HomeMy WebLinkAbout03-23-15 Regular Meeting of La Porte City Council
LOUIS R. RIGBYDARYL LEONARD
MayorCouncilmember District 3Councilmember District 3
JOHN ZEMANEKTOMMY MOSER
Councilmember At Large ACouncilmember At Large ACouncilmember District 4Councilmember District 4
DOTTIE KAMINSKIDOTTIE KAMINSKIJAY MARTIN
Mayor Pro-TemCouncilmember District 5Councilmember District 5
Councilmember At Large BCouncilmember At Large B
MIKE CLAUSEN
Councilmember District 6Councilmember District 6
DANNY EARP
Councilmember District 1Councilmember District 1
CHUCK ENGELKENCHUCK ENGELKEN
Councilmember District 2Councilmember District 2
CITY COUNCIL MEETING AGENDACITY COUNCIL MEETING AGENDA
Notice is hereby given of a Regular Meeting of the La Porte City Council to be held March 23, 2015, Notice is hereby given of a Regular Meeting of the La Porte City Council to be held
March 23, 2015,
beginning at 6:00 PM in the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, beginning at 6:00 PM in the City Hall Council Chambers, 604 W. Fairmont Parkway, La
Porte, Texas,
for the purpose of considering the following agenda items. All agenda items are subject to action.for the purpose of considering the following agenda items. All agenda items are subject
to action.
1.CALL TO ORDERCALL TO ORDER
2.INVOCATIONINVOCATIONThe invocation will be given by Reid Morgan, St. John's Episcopal.The invocation will be given by Reid Morgan, St. John's Episcopal.
3.PLEDGE OF ALLEGIANCEPLEDGE OF ALLEGIANCEThe Pledge of Allegiance will be led by Councilmember Chuck The Pledge of Allegiance will be led by Councilmember Chuck
Engelken.Engelken.
4.PUBLIC COMMENTSPUBLIC COMMENTS (Limited to five minutes per person.) (Limited to five minutes per person.)
5.CONSENT AGENDACONSENT AGENDA
(All consent agenda items are considered routine by City Council and will be enacted by (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 one motion. There will be no separate discussion of these items unless a Councilmember
requests an item be one motion. There will be no separate discussion of these items unless a Councilmember requests an item be one motion. There will be no separate discussion of these
items unless a Councilmember requests an item be
removed and considered separately.)removed and considered separately.)
(a)Consider approval or other action of the minutes of the Council meeting held on March 9, 2015 Consider approval or other action of the minutes of the Council meeting held on March
9, 2015
-- P. Fogarty P. Fogarty
(b)Consider approval or other action regarding an agreement between Harris County and the City Consider approval or other action regarding an agreement between Harris County and the
City
of La Porte for a Community Development Block Grant (CDGB) for the La Porte ISD Colored of La Porte for a Community Development Block Grant (CDGB) for the La Porte ISD Colored
School School -- C. Alexander C. Alexander
(c)Consider approval or other action regarding an Ordinance renewing an Interlocal Agreement Consider approval or other action regarding an Ordinance renewing an Interlocal Agreement
between the City of La Porte and the La Porte Independent School District for the provision of between the City of La Porte and the La Porte Independent School District for the provision
of
Police School Resource/DARE Officers Police School Resource/DARE Officers -- K. Adcox K. Adcox
(d)Consider approval or other action authorizing the Mayor to sign a Resolution designating the Consider approval or other action authorizing the Mayor to sign a Resolution designating
the
City Manager as the designated grant official and approving the grant application for the Body City Manager as the designated grant official and approving the grant application for the
Body
Cameras Acquisition Project through the Criminal Justice Division, Office of the Governor, Cameras Acquisition Project through the Criminal Justice Division, Office of the Governor,
State of Texas State of Texas -- K. Adcox K. Adcox
(e)Consider approval or other action authorizing the City of La Porte to enter into an Interlocal Consider approval or other action authorizing the City of La Porte to enter into an
Interlocal
Purchasing Agreement between the City of Houston and Metro as additional party, for Purchasing Agreement between the City of Houston and Metro as additional party, for
participation in cooperative purchasing program participation in cooperative purchasing program -- C. Daeumer C. Daeumer
6.PUBLIC HEARINGS AND ASSOCIATED ORDINANCESPUBLIC HEARINGS AND ASSOCIATED ORDINANCES
(a)Public Hearing to receive comments regarding recommendation by the Planning and Zoning Public Hearing to receive comments regarding recommendation by the Planning and Zoning
Commission to deny an update to the Future Land Use Map component of the Commission to deny an update to the Future Land Use Map component of the
Comprehensive Plan of the City of La Porte to change future land use classification for 1.0Comprehensive Plan of the City of La Porte to change future land use classification for 1.0-
acre portion of a 2.14acre portion of a 2.14--acre tract of land described as Tracts 262 and 262A, La Porte Outlots acre tract of land described as Tracts 262 and 262A, La Porte Outlots
(applicants Jose Marroquin & Martina Guadalupe Marroquin, on behalf of property owner (applicants Jose Marroquin & Martina Guadalupe Marroquin, on behalf of property owner
Dennis Noseworthy) Dennis Noseworthy) -- E. Ensey E. Ensey
(b)Consider approval or other action regarding an Ordinance adopting an update to the Future Consider approval or other action regarding an Ordinance adopting an update to the Future
Land Use Map Component of the Comprehensive Plan of the City of La Porte, Texas to Land Use Map Component of the Comprehensive Plan of the City of La Porte, Texas to
change future land use classification for 1.0change future land use classification for 1.0--acre portion of a 2.14acre portion of a 2.14--acre tract of land described acre tract of land described
as Tracts 262 and 262A, La Porte Outlots from Large Lot Residential to Commercial as Tracts 262 and 262A, La Porte Outlots from Large Lot Residential to Commercial
(applicants Jose Marroquin & Martina Guadalupe Marroquin, on behalf of the property owner (applicants Jose Marroquin & Martina Guadalupe Marroquin, on behalf of the property owner
Dennis Noseworthy) Dennis Noseworthy) -- E. Ensey E. Ensey
(c)Public Hearing to receive comments regarding recommendation by the Planning and Zoning Public Hearing to receive comments regarding recommendation by the Planning and Zoning
Commission to deny Rezone Request #15Commission to deny Rezone Request #15--92000001 for Jose Marroquin & Martina 92000001 for Jose Marroquin & Martina
Guadalupe Marroquin, on behalf of property owner Dennis Noseworthy, for rezone of a 1.0Guadalupe Marroquin, on behalf of property owner Dennis Noseworthy, for rezone of a 1.0-
acre portion of a 2.14acre portion of a 2.14--acre tract of land described as Tracts 262 and 262A, La Porte Outlots acre tract of land described as Tracts 262 and 262A, La Porte Outlots
from Split Large Lot Residential (LL) and General Commercial to exclusively General from Split Large Lot Residential (LL) and General Commercial to exclusively General
Commercial (GC) Commercial (GC) -- E. Ensey E. Ensey
(d)Consider approval or other action regarding an Ordinance amending Chapter 106, Zoning of Consider approval or other action regarding an Ordinance amending Chapter 106, Zoning of
the Code of Ordinances of the City of La Porte by changing the zoning classification from Split the Code of Ordinances of the City of La Porte by changing the zoning classification from
Split
Large Lot Residential (LL) and General Commercial to exclusively General Commercial (GC), Large Lot Residential (LL) and General Commercial to exclusively General Commercial (GC),
for an approximately 1.0for an approximately 1.0--acre portion of a 2.14acre portion of a 2.14--acre tract of land described as Tracts 262 and acre tract of land described as Tracts
262 and
262A, La Porte Outlots from Large Lot Residential to Commercial (applicants Jose Marroquin 262A, La Porte Outlots from Large Lot Residential to Commercial (applicants Jose Marroquin
& Martina Guadalupe Marroquin, on behalf of the property owner Dennise Noseworthy) & Martina Guadalupe Marroquin, on behalf of the property owner Dennise Noseworthy) & Martina Guadalupe
Marroquin, on behalf of the property owner Dennise Noseworthy) & Martina Guadalupe Marroquin, on behalf of the property owner Dennise Noseworthy) -- E. E.
EnseyEnsey
(e)Public Hearing to receive comments regarding recommendation by the Planning and Zoning Public Hearing to receive comments regarding recommendation by the Planning and Zoning
Commission to approve an update to the Future Land Map Component of the Comprehensive Commission to approve an update to the Future Land Map Component of the Comprehensive
Plan of the City of La Porte to change Future Land Use classification for 6.43Plan of the City of La Porte to change Future Land Use classification for 6.43--acre tract of acre tract
of
land described as Tracts 351 and 352, La Porte Outlots, from Large Lot Residential to Light land described as Tracts 351 and 352, La Porte Outlots, from Large Lot Residential to Light
Industrial (applicant, QualaWash Holdings LLC., on behalf of property owner Louisiana Industrial (applicant, QualaWash Holdings LLC., on behalf of property owner Louisiana
Chemical Co., LLC.) Chemical Co., LLC.) -- E. Ensey E. Ensey
(f)Consider approval or other action regarding an Ordinance adopting an update to the Future Consider approval or other action regarding an Ordinance adopting an update to the Future
Land Use Map Component of the Comprehensive Plan of the City of La Porte, Texas, to Land Use Map Component of the Comprehensive Plan of the City of La Porte, Texas, to
change Future Land Use classification for 6.43change Future Land Use classification for 6.43--acre tract of land described as Tracts 351 and acre tract of land described as Tracts 351
and
352, La Porte Outlots, from Large Lot Residential to Light Industrial (applicant QualaWash 352, La Porte Outlots, from Large Lot Residential to Light Industrial (applicant QualaWash
Holdings LLC., on behalf of property owner Louisiana Chemical Co., LLC.) Holdings LLC., on behalf of property owner Louisiana Chemical Co., LLC.) -- E. Ensey E. Ensey
(g)Public Hearing to receive comments regarding recommendation by the Planning and Zoning Public Hearing to receive comments regarding recommendation by the Planning and Zoning
Commission to approve Rezone Request #15Commission to approve Rezone Request #15--92000002 for QualaWash Holdings LLC., on 92000002 for QualaWash Holdings LLC., on
behalf of property owner Louisiana Chemical Co., LLC., for rezone of a 6.43behalf of property owner Louisiana Chemical Co., LLC., for rezone of a 6.43--acre tract of land acre tract
of land
described as Tracts 351 and 352, La Porte Outlots from Large Lot Residential (LL) to Light described as Tracts 351 and 352, La Porte Outlots from Large Lot Residential (LL) to Light
Industrial (LI) Industrial (LI) -- E. Ensey E. Ensey
(h)Consider approval or other action regarding an Ordinance amending Chapter 106, Zoning, of Consider approval or other action regarding an Ordinance amending Chapter 106, Zoning, of
the Code of Ordinances of the City of La Porte, by changing the zoning classification from the Code of Ordinances of the City of La Porte, by changing the zoning classification from
Large Lot Residential (LL) to Light Industrial (LI) for a 6.43Large Lot Residential (LL) to Light Industrial (LI) for a 6.43--acre tract of land described as acre tract of land described
as
Tracts 351 and 352, La Porte Outlots (applicant, QualaWash Holdings LLC., on behalf of the Tracts 351 and 352, La Porte Outlots (applicant, QualaWash Holdings LLC., on behalf of the
property owner Louisiana Chemical Co., LLC.) property owner Louisiana Chemical Co., LLC.) -- E. Ensey E. Ensey
7.AUTHORIZATIONSAUTHORIZATIONS
(a)Consider approval or other action authorizing the Mayor to execute an Interlocal Agreement Consider approval or other action authorizing the Mayor to execute an Interlocal Agreement
with Harris County for Game Room Regulation Permitting and Enforcement with Harris County for Game Room Regulation Permitting and Enforcement -- K. Adcox K. Adcox
8.DISCUSSION OR OTHER ACTIONDISCUSSION OR OTHER ACTION
(a)Discussion or other action regarding individuals operating their business at City facilities Discussion or other action regarding individuals operating their business at City facilities
- R.
EptingEpting
9.REPORTSREPORTS
(a)Receive report of Fiscal Affairs Committee Meeting Receive report of Fiscal Affairs Committee Meeting -- Councilmember Engelken Councilmember Engelken
(b)Receive 2014 Comprehensive Annual Financial (CAFR) Report Receive 2014 Comprehensive Annual Financial (CAFR) Report -- M. Dolby M. Dolby
10.ADMINISTRATIVE REPORTSADMINISTRATIVE REPORTS
Zoning Board of Adjustment Meeting, Thursday, March 26, 2015Zoning Board of Adjustment Meeting, Thursday, March 26, 2015
Drainage and Flooding Committee Meeting, Monday, March 30, 2015Drainage and Flooding Committee Meeting, Monday, March 30, 2015
Citizens Forum on Code Enforcement for Northside Neighborhood, Tuesday, March 31, 2015Citizens Forum on Code Enforcement for Northside Neighborhood, Tuesday, March 31, 2015
La Porte Development Corporation Board Meeting, Monday, April 6, 2015La Porte Development Corporation Board Meeting, Monday, April 6, 2015
La Porte Development Corporation Board Meeting, Monday, April 13, 2015La Porte Development Corporation Board Meeting, Monday, April 13, 2015
City Council Meeting, Monday, April 13, 2015City Council Meeting, Monday, April 13, 2015
Council Budget Retreat, Saturday, April 18, 2015Council Budget Retreat, Saturday, April 18, 2015
City Council Meeting, Monday, April 27, 2015City Council Meeting, Monday, April 27, 2015
11.COUNCIL COMMENTSCOUNCIL COMMENTS regarding matters appearing on the agenda; recognition of community regarding matters appearing on the agenda; recognition of community
members, city employees, and upcoming events; inquiry of staff regarding specific factual information members, city employees, and upcoming events; inquiry of staff regarding specific
factual information
or existing policies or existing policies Councilmembers Engelken, Earp, Clausen, Martin, Moser, Kaminski, Zemanek, Councilmembers Engelken, Earp, Clausen, Martin, Moser, Kaminski,
Zemanek,
Leonard and Mayor RigbyLeonard and Mayor Rigby
12.ADJOURNADJOURN
The City Council reserves the right to meet in closed session on any agenda item should the need The City Council reserves the right to meet in closed session on any agenda item should
the need
arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas
Government
Code (the Texas open meetings laws).Code (the Texas open meetings laws).
In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable 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 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 281.470.5019.24 hours prior to the meeting. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.
CERTIFICATIONCERTIFICATION
I certify that a copy of the March 23, 2015, agenda of items to be considered by the City Council was posted on the City I certify that a copy of the March 23, 2015, agenda of items
to be considered by the City Council was posted on the City
Hall bulletin board on March 17, 2015.Hall bulletin board on March 17, 2015.
Council Agenda Item Council Agenda Item
March 23, 2015 March 23, 2015
1.CALL TO ORDERCALL TO ORDER
2.INVOCATIONINVOCATIONThe invocation will be given by Reid Morgan, St. John's Episcopal.The invocation will be given by Reid Morgan, St. John's Episcopal.
3.PLEDGE OF ALLEGIANCEPLEDGE OF ALLEGIANCEThe Pledge of Allegiance will be led by Councilmember Chuck The Pledge of Allegiance will be led by Councilmember Chuck
Engelken.Engelken.
4.PUBLIC COMMENTSPUBLIC COMMENTS (Limited to five minutes per person.) (Limited to five minutes per person.)
****************************************************************** ******************************************************************
Council Agenda Item Council Agenda Item
March 23, 2015 March 23, 2015
5.CONSENT AGENDACONSENT AGENDA
(All consent agenda items are considered routine by City Council and will be enacted by (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 one motion. There will be no separate discussion of these items unless a Councilmember
requests an item be
removed and considered separately.)removed and considered separately.)
(a)Consider approval or other action of the minutes of the Council meeting held on March 9, Consider approval or other action of the minutes of the Council meeting held on March 9,
2015 2015 -- P. Fogarty P. Fogarty
(b)Consider approval or other action regarding an agreement between Harris County and the Consider approval or other action regarding an agreement between Harris County and the
City of La Porte for a Community Development Block Grant (CDGB) for the La Porte ISD City of La Porte for a Community Development Block Grant (CDGB) for the La Porte ISD
Colored School Colored School -- C. Alexander C. Alexander
(c)Consider approval or other action regarding an Ordinance renewing an Interlocal Agreement Consider approval or other action regarding an Ordinance renewing an Interlocal Agreement
between the City of La Porte and the La Porte Independent School District for the provision of between the City of La Porte and the La Porte Independent School District for the provision
of
Police School Resource/DARE Officers Police School Resource/DARE Officers -- K. Adcox K. Adcox
(d)Consider approval or other action authorizing the Mayor to sign a Resolution designating the Consider approval or other action authorizing the Mayor to sign a Resolution designating
the
City Manager as the designated grant official and approving the grant application for the Body City Manager as the designated grant official and approving the grant application for the
Body
Cameras Acquisition Project through the Criminal Justice Division, Office of the Governor, Cameras Acquisition Project through the Criminal Justice Division, Office of the Governor,
State of Texas State of Texas -- K. Adcox K. Adcox
(e)Consider approval or other action authorizing the City of La Porte to enter into an Interlocal Consider approval or other action authorizing the City of La Porte to enter into an
Interlocal
Purchasing Agreement between the City of Houston and Metro as additional party, for Purchasing Agreement between the City of Houston and Metro as additional party, for
participation in cooperative purchasing program participation in cooperative purchasing program -- C. Daeumer C. Daeumer
****************************************************************** ******************************************************************
LOUIS RIGBY
Mayor
DARYL LEONARD
JOHN ZEMANEK
Councilmember District 3
Councilmember At Large A
TOMMY MOSER
DOTTIE KAMINSKI
Councilmember District 4
Mayor Pro Tem
JAY MARTIN
Councilmember At Large B
Councilmember District 5
DANNY EARP
MIKE CLAUSEN
Councilmember District 1
Councilmember District 6
CHUCK ENGELKEN
Councilmember District 2
MINUTES OF THE REGULAR MEETING OF THE
CITY COUNCIL OF THE CITY OF LA PORTE
MARCH 9, 2015
Monday, March 9, 2015,
The City Council of the City of La Porte met in a regular meeting on at the City Hall
6:00 p.m
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, Martin, Earp, Leonard, Clausen, Moser and Engelken. Absent: Councilmember Zemanek.
Also present were City Secretary Patrice Fogarty and City Manager Corby Alexander.
2. INVOCATION
The invocation was given by Rickie Edwards, New Hope Missionary Church.
3. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Councilmember Daryl Leonard.
4. PUBLIC COMMENTS
(Limited to five minutes per person.)
Chuck Rosa, 812 S. Virginia St., addressed Council in regards to the City cancelling the May 9, 2015
General Election, thanking Council and Corby Alexander for their good work and for the sidewalks
being installed in his neighborhood.
th
George Watkins, 5221 Valley Brook Ct., addressed Council in regards to the 4 of July Parade and
provided an update on the events to be held.
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 City Council Meeting held on
February 23, 2015 P. Fogarty
(b)
Consider approval or other regarding an ordinance declaring the candidates for Mayor and
Districts 2 and 3 unopposed; declaring Louis R. Rigby, candidate for Mayor, elected; declaring
Chuck Engelken, candidate for District 2, elected; declaring Daryl Leonard, candidate for District
3, elected; and cancelling the May 9, 2015, general election P. Fogarty
(c)
Consider approval or other action to adopt a resolution authorizing revision of Section 5.04 of
the Bylaws of the City of La Porte Development Corporation S. Livingston
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March 9, 2015, Council Meeting Minutes
(d)
Consider approval or other action regarding proposed draft updates of the City of La Porte and
La Porte Area Water Authority Drought Contingency Plans and Water Conservation Plans D.
Mick
(e)
Consider approval or other action awarding Bid # 15007 for Clarifier Rehabilitation and
authorizing the City Manager to execute a contract for Clarifier Rehabilitation at the City of La
Porte Wastewater Treatment Facility D. Mick
(f)
Consider approval or other action regarding purchase of four replacement tractors through
competitive quotes from H-GAC, local government purchasing cooperative and TASB BuyBoard
for Fiscal Year 2014-2015 D. Mick
(g)
Consider approval or other action regarding approval of a community cooperative project with
Shady River HOA for pool renovation with a total City contribution of $5,000 T. Leach
Regarding Item f, it was pulled from the Consent Agenda for separate consideration.
Councilmember Leonard moved to approve the Consent Agenda Items a, b, c, d, e and g pursuant to
MOTION PASSED.
staff recommendations. Councilmember Moser seconded.
Ayes: Mayor Rigby, Councilmembers Clausen, Moser, Leonard,
Engelken, Martin, Kaminski and Earp
Nays: None
Absent: Councilmember Zemanek
Regarding Consent Agenda Item f, Councilmember Clausen moved to amend the purchase of 3
MOTION PASSED.
tractors instead of 4. Councilmember Kaminski seconded.
Ayes: Mayor Rigby, Councilmembers Clausen, Moser, Leonard,
Engelken, Martin, Kaminski and Earp
Nays: None
Absent: Councilmember Zemanek
Prior to Council vote, City Attorney Knox Askins read the caption of the ordinance from Consent Agenda Item
5(b):
Ordinance 2014-3527
: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, DECLARING THE
CANDIDATE FOR MAYOR, LOUIS R. RIGBY, THE CANDIDATE FOR COUNCILPERSON DISTRICT 2, CHUCK ENGEKEN,
AND THE CANDIDATE FOR COUNCILPERSON DISTRICT 3, DARYL LEONARD, UNOPPOSED; DECLARING THE
CANDIDATE FOR MAYOR, LOUIS R. RIGBY, THE CANDIDATE FOR COUNCILPERSON DISTRICT 2, CHUCK
ENGELKEN, AND THE CANDIDATE FOR COUNCILPERSON DISTRICT 3, DARYL LEONARD, ELECTED; CANCELLING
THE ELECTION FOR POSITION OF MAYOR AND SINGLE MEMBER DISTRICTS 2 AND 3; REPEALING ALL
ORDINANCES OR PARTS OF ORDINANCES INCONSISTENT OR IN CONFLICT HEREWITH; CONTAINING A
SEVERABILITY CLAUSE; CONTAINING AN OPEN MEETINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE
HEREOF.
6. DISCUSSION OR OTHER ACTION
(a)
Discussion or other action appointing a councilmember to fill the member vacancy on the Drainage
and Flooding Committee P. Fogarty
Councilmember Leonard moved to appoint Councilmember Martin to member status and
Councilmember Earp to alternate member on the Drainage and Flooding Committee. Councilmember
MOTION PASSED.
Moser seconded.
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March 9, 2015, Council Meeting Minutes
Ayes: Mayor Rigby, Councilmembers Clausen, Engelken, Kaminski,
Moser, Leonard, Earp and Martin
Nays: None
Absent: Councilmember Zemanek
7. Reports
(a)
Presentation Receive 2014-2015 Annual Report from Chad Burke, President/CEO of the
Economic Alliance Houston Port Region S. Livingston
Economic Development Coordinator Scott Livingston introduced Chad Burke, President/CEO of the
Economic Alliance Houston Port Region, who presented a PowerPoint presentation on the 2014-2015
Annual Report.
(b)
Receive report of La Porte Development Corporation Board Councilmember Engelken
Councilmember Engelken reported the La Porte Development Corporation Board received the 2014-
2015 Annual Report from Chad Burke, President/CEO of the Economic Alliance Houston Port Region.
(c)
Receive Strategic Plan Update T. Leach
Assistant City Manager Traci Leach provided the Strategic Plan Update and asked members of Council
for questions or comments. There were no questions or comments.
8. ADMINISTRATIVE REPORTS
City Manager Corby Alexander reported on the incident of the two ships colliding in the Bay earlier this
afternoon, and advised Council the City is working with the neighboring communities. Mr. Alexander
also reported there were no life threating injuries as a result of the incident.
9. 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 Moser, Kaminski, Zemanek, Leonard, Engelken, Earp, Clausen,
Martin and Mayor Rigby.
Councilmember Clausen thanked everyone for attending the meeting; Councilmember Martin thanked
Chad Burke for his presentation and the Girls and Boy Scouts for attending the meeting, congratulated
Mayor Rigby and Councilmembers Leonard and Engelken on being re-elected, and reminded everyone
of the La Porte Development Corporation Board workshop meeting on April 5, 2015, at 5:30 p.m. to
establish guidelines for economic development projects and the enhancement grant program;
Councilmember Moser congratulated Mayor Rigby and Councilmembers Leonard and Engelken on
being re-elected and sent kudos to the La Porte Police Department for their work handling the traffic
during the ship collision incident earlier this afternoon; Councilmember Kaminski congratulated Mayor
Rigby and Councilmembers Leonard and Engelken on being re-elected and the Girls and Boys Scouts;
Councilmember Leonard congratulated Mayor Rigby and Councilmember Engelken and himself for
being re-elected, and commented the City is a great community to live in; Councilmembers Engelken
and Earp congratulated Mayor Rigby and Councilmembers Engelken and Leonard for being re-elected,
and thanked everyone for attending the meeting; and Mayor Rigby congratulated Councilmembers
th
Leonard and Engelken on being re-elected, thanked George Watkins for his work organizing the 4 of
July Parade, which continues to grow, commented he attended the Boys Baseball Opening Day, and
reminded Councilmembers to pick up evaluation forms for Judge Denise Mitrano.
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10. EXECUTIVE SESSION
The City reserves the right to meet in closed 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, including, but not limited to, the following:
Texas Government Code, Section 551.072
For the purpose of deliberating the purpose of the
purchase, exchange, lease or value of real property: Klein Retreat property and former Happy Barbour
property.
City Council recessed the regular Council meeting to convene an executive session at 6:29 p.m. to
deliberate the purchase, exchange, lease or value of real property: Klein Retreat property and former
Happy Barbour property.
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March 9, 2015, Council Meeting Minutes
11. RECONVENE
into regular session and consider action, if any on item(s) discussed in executive
session.
Council reconvened into the regular Council meeting at 7:21 p.m.
Councilmember Engelken moved to direct City Manager to move forward with a negotiations.
MOTION PASSED.
Councilmember Leonard seconded.
Ayes: Mayor Rigby, Councilmembers Moser, Leonard, Martin, Clausen,
Kaminski, Engelken and Earp
Nays: None
Absent: Councilmember Zemanek
12.ADJOURN
There being no further business, Councilmember Engelken moved to adjourn the meeting.
MOTION PASSED.
Councilmember Leonard seconded.
Ayes: Mayor Rigby, Councilmembers Moser, Leonard, Martin, Clausen,
Kaminski, Engelken and Earp
Nays: None
Absent: Councilmember Zemanek
The meeting was adjourned at 7:21 p.m.
_______________________________
Patrice Fogarty, City Secretary
Passed and approved on March 23, 2015.
________________________________
Mayor Louis R. Rigby
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: March 23, 2015
Source of Funds: ____N/A________
Requested By: _Corby D. Alexander______
Account Number: _______________
Department: __Administration ____________
Amount Budgeted: ______________
Report: _ X_ Resolution: ____Ordinance: __
Amount Requested:
Budgeted Item: YES NO
Exhibits:
1.Grant Agreement with Harris County
2.Proposed School House Schematic
SUMMARY & RECOMMENDATION
In July of 2014, the City of La Porte made application to the Harris County to acquire a grant to fund
the restoration of the building that housed the original La Porte ISD Colored School. The grant
application was successful, and the City of La Porte has been awarded $589,160 for this project. The
grant does come with a match requirement of $143,000. Council has previously appropriated
$150,000 in the Hotel Motel Tax Fund for the project that can be used to meet match requirements.
___________________________________________________________________________
Action Required of Council:
Consider and or approve Community Development Block Grant Agreement with Harris County
in the amount of $589,160.
Approved for City Council Agenda:
___________________________________ ______________________
Corby D. Alexander, City Manager Date
REQUEST FOR CITY COUNCIL AGENDA ITEM
Budget
Agenda Date Requested: 03-23-15
Source of Funds:
Requested By: Kenith Adcox
Account Number:
Department: Police
Amount Budgeted:
Report: Resolution: Ordinance: XXX
Amount Requested:
Exhibit: Ordinance, Extension of Interlocal Agreement
Budgeted Item:YESNO
Exhibit: Contract between City and LPISD (Ex. A to Ordinance)
SUMMARY & RECOMMENDATION
At the conclusion of the 2014-2015 school year, the current Police School Resource/DARE Officers
contract between the City and La Porte ISD will end. The contract, however, provides for a two-year
extension; and the La Porte ISD has agreed to the exercise of this option. The extension agreement
includes provisions for annual cost increases based on the standard Consumer Price Index.
City staff recommends extending the agreement with La Porte ISD for the provision of Police School
Resource/DARE Officers.
Action Required by Council:
Consider approval or other action of an Ordinance to renew an Interlocal Agreement between the
City of La Porte and the La Porte Independent School District for the provision of Police School
Resource/DARE Officers.
Approved for City Council Agenda
Corby Alexander, City Manager Date
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
March 23, 2015March 23, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Kenith Adcox Kenith Adcox Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Police Police
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Resolution1. Resolution
2. Grant Requirements & Application2. Grant Requirements & Application
3. Equipment Quote3. Equipment Quote
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
Staff has prepared a state Justice Assistance Grant (JAG) application for the acquisition of fifty (50) body Staff has prepared a state Justice Assistance Grant (JAG) application for
the acquisition of fifty (50) body
cameras, a server and UPS, and miscellaneous ancillary items to support the cameras. This project will support cameras, a server and UPS, and miscellaneous ancillary items to support
the cameras. This project will support
body cameras to be fitted to each uniformed patrol officer to visually and audibly document his/her actions and body cameras to be fitted to each uniformed patrol officer to visually
and audibly document his/her actions and
surroundings while on duty in various types of encounters, to include arrests, uses of force, and other such events. surroundings while on duty in various types of encounters, to include
arrests, uses of force, and other such events.
The grant is competitive in nature and is being offered through the Criminal Justice Division of the GovernorThe grant is competitive in nature and is being offered through the Criminal
Justice Division of the Governors
Office. As part of the grant application process, a Resolution is required designating the City Manager as the Office. As part of the grant application process, a Resolution is required
designating the City Manager as the
authorized official to sign grant documents and accept the grant if awarded. authorized official to sign grant documents and accept the grant if awarded.
The total cost of the acquisition would be approximately $83,330. The JAG grant would pay for ½ of the costs, or The total cost of the acquisition would be approximately $83,330. The
JAG grant would pay for ½ of the costs, or
$41,665. The City of La Porte would have to provide a 50 percent match of $41,665. To this end, the Police $41,665. The City of La Porte would have to provide a 50 percent match of
$41,665. To this end, the Police
Department has also made a formal request for funding to the Harris County District AttorneyDepartment has also made a formal request for funding to the Harris County District AttorneyDepartment
has also made a formal request for funding to the Harris County District AttorneyDepartment has also made a formal request for funding to the Harris County District Attorneys Office
(DA), s Office (DA), s Office (DA), s Office (DA),
asking that the DA provide funds to cover the required match. Should the JAG grant be awarded and the District asking that the DA provide funds to cover the required match. Should
the JAG grant be awarded and the District
Attorney deny the request for additional funding, the City would need to include the required matching funds in its Attorney deny the request for additional funding, the City would need
to include the required matching funds in its
2015-2016 general fund budget should it wish to accept the grant. 2016 general fund budget should it wish to accept the grant.
Action Required of Council:Action Required of Council:
Consider approval or other action to authorize the Mayor to sign a Resolution designating the City Manager as the Consider approval or other action to authorize the Mayor to sign a Resolution
designating the City Manager as the
designated grant official and approving the grant application for the Body Cameras Acquisition Project through the designated grant official and approving the grant application for the
Body Cameras Acquisition Project through the
Criminal Justice Division, Office of the Governor, State of Texas. Criminal Justice Division, Office of the Governor, State of Texas.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
Request for Applications – Justice Assistance Grant Programs
The Criminal Justice Division (CJD) of the Governor’s Office is soliciting applications for projects that
reduce crime and improve the criminal justice system during the 2016 grant cycle.
Purpose
: The purpose of this solicitation is to reduce crime and improve the criminal justice system.
Available Funding
: Federal funds are authorized under the Edward Byrne Memorial Justice Assistance
Grant Program (JAG), 42 U.S.C. 3751(a). JAG funds are made available through a Congressional
appropriation to the United States Department of Justice. All awards are subject to the availability of
appropriated federal funds and any modifications or additional requirements that may be imposed by law.
Funding Levels
:
Minimum: $10,000
Maximum: None
Match Requirement: None
Standards
: Grantees must comply with the standards applicable to this funding source cited in the Texas
Administrative Code (1 TAC Chapter 3), and all statutes, requirements, and guidelines applicable to this
funding.
Prohibitions
: Grant funds may not be used to support the following services, activities, and costs:
1) inherently religious activities such as prayer, worship, religious instruction, or proselytization;
2) lobbying;
3) any portion of the salary of, or any other compensation for, an elected or appointed government
official;
4) non-law enforcement vehicles or equipment for government agencies that are for general agency
use;
5) weapons, ammunition, tasers, explosives or military vehicles;
6) admission fees or tickets to any amusement park, recreational activity or sporting event;
7) promotional gifts;
8) food, meals, beverages, or other refreshments;
9) membership dues for individuals;
10) any expense or service that is readily available at no cost to the grant project or that is provided by
federal, state, or local funds (i.e. supplanting);
11) fundraising;
12) construction, renovation or remodeling;
13) medical services;
14) transportation, lodging, per diem or any related costs for participants, when grant funds are used to
develop and conduct training;
15) legal services for adult offenders; and
16) any other prohibition imposed by federal, state, or local law.
Eligible Applicants
:
1) State agencies;
2) Units of local government;
3) Independent school districts;
4) Senior Universities;
5) Judicial Districts;
6) Native American tribes; and
7) Community supervision and corrections departments.
Eligibility Requirements
:
1) Projects must focus on reducing crime and improving the criminal justice system.
2) Eligible applicants must provide law enforcement, corrections, or judicial services.
3) In order for an applicant to be eligible, the county (or counties) in which the applicant is located must
have a 90% average on both adult and juvenile criminal history dispositions reported to the Texas
CJD JAG RFA Page 1 of 2 Issue Date: December 2014
Request for Applications – Justice Assistance Grant Programs
Department of Public Safety for calendar years 2009 through 2013. This requirement must be met by
August 1, 2015.
4) Eligible applicants operating a law enforcement agency must be current on reporting Part I violent
crime data to the Texas Department of Public Safety for inclusion in the annual Uniform Crime Report
(UCR) and must have been current for the three previous years.
5) Eligible applicants must have a DUNS (Data Universal Numbering System) number assigned to its
agency (to request a DUNS number, go to http://fedgov.dnb.com/webform/displayHomePage.do).
6) Eligible applicants must be registered in the federal System for Award Management (SAM) database
located at https://www.sam.gov/ and maintain an active registration throughout the grant period.
Project Period
: Grant-funded projects must begin on or after October 1, 2015, and expire on or before
September 30, 2016. Grant-funded equipment only projects are generally awarded for a six month grant
period. CJD will consider any other proposed changes to the start or end dates on a case-by-case basis.
Application Process
: Applicants must access CJD’s grant management website at
https://eGrants.governor.state.tx.us to register and apply for funding.
Preferences
: Preference will be given to programs addressing one or more of the following areas which
are listed in order of priority:
1) Crime Data – Enhancements to records management systems to allow local law enforcement to
contribute appropriate data: a) to the National Data Exchange (N-DEx) through the Texas Data
Exchange (TDEx) application hosted by the Texas Department of Public Safety (DPS), or b) to the
National Incident-Based Reporting System (NIBRS) through the Uniform Crime Reporting section at
DPS. (NOTE: Units of local government providing law enforcement services are encouraged to take
advantage of funding under this priority. It is anticipated that NIBRS reporting will become mandatory
for larger jurisdictions.);
2) Mental Health – Specialized training to increase the number of mental health officers and the ability of
law enforcement to work with individuals diagnosed with mental illness;
3) Trafficking – Projects that disrupt drug and human trafficking including areas along and near major
state corridors;
4) System Improvements – Projects that promote the efficiency and effectiveness of law enforcement
agencies and prosecutor offices; and
5) Innovative or Evidence Based Programs – Projects that reduce crime and violence in areas with high
crime rates or organized criminal activity.
Closing Date for Receipt of Applications
: All applications must be certified via CJD’s grant
management website on or before February 27, 2015.
Selection Process
:
1) For eligible local and regional projects:
a) Applicants are responsible for contacting their applicable regional council of governments (COG)
regarding their application. Each of Texas’ 24 COG’s holds its own application workshops and
facilitates application prioritization for certain programs within its region.
b) Applications will be forwarded by CJD to the appropriate COG.
c) The COG’s criminal justice advisory committee will prioritize all eligible applications based on
state priorities, identified community priorities, cost and program effectiveness.
d) CJD will accept priority listings that are approved by the COG’s executive committee.
e) CJD will make all final funding decisions based on eligibility, approved COG priorities,
reasonableness of the project, availability of funding, and cost-effectiveness.
2) For state discretionary projects, applications will be reviewed by CJD staff members or a review
group selected by the executive director. CJD will make all final funding decisions based on eligibility,
reasonableness, availability of funding, and cost-effectiveness.
Contact Information
: If additional information is needed, contact the eGrants help desk at
eGrants@governor.state.tx.us or (512) 463-1919.
CJD JAG RFA Page 2 of 2 Issue Date: December 2014
CityofLaPorteApplication
/wEPDwUKLTkzE7147C19
O
Agency Name:
City of La Porte Police Department
Grant/App:Start Date:End Date:
2894101 10/1/2015 9/30/2016
Project Title:
Police Officer Body Camera Project
Status:
Pending OOG Review
Eligibility Information
Your organization's Texas Payee/Taxpayer ID Number:
17460015526008
Application Eligibility Certify:
Created on:2/5/2015 9:54:55 AM By: Ron Parker
Profile Information
Applicant Agency Name:
City of La Porte Police Department
Project Title:
Police Officer Body Camera Project
Division or Unit to Administer the Project:
Police Department Patrol Operations
Address Line 1:
La Porte Police Department
Address Line 2:
3001 North 23rd Street
City/State/Zip:
La Porte Texas 77571-3185
Start Date:
10/1/2015
End Date:
9/30/2016
Regional Council of Governments(COG) within the Project's Impact Area:
Houston-Galveston
Area Council
Headquarter County:
Harris
Counties within Project's Impact Area:
Harris
Grant Officials:
Authorized Official
User Name:
Corby Alexander
Email:
alexanderc@laportetx.gov
Address 1:
604 West Fairmont Parkway
Address 1:
City:
La Porte, Texas 77571
Phone:
281-471-5020 Other Phone:
Fax:
281-842-1259
Title:
Mr.
Salutation:
Mr.
Project Director
User Name:
Ron Parker
Email:
parkerr@laportetx.gov
Address 1:
La Porte Police Department
Address 1:
3001 23rd Street
City:
La Porte, Texas 77571
Phone:
281-471-3810 Other Phone: 281-898-0272
Fax:
281-470-1590
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Title:
Mr.
Salutation:
Deputy Chief
Financial Official
User Name:
Gay Collins
Email:
collinsg@laportetx.gov
Address 1:
604 W Fairmont Pkwy
Address 1:
City:
La Porte, Texas 77571
Phone:
281-470-5045 Other Phone:
Fax:
Title:
Ms.
Salutation:
Ms.
Grant Writer
User Name:
Ron Parker
Email:
parkerr@laportetx.gov
Address 1:
La Porte Police Department
Address 1:
3001 23rd Street
City:
La Porte, Texas 77571
Phone:
281-471-3810 Other Phone: 281-898-0272
Fax:
281-470-1590
Title:
Mr.
Salutation:
Deputy Chief
Problem Statement:
Please provide a detailed account in the Problem Statement section of the existing issues your project
will target.
Enter your problem statement:
Recent events in the media and across the nation related to uses of force, arrests, etc. by police have
caught the attention of many. In some situations, the outcome was the version of events by police versus
the versions of citizen(s). Many, including the US Attorney General and others in positions of influence,
have opined the use of body cameras would go far in addressing many of the questions in these types of
situations. Just recently, two major law enforcement agencies in Harris County (the Harris County
Sheriff and Houston Police), were awarded special funding by the Harris County District Attorney for
the purchase and acquisition of body cameras for police personnel in their organizations. However, no
other agencies were addressed. For a relatively small agency, such as ours, such a purchase is significant
and is not currently budgeted. Additionally, such a purchase would represent a significant strain on our
current financial resources. Therefore, our agency is making application for grant funding to address this
concern. With such funding, we would be able to acquire body cameras for our uniformed patrol
personnel, to include one for each field officer, related software and a server to store relevant digital data
on as generated from these devices. In addition, the City of La Porte is offering and prepared to match
the requested funding amount (funding request=$41,665, match by our agency=$41,665; total
budget=$83,330). The acquisition of such equipment would enable our patrol personnel to visually and
audibly record our contacts with citizens. This would include scenarios such as citizens contacts, traffic
stops, detainments, arrests, crimes in progress, active investigations as they occur, uses of force, and
others. Such recordings would assist significantly in establishing credibility in criminal investigations,
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prosecutions, internal affairs investigations, media inquiries, citizen complaints, and many other
scenarios where all are attempting to resolve what occurred in situations. Our agency is not able to
acquire this equipment in its entirety for the foreseeable future without such grant funding. Yet, we are
of the opinion the equipment we seek in this grant request is viable and desirable given the potential
impact to our police and our citizens.
Supporting Data:
Provide as much supporting data, to include baseline statistics and the sources of your data, which are
pertinent to where the grant project is located and/or targeted. Do not use statewide data for a local
problem or national data for a statewide problem.
Enter your supporting data:
Officials in the federal government, state government, local district attorney, prosecutors, defense
attorneys, media, citizens, activists, and others all agree on one aspect of this topic. The presence of
body cameras on police officers would go far in addressing and resolving concerns in many
police/citizen contacts, particularly related to complaints raised in such contacts, uses of force, and other
situations. While a few major law enforcement agencies in our county were recently awarded such
funding by the District Attorney, many agencies, to include ours, were not considered for such funding.
With our agency responding to almost 40,000 calls for service annually, making over 2,000 arrests per
year, with a residential population of approximately 35,000, and perhaps triple that number in a daytime
working/transient population, the need for such equipment is important since we achieve a significant
number of police/citizen contacts on a regular basis.
Community Plan:
For projects that have a local or regional impact target area, provide information regarding the
community plan need(s) that your project will address.
Enter your community planning needs:
In the current Harris County Community Plan, Introduction, page 5, "the growth rate of Harris County
has strained local city and county budgets to their limits. Economic slumps, business down-sizing, and
reduction in federal budgets have translated into hardships for the community, schools, and families.
The county also faces increasing problems of violence and drug-related crimes with insufficient
resources to adequately address these needs." As mentioned on page 44 of the Harris County
Community Plan, " Finally, the Houston-Galveston Area Council covers thirteen counties in which over
200 criminal justice agencies service about a quarter of the state’s population. As populations increase
and with the greater mobility of people in today’s society, the need for inter-agency cooperation in
dealing with crime has become increasingly critical. However, such cooperation calls for a degree of
sophistication and coordination that far exceeds many agencies’ manpower and equipment. Thus a
resource gap exists in the ability of these agencies to maximize the efficiency and utility of existing
resources." Our agency suffers from these same constraints. Funding opportunities at all levels have
severely restricted our ability to fund several critical resources that are needed. This particular
application would go far in addressing improvement in our law enforcement capability to serve our
citizens. It would also address improvements to efficiency, accuracy and credibility in the criminal
justice system, as mentioned in the county plan.
Goal Statement:
Provide a brief description of the overall goals and objectives for this project.
Enter a description for the overall goals and objectives:
This project is designed to address the concerns as outlined in the Harris County Community Plan
above. It would also address the grant's primary mission to "improve criminal justice systems and
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prevent crime". Also, this application addresses a grant priority of "making improvements to efficiency,
accuracy and credibility", within the purpose area of law enforcement. Simply, our goal is to equip all of
our uniformed patrol personnel with a body camera, temporarily affixed to their uniform while on duty
and in contact with citizens, and to also acquire the supporting software, server and ancillary items to
effectively and efficiently run the system. Having achieved this will address the primary mission and
priority of this particular grant, as well as addressing the areas mentioned already in the Harris
Community Plan. It will also improve efficiency in law enforcement and the criminal justice system to
which we contribute, enhance credibility, provide overall improvement in our system, and improve
police/community relations. Such acquisition would address and resolve concerns related to credible and
accurate investigations, and prosecutions, as well as incidents related to complaints and uses of force.
Cooperative Working Agreement (CWA):
When a grantee intends to carry out a grant project through cooperating or participating with one or
more outside organizations, the grantee must obtain authorized approval signatures on the cooperative
working agreement (CWA) from each participating organization. Grantees must maintain on file a
signed copy of all cooperative working agreements, and they must submit to CJD a list of each
CWA
participating organization and a description of the purpose of each . Cooperative working
agreements do not involve an exchange of funds.
For this project, provide the name of the participating organization(s) and a brief description of the
CWA(s)
purpose(s) for the . You should only provide information here that this project's successful
operation is contingent on for the named service or participation from the outside organization.
Sample CWA
Note: A is available here for your convenience.
Enter your cooperating working agreement(s):
NA
Continuation Projects:
For continuation projects only, if your current or previous year's project is NOT on schedule in
accomplishing the stated objectives, briefly describe the major obstacles preventing your organization
from successfully reaching the project objectives as stated within your previous grant application. (Data
may be calculated on a pro-rated basis depending on how long the current or previous year's project has
been operating.)
Enter your current grant's progress:
NA
Project Summary:
Briefly summarize the entire application, including the project's problem statement, supporting data,
goal, target group, activities, and objectives. Be sure that the summary is easy to understand by a person
not familiar with your project and that you are confident and comfortable with the information if it were
to be released under a public information request.
Enter your summary statement for this project:
Recent events, not only locally, but at the state and national levels, have caused concern in the area of
police/community relations. This is particularly true in incidents involving use of force in contacts
between police and citizens. Influential persons and organizations at all levels, both private and public
sector, have voiced concern, especially regarding the resulting public unrest and distrust of police in
certain situations. This has been to the extent that many have strongly suggested that all law
enforcement acquire and utilize body cameras on their law enforcement personnel. While many law
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enforcement administrators agree this would potentially offer some improvement and help in
establishing more trust, credibility and efficiency in the law enforcement system and in criminal justice,
most agencies, including our own, are unable to provide adequate funding for such an endeavor. As
such, this organization is making application for grant funding to address this concern. We are
projecting a budget of $83,330 to fund this project, with a request for grant monies in the amount of
$41,665. This agency is prepared to match that amount of $41,665 to fund the project. This will provide
for the acquisition of a body camera for each uniformed patrol officer in the Patrol Operations Division,
the primary units and officers who have daily contact with citizens and who are most at risk of having to
project use of force in violent encounters, as well as most susceptible to citizen complaints, making
arrests, performing investigations at their onset, etc. In addition to the funding of body cameras, the
funding would also enable us to acquire supporting software and a server, as well as any required
ancillary elements, to support the entire project. The target groups involved in this project would include
the following: a. our uniformed patrol officers; b. the citizens we come in to contact with through calls
for service, investigations and inquiries, arrests, etc.; The activities would include: the purchase,
installation, issuance and utilization of body cameras to our personnel in support of their daily mission
of law enforcement operations. The objectives would include: a. the recording and capturing of events as
they unfold during encounters between police and citizens; b. the use of such recordings to address
complaints, administrative reviews, internal affairs investigations, criminal investigations, uses of force,
and other such related issues; c. the improvement in resolution of complaints, concerns, investigations
and prosecutions; d. improvement in relations between police and citizens in any concerns that might
arise through these types of incidents.
Selected Project Activities:
ACTIVITY PERCENTAGE: DESCRIPTION
The acquisition of body cameras for police officers in the field will
enhance the valuable of video and audio data as events unfold in
Technology 100.00 encounters between police and citizens, to include situations such as
arrests, uses of force, gathering of field evidence, citizen complaints,
prosecutions, and other similar situations.
Geographic Area:
The geographic area will include the legal city jurisdictional boundaries of the City of La Porte. The city
is located along the Houston Ship Channel in east Harris County, and is adjacent to two major shipping
ports (Barbours Cut Terminal and Bay Port Terminal), one of which is home to a cruise line. There are
also a number of petro chemical manufacturers and industries in the area, several major highways (one
of which is a major evacuation route for Galveston County to the south), and the state park for the USS
Texas battleship and San Jacinto Monument.
Target Audience:
Target audience will be those citizens we come in to contact with on police calls for service and as a
result of our normal enforcement duties. Some of these contacts will result in conflict, with some ending
in use of force, arrest, etc. It is these types of incidents where the equipment funding through this grant
will assist significantly in mitigating what actually occurred in those types of situations. This will result
in greater efficiency, effectiveness and credibility in investigations, complaints and prosecutions.
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Gender:
The equipment funded through this grant will address situations involving both genders, male and
female.
Ages:
The equipment funded through this grant will address persons of all ages.
Special Characteristics:
Special characteristics this project will address will be digital visual and audio data and the capturing of
events as they unfold, while the body camera is attached to the officer. This will be extremely helpful in
events related to arrests, uses of force, gathering of evidence, prosecutions, citizens complaints, and
similar situations in encounters and interactions between police and citizens.
Objective Output Measures
OUTPUT MEASURE CURRENT DATA TARGET LEVEL
Number of NEW data systems to be developed. 0 1
Number of existing data systems enhanced with grant funds.0 0
Number of subscriptions to data sharing systems. 50 50
Objective Outcome Measures
CURRENT TARGET
OUTCOME MEASURE
DATA LEVEL
Number of personnel with access to improved data / information
0 50
sharing systems.
Number of agencies who benefitted from improvements to the
0 1
new or enhanced data systems.
Budget Details Information
Budget Information by Budget Line Item:
SUBCASHIN-KINDUNIT/
CATEGORYDESCRIPTION CJDGPI TOTAL
CATEGORYMATCHMATCH%
Body surveillance
Specialtycameras to be
Camera and mounted to and
Accessories carried on
Equipment (e.g., video uniformed patrol $41,665.00$41,665.00$0.00$0.00 $83,330.001
observation, officers' uniforms,
pole cams, and supporting
towers, etc.) server and
software.
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Source of Match Information
Detail Source of Match/GPI:
DESCRIPTION MATCH TYPE AMOUNT
Department Budget for La Porte PD, 2015-2016 budget Cash Match $41,665.00
Summary Source of Match/GPI:
Total Report Cash Match In KindGPI Federal Share GPI State Share
$41,665.00 $41,665.00 $0.00$0.00 $0.00
Budget Summary Information
Budget Summary Information by Budget Category:
CATEGORY CJD CASH MATCHIN-KIND MATCH GPI TOTAL
Equipment $41,665.00 $41,665.00$0.00 $0.00 $83,330.00
Budget Grand Total Information:
CJD CASH MATCHIN-KIND MATCHGPI TOTAL
$41,665.00 $41,665.00$0.00$0.00 $83,330.00
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Quotation Expiration: 11-01-2015
Terms: Net 30 Days
FOB Point: Destination
11375 W. Sam Houston Parkway South #800
Houston, TX 77031
P. 281-925-0488 | F. 281-925-0535
QT Version 20140409
La Porte Police Department (La Porte, Texas)
Prepared for:
Quote #
Date
Address
3001 North 23rd Street
584615-1
3/11/2015
City, State
Prepared by:
La Porte, TX 77572
Contact
Sam Inthirath (832 584-3360)
Lieutenant Daeumer
QuantityTotal
BACK OFFICE STORAGE AND ARCHIVALList PriceQuoted
SERVER$ 21,026.60$ 18,284.001$ 18,284.00
BSVR-01
UPS$ 1,892.90$ 1,646.001$ 1,646.00
BUPS-01
QuantityTotal
COBAN VIEVU BODY WORN CAMERAList PriceQuoted
VIEVU LE3 Body Worn Camera Package
VIEVU-03
Includes: LE3 Camera, 110v Wall Adapter, USB/RS232 Cable, Two Spring Clips and Pin
$ 899.00$ 855.0050$ 42,750.00
Clip, 90 day factory warranty
COBAN VIEVU DVMS Secured Interface -First Year Software Maintenance and Technical
WLIC-221
$ 105.00$ 90.0050$ 4,500.00
Support (per device)
VIEVU 21 month Extended Warranty (available only if VIEVU unit is purchased from COBAN)
WMAIN-16
$ 330.00$ 295.0050$ 14,750.00
List PriceQuoted QuantityTotal
SHIPPING
Shipping - In-Car Equipment (EDGE, M7 MDC, M7 VMDC, ALPR)
LFEE-050$ 50.00$ -
Shipping - Back Office Hardware (Server, Auto DVD, Interview, Jail) Each
LFEE-055$ 150.00$ 150.001$ 150.00
Shipping - Miscellaneous (VIEVU, Spares, Options)
LFEE-053$ 25.00$ 25.0050$ 1,250.00
Subtotal$ 83,330.00
Additional Discount (s)
Taxes (if applicable)
GRAND TOTAL$ 83,330.00
Terms /Conditions / Assumptions:
1. If required, bid bond, performance bond, permits and fees will be at additional costs.
2. A tax exempt number will be provided upon acceptance of this proposal.
TITAN M7 Mounting Hardware Note: (as applicable) COBAN does not provide mounting equipment below the keyboard. Agency will need to use its existing or procure
pedestal/arm to support the monitor and keyboard mount from COBAN or third party.
Wireless Services Note: All prices may change depending on outcome of site survey.
A. All electrical, conduit, pipe stubs, cores, raceways, chases, sleeves, plywood, dumpsters, etc. are to be provided and installed by others.
B. All work to be done during the normal workday.
C. All cable to be plenum rated.
D. Cross-connects and patch cables are not part of this price.
E. Electronics for data to be provided and installed by others.
F. Labor is guaranteed to be as specified, and the above work to be performed in accordance with drawings and specifications submitted for above work and
completed in a substantial workmanlike manner.
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3/11/2015Page 1
Quotation Expiration: 11-01-2015
Terms: Net 30 Days
FOB Point: Destination
11375 W. Sam Houston Parkway South #800
Houston, TX 77031
P. 281-925-0488 | F. 281-925-0535
QT Version 20140409
La Porte Police Department (La Porte, Texas)
Prepared for:
Quote #
Date
Address
3001 North 23rd Street
584615-1
3/11/2015
City, State
Prepared by:
La Porte, TX 77572
Contact
Sam Inthirath (832 584-3360)
Lieutenant Daeumer
3/11/2015Page 2
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
March 23, 2015March 23, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Cherell Daeumer Cherell Daeumer Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Finance Finance
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Interlocal Purchasing Agreement1. Interlocal Purchasing Agreement
2. Amended Interlocal Purchasing Agreement2. Amended Interlocal Purchasing Agreement
3. Notice to add Party Form 3. Notice to add Party Form
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
Per Chapter 271Per Chapter 271--102 of the Texas Local Government Code, a local government may participate in a cooperative 102 of the Texas Local Government Code, a local government
may participate in a cooperative
purchasing program with another local government. Attached is an Interlocal Agreement between the City of purchasing program with another local government. Attached is an Interlocal
Agreement between the City of
Houston and METRO. This agreement was amended to allow local governments or political subdivisions of the Houston and METRO. This agreement was amended to allow local governments or
political subdivisions of the
State of Texas to be added to the original agreement. State of Texas to be added to the original agreement.
Staff is requesting approval to enter into the interlocal purchasing agreement between the City of Houston and Staff is requesting approval to enter into the interlocal purchasing agreement
between the City of Houston and
METRO as an additional party. This will allow the City of La Porte to purchase materials and services using METRO as an additional party. This will allow the City of La Porte to purchase
materials and services using
contracts between the City of Houston and METRO or other added local governments and applicable contracted contracts between the City of Houston and METRO or other added local governments
and applicable contracted
vendors. There is no cost to the City to participate. The participation in the interlocal agreement satisfies the vendors. There is no cost to the City to participate. The participation
in the interlocal agreement satisfies the
requirement of the local government to seek competitive bids for goods and services. requirement of the local government to seek competitive bids for goods and services.
Action Required of Council:Action Required of Council:
Consider approval or other action to join the interlocal agreement between the City of Houston and METRO as an Consider approval or other action to join the interlocal agreement between
the City of Houston and METRO as an
additional party. additional party.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
Notice to Add Party to
Interlocal Purchasing Agreement, as amended
Dated October 27, 2011
Contract No. C74231
.
1Pursuant to Section 17 of the Original Agreement between the City and METRO, City of La Porte
desires to be added as a party to the Original Agreement, as may be amended from time to time,
to allow its procurement unit to purchase materials and services using contracts between all of
the parties to the Original Agreement and its applicable contracted vendors.
2.City of La Porterepresents that it has the authority to enter into and become a party to the
Original Agreement, as amended.
3.City of La Porteshall comply with all of the terms and conditions of the Original Agreement, as
amended.
4.The designated representative for City of La Porteshall be Cherell Daeumer, Purchasing
Manager.
5.Pursuant to Section 13 of the Original Agreement, all notices for City of La Porteshall begiven to:
Cherell Daeumer
Purchasing Manager
City of La Porte
604 W. Fairmont Parkway
La Porte, Texas 77571
This notice becomes effective uponMarch 23, 2015at which time City of La Portemay begin purchasing
materialsand services under the Original Agreement, as amended.
CITY OF HOUSTON
RESPONSIBLE OFFICER
By: _____________________________________________
Printed Name: Calvin D. Wells
METROPOLITAN TRANSIT AUTHORITY OF HARRIS COUNTY, TEXAS
RESPONSIBLE OFFICER
By: _____________________________________________
Printed Name:________________
CITY OF LA PORTE
By: _____________________________________________
Printed Name:CherellDaeumer,Purchasing Manager
1of 1
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date RequestedMarch 23, 2015Appropriation:
:
Requested By:Eric Ensey Source of Funds: N/A
Department: Planning Account Number: N/A
Report: __ __Resolution: _____Ordinance: _ ___Amount Budgeted: N/A
Exhibits: Amount Requested: N/A
Budgeted Item: N/A
_____________________________________________________________________________________
SUMMARY & RECOMMENDATION
The request is for consideration of an ordinance amending the Future Land Use Map in
response to the proposed zone change application #15-92000001. This request would amend the
Future Land Use Map for a 1.0 acre portion of a 2.14 acre tract of land described as Tracts 262
and 262A, La Porte Outlots, situated in the Enoch Brinson Survey, A-5,City of La Porte, Harris County,
Texas, from .
The City split of land
uses: Large Lot Residential on the western portion of the site and Commercial on the eastern portion
of the site along Sens Road. In order to rezone the property, the Land Use Map would need to
be amended to identify the entire site as Commercial use.
The Planning and Zoning Commission conducted a public hearing at the February 19, 2015, meeting
concerning this request to amend the Future Land Use Map. The Commission voted
unanimously to recommend denial of the proposed amendment to the Future Land Use Map.
Section 106-171 of the Code of Ordinances indicates that the affirmative vote of at least ¾ of
the City Council (which is 7 members) is required to overrule a recommendation of the Planning and
Zoning Commission.
Action Required by Council:
1.Conduct public hearing.
2.Consider approval or other action on a recommendation by the Planning and Zoning Commission
to deny an ordinance amending the Future Land Use Map component of the Comprehensive Plan.
Approved for City Council Agenda
___________________________________ _______________________
Corby D. Alexander, City Manager Date
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date RequestedMarch 23, 2015Appropriation:
:
Requested By:Eric Ensey Source of Funds: N/A
Department: Planning Account Number: N/A
Report: __ __Resolution: _____Ordinance: _X___Amount Budgeted: N/A
Exhibits: Amount Requested: N/A
Ordinance
P&Z Decision Letter Budgeted Item: N/A
_____________________________________________________________________________________
SUMMARY & RECOMMENDATION
The request is for consideration of an ordinance amending the Future Land Use Map in
response to the proposed zone change application #15-92000001. This request would amend the
Future Land Use Map for a 1.0 acre portion of a 2.14 acre tract of land described as Tracts 262
and 262A, La Porte Outlots, situated in the Enoch Brinson Survey, A-5,City of La Porte, Harris County,
Texas, from .
The City split of land
uses: Large Lot Residential on the western portion of the site and Commercial on the eastern portion
of the site along Sens Road. In order to rezone the property, the Land Use Map would need to
be amended to identify the entire site as Commercial use.
The Planning and Zoning Commission conducted a public hearing at the February 19, 2015, meeting
concerning this request to amend the Future Land Use Map. The Commission voted
unanimously to recommend denial of the proposed amendment to the Future Land Use Map.
Section 106-171 of the Code of Ordinances indicates that the affirmative vote of at least ¾ of
the City Council (which is 7 members) is required to overrule a recommendation of the Planning and
Zoning Commission.
Action Required by Council:
1.Conduct public hearing.
2.Consider approval or other action on a recommendation by the Planning and Zoning Commission
to deny an ordinance amending the Future Land Use Map component of the Comprehensive Plan.
Approved for City Council Agenda
___________________________________ _______________________
Corby D. Alexander, City Manager Date
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
March 23, 2015March 23, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Eric Ensey Eric Ensey Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Planning & Development Planning & Development
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The applicants (Jose Marroquin & Martina Guadalupe Marroquin, on behalf of the property owner Dennis The applicants (Jose Marroquin & Martina Guadalupe Marroquin, on behalf of the property
owner Dennis
Noseworthy) are seeking to rezone a 1.0 acre portion of a 2.14 acre tract of land described as Tracts 262 and Noseworthy) are seeking to rezone a 1.0 acre portion of a 2.14 acre tract
of land described as Tracts 262 and
262A, La Porte Outlots, situated in the Enoch Brinson Survey, A262A, La Porte Outlots, situated in the Enoch Brinson Survey, A--5, City of La Porte, Harris County, Texas, from 5, City
of La Porte, Harris County, Texas, from
LL, Large Lot Residential, to GC, General Commercial.LL, Large Lot Residential, to GC, General Commercial.
The subject site is splitThe subject site is split--zoned, with a portion of the site zoned CG along Sens Road, and a portion zoned LL. The zoned, with a portion of the site zoned CG
along Sens Road, and a portion zoned LL. The
portion of the site proposed to be rezoned is approximately 1.0 acres out of a larger 2.14 acre parcel that is portion of the site proposed to be rezoned is approximately 1.0 acres out
of a larger 2.14 acre parcel that is
currently vacant. Should the rezoning be approved, the applicant is proposing construction of an automobile and currently vacant. Should the rezoning be approved, the applicant is proposing
construction of an automobile and
truck repair facility.truck repair facility.
The site is currently identified in the Future Land Use Map with a split The site is currently identified in the Future Land Use Map with a split The site is currently identified in
the Future Land Use Map with a split The site is currently identified in the Future Land Use Map with a split----land use designation with Large Lot land use designation with Large
Lot land use designation with Large Lot land use designation with Large Lot
Residential on the western portion of the site and Commercial on the eastern portion of the site along Sens Road. Residential on the western portion of the site and Commercial on the
eastern portion of the site along Sens Road.
As a result, in order to rezone the property the CityAs a result, in order to rezone the property the Citys Future Land Use Map will need to be amended to identify s Future Land Use
Map will need to be amended to identify
this site as Commercial.this site as Commercial.
The Planning and Zoning Commission conducted a public hearing at the February 19, 2015, meeting concerning The Planning and Zoning Commission conducted a public hearing at the February
19, 2015, meeting concerning
this rezoning request. There were two public hearing notice responses received by the City in opposition to the this rezoning request. There were two public hearing notice responses
received by the City in opposition to the
request expressing concern with the proposal. The Commission voted unanimously to recommend denial of the request expressing concern with the proposal. The Commission voted unanimously
to recommend denial of the
proposed rezoning. Section 106proposed rezoning. Section 106--171 of the City171 of the Citys Code of Ordinances indicates that the affirmative vote of at least s Code of Ordinances
indicates that the affirmative vote of at least
3/4 of the City Council (which is 7 Council members) is required to overrule a recommendation of the Planning 3/4 of the City Council (which is 7 Council members) is required to overrule
a recommendation of the Planning
and Zoning Commission.and Zoning Commission.
Action Required of Council:Action Required of Council:
1.Conduct public hearing.Conduct public hearing.
2.Consider approval or other action on a recommendation by the Planning and Zoning Commission to deny Consider approval or other action on a recommendation by the Planning and Zoning
Commission to deny
Rezone Request #15Rezone Request #15--92000001, which is an ordinance amending Chapter 106 92000001, which is an ordinance amending Chapter 106 ZoningZoningof the Code of of the
Code of
Ordinances of the City of La Porte by changing the zoning classification from split Large Lot Residential Ordinances of the City of La Porte by changing the zoning classification from
split Large Lot Residential
(LL) and General Commercial (GC) to exclusively General Commercial (GC), for an approximately 1 acre (LL) and General Commercial (GC) to exclusively General Commercial (GC), for an approximately
1 acre
tract of land herein described.tract of land herein described.
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
March 23, 2015March 23, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Eric Ensey Eric Ensey Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Planning & Development Planning & Development
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Ordinance1. Ordinance
2. P&Z Recommendation Letter2. P&Z Recommendation Letter
3. Zone Change Application3. Zone Change Application
4. Area Zoning Map4. Area Zoning Map
5. Area Land Use Map5. Area Land Use Map
6. Notification Reponse Letters6. Notification Reponse Letters
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The applicants (Jose Marroquin & Martina Guadalupe Marroquin, on behalf of the property owner Dennis The applicants (Jose Marroquin & Martina Guadalupe Marroquin, on behalf of the property
owner Dennis
Noseworthy) are seeking to rezone a 1.0 acre portion of a 2.14 acre tract of land described as Tracts 262 and Noseworthy) are seeking to rezone a 1.0 acre portion of a 2.14 acre tract
of land described as Tracts 262 and
262A, La Porte Outlots, situated in the Enoch Brinson Survey, A262A, La Porte Outlots, situated in the Enoch Brinson Survey, A--5, City of La Porte, Harris County, Texas, from 5, City
of La Porte, Harris County, Texas, from
LL, Large Lot Residential, to GC, General Commercial.LL, Large Lot Residential, to GC, General Commercial.
The subject site is splitThe subject site is split--zoned, with a portion of the site zoned CG along Sens Road, and a portion zoned LL. The zoned, with a portion of the site zoned CG
along Sens Road, and a portion zoned LL. The
portion of the site proposed to be rezoned is approximately 1.0 acres out of a larger 2.14 acre parcel that is portion of the site proposed to be rezoned is approximately 1.0 acres out
of a larger 2.14 acre parcel that is
currently vacant. Should the rezoning be approved, the applicant is proposing construction of an automobile and currently vacant. Should the rezoning be approved, the applicant is proposing
construction of an automobile and
truck repair facility.truck repair facility.truck repair facility.truck repair facility.
The site is currently identified in the Future Land Use Map with a split The site is currently identified in the Future Land Use Map with a split--land use designation with Large Lot
land use designation with Large Lot
Residential on the western portion of the site and Commercial on the eastern portion of the site along Sens Road. Residential on the western portion of the site and Commercial on the
eastern portion of the site along Sens Road.
As a result, in order to rezone the property the CityAs a result, in order to rezone the property the Citys Future Land Use Map will need to be amended to identify s Future Land Use
Map will need to be amended to identify
this site as Commercial.this site as Commercial.
The Planning and Zoning Commission conducted a public hearing at the February 19, 2015, meeting concerning The Planning and Zoning Commission conducted a public hearing at the February
19, 2015, meeting concerning
this rezoning request. There were two public hearing notice responses received by the City in opposition to the this rezoning request. There were two public hearing notice responses
received by the City in opposition to the
request expressing concern with the proposal. The Commission voted unanimously to recommend denial of the request expressing concern with the proposal. The Commission voted unanimously
to recommend denial of the
proposed rezoning. Section 106proposed rezoning. Section 106--171 of the City171 of the Citys Code of Ordinances indicates that the affirmative vote of at least s Code of Ordinances
indicates that the affirmative vote of at least
3/4 of the City Council (which is 7 Council members) is required to overrule a recommendation of the Planning 3/4 of the City Council (which is 7 Council members) is required to overrule
a recommendation of the Planning
and Zoning Commission.and Zoning Commission.
Action Required of Council:Action Required of Council:
1.Conduct public hearing.Conduct public hearing.
2.Consider approval or other action on a recommendation by the Planning and Zoning Commission to deny Consider approval or other action on a recommendation by the Planning and Zoning
Commission to deny
Rezone Request #15Rezone Request #15--92000001, which is an ordinance amending Chapter 106 92000001, which is an ordinance amending Chapter 106 ZoningZoningof the Code of of the
Code of
Ordinances of the City of La Porte by changing the zoning classification from split Large Lot Residential Ordinances of the City of La Porte by changing the zoning classification from
split Large Lot Residential
(LL) and General Commercial (GC) to exclusively General Commercial (GC), for an approximately 1 acre (LL) and General Commercial (GC) to exclusively General Commercial (GC), for an approximately
1 acre
tract of land herein described.tract of land herein described.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
FIELDCREST DR
R-1
N L ST
GC
LLD
LOCATION OF
PROPERTY
BI
VIOLA
MH
IE
LOVINN
Legend
Zoning
LLD
GC
LARGE LOT RESIDENTIAL
LOW-DENSITY RESIDENTIAL
MANUFACTURED HOUSING
GENERAL COMMERCIAL
1 inch = 300 feet
BUSINESS INDUSTRIAL
N H ST
FIELDCREST DR
LDR
N L ST
PROPOSED AMENDMENT
FROM SPLIT COMMERCIAL
& LARGE LOT RESIDENTIAL
TO ALL COMMERCIAL
PI
VIOLA
LLCOM
IE
LOVINN
BI
LAND USE
LARGE LOT RESIDENTIAL
LI
LOW-DENSITY RESIDENTIAL
COMMERCIAL
BUSINESS INDUSTRIAL
LIGHT INDUSTRIAL
1 inch = 300 feet
PUBLIC / INSTITUTIONAL
N H ST
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
March 23, 2015March 23, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Eric Ensey Eric Ensey Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Planning & Development Planning & Development
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The request is for consideration of an ordinance amending the CityThe request is for consideration of an ordinance amending the Citys Future Land Use Map in response to the s Future
Land Use Map in response to the
proposed zone change application #15proposed zone change application #15--92000002. This request would amend the City92000002. This request would amend the Citys Future Land Use Map
for s Future Land Use Map for
a 6.43 acre tract of land described as Tracts 351 and 352, La Porte Outlots, situated in the Enoch Brinson Survey, a 6.43 acre tract of land described as Tracts 351 and 352, La Porte
Outlots, situated in the Enoch Brinson Survey,
A-5, City of La Porte, Harris County, Texas, from 5, City of La Porte, Harris County, Texas, from Large Lot ResidentialLarge Lot Residentialto to Light Industrial.Light Industrial.
This request was This request was
in conjunction with a zone change application by QualaWash Holdings LLC (11110 Old La Porte Road) on behalf in conjunction with a zone change application by QualaWash Holdings LLC (11110
Old La Porte Road) on behalf
of the property owner Louisiana Chemical Co. LLC (11100 La Porte Freeway) for development of the property of the property owner Louisiana Chemical Co. LLC (11100 La Porte Freeway) for
development of the property
as an additional parking lot for trailers associated with QualaWash Holdings LLC.as an additional parking lot for trailers associated with QualaWash Holdings LLC.
The City of La Porte The City of La Portes Future Land Use Map currently identifies Tracts 351 and 352 as Large Lot Residential. In s Future Land Use Map currently identifies Tracts
351 and 352 as Large Lot Residential. In
order to rezone the property, the Cityorder to rezone the property, the Citys Land Use Map would need to be amended to identify this site as Light s Land Use Map would need to be amended
to identify this site as Light
Industrial.Industrial.
The Planning and Zoning Commission conducted a public hearing at the February 19, 2015, meeting concerning The Planning and Zoning Commission conducted a public hearing at the February
19, 2015, meeting concerning
this request to amend the Citythis request to amend the Citys Future Land Use Map. The Commission voted to recommend approval of the s Future Land Use Map. The Commission voted to
recommend approval of the
proposed amendment to the Cityproposed amendment to the Citys Future Land Use Map on a vote of 5 for and 2 opposed. Section 106s Future Land Use Map on a vote of 5 for and 2 opposed.
Section 106--171 of the 171 of the
Citys Code of Ordinances indicates that the affirmative vote of at least 3/4 of the City Council (which is 7 s Code of Ordinances indicates that the affirmative vote of at least 3/4
of the City Council (which is 7
members) is required to overrule a recommendation of the Planning and Zoning Commission.members) is required to overrule a recommendation of the Planning and Zoning Commission.
Action Required of Council:Action Required of Council:
1.Conduct public hearing.Conduct public hearing.
2.Consider approval or other action of an ordinance adopting an update to the Future Land Use Map Consider approval or other action of an ordinance adopting an update to the Future Land
Use Map
component of the Comprehensive Plan, as recommended by the Planning and Zoning Commission.component of the Comprehensive Plan, as recommended by the Planning and Zoning Commission.
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
March 23, 2015March 23, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Eric Ensey Eric Ensey Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Planning & Development Planning & Development
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Ordinance1. Ordinance
2. P&Z Recommendation Letter2. P&Z Recommendation Letter
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The request is for consideration of an ordinance amending the CityThe request is for consideration of an ordinance amending the Citys Future Land Use Map in response to the s Future
Land Use Map in response to the
proposed zone change application #15proposed zone change application #15--92000002. This request would amend the City92000002. This request would amend the Citys Future Land Use Map
for s Future Land Use Map for
a 6.43 acre tract of land described as Tracts 351 and 352, La Porte Outlots, situated in the Enoch Brinson Survey, a 6.43 acre tract of land described as Tracts 351 and 352, La Porte
Outlots, situated in the Enoch Brinson Survey,
A-5, City of La Porte, Harris County, Texas, from 5, City of La Porte, Harris County, Texas, from Large Lot ResidentialLarge Lot Residentialto to Light Industrial.Light Industrial.
This request was This request was
in conjunction with a zone change application by QualaWash Holdings LLC (11110 Old La Porte Road) on behalf in conjunction with a zone change application by QualaWash Holdings LLC (11110
Old La Porte Road) on behalf
of the property owner Louisiana Chemical Co. LLC (11100 La Porte Freeway) for development of the property of the property owner Louisiana Chemical Co. LLC (11100 La Porte Freeway) for
development of the property
as an additional parking lot for trailers associated with QualaWash Holdings LLC.as an additional parking lot for trailers associated with QualaWash Holdings LLC.
The City of La Porte The City of La Portes Future Land Use Map currently identifies Tracts 351 and 352 as Large Lot Residential. In s Future Land Use Map currently identifies Tracts
351 and 352 as Large Lot Residential. In
order to rezone the property, the Cityorder to rezone the property, the Citys Land Use Map would need to be amended to identify this site as Light s Land Use Map would need to be amended
to identify this site as Light
Industrial.Industrial.
The Planning and Zoning Commission conducted a public hearing at the February 19, 2015, meeting concerning The Planning and Zoning Commission conducted a public hearing at the February
19, 2015, meeting concerning
this request to amend the Citythis request to amend the Citys Future Land Use Map. The Commission voted to recommend approval of the s Future Land Use Map. The Commission voted to
recommend approval of the
proposed amendment to the Cityproposed amendment to the Citys Future Land Use Map on a vote of 5 for and 2 opposed. Section 106s Future Land Use Map on a vote of 5 for and 2 opposed.
Section 106--171 of the 171 of the
Citys Code of Ordinances indicates that the affirmative vote of at least 3/4 of the City Council (which is 7 s Code of Ordinances indicates that the affirmative vote of at least 3/4
of the City Council (which is 7
members) is required to overrule a recommendation of the Planning and Zoning Commission.members) is required to overrule a recommendation of the Planning and Zoning Commission.
Action Required of Council:Action Required of Council:
1.Conduct public hearing.Conduct public hearing.
2.Consider approval or other action of an ordinance adopting an update to the Future Land Use Map Consider approval or other action of an ordinance adopting an update to the Future Land
Use Map
component of the Comprehensive Plan, as recommended by the Planning and Zoning Commission.component of the Comprehensive Plan, as recommended by the Planning and Zoning Commission.
LDR
HOU
STON DR
MONUMENT RD
SAN JACINTO DR
LI
PROPOSED AMENDMENT
PO
FROM LARGE LOT RESIDENTIAL
TO LIGHT INDUSTRIAL
DEAF SMITH DR
BOIS DARC DR
LL
N P ST
LAND USE
LARGE LOT RESIDENTIAL
LOW-DENSITY RESIDENTIAL
LIGHT INDUSTRIAL
1 inch = 500 feet
PARKS AND OPEN SPACE
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
March 23, 2015March 23, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Eric Ensey Eric Ensey Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Planning & Development Planning & Development
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The applicant, QualaWash Holdings LLC (11110 Old La Porte Road) on behalf of the property owner Louisiana The applicant, QualaWash Holdings LLC (11110 Old La Porte Road) on behalf of
the property owner Louisiana
Chemical Co. LLC (11100 La Porte Freeway), is requesting consideration to rezone 6.43 acres of land described Chemical Co. LLC (11100 La Porte Freeway), is requesting consideration to
rezone 6.43 acres of land described
as Tracts 351 and 352, La Porte Outlots, situated in the Enoch Brinson Survey, Aas Tracts 351 and 352, La Porte Outlots, situated in the Enoch Brinson Survey, A--5, Harris County, Texas,
from 5, Harris County, Texas, from
LL, Large Lot Residential, to LI, Light Industrial.LL, Large Lot Residential, to LI, Light Industrial.
In this case, the property owner Louisiana Chemical Co. LLC has agreed to lease a 5.0 acre portion of the subject In this case, the property owner Louisiana Chemical Co. LLC has agreed
to lease a 5.0 acre portion of the subject
6.43 acres to the applicant QualaWash Holdings LLC. The applicant desires to construct an additional parking lot 6.43 acres to the applicant QualaWash Holdings LLC. The applicant desires
to construct an additional parking lot
for trailers. At this time there is no plan for the remaining 1.43 acres that will remain under ownership of Louisiana for trailers. At this time there is no plan for the remaining 1.43
acres that will remain under ownership of Louisiana
Chemical.
The Future Land Use Map approved as part of the cityThe Future Land Use Map approved as part of the cityThe Future Land Use Map approved as part of the cityThe Future Land Use Map approved
as part of the citys Comprehensive Plan identifies this entire 6.43 acre s Comprehensive Plan identifies this entire 6.43 acre s Comprehensive Plan identifies this entire 6.43 acre
s Comprehensive Plan identifies this entire 6.43 acre
parcel as a Large Lot ResidentialLarge Lot Residentialland use. As a result, in order to rezone the property the Cityland use. As a result, in order to rezone the property the Citys
Future Land s Future Land
Use Map will need to be amended to identify this site as Use Map will need to be amended to identify this site as Light Industrial.Light Industrial.
The Planning and Zoning Commission conducted a public hearing at the February 19, 2015, meeting concerning The Planning and Zoning Commission conducted a public hearing at the February
19, 2015, meeting concerning
this rezoning request. The Commission voted to recommend approval of the proposed rezoning subject to two this rezoning request. The Commission voted to recommend approval of the proposed
rezoning subject to two
conditions:
1.A 20-foot landscape buffer shall be maintained parallel to the west property line as well as a 20foot landscape buffer shall be maintained parallel to the west property line as well
as a 20--foot wide foot wide
landscape buffer beginning from a parallel line 54 feet from the south property line (the 54 feet representing landscape buffer beginning from a parallel line 54 feet from the south
property line (the 54 feet representing
the width of a future drainage easement for improvements to the Fthe width of a future drainage easement for improvements to the F--101 drainage system). The existing tree 101 drainage
system). The existing tree
vegetation shall not be removed and shall be maintained within the buffer area.vegetation shall not be removed and shall be maintained within the buffer area.
2.An 8-foot high masonry fence shall be provided along said buffer adjacent to the proposed industrial foot high masonry fence shall be provided along said buffer adjacent to the proposed
industrial
development.development.
Although no notice response letters were received by the City, one owner attended the meeting and expressed Although no notice response letters were received by the City, one owner
attended the meeting and expressed
concerns with regard to the rezone request. Section 106concerns with regard to the rezone request. Section 106--171 of the City171 of the Citys Code of Ordinances indicates that the
s Code of Ordinances indicates that the
affirmative vote of at least 3/4 of the City Council is required to overrule a recommendation of the Planning and affirmative vote of at least 3/4 of the City Council is required to
overrule a recommendation of the Planning and
Zoning Commission.Zoning Commission.
Action Required of Council:Action Required of Council:
1.Conduct public hearing.Conduct public hearing.
2.Consider approval or other action on a recommendation by the Planning and Zoning Commission to approve Consider approval or other action on a recommendation by the Planning and Zoning
Commission to approve
Rezone Request #15Rezone Request #15--92000002, which is an ordinance amending Chapter 106 92000002, which is an ordinance amending Chapter 106 ZoningZoningof the Code of of the
Code of
Ordinances of the City of La Porte by changing the zoning classification from Large Lot Residential (LL) to Ordinances of the City of La Porte by changing the zoning classification from
Large Lot Residential (LL) to
Light Industrial (LI), for a 6.43 acre tract of land herein described.Light Industrial (LI), for a 6.43 acre tract of land herein described.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
March 23, 2015March 23, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Eric Ensey Eric Ensey Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Planning & Development Planning & Development
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Ordinance1. Ordinance
2. P&Z Recommendation Letter2. P&Z Recommendation Letter
3. Zone Change Application3. Zone Change Application
4. Area Map4. Area Map
5. Zoning Map5. Zoning Map
6. Land Use Map6. Land Use Map
7. Drainage and Buffer Exhibit7. Drainage and Buffer Exhibit
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The applicant, QualaWash Holdings LLC (11110 Old La Porte Road) on behalf of the property owner Louisiana The applicant, QualaWash Holdings LLC (11110 Old La Porte Road) on behalf of
the property owner Louisiana
Chemical Co. LLC (11100 La Porte Freeway), is requesting consideration to rezone 6.43 acres of land described Chemical Co. LLC (11100 La Porte Freeway), is requesting consideration to
rezone 6.43 acres of land described
as Tracts 351 and 352, La Porte Outlots, situated in the Enoch Brinson Survey, Aas Tracts 351 and 352, La Porte Outlots, situated in the Enoch Brinson Survey, A--5, Harris County, Texas,
from 5, Harris County, Texas, from
LL, Large Lot Residential, to LI, Light Industrial.LL, Large Lot Residential, to LI, Light Industrial.
In this case, the property owner Louisiana Chemical Co. LLC has agreed to lease a 5.0 acre portion of the subject In this case, the property owner Louisiana Chemical Co. LLC has agreed
to lease a 5.0 acre portion of the subject
6.43 acres to the applicant QualaWash Holdings LLC. The applicant desires to construct an additional parking lot 6.43 acres to the applicant QualaWash Holdings LLC. The applicant desires
to construct an additional parking lot
for trailers. At this time there is no plan for the remaining 1.43 acres that will remain under ownership of Louisiana for trailers. At this time there is no plan for the remaining 1.43
acres that will remain under ownership of Louisiana for trailers. At this time there is no plan for the remaining 1.43 acres that will remain under ownership of Louisiana for trailers.
At this time there is no plan for the remaining 1.43 acres that will remain under ownership of Louisiana
Chemical.
The Future Land Use Map approved as part of the cityThe Future Land Use Map approved as part of the citys Comprehensive Plan identifies this entire 6.43 acre s Comprehensive Plan identifies
this entire 6.43 acre
parcel as a Large Lot ResidentialLarge Lot Residentialland use. As a result, in order to rezone the property the Cityland use. As a result, in order to rezone the property the Citys
Future Land s Future Land
Use Map will need to be amended to identify this site as Use Map will need to be amended to identify this site as Light Industrial.Light Industrial.
The Planning and Zoning Commission conducted a public hearing at the February 19, 2015, meeting concerning The Planning and Zoning Commission conducted a public hearing at the February
19, 2015, meeting concerning
this rezoning request. The Commission voted to recommend approval of the proposed rezoning subject to two this rezoning request. The Commission voted to recommend approval of the proposed
rezoning subject to two
conditions:
1.A 20-foot landscape buffer shall be maintained parallel to the west property line as well as a 20foot landscape buffer shall be maintained parallel to the west property line as well
as a 20--foot wide foot wide
landscape buffer beginning from a parallel line 54 feet from the south property line (the 54 feet representing landscape buffer beginning from a parallel line 54 feet from the south
property line (the 54 feet representing
the width of a future drainage easement for improvements to the Fthe width of a future drainage easement for improvements to the F--101 drainage system). The existing tree 101 drainage
system). The existing tree
vegetation shall not be removed and shall be maintained within the buffer area.vegetation shall not be removed and shall be maintained within the buffer area.
2.An 8-foot high masonry fence shall be provided along said buffer adjacent to the proposed industrial foot high masonry fence shall be provided along said buffer adjacent to the proposed
industrial
development.development.
Although no notice response letters were received by the City, one owner attended the meeting and expressed Although no notice response letters were received by the City, one owner
attended the meeting and expressed
concerns with regard to the rezone request. Section 106concerns with regard to the rezone request. Section 106--171 of the City171 of the Citys Code of Ordinances indicates that the
s Code of Ordinances indicates that the
affirmative vote of at least 3/4 of the City Council is required to overrule a recommendation of the Planning and affirmative vote of at least 3/4 of the City Council is required to
overrule a recommendation of the Planning and
Zoning Commission.Zoning Commission.
Action Required of Council:Action Required of Council:
1.Conduct public hearing.Conduct public hearing.
2.Consider approval or other action on a recommendation by the Planning and Zoning Commission to approve Consider approval or other action on a recommendation by the Planning and Zoning
Commission to approve
Rezone Request #15Rezone Request #15--92000002, which is an ordinance amending Chapter 106 92000002, which is an ordinance amending Chapter 106 ZoningZoningof the Code of of the
Code of
Ordinances of the City of La Porte by changing the zoning classification from Large Lot Residential (LL) to Ordinances of the City of La Porte by changing the zoning classification from
Large Lot Residential (LL) to
Light Industrial (LI), for a 6.43 acre tract of land herein described.Light Industrial (LI), for a 6.43 acre tract of land herein described.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
Ensey, Eric
From:Terry O'Brien \[tobrien@quala.us.com\]
Sent:Friday, February 13, 2015 9:52 AM
To:Ensey, Eric
Subject:City of La Porte Zone Change Application for Quala (Large Lot Residential to Light Industrial),
Address: 11100 La Porte Fwy
Attachments:Quala - La Porte Rezoning Meeting Recap 021115.pdf
Dear Mr. Ensey:
Thank you for taking the time to meet with Dan Langdon and Jim Carlson of Quala, Tony Garcia Jr., and Rene Martinez
with SDC Construction Monday, February 9, 2015 regarding our application for a City of La Porte Zone Change from
Large Lot Residential to Light Industrial use. We look forward to the Planning & Zoning Commission favorably
considering our Zone Change Application at the public hearing scheduled for February 19, 2015, in accordance with the
provisions of Section 106 of the City of La Porte Code of Ordinances, and recommending the Rezoning Ordinance to the
rd
Council meeting.
City Council for consideration at the March 23
As we articulated in our Rezoning Application and in Monday’s meeting, Quala seeks to rezone a 6.4 acre undeveloped
property (TRS 351 & 352 La Porte outlots) currently owned by Louisiana Chemical Co. LLC, (11100 La Porte Fwy.), which
is adjacent to Quala’s leasehold operations located on a 12.74 acre and a 12.87 acre property owned by Louisiana
Chemical Equipment Co. which are both zoned Light Industrial. Quala will utilize approximately 5 acres of the 6.4 acre
tract for the development of a new parking lot to stage truck containers that Quala currently services. Note, from a
historical land use perspective, the 6.4 acre site is land locked and isolated from the Large Lot Zoned Residential
properties on N. P Street – bordered to the south and west by a Harris County Flood Control easement and a berm on the
north side of the easement -- and should provide an easy transition in being zoned Light Industrial, as the site’s only
access is from Old La Porte Road (11100 La Porte Frwy), which is Quala’s main entrance.
Quala is highly committed to being a good corporate citizen and to meeting with surrounding neighbors to listen to any
concerns they may have with respect to the proposed use. To-date, we have reached out to surrounding property owners
within 200 feet of the 6.4 acre parcel and have met with and briefed five homeowners on our plans to develop the parking
lot facility -- owners located to the west, south, and southeast of the site. Our meetings have been favorable; with
homeowners expressing the desire to see a tree buffer preserved on the perimeter of the property to screen the parking
lot, and to have directional lighting installed that illuminates the parking lot only.
It is our intent to have the parking facility fully engineered and comply with the City’s development and building codes,
which, as you indicated, will require the installation of an 8 foot high boundary fence or an
Evergreen hedge that can grow to 8 feet, within two years. Please let us know if there are any other issues that you
believe we may need to consider in order to rezone the property and subsequently developing the parking lot to expand
our La Porte Quala business operations.
Respectfully,
1
Terry O'Brien
President
Tel 813-321-6477
1302 N. 19th St., Ste 300, Tampa, FL 33605
tobrien@quala.us.com / www.quala.us.com
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2
HOU
STON DR
MONUMENT RD
SAN JACINTO DR
LOUISIANA
CHEMICAL
LOCATION OF
DEAF SMITH DR
PROPERTY
BOIS DARC DR
HCFCD UNIT NO.
F-101-80-00
N P ST
1 inch = 500 feet
ZONING MAP
HOU
STON DR
MONUMENT RD
LI
R-1
SAN JACINTO DR
PROPOSED REZONE
DEAF SMITH DR
FROM LARGE LOT RESIDENTIAL
TO LIGHT INDUSTRIAL
BOIS DARC DR
LLD
N P ST
R-1
SKY
VIE
W
1 inch = 500 feet
LAND USE MAP
LDR
HOU
STON DR
MONUMENT RD
SAN JACINTO DR
LI
PROPOSED AMENDMENT
PO
FROM LARGE LOT RESIDENTIAL
TO LIGHT INDUSTRIAL
DEAF SMITH DR
BOIS DARC DR
LL
N P ST
LAND USE
LARGE LOT RESIDENTIAL
LOW-DENSITY RESIDENTIAL
LIGHT INDUSTRIAL
1 inch = 500 feet
PARKS AND OPEN SPACE
QUALAWASH SITE
DRAINAGE ACQUISITION
PROP. LANDSCAPE BUFFER
(20' WIDE)
PROPOSED QUALAWASH SITE
FUTURE DRAINAGE
EXIST. DRAINAGE ESMT
CHANNEL R-O-W
(40' WIDE)
(107' WIDE)
PROP. DRAINAGE CHANNEL
CROSS-SECTION
107'
77'
20'
10'
54' (TYP)
REQUEST FOR CITY COUNCIL AGENDA ITEM
Budget
Agenda Date Requested: 03-23-15
Source of Funds:
Requested By: Kenith Adcox
Account Number:
Department: Police
Amount Budgeted:
Report: Resolution: Ordinance:
Amount Requested:
Exhibit: Interlocal with Harris County
Budgeted Item:YESNO
Exhibit: Draft Amended Ordinance
Strikeout Version
Exhibit: Harris County Game Room Regulations _____
SUMMARY & RECOMMENDATION
Section 234.133 of the Texas Local Government Code was recently amended by the State to allow county
governments to adopt guidelinesdesigned to promote public health, safety, andwelfare through the
regulation of game rooms. The Code also provides a provision for local municipal governments located in
such counties to enter into an Interlocal Agreement with the county,allowing local officials to enforce the
same regulations within the corporate limits of said municipality. Harris County has since exercised this
authority and adopted regulations governing the operation of game rooms within its jurisdiction(see
attached Harris County Game Room Regulations). Staff is asking CityCouncil to consider entering into
the attached Interlocal Agreement with Harris Countywhich would allow Citystaff to locally enforce the
County game room regulations. If approved by CityCouncil, the Interlocal Agreement will be forwarded
to Harris County Commissioners Court for approval. Once finally approved, Chapter 10 of the Cityof
LaPorte Code of Ordinances would be amended (see attached draftmunicipal ordinance, Chapter 10,
amendment) to provide for the change.
s,establishments with six or more video poker machines, commonly referred
to as -linersfeet from schools, churchesand/or residential neighborhoods
(2,000 feet if there are 2 or more game rooms located at the location)and arerequired to obtain special
permits, pay a $1,000 annual fee, shut down between 10 p.m. and 8 a.m., submit to inspection by law
enforcement, and leave windows unobstructed. Establishments are alsorequired to identify themselves
with signs readibarred from requiring a membership forentry, a practice which
in the past has been used tokeeppolice outof game room businesses.
Action Required by Council:
Consider approval or other action authorizing the Mayor to execute an Interlocal Agreement for Game
Room Regulation Permitting and Enforcement with Harris County.
Approved for City Council Agenda
Corby Alexander, City Manager Date
INTERLOCAL AGREEMENT
FOR COUNTY GAME ROOM REGULATION PERMITTING AND
ENFORCEMENT WITHIN CITY LIMITS
STATE OF TEXAS §
§
COUNTY OF HARRIS§
La
Porte
County, a body corporate and politic under the
made in accordance with the Interlocal Cooperation Act, T.GCA. Ch. 791.
EX OVT ODE NN
RECITALS:
WHEREAS
, the Harris County Commissioners Court, through authority granted to it pursuant to
Section 234.133 of the Texas Local Government Code to promote the public health, safety, and welfare, has
adopted regulations relating to the operation of game rooms; and
WHEREAS
, pursuant to authority of Texas home-rule municipalities to promote the public health,
safety, and welfare, and Chapter 10 of the City of La Porte code of Ordinances, relating to regulation of
establishments displaying skill or pleasure, coin operated machines, or amusement redemption machines, the
City of La Porte likewise has the authority to regulate the operation of game rooms; and
WHEREAS
, the Interlocal Cooperation Act provides authorization for local governments to contract
with one another and with agencies of the state to perform governmental functions and services under the terms
of the Act; and
WHEREAS
, both the County and the City are willing to provide such services as are necessary for the
the City,
NOW, THEREFORE
, for and in consideration of the mutual covenants, agreements and benefits to the
Parties herein named, it is agreed as follows:
TERMS:
ARTICLE I
DEFINITIONS
A. As used in this Agreement, the following terms have the meanings set out below:
1.Agreement means this contract between the Parties, including all exhibits and any written
amendments authorized by City Council and Commissioners Court.
2.La Porte Police Department, or the person he or she
designates.
1
3.City is defined in the preamble of this Agreement and includes its successors and assigns.
4.by the City Manager on the signature
page of this Agreement. The Countersignature Date is the effective date of this Agreement.
5.County is defined in the preamble of this Agreement and includes its successors and assigns.
6.Planning of the City of La Porte, Texas, or the person he or she
designates.
7.n Section 1.4(a) of the Regulations.
8.the County and the City, individually or collectively.
9., adopted by the Harris County
Commissioners Court on December 17, 2013, as may be amended from time to time.
10.
ARTICLE II
RIGHTS AND DUTIES OF THE COUNTY
A. Permitting
1. For the purpose of enabling the City to perform its obligations under this Agreement, the Sheriff
designates the role of Game Room Permit Administrator to the Director for all permits issued for
within the City limits.
2. The Sheriff shall immediately direct all inquiries for County permit applications within City
limits to the Director.
(http://www.hcso.hctx.net) that all applications for County Game Room permits within City
limits must be administered by the City.
3. Upon request by the Sheriff, Commissioners Court shall provide a hearing officer for the purpose
of conducting hearings for the denial, suspension and revocation of County permits within City
limits, as set out in Sections 2.2 through 2.5 of the Regulations. The Director shall be provided
an opportunity to present evidence, cross examine witnesses and be represented by legal counsel.
B.Enforcement
1. The County Attorney retains the full authority granted in Section 234.137 of the Texas Local
Government Code to sue in district court for an injunction to prohibit the violation or threatened
violation of the Regulations.
2
ARTICLE III
RIGHTS AND DUTIES OF THE CITY
A. Permitting
1. As the Game Room Permit Administrator, the Director shall supervise, control, and operate the
Permit Office and issue County permits for within the City limits on behalf of the County as set
out in Section 2.1 of the Regulations. The Parties agree that the City will not prosecute any
violations of the Regulations. The Director, in consultation with the Sheriff, shall promulgate
requirements for issuing a County permit for Game Rooms within City limits based on the
Regulations and City ordinances.
2. The City shall be the designated agent for conducting criminal background checks as required
under Section 2 of the Regulations for all permits issued for within the City limits.
B.Enforcement
1. The City peace officers designated by the Chief to enforce the Regulations shall inspect Game
Rooms within City limits and arrest violators pursuant to Section 3 of the Regulations.
2.
are issued on or after the Countersignature Date. Applications for renewal of an existing city or
county permit shall not be considered a new application, so long as the establishment is in
compliance with Section 3.9(d) of the Regulations.
3. To coordinate peace-keeping efforts, both City and County peace officers making undercover
investigations in Game Rooms must use the Narcotics Operations Control Center system
administered by the Houston Police Department.
ARTICLE IV
FUNDING AND COMPENSATION
A. The Parties each understand and agree that neither the County nor the City has certified funds to fulfill
their obligations under this Agreement. It is the intent of the Parties that the cost of services shared with
each entity will be of equal value and benefit.
B.The Parties agree that the non-refundable annual permit fee established in Sections 2.6 and 2.7 of the
Regulations shall be paid by a County permit applicant directly to the City of La Porte
designated agent for permitting. If either Party receives any permit fees for Game Rooms within the
from an applicant, it shall remit those funds to the appropriate Party
at its address for notices.
ARTICLE V
3
TERM AND TERMINATION
A. The term of this Agreement is one-year and begins on the Countersignature Date. It is the intent of the
Parties that the Agreement shall automatically renew annually for 10 successive one-year terms, unless
earlier terminated.
B. Either Party may terminate its participation in this Agreement by giving written
notice to the other Party.
ARTICLE VI
DOCUMENTS EXCHANGED
A. The Parties may exchange documents in the course of this Agreement. Each Party agrees to keep
confidential, to the extent allowed by law, all such documents and to provide prior notice to the other of
any requests or releases of such documents.
ARTICLE VII
NOTICES
A. The Parties intend that any notice may be delivered personally, by certified or registered mail, return-
receipt requested, or by overnight courier, and shall be deemed to have been duly given when delivered
personally or when deposited in the United States mail, postage prepaid, addressed as follows:
If to the County: Office of the Harris County Attorney
th
1019 Congress, 15 Floor
Houston, Texas 77002
Attention: Robert Soard
If to the City: City of La Porte, Texas
Attn: City Manager
604 W. Fairmont Pkwy.
La Porte, TX 77571
Or to such other persons or places as either Party may from time to time designate by written notice to
the other Party.
ARTICLE VIII
NO PERSONAL LIABILITY AND NO THIRD PARTY BENEFICIARY
A.Nothing herein shall be construed as creating any personal liability on any part of any officer or agent of
any public body that may be a Party hereto. The Parties agree that no provision of this Agreement is in
any way intended to constitute a waiver of any immunities from suit or liability that any Party may have
4
by operation of law. The Parties further agree that no provision of this Agreement extends the liability
of any Party beyond the liability provided in the Texas Constitution and the laws of the State of Texas.
Neither the execution of this Agreement nor any other conduct of any Party relating to this Agreement
shall be considered a waiver of any right or defense under the Texas Constitution or the laws of the State
of Texas.
B.In accordance wit-1), each Party shall assume responsibility for its own
actions and those of its officers, officials, employees and agents, and for its own defense should any
claim be presented or suit filed against it arising from or related to any law enforcement or permitting
services provided under this Agreement. This assignment of liability is intended to be different than any
ARTICLE IX
MISCELLANEOUS
A. No Partnership
. This Agreement is not intended to and shall not create joint enterprise between the
City and the County. The personnel of one Party shall not be considered employees, agents, partners,
joint ventures, or servants of the other Party to this Agreement. The Parties are undertaking
governmental functions or services under this Agreement and the purpose hereof is solely to further the
public good, rather than any pecuniary purpose. The Party undertaking work under this Agreement shall
have a superior right to control the direction and management of such work and the responsibility of
day-to-day management and control of such work, except as may expressly be provided herein.
B.Compliance with Law.
In performing services pursuant to this Agreement, each Party shall comply
with all applicable federal, state, County, and City statutes, regulations, rules, and ordinances. To the
extent allowed under applicable laws, each Party intends to notify the other Party of any violation of
law, regulation, or ordinance that relate to services or data obtained or provided under this Agreement
immediately after the noticing Party, its employees, subcontractors or agents become aware of it and
without regard to whether the noticing Party or its employees, subcontractors or agents are involved or
merely witnesses.
C. Captions
. The captions used in this Agreement are for convenience only and do not limit or amplify
any provisions contained in this Agreement.
D. Venue
. This Agreement shall be construed under and in accord with the laws of the State of Texas, and
all obligations of the Parties created hereunder are performable in Harris County, Texas. Venue for any
litigation arising out of or related to this Agreement shall lie solely in a court of appropriate jurisdiction
located in Houston, Harris County, Texas.
E.Assignment
. This Agreement shall not be assignable, in whole or in part.
F. Severability
. The provisions of this Agreement are severable. If any paragraph, section, subdivision,
sentence, clause, or phrase of this Agreement is for any reason held by a court of competent jurisdiction
to be contrary to law or contrary to any rule or regulation having the force and effect of the law, the
remaining portions of the Agreement shall be enforced as if the invalid provision had never been
5
included.
G. Entire Agreement.
This Agreement contains the entire agreement between the Parties concerning the
subject matter hereof and supersedes any prior written or oral agreement.
H. Amendments
. The County and the City may amend this Agreement at any time provided that such
amendments are executed in writing and signed by the governing bodies of both Parties.
\[SIGNATURE PAGE TO FOLLOW\]
6
IN TESTIMONY OF WHICH, this agreement, in duplicate counterparts, each having equal force and effect of an
original, has been executed on behalf of the parties hereto as follows:
a. It has on the ______ day of ____________________, 2015, been executed on behalf of the City
by the Mayor and attested by its City Secretary, pursuant to ordinance of the City Council of the
City of La Porte authorizing such execution.
b. It has on the _____ day of _____________________, 2015, been executed on behalf of the
County by the County Judge of Harris County, Texas, pursuant to an order of the
Commissioners Court of Harris County authorizing such execution.
CITY OF LA PORTE
ATTEST/SEAL: CITY OF LA PORTE
By ____________________________ By ___________________________
City Secretary Mayor
APPROVED AS TO FORM: COUNTERSIGNED:
By ____________________________ By ___________________________
City Attorney City Manager
COUNTY
APPROVED AS TO FORM: HARRIS COUNTY
VINCE RYAN
County Attorney
By ___________________________ By ___________________________
Assistant County Attorney ED EMMETT
C.A. File No.: 14GEN1552 County Judge
7
THE STATE OF TEXAS §
§
COUNTY OF HARRIS §
The Commissioners Court of Harris County, Texas, convened at a meeting of said Court at the Harris
County Administration Building in the City of Houston, Texas, on the ____ day of
__________________________, 2015, with the following members present, to-wit:
Ed Emmett County Judge
El Franco Lee Commissioner, Precinct No. 1
Jack Morman Commissioner, Precinct No. 2
Steve Radack Commissioner, Precinct No. 3
R. Jack Cagle Commissioner, Precinct No. 4
and the following members absent, to-wit: __________________________________, constituting a quorum,
when among other business, the following was transacted:
ORDER AUTHORIZING EXECUTION OF AN AGREEMENT BY AND BETWEEN
HARRIS COUNTY AND THE CITY OF LA PORTE TO PROVIDE FOR PERMITTING AND
ENFORCEMENT OF COUNTY GAME ROOM REGULATIONS BY THE CITY WITHIN CITY OF LA
PORTE CITY LIMITS
Commissioner ____________________________ introduced an order and made a motion that the same
be adopted. Commissioner _______________________ seconded the motion for adoption of the order. The
motion, carrying with it the adoption of the order, prevailed by the following vote:
Yes No Abstain
Judge Emmett
Comm. Lee
Comm. Morman
Comm. Radack
Comm. Cagle
The County Judge thereupon announced that the motion had duly and lawfully carried and that the order
had been duly and lawfully adopted. The order thus adopted follows:
IT IS ORDERED that the County Judge is hereby authorized to execute for and on behalf of Harris County, an
Interlocal Agreement by and between Harris County and the City of La Porte to provide for permitting and
enforcement of County game room regulations by the City within City of La Porte city limits, said Agreement
being incorporated herein by reference for all purposes as though fully set forth word for word.
8
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 10 AMUSEMENTS OF THE CODE OF ORDINANCES
OF THE CITY OF LA PORTE, BY ENACTING CERTAIN REGULATIONS RELATED TO THE
OPERATION OF GAME ROOMS, IN COORDINATION WITH HARRIS COUNTY; PROVIDING A
REPEALING CLAUSE; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE
WITH THE OPEN MEETINGS LAW; PROVIDING THAT ANY PERSON VIOLATING THE TERMS
OF THIS ORDINANCE SHALL BE DEEMED GUILTY OF A MISDEMEANOR AND UPON
CONVICTION SHALL BE FINED IN A SUM NOT TO EXCEED FIVE HUNDRED DOLLARS;
PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF; AND PROVIDING AN
EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS:
Section 1
: That Chapter 10AmusementsCoin Operated Machines1Generally
of the Code of Ordinances, La Porte, Texas, is hereby amended in its entirety and shall hereinafter read as
follows:
DIVISION 1. - GENERALLY
Sec. 10-31. - Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to
them in this section, except where the context clearly indicates a different meaning:
Amusement redemption machine means a recreational machine, including eight-liner machines, that
provides the user with an opportunity to receive something of value other than a right to replay and in which
credits, or the equivalent thereof, are accumulated when: A particular configuration of like symbols is displayed
in a random fashion by the machine; symbols or numbers are matched to a randomly selected symbol or number
determined by the machine; a combination of cards is arrived at and valued in a traditional hierarchy for
purposes of poker; or a combination of cards is arrived at and points assigned for purposes of blackjack.
Amusement redemption machine means any electronic, electromechanical, or mechanical contrivance
designed, made, and adopted for bona fide amusement purposes that rewards the player exclusively with
noncash merchandise, prizes, toys, or novelties, or a representation of value redeemable for those items, that
have a wholesale value available from a single play of the game or device of not more than ten times the
amount charged to play the game or device once, or $5.00, whichever amount is less.
Coin-operated machine means every machine or device of any kind or character, other than an an eight-
liner, which is operated by or with coins, or metal slugs, tokens or checks; "music coin-operated machines" and
"skill or pleasure coin-operated machines" as those terms are defined in this section, shall be included in such
definition.
Eight-liner means a coin-operated machine or contrivance capable of being used for games of chance,
including but not limited to a Tic Tac Toe eight-liner or video poker machine or other contrivance or
paraphernalia, on which games of chance can be played for a consideration and which afford the player an
opportunity to win a prize, gift certificate or thing of value, whether or not the prize is automatically paid by the
contrivance.
Game room means a for-profit business located in a building or other place that contains six or more
amusement redemption machines.
Game room owner means an individual who:
(1) Has an ownership interest in or receives income from a game room or an amusement redemption machine
located in a game room;
(2) Is a partner, director, or officer of a business, company, or corporation that has an ownership interest in a
game room or in an amusement redemption machine located in a game room;
(3) Is a shareholder that holds more than ten percent of the outstanding shares of a business, company, or
corporation that has an ownership interest in a game room or in an amusement redemption machine located in a
game room;
(4) Has been issued by the county clerk an assumed name certificate for a business that owns a game room or an
amusement redemption machine located in a game room;
(5) Signs a lease for a game room;
(6) Opens an account for utilities for a game room;
(7) Receives a certificate of occupancy for a game room and/or zoning permit;
(8) Pays for advertising for a game room; or
(9) Signs an alarm permit for a game room.
Game Room Operator means an individual who supervises, manages, or participates in the performance
of activities that contribute to the functioning of a game room, including the following activities:
(1) Operates a cash register, cash drawer, or other depository on the premises of a game room or of a business
where the money earned or the records of credit card transactions or other credit transactions generated in any
manner by the operation of a game room or activities conducted in a game room are kept:
(2) Displays, delivers, or provides to a customer of a game room; merchandise, goods, entertainment, or other
services offered on the premises of a game room;
(3) Take orders from a customer of a game room for merchandise, goods, entertainment, or other services
offered on the premises of a game room; or
(4) Acts as a door attendant to regulate entry of customers or other persons into a game room.
(5) Supervises or manages other persons at a game room.
Music coin-operated machine means every coin-operated machine of any kind or character, which
dispenses or vends or which is used or operated for dispensing or vending music and which is operated by or
with coins or metal slugs, tokens or checks. The following are expressly included within such term:
phonographs, pianos, graphophones, and all other coin-operated machines which dispense or vend music.
Operator means any person, firm, company, association or corporation which exhibits, displays or permits
to be exhibited or displayed, in a place of business other than his own, any coin-operated machine in this state.
Owner means any person, individual, firm, company, association or corporation owning any coin-operated
machine in this state.
Service coin-operated machines means every pay toilet, pay telephone and all other machines or devices
which dispense service only and not merchandise, music, skill or pleasure.
Skill or pleasure coin-operated machines means every coin-operated machine of any kind or character
whatsoever, when such machines dispense or are used or are capable of being used or operated for amusement
or pleasure or when such machines are operated for the purpose of dispensing or affording skill or pleasure, or
for any other purpose other than the dispensing or vending of "merchandise or music" or "service" exclusively,
as those terms are defined in this article. The following are expressly included within such term: marble
machines, marble table machines, marble shooting machines, miniature race track machines, miniature football
machines, miniature golf machines, miniature bowling machines, and all other coin-operated machines which
dispense or afford skill or pleasure; provided, however, that every machine or device of any kind or character
which dispenses or vends merchandise, commodities or confections or plays music in connection with or in
addition to such games or dispensing of skill or pleasure shall be considered as skill or pleasure machines and
taxed at the higher rate fixed for such machines.
Secs. 10-3210-50. -
Section 2
: 3Regulation
of Places of Business
hereinafter read as follows:
DIVISION 3. - REGULATION OF PLACES OF BUSINESS
Sec. 10-75. - Unrestricted access by law enforcement officer; right of inspection by law enforcement
officer.
(a)It shall be the duty of any owner, manager, or employee of a place of business displaying one or more
skill or pleasure coin operated machines or amusement redemption machines, or other person exercising
control over such a business establishment or the skill or pleasure coin operated machines or amusement
redemption machines therein, to provide any law enforcement officer with immediate unrestricted access
during business hours to all areas of the business establishment.
(b) Any law enforcement officer may inspect a business establishment or any skill or pleasure coin operated
machines or amusement redemption machines therein to determine whether the business establishment is in
compliance with this chapter and state law. An owner, manager, or employee of a business establishment
which displays one or more skill or pleasure coin operated machines or amusement redemption machines
who does not allow a law enforcement officer to inspect said establishment or the skill or pleasure coin
operated machines or amusement redemption machines therein commits a misdemeanor offense.
(c)This chapter shall not be construed to authorize or permit the keeping, exhibition, operation, display, or
maintenance of any machine that is prohibited by the constitution or statutes of this state, including but not
limited to, Chapter 47 of the Texas Penal Code.
Sec. 10-76. - Moving of machine which has tax certificate.
It shall be unlawful to move a coin-operated machine to a different place of business in the city without
prior written notification to the city secretary.
Sec. 10-77. - Hours of operation for minors; terms defined.
(a)Every business establishment displaying skill or pleasure coin operated machines, amusement redemption
machines, or eight-liners shall remain closed to minors, and no minors shall be on the premises, except during
the following hours:
School year
Mondays through Thursdays ..... 2:30 p.m. to 10:00 p.m.
Fridays ..... 2:30 p.m. to 12:00 p.m.
Saturdays ..... 9:00 a.m. to 12:00 p.m.
Sundays ..... 1:00 p.m. to 10:00 p.m.
Summer
Mondays through Fridays ..... 11:00 a.m. to 12:00 p.m.
Saturdays ..... 9:00 a.m. to 12:00 p.m.
Sundays ..... 1:00 p.m. to 10:00 p.m.
(b) The term "school year" shall be defined as the period of time from the commencement of regular classes
in the La Porte Independent School District in August, through the last day of regular classes the following
May. The term "summer" shall be the period from the end of classes in May until the commencement of
classes in August.
Sec. 10-78. - Unobstructed view to interior.
Every business establishment displaying five or fewer skill or pleasure coin operated machines and/or
amusement redemption machines, or eight-liners shall have unobstructed windows or open space on at least one
side, so that the area is open to view by members of the public passing by on a public street, or using a corridor,
lobby or other room to which the public resorts and is admitted without charge. A minimum of 65 percent of
said side that is more than three feet above sidewalk grade and not more than seven feet above sidewalk grade
shall be of transparent glass, unobscured by obstructions.
Sec. 10-79. - Noise.
No sound of any nature shall be audible beyond the limits of a place of business covered under this article.
Sec. 10-80. - Lighting.
Lighting shall be maintained at an intensity of not less than 30 footcandle power, three feet from the floor,
measured at any location in any room open to the public, which shall be operative during all hours of operation
of any place of business covered under this article.
Sec. 10-81. - Operator responsible for violations of this article.
Any business operator who permits, allows or in any manner condones a violation of any provision of this
article shall, upon conviction, be punished as provided in section 1-14 of this Code. Neither allegation nor
evidence of a culpable mental state is required for the proof of an offense defined in this article.
Sec. 10-82. - Employees subject to penalties.
Any employee of a coin-operated machine business who violates or permits patrons or customers of the
coin-operated machine business to violate any provision of this article shall, upon conviction, be punished as
provided in section 1-14.
Sec. 10-83. - Change in corporate structure or address of owner.
Every person shall, prior to the effective date of any change of ownership of such business or enterprise or
of the home address or principal business address of any owner thereof, if such business or enterprise is
unincorporated, or if such business or enterprise is incorporated, prior to the effective date of any change of
officers or directors of such business or enterprise, or of the home address or principal business address of any
officer or director thereof, file with the city secretary a sworn affidavit. Such affidavit shall state therein such
change of ownership of such unincorporated business or enterprise, and such change of home address or
principal business address of any owner thereof, or such substitution of officers or directors of such
incorporated business or enterprise and such change of home address or principal business address of any
Section 3:
Ordinances, La Porte, Texas, is hereby amended
and which division shall hereinafter read as follows:
- REGULATION OF GAME ROOMS.
Sec. 10-84. Regulation by Harris County; Permit required
.
(a) As authorized by Texas Local Government Code Chapter 234 and Harris County Game Room Regulations
adopted by Harris County, Harris County and the City of La Porte have entered into an interlocal agreement
allowing for Harris County to exclusively regulate and control the operation of game rooms within the corporate
limits of the City of La Porte.
(b) Any person who desires to operate, use, or maintain a game room in the City of La Porte shall be required to
first obtain a Harris County game room permit, and shall be subject to the terms and conditions contained in the
Harris County Game Room Regulations. The City of La Porte hereby adopts and incorporates for all purposes,
the Harris County Game Room Regulations.
(c) In accordance with the interlocal agreement between Harris County and the City of La Porte, the Director of
Planning of the City of La Porte, or his designee, shall serve as the game room permit administrator, on behalf
of Harris County, for game rooms located in the City of La Porte. The Director shall supervise, control, and
operate the Permit Office and shall issue county permits, in coordination with the county.
(d) Game room owners shall obtain a Harris County permit or renewal thereof for each game room in the City,
by submitting to the Director of Planning, or his designee, an application and the application fee for a Harris
County Game Room Permit. The permit shall be issued in accordance with Harris County Game Room
Regulations. Applicants shall refer to Harris County Game Room Regulations for permitting requirements.
County permit application forms may be obtained from the city, through the Permit Office.
(e) Applications for Harris County game room permits shall follow Harris County Game Room Regulations
regarding denial, revocation or suspension of a permit and the appeal thereof.
(f) The City of La Porte hereby adopts the Harri
Section 4
: All ordinances or parts of ordinances inconsistent with the terms of this ordinance are hereby
repealed; provided, however, that such repeal shall be only to the extent of such inconsistency and in all other
respects this ordinance shall be cumulative of other ordinances regulating and governing the subject matter
covered by this ordinance.
Section 5:
Should any section or part of this ordinance be held unconstitutional, illegal, or invalid, or the
application to any person or circumstance for any reasons thereof ineffective or inapplicable, such
unconstitutionality, illegality, invalidity, or ineffectiveness of such section or part shall in no way affect, impair
or invalidate the remaining portions thereof; but as to such remaining portion or portions, the same shall be and
remain in full force and effect and to this end the provisions of this ordinance are declared to be severable.
Section 6
. Any person, as defined in Section 1.07 (27), Texas Penal Code, who shall violate any provision of
the ordinance, shall be deemed guilty of a misdemeanor and upon conviction shall be punished by a fine not to
exceed FIVE HUNDRED DOLLARS ($500.00).
Section 7.
The City Council officially finds, determines, recites and declares that a sufficient written notice of
the date, hour, place and subject of this meeting of the City Council is posted at a place convenient to the public
at the City Hall of the city for the time required by law preceding this meeting, as required by Chapter 551, Tx.
is meeting has been open to the public as required by law at all times during which this
ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City
Council further ratifies, approves and confirms such written notice and the contents and posting thereof.
Section 8
. This Ordinance shall be effective fourteen (14) days after its passage and approval. The City
Secretary shall give notice of the passage of this ordinance by causing the caption hereof to be published in the
official newspaper of the City of La Porte at least once within ten (10) days after passage of this ordinance.
PASSED AND APPROVED this the______ day of _________________, 2015.
CITY OF LA PORTE
By:
Louis R. Rigby, Mayor
ATTEST:
City Secretary
APPROVED:
Assistant City Attorney
Harris County Game Room Regulations
Amended: March 10, 2015
SECTION 1. GENERALLY
WHEREAS, The Legislature of the State of Texas has amended Chapter 234 of the Local Government Code,
authorizing certain counties, including Harris County, to regulate Game Rooms; and
WHEREAS, Harris County, Texas desires to reduce the adverse secondary effects of illicit Game Rooms, which
were presented in hearings and reports made available to Harris County Commissioners Court;
THEREFORE, HARRIS COUNTY COMMISSIONERS COURT FINDS:
1.Illicit Game Rooms, as a category of commercial uses, are associated with a wide variety of adverse
secondary effects, including but not limited to personal and property crimes, gambling offenses, weapon
offenses, illicit drug use and drug trafficking, negative impacts on surrounding properties, urban blight, and
litter.
2.Game Rooms should be separated from sensitive land uses to minimize the impact of their secondary effects
upon such uses, and should be separated from other Game Rooms, to minimize the secondary effects
associated with such uses and to prevent an unnecessary concentration of Game Rooms in one area.
3.Game Rooms should have restricted hours of operation due to the increase of personal crimes such as
assaults, robberies, and homicides between the hours of 10 p.m. and 8a.m.
4.Each of the foregoing negative secondary effects constitutes a harm, which Harris County has a substantial
government interest in preventing and abating. This substantial government interest in preventing
Regulations, exists independent of any
comparative analysis between legal Game Rooms and illicit Game Rooms
regulating Game Rooms extend to preventing future secondary effects of either current or future Game
Rooms that may locate in Harris County.
1.1 Authority to regulate
(a) These Regulations are promulgated pursuant to and in conformity with Chapter 234 of the Local Government Code of
Texas, as amended, titled County Regulation of Businesses and Occupations. The court of a county may
regulate the operation of Game Rooms to promote the public health, safety, and welfare, according to Section 234.133
of the Local Government Code.
1
(b) It is the purpose of the Harris County Commissioners Court to exercise its police power, as established under Chapter
234 of the Local Government Code to establish reasonable and uniform regulation of Game Rooms to promote the
public health, safety, and welfare and to prohibit business activities which merely serve as a front for criminal activities,
including but not limited to gambling and tax evasion.
(c) These Regulations do not legalize anything prohibited under the Texas Penal Code or any other law or regulation.
1.2 Administration
(a) The Harris County Commissioners Court hereby designates and directs any law enforcement agency to investigate for
violations of these Regulations. Any Peace Officer certified by the State of Texas may enforce these Regulations.
(b) Under Section 234.138(b) of the Local Government Code, as amended, a person commits an offense if the person
intentionally or knowingly operates a Game Room in violation of a regulation adopted under Section 234.133. An
offense under this section is a Class A misdemeanor.
(c) In accordance with Section 234.133 of the Local Government Code, the State of Texas has granted the Harris County
Commissioners Court authority to promote public health, safety, and welfare.
(d) Except as provided in subsection 1.2(e), the Commissioners Court designates the Harris County Sheriff as Game
Room Permit Administrator for Harris County. The Harris County Sheriff shall supervise, control, and operate the Permit
Office. The Harris County Sheriff shall investigate, deny, issue, attach conditions to, administratively suspend, or revoke
Game Room permits pursuant to these Regulations and any applicable state law.
(e) The Commissioners Court allows incorporated cities or towns in Harris County that have executed interlocal
agreements with Harris County to designate their own Game Room Permit Administrator. The Game Room Permit
Administrator shall supervise, control, and operate the Permit Office. The Game Room Permit Administrator shall
investigate, deny, issue, attach conditions to, administratively suspend, or revoke Game Room permits pursuant to these
Regulations and any applicable state law.
1.3 Area covered by Regulations
These Regulations apply to enterprises located in Harris County, Texas.
1.4 Definitions
As used in these Regulations:
Game Room-profit business located in a building or place that contains six or more amusement
redemption machines.
Redemption Machine
made, and adopted for bona fide amusement purposes that rewards the player exclusively with non-cash merchandise,
prizes, toys, or novelties, or a representation of value redeemable for those items, that have a wholesale value available
from a single play of the game or device of not more than 10 times the amount charged to play the game or device once,
or $5, whichever amount is less.
2
Owner
(1) has an ownership interest in, or receives the profits from, a Game Room or an amusement redemption machine
located in a Game Room;
(2) is a partner, director, or officer of a business, company, or corporation that has an ownership interest in a Game
Room or in an amusement redemption machine located in a Game Room;
(3) is a shareholder that holds more than ten (10) percent of the outstanding shares of a business, company, or
corporation that has an ownership interest in a Game Room or in an amusement redemption machine located in a
Game Room;
(4) has been issued by the county clerk an assumed name certificate for a business that owns a Game Room or an
amusement redemption machine located in a Game Room;
(5) signs a lease for a Game Room;
(6) opens an account for utilities for a Game Room;
(7) receives a certificate of occupancy or certificate of compliance for a Game Room;
(8) pays for advertising for a Game Room;
(9) signs an alarm permit for a Game Room; or
(10) signs as Applicant requesting a Game Room permit inspection.
Agreementa cooperative agreement between Harris County and an incorporated municipality as
described in Texas Local Government Code Chapter 234.
(e) To Game Roommeans, to be open for business, having or inviting customers to use the machines, or
otherwise being used for the purposes of display and play of Amusement Redemption Machines.
(f
(1)operates a cash register, cash drawer, or other depository on the premises of a Game Room or of a business
where the money earned or the records of credit card transactions or other credit transactions generated in any
manner by the operation of a Game Room or activities conducted in a Game Room are kept;
(2)displays, delivers, or provides to a customer of a Game Room; merchandise, goods, entertainment, or other
services offered on the premises of a Game Room;
(3)takes orders from a customer of a Game Room for merchandise, goods, entertainment, or other services offered
on the premises of a Game Room;
(4)acts as a door attendant to regulate entry of customers or other persons into a Game Room; or
3
(5)supervises or manages other persons at a Game Room in the performance of an activity listed in this subsection.
(gn, partnership, or other business entity required to submit a Game
Roompermit application.
(i
(j
designated official for a cooperating municipality.
(k) Annual Fire Inspection Report
similar inspection by the department having competent jurisdiction within the incorporated area of the county within 90
days immediately preceding the date of any application for operation of a Game Room or renewal of a Game Room
permit.
(lOfficeran individual as described in Article 2.12 of the Texas Code of Criminal Procedure.
(m) an individual, partnership, corporation, association, or other legal entity.
(n a building used by Federal, State, or local government that is open to the general public.
(oRegulations of Harris County, Texas, for the operation of Game Rooms.
(pa facility, including all attached playgrounds, dormitories, stadiums and other appurtenances that
are part of the facility, used for the primary purpose of instruction or education, including primary and secondary
schools, colleges, and universities, both public and private.
(q) Device) (a) of the Texas Penal Code.
(rSafety Official
within the incorporated area of the county to conduct a fire and life safety inspection.
(sis deemed effective on the date written notice to an Applicant, permit holder, or agent thereof is hand
delivered or posted on the front exterior door of the Game Room, or upon receipt by certified mail.
SECTION 2. PERMIT
2.1 Application
(a) It shall be unlawful for an Owner or Operator to Operate a Game Room, use, or maintain any Game Room in Harris
County that has not been issued a permit pursuant to these Regulations. A person who violates these Regulations shall
be assessed a civil penalty not to exceed $10,000 per violation. Each day a violation occurs or continues to occur is
considered a separate violation.
(b) A completed application shall be filed with the Game Room Permit Administrator. The application shall be filed on
the form provided by the Game Room Permit Administrator or on an accurate and legible copy of that form. A copy of
4
the application can be obtained from http://www.hcso.hctx.net/ or from the website or
other source as determined by the Game Room Permit Administrator of a cooperating municipality.
(1)The Applicant shall apply in person. The Applicant shall be an Owner of the Game Room. The Game Room
Permit Administrator will establish the hours when an application can be submitted.
(2)The Game Room Permit Administrator shall provide the fee schedule on any Permit Office website with the
application form. This fee shall not exceed the annual permit fee limit of $1,000 as established by the
Commissioners Court. The application fee shall be attached to the application form.
(3)Incomplete applications will not be accepted. Once a complete application has been submitted, the application
process will begin.
(4)A receipt shall be hand delivered or sent by certified mail to the Applicant within 14 days of submission of a
complete application and payment of the application fee to the Game Room Permit Administrator. A receipt
showing payment of the application fee is NOT a permit to operate a Game Room.
(5)Once a complete application has been received, the Game Room Permit Administrator will conduct up to three
inspections of the proposed Game Room to ensure compliance with these Regulations. The Applicant
must be present in person during these inspections.
a.After the initial inspection, the Applicant will be informed of what corrections must be made to the
proposed Game Room to comply with these Regulations.
b.A re-inspection will be performed and the Applicant will again be informed of what corrections must be
made to the Game Room to comply with these Regulations.
c.If after the third and final inspection the Game Room fails to comply with these Regulations,
the Game Room Permit Administrator shall deny the application.
d.If the proposed Game Room passes inspection, the Game Room Permit Administrator will approve the
application.
(6)The Applicant has 60 days from the initial inspection to complete the inspection process. Failure to complete the
inspection process within these 60 days will result in denial of the application.
(7)Failure to provide any information required by this section or a determination by the Game Room Permit
Administrator that inaccurate, erroneous, or incomplete information has been submitted will provide grounds for
denial or revocation of the application.
(c) In municipalities which have elected to adopt the Harris County Game Room Regulations, and where the Harris
County Commissioners Court has approved an Interlocal Agreement between the municipality and the county, the
5
municipality shall designate an entity to receive and process Game Room applications. The municipality shall adopt a
common operating procedure with requirements and processes reasonably similar to those set out by these
Regulations. The municipality shall provide the application along with a description of the application and inspection
(d) Each complete application shall be accompanied by:
(1)a Current Annual Fire Inspection Report from a Fire Safety Official showing compliance with all corrections
ordered;
(2)a copy of certification of occupancy or certification of compliance issued by the appropriate entity as
appropriate for the proposed Game Room;
(3)a diagram or floorplan to include designed occupancy load, prepared by a licensed architect or engineer and
approved by the entity with competent jurisdiction;
(4)a true and correct copy of the assumed name certificate filed in the office of the Harris County Clerk, bearing the
file mark or stamp that evidences its filing, if the Game Room will be operating under an assumed name;
(5)a copy of the formative legal documents for the applicable legal entity, e.g., the Articles of Incorporation;
(6)a non-refundable application fee of $1,000, the amount established by the Harris County Commissioners Court;
(7)a copy of the A government-issued photo identification;
(8)proof as described in subsection 3.13 that the proposed enterprise is exempt from the requirement to have a
GAME ROOMset forth by subsection 3.2 of these Regulations;
(9)proof as described in subsection 3.13 that the proposed enterprise is exempt from the requirement to have
transparent, uncovered windows and doors as set forth by subsection 3.4 of these Regulations;
(10) proof as described in subsection 3.13 that the proposed enterprise is exempt from the Hours of Operation
restrictions as set forth by subsection 3.5 of these Regulations;
(11)proof as required in subsection 3.9(e) that the proposed enterprise is exempt from, or will be located in
compliance with, the distance requirements as set forth by subsection 3.9 of these Regulations;
(12) a current lease agreement for the Game Room premises with the Applicant listed as the Game Room Owner
and premises lessee or proof of property ownership;
(13)a list of Owner(s) with their government-issued identification numbers and incorporation papers as applicable;
6
1
(14)a copy of the State of Texas coin-operated machine occupation tax records, the State of Texas coin-operated
23
machine license or registration certificate, and the Harris County coin-operated machine occupation tax records
for each machine exhibited or displayed, or permitted to be exhibited or displayed in the Game Room. Records shall
include information detailing each machine found on the premises by identifying the machine by name of
manufacturer, serial number, type of machine, the serial number of the State of Texas Tax stamp, and the Harris
County Tax Stamp to include the year of expiration of each tax stamp required;
(15)the Game Room AFederal Employer Identification Number (EIN);
(16)a certification that neither the Applicant nor the Owners of the Game Room have been convicted of any level of
any of the offenses listed in subsection 2.2(b)(1); and
(17)a certification that all of the contents of the application and the above presented materials are true under the
penalty of perjury and penalty of Texas Penal Code 37.10.
(e) A Game Room application will be rejected upon failure to produce all documents required in subsections 2.1(d),
except for the exemptions listed in subsections 2.1(d)(7-10). Failure to provide the proof required by subsection
2.1(d)(7-10) will result in denial of the specific exemption described in that particular subsection.
(f) THE GAME ROOM SHALL NOT OPERATE DURING THE PENDENCY OF THE APPLICATION AND UNTIL THE GAME ROOM
APPLICATION IS APPROVED AND THE PERMIT ISSUED.
(g) A Game Room permit, in accordance with these Regulations, is not transferable, assignable or divisible and it is a
violation of these Regulations for any person to attempt to do so. If ownership of a Game Room changes, the Game
Room shall be deemed unpermitted and the new Owners must reapply and must do so before they may Operate a
Game Room.
(h) An Applicant who submits an application under this Regulation must swear and affirm the truth of the contents
therein under the penalty of Perjury as defined under Texas Penal Code Section 37.03. In addition, any
misrepresentation on this application is a third degree felony offense as defined under Texas Penal Code Section 37.10.
2.2 Grounds for Denial, Revocation, or Suspension
(a) Any violation of any section or subsection of these Regulations or failure to meet all requirements of any section or
subsection of these Regulations, where applicable, will be a ground for denial, revocation, or suspension of a permit to
Operate a Game Room. If a Game Roompermit has been revoked, denied, or suspended, the Game Room shall not
operate during the pendency of any appeal from the revocation, denial, or suspension.
1
Tex. Occ. Code Ann. C § 2153.401 (West)
2
Tex. Occ. Code Ann. C § 2153.151 (West)
3
Tex. Occ. Code Ann. C § 2153.451 (West)
7
(
b)Denial of Permit. The Game Room permitshall be denied upon the finding by the Game Room Permit Administrator
of any of the following facts:
(1)The Applicant, Owner, or Operator was convicted of any level of offense of the following crimes:
a. gambling, gambling promotion, keeping a gambling place, communicating gambling information, possession
of gambling devices or equipment, or possession of gambling paraphernalia as described in Chapter 47 of the
Texas Penal Code;
b. forgery, credit card abuse, or commercial bribery as described in Chapter 32 of the Texas Penal Code;
c. a criminal offense as described in Chapter 34 of the Texas Penal Code;
d. criminal attempt, conspiracy, or solicitation to commit any of the foregoing offenses; or any other offense to
the laws of another state or of the United States that, if committed in this state, would have been punishable as
one or more of the aforementioned offenses; or
e. a criminal offense as described in Chapter 352, Subchapter B of the Texas Local Government Code; and
i. less than two years have elapsed since the date of conviction or the date of release from confinement
imposed for the conviction, whichever is the later date if the conviction is of a misdemeanor offense; or
ii. less than five years have elapsed since the date of conviction or the date of release from confinement for
the conviction, whichever is the later date, if the conviction is of a felony offense.
(2) The Applicant makes a misleading statement in the application for the Game Room permit;
(3)The Applicant is under 18 years of age;
(4)The Applicant, Owner, or operator has had a Game Room permit revoked within the 180-day period
immediately preceding the date the application was filed;
(5)An Applicant is delinquent in the payment to the county of taxes, fees, fines, or penalties assessed or imposed
regarding the operation of a Game Room;
(6)The application or renewal fee required by these Regulations has not been paid;
(7)The Applicant fails to complete the application process within the 60-day period described in subsection 2.1;
(8)The Game Room or any Game Room owned by the same person or entity or a Game Room at the same location
has been involved in an investigation and a search warrant executed for illegal gambling within one year before the
application; or
(9) Any violation of sections 2 or 3 of these Regulations.
(c) If the Game Room Permit Administrator denies a Game Room permit, he or she will send by certified mail or hand
delivery to the Applicant or post on the front exterior door of the Game Room premises a written Notice of the basis for
denial within 14 days of the denial.
8
d
() The Game Room Permit Administrator will wait to issue a Game Room permit until final disposition of any charge of
any of the crimes listed in subsection 2.2(b)(1) that is pending or arises during the investigation period.
(e)Revocation or Suspension of Permit. The Game Room Permit Administrator shall have the authority and power to
initiate a proceeding to revoke or suspend a Game Room permit if one or more of the following events or conditions
have occurred:
(1)any violation of any of the offenses contained in subsection 2.2(b)(1) of these Regulations has occurred on the
premises;
(2)the Applicant provided false, fraudulent, or untruthful information on the original or renewal application form;
(3)the Game Room permitshould not have been issued pursuant to these Regulations;
(4)the Owner or Operator has failed to make corrections ordered by a Fire Safety Official;
(5)the Owner has been convicted of a criminal offense contained in subsection 2.2(b)(1) of these Regulations; or
(6)Any violation of sections 2 or 3 of these Regulations.
(f) If any of the stated events or conditions providing a basis for revocation or suspension of a Game Room permit under
subsection 2.2(e) has occurred, the Game Room Permit Administrator shall document the violation and provide Notice
to Applicant or permit holder of revocation or suspension within 14 days of the date on which the violation was
documented. The Notice shall set out the reasons for the action. The revocation shall become final on the seventh day
after delivery of Notice.
(g) Revocation shall take immediate effect upon Notice by the Game Room Permit Administrator if:
(1)there is a necessity for immediate action to protect the public from injury or imminent danger; or
(2)a Game Room permit was issued based on a misrepresentation in the application and but for the
misrepresentation the Game Room permitwould not have been issued.
2.3 Appeals Hearings
(a) If the Game Room Permit Administrator denies, suspends, or revokes a permit or permit application for a Game
Room, the Applicant or permit holder shall have the opportunity to make a written request for a hearing before a
hearing examiner appointed by the Commissioners Court. The hearing examiner shall not have participated in any
investigation of the alleged grounds for the denial, suspension, or revocation.
(b) All requests for hearings must be in writing and delivered to the Harris County Game Room Permit Administrator
within 14 days of the Notice to Applicant or permit holder. The Applicant waives the right to hearing if the request is not
timely received by the Game Room Permit Administrator.
(c)
The hearing shall be held within 21 days of the receipt of request for a hearing and the Applicant or permit holder
and the Game Room Permit Administrator shall be provided an opportunity to present evidence, cross-examine
witnesses, and be represented by legal counsel. The formal rules of evidence do not apply.
9
(d) It shall be the responsibility of the party requesting the hearing to provide a court reporter for the hearing before the
hearing examiner.
(d) The hearing examiner has the power to uphold or reverse the denial, suspension, or revocation. The hearing
examiner shall issue a written order based on this determination within 21 days of the hearing, and immediately provide
Notice to Applicant or permit holder.
(e) If the hearing examiner determines, based upon the nature of the violations, that a suspension in lieu of revocation is
appropriate, operation of the Game Room permit may be suspended for a period not to exceed six months. The hearing
examiner shall issue a written order suspending the Game Room permit and attaching conditions, if applicable, effective
upon Notice to the Owner.
(f) Upon the finding that subsection 2.2(e)(3), 2.2(e)(4), or 2.2(e)(5) of these Regulations has been violated, revocation of
the Game Room permitshall be mandatory.
(g) The decision of the hearing examiner shall be final. On final decision of the hearing examiner, the losing party may
appeal the decision by filing a petition in a district court in the county within 30 days after the date of the decision.
2.4 Game Room Operation during Pendency of Appeals
(a) If the Applicant appeal to the hearing examiner for revocation or suspension is unsuccessful, the
Game Room shall not operate during the pendency of the appeal to the district court.
(b) If the Applicant or permit holdethe hearing examiner for revocation or suspension is successful, the
Game Room may resume operation, and may operate during the pendency of an appeal to the district court.
(c) No Game Room may operate pending an appeal for denial of a Game Room permit.
2.5 Reapplication
(a) he Applicant may reapply for a
Game Room permit if changes are made to bring the proposed Game Room into compliance with these Regulations.
(b) This application will be considered a new application in regard to the application timelines and fee established in
subsection 2.1.
2.6 Permit Renewal; Permit feelevied; amount; payment
(a) A permit may be renewed for the following year starting 60 days before expiration of the current permit by filing a
completed application for the permit with the Game Room Permit Administrator and paying the applicable fee set forth
these Regulations. A renewal application shall be subject to the same requirement in these Regulations as are required
for a permit application. As long as the completed renewal application was submitted within this 60-day period, the
previous permit will remain in effect until the Game Room Permit Administrator makes a determination in accordance
with these Regulations as to whether the permit will be renewed.
10
(b) The Owner shall pay a non-refundable permit fee of $1,000 as established by Commissioners Court. The permit fees
shall be paid in person to the Game Room Permit Administrator upon application renewal. A receipt of payment and of
renewal application submission will be hand delivered or sent by certified mail to the Owner within 14 days of the
receipt of the non-refundable fee.
2.7 Contents of Permit
When the application process is complete, the Game Room Permit Administrator shall give the Applicant a signed
certificate. The certificate constitutes a permit to Operate the Game Room for one year from the date the permit is
issued. The permit shall list the identity of the issuing Game Room Permit Administrator. The permit shall list the date of
issue and the date of expiration. The permit shall list the name of the permit holder, name of the Game Room, name of
the Owner, and the physical address of the Game Room. If the Owner or permit holder is a corporation, or legal entity,
then the permit shall also list the person asserting control over the legal entity. The permit shall list any applicable
exemptions to the requirements of section 3 for which the permit holder qualified. The Game Room Permit
Administrator shall keep an original signed copy of the permit for the
2.8 Penalty for Operating without a Permit
(a) Any Owner or Operator Operating a Game Room without first paying the fee and securing Game Room permit, or
who Operates a Game Room after the permit therefor has been revoked or suspended, shall be assessed a civil penalty
not to exceed $10,000 per violation. Each day a violation occurs or continues to occur is considered a separate violation.
(b) An Owner or Operator commits a Class A misdemeanor offense if the Owner or Operator intentionally or knowingly
Operates a Game Room in violation of this subsection.
(c) Violation of section 2 is grounds for denial, suspension, or revocation of a Game Room permit.
2.9 Effect
Each Owner, Operator, Applicant, or permit holder under these Regulations must meet and comply with all
requirements of all applicable law and the issuance of a permit under this article shall not excuse the Owner, Operator,
Applicant, or permit holder, his agents or employees or any patrons of such premises from compliance with such laws.
SECTION 3. GAME ROOMS AND AMUSEMENT REDEMPTION MACHINES
3.1 Inspection by Peace Officer
(a) INSPECTION: A Peace Officer is authorized to inspect any business in Harris County for violations of these
Regulations. These Regulations do not authorize a right of entry prohibited by law. Peace Officers may enter a business
with consent, with a warrant, or under exigent circumstances. A Game Room permit granted under these Regulations
gives Peace Officers implied consent to enter to inspect.
(b) UNPERMITTED GAME ROOMS: An unpermitted business that holds itself out as a Game Room, by sign,
advertisement, word-of-mouth, by offering memberships, by offering for play or displaying six or more Amusement
Redemption Machinesor by any other meansis subject to inspection by any Peace Officer and will be considered a
Game Room under these Regulations.
11
(1) Refusal to allow Peace Officers entry to inspect such unpermitted Game Rooms may be considered in
establishing probable cause for the issuance of a search warrant to inspect for violations of these Regulations.
(2) An unpermitted Game Room is subject to these Regulations and may be held liable for all civil and criminal
penalties listed herein.
(c) AMUSEMENT REDEMPTION MACHINES. For the purposes of these Regulations, any electronic, electromechanical, or
mechanical machine that provides the user with an opportunity to receive something of value other than the right of
4
replay that is licensed by the state, county, or city under the Texas Occupations Code is presumed to be an Amusement
Redemption Machine under section 1.4(b) of these Regulations.
(1) Such devices include, but are not limited to, bingo, keno, blackjack, lottery, roulette, video poker, or any 8-liner
or similar electronic, electromechanical, or mechanical games, or facsimiles thereof.
(2) This presumption can only be refuted by a Peace Officer if the machines are determined to be Gambling Devices
as defined by Tex. Penal Code Ann. § 47.01.
(c) COMPLIANCE INSPECTION. A Peace Officer or county employee designated by the Game Room Permit Administrator
may inspect a permitted Game Room located within mine
whether the Game Room, Amusement Redemption Machines, or records required to be kept under recordkeeping
subsection 3.7, comply with these Regulations.
(d) CONSENT TO ENTRY. Any Owner or Operator of a Game Room or other person who does not allow a Peace Officer to
inspect a Game Room, an Amusement Redemption Machine, or records mandated to be kept under subsection 3.7 of
these Regulations as required under the Texas Local Government Code Section 234.136 commits an offense. If a person
violates this subsection, then that person shall be assessed a civil penalty not to exceed $10,000 per violation. Each day a
violation occurs or continues to occur is considered a separate violation.
(e) An Owner or Operator commits a Class A misdemeanor offense if the Owner or Operator intentionally or knowingly
Operates a Game Room in violation of this subsection.
(f) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
3.2 Game Room sign required
(a) It shall be the duty of any Owner or Operator of a Game Room to mark each outside door to a Game Room with a
sign that:
(1) reads GAME ROOM
(2) is legible and visible at all times from a distance of 25 feet from the outside door.
4
Tex. Occ. Code Chapter 2153.
12
(b) If an Owner or Operator violates this subsection, then that person shall be assessed a civil penalty not to exceed
$10,000 per violation. Each day a violation occurs or continues to occur is considered a separate violation.
(c) An Owner or Operator commits a Class A misdemeanor offense if the Owner or Operator intentionally or knowingly
Operates a Game Room in violation of this subsection.
(d) Game Rooms that have been issued an exemption pursuant to subsection 3.13 of these Regulations are exempt from
the Game Room sign requirements.
(e) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
3.3 Fire and life safety
(a) It shall be the duty of any Owner or Operator of a Game Room to provide doors that are readily accessible without
the use of a key, special knowledge, or effort during business hours or any other hours of operation.
(b) It shall be the duty of the Owner or Operator of a Game Room, or commercial establishment, to comply with all
construction or fire codes, and to pay any court-approved fee associated with a fire and life safety inspection, plan
review, occupancy load calculation, or complaint.
(c) All construction and fire code regulations will be strictly enforced and the Game Room Owner or permit holder shall
provide any representative of a fire safety official with immediate access to the premises and Game Room at all times.
(d) No Game Room shall use electronic locks to prevent entry during business hours.
(e) If an Owner or Operator violates this subsection, he or she shall be assessed a civil penalty not to exceed $10,000 per
violation. Each day a violation occurs or continues to occur is considered a separate violation.
(f) An Owner or Operator commits a Class A misdemeanor offense if the Owner or Operator intentionally or knowingly
Operates a Game Room in violation of this subsection.
(g) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
3.4 Transparent, uncovered windows and doors required
(a) Any building, facility, or other place that contains six or more Amusement Redemption Machines must have at least
one window in the front of the building and at least one other window on one other side meeting the criteria set forth in
subsection (b), allowing a clear and unobstructed view of all Amusement Redemption Machines.
(b) It shall be unlawful for any Person to exhibit or display, or to permit to be exhibited or displayed, for commercial use
any Amusement Redemption Machine in a Game Room unless the required transparent walls or windows of the Game
Room:
(1) Are located on at least two sides of the Game Room, and each Amusement Redemption Machine located therein
is visible through such walls or windows; and
(2) At the lowest point are not more than four feet above the adjacent sidewalk or ground level; and
(3) At the highest point are at least eight feet higher than the adjacent sidewalk or ground level; and
13
(4) Are at least four feet wide.
(c) It shall be the duty of any Owner or Operator of a Game Room to provide transparent uncovered glass in each
exterior Game Room window or door.
(d) It shall be unlawful for any Owner or Operator or any other person with permission or at the direction of an Owner
or Operator to cover or tint a Game Room window or door, or otherwise block a window or door so as not to obscure
the view of any Amusement Redemption Machine or the interior of the location from a sidewalk through a Game Room
window or door.
(e) If an Owner or Operator violates this subsection then that person shall be assessed a civil penalty not to exceed
$10,000 per violation. Each day a violation occurs or continues to occur is considered a separate violation.
(f) An Owner or Operator commits a Class A misdemeanor offense if the Owner or Operator intentionally or knowingly
operates a Game Room in violation of this subsection.
(g) Game Rooms that have been issued an exemption pursuant to subsection 3.13 of these Regulations are exempt from
the Game Room windows requirements.
(h) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
3.5 Hours of Operation
(a) A Game Room may operate only between the hours of 8 a.m. and 10 p.m.
(b) The Owner or Operator of a Game Room shall be assessed a civil penalty not to exceed $10,000 for each hour of a
day a Game Room is open during non-operating hours in violation of these Regulations.
(c) An Owner or Operator commits a Class A misdemeanor offense if the Owner or Operator intentionally or knowingly
operates a Game Room in violation of this subsection.
(d) Game Rooms that have been issued an exemption pursuant to subsection 3.13 of these Regulations are exempt from
the Game Room hours of operation requirements.
(e) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
3.6 Display of Game Room Permits
(a) It shall be the duty of any Owner or Operator of a Game Room to post or display a current Game Room permit in
plain sight in a common area accessible to the public without having to enter into a controlled area of the business.
(b) Failure to post or display the original, current Game Room permit will result in the Owner or Operator of the Game
Roombeing assessed a civil penalty not to exceed $10,000 per violation. Each day is considered a separate violation.
(c) An Owner or Operator commits a Class A misdemeanor offense if the Owner or Operator intentionally or knowingly
Operates a Game Room in violation of this subsection.
(d) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
14
3.7 Recordkeeping
(a) It shall be the duty of any Owner or Operator of a Game Room to maintain onsite, and to produce to a Peace Officer
for inspection:
(1)a record for each employee that contains the name, address, date of birth, state identification number or social
security number, job function, W-2 or W-4 form, a copy of application for work with the Game Room, a copy of the I-
9 filed as part of Employment Eligibility Verification for the Department of Homeland Security, and a photograph of
the employee;
(2)a daily register that contains the name, date of birth, state identification number or social security number, and
job function of each employee present at the establishment that day; and
(3)a copy of the Harris County and State of Texas tax record forms detailing each machine found on the premises
by identifying the machine by name of manufacturer, serial number, type of machine, the serial number of the State
of Texas Tax stamp, and the Harris County Tax Stamp to include the year of expiration of each tax stamp required.
(b) An Owner or Operator who violates subsection (a), above, shall be assessed a civil penalty of no greater than $10,000
for each record required under these subsections that is missing. Each day a violation occurs or continues to occur is
considered a separate violation.
(c) The Game Room shall preserve the daily register required by subsection (a)(2) for 90 days after the date the register
was made. The register must be maintained at the Game Room, it must be accessible by the employees on duty, and
must be made available to a Peace Officer upon request. An Owner or Operator who violates this subsection may be
assessed an administrative penalty in the amount of $500 for each register required to be preserved that is missing.
Each day a violation occurs or continues to occur is considered a separate violation.
(d) An Owner or Operator commits a Class A misdemeanor offense if the Owner or Operator intentionally or knowingly
operates a Game Room in violation of this subsection.
(e) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
3.8 Prohibited employment
(a) It shall be unlawful for any Owner or Operator to knowingly employ any person who has been previously convicted
of, entered a plea of nolo contendere or guilty, or received deferred adjudication for an offense involving any gambling
violations set forth in Chapter 47 of the Texas Penal Code.
(b) It is the responsibility of the Owner or Operator to conduct a criminal background check on each potential employee.
(c) Failure to comply with any of the requirements of this section shall result in a violation and be punishable by a civil
penalty assessed against an Owner or Operator not to exceed $10,000 per prohibited employee working at the Game
Roomand/or per employee working at the Game Room without being subjected to a criminal background check.
15
(d) Each day a violation occurs or continues to occur is considered a separate violation for purposes of imposing a
penalty.
(e) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room Permit.
3.9 Distancing restrictions
(a) A Game Room in operation shall not be located:
(1)within 1,500 feet from any existing or planned school, regular place of religious worship, or residential
neighborhood. Planneddevelopment
including but not limited to a permit received, a plat approved, design work started, a bond received, or an order
or
(2)within a distance of 2,000 feet from where two or more other Game Rooms are located.
(b) For the purposes of this subsection, measurements shall be made in a straight line from the nearest portion of the
building or appurtenances used by the Game Room to the nearest portion of the building or appurtenances that are
used for the purposes identified in subsection (a) above.
(c) Game rooms are exempt from these distancing restrictions upon proof that the Applicant continuously Owned and
Operated the Game Room at the same location and under the same name prior to June 1, 2014. If the Game Room
changes its name or Owner after this date, or if its permit was suspended or revoked, or its permit was denied renewal,
or if the permit is allowed to lapse, then the Game Room will be considered a new Game Room and not exempt from the
distancing requirements. All applications claiming a distance exemption under this subsection must be submitted on or
before April 30, 2015.
(d) If an Owner or Operator violates this subsection then that person shall be assessed a civil penalty not to exceed
$10,000 per violation. Each day a violation occurs or continues to occur is considered a separate violation.
(e) The following Game Rooms are exempt from the distancing requirements set forth in this subsection:
(1)Game Rooms that meet the requirements of subsection 3.13(c) below; and
(2)Game Rooms which meet the requirements of subsection 3.9(c) above.
(f) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
3.10 Game Room memberships
(a) An Owner or Operator shall not restrict entry to a Game Room or prohibit the participation in any activity inside a
Game Room by a patron through the requirement of a Game Room membership.
(b) Game Room memberships are prohibited for any purpose.
(c) If an Owner or Operator violates this subsection then that person shall be assessed a civil penalty not to exceed
$10,000 per violation. Each person denied entry is considered a separate violation. Each day a violation occurs or
continues to occur is considered a separate violation.
16
(d) An Owner or Operator commits a Class A misdemeanor offense if the Owner or Operator intentionally or knowingly
Operates a Game Room in violation of this subsection.
(e) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
3.11 Amusement Redemption Machines
(a) It shall be the duty of any Owner or Operator of a Game Room to obtain an occupation tax permit from the Harris
County Tax Assessor-Collector for each Amusement Redemption Machine on their premises.
(1)The annual fee to be paid to the Harris County Tax Assessor-Collector will be 25 percent
per machine.
(2)All Amusement Redemption Machine tax permit applications are required to indicate the location on the
application where the Amusement Redemption Machine is physically located.
(3)Whenever an Amusement Redemption Machine is found not to be in compliance as to tax permits, it shall be
locked by the Tax Assessor-Collector Office or any Peace Officer and cannot be used until the Owner purchases a
tax permit for the machine at a cost of $100, regardless of which quarter of the year the unlock fee is paid, and then
5 per machine.
(4)If a Peace Officer or designated County Employee is not allowed entrance during business hours, a civil penalty
not to exceed $10,000 for each date of denial will be assessed upon an Owner or Operator.
(b) Harris County may assess an owner or operator of a Game Room a civil penalty not to exceed $10,000 if any
Amusement Redemption Machine does not display a current occupation tax decal on it. Furthermore, Harris County
shall be able to assess a civil penalty not to exceed $10,000 on the owner or operator for each machine that is not
registered with a valid current year video tax stamp decal prominently displayed on each machine.
(c) An Owner or Operator commits a Class A misdemeanor offense if the Owner or Operator intentionally or knowingly
operates a Game Room in violation of this subsection.
(d) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
3.12 Illegal machines
(a) It shall be unlawful to keep, exhibit, operate, display, or maintain any gambling device that is prohibited by the
constitution of this state or Chapter 47 of the Texas Penal Code, GAMBLING.
(b) Additionally, a civil penalty not to exceed $10,000 shall be placed on the Owner or Operator of a Game Room for any
machines used for illegal gambling.
(c) If a law enforcement agency determines through investigation that a Game Room was in operation violating the
Texas Penal Code Chapter 47, GAMBLING, then every machine or Gambling Device in the Game Room will be considered
17
in violation. A civil penalty not to exceed $10,000 per machine may be assessed upon an owner or operator of the Game
Room. Each day a violation occurs or continues to occur is considered a separate violation.
(d) Any violation of this subsection is grounds for denial, revocation, or suspension of a Game Room permit.
(e) An Applicant, Owner, or O compliance with these Regulations, including Operating a Game Room under
a permit issued under these Regulations, is not a defense to prosecution for an offense under Chapter 47, Texas Penal
Code.
3.13 Requirements to qualify for Food and Beverage Sales or Charitable Bingo Exemptions
A Game Room permit holder may apply for multiple exemptions.
(a)Any exemption granted must be clearly stated on the Game Room permit.
(b) Charitable Bingo exemption. An Applicant is qualified for a charitable bingo exemption if the Applicant can show a
valid and current Texas Lottery Commission Charitable Bingo License as described in Texas Occupations Code Chapter
2001.
An original certificate or copy of this license presented with the complete Game Room permit application at the time of
application or permit renewal is sufficient to make this showing.
(c) Food and Beverage Sales exemption. An Applicant is qualified for a Food and Beverage Sales exemption if the
Applicant meets all requirements of subsections (1-7) below:
(1) The following words and terms, when used in this subsection, shall have the following meaning unless the
context clearly indicates otherwise:
a. Food or Beverage Service - cooking or assembling food on premises, primarily for on premises consumption.
Commercially pre-packaged items which require no heating, cooking, or assembly and which may be purchased
off-premises do not constitute food or beverage service under this section;
b. Entrée - main dish of a meal;
c. Multiple Entrées - no fewer than eight different entrees per meal period must be available to customers; and
d. Food Service Facilities - a portion of the licensed premises where food is stored and prepared primarily for on
premises consumption.
(2) An Applicant is qualified for a Food and Beverage Sales exemption if the following conditions are satisfied:
a. with respect to the operation of a Game Room, the Applicant's primary business on the premises is Food or
Beverage Service;
b. multiple entrees are available to customers;
18
c. Food Service Facilities are maintained on the premises;
d. the hours of operation for sale and Food or Beverage Service are the same as the hours of operation of the
Game Room; and
e. At least 51 percent net income is derived from the sale of food or beverages.
(3) An Applicant for a food and beverage sale exemption shall submit a sworn statement attesting that Food or
Beverage Service is maintained on the premises and is the primary business on the premises. The Applicant shall
furnish the following:
a. the menu or, if no menu is available, a listing of the food and beverage items;
b. hours of operation of Food or Beverage Service;
c. sales data or, if not available, projection of sales. The projection or data should include sufficient breakdown
of revenues of food, alcoholic beverages, and Game Room operation proceeds;
d. listing of equipment used in preparation and Food or Beverage Service versus the equipment used in
operation of a Game Room;
e. copies of floorplans of the licensed premises indicating areas devoted primarily to the preparation and Food
and Beverage Service and those devoted primarily to operation of a Game Room; and
f. if alcoholic beverages are served, the TABC license or permit as applicable with the TABC food and beverage
certificate as applicable; and
g. the Food Service permit from the appropriate entity.
(4) Applicants for renewal of food and beverage sales exemptions shall resubmit the information required in
subsection 3.13(c)(3)(a-g) above.
(5) Failure to meet all requirements of this subsection or accurately maintain required records is grounds for denial
or revocation of a food and beverage sales exemption.
(6) In verifying that the exemption holder is maintaining Food or Beverage Service as the primary business on the
premises, the Game Room Permit Administrator may examine all books, papers, records, documents, supplies, and
equipment of the exemption holder.
(7) Recordkeeping requirements for holders of food and beverage sales exemptions:
a. each holder of a food and beverage sales exemption shall maintain records to reflect separate totals for
beverage sales, food sales, and other major sales categories at the location, including Amusement Redemption
Machine proceeds. Purchase invoices must be maintained to reflect the total purchases of beverages, food, and
other major purchase categories;
19
b. complimentary food and beverages, including alcoholic beverages, shall not be calculated in determining
whether the premises meets the 51 percent or more food or beverage sales threshold;
c. all records are required to be maintained for four years and made available to authorized representatives of
the Game Room Permit Administrator upon reasonable request; and
d. in examining the food or beverage sales, the Game Room Permit Administrator may compute and determine
the percentage of food and beverage sales upon the basis of information filed with the Game Room Permit
Administrator or held by the permit holder, but if such information is insufficient, the computation and
determination of the percentage of sales may be based upon any records or information which is available.
3.14 Owners of an illegal gaming facility
It is not a defense to prosecution under this section if an Owner does not have the DBAs in his/her name, and/or the
leases or property in their names, but solely that each party has an ownership interest in the business.
3.15 Injunction and Civil Penalty
The County Attorney or its Agent is authorized to sue in district court for an injunction to prohibit the violation or
threatened violation of these Regulations adopted under Texas Local Government Code § 234.133. The County is
entitled to recover reasonable expenses incurred in obtaining injunctive relief, civil penalties, or both, including
mediation fees, and investigatory costs. This civil remedy is cumulative of all
other remedies available to Harris County.
SECTION 4. CUMULATIVE EFFECT OF REGULATIONS; SEVERABILITY
4.1 Cumulative Effect
Authority under these Regulations is cumulative of other authority that Harris County and its incorporated municipalities
have to regulate Game Rooms and does not limit that authority.
4.2 Severability Clause
If a section or subsection of these Regulations, or certain applications of a section or subsection, is found
unconstitutional, the remaining sections or subsections, or applications of those sections or subsections, will continue in
force as law.
20
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
March 23, 2015March 23, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Rosalyn Epting Rosalyn Epting Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Parks & Recreation Parks & Recreation
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
During a Council Meeting in November, Council began a discussion regarding individuals who use City facilities to During a Council Meeting in November, Council began a discussion regarding
individuals who use City facilities to
operate their business. After that meeting staff met to discuss the Cityoperate their business. After that meeting staff met to discuss the Citys current ordinance that pertains
to this s current ordinance that pertains to this
topic. The existing ordinance has not been aggressively enforced in the past. topic. The existing ordinance has not been aggressively enforced in the past.
The existing ordinance states: The existing ordinance states:
Section 50-3 subsection (3) Concessions and sales generally.3 subsection (3) Concessions and sales generally.
No person shall have the right to offer anything for sale or barter, or to exhibit anything, or to conduct any No person shall have the right to offer anything for sale or barter, or
to exhibit anything, or to conduct any
amusement, recreational activity, sports event, or other business for which any participation or admission fee is amusement, recreational activity, sports event, or other business for
which any participation or admission fee is
charged or revenue is otherwise derived within any park, park area, park related facility or rental facility without charged or revenue is otherwise derived within any park, park area,
park related facility or rental facility without charged or revenue is otherwise derived within any park, park area, park related facility or rental facility without charged or revenue
is otherwise derived within any park, park area, park related facility or rental facility without
first obtaining the written consent of the director of parks and recreation.first obtaining the written consent of the director of parks and recreation.
Currently, the City does not stop anyone from holding classes or private lessons in City parks; however, when an Currently, the City does not stop anyone from holding classes or private
lessons in City parks; however, when an
individual calls to guarantee use of a park, staff works with the individual to ensure that the needs of both the individual calls to guarantee use of a park, staff works with the individual
to ensure that the needs of both the
individual and City can be accommodated. Businesses that call in are given the following options to choose from:individual and City can be accommodated. Businesses that call in are
given the following options to choose from:
1.Contract the class with the City and provide a percentage of fees, which guarantees space availability; orContract the class with the City and provide a percentage of fees, which guarantees
space availability; or
2.Rent the space and charge participants a fee, as desired;Rent the space and charge participants a fee, as desired;
3.Partner with the City to develop a winPartner with the City to develop a win--win situation. An example of a partnership would be someone who win situation. An example of a partnership
would be someone who
teaches a class, but does not pay any rental fees. Instead, the person teaches another class for the City at teaches a class, but does not pay any rental fees. Instead, the person
teaches another class for the City at
no charge; and the City collects registration fees for that additional class. no charge; and the City collects registration fees for that additional class.
Note that groups or individuals with contracts or partnerships must have the certifications or experience, as Note that groups or individuals with contracts or partnerships must have
the certifications or experience, as
specified by the City, to teach that class. For those businesses that maintain a contract or partnership with specified by the City, to teach that class. For those businesses that
maintain a contract or partnership with
the City, classes/activities offered by the business are included in City promotional materials (flyers, weekly the City, classes/activities offered by the business are included in City
promotional materials (flyers, weekly
newsletter, website, etc).newsletter, website, etc).
In terms of the Recreation & Fitness Center, personal trainers and basketball coaches obtain memberships In terms of the Recreation & Fitness Center, personal trainers and basketball
coaches obtain memberships
and are allowed to train other members or daily pass users. The City does not endorse any of these and are allowed to train other members or daily pass users. The City does not endorse
any of these
individuals, nor does the City have certification requirements since thereindividuals, nor does the City have certification requirements since theres no agreement with these s no agreement
with these
individuals.individuals.
Some classes currently held in parks that are not regulated by the City include: boot camps, pitching Some classes currently held in parks that are not regulated by the City include:
boot camps, pitching
lessons, tennis lessons, aerobics, basketball, swimming, and horseback riding. This is not an alllessons, tennis lessons, aerobics, basketball, swimming, and horseback riding. This
is not an all--inclusive list; inclusive list;
however, it is what staff has seen occurring most frequently.however, it is what staff has seen occurring most frequently.
Proposed enforcement options for those wishing to operate a business at a City facility:Proposed enforcement options for those wishing to operate a business at a City facility:
1.Continue Status QuoContinue Status Quo
1.Allow businesses to operate in City parks; however, charge fees when guaranteed space or lights is Allow businesses to operate in City parks; however, charge fees when guaranteed space
or lights is
requested. Any use of indoor facilities would need to be done through membership, rental, contract, requested. Any use of indoor facilities would need to be done through membership,
rental, contract,
or partnership.or partnership.
2.Staff will allow all other users to continue and not Staff will allow all other users to continue and not policepolicethem when they are seen.them when they are seen.
3.If damages are found in City parks due to use by a business, City staff would monitor the situation If damages are found in City parks due to use by a business, City staff would monitor
the situation
and address it with the business directly.and address it with the business directly.
2.Work with all businesses and require them to work with us (contract, rental, or partnership)Work with all businesses and require them to work with us (contract, rental, or partnership)
1.Businesses would be talked to if they are seen using City parks. They would be given the Businesses would be talked to if they are seen using City parks. They would be given the
opportunity to set up a contract, rental or partnership with the City.opportunity to set up a contract, rental or partnership with the City.
2.The City would stress a winThe City would stress a win--win partnership where all involved would benefit.win partnership where all involved would benefit.
3.For all contractual or partnership agreements, the business would be required to provide proof of For all contractual or partnership agreements, the business would be required to provide
proof of
liability insurance naming the City as additional insured.liability insurance naming the City as additional insured.
Action Required of Council:Action Required of Council:
Provide input to staff on what direction Council would like staff to take regarding individuals operating their Provide input to staff on what direction Council would like staff to take
regarding individuals operating their
business at City facilities.business at City facilities.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
Council Agenda Item
March 23,2015
9. (a) Receive report of Fiscal Affairs Committee Councilmember Engelken
9. (b) Receive 2014 Comprehensive Annual Financial (CAFR) Report M. Dolby
***********************************************************************************
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
March 23, 2015March 23, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Michael Dolby Michael Dolby Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Finance Finance
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. FY 2014 Comprehensive Annual Financial 1. FY 2014 Comprehensive Annual Financial
Report
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
In accordance with the City charter, the 2014 audit report will be presented to Council by the external auditors In accordance with the City charter, the 2014 audit report will be presented
to Council by the external auditors
Whitley Penn. The audit report provides the City with reasonable assurance that the financial statements are free Whitley Penn. The audit report provides the City with reasonable
assurance that the financial statements are free
of material misstatements. The auditors designed tests that provide evidence that the financial statements conform of material misstatements. The auditors designed tests that provide
evidence that the financial statements conform
to the highest level of accounting standards. The City of La Porte received an unqualified (clean) opinion from the to the highest level of accounting standards. The City of La Porte
received an unqualified (clean) opinion from the
auditors and no management comments.auditors and no management comments.
The City of La Porte has won an award for excellence in financial reporting from the Government Finance The City of La Porte has won an award for excellence in financial reporting
from the Government Finance
Officers Association for 33 consecutive years.Officers Association for 33 consecutive years.
Action Required of Council:Action Required of Council:
None.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
CITY OF LA PORTE, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Year Ended September 30, 2014
Prepared By
Department of Finance
Draft 3/5/2015
CITY OF LA PORTE, TEXAS
TABLE OF CONTENTS
Page
Introductory Section
Letter of Transmittal i
GFOA Certificate of Achievement viii
Organization Chartix
List of Elected and Appointed Officials x
Financial Section
Independent Auditors’ Report
1
Management’s Discussion and Analysis
3
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position 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
Position 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 Position- Proprietary Funds 22
Statement of Revenues, Expenses and Changes in Fund Net Position – 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 52
Notes to Required Supplementary Budget Information 53
Required Pension System Supplementary Information 54
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds:
Combining Balance Sheet 58
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 62
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
Budgetary Comparison Schedules:
Special Revenue Funds:
Debt Service Funds 68
Hotel/Motel Tax 69
Hotel/Motel Tax Draft 3/5/2015
Section 48 Sales Tax 70
Section 48 Sales Tax Section 48 Sales Tax
Tax Increment Reinvestment Zone 71
Tax Increment Reinvestment Zone Tax Increment Reinvestment Zone Tax Increment Reinvestment Zone Tax Increment Reinvestment Zone
Grant Fund 72
Grant Fund Grant Fund
Street Maintenance Sales Tax Fund 73
Emergency Services Sales Tax Fund 74
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:
2006 Certificate of Obligation Bonds 75
2010 Certificate of Obligation Bonds 76
Drainage & Improvements 77
Supplementary Individual Fund Financial Statements and Schedules -
General Fund
Schedule of Revenues – Budget and Actual 80
Schedule of Expenditures – Budget and Actual 81
Combining Financial Statements – Internal Service Funds
Combining Statement of Net Position 88
Combining Statement of Revenues, Expenses and Changes in Fund
Net Position 89
Combining Statement of Cash Flows 90
Exhibit
Unaudited Statistical Section
Net Position by Component 94 1
Changes in Net Position 96 2
Fund Balances of Governmental Funds 100 3
Changes in Fund Balances of Governmental Funds 102 4
Assessed Value and Actual Value of Taxable Property 104 5
Property Tax Rates - Direct and Overlapping Governments 106 6
Principal Property Taxpayers 108 7
Property Tax Levies and Collections 109 8
Ratios of Outstanding Debt by Type 110 9
Ratio of General Bonded Debt to Taxable Value and Taxable Value of all
Property 112 10
Direct and Overlapping Governmental Activities Debt 113 11
Pledged Revenue Coverage 114 12
Demographic and Economic Statistics 115 13
Principal Employers 116 14
Full-Time Employees by Function/Program 117 15
Operating Indicators by Function/Program 118 16
Capital Asset Statistics by Function/Program 120 17
Draft 3/5/2015
INTRODUCTORY SECTION
Draft 3/5/2015
Draft 3/5/2015
March 9, 2015
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, 2014. 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, 2014 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 audit 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,
2014 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
administration of federal awards. These reports are avaadministration of federal awards. These reports are ava 3/5/2015 ilable in the City of La Porte's separately issued
administration of federal awards. These reports are available in the City of La Porte's separately issued
administration of federal awards. These reports are ava
Single Audit Report. GAAP requires that management provide a narrative introduction, overview and
Single Audit Report. GAAP requires that management provide a narrative introduction, overview and Single Audit Report. GAAP requires that management provide a narrative introduction,
overview and Single Audit Report. GAAP requires that management provide a narrative introduction, overview and 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 to accompany the basic financial statemenanalysis to accompany the basic financial statemenanalysis to accompany the basic financial statemenanalysis to accompany the basic
financial statements in the form of Management's Discussion and ts 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
Analysis (MD&A). This letter of transmittal is desiAnalysis (MD&A). This letter of transmittal is desiAnalysis (MD&A). This letter of transmittal is desiAnalysis (MD&A). This letter
of transmittal is designed to complement MD&A and should be read in gned 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
34,553.
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 1B. 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 1B).
The City has also established a section 4 B Sales Tax Corporation (see Note 1B). The City also has
established a Fire Control, Prevention and EMS District (see note 1B). 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. Al lagencies 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
52 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 68. 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 legallybinding construction contracts,
alternatively achieved through bond Draft indenture provisions and legallyindenture provisions and legally 3/5/2015 binding construction contracts,
indenture provisions and legally
alternatively achieved through bond indenture provisions and legallybinding 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, and 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 include: 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.
Strategic Plan
Overview
On October 27, 2012, the Mayor, City Council, City Manager and key staff of the City of La Porte
met together in a retreat planning session. The purpose of that meeting was to establish the Council’s
Strategic Plan for the next five years. A report was prepared outlining the City Council’s Mission,
Vision and Core Values, as well as six overall goals. Each goal had identified objectives and
strategies, with time lines for beginning and completing the goals.
On March 9, 2013, the City Manager and his key staff met. Their purpose was two-fold. First, staff
reviewed and discussed the Mission, Vision and Core Values developed by the City Council and
created Leadership Statements for the staff to follow to ensure their work is consistent with the
value of the City Council. Secondly, staff reviewed and clarified the goals, objectives and
strategies identified by the City Council; if necessary identify additional goals consistent with the
overall mission, vision and values; and establish the framework for an action plan. The result of
their work is documented in this report.
The Strategic Plan will provide a blueprint for action over the next five years. When developing the
annual budget, staff will be tasked with making sure that expenditures and programs further the
goals and Core Values stated in this document. This provides clear direction to the staff as to what
priorities are important to the Council and plans can be made accordingly to make sure that resources
are allocated towards those ends. Additionally, this plan is an excellent communication tool that the
Council and the staff can use when speaking with residents and businesses. Many times, ad hoc
requests can derail longer-term plans. The Strategic Plan outlines a framework for receiving,
prioritizing, and budgeting for resident requests.
All participants, staff and Council, agreed to commit to the success of this plan. A plan only
becomes a useful and working document when all the participants (as a whole and as individuals)
becomes a useful and working document when all becomes a useful and working document when all 3/5/2015 the participants (as a whole and as individuals)
becomes a useful and working document when all the participants (as a
becomes a useful and working document when all
whole and as individuals)
Draft
make a commitment to review it regularly, use it monthly, and modify it as needed. It is a tool that
make a commitment to review it regularly, use it monthly, and modify it as needed. It is a tool that make a commitment to review it regularly, use it monthly, and modify it as needed.
It is a tool that make a commitment to review it regularly, use it monthly, and modify it as needed. It is a tool that make a commitment to review it regularly, use it monthly, and
modify it as needed. It is a tool that
can and should be used regularly to track progress, make notes of variations between
can and should be used regularly to track prcan and should be used regularly to track prcan and should be used regularly to track prcan and should be used regularly to track progress,
make notes of variations between ogress, make notes of variations between
expectations and actuals, of timelines and expenses, to help accomplish each goal, and to hold one
expectations and actuals, of timelines and expensexpectations and actuals, of timelines and expensexpectations and actuals, of timelines and expensexpectations and actuals, of timelines
and expenses, to help accomplish each goal, and to hold one es, to help accomplish each goal, and to hold one
another accountable for updates and completion.
iii
Mission Statement
The Council reviewed and revised the Mission Statement & Vision Statement of the City and the
results are as follows:
The City of La Porte embraces our heritage, community values, and opportunities, while enhancing
the quality of life for our citizens
Vision Statement
To provide improved infrastructure, to drive economic growth, and to enhance quality of life for
our citizens.
Core Values
The City Council wanted to specify the core values under which the City and its staff function. Core
values are the general guidelines that establish the foundation for how an organization will operate.
Staff then discussed these value statements to define and gain an understanding of what those Core
Value meant to staff from a leadership perspective. Staff first discussed what the elements of each
Core Value represented, then prepared a Leadership Statement for each one.
The following are the Core Values of the City of La Porte:
Health & Public Safety:
City employees will ensure the health and safety of our citizens
by providing and maintaining superior public infrastructure and public safety services.
Integrity & Accountability:
City employees will be open, honest and transparent, and be
accountable to the Council so that Council can be responsive to the citizens.
Superior Customer Service:
City employees will proactively provide superior customer service
in a positive and timely manner.
Quality in everything we do:
City employees will strive for superiority in all services we provide.
Goal and Plan Development
During the Council Retreat in October 2012, six goals were developed by the Council, with staff
providing assistance to flesh out the objectives for each. In March 2013, the staff further added “meat
to the bone” to outline more specifically the actions that would be necessary to achieve the stated goals.
The development and implementation of the action plan will serve to provide Council a clear
understanding of how and when each of their goals will be accomplished. The action plan proposes to
do the following:
Identify a team leader: Each Goal needs a champion who will lead the effort to accomplish the
goal and be held accountable for the action plan that is developed. A team leader for each goal
was assigned.
was assigned. Draft 3/5/2015
was assigned.
Identify team members. Likewise each goal needs a larger team, consisting of fellow staff from
Identify team members. Likewise each goal needs Identify team members. Likewise each goal needs Identify team members. Likewise each goal needs Identify team members. Likewise each goal
needs a larger team, consisting of fellow staff from a larger team, consisting of fellow staff from
across all departmental lines where appropriate, to assist in the implementation process.
across all departmental lines whacross all departmental lines where appropriate, to assist inere appropriate, to assist in
ere appropriate, to assist inere appropriate, to assist in the implementation process. the implementation process.
Identify partners. Each team should identify the partners, outside the city organization, who
can provide expertise and resources to accomplish the goal.
Define action steps. Each objective needs defined action steps showing Council how the goal
will be accomplished. The action steps provide the basis for benchmarks.
iv
Prepare a timeline. Timelines were prepared for each of the objectives. Staff will be asked
to review those timelines and recommend adjustments, one the action steps are better
defined.
The Council-identified goals are:
Improve Infrastructure
Preserve Heritage – to preserve the structure and amenities that make La Porte unique
Ensure that all departments and facilities are ready for any disaster
To encourage economic development/retail development
To provide Superior Customer Service
To revitalize blight/146
In addition to the six Council-identified goals, it was agreed that key areas of city
government were not included in the goals identified by Council. Staff was tasked with
discussing other areas where they would establish goals and objectives and bring them to
Council for consideration and approval to include in the Strategic Plan. Several new
goals were identified and are proposed for Council consideration:
To provide and maintain superior public safety
Continue to improve the quality of life through recreational amenities
Create a Neighborhood Preservation Program
Provide diverse and timely communications that promote and influence a positive
public perception of La Porte
One critical component to ensuring that the elements of the Strategic Plan are being implemented is to
provide regular status reports to the City Council. Staff proposes quarterly written reports supplemented
by oral reports or action items for implementation that may be necessary in-between written
reports.
In fiscal year 2014, City staff appointed key department directors to carry out the major components of the
strategic plan. Staff developed a matrix that identifies target dates for completion of the components of the
strategic plan.
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.
Major Initiatives
Public Works has identified major infrastructure improvements needed in the upcoming years,
consequently, we anticipate issuing up to $10 million in certificates of obligation in fiscal year 2015.
Draft 3/5/2015
Long Term Planning
Long Term Planning Long Term Planning
Given the current economy and the uncertainty of the next few years, the City's existing financial position
Given the current economy and the uncertainty of the neGiven the current economy and the uncertainty of the neGiven the current economy and the uncertainty of the neGiven the current
economy and the uncertainty of the next few years, the City's existing financial position xt 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.
v
The city of La Porte is experiencing significant commercial and residential development. Over the past 18
months, multiple restaurants and retail establishments have opened in the City. A large, 30,000 square
foot retail strip center opened and a new developer has begun another retail strip center development with
an estimated value of $7 million.
Additionally, the housing market in the Houston area, which included La Porte, has seen a 10% growth in
the median price of homes. Residential development is underway at the City’s golf course, and a Senior
Housing Project with 180 units is expected. Sens Road is another area of proposed residential
development.
The Panama Canal expansion is bringing about a significant growth in warehouse operations and hotels.
The deepening and widening of the port is prompting expansion of the Barbour’s Cut terminal, which is
located in La Porte, and the Bayport Terminal, which is located 1 mile outside the city limits, to allow
receiving from super container ships. We are also anticipating the opening of the Bayport Cruise terminal,
which is located only 1.5 miles from La Porte. The Princess cruises are starting in November, while
Norwegian is scheduled to start in the spring of 2014. Due to new “fracking” technology of oil and gas
from shale deposits, we anticipate increased growth within our industry corridors as result of exporting
energy to overseas markets.
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
andcurrent 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, 2013.This was the thirty-third 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.
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 pol icy document, a financial
plan, an operations guide and a communications device. Other financial awards to the City are the Popular
Financial Report Award from GFOA, the Investment Policy Award from the Government Treasurer’s
Organization of Texas, the Platinum level of the Financial Transparency Award from the State of Texas
Organization of Texas, the Platinum level of the FiOrganization of Texas, the Platinum level of the Fi 3/5/2015 nancial Transparency Award from the State of Texas
nancial Transparency Award from the State of Texas
Organization of Texas, the Platinum level of the Fi
Organization of Texas, the Platinum level of the Fi
Draft
Comptroller and the Achievement of Excellence in Procurement Award from the National Procurement
Comptroller and the Achievement of Excellence inComptroller and the Achievement of Excellence inComptroller and the Achievement of Excellence inComptroller and the Achievement of Excellence
in Procurement Award from the National Procurement Procurement Award from the National Procurement
Institute.
vi
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 depa1iment. 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,
3/5/2015
vii
Draft 3/5/2015
viii
CITY OF LA PORTE
Organizational Chart
Draft 3/5/2015
ix
CITY OF LA PORTE, TEXAS
LIST OF ELECTED AND APPOINTED OFFICIALS
For the year ended September 30, 2014
Elected Officials Position
Louis Rigby Mayor
Danny Earp 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 Council Member – At Large A
Dottie Kaminski Mayor Protem– 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
Draft 3/5/2015
x
FINANCIAL SECTION
Draft 3/5/2015
Draft 3/5/2015
INDEPENDENT AUDITORS’ REPORT
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, 2014, which collectively comprise the City’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. 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 from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinion
Draft 3/5/2015
In our opinion, the financial statements referred to above present fairly, in all material respects, the
In our opinion, the financial statements referred toIn our opinion, the financial statements referred toIn our opinion, the financial statements referred toIn our opinion, the financial
statements referred to above present fairly, in all material respects, the above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
respective financial position of the governmental activrespective financial position of the governmental activrespective financial position of the governmental activrespective financial
position of the governmental activities, the business-type activities, each major fund, ities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City, as of September 30, 2014, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
1
To the Honorable Mayor and
Members of City Council
City of La Porte, Texas
Other Matters
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 52 through 54, 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 and schedules 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 and schedules are fairly stated in all material respects in relation to the financial statements as
a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report date March 23, 2015,
on our consideration of the City of La Porte, Texas 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 testing of internal controls 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 in considering City of La Porte, Texas
internal control over financial reporting and compliance.
Houston, Texas
March 23, 2015
Draft 3/5/2015
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, 2014. 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 position presents information on all of the City’s assets, deferred outflows of
resources, liabilities and deferred inflows of resources, with the difference between the four reported as
net position.Over time, increases or decreases in net position 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 position changed during the
most recent fiscal year. All changes in net position 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.
Draft 3/5/2015
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 13 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 10 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 50 of this report.
the financial statements can be found Draft on pages 25 through 50 of this report. on pages 25 through 50 of this report. 3/5/2015
on pages 25 through 50 of this report.
on pages 25 through 50 of this report.
the financial statements can be found
Other Information.
In addition to the basic financial statements and accompanying notes, this report also
In addition to the basic financial statemen In addition to the basic financial statemen In addition to the basic financial statemen In addition to the basic financial statements and
accompanying notes, this report also ts and accompanying notes, this report also
Other Information.Other Information.
presents certain required supplementary information concerning the City's progress in funding its
presents certain required supplementary informatipresents certain required supplementary informatipresents certain required supplementary informatipresents certain required supplementary
information concerning the City's progress in funding its on 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 52 through 54 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 58 of the City's Comprehensive Annual Financial Report.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of the City's financial position. For
the City, assets and deferred outflows exceed liabilities and deferred inflows by $124.7 million as of
September 30, 2014, in the primary government as follows:
Condensed Schedule of Net Position
September 30, 2014 and 2013
Amounts in (000's)
Governmental ActivitiesBusiness-type ActivitiesTotals
201420132014201320142013
Assets
Current and other assets
$ 59,22760,457$ 7,400$ 67,857$ 65,470
$ $ 6,244
Capital assets
78,53676,43038,086 40,153116,622 116,582
Total Assets
138,994 45,485 46,396 184,479 182,053
135,656
Deferred Outflows of Resources
Deferred charge on refunding 1,212791- - 1,212 791
Total deferred outflows of resources
1,212 791 - 1,212 791
-
Liabilities
Other liabilities
6,3125,4391,1161,0537,428 6,492
Long-term liabilities outstanding49,66550,2723,8914,59253,557 54,864
Total Liabilities
55,71155,977 5,007 5,645 60,984 61,356
Deferred Inflows of Resources
Deferred gain on refunding -57 7
- 5
Total deferred inflows of resources
- 7
- 5 7 5
Net Position:
Net investment in capital assets
54,50649,30435,873 90,379 85,651
36,347
Restricted 11,0888,9021,413 2,096 12,500 10,998
Unrestricted 18,635 22,530 3,187 2,301 21,822 24,831
Total Net Position
$ 84,229$ 80,736$ 40,744$124,701$ 121,480
$ 40,473
Net Investment in Capital Assets
The largest portion of the City's net position (72%) reflects its investment 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
Draft 3/5/2015
these assets are not available for
these assets are not available for
services to citizens; consequently, future spending. Although the City's
investment in its capital asse Draft ts is reported net of rela 3/5/2015 ted debt, it should be noted that the resources needed to
investment in its capital assets is reported net of related debt, it should be noted that the resources needed to
ts is reported net of rela
repay this debt must be provided from other sour Draft 3/5/2015 ces, since the assets themselves cannot be used to
repay this debt must be provided from other sourrepay this debt must be provided from other sources, since the assets themselves cannot be used to
3/5/2015
liquidate these liabilities. Draft
liabilities.
Restricted Net Position
A portion of the City's net position, $12.5 million or 10% 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 Position
The remaining balance is unrestricted net position, $22 million or 17%, 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, 2014,
with comparative totals for the year ended September 30, 2013. Governmental activities increased the
City’s net position by $3.5 million. Business-type activities decreased net position by $272 thousand.
Condensed Schedule of Changes in Net Position
For the Years Ended September 30, 2014 and 2013
Amounts in (000's)
Governmental ActivitiesBusiness-type ActivitiesTotals
201420132014201320142013
Revenues
Program revenues:
Charges for services8,036$ 9,170$16,922$17,045
$ $ 7,874$ 8,885
Operating grants and contributions
2,015849
849 - 2,015
Capital grants and contributions
--1,398
1,1261,398 1,126
General revenue:
Property taxes 19,92517,782--17,782
19,925
Other taxes 12,35710,902--10,902
12,357
Industrial payments 11,55511,108--11,108
11,555
Investment earnings 106858115
9 93
Miscellaneous 459468
432 10136 560
Total Revenues
54,45359,645
49,032 10,120 10,612 64,573
Expenses
General Government
14,11513,854--13,854
14,115
Public Safety
20,43617,765--17,765
20,436
Public Works
6,2604,451- -4,451
6,260
Culture and Recreation
5,8555,722- -5,722
5,855
Health, Welfare and Sanitation
2,5192,328- -2,328
2,519
Interest on Long-term debt
1,4041,384- -1,384
1,404
Water Services --8,206
7,7318,206 7,731
Sewer services --2,599
2,8022,599 2,802
Airport --210
230210 230
Total Expenses
50,58956,520
45,505 10,762 11,015 61,351
Increase (decrease) in net position
before transfers
3,8643,526 (403)3,123
( 643) 3,221
Transfers
(371)720371(720)-
-
Increase (decrease) in net position
3,4934,246(272)3,123
( 1,123) 3,221
Net position - beginning
80,736118,357
76,490 40,74441,867 121,480
Net position - ending
$ 84,229
Draft $ 84,229 3/5/2015
84,229
$$$ 888000,,,777333666$$$ 444000,,,444777333$$$ 444000,,,777444444$ 124,701$ 121,480
Draft 3/5/20153/5/20153/5/20153/5/20153/5/2015
Draft 3/5/20153/5/20153/5/20153/5/20153/5/2015
At the end of the current fiscal year, the City is able to report positive balances in all three categories of
At the end of the current fiscal year, the City is able to report positive balances in all three categories of At the end of the current fiscal year, the City is able to report positive
balances in all three categories of At the end of the current fiscal year, the City is able to report positive balances in all three categories of At the end of the current fiscal year,
the City is able to report positive balances in all three categories of
net position, 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:
6
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
Expenses and Program Revenues -Governmental Activities
25,000
20,000
Expenses
Program Revenues
15,000
10,000
5,000
0
GeneralPublicPublicCulture andHealth,Interest on
GovernmentSafetyWorksRecreationWelfare andLong-term
Sanitationdebt
Revenue sources for governmental activities were distributed as follows:
Revenues by Source -Governmental Activities
Grants and
Charges for
contributions
services
4%
15%
Other taxes
23%
Property taxes
37%
Industrial
payments
21%
For the year ended September 30, 2014, revenues without transfers in the governmental activities
totaled $54.4 million. This represents an increase of approximately $5.4 million or 11%.
Draft 3/5/2015
7
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
Business-type Activities.
Revenues without transfers in the business-type activities totaled $10.1 million,
a $492 thousand decrease from the prior year. This decrease is due to a decrease in charges for services
and 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
$7,000
$6,000
Expenses
$5,000
Program Revenues
$4,000
$3,000
$2,000
$1,000
$-
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
$47.1 an increase $1.7
ending fund balances ofmillion,offrom the prior year. This increase is due to
an increase in sales and use taxes, intergovernmental revenues, property taxes, and industrial payments.
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 $21.3 million, an increase of $2.4 million for commitments for
construction. 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 59%
of total general fund expenditures and total fund balance represents 71% of the same.
The Debt Service fund had a total fund balance of approximately $2.8 million, all of which is restricted
for the payment of debt service. The net increase in fund balance from the prior year of $278,423 was due
to a debt refunding.
to a debt refunding. 3/5/2015
to a debt refunding.
The Capital Projects Fund experienced a decrease in Draft 3/5/2015 fund balance in the amount of $2,623,779 . This was a
fund balance in the amount of $2,623,779 . This was a
The Capital Projects Fund experienced a decrease in The Capital Projects Fund experienced a decrease in
planned decrease as the Draft City utilized bond funds to construct 3/5/2015 and acquire various capital assets.
planned decrease as the City utilized bond funds to construct City utilized bond funds to construct and acquire various capital assets.
8
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
Proprietary Funds.
The City’s proprietary funds provide the same type of information found in the
government-wide financial statements.
Unrestricted net position of the respective proprietary funds are Utility - $591 thousand, La Porte Area
Water Authority - $2.2 million and Airport - $366 thousand. The changes in net position of the
proprietary funds for 2014 was as follows: Utility - decrease of $634 thousand, La Porte Area Water
Authority - increase of $535 thousand and Airport - decrease of $173 thousand.
General Fund Budgetary Highlights
Actual revenues exceeded the final General Fund budgeted revenues by $1,123,864. Sales and use tax
and miscellaneous revenue exceeded the projected budget by $376,955 and $216,379 respectively.
License and fees and fines and forfeitures also exceeded budget by $117,076 and $122,591 respectively.
Total appropriations exceeded expenditures by $977,508, the majority of which can be attributed to five
departments. Administration had a positive variance in the amount of $148,573 due to open positions and
reduction in special programs. Planning and engineering had a positive variance in the amount of
$290,638 due to open positions. The variance in Fire and Police for $151,929 and $188,976 was due to
open positions in the department. Culture and recreation had a positive variance of $115,523 due to open
positions.
Capital Asset and Debt Administration
Capital Assets.
The City’s investment in capital assets for its governmental and business type activities
,
as of September 30, 2014 amounted to $116.6 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 $39 thousand. The following table shows
capital asset activity for the 2014 fiscal year (in 000’s):
Governmental ActivitiesBusiness-Type ActivitiesTotals
201420132014201320142013
Land
9,556$ 428$ 428$ 9,900
$ $ 9,472$ 9,984
Construction in progress
11,74012,8571784,07311,918 16,930
Infrastructure
-
14,26015,472 15,47214,260
-
Buildings and improvements
33,27630,91734,35335,31367,629 66,230
Machinery and equipment
9,7047,7123,12733912,830 8,051
Total Capital Assets
$ 76,43078,536$ 38,086$ 40,153$ 116,622$ 116,583$
Major capital asset events during the current year include the reporting of a drainage master plan study.
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
3/5/2015
projects. Additional information on capital asset activity can be found in note 5 to the financial
projects. Additional information on capital asset ac
Draft
statements. Draft 3/5/2015
Draft 3/5/2015
9
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
Long-term Debt.
At the end of the current fiscal year, the City had total bonded debt outstanding of
$36.1$34.0
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 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 “NR”, “AA”, “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 5.0 percent which is an decrease from the
rate of 6.4 percent a year ago. This is slightly higher than the state’s average unemployment rate of 4.9
percent which is less than the national average of 5.9 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 $2.6 billion for fiscal year 2014. The trend
for total assessed values has fluctuated slightly over the past five years resulting in a total increase of 10
percent.
Assessed property values trends (in billions):
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Draft 3/5/2015
10
CITY OF LA PORTE, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
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.
Draft 3/5/2015
11
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Draft 3/5/2015
12
BASIC FINANCIAL STATEMENTS
Draft 3/5/2015
13
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Draft 3/5/2015
14
CITY OF LA PORTE, TEXAS
TATEMENT OF NET POSITION
S
eptember 30, 2014
S
Primary Government
Governmental Business-type
ActivitiesActivitiesTotal
Assets
Cash and equivalents32,704,844$ 2,012,073$ 34,716,917$
Investments20,896,798 3,272,518 24,169,316
Receivables, net of allowance for uncollectibles
878,4635,646,554 6,525,017
Due from Other Governmental Agencies1,073,879 - 1,073,879
Inventories135,197 6,000 141,197
Restricted cash and equivalents- 1,230,457 1,230,457
Capital assets:
Capital assets not subject to depreciation21,296,360 605,786 21,902,146
Capital assets, net of accumulated depreciation
37,479,74257,240,002 94,719,744
Total Capital Assets
38,085,52878,536,362 116,621,890
Total Assets
45,485,039138,993,634 184,478,673
Deferred Outflows of Resources
Deferred charge on refunding 1,212,342 - 1,212,342
Total deferred outflows of resources
-1,212,342 1,212,342
Liabilities
Accounts payable and accrued liabilities
560,5626,185,641 6,746,203
Accrued interest
5,77047,173 52,943
Unearned revenues29,670 - 29,670
Customer deposits- 548,210 548,210
Other liabilities49,082 1,500 50,582
Long-term liabilities:
Due within one year
929,4153,432,781 4,362,196
Due in more than one year46,232,491 2,961,97749,194,468
Total Liabilities
5,007,43455,976,838 60,984,272
Deferred Inflows of Resources
Deferred gain on refunding - 5,031 5,031
Total deferred inflows of resources - 5,031 5,031
Net Position
Net investment in capital assets 54,506,024 35,872,947 90,378,971
Restricted for:
Debt service
3,694,192 1,413,314 5,107,506
Economic development
3,466,985 - 3,466,985
Draft 3/5/2015
Grants
402,925 - 402,925
402,925402,925
-
Public safety
1,738,951 - 1,738,951
1,738,9511,738,951
-
Public works
1,785,180 - 1,785,180
1,785,1801,785,180
Unrestricted 18,634,881 3,186,313 21,821,194
Total Net Position
$ 84,229,138$ 40,472,574$124,701,712
See Notes to Financial Statements.
15
CITY OF LA PORTE, TEXAS
TATEMENT OF ACTIVITIE
SS
For the Year Ended September 30, 2014
Program Revenue
Operating Capital Grants
Charges for Grants and and
ContributionsContributions
ExpensesServices
Functions/Programs
Primary government
Governmental Activities:
General Government14,115,210$ 825,532$ 2,982$ -$
Public Safety20,436,4503,208,256 545,738 -
Public Works6,259,764 269,830 258,119 -
Culture and Recreation5,854,546 1,509,412 1,207,958 292
Health, Welfare and Sanitation2,519,298 2,223,234 - -
Interest on Long-term debt1,403,628- - -
Total governmental activities
8,036,26450,588,896 2,014,797 292
Business-type activities:
Water Services7,731,776 5,406,545 - 1,125,777
Sewer services2,802,013 3,422,627 - -
Airport229,603 56,157 - -
Total business-type activities
8,885,32910,763,392 - 1,125,777
Total primary government
$ 16,921,59361,352,288$ 2,014,797$ 1,126,069$
General revenues:
Taxes:
Property taxes
Sales and use taxes
Industrial payments
Franchise taxes
Unrestricted investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Net position - ending
See Notes to Financial Statements.
Draft 3/5/2015
16
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental Business-type
ActivitiesActivities
Total
$ -(13,286,696)$ (13,286,696)$
-(16,682,456) (16,682,456)
-(5,731,815) (5,731,815)
-(3,136,884) (3,136,884)
-(296,064) (296,064)
-(1,403,628) (1,403,628)
-(40,537,543) (40,537,543)
(1,199,454)- (1,199,454)
620,614- 620,614
(173,446)- (173,446)
(752,286)- (752,286)
(752,286)(40,537,543) (41,289,829)
19,925,095- 19,925,095
10,104,500- 10,104,500
11,554,949- 11,554,949
2,252,404- 2,252,404
8,624106,024 114,648
100,795458,770 559,565
371,039(371,039)
-
44,030,703 480,458 44,511,161
3,493,160 (271,828) 3,221,332
80,735,97840,744,402121,480,380
$ 84,229,138$ 40,472,574$124,701,712
Draft 3/5/2015
17
CITY OF LA PORTE
BALANCE SHEET
GOVERNMENTAL FUNDS
eptember 30, 2014
S
Capital Other Total
Debt Service Improvements Governmental Governmental
General FundFundFundFundsFunds
Assets
Cash and cash equivalents
$ 2,768,92220,004,445$ 2,093,121$ 6,582,371$ 31,448,859$
Investments
-12,700,474 1,357,977 3,241,744 17,300,195
Receivables, net of allowance for
uncollectibles
23,8984,455,101 1,783 1,049,925 5,530,707
Due from other governments
- 1,060,174- 1,060,174
-
Due from other funds
- - 662,000 662,000
-
Inventories
102,775 - 102,775
- -
Total Assets$37,262,795$ 3,452,8812,792,820$$12,596,214$56,104,710
Liabilities and Fund Balances
Liabilities:
Accounts payable$4,058,981$ -$442,165$ 388,809$ 4,889,955
Accrued salaries payable555,991 13,146 569,137
- -
Due to others - - 48,867 - 48,867
Due to other funds - - 662,000 662,000
-
Unearned revenue - Grants - 26,707 26,707
- -
Other payables - 98,186 98,186
- -
Total Liabilities4,614,972 -491,0321,188,848 6,294,852
Deferred Inflows of Resources:
Unavailable revenue - property taxes172,56623,898 - 196,464
Unavailable revenue - fines and fees558,086 - 558,086
Unavailable revenue - EMS1,142,597 1,142,597-
Unavailable revenue - other 799,234 - 799,234
Total Deferred Inflows of Resources2,672,48323,898 2,696,381-
-
Fund balances:
Nonspendable:
Inventories102,775 - 102,775
- -
Restricted
Debt service 2,768,922- - 948,545 3,717,467
Grants - - 402,925 402,925
-
Economic development - 3,466,985- 3,466,985
-
Public safety - 1,738,951- 1,738,951
-
Capital projects - 3,065,570- 3,065,570
-
Public works - 1,785,180- 1,785,180
-
Committed:
Construction7,000,000 2,961,849- 9,961,849-
Health Funds1,500,000 1,500,000-
Assigned:
Assigned for encumbrances 78,182 - 78,182
- -
Unassigned21,294,383 - 21,293,593(790)
-
Total Fund balances29,975,3402,961,84911,407,36647,113,477
2,768,922
Total Liabilities, Deferred Inflows,
Total Liabilities, Deferred Inflows,Draft 3/5/2015
and Fund Balances
$37,262,795$ 3,452,8812,792,820$$12,596,214$56,104,710
$$ 3,452,881$ 3,452,881$ 3,452,881$ 3,452,881$ 3,452,881$
37,262,79537,262,79537,262,79537,262,7952,792,8202,792,82012,596,21412,596,214
Draft 3/5/20153/5/20153/5/20153/5/2015
Draft 3/5/20153/5/20153/5/20153/5/2015
SeeNotes to Financial Statements.
Notes to Financial Statements.Notes to Financial Statements.
18
CITY OF LA PORTE
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
STATEMENT OF NET POSITION
eptember 30, 2014
S
Total fund balance, governmental funds
$ 47,113,477
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and therefore are not
reported in this fund financial statement, but are reported in the governmental activities of the Statement
of Net Position.
70,521,317
Certain other long-term assets (property taxes receivable and adjudicated court fines receivable) are not
available to pay current period expenditures and therefore are not reported in this fund financial
statement, but are reported in the governmental activities of the Statement of Net Position.
2,693,418
Some liabilities and deferred outflows, are not due and payable in the current period and are not included
in the fund financial statement, but are included in the governmental activities of the Statement of Net
Position.
Bonds payable
(23,110,000)
Certificates of Obligation Payable
(10,845,000)
Premium or discount on bonds payable
(1,155,953)
Deferred charge on refunding
1,212,342
Accrued interest governmental activity debt
(47,173)
Compensated absences
(3,098,590)
Net pension and OPEB Obligation
(11,398,696)
The assets and liabilities of certain internal service funds are not included in the fund financial statement,
but are included in the governmental activities of the Statement of Net Position.
12,343,996
Net Position of Governmental Activities in the Statement of Net Position
$ 84,229,138
See Notes to Financial Statements.
Draft 3/5/2015
19
CITY OF LA PORTE
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended September 30, 2014
Capital Other Total
Debt Service Improvements Governmental Governmental
General FundFundFundFundsFunds
Revenues
Property taxes
$ 2,482,67515,286,420$ -$ 2,156,273$ 19,925,368$
Sales and use taxes
4,686,476 4,631,296-9,317,772
-
Franchise taxes
2,252,404 2,252,404-
- -
Industrial payments
11,554,949 11,554,949-
- -
Other taxes
87,074 -699,673786,747
-
Licenses and permits
497,756-497,756
- -
Fines and forfeits
1,594,391 -196,4581,790,849
-
Charges for services
5,619,555-174,345511,2276,305,127
Intergovernmental
- 1,572,360-1,572,360
-
Interest
67,519 8,84711,33196,409
8,712
Miscellaneous
256,379 -4,825261,204
-
Total Revenues
41,902,923183,1929,783,44354,360,945
2 ,491,387
Expenditures
Current:
General government
9,557,118 2,507,446-1,763,61513,828,179
Public safety
16,032,688 1,395,352-17,428,040
-
Public works
2,916,716-10,014505,8533,432,583
Health and sanitation
2,334,184 2,334,184-
- -
Culture and recreation
5,381,609 -59,1155,440,724
-
Debt Service:
-
Principal
2,640,000- 2,640,000-
-
Interest and other charges
1,217,883- 1,217,883-
-
Bond issuance costs
153,884153,884
Capital outlay
- 2,448,648-2,997,6395,446,287
Total Expenditures
36,222,3154,966,1086,721,57451,921,764
4,011,767
Excess (deficiency) of revenues
over expenditures
5,680,608(1,520,380)(4,782,916)3,061,8692,439,181
Other Financing Sources (Uses)
Refunding bonds issued
9,300,000- 9,300,000-
-
Premium on general obligation debt
608,166--608,166
-
Payments to escrow agent
(9,749,587)(9,749,587)
Transfers in
107,8391,640,2242,159,1374,7903,911,990
Transfers out
(3,398,574) (1,362,750)-(4,761,324)
-
Proceeds from sale of land
500500
- - -
Total other financing sources
and uses
(3,290,235)1,798,8032,159,137(1,357,960)(690,255)
Net change in fund balances
2,390,373278,423(2,623,779)1,703,9091,748,926
Fund balances - beginning
27,584,9672,490,4995,585,6289,703,45745,364,551
Fund balances - beginning 27,584,9672,490,4995,585,6289,703,45727,584,9672,490,4995,585,6289,703,457
27,584,9672,490,4995,585,6289,703,457
27,584,9672,490,4995,585,6289,703,457
Fund balances - beginning
3/5/2015
Draft Draft 3/5/20153/5/20153/5/20153/5/20153/5/20153/5/20153/5/20153/5/2015
Fund balances - ending
$29,975,340$2,961,849$11,407,366$47,113,477
Fund balances - endingFund balances - ending
$$$$
29,975,34029,975,34029,975,3402,961,8492,961,84911,407,36611,407,366
29,975,340
$$$ 222,,,777666888,,,999222222
Draft 3/5/20153/5/20153/5/20153/5/2015
Draft 3/5/20153/5/20153/5/20153/5/2015
See Notes to Financial Statements.
20
CITY OF LA PORTE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2014
Net change in fund balances - total governmental funds:
$ 1,748,926
Amounts reported for Governmental Activities in the Statement of Activities are different
because:
Governmental funds report outlays for capital assets as expenditures because such outlays
use current financial resources. In contrast, the Statement of Activities reports only a
portion of the outlay as expense. The outlay is allocated over the assets' estimated useful
lives as depreciation expense for the period.
This is the amount by which capital outlays $5,424,007 exceeded depreciation $3,907,042
in the current period.
1,516,965
Governmental funds report the entire net sales price (proceeds) from the sale of an asset as
revenue because it provides current financial resources. In contrast, the Statement of
Activities reports only the gain on the sale of assets. Thus, the change in net assets differs
from the change in fund balance by the book value of the assets sold and disposed.
(672,340)
Governmental funds do not present revenues that are not available to pay current
obligations. In contrast, such revenues are reported in the Statement of Activities when
earned.
82,534
Repayment of bond principal is an expenditure in the governmental fund, but the repayment
of principal reduces long-term liabilities in the statement of net assets.
2,640,000
Proceeds from the issuance of long-term debt and premium on long-term debt are reported
as other financing sources in the governmental funds. In the government-wide statements,
proceeds are treated as an increase in long-term liabilities.
(9,908,166)
Amounts paid to refunding agent are reported as other financing uses in the governmental
funds. In the government-wide financial statements, amounts paid to refunding agent are
treated as a decrease in long-term liabilities.
9,749,587
Some expenses reported in the statement of activities do not require the use of current
financial resources and these are not reported as expenditures in governmental funds:
Change in accrued interest payable
8,557
Change in refunding loss
(90,308)
Change in premiums and discounts on issuance of bonds.
49,890
Change in NPO and OPEB Obligation
(1,530,789)
Change in Compensated Absences
124,091
Internal service funds are used by management to charge the costs of certain activities, such
as fleet maintenance and information technology, to individual funds. The net revenue
(expense) of certain internal service funds is reported with governmental activities.
(225,787)
(expense) of certain internal service funds is reported with governmental activities.(expense) of certain internal service funds is reported with governmental activities.3/5/2015
(expense) of certain internal service funds is reported with governmental activities.
(expense) of certain internal service funds is reported with governmental activities.
Draft
3/5/2015
3/5/2015
Change in net position of governmental activities
$ 3,493,160
Change in net position of governmental activities Change in net position of governmental activities Change in net position of governmental activities
$ $
Change in net position of governmental activities
3/5/2015
3/5/2015
See Notes to Financial Statements.
21
CITY OF LA PORTE
TATEMENT OF NET POSITION
S
ROPRIETARY FUNDS
P
eptember 30, 2014
S
Governmental
Business-type ActivitiesActivities
Internal Service
Utility FundLPAWAAirportTotalsFund
Assets
Current Assets:
Cash and cash equivalents
$ 856,608932,300$ 223,165$ 2,012,073$ 2,950,971$
Investments
1,692,9521,435,456 144,110 3,272,518 1,901,617
Accounts receivable, net of allowance for
doubtful accounts
182,551690,192 2,404 875,147 127,056
Accrued interest receivable
1,6731,454 189 3,316 2,496
Inventories
6,000 - 6,000 32,422
-
Restricted cash and cash equivalents
540,735 689,722 - 1,230,457 -
Total Current Assets
3,606,137 3,423,506 369,868 7,399,511 5,014,562
Non-current Assets:
Capital Assets:
Land and improvements
224,308 - 203,504 427,812 -
Construction in progress
177,974 - 177,974 -
-
Buildings and improvements
57,620 - 57,620 -
-
Improvements other than buildings
66,734,724 15,429,680 5,778,399 87,942,803 -
Vehicles and equipment
3,549,084 6,130 - 3,555,214 16,022,421
Less Accumulated depreciation
(41,363,920) (9,090,984) (3,620,991) (54,075,895) (8,007,376)
Total Non-current Assets
29,379,790 6,344,826 2,360,912 38,085,528 8,015,045
Total Assets
32,985,927 9,768,332 2,730,780 45,485,039 13,029,607
Liabilities
Current Liabilities:
Accounts payable
377,431 46,595 951 424,977 29,176
Accrued salaries payable
113,943 - 1,205 115,148 24,053
Unearned Revenue
- 745
Other current liabilities
20,437 - 1,730 22,167 -
Interest payable
3,654 2,116 - 5,770 -
Customer deposits
548,210 - 548,210 -
-
Claims and judgments
- - 575,349
- -
Long-term debt, current portion
Compensated absences
16,915 - - 16,915 -
Bonds payable
262,500 650,000 - 912,500 -
Total Current Liabilities
1,343,090 698,711 3,886 2,045,687 629,323
Non-current Liabilities:
Compensated absences
194,517 - 194,517 57,033
-
Net pension obligation
276,555 - 276,555 -
-
OPEB obligation
1,195,625 - 1,195,625 -
-
Bonds payable
262,500 1,032,550 - 1,295,050 -
Total Non-current Liabilities
1,929,197 1,032,550 - 2,961,747 57,033
Total Liabilities
3,272,287 1,731,261 3,886 5,007,434 686,356
Deferred Inflows of Resources
Deferred gain on refunding
- 5,031 - 5,031 -
Total deferred inflows of resources
- 5,031 - 5,031 -
3/5/2015
Net Position
Net investment in capital assets
28,173,567 4,657,245 2,360,912 35,191,724 8,015,045
Net investment in capital assetsNet investment in capital assets
28,173,56728,173,56728,173,56728,173,5674,657,2454,657,2452,360,9122,360,91235,191,72435,191,724
Restricted for debt service
949,018 1,147,160 - 2,096,178 -
949,018949,018949,0181,147,1601,147,1602,096,1782,096,178
-
Unrestricted 591,055 2,227,635 365,982 3,184,672 4,328,206
Total Net Position
$ 29,713,640$ 8,032,040$ 2,726,894$ 40,472,574$ 12,343,251
See Notes to Financial Statements.
22
CITY OF LA PORTE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For the Year Ended September 30, 2014
Governmental
Business-type ActivitiesActivities
Total Enterprise Internal Service
Utility FundLPAWAAirportFundsFund
Revenues
Charges for services7,755,333$ 1,195,886$ 56,158$ 9,007,377$ 8,193,412$
Total Operating Revenues
1,195,8867,755,333 56,158 9,007,377 8,193,412
Operating Expenses
Personnel services3,299,698 - 23,918 3,323,616 818,468
Supplies and materials280,124 1,015 - 281,139 495,074
Purchased water- 850,142 - 850,142 -
Repairs and maintenance- - 6,536 6,536 -
Other services and charges3,382,093 29,332 31,415 3,442,840 6,472,406
Depreciation2,164,844 465,000 167,734 2,797,578 1,072,824
Total Operating Expenses
1,345,4899,126,759 229,603 10,701,851 8,858,772
Operating income(1,371,426) (149,603) (173,445) (1,694,474) (665,360)
Non-operating Revenues (Expenses)
Earnings on investments3,176 4,854 593 8,623 9,616
Gain (loss) on disposal of capital assets(21,252) - (21,252) (31,955)
-
Interest expense (22,903) (38,638) - (61,541) -
Total Non-operating Revenue (Expenses)
(40,979) (33,784) 593 (74,170) (22,339)
Income before contributions and transfers
(1,412,405) (183,387) (172,852) (1,768,644) (687,699)
Capital contributions 341,040 784,737 1,125,777- (16,383)
Transfers in 1,147,501 - 385 1,147,886 491,531
Transfers out (709,685) (66,644) (518) (776,847) (13,236)
Change in net position (633,549) 534,706 (172,985) (271,828) (225,787)
Total net position - Beginning
30,347,1897,497,3342,899,879 40,744,402 12,569,038
Total net assets - ending
$ 29,713,640$ 8,032,040$ 2,726,894$ 40,472,574$ 12,343,251
See Notes to Financial Statements.
Draft 3/5/2015
23
CITY OF LA PORTE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30, 2014
Governmental
Business-type ActivitiesActivities
Total
Enterprise Internal Service
Utility FundLPAWAAirportFundsFund
Cash Flows from Operating Activities
Receipts from customers and users8,070,627$ 1,184,749$ 56,131$ 9,311,507$ 8,185,741$
Disbursed for personnel services(3,076,778) - (23,611) (3,100,389) (813,044)
Disbursed for goods and services(3,577,064) (912,512) (39,151) (4,528,727) (6,865,317)
Net cash provided (used) by operating activities
272,2371,416,785 (6,631) 1,682,391 507,380
Cash Flows from Noncapital Financing Activities
Transfers from other funds1,147,501 - 385 1,147,886 491,531
Transfers to other funds(709,685) (66,644) (518) (776,847) (13,236)
Operating grants and contributions- - 16,383
- -
Net cash provided by (used by) noncapital
financing activities
437,816 (66,644) (133) 371,039 494,678
Cash Flows from Capital and Related
Financing Activities
Proceeds from the sale of equipment - - 31,955
- -
Capital grants and contributions 341,040 - 341,040
- -
Principal payments on debt (262,500) (630,000) - (892,500)
-
Interest paid on debt (24,544) (58,650) - (83,194)
-
Acquisition and construction of capital
assets, net of dispositions
(751,272) - (751,272)(2,429,484)
-
Capital contributions from participants for debt service - 688,650 - 688,650
-
Capital contributions from participants for capital recovery -96,087 96,087
- -
Net cash used by capital and related financing activities
(697,276) 96,087 - (601,189)(2,397,529)
-
Cash Flows from Investing Activities -
Purchase of investments (551,846) (343,835)(33,843) (929,524) (63,983)
Sale of investments - 4,901
- -
Interest received 3,176 4,854 8,623 9,616
5 93
Net cash provided by (used by) investing activities
(548,670) (338,981)(33,250) (920,901) (49,466)
Net increase in cash and equivalents 608,655 (37,301)(40,014) 531,340(1,444,937)
Cash and equivalents, beginning of year
864,380 1,583,631263,179 2,711,190 4,395,908
Cash and equivalents, at end of year
$ 1,473,035$ 1,546,330$223,165$ 3,242,530$ 2,950,971
Unrestricted cash and equivalents$ 932,300$ 856,608$ 2,012,073$ 2,950,971
$ 2 23,165
Restricted cash and equivalents 540,735 689,722 1,230,457-
-
$ 1,473,035$ 1,546,330$223,165$ 3,242,530$ 2,950,971
Reconciliation of operating income to net cash
provided by operating activities
Operating income (loss)$ (1,371,426)$ (149,603)$(173,445)$ (1,694,474)$ (665,360)
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation2,164,844 465,000 2,797,578 1,072,824
1 67,734
(Increase) decrease in accounts receivable317,694 (11,137)(27) 306,530 (7,207)
(Increase) decrease in inventory (2,400) - (2,400) (1,094)
-
(Increase) decrease in prepaid expenses - - 94,765
- -
Increase (decrease) in accounts payable47,956 (32,023)(1,220) 14,713 6,598
Increase (decrease) in salaries payable11,832- 12,139 55
3 07
Increase (decrease) in other current liabilities16,329 - 16,349 6,054
Increase (decrease) in other current liabilities 3/5/2015 16,329-
16,329
Increase (decrease) in other current liabilities
222 000
Increase (decrease) in due to/due from other funds - 745
Increase (decrease) in due to/due from other fundsIncrease (decrease) in due to/due from other funds
--
-- --- -
Increase (decrease) in customer utility deposits20,868 - 20,868
Increase (decrease) in customer utility depositsIncrease (decrease) in customer utility deposits
20,86820,868
--
--- -
Increase (decrease) in compensated absences1,722 - 1,722
Increase (decrease) in compensated absencesIncrease (decrease) in compensated absences1,7221,722
--
-- -
Increase (decrease) in net pension and OPEB obligation 209,366 - 209,366
Increase (decrease) in net pension and OPEB obligation Increase (decrease) in net pension and OPEB obligation
209,366209,366
- -
Net cash provided by operating activities
$ 1,416,785$ 272,237$(6,631)$ 1,682,391$ 507,380
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.
Draft 3/5/2015
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 Position and the Statement of
Activities) 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.
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 Position and a Statement of Activities. It
requires the reclassification of net position into three components – net investment in capital assets;
restricted; and unrestricted. These classifications are as follows:
Net investment in capital assets – This component of net position 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 position 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 position – This component of net position consists of net position that do not
meet the definition of “restricted” or “net investment in capital assets.”
3/5/2015
Separate financial statements are provided for governmental funds and proprietary funds. Major
Separate financial statements are provided for Separate financial statements are provided for Separate financial statements are provided for Separate financial statements are provided
for governmental funds and prgovernmental funds and proprietary funds. Major oprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
individual governmental funds and major individual individual governmental funds and major individual individual governmental funds and major individual individual governmental funds
and major individual enterprise funds are reported as separate columns in enterprise funds are reported as separate columns in
the fund financial statements.
the fund financial statements. 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 unavailable
revenues at year-end. Property taxes collected within 60 days subsequent to September 30, 2014, 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, 2014, 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 Improvement Fund is used to account for projects that are generally small in nature and affect
the general operation of the City.
Draft 3/5/2015
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, deferred outflows/inflows of resources and net position/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 GASB 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,
short-term highly liquid debt instruments that mashort-term highly liquid debt instruments that ma 3/5/2015 y include U.S. Treasury and agency obligations,
short-term highly liquid debt instruments that may include U.S. Treasury and agency obligations,
short-term highly liquid debt instruments that ma
are reported at amortized costs. Investments pos Draft itions in external investment pools that are
are reported at amortized costs. Investments posare reported at amortized costs. Investments posare reported at amortized costs. Investments posare reported at amortized costs. Investments
positions in external investment pools that are itions in external investment pools that are
operated in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of
operated in a manner consistent with the SEC’s operated in a manner consistent with the SEC’s operated in a manner consistent with the SEC’s operated in a manner consistent with the
SEC’s Rule 2a7 of the Investment Company Act of Rule 2a7 of the Investment Company Act of
1940, such as TexPool and LOGIC are reported using the pools’ share price.
1940, such as TexPool and LOGIC are reported using the pools’ share price. 1940, such as TexPool and LOGIC are reported using the pools’ share price. 1940, such as TexPool and LOGIC
are reported using the pools’ share price. 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)
D.Assets, liabilities deferred outflows/inflows of resources and net position/fund balance
(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 Position 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 City’s continuing operations. Certain payments
to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.
The City did not have any 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
Draft 3/5/2015
Vehicles 4-10 yearsVehicles 4-10 yearsVehicles 4-10 yearsVehicles 4-10 years
Machinery and equipment 4-10 years
Machinery and equipment 4-10 yearsMachinery and equipment 4-10 yearsMachinery and equipment 4-10 yearsMachinery and equipment 4-10 years
Water and sewer systems 20-40 years
Water and sewer systems 20-40 yearsWater and sewer systems 20-40 yearsWater and sewer systems 20-40 yearsWater 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)
Assets, liabilities deferred outflows/inflows of resources and net position/fund balance
(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 Position. 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
Draft 3/5/2015
The City applies restricted resources when an expense is incurred for purposes for which both
The City applies restricted resources when anThe City applies restricted resources when anThe City applies restricted resources when anThe City applies restricted resources when an expense
is incurred for purposes for which both expense is incurred for purposes for which both
restricted and unrestricted net position is available.
restricted and unrestricted net position is available. restricted and unrestricted net position is available. restricted and unrestricted net position is available. restricted and
unrestricted net position is available.
30
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
Assets, liabilities deferred outflows/inflows of resources and net position/fund balance
(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 are not in spendable form or are required to
be maintained intact. As such, the inventory items have been properly classified in
the Governmental Funds Balance Sheet.
Restricted – includes amounts that can be spent only for specific purposes because
of local, state or federal laws, or externally imposed conditions by grantors or
creditors. Restrictions for retirement of fund indebtedness and other state
restrictions have been properly classified in the Governmental Funds Balance Sheet.
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. Commitments for Construction Projects and
Health initiatives have been properly classified in the Governmental Funds Balance
Sheet.
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. The City strives to maintain a minimum reserve
balance of 90 to 120 days for the General Fund and Utility Fund, and 60 to 90 days of operating
expenditures in all other funds as outlined in the City’s Financial Management Policies as
adopted by City Council by resolution.
11.Revenues and Expenditures/Expenses
Revenues and Expenditures/Expenses Revenues and Expenditures/Expenses 3/5/2015
Revenues and Expenditures/Expenses
Revenues and Expenditures/Expenses
Draft
In the fund financial statements revenues for governmental funds are recorded when they are
In the fund financial statements revenues for goveIn the fund financial statements revenues for goveIn the fund financial statements revenues for goveIn the fund financial statements
revenues for governmental funds are recorded when they are rnmental funds are recorded when they are
determined to be both measurable and available. Generally, tax revenues, fees and non-tax
determined to be both measurable and availabldetermined to be both measurable and availabldetermined to be both measurable and availabldetermined to be both measurable and available.
Generally, tax revenues, fees and non-tax e. 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.
31
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
Assets, liabilities deferred outflows/inflows of resources and net position/fund balance
(continued
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.
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.
14.Deferred outflows/inflows of resources
In addition to assets, the statement of financial position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net position that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/ expenditure) until then. The government
only has one item that qualifies for reporting in this category. It is the deferred charge on
refunding reported in the government-wide statement of net position. A deferred charge on
refunding results from the difference in the carrying value of refunded debt and its reacquisition
price. This amount is deferred and amortized over the shorter of the life of the refunded or
refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future period(s) and
so will not be recognized as an inflow of resources (revenue) until that time. The government has
only two types of this item, one which arises under a modified accrual basis of accounting;
unavailable revenue which is reported only in the governmental funds balance sheet. The
governmental funds report unavailable revenues. These amounts are deferred and recognized as
an inflow of resources in the period that the amounts become available. The other type is the
deferred gain on refunding reported in the government-wide statement of net position. A deferred
gain on refunding results from the difference in the carrying value of refunded debt and its
reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt.
Draft 3/5/2015
32
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
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.
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 deposits5,534,049$ 331,686$ 504,752$
Investment Pools25,914,810 2,619,285 2,737,778
US Agency Securities17,300,195 1,901,617 3,272,518
$ 4,852,58848,749,054$ 6,515,048$
3/5/2015
$ 4,852,588$ 4,852,588$ 4,852,588$ 4,852,588$ 4,852,588$ 4,852,588$ 4,852,588$ 6,515,048$ 6,515,048$ 6,515,048$ 6,515,048
48,749,05448,749,05448,749,054$ 6,515,048
Draft 3/5/20153/5/20153/5/2015
Draft 3/5/20153/5/20153/5/2015
33
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 2 - Deposits (Cash) and Investments (continued)
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:
Weighted
Average
Total Fair
Maturity
Value(months)
Investment Type
Public funds investment pools31,271,873$ 1.7
Federal Home Loan Mortgage Corporation (FHLMC)7,989,916 28.3
Federal Farm Credit Bank (FFCB)4,997,212 18.0
Federal National Mortgage Association (FNMA)1,998,520 19.7
Farmer Mac (FAMCA)1,500,273 1.1
Federal Home Loan Bank (FHLB)5,988,409 29.6
Total fair value53,746,203$
Portfolio weighted average maturity
14.3
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 TypeValue
Total Portfolio
58%
Investment Pools31,271,873$
42%
US Agency Securities22,474,330
100%
Total
$ 53,746,203
Credit Risk
The primary objective of the City’s adopted Investment Policy is the safety of principal. Credit risk within
Draft 3/5/2015
The primary objective of the City’s adopted Investment The primary objective of the City’s adopted Investment The primary objective of the City’s adopted Investment The primary objective
of the City’s adopted Investment Policy is the safety of principal. Credit risk within 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
the City’s portfolio among authorized investments athe City’s portfolio among authorized investments athe City’s portfolio among authorized investments athe City’s portfolio among authorized
investments approved by the City’s adopted Investment Policy is pproved 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
represented in U.S. Treasury Bills, Notes or Bondrepresented in U.S. Treasury Bills, Notes or Bondrepresented in U.S. Treasury Bills, Notes or Bondrepresented in U.S. Treasury Bills,
Notes or Bonds, and other securities which are guaranteed as to s, 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.
34
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
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 2012-13 tax year were $0.614 and $0.096,
respectively, per $100 of assessed valuation. The 2013 assessed value and total tax levy as adjusted
through September 30, 2014 were $2,572,844,865 and $18,267,201 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.
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:
Debt Capital
All Other
Service Projects Internal
FundsTotal
General FundFundFundUtility Fund LPAWAService Funds
Receivables
Taxes
$ 108,9892,007,102$ -$ -$ 1,030,831-$ 3,146,922$
$ $ -
Intergovernmental
- 127,056- 1,058,254 1,185,310
- - -
Accounts
3,680,973 722,639- 182,551 2,4044,588,567-
-
Interest
16,670 1,783- 1,454 1,673 2,496 4,029 28,105
Other
- - 1,214 17,174- 18,388
- -
Allowance for
uncollectibles
(1,249,644)(85,091) (33,661)- (1,368,396)-
- -
$ 4,455,101$23,898$ 1,783$ 691,646$ 184,224$ 129,552$ 7,598,8962,112,692$
Draft $ 4,455,101$23,898$ 1,783 3/5/2015$ 691,646$ 184,224$ 129,552
$
23,898
$ 4,455,101129,552
1,783184,224
691,646
Draft Draft Draft 3/5/20153/5/20153/5/20153/5/20153/5/2015
Draft Draft Draft 3/5/20153/5/20153/5/20153/5/20153/5/2015
Property taxes are levied by October 1 in conformity with Subtitle E, Texas Property Tax Code. Taxes are
Property taxes are levied by October 1 in conformity Property taxes are levied by October 1 in conformity Property taxes are levied by October 1 in conformity Property taxes are levied
by October 1 in conformity with Subtitle E, Texas Property Tax Code. Taxes are 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
due on receipt of the tax bill and are delinquent if notdue on receipt of the tax bill and are delinquent if notdue on receipt of the tax bill and are delinquent if notdue on receipt
of the tax bill and are delinquent if not paid before February 1 of the year following the paid before February 1 of the year following the
due on receipt of the tax bill and are delinquent if notdue on receipt of the tax bill and are delinquent if not
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 5 - Capital Assets
A summary of activity for capital assets capitalized by the City for the year ended September 30, 2014
follows:
Balance
Balance
SeptemberReclassification/ September 30,
30, 2013Increases(Decreases)2014
Governmental Activities:
Capital assets not being depreciated:
Land 9,471,718$ 84,481$ 9,556,199$
Construction in progress12,856,9182,510,189 (3,626,946) 11,740,161
Total capital assets not
being depreciated
2,594,67022,328,636 (3,626,946) 21,296,360
Other capital assets:
Buildings and improvements33,514,649532,880 3,040,621 37,088,150
Improvements other than buildings24,689,9091,042,985 (560,002) 25,172,892
Infrastructure39,742,061334,077 (38,843) 40,037,295
Machinery and equipment18,140,7663,364,894 (1,076,587) 20,429,073
Total other capital assets116,087,385 5,274,836 1,365,189 122,727,410
Less accumulated depreciation for:
Buildings and improvements(16,847,721)(1,302,866) 312,898 (17,837,689)
Improvements other than buildings(10,439,992)(717,166) 9,878 (11,147,280)
Infrastructure(24,269,606)(1,530,644) 23,140 (25,777,110)
Machinery and equipment(10,429,138)(1,429,190) 1,132,999 (10,725,329)
Total accumulated depreciation(61,986,457) (4,979,866) 1,478,915 (65,487,408)
Other capital assets, net54,100,928 294,970 2,844,104 57,240,002
$ 2,889,64076,429,564$ (782,842)$ 78,536,362$
Totals
Balance Balance
September Reclassification/ September 30,
30, 2013 Increases (Decreases)2014
Business-type Activities:
Capital assets not being depreciated:
Land427,812$ $ -$ 427,812-$
106,088
Construction in progress4,072,479 177,974(4,000,593)
Total capital assets not
being depreciated
106,0884,500,291 (4,000,593) 605,786
Other capital assets:
--
Buildings and improvements57,62057,620
Improvements other than buildings86,265,195 408,955 87,942,8031,268,653
2,629,841236,424
Machinery and equipment688,9493,555,214
Total other capital assets87,011,764 645,379 3,898,494 91,555,637
Less accumulated depreciation for:
Buildings and improvements(49,888) -(551) (49,888)
3/5/2015
Improvements other than buildings (2,757,937)(50,880,619) 80,847 (53,597,352)
(50,880,619)(50,880,619)(50,880,619)
Improvements other than buildingsImprovements other than buildings (2,757,937) (2,757,937) (2,757,937) (2,757,937) 80,847 80,847
(50,880,619)
Machinery and equipment (39,090)(428,655) - (428,655)
Machinery and equipmentMachinery and equipment(428,655)(428,655) (39,090) (39,090)
(39,090) (39,090) -
Draft Draft 3/5/20153/5/20153/5/20153/5/20153/5/20153/5/2015
Total accumulated depreciation (51,359,162) (2,797,578) 80,847 (54,075,895)
Total accumulated depreciation (51,359,162)Total accumulated depreciation (51,359,162)Total accumulated depreciation (51,359,162)Total accumulated depreciation (51,359,162)Total accumulated
depreciation (51,359,162)Total accumulated depreciation (51,359,162) (2,797,578) (2,797,578)80,84780,847
Total capital assets being
depreciated, net
(2,152,199)35,652,602 3,979,341 37,479,742
Totals
$ (2,046,111)40,152,893$ (21,252)$ 38,085,528$
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 government$ 625,997
Public safety997,753
Public works1,595,726
Parks and recreation687,566
Internal Service funds1,072,824
Total Governmental Activities
$ 4,979,866
Water and sewer$ 2,629,844
Airport167,734
Total Business-Type Activities
$ 2,797,578
September 30, 2014,
Construction contract commitments outstanding as of are as follows:
Governmental Activities
Remaining
Total In Progress Commitment
Fund
TIRZ Fund201,170
General CIP Fund2,891,989 106,963
2006 GO Bonds48,700
Drainage Improvement8,598,302 76,857
Totals11,740,161$ 183,820$
Business-Type Activities
Remaining
Total In Progress Commitment
Fund
Utility Fund177,974$ 69,527$
Totals177,974$ 69,527$
Draft 3/5/2015
37
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
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.
The following is a summary of the terms of obligations, general obligation bonds, certificates of
obligations and revenue bonds outstanding as of September 30, 2014:
Governmental Business-type
2002 Limited Tax Bonds
due in annual installments of $270,000
through March 15, 2025; interest at 4.25% to 5%; $5,400,000
issued for wastewater treatment plant and fire station improvements.540,000$ -$
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.325,000 -
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.1,145,000 -
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.265,000 -
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.- 525,000
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.265,000 -
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.905,000 -
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.4,090,000 -
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.5,260,000 -
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.2,655,000 -
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.- 1,640,000
2012 General Obligation Refunding Bonds
2012 General Obligation Refunding Bonds Draft 3/5/2015
2012 General Obligation Refunding Bonds
due in annual payments through March 15, 2025; interest at .65% to 3.00%
due in annual payments through March 15, 2025; interest at .65% to 3.00%due in annual payments through March 15, 2025; interest at .65% to 3.00%due in annual payments through March
15, 2025; interest at .65% to 3.00%due in annual payments through March 15, 2025; interest at .65% to 3.00%
$9,435,000 issued to refund previous debt.9,285,000 -
$9,435,000 issued to refund previous debt.9,285,000$9,435,000 issued to refund previous debt.9,285,000$9,435,000 issued to refund previous debt.9,285,000$9,435,000 issued to refund previous
debt.9,285,000
$9,435,000 issued to refund previous debt.9,285,000$9,435,000 issued to refund previous debt.9,285,000
2014 General Obligation Refunding Bonds
2014 General Obligation Refunding Bonds2014 General Obligation Refunding Bonds
due in annual payments through March 15, 2025; interest at 2.00% to 3.50%
$9,300,000 issued to refund previous debt.9,220,000 -
Total Bonds Payable
$ 2,165,00033,955,000$
38
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 6 - Long-Term Debt
September 30, 2014
During the year ended , the following changes occurred in long-term liabilities:
Balance Balance Amounts Due
September 30, September 30, Within One
2013 Additions (Reductions) 2014 Year
Governmental Activities:
Bonds and notes payable:
General obligation bonds17,550,000$ 9,300,000$ (3,740,000)$ 23,110,000$ 1,890,000$
Certificates of obligation18,905,000 - (8,060,000) 10,845,0001,385,000
Premium/Discount on bond issuance
675,372608,166 (127,585) 1,155,953
-
Total bonds payable 37,130,372 9,908,166(11,927,585) 35,110,953 3,275,000
Compensated Absences 3,273,660 120,556 (238,593) 3,155,623 157,781
Net pension obligation 2,336,170 3,179,939 (3,156,875) 2,359,234
-
Net OPEB obligation 7,531,737 2,285,135 (777,410) 9,039,462
-
Total Governmental Activities$ 50,271,939$ 15,493,796$ (16,100,463)$ 49,665,272$ 3,432,781
Balance Balance Amounts Due
September 30, September 30, Within One
2013 Additions (Reductions) 2014 Year
Business-type Activities:
Bonds payable:
Revenue bonds$ 2,270,000$ $ 1,640,000$ 650,000
$ -(630,000)
Public property finance certificates of obligation787,500 525,000 262,500
-(262,500)
Premium on bond issuance 59,862 - (17,312) 42,550
-
Total Bonds Payable 3,117,362 2,207,550 912,500
- (909,812)
Compensated absences 211,931 2,477 (2,976) 211,432 16,915
Net pension obligation 274,194 372,955 (370,364) 276,785
-
OPEB obligation 988,830 309,621 (102,826) 1,195,625
-
Total Business-type Activities$ 4,592,317$ 685,053$ (1,385,978)$ 3,891,392$ 929,415
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.
3/5/2015
39
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 6 - Long-Term Debt (continued)
In April 2014, the City issued General Obligation Refunding Bonds, Series 2014 in the amount of
$9,300,000. The interest rate ranges from 2.0%-3.5%. The bonds were issued at a premium totaling
$608,166. 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
$9,160,000 of the 2002 Limited Tax Bonds, 2004, 2005, 2006 and 2007 Certificates of Obligation, and
2005 and 2006 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 $545,637 and a deferred loss on refunding of $511,892.
Revenue Bonds
Water and Sewer Revenue Bonds constitute special obligations of the City solely secured by a lien on and
pledge of the net revenues of the water system. The Revenue Bonds are collateralized by the revenue of
the water system, water sales to participant cities and the various special funds established by the bond
ordinances. The ordinances provide that the revenue of the system is to be used first to pay operating and
maintenance expenses of the system and second to establish and maintain the Revenue Bond funds.
Remaining revenues may then be used for any lawful purpose. The ordinances also contain provisions,
which, among other items, restrict the issuance of additional Revenue Bonds unless the special funds
noted above contain the required amounts and certain financial ratios are met. The City is in compliance
with all significant financial requirements as of September 30, 2014.
The annual aggregate maturities for each bond type for the years subsequent to September 30, 2014 are as
follows:
General Obligation BondsCertificates of Obligation
Governmental Activities Governmental Activities
Fiscal YearPrincipalInterestPrincipalInterest
20151,890,000$ 679,456$ 1,385,000$ 404,266$
20161,540,000 625,860 1,100,000 347,294
20171,395,000 577,192 1,140,000 303,431
20181,855,000 526,972 765,000 274,600
20192,470,000 464,881 410,000 251,100
20202,465,000 391,250 425,000 234,400
20212,270,000 318,600 445,000 217,000
20222,335,000 249,525 460,000 199,763
20232,395,000 178,575 475,000 182,520
20242,460,000 103,225 495,000 164,023
20252,035,000 31,900 1,010,000 133,923
2026- - 1,050,000 92,092
2027- - 540,000 59,430
Draft 540,000
540,000
3/5/2015
2028- - 560,000 36,330
560,000 560,000
2028-2028-
2028-2028- - -
2029- - 585,000 12,285
2029-2029- 585,000 585,000
2029-2029- -
2030- -
2030-2030-
- -
$ 23,110,000$ 4,147,436$ 10,845,000$ 2,912,457
40
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-Tpe Activities Business-Tpe Activities
yy
Fiscal YearPrincipalInterestPrincipalInterest
2015650,000$ 41,838$ 262,500$ 14,727$
2016670,000 22,850 262,500 4,909
2017320,000 6,400 -
-
2018 - -
- -
$ 1,640,000$ 71,088$ 525,000$19,636
Prior Year Refunding of Debt
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,
2014 approximately $2,490,000 and $1,695,000 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
Utility FundDebt Service Fund $ 661,974 Annual transfer for debt service
Utility FundInsurance Fund 47,711 Transfer for liability insurance and workers comp
Airport FundInsurance Fund 518 Transfer for liability insurance and workers comp
La Porte Area Water AuthorityGeneral Fund 65,339 Operators agreement
La Porte Area Water AuthorityInsurance Fund 1,305 Transfer for liability insurance and workers comp
Vehicle Maintenance FundInsurance Fund 13,236 Transfer for liability insurance and workers comp
General CIP Fund 165,000 Transfer for capital projects
Hotel/Motel Fund
Hotel/Motel FundGeneral Fund 42,500 Transfer for golf course advertising and city
bordering bay for golf expenditures
General FundInsurance Fund 416,878 Transfer for liability insurance and workers comp
General FundGeneral CIP Fun 1,817,137 Transfer for capital projects
d
General FundAirport Fund 385 Transfer for pay adjustments
General FundUtility Fun 1,147,501 Transfer for capital projects
d
General FundVehicle Maintenance 11,883 Transfer for pay adjustments
General Fund 1,981 Transfer for pay adjustments
Hotel/Motel Fund
General FundEmergency Services Sales
Tax Fund
1,598 Transfer for pay adjustments
La Porte Development
General Fund
Corporation (4B) 1,211 Transfer for pay adjustments
La Porte Development
Corporation (4B)Debt Service Fund 948,545 Transfer for debt service
La Porte Development
Draft 3/5/2015
Corporation (4B)General CIP Fund 177,000 Transfer for capital projects
Corporation (4B)General CIP Fund Corporation (4B)General CIP Fund 177,000 Transfer for capital projects
FundDebt Service Fund 29,705 Transfer for debt service
FundDebt Service Fund 29,705 Transfer for debt service
$ 5,551,407
3/5/2015
$ 5,551,407
41
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
Obligation FundTIRZ One Sewer improvements paid by the City
$ 662,000
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.
Draft 3/5/2015
42
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 8 - Employee Retirement System (continued)
Texas Municipal Retirement System (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:
2014
Annual Required Contribution (ARC)
$3,527,239
Interest on net pension obligation (NPO)
182,725
Adjustment to ARC
(157,070)
Annual Pension Cost (APC)
3,552,894
Contributions
(3,527,239)
Change in NPO
25,655
NPO, beginning of the year
2,610,364
NPO, ending of the yea
r
$2,636,019
Percentage of APC contributed
99.3%
Actuarial Cost MethodEntry Age Normal
Amortization MethodLevel Percent of Payroll
Remaining Amortization Period20.0 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, 2013
Schedule of Funding Progress
Unfunded
Actuarial (UAAL) as a
Actuarial Accrued Annual Percentage of
Actuarial Valuation Actuarial Value Accrued Percentage Liability Covered Covered
Date December 31, of Assets Liabilities Funded(UAAL) Payroll Payroll
2013$109,712,849$ 130,990,61784%21,277,768$ 20,124,979$ 106%
Draft $109,712,849$ 130,990,617130,990,617 3/5/2015 84%21,277,76884%21,277,768$ 20,124,979$ 20,124,979
84%21,277,768
130,990,617
$$ 20,124,979
109,712,849130,990,61784%21,277,768
$ 20,124,979
84%21,277,768
The schedule of funding progress, presented as required supplementary information following the
The schedule of funding progress, The schedule of funding progress, presented as required supplementapresented as required supplementapresented as required supplementapresented as required
supplementary information following the ry 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.
43
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 8 - Employee Retirement System (continued)
Three-year Trend Information
201420132012
Annual Required Contribution (ARC)
$ 3,450,7803,527,239$ 3,624,410$
Interest on net pension obligation (NPO)
180,947182,725 173,583
Adjustment to ARC
(155,542)(157,070) (139,265)
Annual Pension Cost (APC)
3,476,1853,552,894 3,658,728
Contributions
(3,450,780)(3,527,239) (3,388,213)
Change in NPO
25,40525,655 270,515
NPO, beginning of the year
2,584,9592,610,364 2,314,444
NPO, ending of the yea
r
$ 2,610,3642,636,019$ 2,584,959$
Percentage of APC contributed
99.3%99.3%92.6%
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, 2014 there were 198 member departments
participating in the pension system. The following table summarizes the pension system membership as
of August 31, 2014:
Retirees and beneficiaries currently receiving benefits3,073
Terminated members entitled to benefits but not yet receiving those2,161
Current active members (vested and non-vested)4,036
th
The pension system was created by Senate Bill 411, 65th Legislature, Regular Session (1977). The 79
The pension system was created by Senate Bill 411,The pension system was created by Senate Bill 411,3/5/2015 65th Legislature, Regular Session (1977). The 79
The pension system was created by Senate Bill 411, 65th Legislature, Regular Session (1977). The 79
The pension system was created by Senate Bill 411,
Legislature, Regular Session (2005), recodified th Draft e provisions and gave the TESRS Board of Trustees
Legislature, Regular Session (2005), recodified thLegislature, Regular Session (2005), recodified thLegislature, Regular Session (2005), recodified thLegislature, Regular Session (2005),
recodified the provisions and gave the TESRS Board of Trustees e provisions and gave the TESRS Board of Trustees
authority to establish vesting requirements, contributions levels, benefit formulas and eligibility
authority to establish vesting requirements, contriauthority to establish vesting requirements, contriauthority to establish vesting requirements, contriauthority to establish vesting
requirements, contributions levels, benefit formulas and eligibility butions levels, benefit formulas and eligibility
requirements by board rule. The benefit provisions include retirement benefits as well as death and
requirements by board rule. The benefit provisionsrequirements by board rule. The benefit provisionsrequirements by board rule. The benefit provisionsrequirements by board rule. The
benefit provisions include retirement benefits as well as death and 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.
44
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)
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, 2014, total contributions (dues, prior service, and interest on prior service financing) of
$4,176,659 were paid into TESRS by the political subdivisions and served by the member volunteer
emergency services personnel. The state appropriated $1,530,343 for the fiscal year ending August 31,
2014.
The purpose of the biennial actuarial valuation is to determine if the contribution arrangement is adequate
to pay the benefits that are promised. The actuarial valuation as of August 31, 2014 stated TESRS has an
adequate contribution arrangement for the benefit provisions recognized in the valuation based on the
expected total contributions, including the expected contributions both from the governing body of each
participating department and from the state. The expected contributions from the state are state
appropriations equal to (1) the maximum annual contribution (one-third of all contributions to TESRS by
governing bodies of participating departments in a year) as needed in accordance with state law governing
TESRS, and (2) approximately $625,000 each year to pay for part of the System’s administrative
expenses. The City’s annual contributions for fiscal year ending September 30, 2014, 2013 and 2012 were
$21,168, $24,624, and $27,216 respectively.
Draft 3/5/2015
45
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 divisions4,752,435$
Interfund transfers479,648
Charges to employees455,459
Charges to retirees113,739
Cobra charges8,521
Interest revenue2,895
Total revenues5,812,697$
Expenses
Personnel expenses139,935$
Other expenses395,605
Claims administration202,188
Claims incurred5,485,633
Re-insurance premiums380,034
Total health services expenses6,603,395$
Included in the claims paid amount is $575,349 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, 2014, 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 2012,
,
2013 and 2014 are as follows:
Beginning of Current year Payments for End of year
Draft 3/5/2015
Beginning of Beginning of Current year Current year Payments for Payments for End of year End of year
year accrualestimatesclaimsaccrual
year accrualyear accrualestimatesestimatesclaimsclaimsaccrualaccrual
3/5/20153/5/2015
Draft 3/5/20153/5/2015
09/30/12573,894$ 4,290,891$ 4,365,339$ 499,446$
$ 4,290,891$ 4,290,891$ 4,365,339$ 4,365,339$ 499,446$ 499,446
09/30/12573,89409/30/12573,894$ 4,290,89109/30/12573,894$ 4,290,89109/30/12573,89409/30/12573,894$ 4,365,339$ 4,365,339$ 499,446$ 499,446$ 499,446
$ 4,365,339
09/30/13499,446 4,096,890 4,115,752 480,584
09/30/14480,584 5,580,398 5,485,633 575,349
46
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:
Draft 3/5/2015
Retiree cost
Retiree cost Retiree cost
Retiree CostCity Costper year
Years of service with the City
Retiree CostCity CostRetiree CostCity Cost
Years of service with the CityYears of service with the City
per yearper year
Draft Draft 3/5/20153/5/20153/5/2015
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%-
47
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.
changes in the City’s OPEB obligatio Draft n to the postemployment medical plan. n to the postemployment medical plan. 3/5/2015
n to the postemployment medical plan.
n to the postemployment medical plan.
changes in the City’s OPEB obligatio
48
CITY OF LA PORTE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 11 - Post-employment Benefits (continued)
Fiscal Year
201420132012
Annual Required Contribution (ARC)$ 2,566,570$ 2,491,816$ 2,280,768
Interest on net pension obligation (NPO) 383,426 311,056 236,921
Adjustment to ARC (355,240) (288,190) (219,505)
Annual Pension Cost (APC) 2,594,756 2,514,682 2,298,184
Contributions (880,236) (906,463) (650,741)
Change in NPO 1,714,520 1,608,219 1,647,443
NPO, beginning of the year 8,520,567 6,912,348 5,264,905
NPO, ending of the year$ 10,235,087$ 8,520,567$ 6,912,348
Percentage of ARC contribution33.9%36.0%28.3%
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for fiscal year 2014, 2013 and 2012 are as follows.
Percentage of
Annual OPEB
Annual OPEB Cost Net OPEB
Fiscal Year Ended Cost Contributed Obligation
9/30/2012$ 2,298,18428.32%6,912,348$
9/30/2013 2,514,68236.05%8,520,567
9/30/2014 2,594,75633.92%10,235,087
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:
Schedule of Funding Progress
Unfunded (UAAL) as
Actuarial a
Actuarial Accrued Percentage
Actuarial Valuation Date Actuarial Accrued Percentage Liability Annual Covered of Covered
December 31, Value of Assets Liabilities Funded (UAAL) Payroll Payroll
2013$ 32,167,407-$0%32,167,407$ $ 19,908,16261.89%
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
schedule of funding progress presents multi-trend infoschedule of funding progress presents multi-trend info 3/5/2015 rmation about whether the actuarial value of plan
schedule of funding progress presents multi-trend information about whether the actuarial value of plan
schedule of funding progress presents multi-trend info
Draft
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The
assets is increasing or decreasing over time relative to assets is increasing or decreasing over time relative to assets is increasing or decreasing over time relative to assets is increasing
or decreasing over time relative to the actuarial accrued liabilities for benefits. The the actuarial accrued liabilities for benefits. The
2013 actuarial valuation is the most recent actuarial valuation available.
2013 actuarial valuation is the most r2013 actuarial valuation is the most recent actuarial valuation available. ecent actuarial valuation available. ecent actuarial valuation available.
ecent actuarial valuation available.
49
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, 2013, 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, 2014, was 27 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 2014, 2013, and 2012 were
$29,311, $30,365 and $36,232 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
20120.03%0.03%100%
Draft 20120.03%0.03%100%20120.03%0.03%100%3/5/2015
20120.03%0.03%100%
20120.03%0.03%100%
20130.03%0.03%100%
20130.03%0.03%100%20130.03%0.03%100%20130.03%0.03%100%20130.03%0.03%100%
20140.03%0.03%100%
20140.03%0.03%100%20140.03%0.03%100%20140.03%0.03%100%20140.03%0.03%100%
Note 12 - Deficit Fund Equity
At September 30, 2014, the tax reinvestment zone fund has a deficit fund balance of $790. The City plans
to recover this money through future earnings.
50
REQUIRED SUPPLEMENTARY INFORMATION
Draft 3/5/2015
51
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, 2014
2014
Variance with
Final Budget -
Positive
Budgeted Amounts
gative)
OriginalFinalActual(Ne
Revenues
Property taxes13,860,500$ 15,193,638$ 15,286,420$ 92,782$
Franchise fees2,218,479 2,176,449 2,252,404 75,955
Sales and use taxes3,978,875 4,309,521 4,686,476 376,955
Industrial payments11,086,500 11,556,546 11,554,949 (1,597)
Miscellaneous taxes60,000 60,000 87,074 27,074
Licenses and permits368,175380,680497,756 117,076
Fines and forfeitures1,586,7001,471,8001,594,391 122,591
Interest earnings71,000 71,000 67,519 (3,481)
Charges for services5,463,6585,519,4255,619,555 100,130
Miscellaneous 40,00040,000256,379 216,379
Total Revenues
40,779,05938,733,887 41,902,923 1,123,864
Expenditures
General government
Administration4,871,7204,959,9474,811,374148,573
Finance4,106,1173,264,2433,196,19068,053
Planning and engineering1,978,7721,840,1921,549,554290,638
Public safety
Fire4,563,8054,562,5994,410,670151,929
Police11,726,10211,810,99411,622,018188,976
Public works
Public works administration351,697393,265370,71022,555
Streets2,565,6952,553,8882,546,0067,882
Health and sanitation
Solidwaste2,335,2822,337,5632,334,1843,379
Culture and recreation5,484,2815,497,1325,381,609115,523
Total Expenditures
37,219,82337,983,471 36,222,315 997,508
Excess (deficiency) of revenues
over expenditures750,416 3,559,236 5,680,608 2,121,372
Other Financing Sources (Uses)
Transfers in107,839 107,839 107,839
-
Transfers out(3,441,876) (3,812,161) (3,398,574) 413,587
Proceeds from sale capital assets- - 500 500
Total other financing sources
and uses
(3,334,037)(3,704,322)(3,290,235) 414,087
Draft 3/5/2015
Net change in fund balances(2,583,621)(145,086)2,390,373 2,535,459
Net change in fund balancesNet change in fund balances(2,583,621)(2,583,621)(145,086)(145,086)2,390,3732,390,373
Fund balances, beginning of year
27,584,96727,584,96727,584,967
Fund balances, beginning of yearFund balances, beginning of year27,584,96727,584,96727,584,96727,584,96727,584,96727,584,967
-
Fund balances at year end
$25,001,346$27,439,881$29,975,340$ 2,535,459
52
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.
Draft 3/5/2015
53
CITY OF LA PORTE, TEXAS
REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION
September 30, 2014
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
2013$ 109,712,849$ 130,990,61784%21,277,768$ 20,124,979$ 106%
2012 102,718,435 118,112,65187%15,394,216 19,658,09978%
2011 94,972,036 112,727,99584%17,755,959 19,680,97190%
Draft 3/5/2015
54
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Draft 3/5/2015
55
(This page intentionally left blank.)
Draft 3/5/2015
56
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.
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.
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.
Draft 3/5/2015
57
CITY OF LA PORTE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
eptember 30, 2014
S
Special Revenue Funds
Tax Increment
Hotel Motel Section 4b Reinvestment
TaxSales TaxZoneGrant Fund
Assets
Cash and cash equivalents592,900$ 1,742,126$ 662,290$ 155,088$
Investments382,336 1,128,960 - 623,939
Receivables, net of allowance139,035 452,155 - 403
Intergovernmental receivable- - 1,920 1,058,254
Due from other funds-
- - -
Total Assets
$ 1,114,271$ 3,323,241$ 664,210$ 1,837,684
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ 7,360$ 7,167$ 290,339-$
Accrued salaries payable 4,770 2,685 - 5,691
Other payables - - 3,000 90,051
Due to other funds - - 662,000
-
Unearned revenue - Grants - - 26,707
-
Total Liabilities
12,130 9,852 665,000 412,788
Fund balances:
Restricted
Debt service 948,545- -
-
Grants - 402,925-
-
Economic development 1,102,141 2,364,844 -
-
Public safety 1,021,971-
Capital projects -
- - -
Public works -
- - -
Unassigned
- - (790) -
Total Fund balances
1,102,141 3,313,389 1,424,896(790)
Total Liabilities and Fund Balances
$ 1,114,271$ 3,323,241$ 664,210$ 1,837,684
Draft 3/5/2015
58
Page 1 of 2
Special Revenue Funds
Street Emergency
Maintenance Services Sales Total Special
Sales Tax FundTax FundRevenue Funds
$ 311,240990,132$ 4,453,776$
199,856625,336 2,960,427
216,550226,158 1,034,301
-- 1,060,174
-
- -
$ 1,841,626$ 727,646$ 9,508,678
$ 55,385$ 6,807$ 367,058
- - 13,146
1,061 3,859 97,971
- 662,000-
- - 26,707
56,446 10,666 1,166,882
- 948,545-
- 402,925-
- 3,466,985-
- 716,980 1,738,951
-
- -
1,785,180 1,785,180-
- - (790)
1,785,180 716,980 8,341,796
$ 1,841,626$ 727,646$ 9,508,678
Draft 3/5/2015
59
CITY OF LA PORTE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
eptember 30, 2014
S
Capital Projects Funds
2000 Certificate 2006 Certificate 2010 Certificate
of Obligation of Obligation of Obligation
BondsBondsBonds
Assets
Cash and cash equivalents10$ 63$ 1,716,869$
Investments6 41 14,197
- 19
Receivables, net of allowance -
Intergovernmental receivable -
- -
Due from other funds 662,000-
-
Total Assets
$ 662,10416$ $ 1,731,085
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ -$ -$ 17,614
Accrued salaries payable -
- -
Other payables - - 215
Due to other funds -
- -
Unearned revenue - Grants -
- -
Total Liabilities
- - 17,829
Fund balances:
Restricted
Debt service -
- -
Grants -
- -
Economic development -
- -
Public safety -
- -
Capital projects 662,10416 1,713,256
Public works -
- -
Unassigned
-
- -
Total Fund balances
662,10416 1,713,256
Total Liabilities and Fund Balances
$ 662,10416$ $ 1,731,085
Draft 3/5/2015
60
Page 2 of 2
Total Nonmajor
Drainage Total Capital Governmental
ImprovementsProjects FundsFunds
$ 2,128,595411,653$ 6,582,371$
281,317267,073 3,241,744
15,62415,605 1,049,925
-- 1,060,174
662,000- 662,000
$ 3,087,536694,331$ 12,596,214$
$ 21,7514,137$ 388,809$
-- 13,146
215- 98,186
-- 662,000
-- 26,707
21,9664,137 1,188,848
-- 948,545
-- 402,925
-- 3,466,985
-- 1,738,951
3,065,570690,194 3,065,570
-- 1,785,180
-- (790)
3,065,570690,194 11,407,366
$ 3,087,536694,331$ 12,596,214$
Draft 3/5/2015
61
CITY OF LA PORTE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2014
Special Revenue Funds
Tax Increment
Hotel Motel Section 4b Reinvestment
TaxSales TaxZoneGrant Fund
Revenues
Property Taxes
$ --$ 2,156,273$ -$
Sales and use taxes
2,343,234- -
-
Other taxes
699,673 -
- -
Fines and forfeitures
- 196,458-
-
Charges for services
- 242,997-
-
Intergovernmental
- 1,572,360-
-
Interest
1,538 4,170 511 1,472
Miscellaneous
4,825 -
- -
Total revenues
706,0362,347,404 2,156,784 2,013,287
Expenditures
Current:
General government
467,379 677,836 560,757 57,643
Public safety
- 492,473-
-
Public Works
- 234,952-
-
Culture and recreation
- - 59,115
-
Capital outlay
- 1,851,875- 900,860
Total Expenditures
467,379 677,836 2,412,632 1,745,043
Excess (deficiency) of revenues over
expenditures
238,6571,669,568 (255,848) 268,244
Other Financin Sources (Uses)
g
Transfers in
1,2111,981 -
-
Transfers out
(207,500)(1,125,545) -
-
Total other financin sources (uses)
g
(1,124,334)(205,519) -
-
Net change in fund balances
545,23433,138 (255,848) 268,244
innin
Fund balances - be
gg
2,768,1551,069,003 255,058 1,156,652
Fund balances - endin
g
$ 3,313,3891,102,141$ (790)$ 1,424,896$
Draft 3/5/2015
62
Page 1 of 2
Special Revenue Funds
Street Emergency
Maintenance Services Sales Total Special
Sales Tax FundTax FundRevenue Funds
-$
$ $ -2,156,273
1,116,4451,171,617 4,631,296
-- 699,673
-- 196,458
-- 242,997
-- 1,572,360
3481,758 9,797
-- 4,825
1,116,7931,173,375 9,513,679
-- 1,763,615
902,879- 1,395,352
-173,104 408,056
-- 59,115
-170,437 2,923,172
902,879343,541 6,549,310
213,914829,834 2,964,369
1,598- 4,790
-
-(1,333,045)
1,598- (1,328,255)
215,512829,834 1,636,114
501,468955,346 6,705,682
$ 716,9801,785,180$ 8,341,796$
Draft 3/5/2015
63
CITY OF LA PORTE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGE
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2014
Capital Projects Funds
20002006
Certificate of Certificate of
Obligation Obligation
BondsBonds
Revenues
Property Taxes
-
$ $ -
Sales and use taxes
-
-
Other taxes
-
-
Fines and forfeitures
-
-
Charges for services
-
-
Intergovernmental
-
-
Interest
16
-
Miscellaneous
-
-
Total revenues
16
-
Expenditures
Current:
General government
-
-
Public safety
-
-
Public Works
-
-
Culture and recreation
-
-
Capital outlay
-
-
Total Expenditures
-
-
Excess (deficiency) of revenues over
expenditures
16
-
Other Financin Sources (Uses)
g
Transfers in
-
-
Transfers out
(29,705)
-
Total other financin sources (uses)
g
(29,705)
-
Net change in fund balances
(29,689)
-
innin
Fund balances - be
gg
662,10429,705
Fund balances - endin
g
$ 662,10416$
Draft 3/5/2015
64
Page 2 of 2
Capital Projects Funds
2010 Certificate Total Nonmajor
of Obligation Drainage Total Capital Governmental
BondsImprovementsProjects FundsFunds
$ --$ -$ 2,156,273$
-- - 4,631,296
-- - 699,673
-- - 196,458
268,230- 268,230 511,227
-- - 1,572,360
914604 1,534 11,331
-- - 4,825
269,144604 269,764 9,783,443
-- - 1,763,615
-- - 1,395,352
97,797- 97,797 505,853
-- - 59,115
-74,467 74,467 2,997,639
97,79774,467 172,264 6,721,574
171,347(73,863) 97,500 3,061,869
-- - 4,790
-- (29,705) (1,362,750)
-- (29,705) (1,357,960)
171,347(73,863) 67,795 1,703,909
1,787,119518,847 2,997,775 9,703,457
$1,713,256$ 690,194$ 3,065,570$ 11,407,366
Draft 3/5/2015
65
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Draft 3/5/2015
66
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
– BUDGET TO ACTUAL
Special Revenue Fund
Capital Projects Fund
Draft 3/5/2015
67
CITY OF LA PORTE, TEXAS
EBT SERVICE FUND
D
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2014
With comparative actual totals for the year ended September 30, 2013
2014
Variance
Positive /
Final BudgetActual(Negative)2013
Revenues
Property taxes
$ 2,482,6752,423,341$ 59,334$ 1,652,943$
Investment earnings
8,7127,072 1,640 4,736
Total Revenues
2,491,3872,430,413 60,974 1,657,679
Expenditures
Principal2,170,000 2,640,000 (470,000) 2,365,000
Interest and other charges
1,217,8831,576,270 358,387 1,385,204
Bond issuance costs
153,884- (153,884)
Total Expenditures
4,011,7673,746,270 (265,497) 3,750,204
Revenues over (under) expenditures
(1,520,380)(1,315,857) (204,523) (2,092,525)
Other Financin Sources (Uses)
g
Issuance of debt
9,300,000- 9,300,000
Premium on bonds
608,166- 608,166
Payment to escrow agent
(9,749,587)- (9,749,587)
Transfers in
1,640,2241,610,519 29,705 1,492,488
Total Other Financin Sources (Uses)
g
1,798,8031,610,519 188,284 1,492,488
Net change in fund balance
278,423294,662 (16,239) (600,037)
Fund balances, beginning of year
2,490,4992,490,499 - 3,090,536
Fund balances at ear end
$ 2,768,9222,785,161$ (16,239)$ 2,490,499$
y
Draft 3/5/2015
68
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, 2014
With comparative actual totals for the year ended September 30, 2013
2014
Variance
Positive /
Final BudgetActual(Negative)2013
Revenues
Other taxes
$ 699,673500,000$ 199,673$ 565,562$
Investment earnings
1,538381,500 1,396
Miscellaneous
4,825- 4,825 3,770
Total Revenues
706,036501,500 204,536 570,728
Exenditures
p
Current:
General government
467,37952,200519,579 344,743
Total Exenditures
p
467,379519,579 52,200 344,743
Revenues over (under) expenditures
238,657(18,079) 256,736 225,985
Other Financin Sources (Uses)
g
Transfers in
1,9811,981
-
Transfers (out)
(207,500) (207,500) (187,500)-
Total Other Financin Sources (Uses)
g
(205,519)(205,519) - (187,500)
Net change in fund balance
33,138(223,598) 256,736 38,485
Fund balances, beginning of year
1,069,0031,069,003 - 1,030,518
Fund balances at ear end
$ 1,102,141845,405$ 256,736$ 1,069,003$
y
3/5/2015
69
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, 2014
With comparative actual totals for the year ended September 30, 2013
2014
Variance
Positive /
Final BudgetActual(Negative)2013
Revenues
Sales and Use Tax
$ 2,343,2341,989,438$ 353,796$ 2,037,823$
Investment Earnings
4,1706703,500 3,832
Total Revenues
2,347,4041,992,938 354,466 2,041,663
Expenditures
Current:
General government
677,836194,963872,799 600,153
Total Expenditures
677,836872,799 194,963 600,153
Revenues over (under) expenditures
1,669,5681,120,139 549,429 1,441,510
Other Financing Sources (Uses)
Transfers in
1,2111,211
- -
Transfers (out)
(1,125,545) (1,125,545) (1,105,061)-
Total Other Financing Sources (Uses)
(1,124,334) (1,124,334) (1,105,061)-
Net change in fund balance
(4,195) 545,234 549,429 336,449
Fund balances, beginning of year
2,768,155 2,768,155 2,431,706-
Fund balances at year end
$ 2,763,960$ 3,313,389$ 549,429$ 2,768,155
Draft 3/5/2015
70
CITY OF LA PORTE, TEXAS
PECIAL REVENUE FUND - TAX INCREMENT REINVESTMENT ZONE
S
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended September 30, 2014
With comparative actual totals for the year ended September 30, 2013
2014
Variance
Positive /
Final BudgetActual(Negative)2013
Revenues
Property Taxes
$ 2,156,2732,604,929$ (448,656)$ 1,542,391$
Investment Earnings
511520 (9) 581
Total Revenues
2,156,7842,605,449 (448,665) 1,542,972
Expenditures
Current:
General government
560,75739,243600,000 573,446
Capital outlay
1,851,875398,2052,250,080 1,231,449
Total Expenditures
2,412,6322,850,080 437,448 1,804,895
Net change in fund balance
(255,848)(244,631) (11,217) (261,923)
Fund balances, beginning of year
255,058255,058 - 516,981
Fund balances at year end
$ (790)10,427$ (11,217)$ 255,058$
Draft 3/5/2015
71
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, 2014
With comparative actual totals for the year ended September 30, 2013
2014
Variance
Positive /
Final BudgetActual(Negative)2013
Revenues
Fines and forfeitures
$ 196,458125,000$ 71,458$ 221,008$
Charges for services
242,997238,9974,000 55,010
Intergovernmental
1,572,360883,496688,864 568,052
Investment earnings
1,4721,472- 1,617
Miscellaneous
(850)850 2,500
Total Revenues
2,013,287818,714 1,194,573 848,187
Expenditures
Current:
General Government
57,643105,603163,246 206,319
Public Safety
492,473451,507943,980 356,611
Public Works
234,952332,526 97,574
Culture and recreation
65,62859,115 6,513 48,206
Capital Outlay
4,055,980900,8603,155,120 248,980
Total Expenditures
5,561,360 1,745,043 3,816,317 860,116
Net change in fund balance
(4,742,646) 268,244 5,010,890 (11,929)
Fund balances, beginning of year
1,156,652 1,156,652 1,168,581-
Fund balances at year end
$ (3,585,994)$ 1,424,896$ 5,010,890$ 1,156,652
Draft 3/5/2015
72
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, 2014
With comparative actual totals for the year ended September 30, 2013
2014
Variance
Positive /
Final BudgetActual(Negative)2013
Revenues
Sales and use tax
$ 1,171,617994,719$ 176,898$ 1,018,912$
Investment earnings
1,7587581,000 1,438
Total Revenues
1,173,375995,719 177,656 1,020,350
Expenditures
Current:
Public Works
173,104(173,104)- 380,450
Capital Outlay
170,4371,251,5631,422,000 471,591
Total Expenditures
343,5411,422,000 1,078,459 852,041
Net change in fund balance
829,834(426,281) 1,256,115 168,309
Fund balances, beinnin of ear
ggy
955,346955,346 - 787,037
Fund balances at ear end
y
$ 1,785,180529,065$ 1,256,115$ 955,346$
3/5/2015
73
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, 2014
With comparative actual totals for the year ended September 30, 2013
2014
Variance
Positive /
Final BudgetActual(Negative)2013
Revenues
Sales and use tax
$ 1,116,445900,000$ 216,445$ 960,568$
Investment earnings
348300 48 145
Total Revenues
1,116,793900,300 216,493 960,713
Expenditures
Current:
Public Safety
902,879988,151 85,272 680,162
Capital outlay
-35,000 35,000 26,256
Total Expenditures
902,8791,023,151 120,272 706,418
Revenues over (under) expenditures
213,914(122,851) 336,765 254,295
Other Financing Sources (Uses)
Transfers in
1,5981,598
- -
Net change in fund balance
(121,253) 215,512 336,765 254,295
Fund balances, beginning of year
501,468 501,468 - 247,173
Fund balances at year end
$ 380,215$ 716,980$ 336,765$ 501,468
Draft 3/5/2015
74
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, 2014
With comparative actual totals for the year ended September 30, 2013
2014
Variance
Positive /
Final BudgetActual(Negative)2013
Revenues
Investment earnings
$ --$ -$ 104$
Miscellaneous
- - 130,500
-
Total Revenues
- - 130,604
-
Other Financing Sources (Uses)
Transfers (out)
- - (78,662)
-
Net change in fund balance
- - 51,942
-
Fund balances, beginning of year
662,104 662,104 - 610,162
Fund balances at year end
$ 662,104$ 662,104$ -$ 662,104
Draft 3/5/2015
75
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, 2014
With comparative actual totals for the year ended September 30, 2013
2014
Variance
Positive /
Final BudgetActual(Negative)2013
Revenues
Investment earnings
$ 604-$ 604$ 1,783$
Total Revenues
604- 604 1,783
Expenditures
Capital outlay
74,46790,235 15,768 150,011
Total Expenditures
74,46790,235 15,768 150,011
Net change in fund balance
(73,863)(90,235) 16,372 (148,228)
Fund balances, beinnin of ear
ggy
1,787,1191,787,119 - 1,935,347
Fund balances at ear end
$ 1,713,2561,696,884$ 16,372$ 1,787,119$
y
Draft 3/5/2015
76
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, 2014
With comparative actual totals for the year ended September 30, 2013
2014
Variance
Positive /
Final BudgetActual(Negative)2013
Revenues
Charges for services
$ 268,230266,000$ 2,230$ 265,362$
Investment earnings
914500 414 570
Total Revenues
269,144266,500 2,644 265,932
Expenditures
Current:
Public Works
97,797453,000 355,203 74,524
Total Expenditures
97,797453,000 355,203 74,524
Net change in fund balance
171,347(186,500) 357,847 191,408
Fund balances, beinnin of ear
ggy
518,847518,847 - 327,439
Fund balances at ear end
$ 690,194332,347$ 357,847$ 518,847$
y
Draft 3/5/2015
77
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Draft 3/5/2015
78
SUPPLEMENTARY INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
General Fund
Draft 3/5/2015
79
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues - Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Taxes:
Ad valorem:
Current13,600,000$ 14,933,138$ 14,990,218$ 1,390,218$
Delinquent100,000100,000120,78720,787
Industrial Payments11,086,50011,556,54611,554,949468,449
Total ad valorem24,786,500 26,589,684 26,665,954 76,270
Penaty annterest160,500160,500175,415 14,915
ldi
Sales Taxes 3,978,875 4,309,521 4,686,476 707,601
Other Taxes 60,000 60,000 87,074 27,074
Francse Fees:
hi
Electrical1,312,105 1,261,449 1,257,497 (3,952)
Gas150,000 150,000 180,072 30,072
Telephone300,000 275,000 346,087 71,087
Cable371,374 400,000 382,611 (17,389)
Commercial Solidwaste85,000 90,000 86,137 (3,863)
Total Franchise Fees2,218,479 2,176,449 2,252,404 75,955
Charges for Services:
Public safety service fees1,433,596 1,444,606 1,543,742 99,136
Health and sanitation service fees2,146,600 2,212,500 2,227,342 14,842
Culture and recreation fees1,462,941 1,419,948 1,507,896 87,948
Other service fees420,521 442,371 340,575 (101,796)
Total Charges for Services5,463,658 5,519,425 5,619,555 100,130
Licenses and permits:
Building permits346,475 359,895 475,464 115,569
Licenses21,700 20,785 22,292 1,507
Total Licenses and permits368,175 380,680 497,756 117,076
Investment income71,000 71,000 67,519 (3,481)
Fines and forfeitures1,586,700 1,471,800 1,594,391 122,591
Miscellaneous40,000 40,000 256,379 216,379
3/5/2015
Total revenues38,733,887$ 40,779,059$ 41,902,923$ 1,123,864$
$ 40,779,059$ 40,779,059$ 40,779,059$ 40,779,059$ 41,902,923$ 41,902,923
Total revenues38,733,887Total revenues38,733,887Total revenues38,733,887Total revenues38,733,887Total revenues38,733,887Total revenues38,733,887$ 40,779,059Total revenues38,733,887$
40,779,059$ 41,902,923$ 41,902,923$ 41,902,923$ 1,123,864
$ 40,779,059$ 1,123,864
Draft 3/5/20153/5/20153/5/2015
Draft 3/5/20153/5/20153/5/2015
80
CITY OF LA PORTE, TEXAS
Page 1 of 4
General Fund
Schedule of Expenditures - Budget and Actual
For the year ended September 30, 2014
Variance with
Final Budet
g
Budeted AmountsActualPositive
g
OriinalFinalAmounts(Neative)
gg
General Government
Administration:
Emergency Management:
Persona servces 211,345 219,855 219,328 527
li$$$$
Suppes 7,397 9,169 8,920 249
li
Oter servces an carges 89,873 86,037 84,500 1,537
hidh
Total Emergency Management 308,615 315,061 312,748 2,313
Genera Amnstraton:
ldiii
Persona servces 433,444 447,546 446,692 854
li
Suppes 5,689 4,414 5,156 742
li()
Oter servces an carges 75,710 73,875 36,266 37,609
hidh
Tota Genera Amnstraton 514,843 525,835 488,114 37,721
lldiii
Communty Investment:
i
Suppes 27,650 29,550 27,744 1,806
li
Oter servces an carges 124,500 125,772 101,776 23,996
hidh
Tota Communty Investment 152,150 155,322 129,520 25,802
li
Human Resources:
Persona servces 261,723 250,115 219,504 30,611
li
Suppes 2,250 5,122 3,811 1,311
li
Oter servces an carges 165,112 154,376 146,585 7,791
hidh
Tota Human Resources 429,085 409,613 369,900 39,713
l
ormaton Tecnoogy
In
fihl
servces 509,855 535,393 535,070 323
Persona
li
es 82,387 192,848 142,727 50,121
Supp
li
er servces an carges1,210,5151,125,805 1,175,646 49,841
Ot
hidh()
Inormaton Tecnoogy1,802,7571,854,046 1,853,443 603
Tota
lfihl
cpa Court:
Mun
iil
Persona servces 622,052 655,418 655,100 318
li
Suppes an materas 19,750 16,250 15,740 510
lidil
Oter servces an carges 136,789 109,314 101,229 8,085
hidh
Tota Muncpa Court 778,591 780,982 772,069 8,913
liil
Purcasng:
hi
Persona servces 219,266 230,105 229,904 201
li
Suppes 1,450 1,520 1,334 186
li
Oter servces an carges 5,320 6,600 6,187 413
hidh
Tota Purcasng 226,036 238,225 237,425 800
lhi
Cty Secretary:
i
Persona servces 345,267 317,512 341,513 24,001
li()
Suppes an materas 11,450 16,583 13,230 3,353
lidil
Oter servces an carges 44,170 114,345 68,348 45,997
hidh
Tota Cty Secretar 448,440400,887 423,091 25,349
liy
Lega:
l
Persona servces 20,844 20,844 20,844 -
li
Oter servces an carges 179,000 154,105 151,693 2,412
hidh
Tota Lega 174,949199,844 172,537 2,412
ll
Draft 3/5/2015
Draft 3/5/20153/5/20153/5/20153/5/20153/5/2015
Cty Counc:
iil
Persona servces 38,754 37,147 36,192 955
li38,75438,75437,14737,14736,19236,192
cesces
Suppes an materas2 ,100 2,400 2,041 359
lidiilll100002,4002,4002,0412,041
s2s2s2s2
mater mater
aa
i
1
,,
s2s2s2
Oter servces an carges 18,058 17,927 14,294 3,633
hidh
Cty Counc 57,47458,912 52,527 4,947
Tota
liil
Total Administration
4,959,9474,871,720 4,811,374 148,573
81
CITY OF LA PORTE, TEXAS
Page 2 of 4
General Fund
Schedule of Expenditures - Budget and Actual
For the year ended September 30, 2014
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
General Government (continued)
Finance:
Accountng:
i
Persona servces 693,121 719,433 718,718 715
li$$$$
Suppes 14,050 14,409 14,207 202
li
Oter servces an carges 88,946 81,906 79,962 1,944
hidh
Tota Accountng 796,117 815,748 812,887 2,861
li
Nonepartmenta:
dl
Persona servces 907,237 1,050,998 1,050,379 619
li
Suppes 5,000 5,300 1,869 3,431
li
Oter servces an carges 1,987,858 973,498 914,392 59,106
hidh
Tota Nonepartmenta 2,029,7962,900,095 1,966,640 63,156
ldl
Tax Oce:
ffi
Persona servces 204,235 210,933 209,909 1,024
li
Suppes an materas 12,200 12,831 12,206 625
lidil
Oter servces an carges 193,470 194,935 194,548 387
hidh
Tota Tax Oce 409,905 418,699 416,663 2,036
lffi
Total Finance
4,106,117 3,264,243 3,196,190 68,053
Plannin and Enineerin:
ggg
Pannng an Engneerng:
lidii
Persona servces 914,612 800,214 715,256 84,958
li
Suppes 14,223 11,894 11,340 554
li
Oter servces an carges 112,885 127,946 93,305 34,641
hidh
Tota Pannng an Engneerng 1,041,720 940,054 819,901 120,153
llidii
on:
Inspect
i
Persona servces 760,077 734,056 663,289 70,767
li
Suppes 33,843 23,293 20,793 2,500
li
Oter servces an carges 143,132 142,789 45,571 97,218
hidh
Tota Inspecton 937,052 900,138 729,653 170,485
li
Total Planning and Engineering
1,978,772 1,840,192 1,549,554 290,638
Total General Government
10,956,609 10,064,382 9,557,118 507,264
Public Safety
Fire
Fre Preventon:
ii
Persona servces 283,837 290,482 289,882 600
li
Suppes 7,416 9,666 9,438 228
li
Oter servces an carges7,9529,3729,199173
hidh
Tota Fre Preventon 299,205 309,520 308,519 1,001
lii
Fre suppresson:
ii
Persona servces 1,415,321 1,400,538 1,400,110 428
li
Supplies 34,393 39,572 38,899 673
Oter servces an carges 234,388 232,188 225,872 6,316
hidh
Tota Fre Suppresson 1,684,102 1,672,298 1,664,881 7,417
lii
Emergency meca servces:
dili
di Draft li 3/5/2015
dicacal serv servces:
Persona servces 2,305,943 2,286,013 2,158,522 127,491
li2,305,9432,305,9432,286,0132,286,0132,158,5222,158,522
cesces
Suppes 148,501 165,164 154,264 10,900
li
148,501148,501165,164165,164154,264154,264
Other services and charges 126,054 129,604 124,484 5,120
Other services and chargesOther services and charges
126,054126,054129,604129,604124,484124,484
Tota Emergency Servces 2,580,498 2,580,781 2,437,270 143,511
Draft Draft 3/5/20153/5/20153/5/20153/5/20153/5/20153/5/2015
lii
Emergency Serv2,580,4982,580,4982,580,7812,580,7812,437,2702,437,270
Total Fire
4,563,805 4,562,599 4,410,670 151,929
82
3/5/20153/5/20153/5/20153/5/2015
CITY OF LA PORTE, TEXAS
Page 3 of 4
General Fund
Schedule of Expenditures - Budget and Actual
For the year ended September 30, 2014
Variance with
et
Final Bud
g
Budeted Amounts
ActualPositive
g
OriinalFinalAmounts(Neative)
gg
Public Safet (continued)
y
Police
Poce Amnstraton:
lidiii
Persona servces 662,835 701,580 700,799 781
li$$$$
Suppes 22,710 23,121 22,343 778
li
Oter servces an carges 252,011 283,647 268,199 15,448
hidh
Tota Poce Amnstraton 937,556 1,008,348 991,341 17,007.00
llidiii
Poce Patro:
lil
Persona servces 4,796,088 4,826,689 4,801,837 24,852
li
Suppes 281,898 296,133 288,913 7,220
li
Oter servces an carges 823,581 802,307 792,762 9,545
hidh
Capta Outay 147,500 140,999 135,262 5,737
ill
Tota Poce Patro 6,066,1286,049,067 6,018,774 47,354
llil
Crmna Investgaton:
iilii
Persona servces 2,003,827 1,986,465 1,886,092 100,373
li
Suppes 63,982 56,081 48,094 7,987
li
Oter servces an carges 129,027 128,943 122,253 6,690
hidh
Tota Crmna Investgaton 2,196,836 2,171,489 2,056,439 115,050
liilii
Support Servces:
i
Persona servces 2,316,029 2,333,906 2,333,875 31
li
es 87,213 107,161 100,214 6,947
Supp
li
er servces an carges 139,401 123,962 121,375 2,587
Ot
hidh
Support Servces 2,542,643 2,565,029 2,555,464 9,565
Tota
li
Total Police
11,726,102 11,810,994 11,622,018 188,976
Total Public Safet 16,373,59316,289,907 16,032,688 340,905
y
Public Works
Puc Wors Amnstraton:
blikdiii
Persona servces 296,491 307,716 307,250 466
li
Suppes an materas4 ,954 5,950 4,801 1,149
lidil
Oter servces an carges 50,252 79,599 58,659 20,940
hidh
Tota Puc Wors Amnstraton 351,697 393,265 370,710 22,555
lblikdiii
Streets:
Persona servces 1,597,921 1,602,957 1,596,836 6,121
li
es 166,768 180,739 174,865 5,874
Supp
li
er servces an carges794,506764,572768,6854,113
Ot
hidh()
ta Outay 6,500 5,620 5,620
Cap
ill
Streets 2,565,695 2,553,888 2,546,006 7,882
Tota
l
Total Public Works
2,917,392 2,947,153 2,916,716 30,437
Health and Sanitation
Resenta sowaste:
idillid
Persona servces 1,186,172 1,071,237 1,109,155 37,918
li()
Suppes 256,276 278,485 277,531 954
li
Oter servces an carges 877,334 971,061 930,818 40,243
hidh
dh877,334 3/5/2015 971,061930,818
971,061
ces ances and carges930,818
c877,334
h
arges
Tota Resenta Sowaste 2,319,782 2,320,783 2,317,504 3,279
Draft 3/5/20153/5/20153/5/2015
Draft 3/5/20153/5/20153/5/2015
lidillllidlidlid
So2,319,7822,319,7822,320,7832,320,7832,317,5042,317,504
wastewaste
Draft Draft 3/5/20153/5/20153/5/20153/5/20153/5/20153/5/2015
Commerca sowaste:
illidlidlid
waste:waste:
Oter servces an carges 15,500 16,780 16,680 100
hiddhh15,50015,50016,78016,680
Tota Commerca Sowaste 15,500 16,780 16,680 100
lillid
Total Health and Sanitation
2,335,282 2,337,563 2,334,184 3,379
83
CITY OF LA PORTE, TEXAS
Page 4 of 4
General Fund
Schedule of Expenditures - Budget and Actual
For the year ended September 30, 2014
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Culture & Recreation
Mantenance:
Par
ki
Persona servces 1,263,174 1,320,077 1,312,147 7,930
li$$$$
Suppes an materas 132,800 134,208 133,899 309
lidil
er servces an carges 768,520 849,318 817,584 31,734
Ot
hidh
Capta outay 46,150 19,828 8,350 28,178
ill()()
Tota Par Mantenance 2,210,644 2,283,775 2,271,980 11,795
lki
Recreaton:
i
Persona servces 510,487 474,577 427,143 47,434
li
es 39,033 41,522 41,493 29
Supp
li
Oter servces an carges 179,699 180,682 168,466 12,216
hidh
Tota Recreaton 729,219 696,781 637,102 59,679
li
Speca Servces:
ili
Persona servces 387,059 377,242 363,728 13,514
li
es 23,895 24,227 23,745 482
Supp
li
Oter servces an carges 48,853 47,717 46,251 1,466
hidh
Tota Speca Servces 459,807 449,186 433,724 15,462
lili
Pars Amnstraton:
kdiii
Persona Servces 535,440 556,201 555,674 527
li
Suppes 5,850 9,577 9,056 521
li
Oter Servces an Carges 21,015 20,649 19,886 763
hidh
Tota Pars Amnstraton 562,305 586,427 584,616 1,811
lkdiii
Go Course - Cu House
lflb
Persona Servces 407,044 415,576 415,195 381
li
Suppes 56,178 54,796 54,298 498
li
Oter Servces an Carges 75,195 65,884 58,509 7,375
hidh
Tota Go Course 538,417 536,256 528,002 8,254
llf
Go Course - Mantenance
lfi
Persona Servces 630,026 620,018 618,824 1,194
li
Supplies 147,250 149,893 146,603 3,290
Oter Servces an Carges 206,613 174,796 160,758 14,038
hidh
Go Course 983,889 944,707 926,185 18,522
Tota
llf
Total Culture & Recreation
5,484,281 5,497,132 5,381,609 115,523
Total General Fund
$ 37,983,471$ 37,219,823$ 36,222,315$ 997,508
Draft 3/5/2015
84
COMBINING FINANCIAL STATEMENTS
Draft 3/5/2015
85
(This page intentionally left blank.)
Draft 3/5/2015
86
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.
Draft 3/5/2015
87
CITY OF LA PORTE, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
September 30, 2014
Vehicle
Employee
Replacement Health
FundInsuranceTechnology
Total
Assts
Current assets:
Cash and cash equivalents1,521,602$ 739,815$ 689,554$ 2,950,971$
Investments974,249 479,998 447,370 1,901,617
Accounts Receivables, net- 120,672 6,384 127,056
Other receivables1,279 630 587 2,496
Inventories32,422 - 32,422
-
Total current assets
2,529,552 1,341,115 1,143,895 5,014,562
Non-current assets:
Capital Assets:
Equipment and Furniture 15,725,087 - 297,334 16,022,421
Less Accumulated depreciation (7,802,140) - (205,236) (8,007,376)
Total non-current assets
7,922,947 - 92,098 8,015,045
Total assets
10,452,499 1,341,115 1,235,993 13,029,607
Liabilities
Current Liabilities:
Accounts payable 24,307 2,666 2,203 29,176
Salaries payable 24,053 - 24,053
-
Unearned revenue - 745 - 745
Claims and judgments 575,349- - 575,349
Total current liabilities 48,360 578,760 2,203 629,323
Non-current liabilities:
Compensated absences 57,033 - 57,033
-
Total non-current liabilities 57,033 -57,033
-
Total liabilities
105,393 578,760 2,203 686,356
Net Position
Investment in capital assets 7,922,947 - 92,098 8,015,045
Unrestricted2,424,159762,3551,141,6924,328,206
Total net position
$ 10,347,106$ 762,355$ 1,233,790$ 12,343,251
Draft 3/5/2015
88
CITY OF LA PORTE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2014
Vehicle Employee
Replacement Health
FundInsuranceTechnologyTotal
Revenues
Charges for services2,542,143$ 5,330,154$ 321,115$ 8,193,412$
Total operating revenues
5,330,1542,542,143 321,115 8,193,412
Operating Expenses
Personal services678,533 139,935 - 818,468
Supplies and materials408,772- 86,302 495,074
Other expenses- 6,463,460 8,946 6,472,406
Depreciation1,055,662 - 17,162 1,072,824
Total operating expenses
6,603,3952,142,967 112,410 8,858,772
Operating income (loss)399,176 (1,273,241) 208,705 (665,360)
Non-Operating Revenues (Expenses)
Interest and investment revenue5,011 2,895 1,710 9,616
Gain (loss) on disposal of capital assets(31,955) - (31,955)
-
Total non-operating revenue (expenses)
(26,944) 2,895 1,710 (22,339)
Income (loss) before transfers 372,232 (1,270,346) 210,415 (687,699)
Capital contributions (16,383) - (16,383)
-
Transfers in 11,883 479,648 - 491,531
Transfers out (13,236) - (13,236)
-
Change in net position 354,496 (790,698) 210,415 (225,787)
Total net position - beginning
9,992,610 1,553,053 1,023,375 12,569,038
Total net position - ending
$10,347,106$ 762,355$ 1,233,790$ 12,343,251
Draft 3/5/2015
89
CITY OF LA PORTE, TEXAS
STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2014
Vehicle
Replacement Employee Health
FundInsuranceTechnologyTotal
Cash Flows from Operating Activities
Receipts from customers and users2,541,054$ 5,330,154$ 314,533$ 8,185,741$
Disbursed for personnel services(672,479) (140,565) (813,044)
-
Disbursed for goods and services (401,824) (6,370,448) (93,045) (6,865,317)
Net cash provided (used) by operating activities
1,466,751 (1,180,859) 221,488 507,380
Cash Flows from NonCapital Financing Activities
Transfers from other funds 11,883 479,648 - 491,531
Transfers to other funds (13,236) - (13,236)
-
Operating grants and contributions 16,383 - 16,383
-
Net cash provided by (used by) noncapital financing activities
15,030 479,648 - 494,678
Cash Flows from Capital and Related
Financing Activities
Proceeds from the sale of equipment 31,955 - 31,955
Acquisition and construction of capital assets, net of disposals (2,338,095) (91,389)- (2,429,484)
Net cash used by capital and related financing activities
(2,306,140) (91,389)- (2,397,529)
Cash Flows from Investing Activities
Purchase of investments - 86,525 (150,508)
(63,983)
Sale of investments 4,901 - 4,901
-
Interest received 5,011 2,895 1,710 9,616
Net cash provided by (used by) investing activities
9,912 89,420 (148,798) (49,466)
Net increase in cash and equivalents (814,447) (611,791) (18,699) (1,444,937)
Cash and equivalents, beginning of year
2,336,049 1,351,606 708,253 4,395,908
Cash and equivalents, at end of year
$ 1,521,602$ 739,815$ 689,554$ 2,950,971
Unrestricted cash and equivalents1,521,602$ 739,815$ 689,554$ 2,950,971$
$ 739,8151,521,602$ 689,554$ 2,950,971$
Reconciliation of operating income to net cash provided by
operating activities
Operating income (loss)399,176$ (1,273,241)$ 208,705$ (665,360)$
Adjustments to reconcile operating income to net cash provided by
operating activities:
Depreciation1,055,662 - 17,162 1,072,824
(Increase) decrease in accounts receivable5 (630) (6,582) (7,207)
(Increase) decrease in inventory(1,094) - (1,094)
-
Increase (decrease) in claims and judgments payable - 94,765 - 94,765
Increase (decrease) in claims and judgments payable 3/5/2015 94,765
Increase (decrease) in claims and judgments payable
94,765
Draft
Increase (decrease) in accounts payable 6,893 (2,498) 2,203 6,598
Increase (decrease) in accounts payableIncrease (decrease) in accounts payable(2,498)(2,498)
6,8936,893
Increase (decrease) in salaries payable 55 55
Increase (decrease) in salaries payableIncrease (decrease) in salaries payable
5555
-- -
Increase (decrease) in compensated absences 6,054 - 6,054
Increase (decrease) in compensated absencesIncrease (decrease) in compensated absences
6,0546,054
--
Increase (decrease) in unearned revenue 745 745
Net cash provided by operating activities
$ 1,466,751$ (1,180,859)$ 221,488$ 507,380
90
STATISTICAL SECTION
(Unaudited)
Draft 3/5/2015
91
(This page intentionally left blank.)
Draft 3/5/2015
92
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 94
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
104
These schedules contain information to help the reader assess the government's most
significant local revenue sources, the property tax.
Debt Capacity 110
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
115
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 117
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.
Draft 3/5/2015
93
CITY OF LA PORTE, TEXAS
NET POSITION BY COMPONENT
Last Ten Fiscal Years
Amounts in (000's)
(Accrual Basis of Accounting)
20052006200720082009
Governmental Activities
Net investment in capital assets28,933$24,923$32,667
$ $ 2 8,424$ 2 7,529
Restricted6,642 13,3177,36316,56716,170
Unrestricted19,37018,98516,838
1 8,984 1 9,986
Total governmental activities net position$54,945$60,475
$ 54,771$ 60,832$ 65,676
Business-type Activities
Net investment in capital assets$26,590$35,483$40,206
$ 2 9,642$ 2 9,481
Restricted3,4072,1862,1852,1881,353
Unrestricted1,2653,3973,2963,7992,473
Total business-type activities net position
$31,262$41,471
$ 35,225$ 34,962$ 44,032
Primary Government
Net investment in capital assets$55,523$60,406$72,874
$ 5 8,066$ 5 7,010
Restricted10,050 15,5019,54918,75517,523
Unrestricted20,63522,78519,311
2 2,380 23,281
Total primary government net position$86,207$95,793$109,707
$ 89,996$ 101,945
Draft 3/5/2015
94
Exhibit 1
20102011201220132014
$ 37,32435,195$ 46,814$ 49,304$ 54,506$
8,06018,108 8,7288,90211,088
26,85913,904 21,62122,53018,635
$ 72,24367,207$ 77,163$84,229
$ $ 80,736
$40,595$37,606$37,567$36,347$35,873
1,4606805592,0961,413
2,0274,1993,7912,3013,187
$44,082$42,485$41,917$40,473
$ 40,744
$75,790$74,930$84,381$85,651$90,379
19,5688,7409,287 12,501
10,998
15,93231,05825,41224,831 21,822
$111,290$114,728$119,080$124,702
$ 121,480
Draft 3/5/2015
95
CITY OF LA PORTE, TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000's)
(Accrual basis of accounting)
Fiscal Year
20052006200720082009
Expenses
Governmental activities:
General government7,411$ 7,349$ 8,411$ 10,056$ 11,443$
11,603 12,153 15,495
Public safety 10,368 16,267
Public works 5,165 5,210 3,668 8,095
4,348
Health, welfare and sanitation 1,887 1,862 2,488 2,379
2,465
Culture and recreation 3,718 3,580 3,120 4,223
4,004
Interest on long-term debt 864 1,226 1,353 1,527
1,695
Total governmental activities expenses 29,413 30,830 31,193 43,162
38,836
Business-type activities:
Water Services 6,478 6,845 6,548 4,833
6,631
Sewer services 1,820 1,894 2,087 2,603
2,247
Airport 157 183
123 124 1 56
Bay Forest Golf Course 1,243 1,285 1,311 1,437
1,362
Sylvan Beach Convention Center 212 225 26
215 218
Total business-type activities expenses 9,909 10,361 10,288 10,621 9,082
Total primary government expenses$ 39,322$ 41,191$ 41,481$49,458$ 52,244
Program Revenue
Governmental activities:
Charges for services
General government$ 670$ 1,002$ 2,007$ 2,725$ 3,061
Public safety 1,498 1,333 1,681591
435
Public works 24
- - - -
Health, welfare and sanitation 1,430 1,771 1,856 1,849
1,889
Culture and recreation 461 448
430 418 4 18
Operating grants and contributions 2,640 1,031992 5,165
4,648
General government -
- - - -
Public safety -
- - - -
Public works -
- - - -
Culture and recreation -
- - - -
Capital grants and contributions
General government - - 1,260235
-
Culture and recreation -
- - - -
Total governmental activities program
revenues
6,723 5,567 10,5055,708 13,463
Business-type activities:
Charges for services
Water Services 4,500 5,439 4,790 4,520
6,133
Sewer services 2,591 2,842 2,764 3,363
3,670
Airport 33 36 42 53
6 5
Bay Forest Golf Course 966911 1,067
956 1,032
Sylvan Beach Convention Center 164 163 161
189 2
Capital grants and contributions - 1,061- 1,786
2,338
Total business-type activities program
revenues
8,254 9,435 13,3989,758 10,791
Draft 8,254 3/5/2015 9,435 13,3989,758
13,398
9,758
9,435
Total primary government program
Draft 3/5/20153/5/20153/5/20153/5/20153/5/2015
Draft 3/5/20153/5/20153/5/20153/5/20153/5/2015
Total primary government program Total primary government program
revenues
$ 14,977$ 15,003$ 15,465$23,903$ 24,255
$ $ $ $ $ $$$ $
14,97714,97715,00315,00315,46515,46523,90323,903
Draft 3/5/20153/5/20153/5/20153/5/20153/5/2015
Draft 3/5/20153/5/20153/5/20153/5/20153/5/2015
Net (Expense)/Revenue
Governmental activities$(22,689)$ (25,263)$(25,486)$ (29,699)(28,331)$
Business-type activities (1,655) (926)(530) 1,710
2,777
Total primary government net expense$(24,344)$ (26,189)$(26,016)$ (27,990)(25,554)$
96
Exhibit 2
Page 1 of 2
20102011201220132014
$ 14,57511,497$ 14,091$ 13,854$ 14,115$
16,30617,109 17,375 17,765 20,436
6,2804,601 3,784 4,451 6,260
2,4532,521 2,424 2,328 2,519
6,0336,483 6,361 5,722 5,855
1,8711,557 1,268 1,385 1,404
47,51843,769 45,303 45,505 50,589
5,7205,721 7,692 8,206 7,731
2,6742,674 2,932 2,599 2,802
181181 213 230
210
1,485 1,485 - - -
- - - - -
10,062 10,061 10,836 11,015 10,763
$ 53,831$ 57,579$ 56,139$ 56,520$ 61,352
$ 3,116$ 712$ 844$ 646$ 826
1,593 3,506 3,128 3,314 3,208
1,067 330 268 270
266
1,842 2,046 2,197 2,204 2,223
661 1,474 1,385 1,444 1,509
1,004 - - - -
- 8 240
3 3
- 611 431 546
433
- 428 766 20 258
- 107 78 393 1,208
- - - - -
- 1 1 - -
9,283 9,223 9,338 8,723 10,051
3,850 6,267 6,0555,6945,407
3,307 3,535 3,601 3,420 3,423
53 56 60 56
55
1,002 - - - -
- - - - -
860 1,442 859 1,398 1,126
9,073 11,300 10,575 10,568 10,012
11,30010,57510,568 3/5/2015 10,012
10,012
11,300
10,568
Draft Draft Draft 3/5/20153/5/2015
Draft Draft Draft 3/5/20153/5/2015
$ 18,356$ 20,523$ 19,913$ 19,292$ 20,062
$ $ $ $ $ $
20,52320,52319,91319,91319,29219,29220,06220,062
Draft Draft Draft 3/5/20153/5/2015
Draft Draft Draft 3/5/20153/5/2015
$ (34,485)$ (38,295)$ (35,965)$ (36,782)$ (40,537)
(989) 1,239 (261) (447) (752)
$ (35,474)$ (37,056)$ (36,226)$ (37,229)$ (41,290)
97
CITY OF LA PORTE, TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000's)
(Accrual basis of accounting)
Fiscal Year
20052006200720082009
General Revenues and
Other Changes in Net Position
Governmental activities:
Property taxes11,062$ 11,816$ 12,197$ 13,066$ 13,683$
Industrial payments6,896 6,992 7,660 8,189 7,959
Sales and use taxes3,263 3,4605,7365,803
4,068
Franchise taxes 1,719 1,8862,0042,165
1,987
Investment earnings 3767202,3871,783
1,875
Other revenues 495 1,213857 89115
Gain/(Loss) on sale of capital assets -
- - - -
Transfers 685 (3,910)382 76(3,533)
Total governmental activities
24,496 31,54627,975
26,112 25,089
Business-type activities:
Investment earnings 89 165 300 343 199
Other revenues 874 827 695
- -
Gain/(Loss) on sale of capital assets (6) (16)-
- -
(76) 3,533
Transfers (685) 3,910(382)
Total business-type activities
272 4,889611 3,732267
Total primary government
$ 24,768$26,723$29,978$ 31,813$31,707
Change in Net Position
Governmental activities$ 1,807$ 3,215(396)$ $(1,725)
$ 850
Business-type activities (1,383) 4,359(315) 3,0445,442
Total primary government
$ 424$ 3,962535$$ 6,259$ 3,717
Draft 3/5/2015
98
Exhibit 2
Page 2 of 2
20102011201220132014
$ 17,74216,391$ 17,251$ 17,782$ 19,925$
10,73210,555 10,47111,10811,555
5,7875,9148,2678,71810,105
2,1602,1712,3122,1842,252
68814384106
294
93164168432459
- 1,941-
- -
(779) (1,000) 334 720 (371)
34,895 36,017 40,887 41,029 44,031
73 12
39 8 9
- - 16 36 100
-
- - - -
779 1,000 (334) (720) 371
852 1,040 (306) (676) 480
$35,747$ 37,057$ 40,581$ 40,353$ 44,511
$ 410$ (2,278)$ 4,922$ 4,244$ 3,493
(137)2,279(568)(1,124)(271)
$ 273$ 4,3541$ $ 3,120$ 3,221
Draft 3/5/2015
99
CITY OF LA PORTE, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS
Last ten Fiscal Years
Amounts in (000's)
(Modified Accrual Basis of Accounting)
Fiscal Year
20052006200720082009
General Fund
Nonspendable69$ 70$ 83$ 105$ 102$
Committed-
- - - -
Assigned 550 126134296199
Unassigned 11,5828,644 14,49414,40513,758
Total general fund
$ 11,7789,263$ 14,711$ 14,806$ 14,059$
All Other Governmental Funds
Restricted$6,236$6,705$9,318$8,489$5,813
Committed 18,81416,488 18,660 19,933 17,944
Assigned -
- - - -
Unassigned -
- - - -
Total all other governmental funds
$ 25,51922,724$ 27,979$ 28,423$ 23,757$
Draft 3/5/2015
100
Exhibit 3
20102011201220132014
$ 139135$ 94$ 125$ 103$
- 3,5008,500-
-
151963010478
12,27419,11923,83923,85621,294
$ 19,35212,561$ 23,964$ 27,585$ 29,975$
$ 14,0847,644$ 12,573$ 12,194$$ 14,177
20,331 9,079 6,553 2,962
5,586
7
- - - -
-- (31) - (1)
$ 23,16327,983$ 19,096$ 17,780$ 17,138$
Draft 3/5/2015
101
CITY OF LA PORTE, TEXAS
CHANGES IN FUND BALANCE, GOVERNMENTAL FUNDS
Last ten Fiscal Years
Amounts in (000's)
(Modified Accrual Basis of Accounting)
Fiscal Year
20052006200720082009
Revenues
Taxes
$ 25,68824,046$ 28,919$ 30,060$ 34,930$
Donations
-30 30
- -
Harris County Joint Ventures
1,752
- - - -
Licenses and permits
531 642
683 920 560
Fines and forfeits
678 848 1,244 1,833
1,726
Charges for services
3,233 3,888 3,967 4,470
3,958
Intergovernmental
1,113 1,174 716 4,755 4,868
Interest
631 1,709 2,117 1,883 610
Miscellaneous
184 163 90 105
77
Total Revenues
32,197 34,154 37,990 43,033 47,458
Expenditures
General government 6,849 7,237 7,696 9,869
8,418
Public safety 10,533 11,072 11,769 15,610 13,859
Public works 2,430 2,360 2,407 6,664
2,909
Health and sanitation 1,808 1,814 1,973 2,087
2,479
Culture and recreation 3,068 3,011 3,103 3,817
3,470
Debt service:
Principal 1,330 1,195 1,235 1,695
1,655
Interest 820 1,180 1,428 1,572
1,758
Bond issuance cost 211 154
195 - -
Capital outlay 8,566 6,550 10,013 6,351 15,557
Total Expenditures
35,615 34,613 39,779 42,650 55,120
Excess of revenues over (under) expenditures
(3,418) (459) (1,789) (7,662)383
Other Financing Sources (Uses)
General obligation bonds issued
16,587 6,965 8,075
- -
Refunding bonds issued
-
- - - -
Premium on refunding bonds issued
- 191 38
- -
Payment to refunded bond escrow agent
3,222 6,056 4,197 7,625 14,232
Transfers in
(3,774) (7,533) (5,148) (7,501) (12,119)
Transfers out
42 90 32 137
21
Sale of capital assets
-
- - - -
Total other financing sources (uses)
16,077 5,769 7,183 156 2,250
Draft 3/5/2015
Net cange nunaances ,5 5, 5, 5 5,
hifdbbbll$$12121266999$$310310$$$393393393$$38$(412)
555,5,5,
$$
aaancesances
,310
,
3/5/20153/5/20153/5/20153/5/2015
3/5/20153/5/20153/5/20153/5/2015
Debt service as a percentage of noncapital
expenditures
8.7%9.2%9.5%9.4%8.3%
102
Exhibit 4
20102011201220132014
$ 35,76138,35339,83543,83736,682
-
- - - -
-
- - - -
476 313 465 368 498
1,803 1,724 1,758 1,887 1,791
6,084 5,680 5,957 6,009 6,305
989 917 1,239 1,572568
263 193 129 76 97
125 242 36 426 261
46,421 44,831 47,937 49,16954,361
9,788 10,289 10,462 11,043 13,828
14,612 15,688 15,752 16,322 17,428
2,819 3,118 3,439 3,247 3,433
2,233 2,182 2,226 2,244 2,334
5,048 5,314 5,261 5,227 5,441
1,755 1,740 2,170 2,365 2,640
1,388 1,871 1,520 1,385 1,218
200 - 151 - 154
10,843 8,714 8,583 5,500 5,446
48,686 48,916 49,563 47,33351,922
(2,264) (4,085) (1,627) 1,835 2,439
6,265
- - - -
4,295 - 9,435 9,300-
225 - 364 - 608
(4,410) - (9,639) (9,749)-
9,158 4,248 2,711 3,884 3,912
(10,545) (5,012) (2,644) (3,630) (4,761)
6,8225 1,941 215
4,993 6,058 2,168 469 (690)
Draft 3/5/2015
,7 ,7 5 ,,7
$229$11997222$$55434343$$22304304304$$11,7494949
$
,,
$
Draft Draft 3/5/20153/5/2015
Draft Draft 3/5/20153/5/2015
8.8%9.0%9.4%9.0%8.3%
103
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
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
200820072,007,113,146 372,331,715- 428,955,092 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
201320122,080,199,179 797,558,553 - 536,721,284 2,341,036,448
201420132,176,582,621 986,494,475 - 590,232,231 2,572,844,865
Source: Harris County Certified Tax Rolls and Corrections.
Draft 3/5/2015
104
Exhibit 5
Assessed Value
Estimated as a Percent of
Actual Taxable
Total Direct Actual Taxable
Tax RateValueValue
$ 1,634,888,9400.710000$ 100%
1,695,166,5980.710000 100%
1,792,232,6830.710000 100%
1,950,489,7690.710000 100%
2,204,920,0610.710000 100%
2,328,898,5090.710000 100%
2,213,606,7180.710000 100%
2,264,917,0780.710000 100%
2,341,036,4480.710000 100%
2,572,844,8650.710000 100%
Draft 3/5/2015
105
CITY OF LA PORTE, TEXAS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
20052006200720082009
City of La Porte by fund:
General0.61100$ 0.61100$ 0.61200$ 0.61900$ 0.61900$
Debt service0.09900 0.09900 0.09800 0.09100 0.09100
Total Direct Rates
0.710000.710000.710000.710000.71000
Harris County Flood Control District0.03322 0.03241 0.03106 0.03086 0.02922
Harris County0.39986 0.40239 0.39239 0.38923 0.39224
Port of Houston Authority0.01474 0.01302 0.01437 0.01773 0.01636
Harris County Board of Education0.00629 0.00629 0.00585 0.00584 0.00605
Hospital District0.19020 0.19216 0.19216 0.19216 0.19216
La Porte I.S.D.1.73400 1.73400 1.30500 1.32500 1.32500
San Jacinto Jr. College District0.14537 0.14537 0.14537 0.16341 0.17080
Total Direct and Overlapping
Rates
$ 3.235643.23368$ 2.79620$ 2.83423$ 2.84183$
Tax rates per $100 of assessed valuation
Source: Harris County Appraisal District
Draft 3/5/2015
106
xhibit 6
E
20102011201220132014
$ 0.605000.61900$ 0.60500$ 0.64000$ 0.61400$
0.105000.09100 0.10500 0.07000 0.09600
0.710000.710000.710000.710000.71000
0.028090.02923 0.02809 0.02827 0.02736
0.391170.38805 0.40021 0.41455 0.41731
0.018560.02054 0.01952 0.01716 0.01531
0.006580.00658 0.00662 0.00636 0.00600
0.192160.19216 0.18216 0.17000 0.17000
1.355001.32500 1.33000 1.33000 1.33000
0.185600.17628 0.18560 0.18560 0.18560
$ 2.887162.84784$ 2.86220$ 2.86194$ 2.86158$
Draft 3/5/2015
107
CITY OF LA PORTE, TEXAS
Exhibit 7
PRINCIPAL PROPERTY TAXPAYERS
Current Year and 10 Years Ago
20142005
% of% of
TaxableTaxableTaxableTaxable
AssessedAssessedAssessedAssessed
Property Tax PayerValueRankValueProperty Tax PayerValueRankValue
Nov Wilson LP74,053,442$ 12.88%Oxy Vinyls LP49,186,150$ 13.01%
Conoco Phillips Co.52,030,495 22.02%Conoco Phillips, Inc.48,612,640 22.97%
Equistar Chemicals LP50,527,188 31.96%Equistar Chemicals LP45,125,300 32.76%
Granite Underwood Dist. Ctr LP47,208,417 41.83%BP Solvay 38,054,910 42.33%
Oxy Vinyls LP40,697,859 51.58%Centerpoint Energy23,824,970 51.46%
Ineos USA LLC37,999,780 61.48%PPG Industries 23,585,660 61.45%
Underwood Distibution Ctr. LP36,700,000 71.43%Attofina Petrochemicals22,293,400 71.36%
The Dow Chemical Company28,089,314 81.09%Dow Chemicals20,710,190 81.28%
Port Crossing Land LP26,996,451 91.05%DuPont Dow Elastomers17,664,140 91.08%
Dow Chemical26,288,138 101.02%Calpine Corporation 13,445,270 100.82%
Subtotal420,591,084 16.35%302,502,630 18.50%
Other Taxpayers2,152,253,781 83.65%1,332,386,310 81.50%
Total2,572,844,865$ 100.00%1,634,888,940$ 100.00%
Source: City of La Porte Tax Assessor-Collector's records.
Draft 3/5/2015
108
CITY OF LA PORTE, TEXAS
Exhibit 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected within the
Fiscal
YearTaxes Levied Fiscal Year of the Levy Collections in Total Collections to Date
Endedfor thePercentageSubsequentPercentage
Sept 30,Fiscal YearAmountof LevyYearsAmountof Levy
200511,669,473$ 11,334,572$ 97.1%279,643$ 11,614,215$ 99.5%
200612,080,35111,755,12197.3%278,102 12,033,22399.6%
200712,703,85012,418,873 97.8%247,655 12,666,52899.7%
200813,857,46713,476,872 97.3%355,344 13,832,21699.8%
200915,654,93715,377,149 98.2%235,260 15,612,40999.7%
201016,542,48316,309,818 98.6%150,949 16,460,76799.5%
201115,871,49815,599,930 98.3%220,779 15,820,70999.7%
201216,080,91115,860,664 98.6%176,608 16,037,27299.7%
201316,621,36116,518,207 99.4%97,385 16,615,592100.0%
201418,267,20118,090,456 99.0%- 18,090,45699.0%
Draft 3/5/2015
109
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 ObligationLimited RevenueObligationOther *
YearBondsBondsTax BondsBondsBondsObligations
200511,925$ 11,050$ 5,400$ 500$ 145$ 6,500$
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
201316,875 18,905 1,350 - - 3,117
201423,726 10,845 540 2,208-
-
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.
* - Includes premium on bonds
Draft 3/5/2015
110
Exhibit 9
TotalPercentage
Primaryof PersonalPer
Income
GovernmentCapita
$ 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
N/A1,16540,248
N/A1,07237,319
Draft 3/5/2015
111
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
2005200428,375$ 11,050$ 1,584 37,841$ 2.3%N/A345$
2006200517,740 16,405 1,705 32,440 1.9%N/A772
2007200616,930 24,055 1,814 39,171 2.2%N/A928
2008200716,065 23,265 1,926 37,404 1.9%N/A1,105
2009200815,190 22,445 2,000 35,635 1.6%N/A1,051
2010200915,715 26,3501.7%N/A 965
2,151 39,914
2011201014,720 25,6053,11837,207 1.7%N/A 1,152
2012201118,670 20,1503,11335,707 1.6%N/A 1,090
2013201218,225 18,9052,49034,640 1.5%N/A 1,165
2014201324,266 10,8452,76932,342 1.3%N/A 1,072
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.
Draft 3/5/2015
112
CITY OF LA PORTE, TEXAS
Exhibit 11
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
September 30, 2014
(dollars in thousands, except per capita)
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Debt repaid with property taxes
Harris County2,474,458,204$ 0.80%19,795,666$
Harris County Department of Education7,410,000 0.80%59,280
Harris County Flood Control District89,990,000 0.80%719,920
Harris County Toll Road - 0.80%-
La Porte ISD292,055,000 37.54%109,637,447
Port of Houston Authority717,624,397 0.80%5,740,995
San Jacinto Jr. College District288,044,848 6.07%17,484,322
Total Net Overlapping Debt3,869,582,449$ 153,437,630
b
City of La Porte direct debt
100%37,318,50337,318,503
Total direct and overlapping debt190,756,133$
b
Approximately $16,152,236 of the City's outstanding debt is self-supporting
Source: Texas Municipal Reports
Percentages are based on total property values
Draft 3/5/2015
113
CITY OF LA PORTE, TEXAS
Exhibit 12
PLEDGED-REVENUE COVERAGE
Last Ten Fiscal Years
Debt Service
Revenues
Available
Gross Operating
Fiscal for Debt
(1)(2)
YearRevenues Expenses ServicePrincipalInterestTotalCoverage
20056,193,451$ 5,259,943$ 933,508$ 565,000$ 43,161 1.5
$ $ 6 08,161
20067,438,016 111,712381,712 5.4
5,389,783 2,048,233 270,000
20076,722,774 106,828369,328 2.8
5 ,681,548 1,041,226 262,500
20088,916,777479,105 6.8
5 ,653,497 3,263,280 387,500 91,605
20097,920,114463,850 4.7
5,743,725 2,176,389 387,500 76,350
20107,822,294525,000216,458741,458 1.8
6,514,343 1,307,951
20118,569,767585,000104,488689,488 3.1
6,458,483 2 ,111,284
20128,383,162605,00088,150693,150 2.5
6,641,482 1 ,741,680
20137,940,5807,256,098684,482 625,00073,556698,556 1.0
20147,758,5096,961,915796,594 630,00058,650688,650 1.2
(1)
Total revenues including interest
(2)
Total operating expenses less depreciation
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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,
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/A337,7396.3%
201334,553N/AN/A337,7296.3%
201434,813N/AN/A337,6345.0%
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
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115
CITY OF LA PORTE, TEXAS
Exhibit 14
PRINCIPAL EMPLOYERS
Current Year and Eight Years Ago
20142006
PercentagePercentage
of Total Cityof Total City
EmployeesEmploymentEmployeesEmployment
EmployerEmployer
La Porte Independent School District 1,0495.46%La Porte ISD 1,0005.29%
City of La Porte 3811.98%E.I. DuPont De Nemours & Co.5803.07%
Mistras Group Inc 5002.60%City of La Porte3681.95%
International Plant Svcs LLC 3761.96%Fumanite Worldwide3341.77%
Sulzer Turbo Svcs Houston Inc 3301.72%A & L Industrial Services Inc3001.59%
A&L Industrial Services Inc 3001.56%CCC Group, Inc3001.59%
Aker Kvaerner Industrial Constructors, Inc
CCC Group Inc 3001.56%2501.32%
Evergreen Envmtl Svcs LLC 2751.43%James H. Jackson Industries Inc2501.32%
Pfeiffer Holdings LLC 2711.41%Occidental Chemical Corp.1750.92%
Contech Control Services Inc 2501.30%Intercontinental Terminal Co.1600.85%
Total 4,03220.98%Total 3,71719.67%
Source: Centerpoint Energy
Note: This list includes companies within the City limits of La Porte and within the industrial districts.
Note: Employement data prior to 2006 was not available
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116
CITY OF LA PORTE, TEXAS
xhibit 15
E
FULL-TIME EMPLOYEES BY FUNCTION/PROGRAM
Last Nine Fiscal Years
200620072008200920102011201220132014
General Government
768079787990 90
8888
Public Safety:
147138 142 143 151
144144 152154
Public Works
32 32
32 32 32 3232 3030
Health and Sanitation
21 24
21 22 22 2224 2323
Culture and recreation
45 46
44 45 45 4646 4242
Water services
27 25
25 25 25 2525 2524
Sewer Services
20 20
20 20 20 2020 2020
Golf Course13
12 12 1212 - - - -
Sylvan Beach
Convention Center3
4 4 4 - - - - -
Total 385375 381 388
381 380381 380381
Note: Data not availabe for fiscal years prior to 2005.
3/5/2015
117
CITY OF LA PORTE, TEXAS
OPERATING INDICATORS BY FUNCTION / PROGRAM
Last Ten Fiscal Years
Fiscal Year
20052006200720082009
Function / Program
Police
Physical arrests2,3302,4652,4892,6422,737
Tickets processed6,8778,2129,65215,35216,098
Fire
Number of calls answered1,7472,0281,6031,7991,409
Inspections500N/A600320600
Highways and streets
Street resurfacing (linear feet)22,97527,83522,10019,88723,559
Potholes repaired5313211,2609961,012
Sanitation
Cu. Yds. Garbage collected30,02230,79529,27929,28229,894
Cu. Yds Trash collected49,14049,14052,25048,13678,900
Culture and recreation
Fitness center admissions81,86870,55862,82862,24553,401
Water
Number of water meters11,39111,59211,74311,91311,968
Average daily consumption
4.13.93.84.04.0
(millions of gallons)
Water main breaks
437483467455498
Wastewater
Average daily sewage treatment
3.52.83.93.22.8
(thousands of gallons)
Golf Course
Number of Paid Rounds Played34,96132,73132,43335,83936,009
Source: Various City departments
Notes: N/A - Data not available
Notes: N/A - Data not available Draft 3/5/2015
Notes: N/A - Data not available
118
xhibit 16
E
20102011201220132014
2,5382,3542,3112,2052,032
16,60314,61913,22113,86114,151
1,5591,4831,1951,2191,262
6907258129501,020
38,36560,47269,58013,52011,183
1,2364651,173271165
29,64227,96142,58930,62554,812
48,36845,77854,64132,13740,701
78,11864,98964,27964,58790,765
12,01512,06112,12912,23412,321
3.94.64.34.03.8
417666311379411
3.72.83.32.72.6
31,27134,84834,03832,25732,741
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119
CITY OF LA PORTE, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION / PROGRAM
Last Ten Fiscal Years
Fiscal Year
20052006200720082009
Function / Program
Public Safety
Police Station11111
Police Officers7273747474
Reserve Officers55621
Fire Stations44444
Sanitation
Collection trucks1414141414
Highways and streets
Streets (miles)211217211295126
Streetlights2,1921,8031,8042,4002,387
Traffic signals33337
Culture and recreation
Parks acreage337339347347356
Parks2121222221
Swimming pools66666
Recreation Centers11111
Senior Center11111
Water and Sewer
Water mains (miles)165168176178180
Fire hydrants1,8001,8001,0761,1611,168
Sanitary Sewers (miles)187187189189191
Storm sewers (miles)8992929292
Source: City Departments
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120
Exhibit 17
20102011201220132014
11111
7575747474
22262
44444
1414121212
126126125297297
2,3872,4152,4152,4152,415
55666
356356188188188
2121222222
55555
44332
11111
180181182183184
1,1791,1861,1991,2261,256
191192192192192
959760112112
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121
Council Agenda Item
March 23, 2015
10. ADMINISTRATIVE REPORTS
Zoning Board of Adjustment Meeting, Thursday, March 26, 2015
Drainage and Flooding Committee Meeting, Monday, March 30, 2015
Citizens Forum on Code Enforcement for Northside Neighborhood, Tuesday, March 31,
2015
La Porte Development Corporation Board Meeting, Monday, April 6, 2015
La Porte Development Corporation Board Meeting, Monday, April 13, 2015
City Council Meeting, Monday, April 13, 2015
Council Budget Retreat, Saturday, April 18, 2015
City Council Meeting, Monday, April 27, 2015
11. 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 Engelken, Earp, Clausen,
Martin, Moser, Kaminski, Zemanek, Leonard and Mayor Rigby
12. ADJOURN