HomeMy WebLinkAbout08-10-15 Regular Meeting, including a Budget Workshop of La Porte City Council
LOUIS RIGBY
DARYL LEONARD
Mayor
Councilmember District 3
JOHN ZEMANEK
VACANT
Councilmember at Large A
Councilmember District 4
DOTTIE KAMINSKI
JAY MARTIN
Councilmember at Large B
Councilmember District 5
DANNY EARP
Mayor Pro-Tem
Councilmember District 1
MIKE CLAUSEN
CHUCK ENGELKEN
Councilmember District 6
Councilmember District 2
CITY COUNCIL MEETING AGENDA INCLUDING A BUDGET WORKSHOP
ON PROPOSED 2015-2016 FISCAL YEAR BUDGET AND OTHER MATTERS
Notice is hereby given of a Regular Meeting, including a Budget Workshop, of the La Porte City
Council to be held August 10-12, 2015, beginning at 6:00 p.m. and reconvening at 6:00 p.m. each
evening thereafter until business is concluded, in the Council Chambers of City Hall, 604 West
Fairmont Parkway, La Porte, Texas, for the purpose of considering the following agenda items.
All agenda items are subject to action. The Public Hearing for the proposed 2015-2016Fiscal
Year Budget will be held on September 14, 2015, at 6:00 p.m., at which time the Mayor and City
Council will receive public input.
1. CALL TO ORDER
2. INVOCATION
The invocation will be given by Brian Christen, La Porte Community Church.
3. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance will be led by Councilmember Dottie
Kaminski.
4. PUBLIC COMMENTS
(Limited to five minutes per person.)
5. CONSENT AGENDA
(All consent agenda items are considered routine by City Council and will be
enacted by one motion. There will be no separate discussion of these items unless a Councilmember
requests an item be removed and considered separately.)
(a)
Consider approval or other action regarding the minutes of the regular City Council meeting
held on July 27, 2015 P. Fogarty
(b)
Consider approval or other action regarding a Resolution authorizing the City Manager to
sign grant award and other documents for Speed and Intersection Traffic Control STEP
Grant K. Adcox
6. DISCUSSION OR OTHER ACTION
(a)
Discussion or other action concerning the proposed 2015-2016 Fiscal Year Budget of
the City of La Porte, Texas C. Alexander
7. COUNCIL COMMENTS
regarding matters appearing on agenda; recognition of community
members, city employees, and upcoming events; inquiry of staff regarding specific factual
information or existing policies Councilmembers Kaminski, Zemanek, Leonard, Engelken,
Earp, Clausen, Martin and Mayor Rigby.
8. RECESS or ADJOURN
In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be received
24 hours prior to the meeting. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.
The City Council reserves the right to meet in an executive session on any agenda item should the need arise
and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government Code.
CERTIFICATION
I certify that a copy of the August 10-12, 2015, agenda of items to be considered by the City Council was posted
on the City Hall bulletin board on August 4, 2015.
__________________________________________
Patrice Fogarty, City Secretary
I certify that the attached notice and agenda of items to be considered by the City Council was removed by me
from the City Hall bulletin board on the ____ day of ________________, 2015.
____________________________________
Signature
Council Agenda Item
August 10, 2015
1. CALL TO ORDER
2. INVOCATION
The invocation will be given by Brian Christen, La Porte Community
Church.
3. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance will be led by Councilmember
Dottie Kaminski.
4. PUBLIC COMMENTS
(Limited to five minutes per person.)
5. CONSENT AGENDA
(All consent agenda items are considered routine by City Council
and will be enacted by one motion. There will be no separate discussion of these items
unless a Councilmember requests an item be removed and considered separately.)
(a)
Consider approval or other action regarding the minutes of the regular city
council meeting held July 27, 2015 P. Fogarty
(b)
Consider approval or other action regarding a Resolution authorizing the City
Manager to sign grant award and other documents for Speed and Intersection
Traffic Control STEP Grant K. Adcox
************************************************************************
LOUIS RIGBY
Mayor
DARYL LEONARD
JOHN ZEMANEK
Councilmember District 3
Councilmember At Large A
VACANT
DOTTIE KAMINSKI
Councilmember District 4
Councilmember At Large B
JAY MARTIN
DANNY EARP
Mayor Pro-Tem
Councilmember District 1
Councilmember District 5
CHUCK ENGELKEN
MIKE CLAUSEN
Councilmember District 2
Councilmember District 6
MINUTES OF THE REGULAR MEETING OF THE
CITY COUNCIL OF THE CITY OF LA PORTE
July 27, 2015
Monday, July 27, 2015,
The City Council of the City of La Porte met in a regular meeting on at the City
6:00 p.m
Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at . to consider the
following items of business:
1. CALL TO ORDER
Mayor Rigby called the meeting to order at 6:00 p.m. Members of Council present:
Councilmembers Kaminski, Earp, Engelken, Martin, Clausen and Leonard. Absent: Councilmember
Zemanek. Also present were City Secretary Patrice Fogarty and City Manager Corby Alexander.
2. INVOCATION
– The invocation was given by Don Hill, La Porte InterChuch Council.
3. PLEDGE OF ALLEGIANCE –
The Pledge of Allegiance was led by Councilmember Jay Martin.
4.PRESENTATIONS, PROCLAMATIONS, and RECOGNITIONS
(a)
Presentation – Resolution – Tribute to Tommy Charles Moser – State Representative,
(District 128,) Wayne Smith. City Flag Presentation by Mayor Rigby
State Representative Wayne Smith read a Resolution from the State, a tribute to the life of Tommy
Charles Moser; and Mayor Rigby presented the US flag and City Flag, both of which flew over the
entrance to the cemetery, to the Moser family.
5. PUBLIC COMMENTS
(Limited to five minutes per person.)
Chuck Rosa, 812 S. Virginia spoke and asked the Holy Spirit to comfort the Moser family. In
addition, Mr. Rosa spoke in regards to Sylvan Beach and asked that the beach be extended or a
community center be built for the use of all citizens.
6. CONSENT AGENDA
(All consent agenda items are considered routine by City Council and will be enacted
by one motion. There will be no separate discussion of these items unless a Councilmember requests an
item be removed and considered separately.)
(a)
Consider approval or other action regarding the minutes of the city council meeting held on
July 13, 2015 – P. Fogarty
(b)
Consider approval or other action regarding a Resolution to the TML Resolution Committee
requesting statewide support of a coastal barrier system, and including a request for funding
for design, construction, and maintenance for a coastal barrier system protecting the
Houston-Galveston Ship Channel region – Mayor Rigby
(c)
Consider approval or other action authorizing the Mayor to execute a Facility Use
Agreement with the City of Morgan’s Point for the use of City of La Porte facilities for
disaster response – C. Alexander
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July 27, 2015, Council Meeting Minutes
(d)
Consider approval or other action regarding an Ordinance amending Fiscal Year 2014-2015
Budget – M. Dolby
(e)
Consider approval or other action regarding recommended date for September 14, 2015, for
the Public Hearing on the City’s Fiscal Year 2015-2016 Proposed Budget – M. Dolby
(f)
Consider approval or other action regarding an Ordinance amending Chapter 74, of the City
of La Porte Code of Ordinances by establishing regulations and fees related to the rental of
dire hydrant meters – S. Wolny
(g)
Consider approval or other action regarding a contract with Trikings Construction of the
construction of a concrete parking lot at 114 South 3 Street in the amount of $3,458.55 for
rd
a combined total of $72,629.47 – B. Eng
Councilmember Engelken moved to approve all Consent Agenda items pursuant to staff
MOTION PASSED.
recommendations. Councilmember Leonard seconded.
Ayes: Mayor Rigby, Councilmembers Leonard, Martin, Clausen,
Kaminski, Earp and Engelken
Nays: None
Absent: Councilmember Zemanek
Prior to Council vote, Assistant City Attorney Clark Askins read the caption of the following ordinances
considered from the Consent Agenda:
Ordinance 2015-3589
AN ORDINANCE APPROVING AN AMENDMENT TO THE BUDGET FOR THE CITY OF LA PORTE,
TEXAS, FOR THE PERIOD OF OCTOBER 1, 2015 THROUGH SEPTEMBER 30, 2015; FINDING THAT ALL
THINGS REQUISITE AND NECESSARY HAVE BEEN DONE IN PREPARTION AND PRESENTMENT OF
SAID BUDGET; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN
EFFECTIVE DATE HEREOF.
Ordinance 2015-3590
AN ORDINANCE AMENDING CHAPTER 74 OF THE CODE OF ORDINANCES OF THE CITY OF LA
PORTE, TEXAS, BY ESTABLISHING REGULATIONS AND FEES RELATING THE RENTAL OF FIRE
HYDRANT METERS; PROVIDING A SEVERABILITY CLAUSE; CONTAINING A REPEALING CLAUSE;
PROVIDING THAT ANY PERSON VIOLATING THER TERMS OF THIS ORDINANCE SHALL BE DEEMED
GUILTY OF A MISDEMEANOR AND UPON CONVICTION SHALL BE FINDED IN A SUM NOT TO EXCEED
TWO THOUSAND DOLLARS; PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE.
7. REPORTS
(a)
Receive report of the Fiscal Affairs Committee – Councilmember Engelken
Councilmember Engelken provided a report of the Fiscal Affairs Committee Meeting held prior the
City Council Meeting and advised the Fiscal Affairs Committee recommends Patillo, Brown & Hill,
L.L.P., as the Committee’s choice for new auditors for the City of La Porte.
8. DISCUSSION OR OTHER ACTION
(a)
Discussion and possible action regarding development of a multi-use convention center along
the waterfront of City-owned acreage – Councilmembers Martin, Earp and Zemanek
Councilmember Martin thanked Councilmembers Earp and Zemanek for their signatures to have
this item presented. Economic Development Coordinator Scott Livingston presented a presentation
for the development of a multi-use convention center along the waterfront of City-owned acreage.
Mr. Livingston provided the best estimate on a 26,000-square-foot conference center is roughly
$3.5 million.
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July 27, 2015, Council Meeting Minutes
Councilmember Leonard asked if there are any thoughts for docking/pier facilities for boats to come
up to the convention center. Mr. Livingston responded that’s a possibility; the City can find a
developer to implement docking facilities, or the City can build the facilities.
Councilmember Earp asked Economic Development Coordinator Scott Livingston if he could
provide a conservative budget and bring it back to Council. Mr. Livingston responded yes.
Councilmember Clausen commented he thinks a multi-use convention center is a good idea, but he
does not think the facility can be constructed for $120 per square foot. Councilmember Clausen
commented the City needs to make it a first class facility.
Councilmember Martin commented the facility will be available to all citizens and a crown jewel for
our City. Councilmember Martin also commented it will be a proper use of Hotel/Motel and
Economic Development Corporation funds, and he does not want to hold a bond election if not
required.
Councilmember Engelken commented Sylvan Beach Pavilion is a jewel with a lot of history, and he
wishes there was a better agreement between the City and Harris County. Councilmember
Engelken also commented the City does need a meeting place, whether on waterfront or more
inland; and City needs to study viable options for the future.
Mayor Rigby commented he is not familiar with the Michigan area and does not know the cost to
operate these type of facilities and if the City developed a multi-use convention center, there will be
competition with Harris County. Mayor Rigby also commented he cannot support the idea without
all of the information.
Councilmember Martin commented he is not sure the facility will be a revenue stream, but it will
bring individuals to the City.
Councilmember Earp commented the idea should be examined with cost of maintenance and
utilities as any other business.
Councilmember Leonard commented staff needs to look at a pro forma budget -- cost estimates
with cold hard figures.
Councilmember Leonard moved for staff to bring back additional information. Councilmember Earp
MOTION PASSED.
seconded.
Ayes: Mayor Rigby, Councilmembers Clausen, Martin, Leonard
Kaminski, Earp and Engelken
Nays: None
Absent: Councilmember Zemanek
(b)
Discussion and possible action regarding further exploring the City options and opportunities
related to energy saving performance contracting – C. Alexander
City Manager Corby Alexander discussed exploring City options and opportunities related to energy
saving performance contracting and asked if Council is interested in staff exploring options and
opportunities for energy savings.
Councilmember Leonard asked if there are any cost estimates for consulting companies to provide
services. City Manager Corby Alexander responded the companies make money by putting the
projects together.
Councilmember Earp commented he would like to see which buildings are of concern and the
energy cost of each building to see if the project can be spread out.
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July 27, 2015, Council Meeting Minutes
Councilmember Engelken commented he would like to see previous results for contracting for
energy saving performances.
Councilmember Martin asked if the savings consist of more than just air conditioning. Mr. Alexander
responded it consist of lights, insulation and equipment.
Councilmember Clausen commented he has never been a proponent of performance contracting,
and the City will have to be very careful selecting a company.
Mayor Rigby commented there may be some companies that will conduct an energy audit.
Councilmember Earp moved to bring this item back after additional information is gathered.
MOTION PASSED.
Councilmember seconded Engelken.
Ayes: Mayor Rigby, Councilmembers Clausen, Martin, Leonard
Kaminski, Earp and Engelken
Nays: None
Absent: Councilmember Zemanek
9. ADMINISTRATIVE REPORTS
There were no additional reports.
10. COUNCIL COMMENTS
regarding matters appearing on the agenda; recognition of community
members, city employees, and upcoming events; inquiry of staff regarding specific factual
information or existing policies– Councilmembers Martin, Kaminski, Zemanek, Leonard, Engelken,
Earp, Clausen and Mayor Rigby
Councilmember Martin congratulated Parks and Recreation Director Rosalyn Epting and staff on
the reopening of the Recreation and Fitness Center; commented the new safety exchange zone by
the Police Department is a great idea; thanked Representative Wayne Smith for the resolution to
the Moser family; and asked City Manager Corby Alexander why “no truck signs” are not allowed on
Wharton Weems Road; Councilmember Kaminski congratulated Parks and Recreation Director
Rosalyn Epting and staff on the reopening of the Recreation and Fitness Center; commented on
her excitement for the new safety exchange zone by the Police Department; thanked
Representative Wayne Smith for the resolution and sent prayers to the Moser family;
Councilmember Leonard congratulated Parks and Recreation Director Rosalyn Epting and staff on
the reopening of the Fitness Center; thanked Representative Wayne Smith for the resolution to the
Moser family; Councilmember Engelken commented the Recreation and Fitness Center should be
made a showcase; commented a convention center should be addressed in the future; and thanked
Representative Wayne Smith for the resolution; Councilmember Earp thanked Representative
Wayne Smith for the resolution; commented on how much he misses Councilmember Moser; and
what a great idea for the new safety exchange zone; Councilmember Clausen thanked
Representative Wayne Smith for the resolution and sent prayers to the Moser family; commented it
was great for the Recreation and Fitness Center to be open again; commented the new safety
exchange zone is a great idea; and advised he attended the groundbreaking for Sens Road; Mayor
Rigby thanked Representative Wayne Smith for the resolution; commented Councilmember Moser
was a good man that will be sorely missed; commented it is wonderful to have the Recreation and
Fitness Center reopened and advised he attended the Sens Road groundbreaking, and it will be a
540-day project; and he thanked Public Works Director and City Engineer Bob Eng for their
assistance on Highway 146 and Wharton Weems Road.
11. ADJOURN -
There being no further business, Councilmember Engelken made a motion to adjourn
the meeting at 7:05 p.m. Councilmember Leonard seconded. Motion passed unanimously.
_______________________________
Patrice Fogarty, City Secretary
45
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July 27, 2015, Council Meeting Minutes
Passed and approved on August 10, 2015.
________________________________
Mayor Louis R. Rigby
55
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July 27, 2015, Council Meeting Minutes
REQUEST FOR CITY COUNCIL AGENDA ITEM
Budget
Agenda Date Requested: 8-10-15
Source of Funds:
Requested By: Ken Adcox
Account Number:
Department: Police
Amount Budgeted:
Report: Resolution: X Ordinance:
Amount Requested:
Exhibits: Speed and Intersection Traffic Control
STEP Resolution
Budgeted Item: YES NO
Exhibits: Texas Traffic Safety Program Grant
Agreement
Exhibits
SUMMARY & RECOMMENDATION
The La Porte Police Department has made its annual application for the TXDOT “S.T.E.P.” grant concerning overtime
reimbursement for Speed and Intersection Control for the fiscal year 2015/2016. This will mark the seventh year for
which the department has applied for the grant. TXDOT has preliminarily approved the award and forwarded the
attached grant agreement for City Council’s consideration and approval.
The grant will reimburse the City up to $49.875.19, with matching contributions from the City of $51,690.77.
Although the grant pays only base salary, as in past years, the police department will continue to meet the match
through administrative costs, employee benefits, mileage, fuel, and City funded Speed and Intersection Control
overtime.
Action Required by Council:
Consider approval or other action of a Resolution authorizing the City Manager to sign for grant award and other
documents for Speed and Intersection Traffic Control STEP grant.
Approved for City Council Agenda
Corby Alexander, City Manager Date
RESOLUTION
* * * *
WHEREAS
, injuries and deaths from traffic crashes bring loss and suffering to the citizens
of this community; and
WHEREAS
, the cost of such injuries brings economic hardship to families; and
WHEREAS
, the community’s health care system and emergency response resources are
significantly impacted by injuries of traffic crashes; and
WHEREAS
, research shows that speed is a causative factor in many traffic crashes; and
WHEREAS,
failure to obey traffic control devices, signs and signals at intersections
causes many traffic crashes; and
WHEREAS
, the National Highway Traffic Safety Administration statistics have shown
that reducing speed limit and traffic control violators prevents crashes, saves lives and
reduces non-fatal injuries while resulting in economic savings to society;
WHEREAS/
, the SpeedIntersection Traffic Control STEP includes public education and
intensified law enforcement to get the community to comply with speed limits and traffic
control devices, signs and signals;
NOW THEREFORE, BE IT RESOLVED
that The City of La Porte approves the City
Manager to execute all documents for the Speed/ITC STEP Grant for October 1, 2015
through September 30, 2016; joining public and private sector leaders across Texas
supporting the campaign; urging all residents and visitors of La Porte to abide by traffic
laws, to protect life and the quality of life in this community.
Signed by:
___________________________
Authorized Official
ATTEST: APPROVED:
City Secretary Mayor, City of La Porte
REQUEST FOR CITY COUNCIL AGENDA ITEM
Budget
Agenda Date Requested: 8-10-15
Source of Funds:
Requested By: Michael Dolby/Corby Alexander
Account Number:
Department: Finance/Administration
Amount Budgeted:
Report: X Resolution: Ordinance:
Amount Requested:
Exhibits: Proposed FY16 Budget Presentation
Budgeted Item: YES NO
Exhibits: Plan of Finance for Proposed Bond Issue
Exhibits Timeline for Proposed Bond Issue
SUMMARY & RECOMMENDATION
Staff will present the Proposed Fiscal Year 2016 budget for Council discussion and review.
Action Required by Council:
Receive report from staff and provide direction for any follow up as necessary.
Approved for City Council Agenda
Corby Alexander, City Manager Date
1
2015
10,
August
of
Week
2
capital
costs
Funding
personnel
utility
2016
issue)
Tax
future
Sales
debt
ĬǒķŭĻƷƭ
Year
Maintenance
for
new
million
Fund
Fiscal
million
each
General
$9.5
affect
$8
Street
million
approximately
proposed
for
rate
employees
the
from
$1.7
increase
tax
Summary
in
million
commitment
from
property
of
replacement
improvements
for
million
rate
of
$1.9
projects
increases
fund
in
(Including
$4.5
increase
Budget
million
utility
and
Capital
Vehicle
Merit
NoNo
$4
3
networks
estimate
Current
increase
for
Assumptions
fee
year
for
unit
Insurance
current
average
per
increase
in
increase
Smokers
over
10%
Health
Expenditure
25%
increase
Fees:
divisions)
$200
for
to
Fees:
16.28%
Increase
Lease
Change
a
Approximately
<2%
all
Lease
Employees:
rate:
Technology
Electrical:
affecting
Premium
Proposed
Vehicle
TMRS
(
4
Funds
All
Expenditures
5
Funds
All
of
Summary
Consolidated
(In millions)
6
Funds
All
Revenues
7
Sources
Revenue
Fund
General
8
Revenues
Fund
General
9
Taxes
Revenues
Valorem
Ad
Fund
&
Taxes
General
of
Lieu
In
10
Interest
and
Waste
Revenues
Solid
Residential
Fund
Taxes,
General
Franchise
Tax,
Sales
11
Fees.
Safety
Child
and
Fees
Revenues
Technology
Fines
Fees,
Court
Security
Fund
Funds,
Municipal
Judicial
General
Includes
Fund.
Grant
the
in
*Located
12
Revenues
Fund
Utility
13
Trends
Sales
Sewer
&
Water
Revenue in millions
14
Revenues
Hotel/Motel
15
0.70 1.59
0.12 0.47 0.24 0.07
Summary
1.13 1.08 0.35 0.47 3.03
-
Projects
1.51 0.10 0.30 0.27 2.18
-
Improvement
General CIP Fund(0.26)
2.45
Utility CIP Fund1.45Sewer Rehabilitation0.29Drainage Improvement Fund0.272010 C/O Bond Fund0.70
Total Capital Improvement
*Includes CIP contingencies.
Capital
Capital Improvement:
(In millions)
16
Summary
Service
Debt
(In millions)
17
Manager
Leach
City
Traci
Assistant
18
Expenditure
Proposed
Total$9,444,000
$1,129,000$1,080,000$1,895,000$4,520,000
350,000
470,000
Total
018)$$
Summaries
(Fund
051)
033)
Fund
(Fund
(Fund
Rehabilitation
015)
003)
Street/InfrastructureBond
019)
Fund
(Fund
(Fund
(Fund
Maintenance
CIP
CIP
Sewer
Fund
Fund
Fund
Fund
Drainage
General
Sanitary
Street
Utility
Fund
19
will be included in the final budget presentation in September.
$75,000
)
top
$20,000
1
$43,000
counter
$107,669*
Monument:
8
$169,000
(P.
Program:
$10,000 existing
Improvements:
$357,000
Program:
CIP
$35,000
Trail:
Entryway
costs
below
Renovation:
* Added by ED Board at the July 7 meeting. This amount
Cooperation
Fund
Sidewalk:
Use
design
monitors Grant
Replacement:
Park
Building
Equestrian/Multi
Weems
only
Enhancement
Gilliam
General
Dais
Community
Dropping
Street
Includes
Cart
Wharton
Council
Pete
Golf
ParkPark
20
$950,000
(W.
total
Street
for
of
$25,000
th
budgetfunds
$70,000
4
S.
$45,000
$100,000
other
and
5)
total
Program:
)
Improvements:
rd
8
in
Replacement:
for
3
S.
funding
Pump:
(P.
funds
to
Replacement
th
CIP
6
other
$100,000
includes
HillridgeBooster
(S.
$200,000
Street
PinebluffSubdivision
Line
in
Fund
funding
and
St):
Water
of
D.
Valve
only
cost
W
D
Includes
W.
Construct
HouseHouse
Design
Utility
design
Replace
to
St
InIn
B
21
Design
Treatment
Extension
Water
ĭƚƓƷķ
Main
$180,000
$35,000
Waste
Water
$60,000
at
$165,000
Replacement:
Access
Improvements:
CIP
HeadworksImprovements
Replacement:
Southbound
Fund
Construction:
$300,000
Meter
Station
Pump
Utility
146
Water
Plant:
and
LiftLift
SH
22
Quality
Environmental
Fund
$350,000
system
Rehabilitation
on
sewer
Commission
Rehabilitation:
/źƷǤƭ
to
Texas
repairs
Sewer
by
House
Required
9)
Sewer
Sanitary
8
In
(P.
23
$950,000
(W.
total
Street
$200,000
for
of
th
$20,000
budgetfunds
$55,000
$50,000
4
S.
of
11)
$100,000
other
and
budget
total
System:
$50,000
)
Improvements:
Rehab:
rd
in
8
for
total
3
S.
funding
funds
Improvements:
(P.
to
for
Sewer
Materials:
Sewer
th
funds
6
other
$200,000
includes
(S.
Fund
$200,000
other
Storm
Street
Storm
PinebluffSubdivision
in
Drainage
funding
in
and
of
St):
of
D.funding
Estates
CouplandDrive
Drainage
only
cost Inspection
W
D
Includes
W.
Construct
Includes
House
Design
design
Mission
to
St
TV
In
B
24
$200,000
Fund
$225,000
of
$100,000
budget
program
$50,000
Maintenance
total
$200,000
Materials:
$1M
Improvements:
sidewalk
Repairs:
for
$150,000
funds
Resurfacing:
Repairs:
for
Repair
other
Concrete
$100,000
Ramps:
in
Street
funding
CouplandDrive
Concrete
Street
15)
Jacking
Includes
Handicap
Includes
House
Street
Asphalt
Small
8
Slab
In
(P.
25
$95,000
total
for
of
fundsbudget
$80,000
Fund
other
total
$10,000
Improvements:
in
Maintenance
for
funding
funds
Contingency:
other
includes
$80,000
$200,000
PinebluffSubdivision
in
funding
and
Markings:
Streets/Drainage
of
only
cost
Includes
Design
Street
design
Street
26
Sept
on
but
improvements/maintenance
issuance
Long
projects,
of
goals:
end
Bond
a
presentedseveral
for
bond
streets
utility
projected
for
rate
accomplish
Infrastructure
primarily
and
proposal
staff
tax
well
infrastructure
rate
sale
workshop,
property
necessary
utility
as
bond
fund
formal
would
projects
21)
existingexisting
actual
help
budget
that
utility
and
the
to
8
street
timely
see
with
Plan
thethe
designed
/źƷǤƭ
(P.
FY14
will
MaintainMaintain
some
24
CIP
Future
Ensure
the
Council
August
During
Fund
Range
Fund
to
also
27
$950,000
St
Projects
$1.75M
B
(exterior
(W.
FY15)
Street
of
Bond
Catlett/Belfast/Pineybrook/CarlowImprovements:
budget
195,000
from
Street
th
4
rollover
S.
total
th
FY16
$1.1M
$685,000
and
Project:
Infrastructure
4
and
for
)
rd
($140,000
exterior)Improvements:
3
funds
S.
Consolidation
Tanks:
Proposed
to
other
th
6
(S.
$825,000
and
Water
Street
in
$650,000
(interior
funding
only
ScotchmossUtility
Station
Elevated
budget
D.
cost
tanks
Fairmont
W
St):
Includes
Lift
Future
Construct
Design
Fund:
only)Total
Painting
D
Lomax
W.
to
28
for
the
agenda
Timeline
and
Director
Finance
the
on
Managing
bonds
of
included
today
Plan
and
C.O.
this
Henderson,
Council
be
the
will
approve
Finance
Advisor
issue
item
Partners of
required
to
formally
Bob
an
Financial
Intent
24,
Capital
by
August
of
Presented
of
action
to
/źƷǤƭ
Notice
RBC
action
Plan
NoOn
29
Director
Mick,
David
30
Stormwateroutreach efforts required by permit are now
•Decrease Other Professional Services = ($9,750) (50-07)
Administration
•Increase Computer Equipment = $2,465 (20-93)
Adding a radio console, keyboard, monitor
69)
Notable Changes (Round Numbers):
3
Works
(P.
= $367,979
Decrease of ($7,435) (-2.0%)
performed in-house.
Public
Requested Budget
31
2)
of
Increased drainage/grading efforts, less concrete repair
•Decrease Machinery, Tools/Equipment= ($6,600) (20-90)
(1
New estimate equal to expenditures in recent years
Division
•Decrease Paving Materials = ($25,000) (40-15)
New estimate may be closer to actual cost
•Decrease Traffic Materials = ($3,000) (20-10)
71)
•Decrease Gas/Oil = ($11,800) (20-04)
Streets
Needs change from year to year
3
= $2,634,482
(P.
Increase of $20,210 (+0.8%)
Works
Requested Budget
Notable Changes:
Public
32
Replace electrical wiring for South Broadway to Traffic Signal
2)
of
New contract rates and new high visibility uniform shirts
Decreased last year by nearly equal amount -$7,300
(2
•Increase Vehicle Maintenance Fee = $7,600 (40-30)
•Increase Traffic Control Devices = $25,000 (80-27)
•Increase Uniform/Towel Cleaning = $3,800 (60-01)
Division
Streets
= $2,634,482
Notable Changes (continued):
Increase of $20,210 (+0.8%)
Works
Requested Budget
Public
.
33
Not an actual decrease. Eliminating double counting of savings derived
Waste
.
Reflects contract rate increase. Year 5 of current 5-yr contract
•Decrease Vehicle Maintenance Fees = ($8,300) (40-30)
Solid
from utilizing two/three temporary employees.
Residential
•Increase Other Supplies = $13,000 (20-15)
•Decrease Gas and Oil = ($11,500) (20-04)
73)
•Increase Landfill Fees = $33,000 (60-09)
•Decrease Personnel Costs = ($43,000)
3
(P.
= $2,599,310
Increase of $55,314 (+ 2.2%)
Trash bags for residents
Works
Varies year to year.
Requested Budget
Notable Changes:
Public
34
Commercial Solid Waste Contract to collect containerized trash from
Waste
This Commercial Solid Waste Fund is utilized to pay the city’s
Solid
townhouse and multifamily complexes in the city.
Commercial
Estimated FY 15 Expenditures = $17,090
75)
3
(P.
= $17,146
Works
Requested Budget
Increase of $1,646
Public
35
Production
•Decrease estimated TCEQ testing costs = ($3,412) (60-13)
•Increase Machinery / Tools / Equipment = $20,000 (80-21)
Modified budget closer to recent year’s spending
Moved from CIP. No net increase to city budget.
New estimate may be closer to actual cost
Water
7)
•Decrease Gas/Oil = ($4,135) (20-04)
4
(P.
= $623,040
Works
Increase of $11,061 (+1.80%)
Public Requested Budget
Notable Changes:
36
•Increase Machine/Tools / Equipment Replacement** = $3,900 (20-90)
Distribution
•Decreased Tools/Equipment Repair** = ($4,650) (80-21)
•Decrease Vehicle Maintenance** = ($3,560) (40-30)
Water
9)
•Decrease fuel cost = ($9,213) (20-04)
4
(P.
These items vary year to year.
= $994,069
Works
Increase of $23,366 (2.4%)
Requested Budget
Notable Changes:
Public
**
37
Collection
•Increase Building Improvements ** = $3,765 (40-11, 80-02)
•Decrease Machine/Tools/Equipment** = ($5,400) (80-21)
Wastewater
11)
4
(P.= $1,066,348
** This item varies year to year.
Increase of $25,033 (2.62%)
Works
Requested Budget
Notable Changes:
Public
38
2)
of
•Decrease Machinery/Tools/Equipment Repair** = ($4,800) (20-90)
(1
Treatment
•Decrease Building Repair Cost **= ($6,200) (40-11)
13)
Wastewater
** Cost of these items vary year to year.
•Decrease Gas/Oil = ($6,500) (20-04)
4
(P.
= $1,325,177
Increase of $30,831 (2.4%)
Works
Requested Budget
Notable Changes:
Public
39
New budget estimate modified to align with annual cost in recent years
2)
of
•Increase Mach/Tools/Equipment Purchase = ($40,000) (80-21)
(2
Treatment
Moved from CIP. No net increase to city budget.
Wastewater
•Decrease Electric = ($15,000) (70-01)
= $1,325,177
Notable Changes (continued):
Increase of $30,831 (2.4%)
Works
Requested Budget
Public
40
•Decrease Mach /Tools /Equipment Purchase = ($5,000) (20-90)
•Decrease Mach /Tools /Equipment Repair = ($14,000) (80-21)
Business Survey –Local Share 90/10 Grant.
FY 15 budget included a $10,000 contingency
•Increase other Professional Services = $10,000
•Eliminate contingency = ($10,000) (91-50)
Airport
6
5
= $63,806
P.
Decrease of $13,690 (-17.7%)
Need varies year to year Need varies year to year
Requested Budget
:
Notable Changes
.
41
Decreased $42,000 in FY 15. Proposed FY 16 equal to FY 14.
•Decrease Machinery/Tools/Equipment Repair = ($3,000) (40-02)
Authority
•Increase Water Purchase Cost = $41,000 (70-04)
FY 15 budget included a $15,000 contingency
•Eliminate Contingency = ($15,000) (90-50)
Water
12)
= $1,149,726
5
(P.
Area
Need varies year to year.
Increase of $20,245 (+1.8)
Porte
Requested Budget
Notable Changes:
La
42
Install new 18,000 lb4-Post Hydraulic Lift in Mechanic’s Bay
udget to repair wrecked vehicles moved to Non-Dept
•Increase Machinery/ Tools/ Equipment = $16,747 (80-21)
Fund
•Decrease Outside Contract = ($30,000) (40-21)
Maintenance
9)
6
= $1,170,667
(P.
Decrease of $33,758 in FY 15
Increase of $22,559 (2.0%)
Vehicle
Requested Budget
Notable Changes:
b
The
43
3)
of
(1
6)
Replacement Cost
Replacements
$ 20,545 53-102009 Ford Police Interceptor (Police)$ 37,987 53-132010 Ford Police Interceptor (Police)$ 37,987 53-192010 Ford Police Interceptor (Police)$ 37,987 53-202010 Ford
Police Interceptor (Police)$ 37,987 53-262010 Dodge Charger Interceptor (Police)$ 37,987 53-322008 Ford Police Interceptor (Police)$ 37,987 53-602007 Chevy Impala Interceptor
(Police)$ 37,987 53-672008 Chevy Impala Interceptor (Police)$37,987 53-792011 Ford Police Interceptor (Police)$ 37,987 49-302011 Greens Mower (Golf Course)$ 30,124 49-332003 Ford
F150 Pickup (Golf Course)$ 23,532 59-342011 Ford F450 Ambulance (EMS)$ 94,789
49-092010 Zero Turn Mower (Golf Course)$ 13,095 49-102010 Tri-PlexMower (Golf Course)$ 26,243
6
(P.
Fund
Replacement
of
53-051998 Radar Trailer (Police)
Summary
Unit# Description
Vehicle
16
15
FY
44
3)
of
$ 42,203
(Public Works) $ 152,168
72-43 2006 SterlingLT9500 Rear loader (Public Works) $ 158,57972-442006 Sterling LT9500 Rear loader (Public Works) $ 158,579
Works) $ 147,466
$ 36,816
ks) $ 18,437
$ 18,437
71-23 2003John Deere 5420 Tractor (Public Works) $ 31,760
(2
$ 31,760
71-09 2003 Underground Pipehunter(PublicWorks) $ 50,733 Works) $ 44,051
Replacement Cost
Replacements
Fund
Replacement
74-20 2004Chevy 1500 Pickup (Public Works)
71-46 2004 Chev. 3500 Flatbed Truck
77-55 2003 Ford NewHolland (Airport)
74-17 2005Ford F150 Pickup (Public Wor
71-36 2001 New Holland Tractor(Public
71-76 2005 John Deere Tractor
71-29 2004 CrafcoCrack Sealer (Public
of
72-42 2006 GMC Topkickw/ Picker
Summary
Vehicle
Unit# Description
16
15
FY
45
$1,667,336
3)
Pickup (Public Works)$ 35,375
of
Replacement Cost
odyPickup (Public Works) $ 35,375
$ 13,685ons) $ 18,437
$ 38,997
Works) $ 18,437
84-222003 Chevy 1500 Pickup (Public Works) $ 18,437
(3
Replacements
Fund
Replacement
77-61 2007Bush Hog Mower (Airport)
81-10 2004Chevy 1500 Pickup (Recreati
80-40 2002 JohnDeer Tractor (Parks)
85-03 2004 Chevy1500 Pickup (Public
of
85-37 2005F350 W/Utility Body
Summary
86-37 2005 F350 W/Utility B
Unit# Description
Total
Vehicle
16
15
FY
46
$12,574,000
Summary
24)
26)
19)
3
Budget:
(P.
Funding
3
22)
3
(P.
Investigations
(P.
Services
3
Administration
(P.
Grant
Department
Patrol
Support
and
Criminal
Alternative
Police
Total
47
accurately.
fire,
źƷƭ
and
repairs/
police,
to
year.
range
outdated
on
emergency
Shelter
based
fiscal
repairs.
more
budget
needed
by
for
($13,000).
Animal
used
costs
cost
replace
current
costs
roofadvanced
FY15
and
actual
be
anticipated
Shelter
moving
to
($19,500)
19)
to
needed
duringsystem
Adopted
needed
ExecutimeSystem
of
an
reflective
track
to
recording
repairs
for
purchase
less
due
the
21)
system
pay
to
3
to
primarily
us
from
(80
is
to
room
due
(P.video
to
allow
02)recording
whichEquipment
($51,536)
23)
11)
existing
interview
(80
will
01)
(Jail)
10);
(80
(40
Improvements
This
Administration
(70
Equipment
internal
audio
Maintenance
/źƷǤƭ
(60
5.07%
&
Services
CID
Tools,
Services.
Services
services
the
complete
decreased
ƭƷğƷźƚƓƭ
Machinery,
for
Computer
Electrical
Janitorial
Building
Support
Building
module
emergency
to
police
budget
ability
contract.
in
under
to
inin
scheduling
in
in
decrease
to
increaseincreaseincrease
decrease
increase
our
Eventide
ProposedFY16
improvements
account
and
city
EMS.
services
$18,900$11,000$32,500$21,600
overall
repairs
$9,300$8,400
failing
own
and
repairs.
airtime
8
48
and
uniform
Training/
paper
Houston
7)
scale
(not
in
DOT
new
Budget
increase
and
radars
of
a
required
Clot
City
and
Adopted
new
expected
Quickin
chairs
increase
fewer
increases.
4
purchase
expiredreplacement
ǤĻğƩƭ
$21,800).
an
to
drastic
todue
last
replace
salary
to
due
02)
90)
to
from
primarily
purchase
than
to
(40due
(20
to
($266,627)
due
Equipment
order
rather
03)
Equipment
primarily
03)
(40
to
in
22)
91)
($15,200
15)
Stations
(20
4.36%
(20
&
Clothing
20)
&
(20
Tools
Tools
Furniture
Supplies
printers
(10
Base
increased
Machinery,
3
Machinery,
Overtime
Protective
Radios/
(P.
ticket
Other
Office
budget
supplies.
patrol.
inin
car
in
inininin
increaseincrease
decrease
increaseincreaseincreaseincrease
in
Patrol FY16
replacement
Recruitmentfor
contract.
Proposed
shredder
$15,700$20,000
$4,800$3,000$3,900$3,000$3,000
costs.
49
for
Consortium
for
Station
One
funds
to
from
(assigned
list.
Total
vehicles
OSSI
matching
replacement
$38,800)
new
decreased
others
marked
a
as
purchase
not
used
3
5
and
PD
($25,000
to
grade
be
years
due
year
to
to
order
primarily
21)
up
next
this
Chargers.
to
(80
until
order
inon
23)
/Tools/Equipment
Grant
are
55)
replacement
(80
in
with
vehicles
(40
50)
Camera
Equipment
ΛĭƚƓƷķΜ
eplaced
Software
(80
9
Vehicles
of
Body
for
r
total
be
Computer
Machinery
Computer
deferred
will
JAG
Motor
A
Note:
reconstruction.
O)
approved
SR
be
in
tototo
ğŷƚĻƭ͵
an
will
decrease
increaseincreaseincrease
and
Patrol
previously
vehicle
supervisors
to
accident
$14,500$44,000$40,000$12,000
sedans
patrol
fees.
the
charges
50
coming
estimated
this
training
Budget
in
reduction
forensics
Adopted
a
ǤĻğƩƭ
required
on
based
last
less
07)
from
to
(50
($66,618)
due
Services
primarily
2.96%
Professional
20),
24)
increased
(30
Training
Other
budget
3
services.
inin
(P.
decreasedecrease
FY16
warrant
Proposed
$9,000$2,500
CID
year.
for
model.
costs.
51
training.
needs.
staffing
Taser
for
existing
headsets
development
ammunition
minimum
Budget
of
tooth
out
as
fluctuating
well
professional
Adopted
phase
blue
26)
as
purchase
to
costs
ǤĻğƩƭ
due
to
salary
and
due
90),
3
last
toShelter.
OSSI
primarily
(P.
91)
(20
increased
from
Equipment
to
(20
($204,516)
Animal
due
EquipmentShelter.
17)
Services
primarily
to
(20
for
due
and
Animal
Supplies
10)
7.74%
20)
Furniture/
Machinery/Tools
20)
(60
(10
increased
for
(30
Services
Specialized
overtime
01)
Training
Office
(70
budget
Janitorial
Support
Telecommunicators.
Electrical
in
inininin
increase
increaseincreaseincreaseincrease
FY16
for
for
Proposed
$11,000
13,000
$4,000$5,500$3,000$8,800$8,100
$
52
programs).
Crime
needs,
Campus
software
equipment
camps,
crime
efforts)
safety
Funding
specialized
minor
Funding
training)
supplies)
summer
(adoption
programs,
overtime).
Alternative
and
and
(promotionalProgram,
program,
programs
$27,000
(community
spot
total
17)
(hot
(DARE
mentor
safety
Alternative
$127,450
$850
7
$5,300
$15,000
(P.
$50,500
$28,800
predator/
Account
training,
10)
8)
3)
7
(P.
4)
20)
7
7
(P.
(P.Donation
specialized
child
7
Donation
(P.
7
Funds
Funds
(P.
Program,
Funds
Fund
Shelter
Training
Seized
Pipeline
supervisory/
Seized
Safety
Stoppers
Federal
Animal
LEOSE
Shell
State
Child
PD
53
Grants
total
$474,5000
$7,000
Equipment)
16)
Cameras)
7
(P.
Grant
$42,000
$7,100
(SWAT
(Body
$6,000
Squad)
Exam
15)
9)
$5,000
Medical
$44,000
7
6)
7
(P.
(Bomb
(P.
7
Grant
11)
Grant
(P.
Assault/
Grant
18)
$29,500
$204,000
7
$77,900
(P.
$49,000
Partnership
Liaison
$3,000
Grants
7
Grant
(P.
Enforcement
Sexual
Grant
12)
Coordinator
19)
13)
5)
7)
NRA
7
Vest
(P.
7
77Equipment
7
Comptroller
(P.
(P.(P.
(P.
the
Grant
Bulletproof
Grant
DWI
GrantGrant
Grant
of
VictimsFriends
HIDTA
HGAC
UASI
STEPCIOT
ICAC
PD
JAG
TX
54
89)
3
93)
(P.
Planning/Engineering
3
91)
(P.
Inspections
(3
GIS
55
0.3%7.1%3.7%2.6%
RequestedPercent
16Change
Overview
815,198279,594259,674987,411950,2612,079,6192,025,133
2015
Development
812,614
15
Budget
2014
$
$
and
Engineering
Planning
&
Inspection
Planning
Total
GIS
56
Engineering
89)
conference
(CRS)
for
3
$21,681
planning
System
training
(P.
$1,800
Rating
state
decreased
3D
Planning/Engineering
Civil
$2,680
increased
Community
attend
$2,686
level
AutoCAD
software
to
increased
entry
Services
$18,000
Commissioners
increased
Furniture/Equipment
including
including
at
utilize
programmed
81Personnel
chairs
Commissions
increased
services
fully
20Training/Seminars
training
two)
desk
more
positions
of
of
consulting
staff
04Consulting
Replacement
to(instead
Additional
21Special
Technician
assistance
10
91Office
Vacant
Misc.
thru
Four
10
1020303050
57
time
$3,500
this
with
at
decreased
needed
included
$2,111
not
now
Subscriptions
Membership
subscription;
increased
Technician
($2,500)
Committee
GIS
a
20Training/Seminars
and
longer
maintenance
for
91)
01Memberships
ArcServertraining
Data
no
online
Geographic
3
($1,000)
software
ArcGIS
(P.
GIS
3030
58
Books
Code
$3,000
International
$33,000
increased
over
)
decreased
2015
$2,989
93
carry
$3,653
staff
Furniture/Equipment
for
$33,000
current
funds
3
decreased
decreased
Buildings
(P.
included
chairs
included
with
certifications
Inspections
desk
08Educational
30Certification
budget
budget
21Dangerous
Replacement
Previous
91Office
Previous
Fewer
10202060
59
79)
83)
85)
81)
3
(P.
3
3
(P.
(P.
3
Maintenance
(P.
Services
Administration
Recreation
Special
Parks
60
Difference%Change
15.4%
7.4%1.9%6.0%8.0%
$165,326+$112,828+$8,716+$33,528+$320,398+
$2,246,463$2,411,789+
$731,103$843,931+$458,944$467,660+$559,224$592,752+$3,995,734$4,316,132+
Recreation
Request
16
2015
Adopted
15
Budget
2014
&
Total
Services
Administration
Parks Maintenance
Department
Recreation
Special
Parks
budget
SeabreezePark
61
Parks
contract
&
Walker,
Scene
Investment
Splash
Street/Fairmont/Broadway
Nativity
per
Charles
new
at
services
increase
tables
Community
&
79)
Christmas
rentals,
at
Flooring
cleaning
picnic
price
3
events,
21)
Parks
from
(P.
Replace
02)
&
RFC
parks
(80
for
movedSplash
(80
10)
Equipment
Main
Maintenance
Restrooms,
supplies
Improvements
splash
(60
18)
new
on
Services
07)
hookups
01)
(40
06)
&
Pool
(20
Grounds
Mach/Tools
(70
(20
Increases:Janitorial
Chemicals
Electrical
Building
Light
Cleaning
Wave
Park
Christmas
Sign
in
ininin
Partitions
inininin
$18,832$33,560$37,373
Custom
$5,000$7,500$6,200$7,000
Notable
Parks
for
62
not
Cedar
are
that
Little
Pool
at
ΛĭƚƓƷķΜ
fencing
Wave
at
Replace
90)
sidewalks
(20
32)
Machinery/Tools/Equipment
Maintenance
Continued:
(80
Replace
Improvements
04)
Pool,
(20
04)
water
Oil
Decreases:
(70
Wave
Increases
and
Water
holding
Land
Gas
&
Fields
ininin
in
and
$52,607$13,652$11,200
$3,000
NotableNotable
Bayou
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Robert V. Henderson
Managing Director,
Phone: (210) 805-1118
Facsimile: (210) 805-1119
robert.henderson@rbccm.com
CLP,T
ITY OF A ORTE EXAS
PPF
RELIMINARY LAN OF INANCE
D:A1,2015
ATED UGUST
I:
NTRODUCTION
Annually,
capacity within the historical I & S tax rate parameters and the existing Utility System rate structure.
Additionally, we periodically analyze the opportunities for the City to refinance existing debt for
economic savings. The City is working with its Certified Tax values to date and is currently undergoing
its annual budget process in advance of establishing new tax rates. The purpose of this report is to update
the City on its debt capacity given the new debt profile and tax information.
Historically, the City has generally maintained a fairly consistent I & S (debt) tax rate of 10.5 cents,
which is the current rate. This analysis assumes the City maintains the debt tax rate at 10.5 cents.
FB:
INANCIAL ACKGROUND
The City of La Porte currently has 11 ad valorem property tax secured debt obligations outstanding as
follows:
Original Currently Final
Issue: Amount: Outstanding: Maturity:
Limited Tax Bonds, Series 2002 $5,400,000 $ 270,000 3/15/2016
Certificates of Obligation, Series 2005 1,800,000 180,000 3/15/2017
General Obligation Bonds, Series 2005 7,675,000 780,000 3/15/2017
Public Property Finance COs Series 2006 2,625,000 262,500 1/25/2016
Certificates of Obligation, Series 2006 5,765,000 615,000 3/15/2017
General Obligation Bonds, Series 2006 1,200,000 205,000 3/15/2018
Certificates of Obligation, Series 2007 8,075,000 3,760,000 3/15/2029
Certificates of Obligation, Series 2010 6,265,000 4,905,000 3/15/2026
General Obligation Ref. Bonds, Series 2010 4,295,000 2,175,000 3/15/2020
General Obligation Ref. Bonds, Series 2012 9,435,000 9,205,000 3/15/2025
General Obligation Ref. Bonds, Series 2014 9,300,000 8,585,000 3/15/2025
The outstanding debt issues bear interest at rates ranging from 1.1% to 5.0% depending on the original
series.
303 Pearl Parkway, Suite 220 (210) 805-1118 RBC Capital Markets
San Antonio, TX 78215 Member NYSE/SIPC
City of La Porte, Texas
August 1, 2015
Page 2
DC:
EBT APACITY
Debt capacity, as driven by the Interest and Sinking Fund tax levy, is a function of three primary
variables. The first is the level of the tax base or the net Taxable Assessed Valuation (TAV); the higher
the tax base (and the growth assumptions), the higher the capacity. The second is rapidity of the payoff of
existing debt; the faster you pay off debt, the higher the debt capacity. And finally, the level of the I & S
or debt tax rate; the higher the tax rate, the higher the debt capacity. Since the initial debt capacity study,
the TAV has grown faster than expected and gives us comfort to raise growth assumptions in the
intermediate term. The 2014 refunding, structured to pay off debt sooner than originally expected and to
reduce the peak in debt service also added to debt capacity. The debt rate assumption is maintained at the
historical level of 10.5 cents. The attached spreadsheet depicts currently projected level of debt capacity at
$20.74 million between 2015 and 2020. Due primarily to the payoff of existing debt, the capacity will
increase dramatically again in 2025.
ARO:
NOTHER EFUNDING PPORTUNITY
The City of La Porte has refunded outstanding bonds in three of the last five years saving the City
approximately $1,512,781 over the life of those issues or $1,342,291
to a continuing favorable interest rate environment, the City again has the opportunity to refund
$3,420,000 of its existing debt at a projected savings of approximately $317,500 on a net present value
basis. This would represent about 9.25% of par, above the threshold of savings typically deemed
economically advisable. A short attachment describes this opportunity in more detail.
TPLANOFFINANCE:
HE
City administration has advised of the need for $8.0 million to fund a variety of utility system related
capital improvement projects including elevated and ground storage tanks, water distribution and sanitary
sewer collection lines, sewage treatment plant improvements, lift stations and other improvements
including the construction and/or remodeling and equipping of equipment barns and facilities related to
the operation of the utility system as well as a variety of street and drainage system improvements
including full construction, re-construction, repairs and seal coating and related drainage projects. The
debt analysis demonstrates not only a capacity to incur this debt within the framework of the existing 10.5
cent tax rate but, arguably, the need to issue this debt in order to avoid a potentially precipitous decrease
in your tax rate.
amount not to exceed $8.0 million. As the City has sufficient tax secured debt outstanding to warrant the
levying of a 10.5 cent I&S tax rate, it is not necessary that this debt be issued prior to the setting of the
th
. However, in order to take full advantage of the interest rate benefits of a
, and close,
this transaction prior to the end of the calendar year. Additionally, given the Federal Reserve Bo
stated intention to increase interest rates in the intermediate future, we would advise proceeding in as
timely manner as practical.
303 Pearl Parkway, Suite 220 (210) 805-1118 RBC Capital Markets
San Antonio, TX 78215 Member NYSE/SIPC
City of La Porte, Texas
August 1, 2015
Page 3
(which requires the City issue no more than $10.0 million in debt in any one calendar year), we advise the
City to schedule the sale of the refunding bonds for early January 2016.
SD:
ELLING THE EBT
There are three generally prescribed methods for selling public debt. They include selling by competitive
bid, selling on a negotiated sale basis and conducting a private placement. The first two methods involve
sales to the general pubic and would require obtaining bond ratings, preparing public offering documents
and engaging underwriters. The private placement method entails presenting the debt to a number of
commercial banks (both locally and on a regional basis) and asking them to give us interest rate
indications. We would then negotiate final terms and present the City with a bond purchase agreement
between the winning bidder and the City reflecting those terms.
Given the nature of the ) issue (that being one with a pre-determined
structure, a i
our recommendation that the City sell the COs on a competitive bid basis. Our desk believes the demand
for BQ issue is so strong that we could achieve better results for the City with that approach. FYI, the City
used this method of sale in 2002 and 2005. As such recommendations are market condition sensitive;we
respectfully request that we not give a recommendation as to method of sale on the General Obligation
Refunding bonds until much closer to the anticipated sale date.
T:
IMING
public. The publication requirements include two publications in a newspaper of local circulation, one
week apart with the first publication being not less than 30 days prior to the scheduled date the City
Council would meet to approve the issuance of the COs. Once the Council has approved the issue, it must
and approval and then scheduled for
closing per Securities Exchange Commission requirements. As a practical matter, this means the City
needs to expect that it will take approximately 9 weeks between the date the Council approves the
publication of notice of intent and the date the City can expect to receive funds. A proposed timetable of
events to accomplish the issuance is attached for your review.
General Obligation Refunding bonds do not require any special notices or public hearings. There are two
methods for handling council approval. The first is the more traditional in that the Council approves a
plan of finance and authorizes the Director of Finance, working with the Financial Advisor, to proceed
with rating presentations, document preparation and set a predetermined date to sell the bonds and bring
to the Council an ordinance complete with interest rates for Council approval. The second method has
become popular in the past 3-thod,
an ordinance authorizing the issuance of the debt is presented to council that does not set out the final
interest rates of the issue but instead delegates the authority to negotiate such final terms to one or more
City officials; typically the City Manager and/or the Director of Finance, SO LONG AS CERTAIN
PARAMETERS APPROVED BY THE COUNCIL ARE MET. The parameters set out in the ordinance
included a maximum amount of debt to be issued, the maximum level of interest rates that can be
approved, a maximum maturity of the debt and a minimum level of savings that must be achieved.
Finally, the ordinance would put a time limit on the authorization. In this manner, City administration has
303 Pearl Parkway, Suite 220 (210) 805-1118 RBC Capital Markets
San Antonio, TX 78215 Member NYSE/SIPC
City of La Porte, Texas
August 1, 2015
Page 4
the latitude to monitor the market as preparations are made and to choose the market conditions in which
to enter rather than being forced to accept whatever market conditions exist at the time of a predetermined
sale date. Given the timing of document preparation, rating agency availability and City Council
meetings, we believe and expect the traditional method will work and it is our expectation to use that
method. Should unforeseen circumstances arise, we may reconsider the parameters resolution method.
As previously indicated, to preserve the opportunity to use the BQ designation, we would recommend the
City not schedule the sale of the Refunding Bonds until early January. As with the recommendation as to
method of sale, we respectfully request we wait until December to prepare a definitive timetable for the
sale of the refunding bonds.
S:
UMMARY
The City has not only been contemplating the capital improvements for some time but actually preparing
for it with respect to the structuring of the last refunding. Together with interest rates being at very
attractive levels and , this summer/early fall may be the
ideal time to move forward with the issuance of the Certificates of Obligation.
rically aggressive
management of its debt portfolio to take advantage of lower interest rates to again refinance debt to save
the citizens money. We will continue to monitor the interest rate markets and update City Administration
as we approach calendar year 2016.
303 Pearl Parkway, Suite 220 (210) 805-1118 RBC Capital Markets
San Antonio, TX 78215 Member NYSE/SIPC
City of La Porte, Texas
Certificates of Obligation, Series 2015
Financing Timetable of Events
Date Time Required Item Responsible Party
Mon. 8/10/15 Present Capital Improvement Plan and CA & FA
Plan of Finance to City Council
Mon. 8/24/15 Council takes action on Plan of Finance & approves Notice CA, FA & BCCA & FA
of Intent to Issue Certificates of Obligation;
Tue. 8/25/15 Submit Notice of Intent to newspaper for publicationBC
Tues. 8/25/15 Distribute first draft of Preliminary Official Statement FA
(POS) for comments
Thurs. 8/27/15 30 days prior to sale date First publication of Notice of Intent BC
Fri. 8/28/15 3 business days Comments on first draft of POS due All
Tues. 9/1/15 2 business days Distribute second draft of POS for comments FA
Thurs. 9/3/15 2 business days Comments on second draft of POS due All
Thurs. 9/3/15 1 week following first Second publication of Notice of Intent BC
publication
Mon. 9/7/15 2 business days Submit Documents to Rating FA
Thurs. 9/1015 At least 5 business days Conduct Rating Agency Call CA & FA
Mon. 9/14/15 Council adopts budget and sets tax rate CA
Thurs. 9/17/15 5 business days Receive responses from Ra FA
following rating call
Mon. 9/21/15 1 week prior to sale date Post POS electronically FA, Printer
Mon. 9/28/15 Sale date; Council meets to authorize sale and execute All
Bond Purchase Agreement
Tues. 9/29/15 1 business days Documents forwarded to Attorney General BC
Mon. 10/12/15 10 business days BC
Tues. 10/20/15 5 business days Close; deliver Certificates, receive funds FA, BC
________________________________________________________________
BC = Bond Counsel Andrews Kurth, LLP
CA = City Administration
FA Financial Advisor - RBC Capital Markets
Council Agenda Item
August 10, 2015
7. Council Comments
8. Recess or Adjourn
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