assets and the Statement of
Changes in Net Assets) report information about the City as a whole. These statements include all
activities of the primary government and its component units. For the most part the effect of interfund
activity has been removed from these statements. Governmental activities, which normally are supported
by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely
to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Private-sector standards for accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Government Accounting
Standards Board. The City has elected not to follow private sector guidance issued subsequent to that
date.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services
or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
program revenues. Likewise, general revenues include all taxes.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, then unrestricted resources as they are needed.
GASB Statement No. 34 established standards for external financial reporting for all state and local
governmental entities, which includes a Statement of Net Assets and a Statement of Activities. It requires
the reclassification of net assets into three components – invested in capital assets, net of related debt;
restricted; and unrestricted. These classifications are as follows:
Invested in capital assets, net of related debt – This component of net assets consists of
capital assets, including restricted capital assets, net of accumulated depreciation and reduced
by the outstanding balances of any bonds, notes or other borrowings.
Restricted – This component of net assets consists of constraints placed on net asset use
through external constraints imposed by creditors, grantors, contributors, or laws or
regulations of other governments or constraints imposed by law through contractual
provisions or enabling legislation.
Unrestricted net assets – This component of net assets consists of net assets that do not meet
the definition of “restricted” or “invested in capital assets, net of related debt.”
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
26
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
C.Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recognized when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants
and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
General property taxes are recorded as receivables when levied and as revenue in the period for which
they were levied and become available. Property taxes receivables have been recorded as deferred
revenues at year-end. Property taxes collected within 60 days subsequent to September 30, 2012, have not
been recorded as revenue as the amount is not considered material. Franchise taxes and sales taxes
relating to underlying transactions that occurred prior to September 30, 2012, have been recorded as
receivables and revenue. Licenses and permits, and fines and forfeitures are not susceptible to accrual
since they are not measurable until received. Revenue on federal and state cost-reimbursement grants is
accrued when the related expenditures are incurred. Interest is recorded when earned.
The City reports the following major governmental funds:
TheGeneral Fund is used to account for all financial transactions that are not accounted for in another
fund. The principal sources of revenue of the General Fund are property taxes, sales and use taxes,
franchise taxes, licenses and permits, and fines and forfeitures. Expenditures are for general government,
public safety, public works and other community services.
TheDebt Service Fund is used to account for the payment of interest and principal on all general long-
term debt of the City except for capital leases which are accounted for in the General Fund. The primary
source of revenue for the Debt Service Fund is general property taxes.
TheCapital Improvements Fund is used to account for projects that are generally small in nature and
affect the general operation of the City.
27
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
The City reports the following major proprietary funds:
TheUtility Enterprise Fund is used to account for operations of the water and sewer services to
the residents of the City. All activities necessary to provide such services are accounted for in this
fund, but not limited to administration, operations and maintenance of the water and sewer system
and billing and collection activities. The fund also accounts for the accumulation of resources for,
and the payment of, long-term debt principal and interest for water and sewer debt. All costs are
financed through charges to utility customers with rates reviewed regularly and adjusted if
necessary to ensure integrity of the fund.
La Porte Area Water Authority is used to account for revenues and expenses related to obtaining
raw surface water and converting it to potable water
Airport Fund is used to account for financial activities of the airport which includes rentals,
grants and other revenues.
Additionally, the government reports the Internal Service Funds which are used to account for the Motor
Pool, Technology and Insurance services provided to other departments of the City on a cost
reimbursement basis.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with the proprietary fund’s principal ongoing operations. The principal operating revenues of
the enterprise funds are charges to customers for sales and services. Operational expenses for the
enterprise funds and internal service fund include the cost of sales and services, administrative expenses
and depreciation on capital assets. All revenues not meeting this definition are reported as non-operating
revenues and expenses.
D.Assets, Liabilities and Net Assets or Fund Balance
1.Cash and Cash Equivalents
Cash includes amounts in demand deposits, short-term investments which mature within ninety
days of the fiscal year end, and various petty cash funds. The short-term investments are stated at
cost or amortized cost, which approximate fair value. The short-term investments consist of
U.S.Treasury Bills and deposits in the Texas Local Government Pool (TexPool), the Local
Government Investment Cooperative (LOGIC) all of which have the general characteristics of a
demand deposit account. For the purpose of the statement of cash flows, Proprietary Fund types
consider temporary investments with a maturity of three months or less when purchased to be cash
equivalents.
In accordance with Statement no. 31, the City reports all investments at fair value, except for
“money market investments” and “2a7-like pools”. Money market investments, which are short-
term highly liquid debt instruments that may include U.S. Treasury and agency obligations, are
reported at amortized costs. Investments positions in external investment pools that are operated
in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940, such as
TexPool and LOGIC are reported using the pools’ share price.
28
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
2.Receivables
All receivables are reported at their gross value and, where appropriate, are reduced by the
estimated portion that is expected to be uncollectible.
3.Due to and from Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded by all funds
affected in the period in which transactions are executed. These receivables and payables are, for
the most part, eliminated from the Government-Wide Statement of Net Assets and are recorded as
“due from other funds” or “due to other funds” in the fund financial statements.
4.Inventory and Prepaid Items
Inventories are valued at costs using the first in/first out (FIFO) method. The costs of
governmental fund type inventories are recorded as expenditures when consumed rather than
when purchased. A portion of the fund balance is classified as non-spendable to reflect minimum
inventory quantities considered necessary for the District’s continuing operations. Certain
payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items.
5.Capital Assets
Capital assets are reported in the applicable governmental or business-type activities column in
the government-wide financial statements. The government defines capital assets as assets with
an initial, individual cost of $5,000 or greater and an estimated useful life in excess of one year.
All purchased Capital assets are valued at cost where historical records exist. Donated Capital
assets are valued at their estimated fair value on the date received.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend asset lives are not capitalized. Improvements, including public domain and equipment are
capitalized and Proprietary Fund Capital assets are depreciated over the remaining useful lives of
the related Capital assets using the straight line method, as applicable.
Estimated
Asset Description Useful Life
Buildings 20 years
Building improvements 20 years
Infrastructure 20-30 years
Vehicles 4-10 years
Machinery and equipment 4-10 years
Water and sewer systems 20-40 years
29
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
6.Compensated Employee Absences
The City’s employees earn vacation and sick leave, which may either be taken or accumulated, up
to a certain amount, until paid upon termination or retirement. For all funds, this liability reflects
amounts attributable to cumulative employee services already rendered, where the payment is
probable and can be reasonably estimated. The current and long-term portion of the governmental
fund type liabilities are recorded in the Government-Wide Statement of Net Assets. The
Proprietary fund type liability is recorded as a liability in the individual proprietary funds since
payment will be made from the resources of these funds. Also, for the governmental activities,
compensated absences are generally liquidated by the general fund.
Policies relating to the accrual and payment of these benefits are as follows:
Vacation – Employees earn from 10-25 days of vacation per year. Upon separation,
employees are paid for all accumulated vacation leave (up to one and one half times their
annual accrual rate).
Sick leave – Full time 8 hour employees accrue 3.70 hours per pay period. Full time 24
hour employees accrue 5.91 hours per pay period and civil service employees accrue 15
days per calendar year. The maximum sick leave time which may be accumulated by any
employee shall be 90 days for regular full time employees. For 24 hour shift personnel, the
maximum accrual is 1,152 hours. Civil service employees may accrue unlimited sick leave.
7.General Property Taxes
All taxes due the City on real or personal property are payable at the Office of the City Assessor-
Collector and may be paid at any time after the tax rolls for the year have been completed and
approved, which is October 1, or as soon thereafter as practicable. Taxes are due upon receipt and
all taxes not paid prior to February 1 are deemed delinquent and are subject to such penalty and
interest set forth by the Property Tax Code. All property located within the City limits on the first
day of January of each year are charged with a special lien in favor of the City from such date for
taxes due thereon.
8.Debt Service
The ad valorem tax rate is allocated each year between the General Fund and the Debt Service
Fund. The full amount estimated to be required for debt service on the general obligation debt is
provided by the debt service tax together with interest earned in the Debt Service Fund.
9.Restricted Assets
The City applies restricted resources when an expense is incurred for purposes for which both
restricted and unrestricted net assets are available.
30
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
10.Fund Balance
In compliance with GASB No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions, in the fund financial statements, governmental funds report the following
classifications of fund balance:
Nonspendable – includes amounts that cannot be spent because they are either not spendable
in form or are legally or contractually required to be maintained intact. All amounts reported
as nonspendable at September 30, 2012, by the City are nonspendable in form. The City has
not reported any amounts that are legally or contractually required to be maintained intact.
Restricted – includes amounts restricted by external sources (creditors, laws of other
governments, etc.) or by constitutional provision or enabling legislation.
Committed – includes amounts that can only be used for specific purposes. Fund balances
are committed by formal action of the City Council. Amendments or modifications to the
committed fund balance must be approved by formal action of the City Council. Formal
action shall be by resolution or majority vote. Committed fund balance will not lapse at year
end.
Assigned – includes amounts that the City intends to use for a specific purpose, but do not
meet the definition of restricted or committed fund balance. Under City Council’s adopted
policy, amounts may be assigned by the City Manager under the authorization of the Fiscal
Affairs Committee.
Unassigned – includes amounts that have not been assigned to other funds or restricted,
committed or assigned to a specific purpose within the General Fund. The General Fund is
the only fund that is allowed to have a positive amount reported in this category.
For the purposes of fund balance classification, expenditures incurred in the unrestricted fund
balances shall be reduced first from the committed fund balance, then from the assigned fund
balance and lastly, the unassigned fund balance. City council intends to maintain a minimum fund
balance of 25% of the City’s General Fund operating expenditures.
11.Revenues and Expenditures/Expenses
In the fund financial statements revenues for governmental funds are recorded when they are
determined to be both measurable and available. Generally, tax revenues, fees and non-tax
revenues are recognized when received. Grants from other governments are recognized when
qualifying expenditures are incurred. Expenditures for governmental funds are recorded when the
related liability is incurred.
Revenues and expenses in the Government-Wide Statement of Activities are recognized in
essentially the same manner as used in commercial accounting.
12.Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the amounts reported in the financial statements. Actual
amounts could vary from those estimates.
31
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
13.Budgetary Information
Annual budgets are adopted on a basis consistent with GAAP. Annual appropriated budgets are
adopted for the general, special revenue funds and debt service funds. All annual appropriations
lapse at fiscal year-end. Project length financial plans are adopted for all capital projects funds
and are revised annually.
Note 2 - Deposits (Cash) and Investments
Authorization for Deposits and Investments
The Texas Public Funds Investment Act (PFIA), as prescribed in Chapter 2256 of the Texas Government
Code, regulates deposits and investment transactions of the City.
In accordance with applicable statutes, the City has a depository contract with an area bank (depository)
providing for interest rates to be earned on deposited funds and for banking charges the City incurs for
banking services received. The City may place funds with the depository in interest and non-interest
bearing accounts. State law provides that collateral pledged as security for bank deposits must have a
market value of not less than the amount of the deposits and must consist of: (1) obligations of the United
States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3)
other obligations, the principal and interest on which are unconditionally guaranteed or insured by the
State of Texas; and/or (4) obligations of states, agencies, counties, cities, and other political subdivisions
of any state having been rated as investment quality by a nationally recognized investment rating firm and
having received a rating of not less than A or its equivalent. City policy requires the collateralization level
to be at least 102% of market value of principal and accrued interest.
The Council has adopted a written investment policy regarding the investment of City funds as required
by the Public Funds Investment Act (Chapter 2256, Texas Government Code). The investments of the
City are in compliance with the City’s investment policy. The City’s investment policy is more restrictive
than the PFIA requires. It is the City’s policy to restrict its direct investments to obligations of the U.S.
Government or U.S. Government Agencies, fully collateralized certificates of deposit, bankers’
acceptances, mutual funds, repurchase agreements and local government investment pools. The
maximum maturity allowed is five years from date of purchase. The City’s investment policy does not
allow investments in commercial paper, collateralized mortgage obligations, floating rate investments or
swaps.
32
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 2 - Deposits (Cash) and Investments (continued)
Deposit and Investment Amounts
The City's cash and investments are classified as: cash and cash equivalents and restricted cash and
investments. The cash and cash equivalents include cash on hand, fully collateralized deposits with
financial institutions and in a privately-managed public funds investment pool account (TexPool, TexStar
and LOGIC). The restricted cash and investments are assets restricted for specific use.
The following schedule shows the City’s recorded cash and investments at year-end:
Total Fair Value
Governmental
Internal Service Business Type
Funds
FundsActivities
Cash deposits4,981,860$ 517,628$ 420,580$
Pooled funds30,776,936 4,082,156 3,211,330
Deposit and Investments10,249,2121,464,7802,356,082
$ 6,064,56446,008,008$ 5,987,992$
Investment Risks
Interest Rate Risk
At year-end, the City had the following investments subject to interest rate risk disclosure, under U.S.
GAAP, by investment type:
Weihted
g
Average
Total Fair Maturity
Value(months)
Investment Type
Public funds investment pools38,070,422$ 1.5
Federal Home Loan Mortgage Corporation (FHLMC)1,501,032 26.6
Federal Farm Credit Bank (FFCB)7,506,624 22.3
Federal Home Loan Bank (FHLB)2,504,071 8.9
Certificates of deposit2,558,348 2.4
Total fair value52,140,497$
Portfolio weighted average maturity
4.8
The City’s investment policy specifies the maximum stated maturity from the date of purchase for any
individual investments may not exceed 5 years and the maximum dollar weighted average maturity for
the pooled fund group (investment portfolio) may not exceed 2 years.
Concentration of Credit Risk
The policy does require investments to be staggered in a way that protects interest income from the
volatility of interest rates. The policy has not established limitations on percentages of the total portfolio
that may be invested in securities other than the repurchase agreements, Treasury bills and notes or
insured and collateralized Certificates of Deposits.
Total Fair Percentae of
g
Investment TypeValueTotal Portfolio
73%
Investment Pools38,070,422$
5%
Certificates of Deposit2,558,348
22%
US Agency Securities11,511,727
100%
Total
$ 52,140,497
33
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 2 - Deposits (Cash) and Investments (continued)
Credit Risk
The primary objective of the City’s adopted Investment Policy is the safety of principal. Credit risk within
the City’s portfolio among authorized investments approved by the City’s adopted Investment Policy is
represented in U.S. Treasury Bills, Notes or Bonds, and other securities which are guaranteed as to
principal and interest by the full faith and credit of the United States of America, collateralized or fully
insured certificates of deposits, FDIC insured banks in the State of Texas, repurchase agreements if
secured by U.S. Treasury Bills, Notes or Bonds and Public Funds Investment Pools.
Note 3 - Property Tax
The appraisal of property within the City is the responsibility of the Harris County Appraisal District (the
“Appraisal District”). The Appraisal District is required under the Property Tax Code to appraise all
property within the county on the basis of 100% of its market value. The value of real property within the
Appraisal District must be reviewed every five years; however, the City may, at its own expense, require
annual reviews of appraised values. The City may challenge appraised values established by the Appraisal
District through various appeals and, if necessary, take legal action. Under this legislation, the City
continues to set tax rates on City property. However, if the effective tax rate, excluding tax rates for
repayment of general obligation bonds and other contractual obligations, adjusted for new improvements,
exceeds the effective tax rate and the rollback rate tax rate, qualified voters of the City may petition for an
election to determine whether to limit the tax rate to no more than the rollback tax rate.
The City’s property taxes are levied annually in October on the basis of the Appraisal District’s assessed
values as of January 1 of that calendar year. Appraised values are established by the Appraisal District at
market value, assessed at 100% of appraised value and certified by the Harris County Appraisal District
Board of Review. The City’s property taxes are billed and collected by the City’s Tax Assessor/Collector.
Such taxes are applicable to the fiscal year in which they are levied and become delinquent with an
enforceable lien on property on February 1 of the current calendar year.
The City is permitted, by Article XI, Section 5, of the State of Texas Constitution and the City Charter, to
levy property taxes up to $2.50 per $100 of assessed valuation for general governmental services. Within
the $2.50 maximum levy, there is no legal limit upon the amount of property taxes, which can be levied
for debt service. The property tax rates to finance general governmental services and debt service for the
2010-11 tax year were $0.605 and $0.105, respectively, per $100 of assessed valuation. The 2011
assessed value and total tax levy as adjusted through September 30, 2012 were $2,264,917,078 and
$16,080,911 respectively.
The City has enacted an ordinance providing for the exemption of twenty percent (20%) of the assessed
value of residential homesteads plus an additional $60,000 for persons 65 years of age or older for
property taxes. An exemption of $60,000 is allowed for disabled persons on homesteads and up to
$12,000 is allowed for disabled veterans on any one piece of property. Additionally, the market value of
agricultural land is reduced to agricultural value for purposes of the City’s tax levy calculation.
34
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 4 – Receivables
Amounts recorded as receivables as of for the government’s individual major and non-major funds,
including the applicable allowance for uncollectible accounts, are as follows:
Governmental Funds:
Proprietary Funds:
Airport Internal
Utility Fund LPAWAFundService FundsTotal
Receivables
Accounts
$ 184,1111,012,978$ 2,342$ 120,556$ 1,319,987$
Interest
993975 125 2,182 4,275
Other
-1,159 - - 1,159
Allowance for
Uncollectibles
-(22,836) - - (22,836)
$ 185,104992,276$ 2,467$ 122,738$ 1,302,585$
Property taxes are levied by October 1 in conformity with Subtitle E, Texas Property Tax Code. Taxes are
due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the
year in which imposed. On January 1 of each year, a tax lien attaches to property to secure the payment of
all taxes, penalties, and interest ultimately imposed. The Harris County Central Appraisal District
("HCCAD") establishes appraised values. Taxes are levied by the City Council based on the appraised
values and operating needs of the City.
35
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 4 – Receivables (continued)
Deferred Revenues
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year,
the various components of deferred revenue reported in the governmental funds were as follows:
UnavailableUnearned
$ 207,479
Delinquent property taxes receivable - general fund $ -
32,572
Delinquent property taxes receivable - debt service fund -
33,458
Other taxes - aggregate other funds -
518,272
Municipal fines and forfeitures -
966,116
EMS - general fund -
735,683
Other deferred - general fund -
981
Grants and revenues prior to meeting all eligibility requirements-
$ 2,493,580 $ 352
Total Deferred Revenue for Governmental Funds
Note 5 - Capital Assets
A summary of activity for capital assets capitalized by the City for the year ended September 30, 2012
follows:
36
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 5 - Capital Assets (continued)
Depreciation was charged to functions of the primary government as follows:
General government589,898$
Public safety1,009,308
Public works1,582,447
Parks and recreation841,228
Internal Service funds878,534
Total Governmental Activity
$ 4,901,415
Water and sewer2,485,401$
Airport167,734
Total Business-Type Activity
$ 2,653,135
37
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 5 - Capital Assets (continued)
September 30, 2012,
Construction contract commitments outstanding as of are as follows:
Governmental Activities
Remaining
Total In Progress Commitment
Fund
Hotel/Motel Fund52,315$ 7,684$
TIRZ Fund201,170 -
General CIP Fund9,917,461 14,361,914
2006 GO's97,986 62,989
Totals10,268,932$ 14,432,587$
Business-Type Activities
Remaining
Total In Progress Commitment
Fund
Utility Fund3,311,352$ 251,252$
2004 CO's 347,750 202,250
2005 CO's42,459 25,094
2006 CO's2,873 247,127
2007 CO's46,665 130,336
Totals3,751,099$ 856,059$
Note 6 - Long-Term Debt
The City issues a variety of long-term debt instruments in order to acquire and/or construct major capital
facilities and equipment for governmental and business type activities. These instruments include general
obligation bonds, certificates of obligation and revenue bonds. Future ad valorem tax revenues, water and
sewer system revenues or liens on property and equipment secure these debt obligations.
38
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 6 - Long-Term Debt (continued)
The following is a summary of the terms of obligations, general obligation bonds, certificates of
September 30, 2012
obligations and revenue bonds outstanding as of :
Governmental Business-type
2002 Limited Tax Bonds
due in annual installments of $270,000
through March 15,2025; interest at 4.25% to 5%; $5,400,000
issued for wastewater treatment plant and fire station improvements.1,620,000$ -$
2004 Certificates of Obligation
due in annual installments through March 15, 2025; interest at 3.6% to 4.45%
$7,000,000 issued for paving and drainage improvements, street extension
and land acquisition.1,625,000 -
2005 General Obligation Serial Bonds
due in annual payments through March 15, 2025; interest at 3.75% to 4.25%
$7,675,000 issued to construct a police facility.3,125,000 -
2005 Certificates of Obligation
due in annual payments through March 15, 2015; interest at 2.8% to 3.8%
$1,800,000 issued for water and sewer improvements and fire truck.725,000 -
2006 Public Property Finance contractual Obligation
due in annual payments through January 25,2016; interest at 3.74%
$2,625,000 issued for automated meter replacement program.- 1,050,000
2006 General Obligation Serial Bonds
due in annual payments through March 15, 2025; interest at 3.625% to 4.25%
$1,200,000 issued for park improvements.960,000 -
2006 Certificates of Obligation
due in annual payments through March 15, 2025; interest at 3.75% to 4.3%
$5,765,000 issued for police facility, sports and water and sewer improvements.4,605,000 -
2007 Certificates of Obligation
due in annual payments through March 15, 2029; interest at 4.00% to 4.25%
$8,075,000 issued for wastewater treatment plant improvements, sports
complex and golf cart path improvements.7,255,000 -
2010 Certificates of Obligation
due in annual payments through March 15, 2026; interest at 3.00% to 4.00%
$6,265,000 issued for street, drainage and park improvements.5,940,000 -
2010 General Obligation Refunding Bonds
due in annual payments through March 15, 2020; interest at 2.00% to 4.00%
$4,295,000 issued to refund previous debt.3,530,000 -
2010 LPAWA Contract Revenue Refunding Bonds
due in annual payments through March 15, 2017; interest at 2.50% to 4.00%
$4,085,000 issued to refund previous debt.- 2,895,000
2012 General Obligation Refunding Bonds
due in annual payments through March 15, 2025; interest at 2.00% to 3.00%
$9,435,000 issued to refund previous debt.9,435,000
Total Bonds Payable
$ 3,945,00038,820,000$
39
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 6 - Long-Term Debt (continued)
September 30, 2012
During the year ended , the following changes occurred in long-term liabilities:
Balance Balance Amounts Due
September 30, September 30, Within One
2011 Additions (Reductions) 2012Year
Governmental Activities:
Bonds and notes payable:
General obligation bonds14,720,000$ 9,435,000$ (5,485,000)$ 18,670,000$ 1,120,000$
Certificates of obligation25,605,000 - (5,455,000) 20,150,0001,245,000
Premium/Discount on bond issuance
443,032297,437 - 740,469 -
Deferred Loss on Refunding
$ (896,031)- 36,288 (859,743)-
Total bonds payable40,768,032 8,836,406 (10,903,712) 38,700,726 2,365,000
Compensated Absences3,384,117 115,820 (58,495) 3,441,442 172,072
Net pension obligation2,071,633 3,273,831 (3,032,153) 2,313,311 -
Net OPEB obligation4,655,956 2,032,052 (575,448) 6,112,560 -
Arbitrage304,474 (304,474) - -
Total Governmental Activities
$ 14,258,10951,184,212$ (14,874,282)$ 50,568,039$ 2,537,072$
Balance Balance Amounts Due
September 30, September 30, Within One
2011 Additions (Reductions) 2012Year
Business-type Activities:
Bonds payable:
Revenue bonds3,500,000$ -$ (605,000)$ 2,895,000$ 625,000$
Public property finance certificates of
obligation
-1,312,500 (262,500) 1,050,000 262,500
Premium on bond issuance94,534 - (17,312) 77,222 -
Refunding gain 11,168 - (2,049) 9,119 -
Total Bonds Payable4,918,202 - (886,861) 4,031,341 887,500
Compensated absences254,400 - (14,711) 239,689 19,175
Net pension obligation 242,813 384,709 (356,062) 271,460 -
OPEB obligation 608,949 266,132 (75,293) 799,788 -
Total Business-type Activities
$ 650,8416,024,364$ (1,332,927)$ 5,342,278$ 906,675$
Long-term liabilities applicable to the City's governmental activities are not due and payable in the
current period and, accordingly, are not reported as fund liabilities in the governmental funds.
Compensated absences generally are paid by the General Fund for the governmental activities. Net
pension obligation is liquidated by the general fund. Interest on long-term debt is not accrued in
governmental funds, but rather is recognized as an expenditure when due.
General Obligation Bonds and Certificates of Obligations
General Obligation Bonds are direct obligations issued on a pledge of the general taxing power for the
payment of the debt obligations of the City. General Obligations Bonds and Certificates of Obligation
require the City to compute, at the time other taxes are levied, the rate of tax required to provide (in each
years bonds are outstanding) a fund to pay interest and principal at maturity. The City is in compliance
with this requirement.
40
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 6 - Long-Term Debt (continued)
In April 2012, the City issued General Obligation Refunding Bonds, Series 2012 in the amount of
$9,435,000. The interest rate ranges from 2.0%-3.0%. The bonds were issued at a premium totaling
$364,013. The proceeds of the bonds were used to refund a portion of the City’s outstanding bonds and
pay costs of issuance related to the bonds. A portion of the proceeds were deposited into an irrevocable
trust with an escrow agent to provide future debt service payments on the outstanding bonds. As a result
$8,770,000 of the 2002 Limited Tax Bonds, 2004 and 2005 Certificates of Obligation and 2005 General
Obligation Bonds are considered to be defeased and the liability has been removed from the books. The
purpose of the bonds was to lower the City’s debt service payments. Sale of the bonds resulted in an
economic gain of $629,705 and a deferred loss on refunding of $896,031.
Revenue Bonds
Water and Sewer Revenue Bonds constitute special obligations of the City solely secured by a lien on and
pledge of the net revenues of the water and sewer system. The Revenue Bonds are collateralized by the
revenue of the water and sewer system and the various special funds established by the bond ordinances.
The ordinances provide that the revenue of the system is to be used first to pay operating and maintenance
expenses of the system and second to establish and maintain the Revenue Bond funds. Remaining
revenues may then be used for any lawful purpose. The ordinances also contain provisions, which, among
other items, restrict the issuance of additional Revenue Bonds unless the special funds noted above
contain the required amounts and certain financial ratios are met. The City is in compliance with all
significant financial requirements as of September 30, 2012.
The annual aggregate maturities for each bond type for the years subsequent to September 30, 2012 are as
follows:
General Obligation BondsCertificates of Obligation
Governmental Activities Governmental Activities
Fiscal YearPrincipalInterestPrincipalInterest
20131,120,000$ 803,279$ 1,245,000$ 1,043,029$
20141,240,000 767,753 1,320,000 1,017,699
20151,255,000 733,392 1,385,000 995,164
20161,265,000 697,021 1,445,000 965,646
20171,285,000 658,924 1,500,000 939,113
20181,675,000 609,674 1,195,000 767,119
20191,705,000 471,145 1,245,000 749,398
20201,605,000 419,189 1,300,000 732,869
20211,430,000 272,300 1,250,000 686,551
20221,465,000 236,350 1,305,000 670,876
20231,505,000 194,350 1,350,000 649,620
20241,540,000 156,300 1,410,000 632,614
20251,580,000 117,275 1,465,000 163,596
2026- - 1,050,000 113,092
2027- - 540,000 70,130
2028- - 560,000 36,330
2029- - 585,000 12,285
$ 6,136,95218,670,000$ 20,150,000$ 10,245,131$
41
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 6 - Long-Term Debt (continued)
Contract Revenue Bonds Public Property Finance CO
Business-Type Activities Business-Type Activities
Fiscal YearPrincipalInterestPrincipalInterest
2013625,000$ 73,556$ 262,500$ 34,361$
2014630,000 58,650 262,500 24,544
2015650,000 41,838 262,500 14,726
2016670,000 22,850 262,500 4,909
2017320,000 6,400 - -
$ 203,2942,895,000$ 1,050,000$ 78,540$
Prior Year Refunding of Debt
Revenue Bonds
The City defeased certain outstanding revenue bonds by placing proceeds of new bonds in irrevocable
trust to provide for all future debt service payments. Accordingly, the respective trust accounts and
liability for the defeased bond are not included in the City’s financial statements. As of September 30,
2012 approximately $8,770,000 and $2,950,000 of previously refunded bonds outstanding are
considered defeased in association with the governmental activities and the business-type activities
respectively.
Note 7 - Interfund Activities
Transfers between the primary government funds during the year were as follows:
Transfers fromTransfers to AmountPurpose
Transfer for liability insurance and
worker's compensation.
General FundInsurance Fund
$ 416,876
General FundGeneral CIP Fund 276,547
Annual transfer to fund capital projects.
Utility FundDebt Service Fund 306,800
Annual transfer for debt service.
Transfer for liability insurance and
worker's compensation.
Utility FundInsurance Fund 47,711
Transfer for liability insurance and
worker's compensation.
Vehicle Maintenance FundInsurance Fund 13,236
Transfer for liability insurance and
worker's compensation.
Airport FundInsurance Fund 518
Transfer for golf course advertising
Hotel/Motel FundGeneral Fund 39,000
expenditures and city
Return unused funds on Gateway
La Porte Development
General CIP Corporation (4B) 154,914 project to LPDC
Corporation (4B)Debt Service Fund 660,338
Annual transfer for debt service.
Corporation (4B)General CIP Fund 970,000
Annual transfer to fund capital projects.
General CIPGeneral Fund 21,945
Purchase of equipment
2007 Certificates of ObligationDebt Service Fund 281,133
Transfer for debt service repayment.
Technology FundUtility Fund 21,000
Purchase of equipment
$ 3,210,018
42
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 7 - Interfund Activities (continued)
Interfund receivables at year end were as follows:
Receivable FundPayable FundAmounts Purpose
2006 Certificates of
General Fund Obligation Fund Bond interest due to debt service fund
$ 51,837
2006 Certificates of
Obligation FundTIRZ One Sewer improvements paid by the City
662,000
$ 713,837
Note 8 - Employee Retirement System
Plan Description
The City provides pension benefits for all of its eligible employees, except firefighters, through a non-
traditional, joint contributory, hybrid defined benefit plan (the “Plan”) in the statewide Texas
Municipal Retirement System (TMRS), an agent multi-employer public employee retirement system.
The plan provisions that have been adopted by the City are within the options available in the
governing statutes of TMRS.
TMRS issues a publicly available comprehensive annual financial report that includes financial
statements and required supplementary information (RSI) for TMRS. The report provides detailed
explanation of the contributions, benefits and actuarial methods and assumptions used by the system.
This report may be obtained by writing TMRS, P.O. Box 149153, Austin, TX 78714-9153 or by
calling 800-924-8677. The report is also available on the TMRS website at www.TMRS.com.
The City provides pension benefits to its volunteer firemen through the Texas Statewide Emergency
Services Personnel Retirement Fund, one of 150 administered by the Fire Fighters’ Pension
Commissioner, a cost sharing multiple employer pension system. That report may be obtained by
writing to the Firefighters Pension Commission, P.O. Box 12577, Austin, TX 78711. Both plans are
more fully described below.
Texas Municipal Retirement System
Contributions and Annual Pension Cost
Under the state law governing TMRS, the contribution rate for each City is determined annually by the
actuary, using Projected Unit Credit actuarial cost method. This rate consist of the normal cost
contribution rate and the prior service cost contribution rate, which is calculated to be a level percent of
payroll from year to year. The normal cost contribution rate finances the portion of an active member’s
projected benefit allocated annually; the prior service contribution rate amortizes the unfunded
(overfunded) actuarial liability (asset) over the applicable period for the city. Both the normal cost and
prior service contribution rates include recognition of the projected impact of annually repeating benefits,
such as Updated Service Credits and Annuity Increases.
43
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 8 - Employee Retirement System (continued)
Texas Municipal Retirement System (continued)
Contributions and Annual Pension Cost (continued)
The City contributes to the TMRS plan at an actuarially determined rate. Both the employees and the City
make contributions monthly. Since the City needs to know its contribution rate in advance for budgetary
purposes, there is a one-year delay between the actuarial valuation that serves as the basis for the rate and
the calendar year when the rate goes into effect. The annual pension cost and net pension obligation
(asset) for the current year is calculated as follows:
2012
Annual Required Contribution (ARC)
$3,624,410
Interest on net pension obligation (NPO)
173,583
Adjustment to ARC
(139,265)
Annual Pension Cost (APC)
3,658,728
Contributions
(3,388,213)
Change in NPO
270,515
NPO, beginning of the year
2,314,444
NPO, ending of the year
$2,584,959
Percentage of APC contributed
92.6%
Actuarial Cost MethodProjected Unit Credit
Amortization MethodLevel Percent of Payroll
Remaining Amortization Period27.1 Years - Closed Period
Asset Valuation Method10-year Smoothed Market
Actuarial Assumptions:
Investment Rate of Return7.0%
Projected Salary IncreasesVaries by age and service
Includes Inflation At3.0%
Cost-of-Living Adjustments2.1%
Funded Status
The funded status of the Plan as of December 31, 2011
The schedule of funding progress, presented as required supplementary information following the
notes to the financial statements, presents multi-year trend information about whether the actuarial
value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liability.
44
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 8 - Employee Retirement System (continued)
Three-year Trend Information
201220112010
Annual Required Contribution (ARC)
$ 3,933,8223,624,410$ 3,712,311$
Interest on net pension obligation (NPO)
113,334173,583 48,178
Adjustment to ARC
(93,771)(139,265) (39,226)
Annual Pension Cost (APC)
3,953,3853,658,728 3,721,263
Contributions
(3,150,061)(3,388,213) (2,852,535)
Change in NPO
803,324270,515 868,728
NPO, beginning of the year
1,511,1202,314,444 642,392
NPO, ending of the yea
r
$ 2,314,4442,584,959$ 1,511,120$
Percentage of APC contributed
92.6%79.7%76.7%
Texas Statewide Emergency Services Personnel Retirement Fund
Summary of Significant Accounting Policies and Plan Asset Matters
The Texas Statewide Emergency Services Personnel Retirement Fund financial statements are prepared
using the accrual basis of accounting. The Fund’s fiscal year is from September 1 through the following
August 31. Contributions are recognized as revenues in the period in which they are due to the Fund. No
contributions applicable to the H.B. 258 Texas Local Fire Fighters Retirement Act (TLFFRA) are
included herein.
The Texas Statewide Emergency Services Personnel Retirement Fund investments are reported at a
smoothed market-related value.
The Fire Fighters’ Pension Commission is the administrator of the Texas Statewide Emergency Services
Personnel Retirement Fund, a cost sharing multiple employer pension system established and
administered by the State of Texas to provide pension benefits for emergency services personnel who
serve without monetary remuneration. The Texas Statewide Emergency Services Personnel Retirement
Fund is considered a component unit of the State of Texas financial reporting entity and is included in the
State’s financial reports as a pension trust fund. At August 31, 2010 there were 186 member departments
participating in the pension system. The following table summarizes the pension system membership as
of August 31, 2010:
Retirees and beneficiaries currently receiving benefits2,167
Terminated members entitled to benefits but not yet receiving those2,106
Current active members (vested and non-vested)4,371
th
The pension system was created by Senate Bill 411, 65th Legislature, Regular Session (1977). The 79
Legislature, Regular Session (2005), recodified the provisions and gave the TESRS Board of Trustees
authority to establish vesting requirements, contributions levels, benefit formulas and eligibility
requirements by board rule. The benefit provisions include retirement benefits as well as death and
disability benefits. Member are 50% vested after the tenth year of service, with the vesting percent
increasing 10% for each of the next five years of service so that a member becomes 100% vested with 15
years of service.
45
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 8 - Employee Retirement System (continued)
Texas Statewide Emergency Services Personnel Retirement Fund (continued)
Summary of Significant Accounting Policies and Plan Asset Matters (continued)
Upon reaching age 55, each vested member may retire and receive a monthly pension equal to his vested
percentage multiplied by six times the governing body’s average monthly contribution over the member’s
years of qualified service. For years of service in excess of 15 years, this monthly benefit is increased at
the rate of 6.2 % compounded annually.
On and off-duty death benefits and on-duty disability benefits are dependent on whether or not the
member was engaged in the performance of duties at the time of death or disability. Death benefits
include a lump sum amount and continuing monthly payments to a member’s surviving spouse and
dependent children.
Funding Policy
Contribution provisions were established by S.B. 411, 65th Legislative, Regular Session (1977) and were
amended by board rule in 2006. No contributions are required by individual members of participating
departments. The governing bodies of participating department members are required to contribute at
least the minimum prescribed amount per month for each active member. Additional contributions may
be made by a governing body to pay for granting credit for service before the department began
participating in TESRS (prior service). The State may also be required to make annual contributions up to
a limited amount to make TESRS actuarially sound.
Annual Required Contribution
The contribution requirement per active emergency services personnel member per month is not actually
determined. Rather, the minimum contribution provisions were set by board rule. For the fiscal year
ending August 31, 2010, total contributions (dues and prior service) of $2,875,103 were paid into TESRS
by the political subdivision and served by the member volunteer emergency services personnel. The state
did not appropriate any maximum state contribution for fiscal years ending August 31, 2010 and 2011.
Total contributions made were equal to the contribution required by the state statute and equal to the
contributions required based on the August 31, 2008 actuarial valuation.
The purpose of the biennial actuarial valuations is to test the adequacy of the contribution arrangement
and determine if they are adequate to fund the benefits that are promised. The actuarial valuation as of
August 31, 2010 revealed the adequacy of the expected contributions (dues and prior service
contributions) together with the actual state appropriations for the fiscal year ending August 31, 2010
($502,941 to help pay for the Systems administrative expense) and with the assumed continuation of
legislative appropriations of (1) the maximum state contribution amount in future years for the System to
have a 30 year amortization period, and (2) approximately $500,000 each year to help pay for part of the
System’s administrative expenses. Expected contributions for the fiscal year ending August 31, 2011 are
less than the contributions required because of the lag time between an actuarial valuation that shows the
need for maximum state contribution amounts and the appropriations process. The City’s annual
contributions for fiscal year ending September 30, 2012, 2011 and 2010 were $27,216, $27,264, and
$24,528 respectively.
46
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 9 - Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City’s risk management program encompasses various
means of protecting the City against loss by obtaining property, casualty and liability coverage from
participation in a risk pool. The participation of the City in the risk pool is limited to the payment of
premiums. Further information regarding the pool is provided below. Settled claims have not exceeded
insurance coverage in any of the three previous fiscal years. There has not been any significant reduction in
insurance coverage from that of the previous year.
Health Insurance Benefits
The City self-insures a portion of health insurance benefits provided to employees. The City uses an
internal service fund to account for the revenues and expenses for providing health care coverage. Charges
are assessed to various City divisions based on their full-time employee count.
Activity during the year included:
Revenues
Charges to divisions3,624,653$
Interfund transfers478,341
Charges to employees446,174
Charges to retirees102,902
Cobra charges26,727
Insurance proceeds44,197
Interest revenue3,694
Total revenues4,726,688$
Expenses
Personnel expenses153,352$
Other expenses364,992
Claims administration232,876
Claims incurred4,365,339
Re-insurance premiums289,052
Total health services expenses5,405,611$
Included in the claims paid amount is $499,446 for incurred but not reported claims.
Settled claims have not exceeded insurance coverage in any of the previous four fiscal years. Estimates of
claims payable and of claims incurred but not reported at September 30, 2012, are reflected as liabilities
of the Internal Service Fund. Because actual claims liabilities depend on such complex factors as
inflation, changes in legal requirements and damage awards, the process used in computing claims
liability is an estimate based on historical claims. Analysis of claims liability for the fiscal years 2010,
,
2011 and 2012 are as follows:
Beginning of Current year Payments for End of year
year accrualestimatesclaimsaccrual
09/30/10448,000$ 3,703,943$ 3,652,943$ 499,000$
09/30/11499,000 4,286,990 4,212,096 573,894
09/30/12573,894 4,290,891 4,365,339 499,446
47
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 9 - Risk Management (continued)
Risk Pool
The City is a member of the Texas Municipal League Intergovernmental Risk Pool, an unincorporated
association of 1,860 political subdivisions of the State of Texas. The Pool contracts with a third party
administrator for administration, investigation and adjustment services in the handling of claims. All loss
contingencies, including claims incurred but not reported, if any, are recorded and accounted for by the
Pool.
Note 10 - Commitments and Contingencies
The City is a defendant in lawsuits. Although the outcome of the lawsuits is not presently determinable, it
is the opinion of the City's management that resolution of these matters will not have a materially adverse
effect on the financial condition of the City.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported.
Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends,
including frequency and amount of payouts, and other economic and social factors. No claim liabilities
are reported at year end.
The City participates in certain federal and state assisted grant programs. These programs are subject to
program compliance audits by the grantors or their representatives. Any liability for reimbursement which
may arise as the result of these audits is not believed to be material.
Note 11 - Post-employment Benefits
Plan Description. In addition to pension benefits described in Note 6, employees who retire from the City
and are eligible for pension benefits shall be provided medical coverage by the City to the extent and
subject to the conditions of such coverage that is provided to current employees of the City. The City
administers this single-employer defined benefit medical plan (“the Retiree Medical Plan”). The plan
provides medical coverage for eligible retirees and their dependents through the City’s self-health
insurance plan, which covers both active and retired members. Benefit provisions are established and
amended by City Council. The Retiree Medical Plan does not issue a publicly available financial report.
Funding Policy. This coverage for retired employees is provided at the option of City council through
adoption of the annual budget. The City funds these premiums in the same manner as it funds similar
premiums for current employees. Employees, who retired from the City before October 1, 1992, have
100% of their coverage paid for by the City. Employees who retired from the City in 1993 and up to
December 31, 1999, with 20 or more years of service have 100% of their coverage paid for by the City.
Prior to January 1, 2000, employees who have 15 years but less than 20 years of service are required to
pay for 10% of the cost and employees who have 10 years but less than 15 years of service are required to
pay for 20% of their costs. For employees who retire after January 1, 2000, the following applies:
Retiree cost
Retiree CostCity Costper year
Years of service with the City
At least 10 but less than 1555%45%3,300$
At least 15 but less than 20 25%75%1,500
At least 200%100%-
48
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 11 - Post-employment Benefits (continued)
Employees who are eligible for the post employment benefits are employees who retire after January 1,
2006 and who have a combination of years of service with the City of La Porte plus age totaling 80 and
who retire as a qualified annuitant under the Texas Municipal Retirement System; who retire in
accordance with the City of La Porte Employee Policies Handbook; who complete at least 20 years of
service with the City of La Porte are currently employed by the City of La Porte at the time of their
retirement. The total premium cost is the total annual dollar allocated by budget as approved by City
Council for the City of La Porte for health insurance for each employee, including employee and
employer contributions. The cost allocation shall be as follows:
Years of service with
the CityRetiree CostCity Cost
at least 20 years60%+dependent premiums40%
21 years55%+dependent premiums45%
22 years50%+dependent premiums50%
23 years45%+dependent premiums55%
24 years40%+dependent premiums60%
25 years35%+dependent premiums65%
26 years30%+dependent premiums70%
27 years25%+dependent premiums75%
28 years20%+dependent premiums80%
29 years15%+dependent premiums85%
30 yearsActive employee/dependent rate
Retirees who are entitled to receive retirement benefits under the City’s retirement plan may purchase
continued health benefits for the retiree and the retiree’s dependents. The person must inform the City no
later than the day on which the person retires that the person elects to continue coverage. If the retiree
elects to continue coverage for himself and/or his dependents, once he decides to drop either type of
coverage, the person and/or his dependents become eligible for coverage at the next open enrollment
period. The level of coverage provided is the same level of coverage provided to current employees. The
City’s coverage is secondary to Medicare when the person becomes eligible for those benefits. Payment
for dependent coverage will be at the same rate as payments for current employees.
Annual OPEB Cost and Net OPEB Obligation. The City’s annual other postemployment benefit (OPEB)
cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially
determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of
funding that if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following
table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed
to the plan, and changes in the City’s OPEB obligation to the postemployment medical plan shows the
components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and
changes in the City’s OPEB obligation to the postemployment medical plan.
49
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 11 - Post-employment Benefits (continued)
Fiscal Year
201220112010
Annual Required Contribution (ARC)2,280,768$ 2,214,338$ 2,472,961$
Interest on net pension obligation (NPO) 236,921 169,198 81,894
Adjustment to ARC(219,505) (156,760) (75,874)
Annual Pension Cost (APC)2,298,184 2,226,776 2,478,981
Contributions(650,741) (721,830) (538,884)
Change in NPO1,647,443 1,504,946 1,940,097
NPO, beginning of the year5,264,905 3,759,959 1,819,862
NPO, ending of the year6,912,348$ 5,264,905$ 3,759,959$
Percentage of ARC contribution28.3%32.4%21.7%
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for fiscal year 2012, 2011 and 2010 are as follows.
Percentage of
Annual OPEB
Annual OPEB
Cost Net OPEB
Fiscal Year Ended Cost
Contributed Obligation
9/30/20102,478,981$ 21.74%3,759,959$
9/30/20112,226,776 32.42%5,264,905
9/30/20122,298,184 28.32%6,912,348
Funded Status and Funding Progress. The funding status of the post employment medical plan as of
the most recent actuarial valuation date is as follows:
Unfunded (UAAL) as
Actuarial a
Accrued Percentage
Actuarial
Actuarial Valuation Date Actuarial Accrued Percentage Liability Annual Covered of Covered
December 31, Value of Assets Liabilities Funded(UAAL) Payroll Payroll
2010-$ 29,639,065 0%29,639,065$ 19,816,947$ 66.86%
Actuarial valuations of an ongoing plan involve estimates of the value reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about
future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded
status of the plan and the annual required contributions of the employer are subject to continual revision
as actual results are compared with past expectations and new estimates are made about the future. A
schedule of funding progress presents multi-trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The
2010 actuarial valuation is the most recent actuarial valuation available.
50
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 11 - Post-employment Benefits (continued)
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between
the employer and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities
and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the
December 31, 2010, actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 4.5 percent investment rate of return compounded annually (net of
administrative expenses), which is a blended rate of the expected long-term investment returns on plan
assets and on the employer’s own investments calculated based on the funded level of the plan at the
valuation date, an annual healthcare cost trend rate of 10 percent initially, reduced by decrements to an
ultimate rate of 4.5 percent after 10 years, and a payroll growth rate for projecting normal cost of 3
percent. These rates include a 3 percent inflation assumption. The actuarial value of assets was
determined using techniques that spread the effects of short-term volatility in the market value of
investments over a five-year period. The UAAL is being amortized as a level percentage of payroll
contributions over a 30 year open amortization period assuming payroll growth of 3 percent. The
remaining amortization period at September 30, 2012, was 28 years.
Supplemental Death Benefits Fund
The City also participates in the cost sharing multiple-employer defined benefit group term life insurance
plan operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death
Benefits Fund (SDBF). The City elected, by ordinance to provide group term life insurance coverage to
both current and retired employees. The city may terminate coverage under and discontinue participation
in the SDBF by adopting an ordinance before November 1 of any year to be effective the following
January 1. The death benefit for active employees provides a lump sum payment approximately equal to
the employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month
period preceding the month of death); retired employees are insured for $7,500; this coverage is an “other
postemployment benefit, “ or OPEB. The city contributes to SDBF at a contractually required rate as
determined by an annual actuarial valuation. The rate is equal to the cost of providing one-year term life
insurance. The funding policy for the SDBF program is to assure that adequate resources are available to
meet all death benefit payments for the upcoming year; the intent is not to pre-fund retiree term life
insurance during employee’s entire careers
The City’s contributions to the TMRS SDBF for the fiscal year ended 2012, 2011, and 2010 were
$30,365, $36,232 and $34,554 respectively, which equaled to the required contributions.
Schedule of Contribution Rates
Annual
Required Actual Percentage of
Plan/CaleContribution Contribution ARC
ndar Year(Rate)Made (Rate)Contributed
20100.03%0.03%100%
20110.03%0.03%100%
20120.03%0.03%100%
.
51
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52
REQUIRED SUPPLEMENTARY INFORMATION
53
CITY OF LA PORTE, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
For the year ended September 30, 2012
2012
Variance with
Final Budget -
Positive
Budgeted Amounts
Actual(Negative)
OriginalFinal
Revenues
Property taxes12,530,934$ 12,530,934$ 13,286,450$ 755,516$
Franchise fees2,145,000 2,145,000 2,311,944 166,944
Sales and use taxes3,256,758 3,256,758 3,896,974 640,216
Industrial payments9,900,000 9,900,000 10,471,444 571,444
Miscellaneous taxes80,000 80,000 60,182 (19,818)
Licenses and permits336,931336,931465,052 128,121
Intergovernmental1,000 1,000 14,585 13,585
Fines and forfeitures1,601,6641,601,664 1,513,786 (87,878)
Interest earnings65,000 65,000 66,078 1,078
Charges for services5,416,3855,416,3855,498,848 82,463
Miscellaneous 50,00050,00030,384 (19,616)
Total Revenues 35,383,67235,383,672 37,615,727 2,232,055
Expenditures
General government
Administration4,426,4794,839,6594,515,514324,145
Finance3,381,4673,090,2802,971,379118,901
Planning and engineering2,033,9032,094,8761,918,772176,104
Public safety
Fire4,656,9544,681,8244,471,984209,840
Police10,510,03410,600,44910,383,634216,815
Public works
Public works administration356,528358,828356,0132,815
Streets2,385,1742,410,4432,319,37891,065
Health and sanitation
Solidwaste2,293,6492,293,6492,225,76867,881
Culture and recreation5,252,6615,326,9105,150,750176,160
Total Expenditures
35,696,91835,296,849 34,313,192 1,383,726
Excess (deficiency) of revenues
over expenditures86,823 (313,246) 3,302,535 3,615,781
Other Financing Sources (Uses)
Transfers in170,797 148,852 60,945 (87,907)
Transfers out(693,423) (693,423) (693,423) -
Total other financing sources
and uses
(544,571)(522,626) (632,478) (87,907)
Special Item
Proceeds from sale of land- - 1,941,346 1,941,346
Net change in fund balances(435,803) (857,817) 4,611,403 5,469,220
Fund balances, beginning of year
19,353,15419,353,154 19,353,154 -
Fund balances at year end
$ 18,495,33718,917,351$ 23,964,557$ 5,469,220$
54
CITY OF LA PORTE, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY BUDGET INFORMATION
Budgetary Controls and Procedures
The objective of the City’s budgetary controls is to ensure compliance with legal provisions embodied in
the annual appropriated budget approved by City Council. The City Manager is required by charter to
submit a proposed budget and accompanying message to City Council by August 1. The Council shall
review and revise the proposed budget as they deem appropriate prior to circulation for the public
hearing. A summary of the proposed budget and notice of the public hearing must be posted in City Hall
and be published in the official newspaper at least 2 weeks prior to the hearing. Annual budgets for
General, Debt Service, Special Revenue and Enterprise Funds are legally adopted by ordinance and must
be done so no later than September 27th. Budgetary control for capital projects funds is achieved through
legally binding construction contracts and project length budgets.
The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated
amount) is the total approved budget for each department. The City manager is authorized to transfer part
or all of any unencumbered appropriation balance among programs within a department. All other
amendments and/or transfers must be approved by Council.
Annual appropriated budgets are adopted for the general, special revenue, and debt service funds, using
the same basis of accounting as for financial reporting. Annual budgets are adopted on a basis consistent
with generally accepted accounting principles (GAAP) except the capital projects funds, which adopt
project length budgets. The City adopts separate budgets for each of the special revenue funds rather than
as a whole. The original budget is adopted by the City Council prior to the beginning of the year. The
legal level of control as defined by the charter is the total approved budget for each department. The City
Manager may transfer appropriations within a department without seeking the approval of City Council;
however, any revisions that alter total expenditures for any department must be approved by City Council.
Appropriations lapse at the end of the year, excluding capital project budgets.
For the year ended September 30, 2012, expenditures exceeded the appropriations in the debt service fund
by $94 thousand and $160 thousand in other financing sources and uses. This was due to the issuance of
debt. The over expenditures were funded by the issuance of the debt itself; a portion of the proceeds is
used to cover the cost of issuance.
55
CITY OF LA PORTE, TEXAS
REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION
September 30, 2012
TEXAS MUNICIPAL RETIREMENT SYSTEM (UNAUDITED)
Schedule of Funding Progress
Unfunded
Actuarial (UAAL) as a
Actuarial Accrued Annual Percentage of
Actuarial Valuation Actuarial Value Accrued Percentage Liability CoveredCovered
Date December 31, of Assets Liabilities Funded (UAAL) Payroll Payroll
201194,972,036$ 112,727,995$ 84%17,755,959$ 19,680,971$ 90%
201088,730,728 106,875,060 83%18,144,332 18,811,924 96%
200952,637,477 78,345,079 67%25,707,602 18,770,507 137%
56
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
57
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure
for particular purposes.
Hotel / Motel Occupancy Tax Fund – This fund is used to account for the accumulation of resources from
the Hotel/Motel Tax assessment levied by the City. These monies are to be spent to promote the
development or progress of the City within the guidelines set forth on disposition of revenues collected
under the authority of the Texas Hotel Occupancy Act (Article 1269; Vernon’s Texas Civil Statutes).
Section 4B Sales Tax Fund – This fund is used to account for funds received from the ½ cent sales tax
dedicated to certain economic and infrastructure projects.
Tax Increment Reinvestment Zone One Fund (TIRZ) – This fund is used to account for the disposition of
property taxes collected on specific parcels within the boundaries of the TIRZ for the exclusive benefit of
the City’s capital improvement programs.
Grant Fund – This fund is used to account for funds received from another government or organization to
be used for a specific purpose activity or facility.
Street Maintenance Sales Tax Fund – This fund is used to account for the additional sales tax collected
for street maintenance.
Emergency Services Sales Tax Fund – This fund is used to account for the additional sales tax collected
for emergency services.
Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major capital facilities
other than those financed by proprietary funds.
Transportation and Other Infrastructure Fund – This fund is used to account for the construction and
expansion of roads, bridges, sidewalks and other major infrastructure capital improvements.
1998 General Obligation Bonds Fund – This fund is used to account for the proceeds and expenditures
related to drainage and street improvements throughout the City.
2000 Certificate of Obligation Bonds Fund – This fund is used to account for the proceeds and
expenditures for construction of the community library.
2004 Certificate of Obligation Bonds Fund – This fund is used to account for the proceeds and
expenditures related to the Bay Area Boulevard, Canada Road Paving and Drainage Improvements and
the land acquisition of the Police Headquarters.
2005 Certificate of Obligation Bonds Fund – This fund is used to account for the proceeds and
expenditures related to the purchase of an aerial fire truck, Bayshore Water/Sewer Replacement and
various other Water/Sewer Capital Improvements.
58
Nonmajor Governmental Funds
Capital Projects Funds (continued)
2005 General Obligation Bond Fund – This fund is used to fund projects that benefit the City in general.
A specific project from this issue is the construction of the police facility.
2006 Certificate of Obligation Bonds Fund – This fund is used to account for the proceeds and
expenditures related to the Police Facility, a Sports Complex (Joint Venture), South La Porte Trunk
Sewer and various other Water/Sewer projects.
2006 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures
related to the Westside Park Improvements.
2007 Certificate of Obligation Bonds Fund – This fund is used to account for the proceeds and
expenditures related to wastewater treatment plant improvements, sports complex and golf cart path
improvements.
2010 Certificates of Obligation Bond Fund – This fund is used to account for the proceeds and
expenditures related to street, drainage and park improvements.
Drainage Improvements – This fund is used to account for the proceeds and expenditures related to the
drainage fees collected.
59
CITY OF LA PORTE, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
eptember 30, 2012
S
Special Revenue Funds
Tax Increment
Hotel Motel Section 4b Reinvestment
TaxSales TaxZoneGrant Fund
Assets
Cash and cash equivalents718,868$ 1,582,058$ 1,177,061$ 818,301$
Investments227,951 501,667 - 296,825
Receivables, net of allowance88,305 385,136 - 412
Due from other governments- - 1,920 82,733
Due from other funds- - - -
Total Assets
$ 2,468,8611,035,124$ 1,178,981$ 1,198,271$
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ 2,7451,253$ $ 28,287$
Accrued salaries payable2,152 2,152 - 1,051
Other payables- - - -
Due to other funds- - 662,000 -
Deferred revenue1,200 32,258 - 352
Total Liabilities
37,1554,605 662,000 29,690
Fund balances:
Restricted
Debt service- 410,061 - -
Grants- - - 441,232
Economic development1,030,519 2,021,645 - -
Public safety- 727,349
Capital projects- 516,981 -
Public works- - - -
Unassigned
-- - -
Total Fund balances
2,431,7061,030,519 516,981 1,168,581
Total Liabilities and Fund Balances
$ 2,468,8611,035,124$ 1,178,981$ 1,198,271$
60
Page 1 of 2
Capital Projects Funds
2000
StreetEmergency Transportation & 1998 General Certificate of
Maintenance Services Sales Total Special Other Obligation Obligation
Sales Tax FundTax FundRevenue FundsInfrastructureBondsBonds
$ 71,126760,060$ 5,127,474$ 2,088$ 24,358$ 22,526$
22,557241,013 1,290,013 662 7,724 7,143
166,277176,425 816,555 - 11 10
-- 84,653 - - -
-- - - - -
$ 259,9601,177,498$ 7,318,695$ 2,750$ 32,093$ 29,679$
$ 9,640348,446$ 390,371$ $ $ $
-- 5,355 - - -
3,14642,016 45,162 2,683 - -
-- 662,000 - - -
-- 33,810 - - -
12,786390,462 1,136,698 2,683 - -
-- 410,061 - - -
-- 441,232 - - -
-- 3,052,164 - - -
247,174- 974,523 - - -
-- 516,981 67 32,093 29,679
-787,036 787,036 - - -
-- - - -
247,174787,036 6,181,997 67 32,093 29,679
$ 259,9601,177,498$ 7,318,695$ 2,750$ 32,093$ 29,679$
61
CITY OF LA PORTE, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
etember 30, 2012
Sp
2004
Certificate of 2005 Certificate 2005 General 2006 Certificate
Obligation of Obligation Obligation of Obligation
BondsBondsBondsBonds
Assets
Cash and cash equivalents256,208$ 15,640$ 677$ -$
Investments1,062 4,959 215 -
Receivables, net of allowance2 7 - -
Due from other governments- - - -
Due from other funds- - - 662,000
Total Assets$ 20,606257,272$ 892$ 662,000$
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ 48,940$ $ $
Accrued salaries payable- - - -
Other payables- 2,498 - -
Due to other funds- - - 51,837
Deferred revenue- - - -
Total Liabilities
51,438- - 51,837
Fund balances:
Restricted
Debt service- - - -
Grants- - - -
Economic development- - - -
Public safety- - - -
Capital projects257,272 - 892 610,163
Public works- - - -
Unassigned
(30,832)-- -
Total Fund balances
(30,832)257,272 892 610,163
Total Liabilities and Fund Balances
$ 20,606257,272$ 892$ 662,000$
62
Page 2 of 2
Capital Funds Project (continued)
2006 General 2007 Certificate 2010 Certificate Total Nonmajor
Obligation
of Obligation of Obligation Drainage Total Capital Governmental
BondsBondsBondsImprovementsProjects FundsFunds
$ 29,52368,478$ 1,928,335$ 240,688$ 2,588,521$ 7,715,995$
9,36281 11,335 76,322 118,865 1,408,878
14- 16 16,677 16,737 833,292
-- - - - 84,653
-- - - 662,000 662,000
$ 38,89968,559$ 1,939,686$ 333,687$ 3,386,123$ 10,704,818$
$ $ 4,340$ 6,248$ 59,528$ 449,899$
-- - - - 5,355
-- - - 5,181 50,343
-- - - 51,837 713,837
-- - - - 33,810
-- 4,340 6,248 116,546 1,253,244
-- - - - 410,061
-- - - - 441,232
-- - - - 3,052,164
-- - - - 974,523
38,89968,559 1,935,346 327,439 3,300,409 3,817,390
-- - - - 787,036
-- - - (30,832) (30,832)
38,89968,559 1,935,346 327,439 3,269,577 9,451,574
$ 38,89968,559$ 1,939,686$ 333,687$ 3,386,123$ 10,704,818$
63
CITY OF LA PORTE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2012
Special Revenue Funds
Tax Increment
Hotel Motel Section 4b Reinvestment
TaxSales TaxZoneGrant Fund
Revenues
Property Taxes
$ --$ 1,633,547$ -$
Sales and use taxes
1,948,484- - -
Other taxes
-499,431 - -
Fines and forfeitures
-- - 244,315
Charges for services
-- - 27,339
Intergovernmental
-- - 1,224,849
Interest
4,2991,829 635 1,846
Miscellaneous
-5,970 - -
Total revenues
1,952,783507,230 1,634,182 1,498,349
Expenditures
Current:
General government
170,877312,361 380,270 166,535
Public safety
-- - 255,438
Public Works
-- - 592,469
Culture and recreation
-- - 58,804
Capital outlay
-- 1,095,875 241,638
Total Expenditures
170,877312,361 1,476,145 1,314,884
Excess (deficiency) of revenues over
expenditures
1,781,906194,869 158,037 183,465
Other Financin Sources (Uses)
g
Transfers in
154,914- - -
Transfers out
(1,630,338)(39,000) - -
sources (uses)
Total other financin
g
(1,475,424)(39,000) - -
Net change in fund balances
306,482155,869 158,037 183,465
Fund balances - beinnin
gg
2,125,224874,650 358,944 985,116
Fund balances - endin
g
$ 2,431,7061,030,519$ 516,981$ 1,168,581$
64
Page 1 of 2
Capital Projects funds
2000
Street Emergency Transportation & 1998 General Certificate of
Maintenance Services Sales Total Special Other Obligation Obligation
Sales Tax FundTax FundRevenue FundsInfrastructureBondsBonds
$ --$ 1,633,547$ -$ -$ -$
887,849974,242 3,810,575 - - -
-- 499,431 - - -
-- 244,315 - - -
-- 27,339 - - -
-- 1,224,849 - - -
-2,018 10,627 109 533 64
-- 5,970 - - -
887,849976,260 7,456,653 109 533 64
-- 1,030,043 - - -
640,675- 896,113 - - -
-92,309 684,778 - - -
-- 58,804 - - -
-743,141 2,080,654 60,258 969,051 -
640,675835,450 4,750,392 60,258 969,051 -
247,174140,810 2,706,261 (60,149) (968,518) 64
-- 154,914 - - -
-- (1,669,338) - - -
-- (1,514,424) - - -
247,174140,810 1,191,837 (60,149) (968,518) 64
-646,226 4,990,160 60,216 1,000,611 29,615
$ 247,174787,036$ 6,181,997$ 67$ 32,093$ 29,679$
65
CITY OF LA PORTE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2012
2004 2005 2006
Certificate of Certificate of 2005 General Certificate of
Obligation Obligation Obligation Obligation
BondsBondsBondsBonds
Revenues
Property Taxes
$ --$ -$ -$
Sales and use taxes
-- - -
Other taxes
-- - -
Fines and forfeitures
-- - -
Charges for services
-- - -
Intergovernmental
-- - -
Interest
54639 - -
Miscellaneous
-- - -
Total revenues
54639 - -
Expenditures
Current:
General government
-- - -
Public safety
-- - -
Public Works
-- - -
Culture and recreation
-- - -
Capital outlay
59,525306,145 - -
Total Expenditures
59,525306,145 - -
Excess (deficiency) of revenues over
expenditures
(59,471)(305,506) - -
Other Financin Sources (Uses)
g
Transfers in
-- - -
Transfers out
-- - -
Total other financin sources (uses)
g
-- - -
Net change in fund balances
(59,471)(305,506) - -
Fund balances - beinnin
gg
28,639562,778 892 610,163
Fund balances - endin
g
$ (30,832)257,272$ 892$ 610,163$
66
Page 2 of 2
Capital Projects Funds (continued)
2007
2006 General Certificate of 2010 Certificate Total Nonmajor
Obligation Obligation of Obligation Drainage Total Capital Governmental
BondsBondsBondsImprovementsProjects FundsFunds
$ --$ -$ -$ -$ 1,633,547$
-- - - - 3,810,575
-- - - - 499,431
-- - - - 244,315
-- - 265,734 265,734 293,073
-- - - - 1,224,849
454134 3,669 507 6,163 16,790
-- - - - 5,970
454134 3,669 266,241 271,897 7,728,550
-- - - - 1,030,043
-- - - - 896,113
-- - 63,534 63,534 748,312
-51,037 - - 51,037 109,841
98,850- 1,093,957 - 2,587,786 4,668,440
98,85051,037 1,093,957 63,534 2,702,357 7,452,749
(98,396)(50,903) (1,090,288) 202,707 (2,430,460) 275,801
-- - - - 154,914
(281,133)- - - (281,133) (1,950,471)
(281,133)- - - (281,133) (1,795,557)
(379,529)(50,903) (1,090,288) 202,707 (2,711,593) (1,519,756)
418,428119,462 3,025,634 124,732 5,981,170 10,971,330
$ 38,89968,559$ 1,935,346$ 327,439$ 3,269,577$ 9,451,574$
67
(This page intentionally left blank.)
68
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
– BUDGET TO ACTUAL
Debt Service Fund
Special Revenue Fund
Capital Projects Fund
69
CITY OF LA PORTE, TEXAS
PECIAL REVENUE FUND - DEBT SERVICE FUND
S
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Property taxes
$ 2,382,1732,288,150$ 94,023$ 2,333,153$
Investment earnings
27,48912,000 15,489 11,244
Total Revenues
2,409,6622,300,150 109,512 2,344,397
Expenditures
Debt Service:
Principal2,170,000 2,170,000 -
Interest and other charges
1,519,7691,576,270 56,501 1,740,000
Bond issuance costs
150,897- (150,897) 1,871,371
Total Expenditures
3,840,6663,746,270 (94,396) 3,611,371
Revenues over (under) expenditures
(1,431,004)(1,446,120) 15,116 (1,266,974)
Other Financin Sources (Uses)
g
Issuance of debt
9,435,000- (9,435,000)
Premium on bonds
364,013- (364,013)
Payment to escrow agent
(9,638,626)- 9,638,626
Transfers in
1,248,2711,248,271 - 1,262,168
Total Other Financin Sources (Uses)
g
1,408,6581,248,271 (160,387) 1,262,168
Net change in fund balance
(22,346)(197,849) (145,271) (4,806)
Fund balances, beginning of year
3,112,8823,112,882 - 3,117,688
ear end
Fund balances at
$ 3,090,5362,915,033$ (145,271)$ 3,112,882$
y
70
CITY OF LA PORTE, TEXAS
SPECIAL REVENUE FUND - HOTEL MOTEL TAX
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Other taxes
$ 499,431390,000$ 109,431$ 522,597$
Investment earnings
1,829(171)2,000 2,324
Miscellaneous
5,970- 5,970 -
Total Revenues
507,230392,000 115,230 524,921
Exenditures
p
Current:
General government
312,36142,657355,018 323,332
enditures
Total Ex
p
312,361355,018 42,657 323,332
Revenues over (under) expenditures
194,86936,982 157,887 201,589
Other Financin Sources (Uses)
g
Transfers in
-- -
Transfers (out)
(39,000)(39,000) - (41,500)
Total Other Financin Sources (Uses)
g
(39,000)(39,000) - (41,500)
Net change in fund balance
155,869(2,018) 157,887 160,089
Fund balances, beginning of year
874,650874,650 - 714,561
Fund balances at ear end
$ 1,030,519872,632$ 157,887$ 874,650$
y
71
CITY OF LA PORTE, TEXAS
PECIAL REVENUE FUND - SECTION 4B SALES TAX
S
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Sales and use taxes
$ 1,948,4841,628,379$ 320,105$ 1,610,751$
Investment Earnings
4,2992994,000 5,068
Total Revenues
1,952,7831,632,379 320,404 1,615,819
Expenditures
Current:
General government
170,87715,811186,688 157,554
Total Expenditures
170,877186,688 15,811 157,554
Revenues over (under) expenditures
1,781,9061,445,691 336,215 1,458,265
Other Financing Sources (Uses)
Transfers in
154,914- 154,914 -
Transfers (out)
(1,630,338)(1,630,338) - (977,692)
Total Other Financing Sources (Uses)
(1,475,424)(1,630,338) 154,914 (977,692)
Net change in fund balance
306,482(184,647) 491,129 480,573
Fund balances, beginning of year
2,125,2242,125,224 - 1,644,651
Fund balances at year end
$ 2,431,7061,940,577$ 491,129$ 2,125,224$
72
73
CITY OF LA PORTE, TEXAS
PECIAL REVENUE FUND - GRANT FUND
S
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Fine and Forfeits
$ 244,315123,000$ 121,315$ 178,399$
Charges for Services
27,33923,3394,000 14,898
Intergovernmental
1,224,849836,577388,272 917,206
Investment Earnings
1,8461,846- 3,026
Miscellaneous Revenue
-1,350 (1,350) 3,524
Total Revenues
1,498,349516,622 981,727 1,117,053
Expenditures
Current:
General Government
166,535(77,615)88,920 594,786
Public Safety
255,438177,474432,912 455,979
Public Works
592,469(592,469)- 62,334
Culture and Recreation
58,804(194)58,610 148,375
Capital Outlay
241,638480,382722,020 55,516
Total Expenditures
1,314,8841,302,462 (12,422) 1,316,990
Revenues over (under) expenditures
183,465(785,840) 969,305 (199,937)
Other Financing Sources (Uses)
Transfers in
-- - 35,615
Total Other Financing Sources (Uses)
-- - 35,615
Net change in fund balance
183,465(785,840) 969,305 (164,322)
Fund balances, beginning of year
985,116985,116 - 1,149,438
Fund balances at year end
$ 1,168,581199,276$ 969,305$ 985,116$
74
CITY OF LA PORTE, TEXAS
PECIAL REVENUE FUND - STREET MAINTENANCE SALES TAX FUND
S
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
General Sales Tax
$ 974,242814,189$ 160,053$ 805,375$
Investment earnings
2,0181,0181,000 1,401
Total Revenues
976,260815,189 161,071 806,776
Expenditures
Current:
Public works
92,309(92,309)-
Capital outlay
743,141306,8591,050,000 1,028,613
Total Expenditures
835,4501,050,000 214,550 1,028,613
Net change in fund balance
140,810(234,811) 375,621 (221,837)
Fund balances, beinnin of ear
ggy
646,226646,226 - 868,063
Fund balances at ear end
y
$ 787,036411,415$ 375,621$ 646,226$
75
CITY OF LA PORTE, TEXAS
PECIAL REVENUE FUND - EMERGENCY SERVICES SALES TAX FUND
S
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
General Sales Tax
$ 887,849814,189$ 73,660$ -$
Investment earnings
-1,000 (1,000) -
Total Revenues
887,849815,189 72,660 -
Expenditures
Current:
Public Safety
640,675705,000 64,325 -
Total Expenditures
640,675705,000 64,325 -
Net change in fund balance
247,174110,189 136,985 -
Fund balances, beginning of year
-- - -
Fund balances at year end
$ 247,174110,189$ 136,985$ -$
76
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - TRANSPORTATION & OTHER INFRASTRUCTURE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Investment Earnings
$ 109750$ (641)$ 728$
Total Revenues
109750 (641) 728
Expenditures
Current:
Capital Outlay
60,258(6,583)53,675 569,736
Total Expenditures
60,25853,675 (6,583) 569,736
Net change in fund balance
(60,149)(52,925) (7,224) (569,008)
Fund balances, beginning of year
60,21660,216 - 629,224
Fund balances at year end
$ 677,291$ (7,224)$ 60,216$
77
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - 1998 GENERAL OBLIGATION BONDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Investment Earnings
$ 533-$ 533$ 3,614$
Total Revenues
533- 533 3,614
Expenditures
Current:
Capital Outlay
969,051- (969,051) 156,014
Total Expenditures
969,051- (969,051) 156,014
Net change in fund balance
(968,518)- (968,518) (152,400)
Fund balances, beginning of year
1,000,6111,000,611 - 1,153,011
Fund balances at year end
$ 32,0931,000,611$ (968,518)$ 1,000,611$
78
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - 2000 CERTIFICATE OF OBLIGATION BONDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Investment Earnings
$ 64-$ 64$ 93$
Total Revenues
64- 64 93
Net change in fund balance
64- 64 93
Fund balances, beginning of year
29,61529,615 - 29,522
Fund balances at year end
$ 29,67929,615$ 64$ 29,615$
79
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - 2004 CERTIFICATE OF OBLIGATION BONDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Investment Earnings
$ 639-$ 639$ 851$
Total Revenues
639- 639 851
Expenditures
Capital Outlay
306,145- (306,145) 145,667
Total Expenditures
306,145- (306,145) 145,667
Net change in fund balance
(305,506)- (305,506) (144,816)
Fund balances, beginning of year
562,778562,778 - 707,594
Fund balances at year end
$ 257,272562,778$ (305,506)$ 562,778$
80
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - 2005 CERTIFICATE OF OBLIGATION BONDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Investment Earnings
$ 54-$ 54$ 129$
Total Revenues
54- 54 129
Expenditures
Capital Outlay
59,52567,553 8,028 38,943
Total Expenditures
59,52567,553 8,028 38,943
Net change in fund balance
(59,471)(67,553) 8,082 (38,814)
Fund balances, beinnin of ear
ggy
28,63928,639 - 67,453
Fund balances at ear end
$ (30,832)(38,914)$ 8,082$ 28,639$
y
81
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - 2005 GENERAL OBLIGATION BOND
S
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Investment Earnings
$ --$ -$ 169$
Total Revenues
-- - 169
Expenditures
Current:
Public Safety
-- - 23,697
Total Expenditures
-- - 23,697
Net change in fund balance
-- - (23,528)
Fund balances, beginning of year
892892 - 24,420
Fund balances at year end
$ 892892$ -$ 892$
82
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - 2006 CERTIFICATE OF OBLIGATION BOND
S
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Investment Earnings
$ --$ -$ 48,402$
Total Revenues
-- - 48,402
Expenditures
Current:
Public Works
-- - 773
Capital Outlay
-- - 769,930
Total Expenditures
-- - 770,703
Net change in fund balance
-- - (722,301)
Fund balances, beginning of year
610,163610,163 - 1,332,464
Fund balances at year end
$ 610,163610,163$ -$ 610,163$
83
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - 2006 GENERAL OBLIGATION BONDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Miscellaneous Taxes
$ --$ -$ 35,615$
Investment Earnings
134- 134 213
Total Revenues
134- 134 35,828
Expenditures
Current:
Culture and Recreation
51,037- (51,037) 15,609
Total Expenditures
51,037- (51,037) 15,609
Revenues over (under) expenditures
(50,903)- (50,903) 20,219
Other Financin Sources (Uses)
g
Transfers (out)
-- - (35,615)
Total Other Financin Sources (Uses)
g
-- - (35,615)
Net change in fund balance
(50,903)- (50,903) (15,396)
Fund balances, beinnin of ear
ggy
119,462119,462 - 134,858
ear end
Fund balances at
$ 68,559119,462$ (50,903)$ 119,462$
y
84
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - 2007 CERTIFICATE OF OBLIGATION BONDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Investment earnings
$ 454-$ 454$ 2,264$
Total Revenues
454- 454 2,264
Expenditures
Capital outlay
98,850127,000 28,150 116,873
Total Expenditures
98,850127,000 28,150 116,873
Revenues over (under) expenditures
(98,396)(127,000) 28,604 (114,609)
Other Financin Sources (Uses)
g
Transfers (out)
(281,133)(281,133) - (481,708)
Total Other Financin Sources (Uses)
g
(281,133)(281,133) - (481,708)
Net change in fund balance
(379,529)(408,133) 28,604 (596,317)
Fund balances, beinnin of ear
ggy
418,428418,428 - 1,014,745
Fund balances at ear end
$ 38,89910,295$ 28,604$ 418,428$
y
85
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - 2010 CERTIFICATE OF OBLIGATION BOND
S
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Investment earnings
$ 3,6692,000$ 1,669$ 7,540$
Total Revenues
3,6692,000 1,669 7,540
Expenditures
Capital outlay
1,093,957174,000 (919,957) 2,771,299
Total Expenditures
1,093,957174,000 (919,957) 2,771,299
Net change in fund balance
(1,090,288)(172,000) (918,288) (2,763,759)
Fund balances, beinnin of ear
ggy
3,025,6343,025,634 - 5,789,393
Fund balances at ear end
$ 1,935,3462,853,634$ (918,288)$ 3,025,634$
y
86
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - DRAINAGE IMPROVEMENTS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2012
With comparative actual totals for the year ended September 30, 2011
2012
Variance
Positive /
Final BudgetActual(Negative)2011
Revenues
Charges for service
$ 265,734265,000$ 734$ 266,012$
Investment earnings
507350 157 934
Total Revenues
266,241265,350 891 266,946
Expenditures
Current:
Public works
63,534195,000 131,466 409,663
Total Expenditures
63,534195,000 131,466 409,663
Net change in fund balance
202,70770,350 132,357 (142,717)
Fund balances, beinnin of ear
ggy
124,732124,732 - 267,449
Fund balances at ear end
$ 327,439195,082$ 132,357$ 124,732$
y
87
(This page intentionally left blank.)
88
SUPPLEMENTARY INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
General Fund
89
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues - Budget and Actual
For the Year Ended September 30, 2012
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Taxes:
Ad valorem:
Current12,101,675$ 12,101,675$ 13,059,152$ 957,477$
Delinquent259,259259,25968,448(190,811)
Industrial Payments9,900,0009,900,00010,471,444571,444
Total ad valorem22,260,934 22,260,934 23,599,044 1,338,110
Penaty annterest170,000170,000158,850 11,150
ldi()
Sales Taxes3,256,758 3,256,758 3,896,974 640,216
Other Taxes80,000 80,000 60,182 (19,818)
Francse Fees:
hi
Electrical1,260,000 1,260,000 1,288,895 28,895
Gas170,000 170,000 162,361 (7,639)
Telephone375,000 375,000 298,227 (76,773)
Cable250,000 250,000 451,374 201,374
Commercial Solidwaste90,000 90,000 111,087 21,087
Total Franchise Fees2,145,000 2,145,000 2,311,944 166,944
Charges for Services:
Public safety service fees1,437,443 1,437,443 1,584,153 146,710
Health and sanitation service fees2,171,500 2,171,500 2,176,508 5,008
Culture and recreation fees1,453,542 1,453,542 1,382,586 (70,956)
Other service fees353,900 353,900 355,601 1,701
Total Charges for Services5,416,385 5,416,385 5,498,848 82,463
Intergovernmental1,000 1,000 14,585 13,585
Licenses and permits:
Building permits30,406 30,406 443,449 413,043
Licenses306,525 306,525 21,603 (284,922)
Total Licenses and permits336,931 336,931 465,052 128,121
Investment income65,000 65,000 66,078 1,078
Fines and forfeitures1,601,664 1,601,664 1,513,786 (87,878)
Miscellaneous50,000 50,000 30,384 (19,616)
Total revenues35,383,672$ 35,383,672$ 37,615,727$ 2,232,055$
90
CITY OF LA PORTE, TEXAS
Page 1 of 4
General Fund
Schedule of Expenditures - Budget and Actual
For the Year Ended September 30, 2012
Variance with
Final Budet
g
Budeted AmountsActualPositive
g
OriinalFinalAmounts(Neative)
gg
General Government
Administration:
Emergency Management:
Persona servces192,847 195,347 194,887 460
li$$$$
Suppes8,470 8,470 8,239 231
li
Oter servces an carges90,852 90,852 80,892 9,960
hidh
Total Emergency Management292,169 294,669 284,018 10,651
Genera Amnstraton:
ldiii
Persona servces471,790 461,290 398,124 63,166
li
Suppes6,950 6,950 4,181 2,769
li
Oter servces an carges61,295 157,795 151,776 6,019
hidh
Tota Genera Amnstraton540,035 626,035 554,081 71,954
lldiii
Communty Investment:
i
Suppes- 50,670 45,834 4,836
li
Oter servces an carges- 129,352 85,609 43,743
hidh
Tota Communty Investment- 180,022 131,443 48,579
li
Human Resources:
Persona servces226,564 242,564 242,181 383
li
Suppes7,300 7,300 5,909 1,391
li
Oter servces an carges157,065 170,465 143,789 26,676
hidh
Tota Human Resources390,929 420,329 391,879 28,450
l
ormaton Tecnoog
In
fihly
Persona servces369,590 394,590 387,535 7,055
li
es179,031 157,190 156,117 1,073
Supp
li
er servces an carges1,027,972 1,082,178 1,076,886 5,292
Ot
hidh
Inormaton Tecnoog 1,633,9581,576,593 1,620,538 13,420
Tota
lfihly
Muncpa Court:
iil
Persona servces465,156 468,156 467,802 354
li
Suppes an materas19,350 19,350 18,306 1,044
lidil
Oter servces an carges226,331 242,831 230,926 11,905
hidh
Tota Muncpa Court710,837 730,337 717,034 13,303
liil
Purcasng:
hi
Persona servces237,689 233,189 228,457 4,732
li
Suppes3,087 3,087 2,718 369
li
Oter servces an carges9,656 14,156 10,704 3,452
hidh
Tota Purcasng250,432 250,432 241,879 8,553
lhi
Cty Secretary:
i
Persona servces354,635 354,035 313,545 40,490
li
Suppes an materas2,150 4,750 4,690 60
lidil
Oter servces an carges47,264 49,293 28,375 20,918
hidh
Tota Cty Secretar 408,078404,049 346,610 61,468
liy
Lega:
l
Persona servces16,230 16,230 8,115 8,115
li
Oter servces an carges177,095 207,095 165,894 41,201
hidh
Tota Lega 223,325193,325 174,009 49,316
ll
Cty Counc:
iil
Persona servces19,377 23,377 22,929 448
li
Suppes an materas18,350 16,350 12,867 3,483
lidil
Oter servces an carges30,383 32,747 18,227 14,520
hidh
Cty Counc 72,47468,110 54,023 18,451
Tota
liil
Total Administration
4,839,6594,426,479 4,515,514 324,145
91
CITY OF LA PORTE, TEXAS
Page 2 of 4
General Fund
Schedule of Expenditures - Budget and Actual
For the Year Ended September 30, 2012
Variance with
Final Budget
ActualPositive
Budgeted Amounts
OriginalFinalAmounts(Negative)
General Government (continued)
Finance:
ng:
Account
i
Persona servces627,231 627,231 624,314 2,917
li$$$$
Suppes14,000 14,000 12,451 1,549
li
Oter servces an carges106,078 106,078 91,918 14,160
hidh
Capta Outay15,000 - -
ill
Tota Accountng762,309 747,309 728,683 18,626
li
Nonepartmenta:
dl
Persona servces694,353 694,353 644,205 50,148
li
Suppes4,000 4,500 4,411 89
li
Oter servces an carges1,471,918 1,188,231 1,148,846 39,385
hidh
Tota Nonepartmenta 1,887,0842,170,271 1,797,462 89,622
ldl
Tax Oce:
ffi
Persona servces243,599 248,599 247,322 1,277
li
Suppes an materas10,800 10,050 9,163 887
lidil
Oter servces an carges194,488 197,238 188,749 8,489
hidh
Tax Oce448,887 455,887 445,234 10,653
Tota
lffi
Total Finance
3,090,2803,381,467 2,971,379 118,901
Planning and Engineering:
Pannng an Engneerng:
lidii
servces1,012,110 1,016,610 956,464 60,146
Persona
li
Suppes17,100 17,100 14,457 2,643
li
er servces an carges58,456 117,929 100,573 17,356
Ot
hidh
Tota Pannng an Engneerng1,087,666 1,151,639 1,071,494 80,145
llidii
Inspecton:
i
servces736,147 753,147 752,231 916
Persona
li
Suppes29,576 29,576 25,275 4,301
li
Oter servces an carges180,514 160,514 69,772 90,742
hidh
Tota Inspecton946,237 943,237 847,278 95,959
li
Total Planning and Engineering
2,094,8762,033,903 1,918,772 176,104
Total General Government
10,024,8159,841,849 9,405,665 619,150
Public Safety
Fire
Fre Preventon:
ii
Persona servces263,763 272,863 272,711 152
li
Suppes6,230 6,330 6,314 16
li
Oter servces an carges22,160 23,860 23,801 59
hidh
Tota Fre Preventon292,153 303,053 302,826 227
lii
Fre suppresson:
ii
servces1,349,432 1,361,432 1,360,407 1,025
Persona
li
Suppes31,510 37,480 32,215 5,265
li
er servces an carges262,871 262,871 223,976 38,895
Ot
hidh
Capta Outay35,000 34,900 34,872 28
ill
Fre Suppresson1,678,813 1,696,683 1,651,470 45,213
Tota
lii
Emergency meca servces:
dili
Persona servces2,165,580 2,137,630 1,974,198 163,432
li
es150,600 187,675 187,260 415
Supp
li
Oter servces an carges184,558 186,858 186,305 553
hidh
Capta Outay185,250 169,925 169,925
ill
Tota Emergency Servces2,685,988 2,682,088 2,517,688 164,400
li
Total Fire
4,681,8244,656,954 4,471,984 209,840
92
CITY OF LA PORTE, TEXAS
Page 3 of 4
General Fund
Schedule of Expenditures - Budget and Actual
For the Year Ended September 30, 2012
Variance with
Final Budet
g
eted AmountsActualPositive
Bud
g
OriinalFinalAmounts(Neative)
gg
Public Safet (continued)
y
Police
Poce Amnstraton:
lidiii
Persona servces720,640 725,140 724,809 331
li$$$$
Suppes18,709 25,209 25,188 21
li
Oter servces an carges231,387 239,887 235,738 4,149
hidh
Total Police Administration970,736 990,236 985,735 4,501.00
Poce Patro:
lil
Persona servces4,450,933 4,500,933 4,498,513 2,420
li
Suppes253,548 273,877 273,449 428
li
Oter servces an carges534,335 534,335 505,281 29,054
hidh
Tota Poce Patro 5,309,1455,238,816 5,277,243 31,902
llil
Crmna Investgaton:
iilii
Persona servces1,725,478 1,725,478 1,708,051 17,427
li
Suppes60,407 63,237 62,878 359
li
Oter servces an carges86,508 90,008 86,057 3,951
hidh
Capta Outay26,800 26,800 24,604 2,196
ill
Tota Crmna Investgaton1,899,193 1,905,523 1,881,590 23,933
liilii
ces:
Support Serv
i
Persona servces2,209,117 2,209,117 2,051,701 157,416
li
Suppes110,127 102,888 102,828 60
li
Oter servces an carges82,045 83,540 84,537 997
hidh()
Tota Support Servces2,401,289 2,395,545 2,239,066 156,479
li
Total Police
10,600,44910,510,034 10,383,634 216,815
Total Public Safet
15,282,27315,166,988 14,855,618 426,655
y
Public Works
Puc Wors Amnstraton:
blikdiii
Persona servces281,310 281,510 281,495 15
li
Suppes an materas4,800 7,310 7,160 150
lidil
Oter servces an carges70,418 70,008 67,358 2,650
hidh
Tota Puc Wors Amnstraton356,528 358,828 356,013 2,815
lblikdiii
Streets:
servces1,569,256 1,569,256 1,521,703 47,553
Persona
li
Suppes160,582 183,448 182,633 815
li
Oter servces an carges614,236 632,739 591,284 41,455
hidh
Capta Outay41,100 25,000 23,758 1,242
ill
Tota Streets2,385,174 2,410,443 2,319,378 91,065
l
Total Public Works
2,769,2712,741,702 2,675,391 93,880
Health and Sanitation
Resenta Sowaste:
idillid
Persona servces1,173,714 1,157,714 1,114,757 42,957
li
Suppes239,050 266,950 266,540 410
li
Oter servces an carges848,985 848,985 829,523 19,462
hidh
Capta Outay11,900 - -
ill
Tota Resenta Sowaste2,273,649 2,273,649 2,210,820 62,829
lidillid
Commerca sowaste:
illid
Oter servces an carges20,000 20,000 14,948 5,052
hidh
Tota Commerca Sowaste20,000 20,000 14,948 5,052
lillid
Total Health and Sanitation
2,293,6492,293,649 2,225,768 67,881
93
CITY OF LA PORTE, TEXAS
Page 4 of 4
General Fund
Schedule of Expenditures - Budget and Actual
For the Year Ended September 30, 2012
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Culture & Recreation
Mantenance:
Par
ki
Persona servces1,250,047 1,250,047 1,234,154 15,893
li
Suppes an materas117,550 126,050 125,838 212
lidil
er servces an carges717,132 813,162 803,636 9,526
Ot
hidh
Capta outay46,650 12,620 11,573 1,047
ill
Tota Par Mantenance2,131,379 2,201,879 2,175,201 26,678
lki
Recreaton:
i
Persona servces543,530 543,530 523,970 19,560
li
es50,485 39,085 38,103 982
Supp
li
Oter servces an carges173,148 206,930 205,187 1,743
hidh
Tota Recreaton767,163 789,545 767,260 22,285
li
Speca Servces:
ili
Persona servces388,594 385,594 352,503 33,091
li
es24,348 26,348 26,045 303
Supp
li
Oter servces an carges48,399 55,399 50,010 5,389
hidh
Tota Speca Servces461,341 467,341 428,558 38,783
lili
Pars Amnstraton:
kdiii
Persona Servces513,210 513,210 493,730 19,480
li
Suppes10,414 10,414 6,093 4,321
li
Oter Servces an Carges16,900 13,690 11,822 1,868
hidh
Tota Pars Amnstraton540,524 537,314 511,645 25,669
lkdiii
Go Course - Cu House
lflb
Persona Servces390,810 396,810 396,617 193
li
Suppes58,800 58,800 54,605 4,195
li
Oter Servces an Carges73,514 73,514 63,372 10,142
hidh
Tota Go Course523,124 529,124 514,594 14,530
llf
Go Course - Mantenance
lfi
Persona Servces545,041 545,041 538,051 6,990
li
Supplies180,600 151,677 121,010 30,667
Oter Servces an Carges103,489 104,989 94,431 10,558
hidh
Go Course829,130 801,707 753,492 48,215
Tota
llf
Total Culture & Recreation
5,326,9105,252,661 5,150,750 176,160
Total General Fund
$ 35,696,91835,296,849$ 34,313,192$ 1,383,726$
94
COMBINING FINANCIAL STATEMENTS
95
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96
Internal Service Funds
Internal Service Funds account for the financing of goods or services provided by one City department for
another.
Motor Pool Fund – This fund is used to account for the cost of operating and maintaining automotive and
other equipment used by City departments and the purchase of general government vehicles (those not
used by proprietary fund activities). Service charges are billed to departments on a monthly basis to cover
all expenses of the fund.
Technology Fund – This fund is used to account for the cost of operating and maintaining computer
software and equipment used by City departments. Service charges are billed to departments on a monthly
basis to cover all expenses of the fund.
Insurance Fund – This fund is used to account for the provision of group health coverage for all City
employees and others eligible under the City’s plan, including employee dependents and retirees.
97
98
CITY OF LA PORTE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2012
Vehicle Emploee
y
Replacement Health
FundInsuranceTechnologyTotal
Revenues
Charges for services2,122,343$ 4,244,653$ 169,348$ 6,536,344$
Total operating revenues
4,244,6532,122,343 169,348 6,536,344
Operating Expenses
Personal services699,805 153,352 - 853,157
Supplies and materials299,041- - 299,041
Other expenses- 5,252,259 - 5,252,259
Depreciation866,045 - 12,489 878,534
Total operating expenses
5,405,6111,864,891 12,489 7,282,991
Operating income (loss)257,452 (1,160,958) 156,859 (746,647)
Non-Operating Revenues (Expenses)
Interest and investment revenue8,633 3,694 1,685 14,012
Gain (loss) on disposal of capital assets116,515 - - 116,515
Total non-operating revenue (expenses)
3,694125,148 1,685 130,527
Income (loss) before transfers382,600 (1,157,264) 158,544 (616,120)
Transfers in- 478,341 - 478,341
Transfers out(13,236) - (21,000) (34,236)
Total transfers(13,236) 478,341 (21,000) 444,105
Change in net assets369,364 (678,923) 137,544 (172,015)
Total net assets - beginning
1,768,1929,270,110 723,995 11,762,297
Total net assets - ending
$ 1,089,2699,639,474$ 861,539$ 11,590,282$
99
CITY OF LA PORTE, TEXAS
STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year EndedSeptember 30, 2012
Vehicle Employee Health
Replacement InsuranceTechnologyTotal
Cash Flows from Operating Activities
Receipts from customers and users2,122,343$ 4,244,653$ 169,348$ 6,536,344$
Disbursed for personnel services(707,735) (154,107) - (861,842)
Disbursed for goods and services(303,130) (5,350,140) - (5,653,270)
Net cash provided (used) by operating activities
(1,259,594)1,111,478 169,348 21,232
Cash Flows from NonCapital Financing Activities
Transfers from other funds- 478,341 - 478,341
Transfers to other funds(13,236) - (21,000) (34,236)
Net cash provided by (used by) noncapital financing
activities
478,341(13,236) (21,000) 444,105
Cash Flows from Capital and Related
Financing Activities
Proceeds from the sale of equipment163,353 - - 163,353
Acquisition and construction of capital assets, net of disposa -(1,231,690) - (1,231,690)
Net cash used by capital and related financing activities
-(1,068,337) - (1,068,337)
Cash Flows from Investing Activities
Sale of investments339,916 394,000 28,232 762,148
Interest received8,291 3,785 1,577 13,653
Net cash provided by (used by) investing activities
397,785348,207 29,809 775,801
Net increase in cash and equivalents378,112 (383,468) 178,157 172,801
Cash and equivalents, beginning of year
1,498,2022,473,116 455,665 4,426,983
Cash and equivalents, at end of year
$ 1,114,7342,851,228$ 633,822$ 4,599,784$
Unrestricted cash and equivalents2,851,228$ 1,114,734$ 633,822$ 4,599,784$
$ 1,114,7342,851,228$ 633,822$ 4,599,784$
Reconciliation of operating income to net cash provided by
operating activities
Operating income (loss)257,452$ (1,160,958)$ 156,859$ (746,647)$
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation866,045 - 12,489 878,534
(Increase) decrease in accounts receivable- (629) - (629)
(Increase) decrease in inventory1,266 - - 1,266
Increase (decrease) in claims and judgments payable- (74,448) - (74,448)
Increase (decrease) in accounts payable(5,355) (23,375) - (28,730)
Increase (decrease) in salaries payable(2,532) (813) - (3,345)
Increase (decrease) in compensated absences(5,398) - - (5,398)
Increase (decrease) in deferred revenue- 629 - 629
Net cash provided by operating activities
$ (1,259,594)1,111,478$ 169,348$ 21,232$
100
STATISTICAL SECTION
(Unaudited)
101
(This page intentionally left blank.)
102
Unaudited Statistical Section
This part of the City of La Porte, Texas’ comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government's overall financial
health.
Contents Page
Financial Trends 104
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity
114
These schedules contain information to help the reader assess the government's most
significant local revenue sources, the property tax.
Debt Capacity 120
These schedules present information to help the reader assess the affordability of the
government's current levels of outstanding debt and the government's ability to issue
additional debt in the future.
Demographic and Economic Information
125
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the government's financial activities take place.
Operating Information 127
These schedules contain service and infrastructure data to help the reader understand how
the information in the government's financial report relates to the services the government
provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
103
CITY OF LA PORTE, TEXAS
NET ASSETS BY COMPONENT
Last Ten Fiscal Years
Amounts in (000's)
(Accrual Basis of Accounting)
20032004200520062007
Governmental Activities
Invested in capital assets,
net of related debt23,400$ 32,753$ 28,933$ 28,424$ 27,529$
Restricted5,804 5,771 6,642 7,363 13,317
Unrestricted23,953 12,998 19,370 18,984 19,986
Total governmental activities net assets
$ 51,52253,158$ 54,945$ 54,771$ 60,832$
Business-type Activities
Invested in capital assets,
net of related debt26,110$ 25,996$ 26,590$ 29,642$ 29,481$
Restricted3,043 3,663 3,407 2,1862,185
Unrestricted4,709 2,647 1,265 3,3973,296
Total business-type activities net assets
$ 32,30633,862$ 31,262$ 35,225$ 34,962$
Primary Government
Invested in capital assets,
net of related debt49,510$ 58,749$ 55,523$ 58,066$ 57,010$
Restricted8,847 9,434 10,050 9,549 15,501
Unrestricted28,663 15,645 20,635 22,380 23,281
Total primary government net assets
$ 83,82887,020$ 86,207$ 89,996$ 95,793$
104
Exhibit 1
20082009201020112012
$ 32,66724,923$ 35,195$ 37,324$ 46,814$
16,17016,567 18,108 8,0608,728
16,83818,985 13,904 26,85921,621
$ 65,67660,475$ 67,207$ 72,243$ 77,163$
$ 40,20635,483$ 40,595$ 37,606$ 37,567$
2,1881,3531,460680559
3,7992,4732,0274,1993,791
$ 44,03241,471$ 44,082$ 42,485$ 41,917$
$ 72,87460,406$ 75,790$ 74,930$ 84,381$
17,52318,755 19,568 8,740 9,287
19,31122,785 15,932 31,058 25,413
$ 109,707101,945$ 111,290$ 114,729$ 119,080$
105
CITY OF LA PORTE, TEXAS
CHANGES IN NET ASSETS
Last Ten Fiscal Years
Amounts in (000's)
(Accrual basis of accounting)
Fiscal Year
20032004200520062007
Expenses
Governmental activities:
General government8,626$ 10,488$ 7,411$ 7,349$ 8,411$
Public safety10,771 11,947 10,368 11,603 12,153
Public works3,638 1,268 5,165 5,210 3,668
Health and sanitation 1,823 1,907 1,887 1,862 2,488
Culture and recreation4,049 4,106 3,718 3,580 3,120
Interest on long-term debt747 690 864 1,226 1,353
Total governmental activities expenses
30,40629,655 29,413 30,830 31,193
Business-type activities:
Water Services6,339 6,256 6,478 6,845 6,548
Sewer services1,913 1,896 1,820 1,894 2,087
Airport149 143 157 123 124
Bay Forest Golf Course1,285 1,223 1,243 1,285 1,311
Sylvan Beach Convention Center213 194 212 215 218
9,7129,900 9,909 10,361 10,288
Total business-type activities expenses
Total primary government expenses
$ 40,11839,554$ 39,322$ 41,191$ 41,481$
Program Revenue
Governmental activities:
Charges for services
General government661$ 528 670 1,002 2,007
Public safety1,690 1,442 1,498 1,333 435
Public works1,481 106 24 - -
Health and sanitation 831 464 1,430 1,771 1,856
Culture and recreation658 1,157 461 430 418
Operating grants and contributions480 576 2,640 1,031 992
General government- - - - -
Public safety- - - - -
Public works- - - - -
Culture and recreation- - - - -
Capital grants and contributions
General government- - - - -
Culture and recreation- - - - -
revenues
4,2735,801 6,723 5,567 5,708
Business-type activities:
Charges for services
Water Services4,158 4,156 4,500 5,439 4,790
Sewer services2,493 2,493 2,591 2,842 2,764
Airport30 33 33 36 42
Bay Forest Golf Course943 1,022 966 956 911
Sylvan Beach Convention Center161 181 164 163 189
Capital grants and contributions- - - - 1,061
revenues
7,8847,786 8,254 9,435 9,758
Total primary government program
revenues
$ 12,15813,586$ 14,977$ 15,003$ 15,465$
Net (Expense)/Revenue
Governmental activities(23,854)$ (26,132)$ (22,689)$ (25,263)$ (25,486)$
Business-type activities(2,114) (1,828) (1,655) (926) (530)
Total primary government net expense$ (27,960)(25,968)$ (24,344)$ (26,189)$ (26,016)$
106
107
CITY OF LA PORTE, TEXAS
CHANGES IN NET ASSETS
Last Ten Fiscal Years
Amounts in (000's)
(Accrual basis of accounting)
Fiscal Year
20032004200520062007
General Revenues and
Other Changes in Net Assets
Governmental activities:
Property taxes10,868$ 11,062$ 11,816$ 12,197$ 13,066$
Industrial payments7,277 6,896 6,992 7,660 8,189
Sales and use taxes3,038 3,263 3,460 4,068 5,736
Franchise taxes1,683 1,719 1,886 1,987 2,004
Investment earnings542 376 720 1,875 2,387
Other revenues444 495 857 1,213 89
Gain/(Loss) on sale of capital assets- - - - -
Transfers(254) 685 382 (3,910) 76
Total governmental activities
24,49623,598 26,112 25,089 31,546
Business-type activities:
Investment earnings121 89 165 300 343
Other revenues889 874 827 695 -
Gain/(Loss) on sale of capital assets- (6) - (16) -
(76)
Transfers254 (685) (382) 3,910
Total business-type activities
2721,264 611 4,889 267
Total primary government
$ 24,76824,862$ 26,723$ 29,978$ 31,813$
Change in Net Assets
Governmental activities(256)$ (1,636)$ 3,423$ (174)$ 6,060$
Business-type activities(850) (1,556) (1,044) 3,963 (263)
Total primary government
$ (3,192)(1,106)$ 2,379$ 3,789$ 5,797$
108
Exhibit 2
Page 2 of 2
20082009201020112012
$ 16,39113,683$ 17,742$ 17,164$ 17,251$
10,5557,959 10,732 10,19310,471
5,8035,7875,9146,2368,267
2,1652,1602,1712,1962,312
1,783688216143
294
11593164375168
-- - 4,2441,940
(779)(3,533) (1,000) 2,707 334
34,89527,975 36,017 43,331 40,886
73199 39 33 12
-- - 7 16
-- - - -
3,533 779 1,000 (2,707) (334)
8523,732 1,040 (2,667) (306)
$ 35,74731,707$ 37,057$ 40,664$ 40,580$
$ 5,196(357)$ 1,531$ 5,036$ 4,920$
6,5092,56151(1,597)(569)
$ 7,7576,152$ 1,582$ 3,439$ 4,351$
109
CITY OF LA PORTE, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS
Last ten Fiscal Years
Amounts in (000's)
(Modified Accrual Basis of Accounting)
Fiscal Year
20032004200520062007
General Fund
Nonspendable69$ 69$ 69$ 70$ 83$
Committed
Assigned140 372 550 126 134
Unassigned7,037 7,093 8,644 11,582 14,494
Total general fund
$ 7,5347,246$ 9,263$ 11,778$ 14,711$
All Other Governmental Funds
Restricted5,164 5,351 6,236 6,705 9,318
Committed10,734 6,442 16,488 18,814 18,660
Assigned- - - - -
Unassigned- - - - -
Total all other governmental funds
$ 11,79315,898$ 22,724$ 25,519$ 27,979$
110
Exhibit 3
20082009201020112012
$ 102105$ 135$ 139$ 94$
2961991519630
14,40513,75812,27419,11823,840
$ 14,05914,806$ 12,560$ 19,353$ 23,964$
5,8138,489 7,644 14,084 12,573
17,94419,933 20,331 9,079 6,553
-- 7 - -
-- - - (30)
$ 23,75728,423$ 27,983$ 23,163$ 19,096$
111
112
Exhibit 4
20082009201020112012
$ 34,93030,060$ 36,682$ 35,76138,354
-- - - -
-- - - -
642560 476 313 465
1,8331,726 1,803 1,724 1,758
4,4703,958 6,084 5,680 5,957
4,8684,755 989 917 1,239
6101,883 263 193 129
10590 125 242 36
47,45843,033 46,422 44,829 47,938
9,8698,418 9,788 10,289 10,462
13,85915,610 14,612 15,688 15,752
6,6642,909 2,819 3,118 3,439
2,0872,479 2,233 2,182 2,226
3,8173,470 5,048 5,314 5,261
1,6951,655 1,755 1,740 2,170
1,5721,758 1,388 1,871 1,520
150200
15,5576,351 10,843 8,714 8,583
55,12042,650 48,686 48,916 49,563
(7,662)383 (2,264) (4,087) (1,625)
-- 6,265 - -
-- 4,295 - 9,435
-- 225 - 364
14,2327,625 (4,410) (9,639)
(12,119)(7,501) 9,158 4,248 2,711
13732 (10,545) (5,012) (2,644)
-- 5 6,822 1,941
2,250156 4,993 6,057 2,169
5 5, ,7 5,7
$38$(412)$229$191$44
9.4%8.3%8.8%9.0%9.4%
113
CITY OF LA PORTE, TEXAS
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
(unaudited)
Less Tax
Exempt Less Other
Fiscal Tax Personal Real Exemptions and Total Taxable
YearYearReal PropertyPropertyPropertyAbatementsAssessed Value
200320021,498,049,850$ 270,257,240$ 255,642,570$ 1,512,664,520$
200420031,546,560,410 279,687,470 265,840,970 1,560,406,910
200520041,601,433,200 311,721,280 278,265,540 1,634,888,940
200620051,777,351,563 325,549,640 407,734,605 1,695,166,598
200720061,861,821,075 350,191,031 419,779,423 1,792,232,683
200820072,007,113,146 372,331,715428,955,092 1,950,489,769
200920082,237,095,319 469,916,389 502,091,647 2,204,920,061
201020092,261,046,846 582,963,159 515,111,496 2,328,898,509
201120102,055,914,368 672,621,147 514,928,797 2,213,606,718
201220112,079,843,021 720,515,678 535,441,621 2,264,917,078
Source: Harris County Certified Tax Rolls and Corrections.
114
115
CITY OF LA PORTE, TEXAS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
20032004200520062007
City of La Porte by fund:
General0.57500$ 0.57500$ 0.61100$ 0.61100$ 0.61200$
Debt service0.13500 0.13500 0.09900 0.09900 0.09800
Total Direct Rates 0.710000.710000.710000.710000.71000
Harris County Flood Control District0.04174 0.03318 0.03322 0.03241 0.03106
Harris County0.38810 0.39990 0.39986 0.40239 0.39239
Port of Houston Authority0.01990 0.01670 0.01474 0.01302 0.01437
Harris County Board of Education0.00630 0.00630 0.00629 0.00629 0.00585
Hospital District0.19020 0.19020 0.19020 0.19216 0.19216
La Porte I.S.D.1.63000 1.68000 1.73400 1.73400 1.30500
San Jacinto Jr. College District0.13070 0.13910 0.14537 0.14537 0.14537
Total Direct and Overlapping
Rates
$ 3.175383.11694$ 3.23368$ 3.23564$ 2.79620$
Tax rates per $100 of assessed valuation
Source: Harris County Appraisal District
116
Exhibit 6
20082009201020112012
$ 0.619000.61900$ 0.61900$ 0.60500$ 0.60500$
0.091000.09100 0.09100 0.10500 0.10500
0.710000.710000.710000.710000.71000
0.029220.03086 0.02923 0.02809 0.02809
0.392240.38923 0.38805 0.39117 0.40021
0.016360.01773 0.02054 0.01856 0.01952
0.006050.00584 0.00658 0.00658 0.00662
0.192160.19216 0.19216 0.19216 0.18216
1.325001.32500 1.32500 1.35500 1.33000
0.170800.16341 0.17628 0.18560 0.18560
$ 2.841832.83423$ 2.84784$ 2.88716$ 2.86220$
117
CITY OF LA PORTE, TEXAS
Exhibit 7
PRINCIPAL PROPERTY TAXPAYERS
Current Year and 9 Years Ago
20122003
% of% of
TaxableTaxableTaxableTaxable
AssessedAssessedAssessedAssessed
Property Tax PayerValueRankValueProperty Tax PayerValueRankValue
Conoco Phillips Co54,419,668$ 12.40%Oxy Vinyls LP49,186,150$ 13.25%
Wilson Supply51,015,545 22.25%Conoco Phillips, Inc.46,876,580 23.10%
OxyVinyls LP50,833,30932.24%Equistar Chemicals LP45,239,660 32.99%
Granite Underwood Dist Ctr LP46,538,05942.05%BP Solvay 37,068,510 42.45%
Equistar Chemicals LP45,773,03652.02%PPG Industries35,723,480 52.36%
Ineos USA LLC37,999,78061.68%Attofina Petrochemicals26,149,430 61.74%
Underwood Distribution Ctr LP31,439,659 71.39%Centerpoint Energy23,112,520 71.53%
Port Crossing Land LP22,252,05780.98%Dow Chemicals20,718,750 81.38%
Dow Chemical22,134,86990.98%DuPont Dow Elastomers15,866,540 91.05%
Total Petrochemicals21,932,946100.97%Calpine Corporation 13,005,700 100.86%
Subtotal384,338,928 16.97%312,947,320 20.69%
Other Taxpayers1,880,578,150 83.03%1,199,717,200 79.31%
Total2,264,917,078$ 100.00%1,512,664,520$ 100.00%
Source: Harris County Tax Assessor-Collector's records.
118
CITY OF LA PORTE, TEXAS
Exhibit 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Fiscal Collected within the
YearTaxes Levied Fiscal Year of the Levy Collections in Total Collections to Date
Endedfor thePercentageSubsequentPercentage
Sept 30,Fiscal YearAmountof LevyYearsAmountof Levy
200310,826,184$ 10,491,257$ 96.9%299,605$ 10,790,862$ 99.7%
200411,178,35110,829,20296.9%303,169 11,132,37199.6%
200511,669,47311,334,57297.1%277,530 11,612,10299.5%
200612,080,35111,755,12197.3%275,147 12,030,26899.6%
200712,703,85012,418,873 97.8%242,471 12,661,34499.7%
200813,857,467 13,476,872 97.3%345,229 13,822,10199.7%
200915,654,937 15,377,149 98.2%208,091 15,585,24099.6%
201016,542,483 16,309,818 98.6%118,901 16,428,71999.3%
201115,871,498 15,599,930 98.3%164,780 15,764,71099.3%
201216,080,911 15,860,664 98.6%- 15,860,66498.6%
119
CITY OF LA PORTE, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
(dollars in thousands, except per capita)
Governmental ActivitiesBusiness-Type Activities
GeneralCertificatesGeneral
FiscalObligationof ObligationOther RevenueObligationOther
YearBondsBondsObligationBondsBondsObligations
20036,770$ 2,550$ 5,400$ 750$ 1,040$ 7,293$
20045,430 2,400 5,400625 585 6,904
200511,925 11,050 5,4005001456,500
200612,610 16,405 5,130 375 - 8,680
200712,070 24,055 4,860 250 - 7,958
200811,475 23,265 4,590 125 - 7,210
200910,870 22,445 4,320 - - 6,443
201011,665 26,350 4,050 - - 5,660
201110,940 25,605 3,780 - - 4,813
201217,050 20,150 1,620 - - 3,945
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
See Demographic and Economic Statistics for personal income and population data.
120
Exhibit 9
TotalPercentage
Primaryof PersonalPer
GovernmentIncome Capita
$ N/A70423,803$
N/A63321,344
N/A1,02835,520
N/A1,24043,200
N/A1,41349,193
N/A1,32046,665
N/A1,24144,078
N/A1,29847,725
N/A1,32245,138
N/A1,21242,765
121
CITY OF LA PORTE, TEXAS
xhibit 10
E
RATIO OF GENERAL BONDED DEBT TO TAXABLE VALUE,
GENERAL BONDED DEBT PER CAPITA,
AND TAXABLE VALUE OF ALL PROPERTY
Last Ten Fiscal Years
(dollars in thousands, except per capita)
Ratio of Net
Percentage of
General Less Debt Bonded Debt
Personal Per Capita
Fiscal Obligation Certificates Service Net Bonded to Assessed
(2)(2)
YearTax YearBondsof ObligationFundsDebtValueIncome
2003200214,720$ 2,550$ 1,797$ 15,473$ 1.0%N/A382$
2004200310,830 2,400 1,584 11,646 0.7%N/A345
2005200417,325 11,050 1,705 26,670 1.6%N/A772
2006200517,740 16,405 1,814 32,331 1.9%N/A928
2007200616,930 24,055 1,926 39,059 2.2%N/A1,105
2008200716,065 23,265 2,000 37,330 1.9%N/A1,051
2009200815,190 22,445 2,15135,484 1.6%N/A965
2010200915,715 26,350 3,11838,947 1.7%N/A1,152
2011201014,720 25,605 3,11337,212 1.7%N/A1,090
2012201118,670 20,150 3,09135,729 1.6%N/A1,013
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
(2) Population data can be found in demographic and economic statistics table.
122
CITY OF LA PORTE, TEXAS
Exhibit 11
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
September 30, 2012
(dollars in thousands, except per capita)
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Debt repaid with property taxes
Harris County2,223,167,190$ 0.82%18,229,971$
Harris County Department of Education7,795,000 0.82%63,919
0.82%820,164100,020,000
Harris County Flood Control Distric
t
a
Harris County Toll Road - Toll Road Bonds 0.82%--
La Porte ISD208,845,000 37.88%79,110,486
Port of Houston Authority745,874,396 0.82%6,116,170
San Jacinto Jr. College District305,260,568 6.15%18,773,525
Total Net Overlapping Debt3,590,962,154$ 123,114,235
b
City of La Porte direct debt
100%38,820,00038,820,000
Total direct and overlapping debt161,934,235$
a
Harris County Toll Road debt is considered self-supporting.
b
Approximately $16,152,236 of the City's outstanding debt is self-supporting
Source: Texas Municipal Reports
Percentages are based on total property values
123
CITY OF LA PORTE, TEXAS
Exhibit 12
PLEDGED-REVENUE COVERAGE
Last Ten Fiscal Years
Debt Service
Revenues
Available
Gross Operating
Fiscal for Debt
(1)(2)
YearRevenues Expenses ServicePrincipalInterestTotalCoverage
20035,837,448$ 5,025,158$ 812,290$ 580,000$ 115,948$ 695,948$ 1.2
20045,836,221 5,125,635 710,586 580,000 71,293 651,293 1.1
20056,193,451 5,259,943 933,508 565,000 43,161 608,161 1.5
20067,438,016 5,389,783 2,048,233 270,000 111,712 381,712 5.4
20076,722,774 5,681,548 1,041,226 262,500 106,828 369,328 2.8
20088,916,777 5,653,497 3,263,280 387,500 91,605 479,105 6.8
20097,920,114 5,743,725 2,176,389 387,500 76,350 463,850 4.7
20107,822,294 6,514,3431,307,951 525,000216,458741,458 1.8
20118,569,7676,458,4832,111,284 585,000104,488689,488 3.1
20128,383,1626,641,4821,741,680 605,00088,150693,150 2.5
(1)
Total revenues including interest
(2)
Total operating expenses less depreciation
124
CITY OF LA PORTE, TEXAS
Exhibit 13
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal YearPer Capita
EndedPopulationPersonalPersonalMedianSchoolUnemployment
(2)(2)(3)(4)(5)
(1)
IncomeIncomeAge EnrollmentRate
Sept. 30,
200333,789N/AN/AN/A7,6486.6%
200433,712N/AN/AN/A7,6295.7%
200534,538N/AN/AN/A7,8085.3%
200634,825N/AN/AN/A7,7864.7%
200735,362N/AN/AN/A7,8894.4%
200835,518N/AN/AN/A7,9405.2%
200936,779N/AN/AN/A7,8309.4%
201033,800N/AN/A337,7818.2%
201134,138N/AN/A337,7329.0%
201235,280N/AN/A337,7516.3%
Data sources:
(1) Estimated population provided by city staff
(2) Personal income and per capita personal income is currently unavailable
(3) Median age data prior to 2010 is not available, medium age provided by 2010 Census
(4) School enrollment provided by La Porte Independent School District
(5) Unemployment rates provided from the Bureau of Labor Statistics
125
126
CITY OF LA PORTE, TEXAS
xhibit 15
E
FULL-TIME EMPLOYEES BY FUNCTION/PROGRAM
Last Eight Fiscal Years
20052006200720082009201020112012
General Government
76768079787990 90
Public Safety:
138135 147 142 143 144 144 151
Public Works
3232 32 32 32 32 32 32
Health and Sanitation
2122 21 22 22 22 24 24
Culture and recreation
4547 44 45 45 46 46 46
Water services
2726 25 25 25 25 25 25
Sewer Services
2020 20 20 20 20 20 20
Golf Course13 13 12 12 12 12 - -
Sylvan Beach
Convention Center3 3 4 4 4 - - -
Total 375374 385 381 381 380 381 388
127
CITY OF LA PORTE, TEXAS
OPERATING INDICATORS BY FUNCTION / PROGRAM
Last Ten Fiscal Years
Fiscal Year
20032004200520062007
Function / Program
Police
Physical arrests2,2712,0002,3302,4652,489
Tickets processed9,6056,5936,8778,2129,652
Fire
Number of calls answered9761,3431,7472,0281,603
InspectionsN/A500500N/A600
Highways and streets
Street resurfacing (linear feet)27,80033,80022,97527,83522,100
Potholes repaired4135245313211,260
Sanitation
Cu. Yds. Garbage collected28,24329,67530,02230,79529,279
Cu. Yds Trash collected50,11154,87549,14049,14052,250
Culture and recreation
Fitness center admissions76,31184,35381,86870,55862,828
Water
Number of water meters10,98711,18911,39111,59211,743
Average daily consumption
4.03.84.13.93.8
(millions of gallons)
Water main breaks
440299437483467
Wastewater
Average daily sewage treatment3.94.03.52.83.9
(thousands of gallons)
Golf Course
Number of Paid Rounds Played38,59438,90134,96132,73132,433
Source: Various City departments
Notes: N/A - Data not available
128
Exhibit 16
20082009201020112012
2,6422,7372,5382,3542,311
15,35216,09816,60314,61913,221
1,7991,4091,5591,4831,195
320600690725812
19,88723,55938,36560,47269,580
9961,0121,2364651,173
29,28229,89429,64227,96142,589
48,13678,90048,36845,77854,641
62,24553,40178,11864,98964,279
11,91311,96812,01512,06112,129
4.04.03.94.64.3
455498417666311
3.22.83.72.83.3
35,83936,009
31,27134,84834,038
129
CITY OF LA PORTE, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION / PROGRAM
Last Ten Fiscal Years
Fiscal Year
20032004200520062007
Function / Program
Public Safety
Police Station11111
Police Officers7272727374
Reserve Officers55556
Fire Stations44444
Sanitation
Collection trucks1414141414
Highways and streets
Streets (miles)164164211217211
Streetlights1,5331,6652,1921,8031,804
Traffic signals33333
Culture and recreation
Parks acreage463463337339347
Parks1919212122
Swimming pools66666
Recreation Centers11111
Senior Center11111
Water and Sewer
Water mains (miles)231231165168176
Fire hydrants1,8001,8001,8001,8001,076
Sanitary Sewers (miles)187187187187189
Storm sewers (miles)8989899292
Source: City Departments
130
Exhibit 17
20082009201020112012
11111
7474757574
21222
44444
1414141412
295126126126125
2,4002,3872,3872,4152,415
37556
347356356356188
2221212122
66555
11443
11111
178180180181182
1,1611,1681,1791,1861,199
189191191192192
9292959760
131