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HomeMy WebLinkAbout03-27-17 Regular Meeting of the La Porte City Council LOUIS R. RIGBYCHUCK ENGELKENCHUCK ENGELKEN MayorCouncilmember District 2Councilmember District 2 JOHN ZEMANEKDARYL LEONARD Councilmember At Large ACouncilmember At Large ACouncilmember District 3Councilmember District 3 DOTTIE KAMINSKIDOTTIE KAMINSKIKRISTIN MARTIN Councilmember At Large BCouncilmember At Large BCouncilmember District 4Councilmember District 4 DANNY EARPJAY MARTIN Mayor Pro-TemCouncilmember District 5Councilmember District 5 Councilmember District 1Councilmember District 1 MIKE CLAUSEN Councilmember District 6Councilmember District 6 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 27, 2017, Notice is hereby given of a Regular Meeting of the La Porte City Council to be held March 27, 2017, 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.INVOCATIONINVOCATION––The invocation will be given by, Brian Christen, La Porte Community Church.The invocation will be given by, Brian Christen, La Porte Community Church. 3.PLEDGE OF ALLEGIANCEPLEDGE OF ALLEGIANCE––The Pledge of Allegiance will be led by Councilmember Jay Martin.The Pledge of Allegiance will be led by Councilmember Jay Martin. 4.PRESENTATIONS, PROCLAMATIONS, and RECOGNITIONSPRESENTATIONS, PROCLAMATIONS, and RECOGNITIONS (a)Proclamation Proclamation -- Jesse Garcia Day Jesse Garcia Day -- Mayor Rigby Mayor Rigby (b)Proclamation Proclamation -- La Porte Special Olympics Shrimp Boil Day La Porte Special Olympics Shrimp Boil Day -- Mayor Rigby Mayor Rigby (c)Recognition Recognition -- Certificate of Appreciation John Samuel Gianukos Certificate of Appreciation John Samuel Gianukos -- Mayor Rigby Mayor Rigby 5.PUBLIC COMMENTSPUBLIC COMMENTS (Limited to five minutes per person.) (Limited to five minutes per person.) 6.CONSENT AGENDACONSENT AGENDA(All consent agenda items are considered routine by City Council and will beenacted by (All consent agenda items are considered routine by City Council and will beenacted 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 regarding minutes of the meeting held on March 13, 2017 Consider approval or other action regarding minutes of the meeting held on March 13, 2017 - P. FogartyP. Fogarty (b)Receive 2016 Comprehensive Annual Financial (CAFR) Report Receive 2016 Comprehensive Annual Financial (CAFR) Report -- M. Dolby M. Dolby (c)Consider approval or other action regarding a Resolution authorizing the City Manager as the Consider approval or other action regarding a Resolution authorizing the City Manager as the authorized grant official and approving the grant application for Digital Forensics Investigative authorized grant official and approving the grant application for Digital Forensics Investigative Equipment, through the Criminal Justice Division, Office of the Governor, State of Texas Equipment, through the Criminal Justice Division, Office of the Governor, State of Texas - K. AdcoxAdcox (d)Consider approval or other action regarding a Resolution authorizing the City Manager as the Consider approval or other action regarding a Resolution authorizing the City Manager as the authorized grant official and approving the grant application for the Firearms Training authorized grant official and approving the grant application for the Firearms Training Simulator through the Criminal Justice Division, Office of the Governor, State of Texas Simulator through the Criminal Justice Division, Office of the Governor, State of Texas - K. AdcoxAdcox 7.AUTHORIZATIONSAUTHORIZATIONS (a)Consider approval or other action authorizing the City Manager to execute a Local Consider approval or other action authorizing the City Manager to execute a Local Government Code Chapter 380 Agreement between the City of La Porte and Oakland Land Government Code Chapter 380 Agreement between the City of La Porte and Oakland Land and Development Company for Sector 23 economic development program and Development Company for Sector 23 economic development program -- T. Leach T. Leach 8.8.REPORTSREPORTSREPORTSREPORTS (a)Receive report of the La Porte Development Corporation Board Receive report of the La Porte Development Corporation Board -- Councilmember Engelken Councilmember Engelken 9.ADMINISTRATIVE REPORTSADMINISTRATIVE REPORTS •La Porte Development Corporation Board Meeting, Monday, April 10, 2017La Porte Development Corporation Board Meeting, Monday, April 10, 2017 •City Council Meeting, Monday, April 10, 2017City Council Meeting, Monday, April 10, 2017 •Planning and Zoning Commission Meeting, Thursday, April 20, 2017Planning and Zoning Commission Meeting, Thursday, April 20, 2017 •Zoning Board of Adjustment Meeting, Thursday, April 27, 2017Zoning Board of Adjustment Meeting, Thursday, April 27, 2017 10.COUNCIL COMMENTSCOUNCIL COMMENTS regarding matters appearing on the agenda; recognition of regarding matters appearing on the agenda; recognition of communitymembers, city employees, and upcoming events; inquiry of staff regarding specific factual communitymembers, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies information or existing policies ––Councilmembers J. Martin, K. Martin, Kaminski, Zemanek, Leonard, Councilmembers J. Martin, K. Martin, Kaminski, Zemanek, Leonard, Engelken, Earp, Clausen, and Mayor RigbyEngelken, Earp, Clausen, and Mayor Rigby 11.ADJOURNADJOURN The City Council reserves the right to meet in closed session on any agenda item should the need arise and if 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 Code (the Texas open applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government Code (the Texas open meetings laws).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 21, 2017, agenda of items to be considered by the City Council was posted on the City I certify that a copy of the March 21, 2017, agenda of items to be considered by the City Council was posted on the City Hall bulletin board on March 21, 2017.Hall bulletin board on March 21, 2017.Hall bulletin board on March 21, 2017.Hall bulletin board on March 21, 2017. Council Agenda Item Council Agenda Item March 27, 2017 March 27, 2017 1.CALL TO ORDERCALL TO ORDER 2.INVOCATIONINVOCATION––The invocation will be given by, Brian Christen, La Porte Community Church.The invocation will be given by, Brian Christen, La Porte Community Church. 3.PLEDGE OF ALLEGIANCEPLEDGE OF ALLEGIANCE––The Pledge of Allegiance will be led by Councilmember Jay Martin.The Pledge of Allegiance will be led by Councilmember Jay Martin. 4.PRESENTATIONS, PROCLAMATIONS, and RECOGNITIONSPRESENTATIONS, PROCLAMATIONS, and RECOGNITIONS (a)Proclamation Proclamation -- Jesse Garcia Day Jesse Garcia Day -- Mayor Rigby Mayor Rigby (b)Proclamation Proclamation -- La Porte Special Olympics Shrimp Boil Day La Porte Special Olympics Shrimp Boil Day -- Mayor Rigby Mayor Rigby (c)Recognition Recognition -- Certificate of Appreciation John Samuel Gianukos Certificate of Appreciation John Samuel Gianukos -- Mayor Rigby Mayor Rigby 5.PUBLIC COMMENTSPUBLIC COMMENTS (Limited to five minutes per person.) (Limited to five minutes per person.) ****************************************************************** ****************************************************************** WHEREAS, the late Jesse T. Garcia was a son, brother, husband, father, grandfather, business owner, community activist and a friend to all, leaving behind a memorial of good citizenship; and WHEREAS,Jesse, along with his wife, owned Las Hadas Restaurants in LaPorte and Deer Park, and served his community in various capacities which include the following:he was very active as a member of the Knights of Columbus, the Houston Livestock Show & Rodeo, La Porte Optimists, LaPorte-Bayshore Chamber of Commerce, and the Hispanic Chamber of Commerce in Baytown. Additionally, Jessewas very generous in the sponsorship of youth activities,andalso very active ins Catholic Church; and WHEREAS,Jessehas not only left a legacy of good worksbut also a family legacy.Jesse was married to Ernestine,and his children are Vanessa, Bubba,andJesse. Jesseamily continues his legacy in the very communitywhich, during his lifetime, he made many long lasting friendships; and WHEREAS, by honoring Jesse, he is being recognized as a treasure to the La Porte community. NOW, THEREFORE, I,Louis R. Rigby, Mayor,along with members of the th La Porte City Council,do hereby proclaimMarch 27, 2017, as IN WITNESS THEREOF, I havehereto set my hand and caused the Seal of th the City to beaffixedhereto, this the27day of March, 2017. CITY OF LA PORTE ___________________________ Louis R. Rigby, Mayor Whereas, the La Porte Special Olympics providesyear round athletic training for participants; and Whereas, theLa PorteSpecial Olympics Participants, Special Programs Staffand Volunteers wish to raise funds to help support our athletes’participation inSpecial Olympics Texas by providing a shrimp boil;and nd Whereas, the shrimp boil will be held Saturday, April 22, serving meals from 11:00 a.m. until 1:00 p.m. at the Norman L. Malone Senior Center located at 1322 SouthBroadway. Tickets are $12.00 each, or also available in books of 10 tickets to share with family and friends, for $120.00 each. We invite everyone to continue to support the La Porte Special Olympics program by purchasing ticketsfor the Shrimp Boil to help make it possible for our athletes to compete in this fun andworthwhile event;and Now therefore, I,Louis R. Rigby, Mayorof the City of La Porte,along with members of the La Porte City Councildo hereby proclaim April 22,2017, as “La Porte Special Olympics Shrimp BoilDay” IN WITNESS THEREOF, I havehereto set my hand and caused the Seal of the City to be affixed hereto, th this the 27day of March2017. CITY OF LA PORTE ___________________________ Louis R. Rigby, Mayor Commendation Council Agenda Item Council Agenda Item March 27, 2017 March 27, 2017 6.CONSENT AGENDACONSENT AGENDA(All consent agenda items are considered routine by City Council and will beenacted by (All consent agenda items are considered routine by City Council and will beenacted 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 regarding minutes of the meeting held on March 13, 2017 Consider approval or other action regarding minutes of the meeting held on March 13, 2017 - P. FogartyP. Fogarty (b)Receive 2016 Comprehensive Annual Financial (CAFR) Report Receive 2016 Comprehensive Annual Financial (CAFR) Report -- M. Dolby M. Dolby (c)Consider approval or other action regarding a Resolution authorizing the City Manager as the Consider approval or other action regarding a Resolution authorizing the City Manager as the authorized grant official and approving the grant application for Digital Forensics Investigative authorized grant official and approving the grant application for Digital Forensics Investigative Equipment, through the Criminal Justice Division, Office of the Governor, State of Texas Equipment, through the Criminal Justice Division, Office of the Governor, State of Texas - K. AdcoxAdcox (d)(d)Consider approval or other action regarding a Resolution authorizing the City Manager as the Consider approval or other action regarding a Resolution authorizing the City Manager as the Consider approval or other action regarding a Resolution authorizing the City Manager as the Consider approval or other action regarding a Resolution authorizing the City Manager as the authorized grant official and approving the grant application for the Firearms Training authorized grant official and approving the grant application for the Firearms Training Simulator through the Criminal Justice Division, Office of the Governor, State of Texas Simulator through the Criminal Justice Division, Office of the Governor, State of Texas - K. AdcoxAdcox ****************************************************************** ****************************************************************** LOUIS RIGBY CHUCK ENGELKEN Mayor Councilmember District 2 JOHN ZEMANEK DARYL LEONARD Councilmember At Large A Councilmember District 3 DOTTIE KAMINSKI KRISTIN MARTIN Councilmember At Large B Councilmember District 4 DANNY EARP JAY MARTIN Mayor Pro-Tem Councilmember District 5 Councilmember District 1 MIKE CLAUSEN Councilmember District 6 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF LA PORTE MARCH 13, 2017 The City Council of the City of La Porte met in aregular meetingonMonday,March 13, 2017, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 6:00 p.m. 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 Engelken, J. Martin, K. Martin, Earp, Zemanek, andKaminski. Absent: Councilmembers Clausen and Leonard. Also present were City Secretary Patrice Fogarty, City Manager Corby Alexander, and Assistant City Attorney Clark Askins. 2. INVOCATION The invocation was given by Clark Askins, Assistant City Attorney. 3. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Councilmember Jay Martin. 4. PUBLIC COMMENTS (Limited to five minutes per person.) Philip Dunn,701 San Jacinto St., thanked Council for the article in the paper informing the public of the format of City Council meetings and suggested Council have a workshop and learn the rules of representing the people that elected them. Sheryl Ayers, 5126 Crestway Dr., addressed Council regarding carports being approved in the Glen Meadows subdivision. Heath Patterson, 10119 Stonemont, addressed Council in regards to item 7(a) and suggested adding two amendments to the agreement. 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 minutes of meeting held on February 27, 2017 P. Fogarty (b) Consider approval or other action awarding Bid #17011 for Wharton Weems Entry Sign Construction rebid T. Leach (c) Consider approval or other action awarding Bid #17010 for Fireworks Display R. Epting (d) Considerapproval or other action awarding Bid #17010 for HVAC Chiller for use at the La Porte Police Department Building R. Epting (e) Consider approval or other action regarding submittals for RFP #17501 for Aquatics Services R. Epting Page 1 of 4 March 13, 2017,Council Meeting Minutes (f)Consider approval or other action authorizing the City Manager to execute a Water Service Agreement and Sanitary Sewer Service Agreement with Carson Bayport 3 LLC., for its facility at 4121 Malone Dr., in the Bayport Industrial District B. Sterling (g) Receive 2016 Comprehensive Annual Financial (CAFR) Report M. Dolby (h) Consider approval or other action authorizing the City Manager to execute an Interlocal Agreement between Harris County and the City of La Porte to allow Harris County to construct the relocation of City sewer facilities along Choate Road in connection with the construction of Choate Road improvements D. Pennell (i)Consider approval or other action appointing Sergio Torre and Zachary Daniels to the La Porte Police Reserve Force K. Adcox City Manager Corby Alexander request Item G be removed from consideration until the next City Council meeting. Regarding Item E, Councilmember Earp asked if the item is the rejection of all proposals. City Manager Corby Alexander responded yes. Councilmember Engelken made a motion to approve Consent Agenda Items A-D, F, H & Ipursuant to staff recommendations. Councilmember Earp seconded the motion. MOTION PASSED UNANIMOUSLY 7/0. Councilmembers Clausen and Leonard were absent. Councilmember Earp made a motion to reject the bids for Consent Agenda Item E and allow staff to fulfill the role. Councilmember Engelken seconded the motion. MOTION PASSED UNANIMOUSLY 7/0. Councilmembers Clausen and Leonard were absent. 6. PUBLIC HEARINGS AND ASSOCIATED ORDINANCES (a) Public hearing to receive comments regarding recommendation by the Planning and Zoning Commission to deny an Ordinance amending the Future LandUse Map Component of the Comprehensive Plan for a 6.69-acre tract of land known as Tract 19C, Abstract 482 W. Jones Subdivision, generally located on Fairmont Pkwy., between Brookwood Dr., and Canada Rd., by changing land use designation from Mid Density Residential to Commercial; consider approval or oth Use Plan Component of the Comprehensive Plan for a 6.69-acre tract of land known as Tract 19C, Abstract 482 W. Jones Subdivision, generally located on Fairmont Pkwy., between Brookwood Dr., and Canada Rd., by changing land use designation from Mid Density Residential to Commercial I. Clowes The public hearing was opened at 6:21 p.m. City Planner Ian Clowes presented a summary. There being no public comments, the public hearing was closed at 6:23 p.m. Councilmember Engelken made a motion to accept the Planning and Zoning Commission recommendation to deny anOrdinance of the Comprehensive Plan. Councilmember K. Martin seconded the motion. MOTION PASSED UNANIMOUSLY 7/0. Councilmembers Clausen and Leonard were absent. (b) Public hearing to receive comments regarding recommendation by the Planning and Zoning Commission to deny a zone change request for changing the zoning classification of a 6.69- acre tract of land located on Fairmont Pkwy., between Brookwood Dr. and Canada Rd., described as Tract 19C, Abstract 482 W. Jones Subdivision, from Mid Density Residential Page 2 of 4 March 13, 2017,Council Meeting Minutes District (R-2) to General Commercial District (GC); consider approval or other action regarding an Ordinance to approve zone change request #16-92000007, to change the zoning classification of a 6.69-acre tract located on Fairmont Pkwy., between Brookwood Dr. and Canada Rd., described as Tract 19C, Abstract 482 W. Jones Subdivision, from Mid Density Residential District (R-2) to General Commercial District I. Clowes The public hearing was opened at 6:25 p.m. City Planner Ian Clowes presented a summary. There being no public comments, the public hearing was closed at 6:26 p.m. Councilmember Engelken made a motion to accept the Planning and Zoning Commission recommendation to deny an ordinance approving a zone change request. Councilmember K. Martin seconded the motion. MOTION PASSED UNANIMOUSLY 7/0. Councilmembers Clausen and Leonard were absent. (c)Public hearing to receive comments on the recommendation of the Dangerous Building Inspection Board for condemnation of dangerous/substandard buildings located at 129 Bayshore Dr., 304 S. Blackwell St., and 1608 Roscoe St., consider approval or other action regarding Ordinances providing for condemnation of dangerous/substandard buildings located at 129 Bayshore Dr., 304 S. Blackwell St., and 1608 Roscoe St. M. Collier The public hearing opened at 6:27 p.m. Deputy Building Official Mike Collier presented a summary and informed Council the properties at 304 S. Blackwell and 1608 Roscoe have been demolished and clean-up is in process at 304 S. Blackwell. In addition, Mr. Collier requested 129 Bayshore Dr., be removed from the dangerous/substandard list. There being no public comments, the public hearing was closed at 6:29 p.m. Councilmember Earp made a motion to deny the demolition Ordinances on these three properties and remove 129 Bayshore Drive from the dangerous building list. Councilmember Engelken seconded the motion.MOTION PASSED UNANIMOUSLY 7/0. Councilmembers Clausen and Leonard were absent. 7. AUTHORIZATIONS (a) Consider approval or other action authorizing the City Manager to execute an agreement between the City of R. Epting Parks and Recreation Director Rosalyn Epting presented a summary and recommended changes to the agreement as presented this evening, including changes suggested by Heath Patterson. Councilmember Zemanek made a motion the changes be enacted into the agreement. Councilmember Engelken seconded the motion. MOTION PASSED UNANIMOUSLY 7/0. Councilmembers Clausen and Leonard were absent. 8. REPORTS (a) Receive report of the Fiscal Affairs Committee Councilmember Engelken Councilmember Engelken provided a report of the Fiscal Affairs Committee meeting held prior to the City Council Meeting. Page 3 of 4 March 13, 2017,Council Meeting Minutes 9. ADMINISTRATIVE REPORTS City Manager Corby Alexander advised Council he will forward emails and information regarding Ms. Ayers concerns with carports. 10. COUNCIL COMMENTS regarding matters appearing on the agenda; recognition of community members, city employees, and upcoming events; inquiry of staff regarding specific factual information. Councilmember J. Martin thanked City Manager Corby Alexander and Assistant City Manager Traci Leach for getting the Wharton Weems Entry Sign Construction rebid on the agenda for consideration; th Councilmember K. Martin reminded everyone to get tickets for the 125 Celebration and commented on the great job Marketing/Public Relations Specialist Jenny Lynn is doing with the activities for the event; th Councilmember Kaminski commented how excited she is for the 125 Celebration; Councilmember Engelken commented the meeting was good and wished the La Porte Boys Baseball Association well; and Mayor Rigby thanked Parks and Recreation Director Rosalyn Epting and President of the La Porte Boys Baseball Association Heath Patterson for their work efforts. 11. ADJOURN - There being no further business, Councilmember Engelken made a motion to adjourn the meeting at 7:18 p.m. Councilmember Earp seconded the motion.MOTION PASSED UNANIMOUSLY 7/0. Councilmembers Clausen and Leonard were absent. _______________________________ Patrice Fogarty, City Secretary Passed and approved on March 27,2017. ________________________________ Mayor Louis R. Rigby Page 4 of 4 March 13, 2017,Council Meeting Minutes REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM March 27, 2017March 27, 2017AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Michael Dolby, Director of Michael Dolby, Director of Source of Funds:Source of Funds: Requested By:Requested By: Finance Finance Account Number:Account Number: FinanceFinance Department:Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1.Comprehensive Annual Financial Report Comprehensive Annual Financial Report 2016 2.PBH Presentation City Council La Porte PBH Presentation City Council La Porte 2016 (PDF)2016 (PDF) 3.Required Communication with Required Communication with Governance 2016Governance 2016 4.Single Audit ReportSingle Audit Report SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS In accordance with the cce with the citity cy chharter, tarter, thhe 2016 audit report will be pree 2016 audit report will be pressented to Council ented to Council bbyy the the e exxternternal auditors Pattillo, Brown and Hill. auditors Pattillo, Brown and Hill. TThehe a audit rudit reeport proviport providdees the Cis the Citty with rey with reaasonsonaable assurble assuraanncce the thaat the financial statteemmenents ts arare e frfreee e oof mf maattereriiaal mil missssttaatteemmenents. ts. ThThe e aauditors desuditors desiiggned tests that provide ned tests that provide evidence thaat the fint the finaanncciiaal stl staatteemmeents nts ccoonfnform to the hiorm to the higghheest lst leevveel of l of accaccountiountinng stg staannddaards.rds. Action Required of Council:Action Required of Council: 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 For the Year Ended September 30, 2016 Prepared By Department of Finance CITY OF LA PORTE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS SEPTEMBER 30, 2016 Page Number INTRODUCTORY SECTION Letter of Transmittal ..................................................................................................... ivi Certificate of Achievement for Excellence in Financial Reporting .............................. vii Organization Chart ........................................................................................................ viii Administrative Officials................................................................................................ ix FINANCIAL SECTION ....................................................................................... 1 3 ...................................................................... 4 12 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ....................................................................................... 13 Statement of Activities ............................................................................................ 14 15 Fund Financial Statements Balance Sheet Governmental Funds .................................................................... 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................... 17 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds ................................................................ 18 CITY OF LA PORTE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS SEPTEMBER 30,2016 Page Number Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ......................................................................................... 19 Statement of Net Position Proprietary Funds....................................................... 20 21 Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds ....................................................................... 22 Statement of Cash Flows Proprietary Funds ........................................................ 23 24 Notes to Financial Statements .................................................................................... 25 60 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund balances Budget and Actual General Fund ...................................... 61 Notes to Required Budgetary Information ................................................................. 62 Schedule of Changes in Net Pension Liability and Related Ratios ............................................................................................... 63 Schedule of TMRS Contributions .............................................................................. 64 TESRS Net Pension Liability .............................................................................. 65 Schedule of Funding Progress Other Post Employment Benefits Plan .......................................................................... 66 Combining And Individual Fund Statement and Schedules Nonmajor Governmental Funds: Combining Balance Sheet .......................................................................................... 67 70 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................................................................. 71 74 CITY OF LA PORTE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS SEPTEMBER 30, 2016 Page Number Budgetary Comparison Schedules: Debt Service Fund...................................................................................................... 75 Special Revenue Funds: Hotel/Motel Tax ...................................................................................................... 76 Section 4B Sales Tax .............................................................................................. 77 Tax Increment Reinvestment Zone ......................................................................... 78 Street Maintenance Sales Tax Fund ........................................................................ 79 Emergency Services Sales Tax Fund ...................................................................... 80 Capital Projects Funds: Restricted Fund ....................................................................................................... 81 2006 Certificate of Obligation Bonds ..................................................................... 82 2010 Certificate of Obligation Bonds ..................................................................... 83 2015 Certificate of Obligation Bonds ..................................................................... 84 Drainage and Improvements ................................................................................... 85 General Fund Schedule of Revenues Budget and Actual .................................... 86 General Fund Schedule of Expenditures Budget and Actual............................... 87 92 Combining Financial Statements Internal Service Funds Combining Statement of Net Position ....................................................................... 93 Combing Statement of Revenues, Expenses and Changes in Net Position .......................................................................................... 94 Combining Statement of Cash Flows ........................................................................ 95 CITY OF LA PORTE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS SEPTEMBER 30, 2016 STATISTICAL SECTION(Unaudited) Page TableNumber Net Position by Component ........................................................................... 1 96 97 Changes in Net Position ................................................................................. 2 98 101 Fund Balances Governmental Funds .......................................................... 3 102 103 Changes in Fund Balances Governmental Funds ....................................... 4 104 105 Assessed Value and Actual Value of Taxable Property ................................ 5 106 Property Tax Rates Direct and Overlapping Governments ........................ 6 107 108 Principle Property Taxpayers ......................................................................... 7 109 Property Tax Levies and Collections ............................................................. 8 110 Ratios of Outstanding Debt by Type ............................................................. 9 111 Ratio of General Bonded Debt to Taxable Value and Taxable Value of All Property ..................................... 10 112 Direct and Overlapping Governmental Activities Debt ............................................................................................ 11 113 Pledged Revenue Coverage ........................................................................... 12 114 Demographic and Economic Statistics .......................................................... 13 115 Principal Employers ....................................................................................... 14 116 Full-Time Employees by Function/Program ................................................. 15 117 Operating Indicators by Function/Program ................................................... 16 118 119 Capital Assets Statistics by Function/Program .............................................. 17 120 INTRODUCTORY SECTION THIS PAGE LEFT BLANK INTENTIONALLY March 15, 2017 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, 2016. 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 Pattillo, Brown and Hill 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, 2016 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, 2016 are fairly presented in conformity with GAAP. The independent auditors' report is presented as a component of the financial section of this report. The independent audit of the financial statements of the City of La Porte included a federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of La Porte's separately issued Single Audit Report. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of La Porte's MD&A can be found immediately following the report of the independent auditors. Profile of the City The City of La Porte, incorporated in 1892, is located in the southeast quadrant of Harris County andisbounded on the north by the Houston ship channel, on the east by Galveston Bay and the south by theBayport channel. The City of La Porte currently encompasses 19 square miles and serves a population of 35,148. 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. All agencies of the City of La Porte are requiredto submit requests for appropriation to the City Manager on or before May 26 of each year. The CityManager uses these requests as the starting point for developing a proposed budget. The City Managerthen presents this proposed budget tocouncil for review prior to August. The council is required to hold apublic hearing on the proposed budget andtoadopt a final budget by no later than September 30th. Theappropriated budget is prepared by fund, function (e.g., public safety) and department (e.g., police). Thedirectors 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-actualcomparisons are provided in financial reports for each individual governmental fund for which anappropriated annual budget has been adopted. For the general fund, this comparison is presented on page61as part of the required supplementary information. For governmental funds, other than the generalfund, with appropriated annual budgets, this comparison is presented i n the governmental fund subsectionof this report, which starts on page 75. Formal budgetary integration is employed as a managementcontrol device during the year for the General Fund and Enterprise Funds. Formal budget integration isnot employed for the Debt Service and Capital Projects Funds because effective budgetary control isalternatively achieved through bond indenture provisions and legallybinding construction contracts,respectively. Economic Condition The information presented in the financial statements is perhaps best understood when itis consideredfrom 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 largest concentration of petrochemical plants, and the third largest United States seaport and is a corporation on 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 s 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 andCore 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; ifnecessary identify additional goals consistent withthe 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 astowhat 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 isan 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) 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 expectations and actuals, of timelines and expenses, to help accomplish each goal, and to hold one another accountable for updates and completion. Mission Statement The Council reviewed and revised the Mission Statement & Vision Statement of the City and the results are asfollows: iii Vision Statement Core Values The City Council wanted to specify the core values under which the City andits 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 LaPorte: 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 in the development of objectives. In March 2013, the staff further added to the 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 willbe 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 beheld accountable for the action plan that is developed. A team leader for each goal was assigned. Identify team members. Likewise each goal needs a larger team, consisting of fellow staff from across all departmental lines where appropriate, to assist in the implementation process. Identify partners. Each team should identify the partners, outside the city organization, who can provide expertise and resources toaccomplish the goal. Define action steps. Each objective needs defined action steps showing Council how the goal willbe accomplished. The action steps provide the basis for benchmarks. Prepare a timeline. Timelines were prepared for each of the objectives. Staff reviewed those timelines and recommended adjustments. The Council-identified goals are: Improve Infrastructure Preserve Heritage to preserve the structure andamenities that make La Porte unique Ensure that all departments and facilities are ready for any disaster Toencourage economic development/retail development Toprovide Superior Customer Service Torevitalize blight/146 iv 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: Toprovide 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 LaPorte One critical component to ensuring that the elements of the Strategic Plan are being implemented isto provide regular status reports to the City Council. Staff prepares and presents to council quarterly written reports supplemented with 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 staff is complying with the new GASB pronouncement 68 regarding pension reporting. Major Initiatives Public Works identified additional major infrastructure improvements needed in the upcoming years, consequently, we issued $10.65 million in certificates of obligation funded by Texas Water Development Board infiscal year 2017 for utility improvements. Long Term Planning Given the current economy and the uncertainty of the next few years, the City's existing financial position remains strong. The City has incorporated several strategies to decrease the expenses to the City over the next several years. Rising costs of personnel and the related benefits have been a challenge to the City; however, over the last few years, a healthy fund balance in the General Fund has allowed the City to weather these rising costs. The city of La Porte is experiencing significant commercial and residential development. Over the past 12 months, multiple restaurants and retail establishments have opened in the City. The Pipeline Grill opened in December 2015 with an estimated capital investment of $1.2 million. Our TIRZ board and City Council approved a large entertainment capital investment estimated to exceed $100 million. Additionally, the housing market in the Houston area, which included La Porte, has seen a 10% growth in the median price of homes over the last two years. 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 outside the city limits, to allow receiving from super container ships. The low cost of natural gas continues to provide stability in the petro chemical market; consequently we are experiencing significant growth in our industrial districts. Additionally several industrial district expansion are under way worth over $600 million. Conservative revenue estimates and efforts to reduce expenditures have contributed to the City 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 (27) twenty-seven years. Additional capital projects v are being funded by utilizing excess fund balances and previously issued debt that had been stranded. Withthe 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 i n Financial Reporting to the City for its comprehensive annual financial report for the fiscalyear ended September 30, 2015.This was the thirty-fifth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City published aneasily readable and efficiently organized comprehensive annual financial report. This report satisfied bothgenerally 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 andwe are submitting itto the GFOA to determine its eligibility for another certificate. Inaddition, the government also received the GFOA Distinguished Budget Award for itsannual budgetdocument. In order to qualify for the Distinguished Budget Presentation Award, the government's budgetdocument was judged to be proficient i n several categories, including as a pol icy document, a financialplan, an operations guide and a communications device. Other financial awards to the City are the Popular Financial Report Award from Transparency Stars Award from the State of Texas Comptroller and the Achievement of Excellence in Procurement Award from the National Procurement Institute. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance andadministration department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the mayor andcity council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of La Porte's finances. Respectfully submitted, vi Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of La Porte, Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2015 vii Citizens Legal Mayor & City City Secretary Council Municipal Court Emergency Management Human Resources City Manager Information Economic Development Technologies Assistant City Manager Parks Fire/EMSPoliceFinancePublic WorksPlanningGolf Course & Recreation Fire PolicePublic Works Parks Planning & AccountingClub House PreventionAdmin.Admin.MaintenanceEngineering Fire PatrolTaxStreetsRecreationGIS DivisionMaintenance Suppression Emergency Criminal ResidentialSpecial Inspection Medical Utility Billing InvestigationSolid WasteServicesServices Services Support Commercial Parks Purchasing ServicesSolid WasteAdmin. Water Production Water Distribution Waste Water Collection Waste Water Treatment Airport La Porte Area Water Authority Motor Pool viii CITY OF LA PORTE, TEXAS LIST OF ELECTED AND APPOINTED OFFICIALS For the Year Ended September 30, 2016 Elected OfficialsPosition Louis RigbyMayor Danny EarpMayor ProTemDistrict One Chuck EngelkenCouncil Member District Two Daryl LeonardCouncil Member District Three Kristin MartinCouncil Member District Four Jay MartinCouncil Member DistrictFive Mike ClausenCouncil Member District Six John ZemanekCouncil Member At Large A Dottie KaminskiCouncil MemberAt Large B City ManagementPosition Corby AlexanderCity Manager Traci LeachAssistance City Manager Ken AdcoxPolice Chief Don PennellInterim Director of Public Works Patrice FogartyCity Secretary Denise MitranoMunicipal Judge Michael G. DolbyDirector of Finance ix THIS PAGE LEFT BLANK INTENTIONALLY FINANCIAL SECTION THIS PAGE LEFT BLANK INTENTIONALLY INDEPENDENT AUDITORSREPORT To the Honorable Mayor and Members of the City Council and Citizens City of La Porte, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, business- type activities, each major fund, and the aggregate remaining fund financial of the City of La Porte, 6, which collectively comprise the anagement 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. Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of the Tax Increment Reinvestment Zone Fund, which represents .3 percent and 4 percent, respectively, of the assets and revenues of the aggregate other governmental funds and 8 percent and 4 percent, respectively, of liabilities and revenue of the governmental activities. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it related to the amounts included for the Tax Increment Reinvestment Zone Fund, is based solely on the report of the other auditors. 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. 1 An audit involves performing procedures to obtain audit evidence about the amounts and 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 that are appropriates in the circumstances, but not for the purpose of expressing an opinion on the includes evaluating the appropriateness of accounting policies used and 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. In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. As discussed in Note I to the financial statements, in 2016 the City adopted new accounting guidance, Governmental Accounting Standards (GASB) Statement No. 72, Fair Value Measurement and Application.Our opinion is not modified with respect to this matter. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the iscussion and analysis, budgetary comparison information and pension information on pages 4 through 12 and 61 through 66, respectively, to 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 operations, 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 statements, and other knowledge we obtain 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. Out audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the inancial statements. 2 Other Information Our audit was conducted for purposes of forming opinions on the financial statements that The combing and individual nonmajor fund financial statements and schedules, introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combing and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. In accordance with Government Auditing Standards, we have also issued our report dated March 15, 2017, on our consideration of the City 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 Standardsin considering the City internal control over financial reporting and compliance. Waco, Texas March 15, 2017 3 THIS PAGE LEFT BLANK INTENTIONALLY DISCUSSION AND ANALYSIS THIS PAGE LEFT BLANK INTENTIONALLY CITY OF LA PORTE, TEXAS statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2016. It should be read in conjunction with the accompanying letter of transmittal and the accompanying basic financial statements. Overview of the Financial Statements basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, 3) notes to the financial statements and the required supplementary information. This report also contains other supplement information in addition to the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements are designed to -sector business. resources, liabilities and deferred inflows of resources, with the difference between the four reported as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. 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 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 water and sewer utilities, airport, and the La Porte Area Water Authority. The government-wide financial statements can be found on pages 13 15of 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. 4 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 -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 financing decisions. Both the governmental fund balance sheet and 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 14 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 11 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 16 18of 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 services funds functions. The City uses its internal service funds to account for motor pool services, technology services and insurance. Because these services predominately 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 20 24of 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 60of this report. 5 Other Information. In addition to the basic financial statements and the accompanying notes, this funding its obligation to provide other post employee benefits, pension information and general fund budgetary comparisons. Required supplementary information can be found on pages 61 66 of the The combining statements referred to earlier in connection with nonmajor governmental funds and internal services funds are presented immediately following the required supplementary information. Combining and individual fund statements and supporting schedules can be found beginning on page 67 Government-Wide Financial Analysis For the City, assets and deferred outflows exceed liabilities and deferred inflows by $130,394,368 as of September 30, 2016, in the primary government as follows: City's Net Position September 30, 2016 and 2015 Governmental ActivitiesBusiness-Type ActivitiesTotals 201620152016201520162015 Assets Current and other assets$79,187,736$73,547,374$10,203,038$9,519,546$89,390,774$83,066,920 83,667,76581,477,51034,619,54336,085,511118,287,308117,563,021 Capital assets 162,855,501155,024,88444,822,58145,605,057207,678,082200,629,941 Total Assets Deferred Outflows of 10,291,6314,454,6371,022,841372,82511,314,4724,827,462 Resources Liabilities Other liabilities4,010,0836,059,1721,007,0361,450,7555,017,1197,509,927 78,191,21473,061,9634,245,8764,293,55182,437,09077,355,514 Long-term liabilities outstanding 82,201,29779,121,1355,252,9125,744,30687,454,20984,865,441 Total Liabilities 1,033,661574,975110,31664,0761,143,977639,051 Deferred Inflows of Resources Net Position: Net investment in capital assets48,367,01743,582,70434,291,66434,807,77382,658,68178,390,477 Restricted17,854,93514,507,643846,4001,250,85018,701,33515,758,493 23,690,22221,693,0645,344,1304,110,87729,034,35225,803,941 Unrestricted $89,912,174$79,783,411$40,482,194$40,169,500$130,394,368$119,952,911 Total Net Position Net Investment in Capital Assets 63.4%) 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 investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the assets themselves cannot be used to liquidate these liabilities. 6 Restricted Net Position $18,701,335 or 14.3% represents resources that are subject to external restriction on how they may be used. Unrestricted Net Position The remaining balance is unrestricted net position, $29,034,352 or 22.3%, and may be used to meet the remained relatively stable compared to the prior year. 2016, with comparative data total for the year ended September 30, 2015. Governmental activities increased y$10,128,763. Business-type activities increased net position by $312,694. City's Changes in Net Position For the Years Ended September 30, 2016 and 2015 Governmental ActivitiesBusiness-Type ActivitiesTotals 201620152016201520162015 Revenues Program revenues: Charges for services$9,150,694$10,295,277$8,510,639$7,955,584$17,661,333$18,250,861 Operating grants and contributions454,862331,364--454,862331,364 Capital grants and 607,3573,030,480534,168787,2851,141,5253,817,765 contributions General revenue: Property taxes24,098,17420,765,774--24,098,17420,765,774 Other taxes12,163,16913,155,689--12,163,16913,155,689 Industrial payments14,377,60212,269,152--14,377,60212,269,152 Investment earnings380,268204,34644,03825,440424,306229,786 Proceeds from insurance------ 766,683164,004--766,683164,004 Miscellaneous 61,998,80960,216,0869,088,8458,768,30971,087,65468,984,395 Total Revenues Expenses General government14,255,41312,962,387--14,255,41312,962,387 Public safety21,114,93919,081,622--21,114,93919,081,622 Public works4,422,4644,088,146--4,422,4644,088,146 Culture and recreation3,439,7223,497,174--3,439,7223,497,174 Health, welfare and sanitation6,059,8965,748,206--6,059,8965,748,207 Interest on long-term debt1,782,5081,585,354--1,782,5081,585,354 Water services--4,985,9025,064,2874,985,9025,064,287 Sewer services--4,374,7634,347,3094,374,7634,347,309 --210,590230,006210,590230,006 Airport 51,074,94246,962,8909,571,2559,641,60260,646,19756,604,492 Total Expenses Increase (decrease) in net position before transfers10,923,86713,253,196(482,410)(873,293)10,441,45712,379,903 (795,104)(1,504,570)795,1041,504,570-- Transfers 10,128,76311,748,626312,694631,27710,441,45712,379,903 Increase (decrease) in net position 79,783,41184,229,13840,169,50040,472,574119,952,911124,701,712 Net position - beginning -(16,194,353)-(934,351)-(17,128,704) Prior period adjustment $89,912,174$79,783,411$40,482,194$40,169,500$130,394,368$119,952,911 Net position - ending 7 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 governmental 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: Expense and Program Revenues -Governmental Activities $ 25,000 $ 20,000 $ 15,000 $ 10,000 $ 5,000 $ - GeneralPublic safetyPublic worksCulture andHealth,Interest on governmentrecreationwelfare andlong-term sanitationdebt ExpensesRevenues Revenues sources for governmental activities were distributed as follows: Revenues by Source -Govermental Activities Charges for services Property taxes Grants and 15% 39% contributions 2% Other taxes 20% Industrial payments 24% 8 For the year ended September 30, 2016, revenues without transfers in the governmental activities totaled $61,998,809. This represents an increase of approximately $1,782,723 or 3.0% due to a decrease in grants. Business-Type Activities. Revenues without transfers or interest in the business-type activities totaled $9,088,845, a $320,536 decrease from the prior year. This decrease is due to a decrease in grants and contributions and charges for services. A comparison between expenses and program revenues (charges for services) relating to Utility operations follows. Expenses and ProgramRevenues -Business-Type 6000 5000 4000 Expenses 3000 Revenues 2000 1000 0 Water ServicesSewer Services The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requireme combined ending fund balances of $67,753,358, an increase of $8,852,719 from the prior year. This increase is due to an increase in property taxes, and industrial payments. Governmental Funds.- term inflows, outflows and balances of spendable resources. Such information is useful in assessing the 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 $29,385,827, an increase of $4,169,280 due to an increase in revenue collections and cost containment to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 76.0% of total general fund expenditures and total fund balance represents 103.3% of the same. The Debt Service fund has a total fund balance of approximately $3,540,878, all of which is restricted for the payment of debt service. The net increase in fund balance from the prior year of $380,126 was due to an increase in property tax revenue. 9 Proprietary Funds. government-wide financial statements. Unrestricted net position of the respective proprietary funds are Utility - $2,408,776, La Porte Area Water Authority - $2,578,718 and Airport - $356,636. The changes in net position of the proprietary funds for 2016 were as follows: Utility increase of $661,472, La Porte Area Water Authority decrease of $202,545 and Airport decrease of $146,233. General Fund Budgetary Highlights Actual revenues exceeded the final General Fund budgeted revenues by $5,805,850. Property tax, Industrial Payments, and miscellaneous revenue exceed the projected budget by $2,476,555, $1,940,930 and $655,776, respectively. Licenses and fees and fines and forfeitures also exceeded budget by $149,926 and $150,322, respectively. The total appropriations exceeded expenditures by $1,623,933, the majority of which can be attributed tofive departments. Administration had a positive variance in the amount of $293,654 due to open positions and reduction in special programs. Planning and engineering had a positive variance in the amount of $361,791 due to open positions. The variance in Fire and Police for $52,212 and $375,008 was due to open positions in the department. Culture and recreation had a positive variance of $138,427 due to open positions. Capital Asset and Debt Administration Capital Assets.-type activities as of September 30, 2016, amounts to $118,287,308 (net of accumulated depreciation). This investment incapital assets includes land, buildings, roads, park facilities, water and wastewater plants and service lines, machinery and equipment, and construction in progress. The total in investment in capital assets for the current fiscal year was approximately $724,287. The following table shows capital assets activity for the 2016 fiscal year: Governmental ActivitiesBusiness-Type ActivitiesTotals 201620152016201520162015 Land$10,289,063$9,525,974$447,791$447,791$10,736,854$9,973,765 Construction in progress12,216,22616,459,209916,411294,38713,132,63716,753,596 Infrastructure14,581,80113,080,230- 14,581,801-13,080,230 Buildings and improvements36,078,58332,752,08531,236,08132,968,68667,314,66465,720,771 10,502,0929,660,0122,019,2602,374,64712,521,35212,034,659 Machinery and equipment $83,667,765$81,477,510$34,619,543$36,085,511$118,287,308$117,563,021 Total capital assets, net 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 assets activity can be found on pages 39 40 in the notes to thefinancial statements. Long-Term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $35,470,000 of this amounts, $35,120,000 is backed by the full faith and credit of the City, and the remainder represents revenues bonds secured solely by specific revenue sources. 10 The City of La Porte maintain Additional information on long-term debt activity can be found on pages 40 44 in the notes to the financial statements. The unemployment rate for the City of La Porte is current 5.8 percent which is an increase from the rate of 4.64.8 percent which is less than the national average of 4.9 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 $3.0 billion for fiscal year 2016. The trend for total assessed values has fluctuated slightly over the past five years resulting in a total increase of 34 percent. Assessed property values trends (in billions): $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 20122013201420152016 11 Sales tax revenues trends (in millions): $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 20122013201420152016 This financial report is designed to provide our citizens, customers, and creditors a general overview of ances. 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. 12 THIS PAGE LEFT BLANK INTENTIONALLY BASIC FINANCIAL STATEMENTS THIS PAGE LEFT BLANK INTENTIONALLY CITY OF LA PORTE, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30, 2016 Primary Government GovernmentalBusiness-Type ActivitiesActivitiesTotal Assets Cash and cash equivalents$54,716,363$6,511,908$61,228,271 Investments17,549,5132,458,74820,008,261 Receivables, net of allowance for uncollectibles6,282,6361,225,7827,508,418 Due from other governments516,237-516,237 Inventories122,9876,600129,587 Capital assets: Capital assets not subject to depreciation22,505,2891,364,20223,869,491 61,162,47633,255,34194,417,817 Capital assets, net of accumulated depreciation 83,667,76534,619,543118,287,308 Total capital assets, net 162,855,50144,822,581207,678,082 Total Assets Deferred Outflows of Resources Deferred charge on refunding1,037,729-1,037,729 9,253,9021,022,84110,276,743 Deferred outflows related to pensions 10,291,6311,022,84111,314,472 Total Deferred Outflows of Resources Liabilities Accounts payable2,098,717339,3322,438,049 Accrued liabilities649,11256,169705,281 Accrued interest-533533 Unearned revenue5,915-5,915 Customer deposits-611,002611,002 Other liabilities1,256,339-1,256,339 Long-term liabilities: Due within one year3,002,148328,5843,330,732 75,189,0663,917,29279,106,358 Due in more than one year 82,201,2975,252,91287,454,209 Total Liabilities Deferred Inflows of Resources Deferred gains on refunding-937937 1,033,661109,3791,143,040 Deferred inflows related to pensions 1,033,661110,3161,143,977 Total Deferred Inflows of Resources Net Position Net investment in capital assets48,367,01734,291,66482,658,681 Restricted for: Debt service5,392,916846,4006,239,316 Economic development5,739,831-5,739,831 Senior citizen programs10,543-10,543 Replacement of trees623,265-623,265 Municipal court building and technology393,458-393,458 Park improvements423,455-423,455 Public safety1,753,703-1,753,703 Public works3,517,764-3,517,764 23,690,2225,344,13029,034,352 Unrestricted $89,912,174$40,482,194$130,394,368 Total Net Position The notes to the financial statements are an 13 integral part of this statement. CITY OF LA PORTE, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2016 Program Revenue OperatingCapital Grants Charges forGrants andand Function/ProgramsExpensesServicesContributionsContributions Primary Government Governmental Activities General government$14,255,413$3,035,577$-$- Public safety21,114,9391,913,289436,375- Public works4,422,464343,68217,731607,357 Culture and recreation3,439,7221,614,085756- Health, welfare and sanitation6,059,8962,244,061-- Interest on long-term debt 1,782,508--- Total Governmental Activities 51,074,9429,150,694454,862607,357 Business-Type Activities Water services4,985,9024,795,719-534,168 Sewer services4,374,7633,652,071-- Airport 210,59062,849-- Total Business-Type Activities 9,571,2558,510,639-534,168 Total Primary Government$60,646,197$17,661,333$454,862$1,141,525 General revenues: Taxes: Property taxes Sales and use taxes Industrial payments Franchise taxes Unrestricted investment earnings Proceeds from insurance Miscellaneous Transfers Total general revenues and transfers Change in net position Net position - beginning Net position - ending The notes to the financial statements are an 14 integral part of this statement. Net (Expense) Revenue and Changes in Net Position GovernmentalBusiness-Type ActivitiesActivitiesTotal $( 11,219,836)$-$( 11,219,836) ( 18,765,275)-( 18,765,275) ( 3,453,694)-( 3,453,694) ( 1,824,881)-( 1,824,881) ( 3,815,835)-( 3,815,835) ( 1,782,508)-( 1,782,508) ( 40,862,029)-( 40,862,029) -343,985343,985 -( 722,692)( 722,692) -( 147,741)( 147,741) -( 526,448)( 526,448) ( 40,862,029)( 526,448)( 41,388,477) 24,098,174-24,098,174 9,862,705-9,862,705 14,377,602-14,377,602 2,300,464-2,300,464 380,26844,038424,306 -- 766,683-766,683 ( 795,104)795,104- 50,990,792839,14251,829,934 10,128,763312,69410,441,457 79,783,41140,169,500119,952,911 $89,912,174$40,482,194$130,394,368 15 CITY OF LA PORTE, TEXAS BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 OtherTotal Debt ServiceGovernmentalGovernmental General FundFundFundsFunds Assets Cash and cash equivalents$28,813,106$3,371,493$19,032,777$51,217,376 Investments11,704,462-4,378,19716,082,659 Receivables, net of allowance for uncollectible5,095,096242,550938,2576,275,903 Due from other governments--396,310396,310 89,165--89,165 Inventories 45,701,8293,614,04324,745,54174,061,413 Total Assets Liabilities Accounts payable1,528,670-440,4331,969,103 Accrued liabilities588,165-3,295591,460 Due to others--1,5001,500 Unearned revenue--2,7042,704 866,989--866,989 Other payables 2,983,824-447,9323,431,756 Total Liabilities Deferred Inflows of Resources Unavailable revenue - property taxes421,57173,165-494,736 Unavailable revenue - fines and fees499,443--499,443 Unavailable revenue - EMS1,177,004--1,177,004 705,116--705,116 Unavailable revenue - other Total Deferred Inflows 2,803,13473,165-2,876,299 of Resources Fund balances Nonspendable: Inventories89,165--89,165 Restricted: Debt service-3,540,8781,616,6305,157,508 Economic development--5,739,8315,739,831 Senior citizen programs--10,54310,543 Replacement of trees--623,265623,265 Municipal court building and technology--393,458393,458 Park improvements--423,455423,455 Public safety--1,753,7031,753,703 Capital projects--8,601,7098,601,709 Public works--2,157,3392,157,339 Committed: Construction4,000,000-2,977,6766,977,676 Health funds2,000,000--2,000,000 Assigned4,439,879--4,439,879 29,385,827--29,385,827 Unassigned 39,914,8713,540,87824,297,60967,753,358 Total Fund Balances Total Liabilities, Deferred Inflows $45,701,829$3,614,043$24,745,541$74,061,413 of Resources and Fund Balances The notes to the financial statements are an 16 integral part of this statement. CITY OF LA PORTE, TEXAS RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2016 Amounts reported for governmental activities in the Statement of Net Position are different because: Total fund balance, governmental funds$67,753,358 Capitalassetsusedingovernmentalactivitiesarenotcurrentfinancialresourcesandthereforeare notreportedinthisfundfinancialstatement,butarereportedinthegovernmentalactivitiesofthe Statement of Net Position.73,038,885 Certainotherlong-termassets(propertytaxes,courtfines,EMSandotherreceivables)arenot availabletopaycurrentperiodexpendituresandthereforearenotreportedinthisfundfinancial statement, but are reported in the governmental activities of the statement of net position. 2,876,299 Someliabilitiesanddeferredoutflowsandinflowsarenotdueandpayableinthecurrentperiodand arenotincludedinthefundfinancialstatement,butareincludedinthegovernmentalactivitiesof the statement of net position. Bonds payable( 22,815,000) Certificates of obligation payable( 12,335,000) Premium on bonds( 1,627,335) Deferred charge on refunding1,037,729 Interest payable( 46,023) Due to developer( 5,509,405) Compensated absences( 3,000,345) Deferred resources related to pensions8,220,241 Net pension liability( 19,512,126) Net OPEB obligation( 12,056,360) Theassetsandliabilitiesofcertaininternalservicefundsarenotincludedinthefundfinancial statements but are included in the governmental activities of the Statement of Net Position. 13,887,256 $89,912,174 Net position of governmental activities The notes to the financial statements are an 17 integral part of this statement. CITY OF LA PORTE, TEXAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 OtherTotal Debt ServiceGovernmentalGovernmental General FundFundFundsFunds Revenues Property taxes$18,305,055$3,313,400$2,216,993$23,835,448 Sales and use taxes4,492,888-4,461,3518,954,239 Franchise taxes2,300,464--2,300,464 Industrial payments14,377,602--14,377,602 Other taxes98,865-809,601908,466 Licenses and permits596,451--596,451 Fines and forfeits1,754,145-241,9281,996,073 Charges for services6,223,039-332,1896,555,228 Intergovernmental--1,024,0971,024,097 Investment earnings240,4624,543104,546349,551 693,776-34,614728,390 Miscellaneous 49,082,7473,317,9439,225,31961,626,009 Total Revenues Expenditures Current: General government10,379,732-1,326,31511,706,047 Public safety16,971,679-1,352,00818,323,687 Public works2,869,799-159,1543,028,953 Health and sanitation2,644,295--2,644,295 Culture and recreation5,788,937-59,6765,848,613 Debt Service: Principal-3,045,0001,236,0854,281,085 Interest and other charges-1,156,851294,2241,451,075 --4,439,3194,439,319 Capital Outlay 38,654,4424,201,8518,866,78151,723,074 Total Expenditures Excess (deficiency) of revenues 10,428,305( 883,908)358,5389,902,935 over (under) expenditures Other Financing Sources (Uses) Refunding bonds issued-3,165,000-3,165,000 Premium on general obligation debt-403,795-403,795 Payments to escrow agent-( 3,490,716)-( 3,490,716) Transfers in57,5001,185,9551,607,6692,851,124 ( 3,133,582)-( 845,837)( 3,979,419) Transfers out Total Other Financing ( 3,076,082)1,264,034761,832( 1,050,216) Sources and Uses Net change in fund balances7,352,223380,1261,120,3708,852,719 32,562,6483,160,75223,177,23958,900,639 Fund balance - beginning $39,914,871$3,540,878$24,297,609$67,753,358 Fund balance - ending The notes to the financial statements are an 18 integral part of this statement. CITY OF LA PORTE, TEXAS 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, 2016 Net change in fund balances - total governmental funds:$8,852,719 Amounts reported for Governmental Activities in the Statement of Activities are different because: Governmentalfundsreportoutlaysforcapitalassetsasexpendituresbecausesuchoutlaysuse currentfinancialresources.Incontrast,theStatementofActivitiesreportsonlyaportionofthe outlayasexpense.Theoutlayisallocatedovertheassets'estimatedusefullivesasdepreciation expensefortheperiod.Thisistheamountbywhichdepreciation$4,060,372exceededcapital outlays of $4,636,701 in the current period. 4,517 Governmentalfundsreporttheentirenetsalesprice(proceeds)fromthesaleofanassetasan inflowbecauseitprovidescurrentfinancialresources.Incontrast,theStatementofActivities reportsonlythegainonthesaleofassets.Thus,thechangeinnetassetsdiffersfromthechangein fund balance by the book value of the assets sold and disposed. ( 1,485) Governmentalfundsdonotpresentrevenuesthatarenotavailabletopaycurrentobligations.In contrast, such revenues are reported in the Statement of Activities when earned. 342,083 Repaymentofbondprincipalandpaymentstodevelopersareanexpenditureinthegovernmental fund, but the repayment of principal reduces long-term liabilities in the statement of net position. 3,900,206 Proceedsfromtheissuanceoflong-termdebtandpremiumonlong-termdebtarereportedas otherfinancingsourcesinthegovernmentalfunds.Inthegovernment-widestatements,proceeds are treated as an increase in long-term liabilities.( 78,079) Someexpensesreportedinthestatementofactivitiesdonotrequiretheuseofcurrentfinancial resources and these are not reported as expenditures in governmental funds: 3,704 Change in interest payable ( 118,215) Change in refunding gain and loss 163,957 Change in premiums on issuance of bonds 5,897,513 Change in deferred outflows related to pensions ( 458,686) Change in deferred inflows related to pensions ( 6,548,862) Change in net pension liability ( 1,636,880) Change in net OPEB obligation 110,653 Change in compensated absences Internalservicefundsareusedbymanagementtochangethecostofcertainactivities,suchas fleetmaintenanceandinformationtechnology,toindividualfunds.Thenetrevenue(expense)of certain internal service funds is reported with governmental activities. ( 304,382) $10,128,763 Change in net position of governmental activities The notes to the financial statements are an 19 integral part of this statement. CITY OF LA PORTE, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2016 Governmental Business-Type Activities Activities Internal Service UtilityLPAWAAirportTotalsFund Assets Current Assets: Cash and cash equivalents$4,229,917$2,022,186$259,805$6,511,908$3,498,987 Investments1,507,979845,318105,4512,458,7481,466,854 Accounts receivable, net of allowance for doubtful accounts1,070,808144,2604,7751,219,843- Due from other governments----119,927 Accrued interest receivable3,6682,0152565,9396,733 6,600--6,60033,822 Inventories 6,818,9723,013,779370,28710,203,0385,126,323 Total Current Assets Non-Current Assets: Capital assets: Land and improvements224,308-223,483447,791147,765 Construction in progress916,411--916,411- Buildings and improvements57,620--57,620- Improvements other than buildings68,180,14215,470,9215,758,42089,409,483- Vehicles and equipment3,926,9396,130-3,933,06918,015,983 ( 46,185,122)( 10,021,670)( 3,938,039)( 60,144,831)( 8,827,889) Less accumulated depreciation 27,120,2985,455,3812,043,86434,619,5439,335,859 Total Non-Current Assets 33,939,2708,469,1602,414,15144,822,58114,462,182 Total Assets Deferred Outflows of Resources 1,013,626-9,2151,022,841- Deferred outflows related to pensions 1,013,626-9,2151,022,841- Total Deferred Outflows of Resources 20 CITY OF LA PORTE, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2016 Governmental Business-Type Activities Activities Internal Service Utility FundLPAWAAirportTotalsFund Liabilities Current Liabilities: Accounts payable231,439107,191702339,332129,614 Accrued liabilities55,738-43156,16911,629 Accrued interest-533-533- Unearned revenue----3,211 Customer deposits609,502-1,500611,002- Claims and judgements----387,850 Long-Term Debt, Current Portion Compensated absences8,584--8,584- -320,000-320,000- Bonds payable 905,263427,7242,6331,335,620532,304 Total Current Liabilities Non-Current Liabilities: Compensated absences163,105--163,10542,622 Net pension liability2,117,265-19,2482,136,513- Net OPEB obligation1,609,795--1,609,795- -7,879-7,879- Bonds payable 3,890,1657,87919,2483,917,29242,622 Total Non-Current Liabilities 4,795,428435,60321,8815,252,912574,926 Total Liabilities Deferred Inflows of Resources Deferred gain on refundings-937-937- 108,394-985109,379- Deferred inflows related to pensions 108,394937985110,316- Total Deferred Inflows of Resources Net Position Net investment in capital assets27,120,2985,127,5022,043,86434,291,6649,335,859 Restricted for debt service520,000326,400-846,400- 2,408,7762,578,718356,6365,344,1304,551,397 Unrestricted $30,049,074$8,032,620$2,400,500$40,482,194$13,887,256 Total Net Position The notes to the financial statements are an 21 integral part of this statement. CITY OF LA PORTE, TEXAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Governmental Business-Type Activities Activities Total EnterpriseInternal Service UtilityLPAWAAirportFundsFund Revenues $8,419,819$1,181,318$62,849$9,663,986$8,729,321 Charges for services 8,419,8191,181,31862,8499,663,9868,729,321 Total Operating Revenues Operating Expenses Personnel services3,525,716-26,2613,551,977730,752 Supplies and materials384,7294,8631,563391,155416,927 Purchased water-939,140-939,140- Other services and charges2,692,11585,23033,4522,810,7977,544,808 2,410,956465,687149,3143,025,9571,387,033 Depreciation 9,013,5161,494,920210,59010,719,02610,079,520 Total Operating Expenses Operating income (loss)( 593,697)( 313,602)( 147,741)( 1,055,040)( 1,350,199) Non-Operating Revenues (Expenses) Investment earnings25,21516,7972,02644,03830,717 Gain (loss) on disposal of capital assets----83,682 ( 2,972)( 2,604)-( 5,576)- Interest expense Total Non-Operating 22,24314,1932,02638,462114,399 Revenues (Expenses) Income before contributions( 571,454)( 299,409)( 145,715)( 1,016,578)( 1,235,800) and transfers Capital contributions785,92498,169-884,093248,302 Transfers in1,000,000--1,000,000696,352 ( 552,998)( 1,305)( 518)( 554,821)( 13,236) Transfers out 661,472( 202,545)( 146,233)312,694( 304,382) Change in net position 29,387,6028,235,1652,546,73340,169,50014,191,638 Total net position - beginning $30,049,074$8,032,620$2,400,500$40,482,194$13,887,256 Total net position - ending The notes to the financial statements are an 22 integral part of this statement. CITY OF LA PORTE, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Governmental Activities Business-Type Activities TotalInternal EnterpriseService UtilityLPAWAAirportFundsFund Cash Flows from Operating Activities Receipts from customers and users$8,445,607$1,199,956$60,449$9,706,012$8,731,996 Disbursed for personnel services( 3,299,944)-( 25,994)( 3,325,938)( 809,978) ( 3,208,043)( 1,303,420)( 35,231)( 4,546,694)( 7,976,926) Disbursed for goods and services 1,937,620( 103,464)( 776)1,833,380( 54,908) Net Cash Provided (Used) by Operating Activities Cash Flows from Noncapital Financing Activities Transfers from other funds1,000,000--1,000,000696,352 ( 552,998)( 1,305)( 518)( 554,821)( 13,236) Transfers to other funds Net Cash Provided by (Used by) Noncapital 447,002( 1,305)( 518)445,179683,116 Financing Activities Cash Flows from Capital and Related Financing Activities Proceeds from the sale of equipment----83,682 Principal payments on debt( 262,500)( 670,000)-( 932,500)- Interest paid on debt( 4,799)( 22,851)-( 27,650)- Acquisition and construction of capital assets, net of dispositions( 732,824)( 41,241)-( 774,065)( 2,334,343) Capital contributions from participants for debt service-2,576-2,576- -95,593-95,593- Capital contributions from participants for capital recovery ( 1,000,123)( 635,923)-( 1,636,046)( 2,250,661) Net Cash Used by Capital and Related Financing Activities Cash Flows from Investing Activities Purchase of investments( 1,808,828)( 1,013,962)( 126,489)( 2,949,279)( 1,759,499) Sale of investments1,848,6101,736,851131,3123,716,7732,277,152 20,25716,3921,93338,58227,469 Interest received 60,039739,2816,756806,076545,122 Net Cash Provided by (Used by) Investing Activities Net increase in cash and equivalents1,444,538( 1,411)5,4621,448,589( 1,077,331) 2,785,3792,023,597254,3435,063,3194,576,318 Cash and equivalents, beginning of year $4,229,917$2,022,186$259,805$6,511,908$3,498,987 Cash and equivalents, at end of year 23 CITY OF LA PORTE, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Governmental Activities Business-Type Activities TotalInternal EnterpriseService Utility FundLPAWAAirportFundsFund Reconciliation of Operating Income (loss) to Net Cash Provided by Operating Activities Operating income (loss)( 593,697)( 313,602)( 147,741)( 1,055,040)( 1,350,199) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation2,410,956465,687149,3143,025,9571,387,033 (Increase) decrease in accounts receivable( 13,179)18,638( 2,400)3,059- (Increase) decrease in deferred outflow-pensions( 644,114)-( 5,902)( 650,016)- Increase (decrease) in accounts payable( 131,199)( 274,187)( 216)( 405,602)( 15,191) Increase (decrease) in accrued liabilities( 73,749)-( 670)( 74,419)( 18,322) Increase (decrease) in unearned revenue----2,675 Increase (decrease) in customer deposits38,967--38,967- Increase (decrease) in claims----( 51,843) Increase (decrease) in compensated absences( 13,227)--( 13,227)( 9,061) Increase (decrease) in net pension liability683,686-6,397690,083- Increase (decrease) in OPEB obligation225,328--225,328- 47,848-44248,290- Increase (decrease) in deferred inflow-pensions $1,937,620$( 103,464)$( 776)$1,833,380$( 54,908) Net Cash Provided (Used) by Operating Activities Noncash investing, capital, and financing activities: $785,924$-$-$785,924$248,302 Contributions of capital assets The notes to the financial statements are an 24 integral part of this statement. CITY OF LA PORTE, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 I.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES under the laws of the State of Texas on - 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 policies (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 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 its have been included as blended component units because of the significance of their operations and financial relationships with the City. -member board appointed by the City Council. Although it is a legally separate entity, the Authority provides 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 -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. 25 The Section 4B Sales Tax Corporation provides services that exclusively benefits 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. B.Government-Wide 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. The governmental activities column incorporates data from governmental funds and internal service funds, while business-type provided for governmental funds and proprietary funds. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments for interfund services provided distort the direct costs and program revenues reported for the various functions concerned. C.Fund Financial Statements component units. Separate statements for each fund category governmental and proprietary are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate funds in the fund financial statements. The City reports the following major governmental funds: The General Fund is used to account for all financial transactions that are not accounted for in another fund. The principal sources of revenues 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. The Debt 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 for which are accounted for in the General Fund. The primary source of revenue for the Debt Service Fund is general property taxes. 26 The City reports the following major enterprise funds: The Utility 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 received regularly and adjusted if necessary to ensure integrity of the fund. La Porte 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 City reports the Internal Service Funds which are used to account for the Motor Pool, Technology and Insurance service provide to other departments of the City on a cost reimbursement basis. During the course of operations the City has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in thegovernmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental acitivities column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business- type activities column. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfer in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in governmental activities column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column. D.Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources oreconomic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. 27 The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded 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 revenues as soon as all eligibility requirements imposed by the provider have been meet. The 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 theCity 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 judgements, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt are reported as other financing sources. Property taxes, sales taxes, franchise taxes, court fines, and interest associated with the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period of availability period for this revenue source (within 60 days of year end). All other revenue items are considered to be measurable and available only when cash is received by the City. The proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. E.Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance 1.Cash and Investments 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 consist of U.S. Treasury Bills and deposits in the Texas Local Government Pool (TexPool), the Local Government Investment Corporation (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. 28 Investments for the City are reported at fair value, except for the position in investment pool-like pools and are reported at the net asset value per share (which approximates fair value) even though it is calculated using the amortized cost method. A 2a7-like pool is one which is not registered with the Securities and Company Act of 1940. 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.Inventories 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 4.Capital Assets Capital assets are reported in the applicable governmental or business-type activities column in the government-wide financial statements. The City defines capital assets with an initial, individual cost of $5,000 or greater and an estimated useful life in excess of one year. As the City constructs or acquires capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase capacity or efficiency of the item or increase its estimated useful life. Donated capital assets are recorded at acquisition cost, which is the price that would be paid to acquire an asset with equivalent service potential at the acquisition date. Land and construction in progress are not depreciated. The remainder capital assets are depreciated using the straight line method over the following estimated useful lives. Estimated Asset DescriptionUseful Life Buildings20 years Building improvements20 years Infrastructure20-30 years Vehicles4-10 years Machinery and equipment4-10 years Water and sewer systems20-10 years 29 5.Pensions For purposes of measuring the net pension liability for the Texas Municipal Retirement System (TMRS), pension related deferred outflows and inflows of resources, and pension expense, City specific information about its Fiduciary Net Position in the TMRS and same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For purposes of measuring the net pension liability for the Texas Emergency Services Retirement System (TESRS), pension related deferred outflows and inflows of resources, and pension expense, information about the fiduciary net position of TESRS and additions as they are reported by TESRS. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 6.Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position and/or balance sheet 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 City has the following items that qualify for reporting in this category. Deferred charges on refunding 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. Pension contributions after measurement date These contributions are deferred and recognized in the following fiscal year. Difference in projected and actual earnings on pension assets This difference is deferred and amortized over a closed five year period. In addition to liabilities, the statement of financial position and/or balance sheet 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 City has three types of items that qualify for reporting in this category. Unavailable revenue is reported only in the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 30 Deferred gain on refunding - 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 short of the life of the refunded or refunding debt. Difference in expected and actual pension experience - This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. Changes in actuarial assumptions These changes are deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. 7.Compensated Employee Absences 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 financial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. 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. Policies relating to the accrual 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 accrued 3.70 hours per pay period. Full time 24 hour employees accrue 5.91 hours per pay period and civil service employees accrued 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. 8.Net Position Flow Assumption Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made consider restricted net position to have been depleted before unrestricted net position is applied. 31 9.Fund Balance Flow Assumption Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 10.Net Position Classifications Classification of net position includes three components 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, premiums, discounts, and deferred outflows of resources or deferred inflows of resources from refundings. Restricted This component of the 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 11.Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The City itself can establish limitations on the use of resources through either comment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for specific purposes determined by a formal action of the City Council, highest level of decision-making-authority. The City Council is the highest level of decision-making- authority for the City that can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once, adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. 32 Amount in the assigned fund balance classification are intended to be used by the City for specific purposes, but do not meet the criteria to be classified as committed. The City Council has by resolution authorized the City Manager under the authorization of the Fiscal Affairs Committee to assign fund balance. The City Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenues and assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. 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 resolution. 12.Program Revenues Amounts reported as 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 function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than program revenues. 13.General and Debt Service Property Taxes All taxes due to 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. 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. 14.Industrial Payments - the un- taxes would have been had the entities land, improvements, and inventory been within the corporate limits of the City. 33 15.Proprietary Funds Operating and Non-operating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating 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. 16.Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual amounts could vary from those estimates. 17.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. II.DETAILED NOTES ON ALL ACTIVITIES AND FUNDS 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 statues, 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. 34 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 investments to obligations of the U.S. Government or U.S. Government Agencies, fully collateralized certificat local government investment pools. The maximum maturity allowed is five years from date of collateralized mortgage obligations, floating rate investments or swaps. Deposit and Investment Amounts 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 and LOGIC). The restricted cash and investments are assets restricted for specific use. The following schedul-end: Total Reported Value GovernmentalInternal ServiceEnterprise FundsFundsFunds Cash deposits$8,453,485$297,357$148,075 Investment Pools42,219,3283,201,6296,363,833 16,082,6591,466,8552,458,748 US Agency Securities $66,755,472$4,965,841$8,970,656 Fair Value Measurement and Application. GASB 72 was issued to address accounting and financial reporting issues related to fair value measurement. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of September 30, 2016: U.S. Treasury securities of $20,008,262 were valued using a pricing model (Level 2 inputs). 35 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 CarryingMaturity Investment TypeValue(months) Public funds investment pools$51,784,79048.0 Federal Home Loan Mortgage Corporation (FHLMC)10,008,20625.8 Federal Farm Credit Bank (FFCB)4,000,26027.0 5,999,79633.0 Federal Home Loan Bank (FHLB) $71,793,052 Total carrying value Portfolio weighted average maturity22.3 he 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 not 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 ReportedPercentage of Investment TypeValueTotal Portfolio Investment Pools$51,784,79072.13 % 20,008,26227.87 % US Agency Securities $71,793,052100.00 % Total Credit Risk Policy is represented in U.S. Treasury Bills, Notes or Bonds, and other securities which are guaranteed as to principal and interest by the full faith and credit of the United States of America, collateralized or fully insured certificates of deposits, FDIC insured banks in the State of Texas, repurchase agreements if secured by U.S. Treasury Bills, Notes or Bonds and Public Funds Investment Pools. 36 PROPERTY TAX The appraisal of property within the City is the responsibility of the Harris County Appraisal District 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 adopted tax rate, excluding tax rates for repayment of general obligation bonds and other contractual obligations, adjustment 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 y in October on the basis of the s 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 property taxes are billed 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 fiscal year 2016 were $0.605 and $0.105, respectively, per $100 of assessed valuation. The 2015 assessed value and total tax levy as adjusted through September 30, 2016 were $3,028,282,747 and $21,500,808 respectively. The City has enacted an ordinance providing for 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 disable veterans on any one piece of property. Additionally, the market calculation. Property taxes are levied by October 1 in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed. On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed. The Harris County Central A Council based on the appraised values and operating needs of the City. 37 RECEIVABLES Amounts are aggregated into a single accounts receivable (net of allowance for uncollectible) line for certain funds and aggregated columns. Below is the detail of receivables for the General Fund, Debt Service Fund, and nonmajor governmental funds in the aggregate, including the applicable allowances for uncollectible accounts. DebtOtherTotal GeneralServiceGovernmentalGovernmental Receivables: Taxes$2,946,366$317,028$912,778$4,176,172 Mowing and demolition586,233--586,233 EMS1,958,019--1,958,019 Solid waste135,864--135,864 Municipal court499,443--499,443 Other153,149-14,846167,995 Interest28,367-10,63339,000 Allowance for (1,212,345)(74,478)-(1,286,823) uncollectibles $5,095,096$242,550$938,257$6,275,903 Revenues of the Utility Fund, an enterprise fund, are reported net of uncollectible amounts. Total uncollectible amount related to utility sales as of year-end was $41,021. 38 CAPITAL ASSETS Capital assets activity for the year ended September 30, 2016, was as follows: BalanceBalance September 30,Reclassification/September 30, 2015Increases(Decreases)2016 Governmental Activities: Capital assets, not being deprecated: Land$9,525,974$763,089$-$10,289,063 16,459,2091,019,001(5,261,984)12,216,226 Construction in progress Total capital assets, not 25,985,1831,782,090(5,261,984)22,505,289 being depreciated Capital assets, being depreciated: Buildings and improvements36,857,5231,409,260(9,897)38,256,886 Improvements other than buildings26,294,7204,221,737(24,926)30,491,531 Infrastructure40,391,8892,923,172-43,315,061 20,924,5952,834,371(1,183,719)22,575,247 Machinery and equipment 124,468,72711,388,540(1,218,542)134,638,725 Total capital assets, being depreciated Less accumulated deprecation for: Buildings and improvements(19,022,545)(1,412,299)8,412(20,426,432) Improvements other than buildings(11,377,613)(890,715)24,926(12,243,402) Infrastructure(27,311,659)(1,421,601)-(28,733,260) (11,264,583)(1,696,375)887,803(12,073,155) Machinery and equipment (68,976,400)(5,420,990)921,141(73,476,249) Total accumulated depreciation Total capital assets being 55,492,3275,967,550(297,401)61,162,476 depreciated, net $81,477,510$7,749,640$(5,559,385)$83,667,765 Totals BalanceBalance September 30,Reclassification/September 30, 2015Increases(Decreases)2016 Business-Type Activities: Capital assets, not being deprecated: Land$447,791$-$-$447,791 294,387622,024-916,411 Construction in progress Total capital assets, not 742,178622,024-1,364,202 being depreciated Capital assets, being depreciated: Buildings and improvements57,620--57,620 Improvements other than buildings88,704,964704,520-89,409,484 3,699,624233,445-3,933,069 Machinery and equipment 92,462,208937,965-93,400,173 Total capital assets, being depreciated Less accumulated deprecation for: Buildings and improvements(50,991)(424)-(51,415) Improvements other than buildings(55,742,907)(2,436,701)-(58,179,608) (1,324,977)(588,832)-(1,913,809) Machinery and equipment (57,118,875)(3,025,957)-(60,144,832) Total accumulated deprecation Total capital assets being 35,343,333(2,087,992)-33,255,341 depreciated, net $36,085,511$(1,465,968)$-$34,619,543 Totals 39 Depreciation was charged to functions/programs of the governmental activities of the primary government as follows: General government$739,067 Public safety1,682,518 Public works1,122,685 Parks and recreation489,687 Capital assets held by the City's internal service funds are charged to various functions based 1,387,033 on their usage of the assets $5,420,990 Total governmental activities Construction contract commitments outstanding as of September 30, 2016, are as follows: TotalRemaining FundProjectIn ProgressCommitment General CIP FundStreet and Drainage$7,951,964$202,998 Drainage ImprovementsDrainage Improvements1,369,263745,009 Restricted FundsDrainage Improvements1,175,49627,937 Utility FundMeter Replacement Program285,59040,952 Utility FundElevated Water Tower Painting186,025103,950 444,795498,260 Utility FundWater System Improvements $13,133,011$1,619,106 Totals 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. 40 The schedule below details the terms of public property finance contractual obligation, general obligation bonds, certificates of obligations and revenue bonds outstanding as of September 30, 2016: GovernmentalBusiness-Type 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.$400,000$- 2005 Certificates of Obligation due in annual payments through March 15, 2025; interest at 2.8% to 3.8% $1,800,000 issued for water and sewer improvements and fire truck.90,000- 2006 General Obligation Serial Bonds due in annual payments through March 15, 2025; interest at 3.75% to 4.3% $5,765,000 issued for policy facility, sports, and water and sewer 140,000- improvements. 2006 Certificates of Obligation due in annual payments through March 15, 2025; interest at 3.75% to 315,000- 4.3% $5,765,000 issued for police facility, sports and water and sewer 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.4,535,000- 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.1,705,000- 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 refunding previous debt.-320,000 2012 General Obligation Refunding Bonds due in annual payments through March 15, 2025; interest at .65% to 3.00% $9,435,000 issued to refund previous debt.9,125,000- 2014 General Obligation Refunding Bonds due in annual payments through March 15, 2025; interest at 2.00% to 3.50% $9,300,000 issued to refunding previous debt.8,310,000- 2015 Certificates of Obligation due in annual installments through March 15, 2030; interest at 2.25% to 3.00% $7,770,000 issued for water and sewer system improvements, and street and drainage improvements.7,395,000- 2016 General Obligation Refunding Bonds due in annual payments through March 15, 2029; interest at 2.00% to 3,135,000- 4.00% $3,165,000 issued to refund previous debt. $35,150,000$320,000 Total Bonds Payable 41 -term liabilities for the year ended September 30, 2016 are as follows: BalanceBalanceAmounts Due September 30,September 30,Within One 2015Additions(Reductions)2016Year Governmental Activities: Bonds payable: General obligation bonds$21,220,000$3,165,000$( 1,570,000)$22,815,000$1,725,000 Certificates of obligation17,230,000-(4,895,000)12,335,0001,125,000 1,400,517403,795(176,977)1,627,335- Premium on bond issuance 39,850,5173,568,795(6,641,977)36,777,3352,850,000 Total bonds payable Due to developers6,786,8521,465,101(1,514,180)6,737,773- Retainage payable301,410-(236,757)64,653- Compensated absences3,162,68185,931(205,645)3,042,967152,148 Net pension liability-TMRS12,832,2466,662,230(244,471)19,250,005- Net pension liability-TESRS131,018157,158(26,055)262,121- 10,419,4802,195,059(558,179)12,056,360- Net OPEB obligation $73,484,204$14,134,274$( 9,427,264)$78,191,214$3,002,148 Total Governmental Activities BalanceBalanceAmounts Due September 30,September 30,Within One 2015Additions(Reductions)2016Year Business-Type Activities: Bonds Payable: Revenue bonds$990,000$-$( 670,000)$320,000$320,000 Public property finance certificates of obligation262,500-(262,500)-- 25,238-(17,359)7,879- Premium on bond issuance 1,277,738-(949,859)327,879320,000 Total Bonds Payable Compensated absences184,91653,242(66,469)171,6898,584 Net pension liability-TMRS1,446,430717,217(27,134)2,136,513- 1,384,467293,090(67,762)1,609,795- Net OPEB obligation $4,293,551$1,063,549$( 1,111,224)$4,245,876$328,584 Total Business-Type Activities Long-term liabilities applicable to 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 liability and OPEB obligation are liquidated by the general fund, and retainage payable is liquidated by capital project and restricted funds. General Obligation Bonds and Certificates of Obligation 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 maturity. The City is in compliance with this requirement. 42 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 water and sewer system. On May 31, 2010, the La Porte Water Authority issued $4.085 million Contract Revenue Refunding Bonds, Series 2010, to defease $2.95 million of unlimited tax bonds. The Revenue Bonds are collateralized by the net revenue of the La Porte Area Water Authority and are payable through September 30, 2017. 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 payments expected to require 64 percent of net revenues. Principal and interest paid for the current year and net system revenues were $692,850 and $269,077. The ordinances also contain provisions, which, among other items, restrict the issuance of additional Revenue Bonds unless the special funds noted above contain the require amounts and certain financial ratios are met. The City is in compliance with all significant financial requirements of as September 30, 2016. Thebond type are as follows: Governmental Activities FiscalGeneral Obligation BondsCertificate of Obligation YearPrincipalInterestPrincipalInterest 2017$1,725,000$681,342$1,125,000$382,361 20182,195,000624,422745,000348,680 20192,470,000558,931770,000321,930 20202,465,000485,300800,000294,205 20212,270,000412,650830,000265,405 20222,335,000343,575855,000236,468 20232,395,000272,625885,000207,150 20242,460,000197,275915,000176,203 20252,490,000119,125950,000143,487 2026470,00071,000980,000110,956 2027495,00051,700905,00083,938 2028510,00031,600925,00061,063 2029535,00010,700950,00035,250 --700,00010,500 2030 $22,815,000$3,860,245$12,335,000$2,677,596 Business-Type Activities Contract Revenue Bonds Fiscal YearPrincipalInterest $320,000$6,400 2017 $320,000$6,400 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 inancial statements. As of September 30, 2016, the City does not have bonds considered defeased and outstanding. 43 Advance Refunding The City issued $3,165,000 of general obligation refunding bonds to provide resources to purchase U.S. Government State and Local securities that were placed in an irrevocable trust for the purchase of generating resources for all future debt service payments of $3,490,716 of certificate of obligations and refunding bonds. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the governmental activities column of the statement of net position. The reacquisition price exceeded the net carrying amount of the old debt by $57,696. This amount is being netted against the old debt and amortized over the remaining life of the old debt, which is shorter than the life of the new debt issued. This advance refunding was undertaken to reduce total debt service payments over the next 14 years by $541,401 and resulted in an economic gain of $477,612. Due to Developers The TIRZ is a party to several agreements with Developers who own property in the La Porte Tax Increment Zone. The TIRZ is obligated to repay the Developers for public improvements made on the property up to the amount of incremental tax value gained. The Authority has entered into agreements with the following Developers: Port Crossing Land, LP; 65 La Porte, Ltd.; and Retreat at Bay Forest, LP., Port Crossing Land, LP has completed the public improvements detailed in the agreement with the Authority, and assigned their receivable amount to Liberty Property Limited Partnership in 2015. $12,096,488 including interest at May 27, 2009. In the current fiscal year, the Developer was reimbursed $1,147,826. To date, reimbursements in the amount of $8,939,782 have been made to Port Crossing Liberty for incremental tax value gained. Interest was recalculated, and payments were applied to interest first, then principal. $224,760, including interest of $36,885 for the pilot channel and excavation costs as of November 20, 2014. No additional interest will be due under the agreement. During the current fiscal year, a reimbursement of $46,636 was applied to principal. including interest at August 24, 2016. In the current fiscal year, the Developer was reimbursed $17,940 for interest. including interest at August 24, 2016. In the current fiscal year, the Developer was reimbursed $5,769 for interest. In addition, a Developers has signed a Development Agreement but has not submitted costs for reimbursements of their projects. Estimated costs, based on agreements, are as follows: 65 La Porte, Ltd.$7,103,500 44 INTERFUND ACTIVITY The composition of interfund transfers for the year are as follows: Transfers To DebtOtherInternal Transfers FromGeneral ServiceGovernmentalUtilityServiceTotals General Fund$-$-$1,500,000$1,000,000$633,582$3,133,582 Other Governmental57,500680,668107,669--845,837 Utility-505,287--47,711552,998 LPAWA----1,3051,305 Airport----518518 ----13,23613,236 Internal Service $57,500 1,185,955$$1,607,669$1,000,000$696,352$4,547,476 Totals The purpose of interfund transfers during the current year consisted of the following: Transfers FromTransfers ToAmountPurpose Utility FundDebt Service Fund$505,287Annual transfer for debt service Utility FundInsurance Fund47,711Transfer for liability insurance and workers comp Airport FundInsurance Fund518Transfer for liability insurance and workers comp La Porte AreaInsurance Fund1,305Transfer for liability insurance and workers comp Water Authority Vehicle Maintenance FundInsurance Fund Transfer for liability insurance and workers comp13,236 Hotel/Motel FundGeneral CIP Fund Transfer for capital projects107,669 Hotel/Motel FundGeneral Fund Transfer for golf course advertising and City57,500 bordering bay for golf expenditures General FundInsurance Fund Transfer for liability insurance and workers comp633,582 General FundGeneral CIP Fund 1,500,000Transfer for capital projects General FundUtility Fund 1,000,000Transfer for capital projects Debt Service Fund680,668 Transfer for debt service La Porte Development Corporation (4B) Total transfers$4,547,476 DEFINED BENEFIT PENSION PLAN TEXAS MUNICIPAL RETIREMENT SYSTEM Plan Descriptions The City participates as one of 866 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agency multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally an is a tax-qualified plan under Sections 401(a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.org. 45 Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. and the City-financed monetary credits, with interest, were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to The City has approved an annually repeating (automatic) basis a monetary credit referred to as an updated service credit (USC) which is a theoretical amount which takes into account salary increases or plan improvements. If at any time during their career an employee earns a USC, this amount remains in their account earning interest at 5% until retirement. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer match plus employer-financed monetary credits, such as USC, with interest were used to purchase an annuity. Additionally, City provides on an annually repeating (automatic) basis cost of living adjustments (COLA) for retirees equal to a percentage of the change in the consumer price index (CPI). A summary of plan provisions for the City are as follows: 7.0% Employee deposit rate 2 to 1 Matching ratio (City to employee) 10 Years required for vesting 20 years to any age, Service retirement eligibility 10 years at age 60 and above 100% repeating Updated service credit 70% of CPI, repeating Annuity increase to retirees At the December 31, 2015 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits182 Inactive employees entitled to but not yet receiving benefits142 374 Active employees 698 46 Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the City matching percentages are with 100%, 150%, or 200%, both as adopted by the governing body of the city. Under the state law governing TMRS, the contributions rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City were required to contribute 7.0% of their annual gross earnings during the fiscal year. The contribution rates for the City were 16.12% and 15.64% in calendar years 2015 and 2016, respectively. The C2016, were $3,551,472,and were equal to the required contributions. Net Pension Liability The Ci2015, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. The Total Pension Liability in the December 31, 2015 actuarial valuation was determined using the following actuarial assumptions: Inflation2.5% per year Overall payroll growth3.0% per year Investment rate of return 6.75%, net of pension plan investment expense, including inflation Salary increases were based on a service-related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Combined Health Mortality Tables with Blue Collar Adjustment are used with male rates multiplied by 109% and female rate multiplied by 103% with a 3-year set-forward for both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for younger members who became disabled. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements subject to the 3% floor. 47 Actuarial assumptions used in the December 31, 2015 valuation were based on the results of actuarial experience studies. The experience study in TMRS was for the period December 31, 2010 through December 31, 2014. Healthy post-retirement mortality rates and annuity purchase rates were updated based on a Mortality Experience Investigation Study covering the 2009 through 2011, and the dated December 31, 2013. These assumptions were first used in the December 31, 2013 valuation, along with a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No additional changes were made for the 2014 valuation. After the Asset Allocation Study Analysis and experience investigation study, the Board amended the long-term expected rate of return on pensions plan investments from 7% to 6.75%. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best estimate ranges of expected future real rates of return (expected returns, net of plant investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). At its meeting on July 30, 2015, the TMRS allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The target allocation and best estimates of arithmetic real rates return for each major assets class are summarized in the following table: Long-Term Expected Real TargetRate of Return Asset ClassAllocation(Arithmetic) 17.5%4.55% Domestic Equity 17.5%6.10% International Equity 10.0%1.00% Core Fixed Income 20.0%3.65% Non-Core Fixed Income 10.0%4.03% Real Return 10.0%5.00% Real Estate 10.0%4.00% Absolute Return 5.0%8.00% Private Equity 100.0% Total 48 The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the Total Pension Liability. Increase (Decrease) Total PensionPlan FiduciaryNet Pension LiabilityNet PositionLiability (a)(b)(a) - (b) Balance at 12/31/2014$137,589,270$123,310,594$14,278,676 Changes for the year: Service cost3,401,691-3,401,691 Interest9,564,637-9,564,637 Difference between expected and actual experience ( 500,190)-( 500,190) Changes of assumptions( 325,022)-( 325,022) Contributions - employer-3,461,463( 3,461,463) Contributions - employee-1,506,158( 1,506,158) Net investment income-181,954( 181,954) Benefit payments, including refunds of employee contributions ( 5,304,879)( 5,304,879)- Administrative expense-( 110,827)110,827 Other changes-( 5,474)5,474 Net changes6,836,237( 271,605)7,107,842 Balance at 12/31/2015$144,425,507$123,038,989$21,386,518 The following presents the net pension liability of the City, calculated using the discount rate of 6.75 rate that is 1-percentage-point lower (5.75%) of 1-percentage-higher (7.75%) than the current rate: 1% Decrease1% Increase in DiscountDiscountin Discount Rate (5.75%)Rate (6.75%)Rate (7.75%) City's net pension liability$42,454,641$21,386,518$4,170,702 49 - issued TMRS financial report. The report may be obtained on the Internet at www.tmrs.org. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2016, the City recognized pension expense of $4,599,527. At September 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred OutflowsDeferred Inflows of Resourcesof Resources Differences between expected and actual economic $-$838,585 experience Changes in actuarial assumptions-256,307 Difference between projected and actual investment 7,654,443- earnings 2,584,205- Contributions subsequent to the measurement date $10,238,648$1,094,892 Totals $2,584,205 reported as deferred outflows of resources related to pension resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year ending September 30, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expenses as follows: For the Year Ended September 30, 2017 $1,654,798 2018 1,654,798 2019 1,687,356 2020 1,562,599 DEFINED BENEFIT PENSION PLAN TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM Plan Description The City participates in the Texas Emergency Services Retirement System (TESRS), a cost-sharing multiple-employer defined benefit pension established and administered by the State of Texas. The TESRS is an agency of the State of Texas and its financial records comply with state statutes and regulations. The nine members Board of Trustees, appointed by the Governor, establishes policy for the administration of the Texas Emergency Services Retirement System. TESRS issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at www.tesrs.org. 50 The TESRS was created as a standalone agency by the 83rd Legislature via the passage of SB 220, effective September 1, 2013, to assume the related functions of the abolished Office of the Fire stem has been in existence since 1977. TESRS, which is under the authority of Title 8, Subtitle H, Chapters 861-865 of the Texas Government Code, provides death and disability benefits to active volunteer fire fighters and first responders, and a pension to members with vested service, as well as to their survivor/beneficiaries. Pension Plan Fiduciary Net Position For financial reporting purposes, the State of Texas is considered the primary reporting government. TESRS issues a publicly available Annual Financial Report, which includes financial statements, notes, and required supplementary information, which can be obtained at www.tesrs.org. Benefits Provided Senate Bill 411, 65th Legislature, Regular Session (1977), created TESRS and established the applicable benefit provisions. The 79th Legislature, Regular Session (2005), re-codified the provisions and gave the TESRS Board of Trustees authority to establish vesting requirements, contribution levels, benefit formulas, and eligibility requirements by board rule. The benefit provisions include retirement benefits as well as death and disability benefits. Members 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. Upon reaching age 55, each vested member may retire and receive a monthly pension equal to his vested percent multiplied by six times the City 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. There is no provision for automatic postretirement benefit increases. 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 pouse and dependent children. Contributions Contributions are made by the City for the participating employees. No contributions are required from the individuals who are members of the TESRS, nor are they allowed. The City is required to make contributions for each month an employee of the plan this minimum contribution is $36 per member. Contributions to the pension plan for the year ended September 30, 2016, were $38,095. Actuarial Assumptions The total pension liability in the August 31, 2014, actuarial valuation was determined using the following actuarial assumptions: Inflation 3.50% Salary increases None Investment rate of return7.75%, net of pension plan expense, including inflation 51 Mortality rates were based on the RP-2000 Combined Healthy Lives Mortality Tables for males and for females projected to 2018 by scale AA. The actuarial assumptions used in the August 31, 2014, valuation were based on the results of an actuarial experience study for the period completed in 2008. The long-term expected rate of return on pension plan investments was determined using a building- block method in which expected future net real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These components are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation (3.50%). In addition, the final 7.75% assumption reflected a reduction of 0.20% for adverse deviation. The target allocation and expected arithmetic real rates of return for each major asset class are summarized in the following table: Long-Term Target Expected Portfolio Asset ClassAllocationReal Rate of Return Equities: Large cap domestic 32.0%5.2% Small cap domestic 10.0%5.8% Developed international 21.0%5.5% Emerging markets 6.0%5.4% Master limited partnership 5.0%7.1% Fixed income: Domestic 21.0%1.4% International 5.0%1.6% Cash 0.0%0.0% Total100.0% Discount Rate The discount rate used to measure the total pension liability was 7.75%. No projection of cash flows was used to determine the discount rate because the August 31, 2014 actuarial valuation showed that expected contributions would pay the normal cost and amortize the unfunded actuarial accrued liability (UAAL) in 30 years using the conservative level dollar amortization method. That UAAL was based on an actuarial value of assets that was $7.9 million less than the plan fiduciary net position as of August 31, 2014. Because of the 30-year amortization period with the conservative expected to be available to make all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 52 The following presents the net pension liability, calculated using the discount rate of 7.75%, as well as what the would be if it were calculated using a discount rate that is 1 percentage point lower (6.75%) or 1 percentage point higher (8.75%) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (6.75%)(7.75%)(8.75%) City's proportionate share of the net pension liability $458,634$262,121$148,880 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At September 30, 2016, the City reported a liability of $262,121 for its proportionate share of the The net pension liability was measured as of August 31, 2015 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of August 31, 2014, and rolled forward to August 31, 2015. The City he pension plan relative to contributions of all participating employers to the plan for the period September 1, 2014 through August 31, 2015. AtAugust 31, 2015 the City982% increased from 0.721% at August 31, 2014. For the year ended September 30, 2016, the City recognized TESRS pension expense of $10,053. At September 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: DeferredDeferred Outflows ofInflows of ResourcesResources Difference between projected and actual investment $-$48,148 earnings Contributions paid to TESRS subsequent to the 38,095- measurement date Total$38,095$48,148 $38,095 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, 2017. Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows: For the Year Ended September 30, $9,226 2017 9,226 2018 9,226 2019 20,469 2020 53 RISK MANAGEMENT The City is expected to various risks of loss related to torts: theft of, damage to, and destruction of sk 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. 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. 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. -time employee count. The City self- insures a portion of health insurance benefits provided to employees. For health insurance the City retains the risk for the first $165,000 of an individual claim. Excess insurance coverage is purchased to cover individual claims in excess of $165,000 with a limit of $1,000,000 per coverage period. Activities during the year for the insurance internal service fund included: Revenues Charges to divisions$4,581,529 Interfund transfers696,352 Charges to employees419,791 Charges to retirees98,395 Cobra charges17,981 Other20,258 6,737 Interest revenue $5,841,043 Total revenues Expenses Other expenses$71,547 Claims administration219,109 Claims incurred6,001,596 Re-insurance premiums382,432 727,522 Insurance premiums $7,402,206 Total expenses Liabilities of the insurance fund 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 (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as, inflation, changes in legal requirements and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-offs), and other economic and social factors. These estimate of the claims also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expense regardless of whether allocated to specific claims. 54 Changes in the balance of health insurance claims liability for three fiscal years are as follows: Beginning ofPayments forEnd of Year Year AccrualClaimsClaimsAccrual 9/30/2014480,584$$5,580,398$5,485,633575,349 9/30/2015575,3494,762,8804,898,536439,693 9/30/2016439,6936,001,5966,053,439387,850 CONTINGENCIES The City is a defendant in lawsuits. Although the outcome of the lawsuits is not presently determinable, it is the opinion resolution of these matters will not have a materially adverse effect on the financial condition of the City. 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. compliance with applicable grant requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the City anticipates such amounts, if any, will be immaterial. ENCUMBRANCES Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. While all appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re- budget pursuant to state regulations. At year-end the amount of encumbrances expected to be honored in the next year were as follows: FundAmount General$204,149 Nonmajor governmental641,162 Total$845,311 SOUTHEAST WATER PURIFICATION PLANT xas have entered into a Southeast Water Purification Plant (Southeast Plant). Under the terms of the Contract, the Authority purchased 4.2 million gallons per day production and 5.25 million gallons per day pumping capacity. The Cities 55 The required funds for the undivided interest in the Southeast Plant and the construction of a transmission and distribution system to transport water from the Southeast Plant were provided by issuance of $9.8 million revenues bonds. The water rate to be set by the Authority will not be less than an amount sufficient to provide for payment of all expenses in producing, treating, and pumping the water in connection with transmission and distribution systems and to provide payment for the interest and principal of all bonds when the bonds become due and payable. POST-EMPLOYMENT BENEFITS Plan Description. In addition to pension benefits described in Note VI, 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 the single- -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 the City Council through adoption of the annual budget. The City funds these premiums in the same manner as it funds similar premiums for current employees. Employees, who retired from the City before October 1, 1992, have 100% of their coverage paid for by the City. Employees who retired from the City in 1993 and up to December 31, 1999, with 20 or more years of service have 100% of their coverage paid for by the City. Prior to January 1, 2000, employees who have 15 years but less than 20 years of service are required to pay for 10% of the cost and employees who have 10 years but less than 15 years of service are required to pay for 20% of their costs. For employees who retire after January 1, 2000, the following applies: Retiree Cost Years of Service with the CityRetiree CostCity CostPer Year At least 10 but less than 1555%45%$3,500 At least 15 but less than 2025%75%1,500 At least 200%100%- 56 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 the retirement. The total premium cost is the total annual dollar allocated by budget as approved by City employer contributions. The cost allocation shall be as follows: Years of Service with the City Retiree 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 re 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 proceed is the same level of person becomes eligible for those benefits. Payment for dependent coverage will be at the same rate as payments for current employees. 57 Annual OPEB Costs and Net OPEB Obligation. (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 is paid on an ongoing basis, is projected to cover normal cost each year and amortize an unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. the amount actually contributed to the plan, and change Fiscal Year 201620152014 Annual required contribution (ARC)2,449,101$$2,377,768$2,566,570 Interest on OPEB obligation531,178460,579383,426 ( 492,130)( 426,722)( 355,240) Adjustment to ARC Annual OPEB cost2,488,1492,411,6252,594,756 ( 625,941)( 842,765)( 880,236) Contributions Increase in net OPEB obligation1,862,2081,568,8601,714,520 11,803,94710,235,0878,520,567 Net OPEB obligation, beginning of year $13,666,155$11,803,947$10,235,087 Net OPEB obligation, end of year employer contributions, and the percentage of annual OPEB cost contributed to the plan for fiscal years 2016,2015, and 2014 are as follows: Fiscal Employer YearAnnual OPEBAmountPercentageNet OPEB EndedCostContributedContributedObligation 9/30/20142,594,756$$880,23633.9%$10,235,087 9/30/20152,411,625842,76534.9%11,803,947 9/30/20162,488,149625,94125.2%13,666,155 Funded Status and Funding Progress. The funding status of the post-employment plan as of the most recent actuarial valuation date is as follows: Schedule of Funding Progress UnfundedRatio of ActuarialActuarialUAAL to ValuationActuarialActuarialAccruedAnnualAnnual DateValue ofAccruedLiabilityPercentageCoveredCovered December 31,AssetsLiabilities(UAAL)FundedPayrollPayroll 2014$- 30,887,738$ $ 30,887,738 20,708,593-%$ 149.2% 58 Actuarial valuations of an ongoing plan involve estimates of the value reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. A schedule of funding progress presents multi-trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The 2014 actuarial valuation is the most recent actuarial valuation available. 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, 2014, 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- investments calculated based on the funded level of the plan at the valuation date, an annual healthcare cost trend rate of 7.25 percent initially, reduced by decrements to an ultimate rate of 4.5 percent after 14 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 validity 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, 2016, was 28 years. Supplemental Death Benefits Fund The City also participates in the cost sharing multiple-employer defined benefit group term life insurance plan operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death Benefits Funds (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 -month period preceding the month of death); retired 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 2016, 2015, and 2014 were $35,433, $33,526, and $30,814, respectively, which equaled to the required contributions. 59 FUND BALANCE Assigned fund balance of the General Fund at year-end consistedof the following: Appraisal Services$4,800 Software68,144 Firearms/Ammunition12,042 GIS Web Hosting500 Hardware8,486 GIS Technical Services22,342 Professional Engineering Services4,344 Consulting Services for Community Rating System14,500 Body Worn Camera Systems38,978 Department Audit Organizational Review5,432 Conversion and Set Up Fee for Tax Billing7,000 Surveillance Systems3,237 Green Cloud Money Fee8,650 APC Meter Rock - Power Distribution1,296 Lift Inspection and Repairs898 A/C and Heating Repairs to PD Building3,500 Subsequent Year's Budget4,235,730 Total General Fund Assigned Fund Balance$4,439,879 NEW ACCOUNTING PRINCIPLES Significant new accounting standards not yet implemented by the City include the following. Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions This statement changes the focus of accounting of postemployment benefits other than pensions from whether an entity is responsible for funding the benefits over time to a point-in-time actuarially unfunded portion of benefits earned to date. This statement will become effective for the City in fiscal year 2018. Tax Abatement Disclosures This statement requires governments that enter into tax abatement agreements to provide certain disclosures regarding these commitments. This statement will become effective for the City in fiscal year 2017. 60 REQUIRED SUPPLEMENTARY INFORMATION THIS PAGE LEFT BLANK INTENTIONALLY 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, 2016 Variance with Final Budget - Budgeted AmountsPositive OriginalFinalActual(Negative) Revenues Property taxes$15,828,500$15,828,500$18,305,055$2,476,555 Sales and use taxes4,868,7504,868,7504,492,888( 375,862) Franchise fees2,195,6242,195,6242,300,464104,840 Industrial payments12,436,67212,436,67214,377,6021,940,930 Other taxes90,00090,00098,8658,865 Licenses and permits446,525446,525596,451149,926 Fines and forfeitures1,603,8231,603,8231,754,145150,322 Charges for services5,689,0035,689,0036,223,039534,036 Interest earnings80,00080,000240,462160,462 38,00038,000693,776655,776 Miscellaneous 43,276,89743,276,89749,082,7475,805,850 Total Revenues Expenditures General government: 5,351,3005,470,5945,176,940293,654 Administration 3,851,3153,682,3363,358,290324,046 Finance 2,025,1332,206,2931,844,502361,791 Planning and engineering Public safety: 4,802,4544,835,0044,782,79252,212 Fire 12,525,11912,563,89512,188,887375,008 Police Public works: 367,979367,979369,462( 1,483) Public works administration 2,590,4542,558,4542,500,33758,117 Streets Health and sanitation: 2,616,4562,666,4562,644,29522,161 Solid waste 5,787,2205,927,3645,788,937138,427 Culture and recreation 39,917,43040,278,37538,654,4421,623,933 Total Expenditures Excess (deficiency) of revenues 3,359,4672,998,52210,428,3057,429,783 over (under) expenditures Other Financing Sources (Uses) Transfers in57,50057,50057,500- ( 3,133,582)( 3,133,582)( 3,133,582)- Transfers out Total Other Financing Sources ( 3,076,082)( 3,076,082)( 3,076,082)- and Uses 283,385( 77,560)7,352,2237,429,783 Net change in fund balances 32,562,64832,562,64832,562,648- Fund balances, beginning of year $32,846,033$32,485,088$39,914,871$7,429,783 Fund balances at year end 61 CITY OF LA PORTE, TEXAS NOTES TO REQUIRED BUDGETARYINFORMATION SEPTEMBER 30, 2016 Budgetary Controls and Procedures compliance with legal provisions embodied in the annual appreciated budget approved by the 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 the last day of the fiscal year. 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 of 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 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 as a whole. The original budget is adopted by the City Council prior to the beginning of the year. Appropriations lapse at the end of the year, excluding capital project budgets. 62 CITY OF LA PORTE, TEXAS SCHEDULE OF CHANGES IN TMRS NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Plan Year20142015 A. Total pension liability Service Cost$3,045,776$3,401,691 Interest (on the Total Pension Liability)9,108,1789,564,637 Difference between expected and actual experience( 761,946)( 500,190) Changes of assumptions-( 325,022) ( 4,793,355)( 5,304,879) Benefit payments, including refunds of employee contributions Net change in total pension liability6,598,6536,836,237 130,990,617137,589,270 Total pension liability - beginning $137,589,270$144,425,507 Total pension liability - ending (a) B. Plan fiduciary net position Contributions - Employer$3,534,991$3,461,463 Contributions - Employee1,460,7681,506,158 Net Investment Income6,665,254181,954 Benefit payments, including refunds of employee contributions( 4,793,355)( 5,304,879) Administrative Expenses( 69,591)( 110,827) ( 5,722)( 5,474) Other Net change in plan fiduciary net position6,792,345( 271,605) 116,518,249123,310,594 Plan fiduciary net position - beginning $123,310,594$123,038,989 Plan fiduciary net position - ending (b) $14,278,676$21,386,518 C. Net pension liability - ending (a) - (b) D. Plan fiduciary net position as a percentage of total pension liability89.62%85.19% E. Covered employee payroll$20,708,639$21,421,227 F. Net position liability as a percentage of covered employee payroll68.95%99.84% Note: This schedule is required to have 10 years of information, but the information prior to 2014 is not available. 63 CITY OF LA PORTE, TEXAS SCHEDULE OF TMRS CONTRIBUTIONS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Fiscal Year201420152016 Actuarial determined contribution$3,496,424$3,489,185$3,551,472 Contributions in relation to the actuarially determined contribution( 3,496,424)( 3,489,185)( 3,551,472) Contribution deficiency (excess)--- Covered employee payroll 2 0,543,616 2 1,323,383 2 1,421,227 Contributions as a percentage of covered employee payroll17.02%16.36%16.58% Note: This schedule is required to have 10 years of information, but the information prior to 2014 is not available. NOTES TO SCHEDULE OF CONTRIBUTIONS Valuation Date:ActuariallydeterminedcontributionratesarecalculatedasofDecember31and become effective in January 13 months later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost MethodEntry Age Normal Amortization MethodLevel Percentage of Payroll, Closed Remaining Amortization Period18 years Asset Valuation Method10 Year smoothed market; 15% soft corridor Inflation2.50% Salary Increases3.50% to 10.50% including inflation Investment Rate of Return6.75% Retirement AgeExperience-basedtableofratesthatarespecifictotheCity'splanofbenefits.Last updatedforthe2015valuationpursuanttoanexperiencestudyoftheperiod2010- 2014. MortalityRP2000CombinedMortalityTablewithBlueCollarAdjustmentwithmalerates multipliedby109%andfemaleratesmultipliedby103%andprojectedonafully generational basis of with scale BB. Other InformationThere were no benefit changes during the year. Note: These schedules are required to have 10 years of information, but the information prior to 2014 is not available. 64 CITY OF LA PORTE, TEXAS SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE TESRS NET PENSION LIABILITY FOR THE YEAR ENDED SEPTEMBER 30, 2016 Plan Year20142015 City's proportion of the net pension liability0.721%0.982% City's proportionate share of the net pension liability$131,018$262,121 City's covered-employee payroll18,42018,617 City's proportionate share of the net pension liability as a percentage of its covered-employee payroll711%1408% Plan fiduciary net position as a percentage of the total pension liability83.5%83.5% SCHEDULE OF CITY'S TESRS CONTRIBUTIONS Fiscal Year201420152016 Contractually required contribution$26,055$48,820$38,095 Contributions in relation to the contractually required contribution( 26,055)( 48,820)( 38,095) Contribution deficiency (excess)--- City's covered-employee payroll18,42018,61715,498 Contribution as a percentage of covered-employee payroll141.4%262.2%245.8% Note: This schedule is required to have 10 years of information, but the information prior to 2014 is not available. 65 CITY OF LA PORTE, TEXAS SCHEDULE OF FUNDING PROGRESS OTHER POST EMPLOYMENT BENEFITS PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2016 UnfundedRatio of ActuarialActuarialUAAL to ValuationActuarialActuarialAccruedAnnualAnnual DateValue ofAccruedLiabilityPercentageCoveredCovered December 31,AssetsLiabilities(UAAL)FundedPayrollPayroll 2010$-$29,639,065$29,639,065-%$19,816,947149.6% 2012-32,167,40732,167,407-%19,908,162161.6% 2014-30,887,73830,887,738-%20,708,593149.2% 66 COMBINING AND INDIVIDUAL STATEMENTS AND SCHEDULES THIS PAGE LEFT BLANK INTENTIONALLY 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 FundThis 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 s). 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 to pay developers for capital improvements. 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. Restricted Funds This fund is used to account for funds received from another government or organization to be used for the specific purpose activity or facility. 2006 Certificate of Obligation Bonds Fund This fund is used to account for the proceeds and expenditures related to the Police Facility, a Sports Complex (Joint Venture), South La Porte Trunk Sewer and various other Water/Sewer projects. 2010 Certificates of Obligation Bond Fund This fund is used to account for the proceeds and expenditures related to street, drainage and park improvements. 2015 Certificate of Obligation Bonds Fund This fund is used to account for bond proceeds and the expenditure of those funds for water and sewer improvements, and street and drainage improvements. Capital Improvements This fund is used to account for projects that are generally small in nature and affect the general operation of the City. Drainage Improvements This fund is used to account for the proceeds and expenditures related to the drainage fees collected. CITY OF LA PORTE, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Special Revenue Funds Tax Increment Hotel/MotelSection 4bReinvestment TaxSales TaxZone Assets Cash and cash equivalents$694,484$4,101,157$544,563 Investments282,2621,226,349- Receivables, net of allowance134,634394,690- --- Due from other governments 1,111,3805,722,196544,563 Total Assets Liabilities Accounts payable3,1306,3354,335 Accrued salaries262201- Other payables--- --- Unearned revenue 3,3926,5364,335 Total Liabilities Fund balances Restricted Debt service-1,083,817- Economic development1,107,9884,631,843- Senior citizen programs--- Replacement of trees--- Municipal court building and technology--- Park improvements--- Public safety--- Capital projects--540,228 --- Public works 1,107,9885,715,660540,228 Total Fund Balances $1,111,380$5,722,196$544,563 Total Liabilities and Fund Balances 67 Special Revenue Funds StreetEmergency MaintenanceService SalesTotal Special Sales TaxTaxRevenue Funds $1,509,198$585,034$7,434,436 613,389237,7772,359,777 197,346191,847918,517 --- 2,319,9331,014,65810,712,730 162,59458,608235,002 -1,7782,241 --- --- 162,59460,386237,243 --1,083,817 --5,739,831 --- --- --- --- -954,272954,272 --540,228 2,157,339-2,157,339 2,157,339954,27210,475,487 $2,319,933$1,014,658$10,712,730 68 CITY OF LA PORTE, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Capital Projects Funds 2006 Certificate2010 Certificate2015 Certificate Restrictedof Obligationof Obligationof Obligation FundsBondsBondsBonds Assets Cash and cash equivalents$1,337,175$400,443$1,159,093$5,920,186 Investments543,612162,75319,961161,620 Receivables, net of allowance1,32839649393 396,310--- Due from other governments 2,278,425563,5921,179,1036,082,199 Total Assets Liabilities: Accounts payable23,015-1,65649,141 Accrued salaries payable1,054--- Other payables1,500--- 2,704--- Unearned revenue - grants 28,273-1,65649,141 Total Liabilities Fund Balances: Restricted: Debt service-532,813-- Economic development---- Senior citizen programs10,543--- Replacement of trees623,265--- Municipal court building- and technology393,458--- Park improvements423,455--- Public safety799,431--- Capital projects-30,7791,177,4476,033,058 Public works---- Committed: ---- Capital projects 2,250,152563,5921,177,4476,033,058 Total Fund Balances $2,278,425$563,592$1,179,103$6,082,199 Total Liabilities and Fund Balances 69 Capital Projects Funds Total Nonmajor CapitalDrainageTotal CapitalGovernmental ImprovementsImprovementsFunds $2,129,505$651,939$11,598,341$19,032,777 865,503264,9712,018,4204,378,197 2,19615,37819,740938,257 --396,310396,310 2,997,204932,28814,032,81124,745,541 19,528112,091205,431440,433 --1,0543,295 --1,5001,500 --2,7042,704 19,528112,091210,689447,932 --532,8131,616,630 ---5,739,831 --10,54310,543 --623,265623,265 --393,458393,458 --423,455423,455 --799,4311,753,703 -820,1978,061,4818,601,709 ---2,157,339 2,977,676-2,977,6762,977,676 2,977,676820,19713,822,12224,297,609 $2,997,204$932,288$14,032,811$24,745,541 70 CITY OF LA PORTE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Special Revenue Funds Tax Increment Hotel/MotelSection 4bReinvestment TaxSales TaxZone Revenues Property taxes$-$-$2,216,993 Sales and use taxes-2,246,441- Other taxes809,601-- Fines and forfeitures--- Charges for services--- Intergovernmental--- Investment earnings5,55621,316419 5,568-- Miscellaneous 820,7252,267,7572,217,412 Total Revenues Expenditures Current: General government580,660415,846154,344 Public safety--- Public works--- Culture and recreation--- Debt Service: Principal--1,236,085 Interest and other charges--294,224 --- Capital outlay 580,660415,8461,684,653 Total Expenditures Excess (deficiency) of revenues over (under) expenditures240,0651,851,911532,759 Other Financing Sources (Uses) ( 165,169)( 680,668)- Transfers out ( 165,169)( 680,668)- Total Other Financing Sources (Uses) Net change in fund balances74,8961,171,243532,759 1,033,0924,544,4177,469 Fund balances - beginning $1,107,988$5,715,660$540,228 Fund balances - ending 71 Special Revenue Funds StreetEmergency MaintenanceServices SalesTotal Special Sale TaxTaxRevenue Funds $-$-$2,216,993 1,123,2201,091,6904,461,351 --809,601 --- --- --- 12,7244,70644,721 --5,568 1,135,9441,096,3967,538,234 --1,150,850 -1,038,7491,038,749 101,462-101,462 --- --1,236,085 --294,224 931,304103,5381,034,842 1,032,7661,142,2874,856,212 103,178( 45,891)2,682,022 --( 845,837) --( 845,837) 103,178( 45,891)1,836,185 2,054,1611,000,1638,639,302 $2,157,339$954,272$10,475,487 72 CITY OF LA PORTE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Capital Projects Fund 2006 Certificate2010 Certificate2015 Certificate Restrictedof Obligationof Obligationof Obligation FundsBondsBondsBonds Revenues Sales and use taxes$-$-$-$- Other taxes---- Fines and forfeitures241,928--- Charges for services52,453--- Intergovernmental1,024,097--- Interest earnings11,7271,4854,25022,986 -29,046-- Miscellaneous 1,330,20530,5314,25022,986 Total Revenues Expenditures Current: General government38,292--- Public safety313,259--- Public works34,203--- Culture and recreation59,676--- Debt Service: Principal ---- Interest and other charges ---- 566,692-176,4601,989,928 Capital outlay 1,012,122-176,4601,989,928 Total Expenditures Excess (deficiency) of revenues over (under) expenditures318,08330,531( 172,210)( 1,966,942) Other Financing Sources (Uses) Transfers in---- ---- Transfers out ---- Total Other Financing Sources (Uses) Net change in fund balances318,08330,531( 172,210)( 1,966,942) 1,932,069533,0611,349,6578,000,000 Fund balances - beginning $2,250,152$563,592$1,177,447$6,033,058 Fund balances - ending 73 Capital Projects Fund Total Nonmajor CapitalDrainageTotal CapitalGovernmental ImprovementsImprovementsProjects FundFunds $-$-$-$4,461,351 ---809,601 --241,928241,928 4,249275,487332,189332,189 --1,024,0971,024,097 14,5114,86659,825104,546 --29,04634,614 18,760280,3531,687,0859,225,319 137,173-175,4651,326,315 --313,2591,352,008 -23,48957,692159,154 --59,67659,676 ---1,236,085 ---294,224 428,188243,2093,404,4774,439,319 565,361266,6984,010,5698,866,781 ( 546,601)13,655( 2,323,484)358,538 1,607,669-1,607,6691,607,669 ---( 845,837) 1,607,669-1,607,669761,832 1,061,06813,655( 715,815)1,120,370 1,916,608806,54214,537,93723,177,239 $2,977,676$820,197$13,822,122$24,297,609 74 CITY OF LA PORTE, TEXAS DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActual(Negative)2015 Revenues Property taxes$2,732,500$3,313,400$580,900$2,897,713 2,0004,5422,5423,363 Investment earnings 2,734,5003,317,942583,4422,901,076 Total Revenues Expenditures Debt Service: Principal3,045,0003,045,000-3,275,000 1,156,8511,156,851-1,083,722 Interest and other charges 4,201,8514,201,851-4,358,722 Total Expenditures Revenues over (under) expenditures( 1,467,351)( 883,909)583,442( 1,457,646) Other Financing Sources (Uses) Issuance of debt-3,165,0003,165,000- Premium on bonds-403,795403,795- Payment to escrow agent-( 3,490,716)( 3,490,716)- 1,185,9551,185,955-1,849,476 Transfers in 1,185,9551,264,03478,0791,849,476 Total Other Financing Sources (Uses) Net change in fund balance( 281,396)380,125661,521391,830 3,160,7533,160,753-2,768,922 Fund balances - beginning of year $2,879,357$3,540,878$661,521$3,160,752 Fund balances - end of year 75 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, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActual(Negative)2015 Revenues Other taxes$650,000$809,601$159,601$701,619 Investment earnings1,5005,5564,0563,467 -5,5685,5689,224 Miscellaneous 651,500820,725169,225714,310 Total Revenues Expenditures Current: 733,196580,660152,536553,410 General government 733,196580,660152,536553,410 Total Expenditures Revenues over (under) expenditures( 81,696)240,065321,761160,900 Other Financing Sources (Uses) Transfers in---2,550 ( 57,500)( 165,169)( 107,669)( 232,500) Transfers out ( 57,500)( 165,169)( 107,669)( 229,950) Total Other Financing Sources (Uses) Net change in fund balance( 139,196)74,896214,092( 69,050) 1,033,0921,033,092-1,102,142 Fund balances - beginning of year $893,896$1,107,988$214,092$1,033,092 Fund balances - end of year 76 CITY OF LA PORTE, TEXAS SPECIAL REVENUE FUND - SECTION 4B SALES TAX SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActual(Negative)2015 Revenues Sales and use tax$2,434,375$2,246,441$( 187,934)$2,489,310 4,50021,31616,81610,131 Investment earnings 2,438,8752,267,757( 171,118)2,499,441 Total Revenues Expenditures Current: 373,806415,846( 42,040)359,596 General government 373,806415,846( 42,040)359,596 Total Expenditures Revenues over (under) expenditures2,065,0691,851,911( 213,158)2,139,845 Other Financing Sources (Uses) Transfers in ---175,000 ( 788,337)( 680,668)107,669( 1,083,817) Transfers out ( 788,337)( 680,668)107,669( 908,817) Total Other Financing Sources (Uses) Net change in fund balance1,276,7321,171,243( 105,489)1,231,028 4,544,4174,544,417-3,313,389 Fund balances - beginning of year $5,821,149$5,715,660$( 105,489)$4,544,417 Fund balances - end of year 77 CITY OF LA PORTE, TEXAS SPECIAL REVENUE FUND - TAX INCREMENT REINVESTMENT ZONE SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActual(Negative)2015 Revenues Property taxes$2,499,031$2,216,993$( 282,038)$1,848,694 300419119351 Investment earnings 2,499,3312,217,412( 281,919)1,849,045 Total Revenues Expenditures Current: General government599,155154,344444,811119,784 Debt Service: Principal1,236,0851,236,085-1,350,582 679,716294,224385,492370,420 Interest and other charges 2,514,9561,684,653830,3031,840,786 Total Expenditures Net change in fund balance( 15,625)532,759548,3848,259 7,4697,469-( 790) Fund balances - beginning of year $( 8,156)$540,228$548,384$7,469 Fund balances - end of year 78 CITY OF LA PORTE, TEXAS SPECIAL REVENUE FUND - STREET MAINTENANCE SALES TAX FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActualNegative2015 Revenues Sales and use tax$1,217,188$1,123,220$( 93,968)$1,244,654 2,00012,72410,7246,300 Investment earnings 1,219,1881,135,944( 83,244)1,250,954 Total Revenues Expenditures Current: Public works310,221101,462208,75932,876 1,584,779931,304653,475949,097 Capital outlay 1,895,0001,032,766862,234981,973 Total Expenditures Net change in fund balance( 675,812)103,178778,990268,981 2,054,1612,054,161-1,785,180 Fund balances - beginning of year $1,378,349$2,157,339$778,990$2,054,161 Fund balances - end of year 79 CITY OF LA PORTE, TEXAS SPECIAL REVENUE FUND - EMERGENCY SERVICES SALES TAX FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActual(Negative)2015 Revenues Sales and use tax$1,217,188$1,091,690$( 125,498)$1,233,330 8004,7063,9061,459 Investment earnings 1,217,9881,096,396( 121,592)1,234,789 Total Revenues Expenditures Current: Public safety1,005,3331,038,749( 33,416)849,163 457,726103,538354,188102,443 Capital outlay 1,463,0591,142,287320,772951,606 Total Expenditures Net change in fund balance( 245,071)( 45,891)199,180283,183 1,000,1631,000,163-716,980 Fund balance - beginning of year $755,092$954,272$199,180$1,000,163 Fund balance - end of year 80 CITY OF LA PORTE, TEXAS CAPITAL PROJECTS FUND - RESTRICTED FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActual(Negative)2015 Revenues Fines and forfeitures$108,000$241,928$133,928$193,939 Charges for services4,00052,45348,453710,354 Intergovernmental531,5931,024,097492,5043,195,238 Investment earnings-11,72711,7275,208 850-( 850)29,532 Miscellaneous 644,4431,330,205685,7624,134,271 Total Revenues Expenditures Current: General government147,72038,292109,42842,985 Public safety371,229313,25957,970444,484 Public works15,00034,203( 19,203)26,903 Culture and recreation53,07959,676( 6,597)64,040 761,162566,692194,4703,048,686 Capital outlay 1,348,1901,012,122336,0683,627,098 Total Expenditures Net change in fund balance( 703,747)318,0831,021,830507,173 1,932,0691,932,069-1,424,896 Fund balance - beginning of year $1,228,322$2,250,152$1,021,830$1,932,069 Fund balance - end of year 81 CITY OF LA PORTE, TEXAS CAPITAL PROJECTS FUND - 2006 CERTIFICATE OF OBLIGATION BONDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActual(Negative)2015 Revenues Investment earnings$-$1,485$1,485$144 -29,04629,046120,813 Miscellaneous -30,53130,531120,957 Total Revenues Other Financing Sources (Uses) ---( 250,000) Transfers out ---( 250,000) Total Other Financing Sources (Uses) Net change in fund balance-30,53130,531( 129,043) 533,061533,061-662,104 Fund balances - beginning of year $533,061$563,592$30,531$533,061 Fund balances - end of year 82 CITY OF LA PORTE, TEXAS CAPITAL PROJECTS FUND - 2010 CERTIFICATE OF OBLIGATION BONDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActual(Negative)2015 Revenues $-$4,250$4,250$922 Interest -4,2504,250922 Total Revenues Expenditures 259,814176,46083,354364,521 Capital outlay 259,814176,46083,354364,521 Total Expenditures Net change in fund balance ( 259,814)( 172,210)87,604( 363,599) 1,349,6571,349,657-1,713,256 Fund balances - beginning of year $1,089,843$1,177,447$87,604$1,349,657 Fund balances - end of year 83 CITY OF LA PORTE, TEXAS CAPITAL PROJECTS FUND - 2015 CERTIFICATE OF OBLIGATION BONDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActual(Negative)2015 Revenues $-$22,986$22,986$- Interest -22,98622,986- Total Revenues Expenditures Capital outlay 259,8141,989,928( 1,730,114)- ---135,502 Debt service-bond cost 259,8141,989,928( 1,730,114)135,502 Total Expenditures Revenues over (under) expenditures( 259,814)( 1,989,928)( 1,730,114)( 135,502) Other Financing Sources (Uses) Issuance of debt---7,770,000 ---365,502 Premium on bonds ---8,135,502 Total Other Financing Sources (Uses) Net change in fund balance ( 259,814)( 1,989,928)( 1,730,114)8,000,000 8,000,0008,000,000-- Fund balances - beginning of year $7,740,186$6,010,072$( 1,730,114)$8,000,000 Fund balances - end of year 84 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, 2016 With comparative actual totals for the year ended September 30, 2015 2016 Variance Positive/ Final BudgetActual(Negative)2015 Revenues Charges for services $270,000$275,487$5,487$269,910 1,0004,8663,8662,654 Investment earnings 271,000280,3539,353272,564 Total Revenues Expenditures Current: Public works 143,83023,489120,34112,365 331,270243,20988,061143,851 Capital outlay 475,100266,698208,402156,216 Total Expenditures Net change in fund balance ( 204,100)13,655217,755116,348 806,542806,542-690,194 Fund balances - beginning of year $602,442$820,197$217,755$806,542 Fund balances - end of year 85 CITY OF LA PORTE, TEXAS GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 Variance with Final Budget Budgeted Amounts ActualPositive OriginalFinalAmounts(Negative) Taxes: Ad valorem: Current $15,600,000$15,600,000$17,927,697$2,327,697 Delinquent 68,00068,000138,80170,801 12,436,67212,436,67214,377,6021,940,930 Industrial payments 28,104,67228,104,67232,444,1004,339,428 Total ad valorem 160,500160,500238,55778,057 Penalty and interest 4,868,7504,868,7504,492,888( 375,862) Sales Taxes 90,00090,00098,8658,865 Other Taxes Franchise Fees: Electrical 1,270,6241,270,6241,326,71956,095 Gas 150,000150,000111,759( 38,241) Telephone 300,000300,000279,835( 20,165) Cable 385,000385,000494,400109,400 90,00090,00087,751( 2,249) Commercial solid waste 2,195,6242,195,6242,300,464104,840 Total Franchise Fees Charges for Services: Public safety services fees 633,123633,123842,666209,543 Health and sanitation service fees 3,075,5003,075,5003,243,488167,988 Culture and recreation fees 1,437,9851,437,9851,569,645131,660 542,395542,395567,24024,845 Other services fees 5,689,0035,689,0036,223,039534,036 Total Charges for Services Licenses and Permits: Buildings permits 413,025413,025561,533148,508 33,50033,50034,9181,418 Licenses 446,525446,525596,451149,926 Total Licenses and Permits 80,00080,000240,462160,462 Investment Income 1,603,8231,603,8231,754,145150,322 Fines and Forfeitures 38,00038,000693,776655,776 Miscellaneous $43,276,897$43,276,897$49,082,747$5,805,850 Total General Fund Revenues 86 CITY OF LA PORTE, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 Variance with Final Budget Budgeted Amounts ActualPositive OriginalFinalAmounts(Negative) General Government Administration: Emergency Management: Personnel services $212,793$212,793$215,801$( 3,008) Supplies 7,5747,5745,4002,174 90,49290,67282,8707,802 Other services and charges 310,859311,039304,0716,968 Total Emergency Management General Administration: Personnel services 449,201449,201466,320( 17,119) Supplies 3,1003,1002,113987 25,98760,86738,97121,896 Other services and charges 478,288513,168507,4045,764 Total General Administration Community Investment: Supplies 27,65027,65027,822( 172) 126,000126,00095,94530,055 Other services and charges 153,650153,650123,76729,883 Total Community Investment Human Resources: Personnel services 271,878271,878268,7233,155 Supplies 3,2003,2002,0451,155 196,836196,836178,74518,091 Other services and charges 471,914471,914449,51322,401 Total Human Resources Information Technology: Personnel services 644,587644,587637,2717,316 Supplies 157,506182,682108,40974,273 1,331,1061,382,2891,263,886118,403 Other services and charges 2,133,1992,209,5582,009,566199,992 Total Information Technology Municipal Court: Personnel services 691,019691,019726,976( 35,957) Supplies and materials 19,75019,39015,6933,697 130,388131,69391,22940,464 Other services and charges 841,157842,102833,8988,204 Total Municipal Court Purchasing: Personnel services 239,130239,130239,960( 830) Supplies 1,4001,4001,255145 11,50111,5017,2084,293 Other services and charges 252,031252,031248,4233,608 Total Purchasing 87 CITY OF LA PORTE, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 Variance with Final Budget Budgeted Amounts ActualPositive OriginalFinalAmounts(Negative) City Secretary: Personnel services $361,088$355,702$364,735$( 9,033) Supplies and materials 15,80015,80014,2251,575 70,89982,13571,81110,324 Other services and charges 447,787453,637450,7712,866 Total City Secretary Legal: Personnel services 13,24513,24513,245- 186,600187,680178,0289,652 Other services and charges 199,845200,925191,2739,652 Total Legal City Council: Personnel services 37,46137,46137,462( 1) Supplies and materials 1,5001,5003681,132 23,60923,60920,4243,185 Other services and charges 62,57062,57058,2544,316 Total City Council 5,351,3005,470,5945,176,940293,654 Total Administration Finance Accounting: Personnel services 743,017743,017766,991( 23,974) Supplies 11,40011,4008,5952,805 97,72797,72797,555172 Other services and charges 852,144852,144873,141( 20,997) Total Accounting Nondepartmental: Personnel services 801,650801,650872,747( 71,097) Supplies 5,3005,3005,145155 1,720,6801,551,7011,127,172424,529 Other services and charges 2,527,6302,358,6512,005,064353,587 Total Nondepartmental Tax Office: Personnel services 219,536219,536204,83414,702 Supplies and materials 11,27511,27510,462813 240,730240,730264,789( 24,059) Other services and charges 471,541471,541480,085( 8,544) Total Tax Office 3,851,3153,682,3363,358,290324,046 Total Finance 88 CITY OF LA PORTE, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 Variance with Final Budget Budgeted Amounts ActualPositive OriginalFinalAmounts(Negative) Planning and Engineering Planning and Engineering: Personnel services $896,628$872,688$656,411$216,277 Supplies 16,39716,39711,7274,670 161,847216,857156,02460,833 Other services and charges 1,074,8721,105,942824,162281,780 Total Planning and Engineering Inspection: Personnel services 782,619781,419731,81149,608 Supplies 21,78921,83925,135( 3,296) 145,853297,093263,39433,699 Other services and charges 950,2611,100,3511,020,34080,011 Total Inspection 2,025,1332,206,2931,844,502361,791 Total Planning and Engineering 11,227,74811,359,22310,379,732979,491 Total General Government Public Safety Fire Fire Prevention: Personnel services 317,399317,399325,818( 8,419) Supplies 8,1188,1186,4571,661 14,99014,99012,6522,338 Other services and charges 340,507340,507344,927( 4,420) Total Fire Prevention Fire Suppression: Personnel services 1,479,0151,479,0151,511,846( 32,831) Supplies 34,17158,17849,7268,452 244,994244,994247,659( 2,665) Other services and charges 1,758,1801,782,1871,809,231( 27,044) Total Fire Suppression Emergency Medical Services: Personnel services 2,407,0812,407,0812,284,720122,361 Supplies 149,722155,058158,296( 3,238) Other services and charges 146,964150,171138,91811,253 -46,70046,700- 2,703,7672,712,3102,628,63483,676 Total Emergency Services 4,802,4544,835,0044,782,79252,212 Total Fire 89 CITY OF LA PORTE, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 Variance with Final Budget Budgeted Amounts ActualPositive OriginalFinalAmounts(Negative) Police Police Administration: Personnel services $699,034$699,034$723,995$( 24,961) Supplies 18,29218,29216,1442,148 Other services and charges 246,691295,498302,499( 7,001) 65,13728,83024,1804,650 Capital outlay 964,0171,012,8241,066,818( 53,994) Total Police Administration Police Patrol: Personnel services 5,103,6645,103,6645,062,95040,714 Supplies 222,019228,581187,39441,187 Other services and charges 930,710961,022950,70110,321 138,875104,04635,83968,207 Capital outlay 6,395,2686,397,3136,236,884160,429 Total Police Patrol Criminal Investigation: Personnel services 2,072,7172,072,7171,969,547103,170 Supplies 58,33558,33544,51913,816 186,293186,293165,72920,564 Other services and charges 2,317,3452,317,3452,179,795137,550 Total Criminal Investigation Support Services: Personnel services 2,561,3542,561,3542,444,550116,804 Supplies 101,87889,37868,62720,751 Other services and charges 185,257185,681183,9341,747 -8,3008,27921 Capital outlay 2,848,4892,836,4132,705,390131,023 Total Support Services 12,525,11912,563,89512,188,887375,008 Total Police 17,327,57317,398,89916,971,679427,220 Total Public Safety Public Works Public Works Administration: Personnel services 318,447309,375314,373( 4,998) Supplies and materials 8,9348,2187,789429 40,59850,38647,3003,086 Other services and charges 367,979367,979369,462( 1,483) Total Public Works Administration 90 CITY OF LA PORTE, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 Variance with Final Budget Budgeted Amounts ActualPositive OriginalFinalAmounts(Negative) Streets: Personnel services $1,605,845$1,575,845$1,571,244$4,601 Supplies 176,439164,197138,64825,549 808,170818,412790,44527,967 Other services and charges 2,590,4542,558,4542,500,33758,117 Total Streets 2,958,4332,926,4332,869,79956,634 Total Public Works Health and Sanitation Residential Solid Waste: Personnel services 1,248,3731,188,3731,202,052( 13,679) Supplies 276,600274,181229,11545,066 1,091,4831,203,9021,213,128( 9,226) Other services and charges 2,616,4562,666,4562,644,29522,161 Total Residential Solid Waste 2,616,4562,666,4562,644,29522,161 Total Health and Sanitation Culture & Recreation Park Maintenance: Personnel services 1,311,3331,311,3331,372,683( 61,350) Supplies and materials 124,418124,418124,32098 Other services and charges 905,105997,9881,031,872( 33,884) 70,93342,09237,3734,719 Capital outlay 2,411,7892,475,8312,566,248( 90,417) Total Park Maintenance Recreation: Personnel services 466,204743,954589,723154,231 Supplies 45,11553,11571,594( 18,479) Other services and charges 270,45840,45845,932( 5,474) 25,15425,15424,881273 Capital outlay 781,777837,527732,130105,397 Total Recreation Special Services: Personnel services 386,333386,333345,98840,345 Supplies 20,46220,46218,8061,656 60,86560,86557,5693,296 Other services and charges 467,660467,660422,36345,297 Total Special Services 91 CITY OF LA PORTE, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016 Variance with Final Budget Budgeted Amounts ActualPositive OriginalFinalAmounts(Negative) Parks Administration: Personnel services $564,735$564,735$519,841$44,894 Supplies 8,0008,0007,054946 26,43426,43423,9892,445 Other services and charges 599,169599,169550,88448,285 Total Parks Administration Golf Course - Club House: Personnel services 442,697442,697438,9933,704 Supplies 63,39063,39061,3152,075 67,71088,06267,98320,079 Other charges and services 573,797594,149568,29125,858 Total Golf Course - Club House Golf Course - Maintenance: Personnel services 628,678628,678631,778( 3,100) Supplies 151,050151,050122,94428,106 Other charges and services 173,300173,300165,4247,876 31,00031,00028,8752,125 Capital outlay 953,028953,028949,0214,007 Total Golf Course - Maintenance 5,787,2205,927,3645,788,937138,427 Total Culture & Recreation $39,917,430$40,278,375$38,654,442$1,623,933 Total General Fund Expenditures 92 CITY OF LA PORTE, TEXAS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2016 VehicleEmployee ReplacementHealth FundInsuranceTechnologyTotal Assets Current Assets: Cash and cash equivalents $1,818,725$497,550$1,182,712$3,498,987 Investments 783,939202,221480,6941,466,854 Due from other governments -119,927-119,927 Other receivables 1,9063,6581,1696,733 33,822--33,822 Inventories 2,638,392823,3561,664,5755,126,323 Total Current Assets Non-Current Assets: Capital Assets: Land and improvements --147,765147,765 Equipment and furniture 17,620,854-395,12918,015,983 ( 8,649,188)-( 178,701)( 8,827,889) Less accumulated depreciation 8,971,666-364,1939,335,859 Total Non-Current Assets 11,610,058823,3562,028,76814,462,182 Total Assets Liabilities Current Liabilities: Accounts payable 22,703460106,451129,614 Accrued liabilities 11,629--11,629 Unearned revenue -3,211-3,211 -387,850-387,850 Claims and judgements 34,332391,521106,451532,304 Total Current Liabilities Non-Current Liabilities: 42,622--42,622 Compensated absences 42,622--42,622 Total Non-Current Liabilities 76,954391,521106,451574,926 Total Liabilities Net Position Investment in capital assets 8,971,666-364,1939,335,859 2,561,438431,8351,558,1244,551,397 Unrestricted $11,533,104$431,835$1,922,317$13,887,256 Total Net Position 93 CITY OF LA PORTE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICES FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 VehicleEmployee ReplacementHealth FundInsuranceTechnologyTotal Revenues $3,073,289$5,137,954$518,078$8,729,321 Charges for services 3,073,2895,137,954518,0788,729,321 Total Operating Revenues Operating Expenses Personnel services 730,752--730,752 Supplies and materials 286,941-129,986416,927 Other expenses 142,6027,402,206-7,544,808 1,346,020-41,0131,387,033 Depreciation 2,506,3157,402,206170,99910,079,520 Total Operating Expenses Operating income (loss) 566,974( 2,264,252)347,079( 1,350,199) Non-Operating Revenues Earnings on investments 15,0696,7378,91130,717 83,682--83,682 Gain on disposal of capital assets 98,7516,7378,911114,399 Total Non-Operating Revenues Income (loss) before transfers 665,725( 2,257,515)355,990( 1,235,800) Capital contributions 248,302--248,302 Transfers in -696,352-696,352 ( 13,236)--( 13,236) Transfers out Change in net position 900,791( 1,561,163)355,990( 304,382) 10,632,3131,992,9981,566,32714,191,638 Total net position - beginning $11,533,104$431,835$1,922,317$13,887,256 Total net position - ending 94 CITY OF LA PORTE, TEXAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 VehicleEmployee ReplacementHealth FundInsuranceTechnologyTotal Cash Flows from Operating Activities Receipts from customers and users$3,073,289$5,140,629$518,078$8,731,996 Disbursed for personnel services( 758,135)( 51,843)-( 809,978) Disbursed for goods and services( 528,493)( 7,408,488)( 39,945)( 7,976,926) Net Cash Provided (Used) by Operating Activities1,786,661( 2,319,702)478,133( 54,908) Cash Flows from Non-Capital Financing Activities Transfers from other funds-696,352-696,352 Transfers to other funds( 13,236)--( 13,236) Net Cash Provided (Used) by Non-Capital Financing Activities( 13,236)696,352-683,116 Cash Flows from Capital and Related Financing Activities Proceeds from the sale of equipment83,682--83,682 Acquisition and construction of capital assets, net of disposals( 2,077,410)-( 256,933)( 2,334,343) Net Cash Used by Capital and Related Financing Activities( 1,993,728)-( 256,933)( 2,250,661) Cash Flows from Investing Activities Purchase of investments( 940,339)( 242,565)( 576,595)( 1,759,499) Sale of investments1,005,855741,708529,5892,277,152 Interest received14,4294,6558,38527,469 Net Cash Provided (Used) by Investing Activities79,945503,798( 38,621)545,122 Net increase in cash and equivalents( 140,358)( 1,119,552)182,579( 1,077,331) Cash and cash equivalents - beginning of year1,959,0831,617,1021,000,1334,576,318 Cash and cash equivalents - end of year$1,818,725$497,550$1,182,712$3,498,987 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income (loss)$566,974$( 2,264,252)$347,079$( 1,350,199) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation1,346,020-41,0131,387,033 Increase (decrease) in claims and judgments payable-( 51,843)-( 51,843) Increase (decrease) in accounts payable( 98,950)( 6,282)90,041( 15,191) Increase (decrease) in accrued liabilities( 18,322)--( 18,322) Increase (decrease) in compensated absences( 9,061)--( 9,061) Increase (decrease) in unearned revenue-2,675-2,675 Net Cash Provided by Operating Activities$1,786,661$( 2,319,702)$478,133$( 54,908) Noncash investing, capital, and financing activities: $248,302$-$-$248,302 Contributions of capital assets 95 STATISTICAL SECTION THIS PAGE LEFT BLANK INTENTIONALLY STATISTICAL SECTION (Unaudited) This portion of the City of La Porte years of data to provide a historical perspective for understanding the information available in the financial statements, note disclosures, and required supplementary information and for assessing the Contents Page Financial Trends 96 These schedules contain trend information to help the reader -being have changed over time. Revenue Capacity 106 These schedules contain trend information to help the reader assess . Debt Capacity 111 These schedules contain trend information to help the reader assess Economic and Demographic Indicators 115 These schedules contain economic and demographic information to help the reader understand the environment within which the Operating Information 118 These schedules contain service and infrastructure data to help the reader understand how the information in the financial report relates to the services and activities performed by the City. CITY OF LA PORTE, TEXAS NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (Amounts in thousands) (Accrual Basis of Accounting) Fiscal Year 2007200820092010 Governmental Activities Net investment in capital assets$27,529$24,923$32,667$35,195 Restricted13,31716,56716,17018,108 19,98618,98516,83813,904 Unrestricted 60,83260,47565,67567,207 Total Governmental Activities Net Position Business-Type Activities Net investment in capital assets29,48135,48340,20640,595 Restricted2,1852,1881,3531,460 3,2963,7992,4732,027 Unrestricted 34,96241,47044,03244,082 Total Business-Type Activities Net Position Primary Government Net investment in capital assets57,01060,40672,87475,790 Restricted15,50118,75517,52319,568 23,28122,78519,31115,932 Unrestricted $95,792$101,946$109,708$111,290 Total Primary Government Net Position 96 TABLE 1 Fiscal Year 201120122013201420152016 $37,324$46,814$49,304$54,506$43,583$48,367 8,0608,7288,90211,08814,50817,855 26,85921,62122,53018,63521,69323,690 72,24377,16380,73684,22979,78489,912 37,60637,56736,34735,87334,80834,292 6805592,0961,9311,251846 4,1993,7912,3012,6694,1115,344 42,48541,91740,74440,47340,17040,482 74,93084,38185,65190,37978,39082,659 8,7409,28710,99813,01915,75818,701 31,05825,41224,83121,30425,80429,034 $114,728$119,080$121,480$124,702$119,952$130,394 97 CITY OF LA PORTE, TEXAS CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Amounts in thousands) (Accrual Basis of Accounting) Fiscal Year 2007200820092010 Expenses Governmental Activities: General government$8,411$10,056$11,443$11,497 Public safety12,15316,26715,49517,109 Public works3,6684,3488,0954,601 Health, welfare and sanitation2,4882,4652,3792,521 Culture and recreation3,1204,0044,2236,483 1,3531,6951,5271,557 Interest on long-term debt 31,19338,83543,16243,768 Total Governmental Activities Expenses Business-Type Activities: Water services6,5486,6314,8335,721 Sewer services2,0872,2472,6032,674 Airport124156183181 Bay Forest Golf Course 1,3111,3621,4371,485 21822526- Sylvan Beach Convention Center 10,28810,6219,08210,061 Total Business-Type Activities Expenses 41,48149,45652,24453,829 Total Primary Government Expenses Program Revenue Governmental Activities: Charges for services General government2,0072,7253,0613,116 Public safety4355911,6811,593 Public works---1,067 Health, welfare and sanitation1,8561,8891,8491,842 Culture and recreation418418448661 Operating grants and contributions9924,6485,1651,004 General government---- Public safety---- Public works ---- Culture and recreation---- Capital grants and contributions ---- General government -2351,260- ---- Public works 5,70810,50613,4649,283 Total Governmental Activities Program Revenues Business-Type Activities: Charges for services Water services 4,7906,1334,5203,850 Sewer services2,7643,6703,3633,307 Airport42655353 Bay Forest Golf Course9111,0321,0671,002 Sylvan Beach Convention Center 1891612 1,0612,3381,786860 Capital grants and contributions 9,75713,39910,7919,072 Total Business-Type Activities Program Revenues 15,46523,90524,25518,355 Total Primary Government Program Revenues Net (Expense)/Revenue Government activities( 25,486)( 28,331)( 29,699)( 34,485) ( 530)2,7771,710( 989) Business-type activities ( 26,016)( 25,554)( 27,989)( 35,474) Total Primary Government Net Expense 98 TABLE 2 Fiscal Year 201120122013201420152016 $14,575$14,091$13,854$14,115$12,962$14,255 16,30617,37517,76520,43619,08221,115 6,2803,7844,4516,2604,0884,422 2,4532,4242,3282,5195,7486,060 6,0336,3615,7225,8553,4973,440 1,8711,2681,3851,4041,5851,783 47,51845,30345,50550,58946,96251,075 5,7207,6928,2067,7315,0644,986 2,6742,9322,5992,8024,3474,375 181213210230230211 1,485----- ------ 10,06010,83711,01510,7639,6419,571 57,57856,14056,52061,35256,60360,646 7128446468263,9813,036 3,5063,1283,3143,2081,6651,913 330268266270337344 2,0462,1972,2042,2232,2552,244 1,4741,3851,4441,5092,0571,614 ------ 824033-- 611431433546307436 428766202582318 107783931,20811 ------ ------ 11--3,030607 9,2239,3388,72310,05113,65610,213 6,2676,0555,6945,4074,3094,796 3,5353,6013,4203,4233,5883,652 566055565963 ------ ------ 1,4428591,3981,126-- 11,30010,57510,56710,0127,9568,511 20,52319,91319,29020,06321,61218,724 ( 38,295)( 35,965)( 36,782)( 40,537)( 33,306)( 40,862) 1,239( 261)( 447)( 752)( 34,205)( 41,388) ( 37,056)( 36,226)( 37,229)( 41,289)( 67,511)( 82,251) 99 CITY OF LA PORTE, TEXAS CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Amounts in thousands) (Accrual Basis of Accounting) Fiscal Year 2007200820092010 General Revenues and Other Changes in Net Position Governmental Activities: Property taxes$12,197$13,066$13,683$16,391 Industrial payments7,6608,1897,95910,555 Sales and use taxes4,0685,7365,8035,787 Franchise taxes1,9872,0042,1652,160 Investment earnings1,8752,3871,783688 Other revenues1,2138911593 Gain/(Loss) no sale of capital assets---- ( 3,910)76( 3,533)( 779) Transfers 25,09031,54727,97534,895 Total Governmental Activities Business-Type Activities: Investment earnings30034319973 Other revenues695--- Gain/(Loss) on sale of capital assets( 16)--- 3,910( 76)3,533779 Transfers 4,8892673,732852 Total Business-Type Activities 29,97931,81431,70735,747 Total Primary Government Change in Net Position Governmental activities( 396)3,215( 1,725)410 4,3593,0445,442( 137) Business-type activities $3,963$6,259$3,717$273 Total Primary Government 100 TABLE 2 Fiscal Year 201120122013201420152016 $17,742$17,251$17,782$19,925$20,766$24,098 10,73210,47111,10811,55512,26914,378 5,9148,2678,71810,10510,7449,863 2,1712,3122,1842,2522,4122,300 29414384106204380 164168432459164767 -1,941---- ( 1,000)334720( 371)( 1,505)( 795) 36,01740,88741,02844,03145,05450,991 3912892544 -1636100-- ------ 1,000( 334)( 720)3711,505795 1,039( 306)( 676)4801,530839 37,05640,58140,35244,51146,58451,830 ( 2,278)4,9224,2443,49311,74910,129 2,279( 568)( 1,124)( 271)631313 $1$4,354$3,120$3,222$12,380$10,441 101 CITY OF LA PORTE, TEXAS FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Amounts in thousands) (Modified Accrual Basis of Accounting) Fiscal Year 2007200820092010 General Fund Nonspendable $83$105$102$135 Committed ---- Assigned 134296199151 14,49414,40513,75812,274 Unassigned 14,71114,80614,05912,560 Total General Fund All Other Governmental Funds Restricted 9,3188,4895,8137,644 Committed 18,66019,93317,94420,331 Assigned ---7 ---- Unassigned $27,978$28,422$23,757$27,982 Total All Other Governmental Funds 102 TABLE 3 Fiscal Year 201120122013201420152016 $139$94$125$103$89$89 --3,5008,5007,0006,000 9630104782574,440 19,11923,83923,85621,29425,21729,386 19,35423,96327,58529,97532,56339,915 14,08412,57312,19414,17724,42124,861 9,0796,5535,5862,9621,9172,978 ------ -( 31)-( 1)-- $23,163$19,095$17,780$17,138$26,338$27,838 103 CITY OF LA PORTE, TEXAS CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Amounts in thousands) (Modified Accrual Basis of Accounting) Fiscal Year 2007200820092010 Revenues Taxes $28,919$30,060$34,930$36,682 Donations 30--- Licenses and permits 920560642476 Fines and forfeitures 1,2441,7261,8331,803 Charges for services 3,9673,9584,4706,084 Intergovernmental 7164,7554,868989 Interest 2,1171,883610263 7790105125 Miscellaneous 37,99043,03247,45846,422 Total Revenues Expenditures General government7,6968,4189,8699,788 Public safety11,76915,61013,85914,612 Public works2,4072,9096,6642,819 Health and sanitation1,9732,4792,0872,233 Culture and recreation3,1033,4703,8175,048 Debt service: Principal1,2351,6551,6951,755 Interest1,4281,7581,5721,388 Bond issuance cost154--200 10,0136,35115,55710,843 Capital outlay 39,77842,65055,12048,686 Total Expenditures Excess of revenues over (under) expenditures ( 1,789)3,838( 7,662)( 2,264) Other Financing Sources (Uses) General obligation bonds issued8,075--6,265 Refunding bonds issued---4,295 Certificate obligation bonds issued---- Premium on refunding bonds issued38--225 Premium on certificate obligations---- Payment to refunding bond escrow agent4,1977,62514,232( 4,410) Transfers in( 5,148)( 7,501)( 12,119)9,158 Transfers out2132137( 10,545) Sale of capital assets---5 ---- Insurance recoveries 7,1831562,2504,993 Total Other Financing Sources (Uses) $5,395$538$( 5,412)$2,729 Net change in fund balances Debt services as a percentage of noncapital expenditures9.5%9.4%8.3%8.8% 104 TABLE 4 Fiscal Year 201120122013201420152016 $35,761$38,353$39,835$43,837$46,155$50,376 ------ 3134653684981,347596 1,7241,7581,8871,7911,9541,996 5,6805,9576,0096,3056,9956,555 9171,2395681,5723,1951,024 1931297697184350 24236426261399728 44,83047,93749,16954,36160,22961,626 10,28910,46211,04313,82811,95311,706 15,68815,75216,32217,42817,69918,324 3,1183,4393,2473,4332,9163,029 2,1822,2262,2442,3342,4582,644 5,3145,2615,2275,4415,7285,849 1,7402,1702,3652,6404,6264,281 1,8711,5201,3851,2181,5901,451 -151-154-- 8,7148,5835,5005,4466,3324,439 48,91649,56447,33351,92253,30251,723 ( 4,085)( 1,627)1,8352,4396,9289,903 ------ -9,435-9,300-- ----7,770- -364-608-- ----366- -( 9,639)-( 9,749)-- 4,2482,7113,8843,9123,0692,851 ( 5,012)( 2,644)( 3,630)( 4,761)( 6,559)( 3,979) 6,8221,941215--- ----211- 6,0582,168469( 690)4,857( 1,128) $1,972$541$2,305$1,749$11,785$8,775 9.0%9.4%9.0%8.3%13.2%12.1% 105 THIS PAGE LEFT BLANK INTENTIONALLY TABLE 5 CITY OF LA PORTE, TEXAS ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEAR (Unaudited) Less TaxAssessed Value ExemptLess OtherEstimatedas a Percent of FiscalTaxPersonalRealExemptions andTotal TaxableTotal DirectActual TaxableActual Taxable YearYearReal PropertyPropertyPropertyAbatementsAssessed ValueTax RateValueValue $1,861,821,075$350,191,031$-$419,779,423$1,792,232,6830.710000$1,792,232,683 20072006100% 2,007,113,146372,331,715-428,955,0921,950,489,7690.7100001,950,489,769 20082007100 2,237,095,319469,916,389-502,091,6472,204,920,0610.7100002,204,920,061 20092008100 2,261,046,846582,963,159-515,111,4962,328,898,5090.7100002,328,898,509 20102009100 2,055,914,368672,621,147-514,928,7972,213,606,7180.7100002,213,606,718 20112010100 201220112,079,843,021720,515,678-535,441,6212,264,917,0780.7100002,264,917,078100 201320122,080,199,179797,558,553-536,721,2842,341,036,4480.7100002,341,036,448100 201420132,176,582,621986,494,475-590,232,2312,572,844,8650.7100002,572,844,865100 201520142,626,580,963745,093,978-617,133,7622,754,541,1790.7100002,754,541,179100 201620152,692,041,032978,850,207-629,133,2653,041,758,0240.7100003,041,758,024100 Source: Harris County Certified Tax Rolls and Corrections. 106 CITY OF LA PORTE, TEXAS PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS 2007200820092010 City of La Porte by fund: General0.612000.619000.619000.61900 Debt service0.098000.091000.091000.09100 Total Direct Rates0.710000.710000.710000.71000 Harris County Flood Control District0.031060.030860.029220.02923 Harris County0.392390.398230.392240.38805 Port of Houston Authority0.014370.017730.016360.02054 Harris County Board of Education0.005850.005840.006050.00658 Hospital District0.192160.192160.192160.19216 La Porte I.S.D.1.305001.325001.325001.32500 San Jacinto Jr. College District0.145370.163410.170800.17628 Total Direct and Overlapping Rates2.796202.843232.841832.84784 Tax rates per $100 of assessed valuation Source: Harris County Appraisal District 107 TABLE 6 201120122013201420152016 0.605000.605000.640000.614000.605000.60500 0.105000.105000.070000.096000.105000.10500 0.710000.710000.710000.710000.710000.71000 0.028090.028090.028270.027360.027330.02829 0.391170.400210.414550.417310.419230.41656 0.018560.019520.017160.015310.013420.01334 0.006580.006620.006360.006000.005400.00520 0.192160.182160.170000.170000.170000.17179 1.355001.330001.330001.330001.450001.42000 0.185600.185600.185600.185600.175780.18238 2.887162.862202.861942.861582.971162.94756 108 TABLE 7 CITY OF LA PORTE, TEXAS PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND 9 YEARS AGO 20162007 % of% of TaxableTaxableTaxableTaxable AssessedAssessedAssessedAssessed Property Tax PayerValueRankValueProperty Tax PayerValueRankValue Dnow LP$79,380,77412.61%Conoco Phillips, Inc.$59,463,14113.32% Granite Underwood Dist. Ctr. L.P.58,090,61521.91%Oxy Vinyls L.L.50,504,67922.82% Equistar Chemicals LP53,969,77431.77%Equistar Chemical L.P.49,862,11532.78% Exxon Mobil Corp50,420,85241.66%Dow Chemicals46,021,23342.57% Underwood Distribution Ctr. L.P.41,446,8551.36%PPG Industries42,972,1612.40% 55 Oxy Vinyls LP40,697,8591.34%BP Solvay38,054,9102.12% 66 Ineos USA L.L.C.38,986,1801.28%Centerpoint Energy26,486,3871.48% 77 Dow Chemical33,347,5191.10%Attofina Petrochemicals20,438,7831.14% 88 Conoco Phillips Co32,679,5391.07%Noltex19,568,8311.09% 99 Halliburton Energy28,260,0740.93%Sulzer Hickham19,042,4931.06% 1010 Subtotal457,280,04115.03%372,414,73320.78% Other Taxpayers2,584,477,98384.97%1,419,763,96379.22% Total$3,041,758,024100.00%$1,792,178,696100.00% Source: City of La Porte Tax Assessor-Collector's records. 109 TABLE 8 CITY OF LA PORTE, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collected Within the Fiscal Fiscal Year of the LevyTotal Collections to Date YearTaxes LeviedCollections in Endedfor thePercentageSubsequentPercentage Sept 30,Fiscal YearAmountof LevyYearsAmountsof Levy $12,703,850$12,418,87397.8%$274,607$12,693,48099.9% 2007 13,857,46713,476,87297.3%401,15412,878,026100.1% 2008 15,654,93715,377,14998.2%336,85615,714,005100.4% 2009 16,542,48316,309,81898.6%205,14516,514,96399.8% 2010 15,871,49815,599,93098.3%262,17215,862,10299.9% 2011 16,080,91115,860,66498.6%233,91516,094,579100.1% 2012 16,621,36116,518,20799.4%178,15516,696,362100.5% 2013 18,267,20118,090,45699.0%214,80218,305,258100.2% 2014 19,514,40219,304,48698.9%16,47919,320,96599.0% 2015 21,596,46321,299,84898.6%-21,299,84898.6% 2016 110 TABLE 9 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 GeneralCertificates TotalPercentage FiscalObligationof ObligationLimitedRevenueOther * Primaryof PersonalPer YearBondsBondsTax BondsBondsObligationsGovernmentIncomeCapita $12,070$24,055$4,860$250$7,958$49,193$1,413 2007N/A 11,47523,2654,5901257,21046,6651,320 2008N/A 10,87022,4454,320-6,44344,0781,241 2009N/A 201011,66526,3504,050-5,66047,725N/A1,298 201110,94025,6053,780-4,81345,138N/A1,322 201217,05020,1501,620-3,94542,765N/A1,212 201316,87518,9051,350-3,11740,248N/A1,165 201423,72610,845540-2,20837,319N/A1,072 201521,22017,230--93039,380N/A891 201622,81512,335--32035,470N/A991 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. 111 TABLE 10 CITY OF LA PORTE, TEXAS 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 GeneralLess DebtBonded DebtPercentage of FiscalTaxObligationCertificatesService Net Bondedto AssessedPersonalPer (2)(2) YearYearBondsof ObligationFundsDebtValue Income Capita 20072006$16,930$24,055$1,814$39,1712.2%N/A$928 2008200716,06523,2651,92637,4041.9%N/A1,105 2009200815,19022,4452,00035,6351.6%N/A1,051 2010200915,71526,3502,15139,9141.7%N/A965 2011201014,72025,6053,11837,2071.7%N/A1,152 2012201118,67020,1503,11335,7071.6%N/A1,090 2013201218,22518,9052,49034,6401.5%N/A1,165 2014201324,26610,8452,76932,3421.3%N/A1,072 2015201421,22017,2303,16135,2891.3%N/A1,006 2016201522,81512,3353,54131,6091.0%N/A899 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. 112 TABLE 11 CITY OF LA PORTE, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 30-Sep-16 (Dollars in thousands, except per capita) Estimated EstimatedShare of Debt PercentageOverlapping Governmental UnitOutstandingApplicableDebt Debt Repaid with Property Taxes Harris County$2,421,507,8740.62%$15,013,349 Harris County Department of Education3,840,0000.62%23,808 Harris County Flood Control District83,075,0000.62%515,065 Harris County Toll Road-0.62%- Harris County Hospital District62,815,0000.62%389,453 La Porte I.S.D.371,335,00041.45%153,918,358 Port of Houston Authority674,269,3970.62%4,180,470 San Jacinto Jr. College District405,062,6186.07%24,587,301 Total Net Overlapping Debt$4,021,904,889198,627,804 b City of La Porte Direct Debt 35,150,000100%35,150,000 Total Direct and Overlapping Debt$233,777,804 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 113 TABLE 12 CITY OF LA PORTE, TEXAS PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS Debt Service Revenues Available FiscalGrossOperating for Debt (1)(2) YearServicePrincipalInterestTotalCoverage Revenues Expenses 2007$1,992,432$721,936$1,270,496$460,000$300,700$760,7001.7 20081,924,230769,8021,154,428485,000273,531758,5311.5 20091,853,104852,4211,000,683505,000245,069750,0691.3 20101,814,987918,181896,806525,000181,992706,9921.3 20112,062,7881,091,627971,161585,000104,488689,4881.4 20122,052,6661,375,269677,397605,00088,150693,1501.0 20132,011,5501,036,505975,045625,00053,566678,5661.4 20141,988,477880,4891,107,988630,00058,650688,6501.6 20151,906,7271,215,561691,166650,00021,737671,7371.0 20161,296,2841,029,233267,051670,00022,850692,8500.4 (1) Total revenues including interest (2) Total operating expenses less depreciation 114 TABLE 13 CITY OF LA PORTE, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Fiscal YearPer Capita EndedPersonalPersonalMedianSchoolUnemployment (1)(2)(2)(3)(4)(5) Sept. 30, Population Income Income Age Enrollment Rate 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% 201535,074N/AN/A337,6484.6% 201635,148N/AN/A337,7534.6% Data sources: (1) Estimated population provided by US Census Bureau (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 115 TABLE 14 CITY OF LA PORTE, TEXAS PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 20162007 PercentagePercentage of Total Cityof Total City EmployerEmployeesEmploymentEmployerEmployeesEmployment JV Industrial Companies Ltd1,6127.34%La Porte I.S.D.1,0005.29% Mobley Industrial Services Inc1,4006.37%E.I. DuPont De Nemours $ Co.5803.07% La Porte ISD1,0404.74%City of La Porte3681.95% City of La Porte3841.75%Fumanite Worldwide3341.77% Sulzer Turbo Svcs Houston Inc3301.50%A&L Industrial Services Inc3001.59% CCC Group Inc3001.37%CCC Group, Inc3001.59% Highway Transport Chemical LLC2941.34%Aker Kvaerner Industrial Constructors, Inc2501.32% Airgas Inc2811.28%James H. Jackson Industries Inc2501.32% Pfeiffer Holdings LLC2711.23%Occidental Chemical Corp.1750.92% Total Ptrchemicals Ref USA Inc2651.21%Intercontinental Terminal Co.1600.85% Total6,17728.13%Total3,71719.67% Source: Centerpoint Energy Note: This list includes companies within the City limits of La Porte and within the industrial districts. 116 THIS PAGE LEFT BLANK INTENTIONALLY TABLE 15 CITY OF LA PORTE, TEXAS FULL-TIME EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2007200820092010201120122013201420152016 General government80797879909088888989 Public safety147142143144144151152154154154 Public works32323232323230303030 Health and sanitation21222222242423232322 Culture and recreation44454546464642424244 Water services25252525252525242525 Sewer services20202020202020202020 Golf course12121212------ Sylvan Beach Convention Center444------- Total385381381380381388380381383384 Source: City of La Porte Human Resource Department 117 CITY OF LA PORTE, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal Year Function/Program2007200820092010 Police Physical arrests2,4892,6422,7372,538 Tickets processed9,65215,35216,09816,603 Fire Number of calls answered1,6031,7991,4091,559 Inspections600320600690 Highways and streets Street resurfacing (linear feet)22,10019,88723,55938,365 Potholes repaired1,2609961,0121,236 Sanitation Cubic yards of garbage collected29,27929,28229,89429,642 Cubic yards of trash collected52,25048,13678,90043,368 Culture and recreation Fitness center admissions62,82862,24553,40178,118 Water Number of water meters11,74311,91311,96812,015 Average daily consumption3.84.04.03.9 (millions of gallons) Water main breaks467455498417 Wastewater Average daily sewage treatment (thousands of gallons)3.93.22.83.7 Golf course Number of paid rounds played32,43335,83936,00931,271 Source: Various City departments Notes: N/A - Data not available 118 TABLE 16 Fiscal Year 201120122013201420152016 2,3542,3112,2052,0322,1522,399 14,61913,22113,86114,15114,31613,231 1,4831,1951,2191,2621,3781,356 7258129501,0203831,025 60,47269,58013,52011,18311,17222,172 4651,173271165342236 27,96142,58930,62554,81250,94526,458 45,77854,64132,13740,70131,51840,569 64,98964,27964,58790,76567,794102,778 12,06112,12912,23412,32112,43112,523 4.64.34.03.83.93.8 666311379411200217 2.83.32.72.63.83.8 34,84834,03832,25732,74129,96526,794 119 TABLE 17 CITY OF LA PORTE, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program2007200820092010201120122013201420152016 Public safety Police station1111111111 Police officers74747475757474747675 Reserve officers6212226233 Fire stations4444444444 Sanitation Collection trucks14141414141212121417 Highways and streets Streets (miles)211295126126126125297297272 272.5 Streetlights 1,804 2,400 2,387 2,387 2,415 2,415 2,415 2,415 2,415 2,415 Traffic signals3375566677 Culture and recreation Parks acreage347347356356356188188188188188 Parks acreage22222121212222222222 Swimming pools6665555555 Recreation centers1114433222 Senior center1111111111 Water and sewer Water mains (miles)176178180180181182183184185187 Fire hydrants 1,076 1,161 1,168 1,179 1,186 1,199 1,226 1,256 1,265 1,276 Sanitary sewers (miles)189189191191192192192192193194 Storm sewers (miles)929292959760112112115115 Source: City departments 120 Presented to City of La Porte, Texas Annual Financial and Compliance Audit City Council March 27, 2017 INTRODUCTION AND AGENDA Paula Lowe, CPA Partner, Government Audit Audit process Results of the audit Required auditor communications Financial highlights Upcoming standards Questions AUDIT PROCESS AUDIT PROCESS TheauditwasperformedinaccordancewithGenerallyAcceptedAuditing Standards(GAAS),GovernmentAuditingStandards(GAS),and Uniform Guidance. InterimfieldworkandriskassessmentwasperformedinJulyof2016 including: Walkthroughsofaccountingcontrolsoversignificanttransaction cyclessuchas: o CashDisbursements o Payroll o UtilityBilling o TaxandIndustrialPaymentProcess o MunicipalCourtandPermitsReceipts Testsofaccountingcontrolsovercashdisbursements Testsofcompliancewithlaws,regulations,contractsandgrants FieldworkwasperformedinJanuary2017. AUDIT RESULTS AUDIT RESULTS IndependentReport,foundonpages1-3oftheComprehensive AnnualFinancialReport. Unmodifiedopinion-highestformofopinionthatcanbeissued. EmphasisontheimplementationofGASB72,FairValue Measurement. IndependentReportonInternalControlOverFinancialReporting andonComplianceandOtherMattersBasedonanAuditofFinancial StatementsPerformedinAccordancewithGovernmentAuditingStandards, foundonpages12oftheSingleAuditReport. Nomaterialinstanceofnon-compliance Nodeficienciesininternalcontrolidentifiedtobeamaterial weakness AUDIT RESULTS IndependentReportonComplianceforEachMajorFederalProgram andReportonInternalControlOverComplianceinAccordancewithUniform Guidance,foundonpages35oftheSingleAuditReport. Unmodifiedopiniononcomplianceforeachmajorprogramtested Nodeficienciesininternalcontrolovercomplianceidentifiedtobea materialweakness Nofindingsorquestionedcosts $939,873intotalexpendituresoffederalawards Majorfederalprogram-CommunityDevelopmentBlockGrant- CFDA#14.228 50%coverageoftotalfederalexpenditures COMMUNICATION REQUIRED COMMUNICATION TO THOSE IN CHARGE OF GOVERNANCE ThefinancialstatementsaretheresponsibilityoftheCity.Our under generally accepted auditwasdesignedinaccordancewithGAASandprovidefor auditing standards reasonableratherthanabsoluteassurancethatthefinancial (GAAS) statementsarefreeofmaterialmisstatement.Our responsibilityistoexpressanopinionaboutwhetherthe financialstatementspreparedbymanagementwithyour oversightarefairlypresented,inallmaterialrespects,in conformitywithU.S.generallyacceptedaccountingprinciples. Ourauditofthefinancialstatementsdoesnotrelieveyouor managementofyourresponsibilities. REQUIRED COMMUNICATION TO THOSE IN CHARGE OF GOVERNANCE Wearerequiredtoissueawrittenreportonourconsideration under Government ofinternalcontrolsandidentifysignificantdeficiencies, Auditing Standardsincludingmaterialweaknesses,ifany.Ourreportsdonot provideassuranceoninternalcontrols.Wedesignourauditto providereasonableassuranceofdetectingmaterial misstatementsresultingfromnoncompliancewithprovisions ofcontractsorgrantagreementsthathaveadirectormaterial effectonthefinancialstatements. Unusual Transactions and ThesignificantaccountingpoliciesusedbytheCityare the Adoption of New describedinNote1tothefinancialstatements. Accounting Principles NewGASBpronouncementimplementedin2016includes GASBStatementNo.72,FairValueMeasurementand Application. WenotednotransactionsenteredintobytheCityduringthe yearforwhichthereisalackofauthoritativeguidanceor consensus. REQUIRED COMMUNICATION TO THOSE IN CHARGE OF GOVERNANCE Fraud and Illegal ActsNomaterialerrors,irregularities,illegalactswerenoted. Nomaterialweaknessesnoted. Material Weakness in Internal Control Management Judgments estimateswereevaluatedanddeterminedto and Accounting bereasonableinrelationtothefinancialstatementsasa Estimates whole. Difficulties Encountered Therewerenodifficultiesordisagreementsduringthecourse ofouraudit. Werequestcertainrepresentationsfrommanagementthat Management wereincludedinthemanagementrepresentationletter. Representations REQUIRED COMMUNICATION TO THOSE IN CHARGE OF GOVERNANCE Management Wearenotawareofmanagementconsultingwithother Consultations accountantsforasecondopinion. Auditor Noindependenceissueswerenoted. Independence Audit Adjustments Professionalstandardsrequireustoaccumulateallknownand likelymisstatementsidentifiedduringtheaudit,otherthan thosethataretrivial,andcommunicatethemtothe appropriatelevelofmanagement.Therewerenosignificant auditadjustmentstoreport. REQUIRED COMMUNICATION TO THOSE IN CHARGE OF GOVERNANCE Other Information Providedan-relation-opiniononsupplementary Contained in Documents information(pages67-95ofCAFR) Containing Audited Financial Statements PerformedlimitedproceduresontheRequiredSupplementary Information(RSI): DiscussionandAnalysis(pages 4-12ofCAFR) BudgetarySchedules(pages61-62ofCAFR) TMRSandTESRSSchedules(pages63-65of CAFR) OPEBSchedule(page66ofCAFR) Introductorysection(pagesi-ix)andstatisticalsection(pages 96-120)arebothunaudited. FINANCIAL HIGHLIGHTS Comparison of Governmental Activities -Net Position 43.6 60 48.4 40 21.7 14.5 17.9 20 23.7 2015 0 2016 Net Investment Restricted in Capital Assets Unrestricted Comparison of Business-type Activities -Net Position 34.8 34.3 40 30 20 1.3 4.1 10 0.8 2015 5.3 0 2016 Net Investment Restricted in Capital Assets Unrestricted Governmental Funds -Fund Balance CǒƓķ .ğƌğƓĭĻ Asofyearend,thegovernmental fundsreportedacombinedendingfund balanceof$67.8millionasfollows: General Fund $24.3 -General Fund$39.9 $39.9 -Debt Service3.5 Debt Service -Other Governmental24.3 $3.5 Other Governmental Unassigned General Fund Balance, $29.4 million, is 76% of total General Fund expenditures for fiscal year 2016. Committed fund balance in the General Fund includes $4 million for construction and $2 million for health funds. Assigned fund balance includes encumbered Comparison of Governmental Funds -Revenues 0.6 3.2 7.0 2015 2.0 Other 1.3 46.2 Intergovernmental Charges for Services 1.1 1.0 Fines and Forfeitures 6.6 2016 License and Permits 2.0 0.6 Taxes 50.4 0204060 aźƌƌźƚƓƭ Overall total revenues for fiscal year 2016 were 2% higher. Governmental Funds revenues totaled $61.6 million, a $1.4 million increase from fiscal year 2015. Comparison of Governmental Funds -Expenditures 6.3 6.2 5.7 Capital Outlay 2.5 2015 2.9 Debt Service 17.7 12.0 Culture and Recreation 4.4 Health and Sanitation 5.7 5.8 2.6 Public Works 2016 3.0 18.3 Public Safety 11.7 General Government 0.05.010.015.020.0 aźƌƌźƚƓƭ Expenses decreased by $1.6 million in fiscal year 2016. Proprietary Funds -Net Position bĻƷ tƚƭźƷźƚƓ Asofyearend,theproprietary fundsreportedacombinedendingnet Utility positionof$54.4millionasfollows: $13.9 LPAWA -Utility Fund$30.0 $30.0 $2.5 -LPAWA8.0 $8.0 -Airport2.5 Airport -Internal Service Funds13.9 Internal Service Funds Unrestricted net position of the funds are $2.4 million Utility Fund, $2.6 million LPAWA, $357 thousand Airport, and $4.6 million Internal Service Funds. Comparison of Proprietary Funds -Operating Revenues and Expenses 12 10.1 9.4 10 9.0 8.7 8.58.58.5 8.4 8 Utility 6 LPAWA Airport 4 Internal Service Funds 1.7 1.5 1.2 1.1 2 0.20.2 0.06 0.06 0 2016201620152015 RevenuesExpensesRevenuesExpenses UPCOMING STANDARDS UPCOMING STANDARDS StatementNo.74,FinancialReportingforPostemploymentBenefitPlansOther ThanPensionPlans EffectiveDate:FY2017 StatementNo.75,AccountingandFinancialReportingforPostemployment BenefitsOtherThanPensions EffectiveDate:FY2018 StatementNo.77,TaxAbatementDisclosures EffectiveDate:FY2017 StatementNo.80,BlendingRequirementsforCertainComponentUnitsan amendmentofGASBStatementNo.14 EffectiveDate:FY2017 UPCOMING STANDARDS StatementNo.83,CertainAssetRetirementObligations EffectiveDate:FY2019 StatementNo.84,FiduciaryActivities EffectiveDate:FY2020 QUESTIONS To the Honorable Mayor and Members of the City Council and Citizens City of La Porte, Texas We have audited the financial statements of as of and for the year ended September 30, 2016, and have issued our report thereon dated March 15, 2017. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit Ascommunicated in our engagement letter dated July 25, 2016, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of thefinancial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, ver financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, and, as appropriate, our firm have complied with all relevant ethical requirements regarding independence. As a part of the engagement we assistedin preparing the financial statements, schedule of expenditures of federal awards,and related notes to the financial statements of the Cityin conformity with U.S. generally accepted accounting principles and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services were notconducted in accordance with Government Auditing Services. In order to ensure we maintain our independencefor performing these nonaudit servicescertain safeguards were applied to this engagement. Management assumed responsibility for the financial statements, schedule of expenditures of federal awards,and related notes to the financial statements and any other nonaudit services we provided. Management acknowledged in the management representation letter our assistance with the preparation of the financial statements, schedule of expenditures of federal awards, and related notes to the financial statements and that these itemswere reviewed and approved prior to their issuance and accepted responsibility for them. Further, the nonaudit services were oversaw by an individual within management that has the suitable skill, knowledge, or experience; evaluated the adequacy and results of the services; and accepted responsibility for them. Qualitative Aspects of the Entity Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note I to the financial statements. As described in the notes to the financial statements, during the year, the City adopted new accounting guidance, Governmental Accounting Standards (GASB) Statement No. 72, Fair Value Measurement and Application. There was no effect of the accounting change to the beginning of the year. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. 2 Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because judgments. The most sensitive accounting estimates affecting the financial statements are: asset in accordance with standard guidelines. We evaluated the key factors and assumptions used to develop the estimate of useful lives in determining that it is reasonable in relation to the financial statements taken as a whole and in relation to the applicable opinion units. le property taxes is based on historical collections. We evaluated the key factors and assumptions used to develop the allowance for uncollectible property taxes in determining that it is reasonable in relation to the financial statements taken as a whole and in relation to the applicable opinion units. net pension liability is based on actuarial assumptions which are determined by the demographics of the plan and future projections that the actuarial makes based on historical information of the plan and the investment market. We evaluated the key factors and assumptions used to develop the net pension liability and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the Citystatements relate to the net pension liability. The disclosures in the financial statements are neutral, consistent, and clear. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements. 3 In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the management representation letter dated March 15, 2017. In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. Waco, Texas March 15, 2017 4 CITY OF LA PORTE, TEXAS SINGLE AUDIT REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2016 CITY OF LA PORTE, TEXAS SINGLE AUDIT REPORT TABLE OF CONTENTS SEPTEMBER 30, 2016 Page Number Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.................................................... 1 2 Major Federal Program and Report on Internal Control Over Compliance in Accordance with Uniform Guidance ..................................................................................................... 3 5 Schedule of Expenditures of Federal Awards ............................................................... 6 Notes to Schedule of Expenditures of Federal Awards ................................................ 7 Schedule of Findings and Questioned Costs .................................................................8 THIS PAGE LEFT BLANK INTENTIONALLY REPORT OF INDEPENDENT AUDITORSON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH To the Honorable Mayor and City Council City of La Porte, Texas We have audited in accordance with the 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund he year ended September 30, 2016, and the relat statement and have issued our report thereon dated March 15, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financia internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of Adeficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 1 Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters of material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have direct and material effect on the provisions was not an objective of our audit, and accordingly, we do not express such as opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the is an integral part of an audit performed in accordance with Government Auditing Standards compliance. Accordingly, this communication is not suitable for any other purpose. Waco, Texas March 15, 2017 2 REPORT OF INDEPENDENT AUDITORSON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH UNIFORM GUIDANCE To the Honorable Mayor And City Council City of La Porte, Texas Report on Compliance for Each Major Federal Program requirements described in the U.S. Office of Management and Budget(OMB)Compliance Supplement he year ended September 30, 2016 results section of the accompanying schedule of findings and questioned costs. Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Our responsibility is to express an opinion on compliance for each of the City programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Citye with those requirements and performing such other procedures as we considered necessary in the circumstances. 3 4 We believe that our audit provides a reasonable basis for our opinion on compliance for each compliance. Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2016. Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly we do not express an opinion on the effecti Adeficiency in internal control over compliance exists when the design or operation of control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over complianceis a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less server than a material weakness in internal control over compliance, yet important enough to merit attention by those charges with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of Uniform Guidance. Accordingly, this report is not suitable for any other purpose. 4 Report on Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Cityeissued our report thereon dated March 15, 2017, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Uniform Guidance, and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates 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 basic 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 Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Waco, Texas March 15, 2017 5 THIS PAGE LEFT BLANK INTENTIONALLY CITY OF LA PORTE, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Federal Grantor/FederalPass-Through Pass-Through Grantor/CFDAGrantor'sFederalPass-Through Program TitleNumberNumberExpendituresExpenditures U.S. Department of Housing & Urban Development Office of Community Planning and Development Passed through Texas General Land Office: Community Development Block Grant/State's Program14.22812-848-000-6650 $294,350$- Passed through the Harris County Community Services Department: La Porte ISD Historic Schoolhouse Project14.218C2014-0043 32,230- Community Development Block Grant/State's Program14.22812-218-000-5518 175,404- 76,328- Community Development Block Grant/State's Program14.239B-2002-UC-48-0002 Total U.S. Department of Housing & Urban Development 578,312- Office of Community Planning and Development U.S. Department of Transportation Passed through Texas Department Transportation: Airport Improvements Project20.10642M1512LPRT 1,064- 47,983- State and Community Highway Safety 20.6002016-LaPorte-S-1YG-0016 49,047- Total U.S. Department of Transportation U.S. Department of Justice Passed through the City of Houston: Internet Crimes Against Children Task Force Program (ICAC)16.5432015-MC-FX-K046 86,304- Direct Programs: Bullet Proof Vest Partnership Program16.607None 4,917- 6,679- Equitable Sharing Program16.922None 97,900- Total U.S. Department of Justice U.S. Department of Health & Human Services Passed through the City of Houston Department of Health and Human Services: Special Program for Aging, Title III, Part C, Nutrition Services - Congregate93.0454600009506 31,020- Special Program for Aging, Title III, Part C, 27,404- Nutrition Services - Home Delivered93.0454600009506 58,424 Total U.S. Department of Health & Human Services Executive Office of the President Passed through U.S. Department of Justice Drug Enforcement Administration: 10,921- High Intensity Drug Trafficking Areas Program95.001G14HN0012A 10,921- Total Executive Office of the President U.S. Department of Homeland Security Passed through Teas Department of Transportation 145,269- Bay Area Bomb Squad Sustainment97.067None 145,269- Total U.S. Department of Homeland Security $939,873$- Total Federal Expenditures 6 CITY OF LA PORTE, TEXAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Basis of Accounting The Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note I of the basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Basis of Presentation The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal awards ting entity is defined in Note I of the basic financial statements. Federal awards received directly from federal agencies, as well as awards passed through other government agencies, are included on the Schedule of Expenditures of Federal Awards. Indirect Costs The City has elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance. 7 CITY OF LA PORTE, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Summary of Auditors' Results Financial Statements: Type of auditors' report issued:Unmodified Internal control over financial reporting: Material weakness(es) identified that are not considered to be material weaknesses?No Significant deficiencies identified that are not considered to be material weaknesses?None reported Noncompliance material to the financial statements noted?No Federal Awards: Internal control over major programs: Material weakness(es) identified?No Significant deficiency(ies) identified that are not considered to be material weaknesses?None reported Type of auditors' report issued on compliance with major programs.Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516 (a) of Uniform Guidance?No Identification of major programs: Name of federal program or clusterCFDA Number Community Development Block Grant/State's Program14.228 Dollar threshold used to distinguish between type A and type B programs$750,000 Auditee qualified as low risk auditee?Yes Financial Statement Findings None Federal Award Findings None 8 THIS PAGE LEFT BLANK INTENTIONALLY REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM March 27, 2017March 27, 2017AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Budget Budget -- Grant Grant Kenith AdcoxKenith AdcoxSource of Funds:Source of Funds: Requested By:Requested By: PolicePoliceAccount Number:Account Number: Department:Department: Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted: $96,950.00$96,950.00 Other:Amount Requested:Amount Requested: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1.Budget CID ForensicsBudget CID Forensics 2.ResolutionResolution--Justice Assistance GrantJustice Assistance Grant 3.Grant ApplicationGrant Application 4.Grant AnnouncementGrant Announcement SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Staff has prepared an application for a Crime Initiative Grant, a federal Justice Assistance Grant (JAG), Staff has prepared an application for a Crime Initiative Grant, a federal Justice Assistance Grant (JAG), and is offered and will be administered by the Criminal Justice Division of the Governorand is offered and will be administered by the Criminal Justice Division of the Governor’’s office of the s office of the state. As part of the grant application process, a Resolution is required agreeing to the terms of the state. As part of the grant application process, a Resolution is required agreeing to the terms of the grant and designating the City Manager as the authorized official to sign grant documents and accept grant and designating the City Manager as the authorized official to sign grant documents and accept the grant if awarded. the grant if awarded. The grant project includes Digital Forensics Investigative Equipment. Digital devices such as The grant project includes Digital Forensics Investigative Equipment. Digital devices such as computers, tablets, cellular phones, flash drives, gaming consoles, DVR's, global positioning devices, computers, tablets, cellular phones, flash drives, gaming consoles, DVR's, global positioning devices, routers, digital cameras, etc. are all in use by criminals. With forensically sound conditions, routers, digital cameras, etc. are all in use by criminals. With forensically sound conditions, methodologies, and equipment, investigators can use the information stored and captured in these methodologies, and equipment, investigators can use the information stored and captured in these devices to assist in the investigative and prosecutorial processes. The Citydevices to assist in the investigative and prosecutorial processes. The Citydevices to assist in the investigative and prosecutorial processes. The Citydevices to assist in the investigative and prosecutorial processes. The City’’’’s application includes a s application includes a s application includes a s application includes a request for valuable forensic technology hardware, software, and some training, in order to make this request for valuable forensic technology hardware, software, and some training, in order to make this reality. Such assets will be stationed at La Porte and readily available to be utilized in investigations at reality. Such assets will be stationed at La Porte and readily available to be utilized in investigations at LPPD. If approved no City match would be required. This grant is competitive in nature, and will first be LPPD. If approved no City match would be required. This grant is competitive in nature, and will first be reviewed by the Houstonreviewed by the Houston--Galveston Area Council (HGAC). Galveston Area Council (HGAC). Should La Porte receive one of these grants, it would receive funding until next fiscal year. Staff would Should La Porte receive one of these grants, it would receive funding until next fiscal year. Staff would include this grant in the FY18 budget. include this grant in the FY18 budget. Action Required of Council:Action Required of Council: Consider approval or other action of a Resolution designating the City Manager as the authorized grant Consider approval or other action of a Resolution designating the City Manager as the authorized grant official and approving the grant application for Digital Forensics Investigative Equipment, through the official and approving the grant application for Digital Forensics Investigative Equipment, 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 JAG Grant-Forensic Project Hardware Enhancements: Sumuri-Talino KA-901X Forensic Workstation17990 Upgrade to Cellebrite Touch 23500 Dell Storage Server NX3230 40TB Storage Array (second server to backup data from existing server)12000 Powervault MD1200 40TB Storage Array (expand storage of existing server)7000 Powervault MD1200 40TB Storage Array (expand storage of second server used for backup)7000 Computer peripheral (monitors, keyboard, mouse)1000 Liebert Environmental Cooling Module Upgrade (adding additional cooling unit to existing server rack)3075 15-inch Mac Book Pro 2.9GHz 1TB storage 16GB memory - (required for video and image enhancement software)3520 Netgear ProSAFE 16-Port 10Gb Network Switch1300 Intel X540-T110Gb Ethernet Card-4 total (upgrade existing data transfer rates between storage server and workstations)1200 Software Enhancements: Upgrade to Magnet Forensics Internet Evidence Finder-AXIOM2199 Oceans System Forensic Video and Image Enhancement5050 Adobe Software Suite (required for Oceans System enhancement software)567 Hawk Analytics Call Detail Record (CDR)Mapping and Analysis-Cell Hawk Software2495 Windows 7 License (required for OS bootcamp for MacBook Pro)152 Lab Furniture: Hergo Modular Forensic Workstation10798 Replaces current office furniture with workstation specifically designed for forensic lab. Maximizes workspace. Training: International Association of Computer Investigative Specialists Cerification Required travel to Orlando,Florida for 2 weeksTuition2795 Travel850 Hotel14006171 Per Diem826 Vehicle300 Oceans System Training Program (iNPUT-ACE)-2 peopleTuition1590 Required travel to Burtonsville, MD 3 daysTravel938 Hotel3873471 Per Diem406 Vehicle150 Oceans System Training (Clear ID)-2 people Required travel to Burtonsville, MD 3 daysTuition990 Travel928 Hotel3872869 Per Diem414 Vehicle150 Oceans System Training (Omivore 1 hr online)- 2 people Tuition200 Cell Hawk Training (2 People) Required travel to Fort Collins, Colorado 4 daysTuition1100 Travel334 Hotel3272393 Per Diem472 Vehicle160 Power Enhancements: APC Smart UPS X-3000VA Low Voltage (Backup power for second server)1500 Installing dedicated power circuit for additional server and cooling system1500 96950 Full Budget RESOLUTION NO. 2017-__________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, AUTHORIZING THE DIGITAL FORENSICS INVESTIGATIONS PROJECT BE ACQUIRED THROUGH A GRANT FOR THE YEAR 2017-2018; APPROVING SUBMISSION OF THE GRANT APPLICATION FOR THE DIGITAL FORENSICS INVESTIGATIONS PROJECT VIA A LAW ENFORCEMENT GRANT; DESIGNATING THE CITY M AUTHORIZED OFFICIAL; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAWS; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the City of La Porte finds it in the best interest of the citizens of La Porte that the Digital Forensics Investigations project be acquired through a grant for the year 2017-2018. This grant will aid the City and Police Department in obtaining equipment and software via grant funds to provide for Digital Forensics Investigative equipment and software to aid in criminal investigations; and WHEREAS, the City of La Porte agrees that in the event of loss or misuse of the Criminal Justice Division funds, the City of La Porte assures that the funds will be returned to the Criminal Justice Division in full; and WHEREAS, the City of La Porte agrees that it will appropriate any matching funds in support of the grant, if applicable; and WHEREAS, The authorized official is given the power to apply for, accept, reject, alter or terminate the grant on behalf of the applicant agency. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City of La Porte authorizes the Digital Forensics Investigations project be acquired through a grant for the year 2017-2018, and further authorizes and approves submission of the grant application for the Digital Forensics Investigations project, via a law enforcement grant, to the Office of the Governor, Criminal Justice Division. Section 2. The City of La Porte agrees that in the event of loss or misuse of the Criminal Justice Division funds, the City of La Porte assures that the funds will be returned to the Criminal Justice Division in full; agrees that it will appropriate any matching funds in support of the grant, if applicable; anddesignates the City Manager as the grantees authorized official. Section 3. 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, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this Resolution 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 4. This Resolution shall be effective upon its passage and approval. Agency Name: Grant/App:Start Date:End Date: Project Title: Status: Eligibility Information Your organization's Texas Payee/Taxpayer ID Number: Application Eligibility Certify: Profile Information Applicant Agency Name: Project Title: Division or Unit to Administer the Project: Address Line 1: Address Line 2: City/State/Zip: Start Date: End Date: Regional Council of Goverments(COG) within the Project's Impact Area: Headquarter County: Counties within Project's Impact Area: Grant Officials: Authorized Official User Name: Email: Address 1: Address 1: City: Phone: Fax: Title: Salutation: Position: Project Director User Name: Email: Address 1: Address 1: City: Phone: Fax: Title: Salutation: Position: Financial Official User Name: Email: Address 1: Address 1: City: Phone: Fax: Title: Salutation: Position: Grant Writer User Name: Email: Address 1: Address 1: City: Phone: Fax: Title: Salutation: Position: Grant Vendor Information Organization Type: Organization Option: Applicant Agency's State Payee Identification Number (e.g., Federal Employer's Identification (FEI) Number or Vendor ID): Data Universal Numbering System (DUNS): Narrative Information WARNING: A. Specialty Courts CJD ID for the court B. Drug Testing 'N/A' C. Juvenile Case Managers X _ _ _ _ _ _ _ X N/A N/A _ _ _ _ _ _ X D. Evaluation Projects Tier-One Evaluations _ X 'YES' 'No''N/A' Tier-Two Evaluations _ X 'YES' 'No''N/A' XNO E. Sustainment 'N/A' 'N/A' A. Constitutional Compliance B. Information Systems C. Bulletproof Vests D. Uniform Crime Reports E. Criminal History Reporting F. DNA Testing of Evidentiary Materials G. Interoperable Communications H. Twelve-Step Programs I. Specialty Court Certifications J. Generated Program Income K. Immigration and Customs Enforcement Requests _ _ X _ L. Civil Rights Liaison Overall Certification Guide to GrantsGrantee Conditions and Responsibilities XI certify to all of the application content & requirements. Project Abstract : Problem Statement : Supporting Data : Project Approach & Activities: Capacity & Capabilities: Performance Management : Data Management: Target Group : Evidence-Based Practices: Project Activities Information X _ _ _ X 'YES'NoN/A 'YES' NoN/A _ X _ X _ X _ _ _ _ _ X _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ X 'N/A' Selected Project Activities: ACTIVITYPERCENTAGE:DESCRIPTION Measures Information TARGET OUTPUT MEASURE LEVEL OUTCOME MEASURETARGET LEVEL CUSTOM OUTPUT TARGET MEASURELEVEL CUSTOM OUTCOME TARGET MEASURELEVEL Upload FilesSummary _ X Yes _ X _ NoN/A _ X _ _ X Yes Type I Entity Type II Entity Type III Entity _ X _ X _ Unable to Certify Certification of Recipient Highly Compensated Officers YESFIRSTNOSECOND _ X X _ YESFIRSTNOSECOND Fiscal Capability Information _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Budget Details Information Budget Information by Budget Line Item: IN- SUB CASH CATEGORYDESCRIPTIONCJDKIND GPITOTALUNIT/% CATEGORYMATCH MATCH Source of Match Information Detail Source of Match/GPI: DESCRIPTIONMATCH TYPEAMOUNT Summary Source of Match/GPI: Total ReportCash MatchIn KindGPI Federal ShareGPI State Share Budget Summary Information Budget Summary Information by Budget Category: CATEGORYCJDCASH MATCHIN-KIND MATCHGPITOTAL Budget Grand Total Information: CJDCASH MATCHIN-KIND MATCHGPITOTAL Condition Of Fundings Information Condition of Funding / Project Date Date Hold Hold Line Item RequirementCreatedMetFundsFunds User Name Office of the Governor Criminal Justice Division Funding Announcement: Justice Assistance Grant (JAG) Program December 19, 2016 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Opportunity Snapshot Below is a high-level overview of many of the elements of this opportunity. Full information is provided in the funding announcement that follows. Purpose The purpose of this announcement is to solicit applications for projects that promote public safety, reduce crime, and improve the criminal justice system. Eligible Funding Areas Funds may be used for state and local initiatives, technical assistance, strategic planning, research and evaluation (including forensics), data collection, training, personnel, equipment, forensic laboratories, supplies, contractual support, and criminal justice information systems that will improve or enhance such areas as law enforcement programs, prosecution and court programs, prevention and education programs, corrections and community corrections programs, drug enforcement programs, system assessment or program evaluation, and technology improvement programs. Funds Available It is anticipated that up to $12M may be funded under this announcement. Budget The minimum allowed under this program is $10,000 and there is no limit on the amount of funding an applicant can request. Match There is no match requirement under this program. Project Periods Continuation projects may not exceed a 12-month period. Organizational Eligibility Applications may be submitted by state agencies, units of local government, independent school districts, senior universities, judicial districts, Native American tribes, and community supervision and corrections departments. Source of Funding Federal funding is authorized under the Omnibus Crime Control and Safe Streets Act of 1968. Process Applicants will respond to this funding announcement by completing an application in eGrants https://eGrants.gov.texas.gov. Contact Information For more information, contact the eGrants help desk at eGrants@gov.texas.gov or (512) 463-1919. 1 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Table of Contents Opportunity Snapshot ........................................................................................................................ 1 Purpose ............................................................................................................................................. 3 To Apply ............................................................................................................................................ 3 What’s New ....................................................................................................................................... 3 Changes in Eligible Activities and Expenses .......................................................................................... 3 Changes in the Application ................................................................................................................... 3 Step 1: Review the Process ................................................................................................................. 4 Timeline ................................................................................................................................................ 4 Submission Method .............................................................................................................................. 4 Step 2: Consider the Requirements ..................................................................................................... 5 Organizational Eligibility ....................................................................................................................... 5 Funding and Project Period Limits ........................................................................................................ 5 Match Requirement .............................................................................................................................. 5 Eligible Funding Areas ........................................................................................................................... 5 Ineligible Expenses and Activities ......................................................................................................... 6 Program-Specific Requirements ........................................................................................................... 6 Standard CJD Requirements ................................................................................................................. 7 Step 3: Apply via eGrants ................................................................................................................... 7 Basics ..................................................................................................................................................... 7 Profile Tab – Grant.Vendor Sub-Tab Direct Deposit Procedures .......................................................... 8 Narrative Tab – Program-Specific Questions ........................................................................................ 8 Narrative Tab – Required Certifications ............................................................................................... 9 Narrative Tab – Project Narrative ......................................................................................................... 9 Activities Tab – CJD Purpose Areas ..................................................................................................... 10 Activities Tab – Fund Source Information and Requirements ............................................................ 10 Activities Tab – OOG-Defined Project Activity Area ........................................................................... 10 Measures Tab – OOG-Defined Output Performance Measure Information ...................................... 10 Measures Tab – Custom-Defined Performance Measures ................................................................. 10 Submit.Application and Certify.Application Tabs ............................................................................... 11 Step 4: Funding Decisions and Grant Acceptance .............................................................................. 11 Selection Criteria ................................................................................................................................. 11 Announcements .................................................................................................................................. 12 Accept the Award ............................................................................................................................... 13 Appendices ...................................................................................................................................... 14 Appendix A: Required Certifications ................................................................................................... 14 Appendix B: Project Narrative ............................................................................................................ 16 Appendix C: CJD Purpose Areas .......................................................................................................... 18 Appendix D: Fund Source Information and Requirements ................................................................. 19 Appendix E: OOG-Defined Project Activity Area and OOG-Defined Output Performance Measure Information ......................................................................................................................................... 23 About CJD ........................................................................................................................................ 29 2 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Justice Assistance Grant Program Purpose The goal of the Criminal Justice Division (CJD) is to provide needed funding to improve public safety and support victims of crime by filling system gaps and promoting innovative solutions to common problems. The purpose of this program is to promote public safety, reduce crime, and improve the criminal justice system. To Apply If you are interested in applying for a grant under this program, follow the four-step process outlined below. Step One - Review the Process: Get familiar with the funding announcement and the process used for this particular program. Step Two - Consider the Requirements: Consider the eligibility requirements as well as what will be required of successful applicants. Step Three - Apply in eGrants: Compile and submit your grant application. To understand how to apply online or to register for the system go to https://eGrants.gov.texas.gov. Step Four – Funding Decisions and Grant Acceptance: Await the funding decision, which is provided through a grant award or other notice from CJD. If you receive an award, complete the acceptance process to access funds. What’s New This year’s grant program and application have several substantial differences from previous years. The changes are summarized below, but applicants should carefully review the relevant sections of this funding announcement and the eGrants application to ensure that CJD does not deem their application incomplete or ineligible for funding. Changes in EligibleActivities and Expenses Evaluation projects: There is new guidance for projects containing or entirely comprised by a project evaluation component. See “Eligible Funding Areas” for more information. Changes in the Application Narrative tab – Program-Specific Questions: There are several new questions and certifications in this section, including changed requirements regarding immigration and customs enforcement requests (only applicable to certain county or municipal governments). 3 CJD Funding Announcement: Justice Assistance Grant (JAG) Program See the section “Narrative tab – Program-Specific Questions” under Step 3 of this funding announcement for more information. Narrative tab – Project Narrative: The instructions for some sections of the Project Narrative on the eGrants application have changed. Applicants must read the “Project Narrative” section of this funding announcement to find them – they are not repeated in eGrants. Activities tab – CJD Purpose Areas (new): Applicants must assign a percentage of their project to certain purpose areas that correspond to their ultimate goal. See “Activities Tab – CJD Purpose Areas” under Step 3 of this funding announcement. Activities tab - OOG-Defined Project Activity Area and Measures tab - OOG-Defined Output Performance Measures: CJD has overhauled the classification of project activities and the associated measures. See “Activities and Measures Tabs – OOG-Defined Project Activity Area and OOG-Defined Output Performance Measure Information” under Step 3 of this funding announcement for the available activity areas and measures. Activities tab - Fund Source Information and Requirements: This section has changed. It includes several new questions about project types and activities. It also includes questions for all CJD grant programs, including some that may not apply to this funding announcement. See “Appendix D: Fund Source Information and Requirements” for the full list of questions and instructions specific to this funding announcement. New Direct Deposit procedures: Applicants will now be required to upload direct deposit forms at the time of application. See “Profile Tab – Grant.Vendor Sub-Tab Direct Deposit Procedures” under Step 3 for more information. Step 1: Reviewthe Process Timeline Action Date Funding Announcement Release 12/19/2016 Online System Opening Date 12/19/2016 Final Date to Submit an Application 02/20/2017 at 5:00PM CST Earliest Start Date 10/01/2017 Latest Start Date 12/01/2017 SubmissionMethod Applicants must submit and certify applications through via eGrants (https://eGrants.gov.texas.gov) by the deadline listed above. 4 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Step 2: Consider the Requirements Organizational Eligibility Applications may be submitted by state agencies, units of local government, independent school districts, senior universities, judicial districts, Native American tribes, and community supervision and corrections departments. Funding and Project Period Limits Funding Limits: The minimum award under this program is $10,000 and there is no limit on the amount of funding that can be requested. Project Period: Grant-funded projects must begin on or after October 1, 2017 may not exceed a 12- month grant period. 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. Available Funding: It is anticipated that up to $12 million may be funded under this announcement. The number of awards will depend upon the number of eligible applicants and availability of funding. Source of 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. Match Requirement There is no match requirement under this program. Eligible Funding Areas JAG funds may be used for state and local initiatives, technical assistance, strategic planning, research and evaluation (including forensics), data collection, training, personnel, equipment, forensic laboratories, supplies, contractual support, and criminal justice information systems that will improve or enhance such areas as: Law enforcement programs; Prosecution and court programs; Prevention and education programs; Corrections, community corrections and reentry programs; Drug enforcement programs; System assessment and program evaluation; or Technology improvement programs. 5 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Ineligible Expensesand Activities Grant funds may not be used to support the unallowable services, activities, and costs listed in the Guide to Grants (available at https://egrants.gov.texas.gov/FileDirectory/Guide_to_Grants_v8.pdf) and: 1)Body-worn cameras; 2)Construction, renovation, or remodeling; 3)Medical services; 4)Security enhancements or equipment for nongovernmental entities not engaged in criminal justice or public safety; 5)Non-law enforcement vehicles or equipment for government agencies that are for general agency use; 6)Transportation, lodging, per diem or any related costs for participants, when grant funds are used to develop and conduct training; 7)Equipment, supplies, and other direct costs associated with processing DNA evidence; 8)Law enforcement equipment that is standard department issue (not including body armor); 9)Costs associated with implementing the National Incident-Based Reporting System (NIBRS); and 10)Any other prohibition imposed by federal, state or local law or regulation. Items off the Department of Justice controlled list will be approved on a case by case basis and at the sole discretion of CJD. Including such items in the application may result in the delay or denial of applications. Program-SpecificRequirements Reporting Requirements Financial and Progress Reports: At the end of each quarter of the state fiscal year during the one-year grant period, grantees will be required to submit a financial status report via eGrants and a progress report via https://cjd.tamu.edu/ in the format required by CJD. Note: To fulfill its responsibilities under the Government Performance and Results Act of 1993 (GPRA), Public Law 103-62, and the GPRA Modernization Act of 2010, Public Law 111–352, applicants that receive funding under this solicitation must provide data that measure the results of their work done under this solicitation. For reference, the accountability measures can be found at: . http://www.bjaperformancetools.org/help/JAGMeasuresQuestionnaire.pdf Program Income Applicant must agree to comply with all federal and state rules and regulations for program income and agrees to report all program income that is generated as a result of the project's activities. Applicant must also agree to report program income to CJD through a formal grant adjustment, to secure CJD approval prior to use of the program income, to use program income only for allowable costs, and to expend program income immediately after CJD’s approval of a grant adjustment and prior to requesting 6 CJD Funding Announcement: Justice Assistance Grant (JAG) Program reimbursement of CJD funds. For the purposes of this program, the deduction method applies unless prior approval is given by CJD for a different method. Program income from asset seizures and forfeitures is considered earned when the property has been adjudicated to the benefit of the plaintiff (e.g., law enforcement entity). Regional Council Requirements Applicants must contact the criminal justice planner at their regional Council of Governments for additional local requirements that may apply, potentially including required workshops and prioritization meetings. To find contact information for your local COG, visit the Texas Association of Regional Councils website at http://txregionalcouncil.org/. Standard CJD Requirements CJD Regulations: 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. For more information on these statutes, requirements, and guidelines, consult the Guide to Grants and the Grantee Conditions and Responsibilities. Uniform Crime Reports: Eligible applicants operating a law enforcement agency must be current on reporting Part I violent crime data to the Texas Department of Public Safety (DPS) for inclusion in the annual Uniform Crime Report (UCR). To be considered eligible for funding, applicants must have submitted a full 12 months of accurate data to DPS for the most recent calendar year. Criminal History Reporting: 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 Department of Public Safety for calendar years 2011 through 2015. Immigration and Customs Enforcement Requests: An application requirement pertaining to full compliance with Department of Homeland Security detainer requests applies to all municipal or county governments that operates a subdivision or department that detains individuals after arrest for a criminal violation. Full text of this certification can be found on the Narrative tab of each application or at http://gov.texas.gov/cjd/dhs_detainerrequest. All applicants must select one of four options in their eGrants application to be considered for funding under this announcement. Step 3: Apply via eGrants Basics To apply to CJD for these grants, you must complete or make sure you have already completed some standard requirements. All of the following are needed to apply within eGrants: 1)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); 2)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; and 7 CJD Funding Announcement: Justice Assistance Grant (JAG) Program 3)Applicants must have or register for an account in http://eGrants.gov.texas.gov. Profile Tab – Grant.Vendor Sub-Tab Direct Deposit Procedures New Direct Deposit procedures: Applicants must upload the required Direct Deposit forms, New Payee Identification Form, and W9 Form for each application prior to submission. The eGrants system will not allow an application submission until these forms are attached to the application. These forms are available at https://egrants.gov.texas.gov/updates.aspxunder the Financial Management Tools section or by clicking on the hyperlinks above. Narrative Tab – Program-Specific Questions The eGrants system will provide additional information about the requirements of applying and contents of the application. Answer these questions in Section 1, Project-Specific Questions under the Narrative tab. Following are some key aspects: Specialty Courts: This section does not apply to applicants under the Juvenile Assistance Grant (JAG) Program. Applicants should enter a “0” for their registration number. Specialty courts should not apply under any funding announcement – including this one – but the Specialty Courts Funding Announcement. Note: “Teen Courts” that do not operate under Ch. 121 should apply under the Juvenile Justice Funding Announcement. Drug Testing: Applicants must describe the drug testing policy for employees and program participants, if applicable. Juvenile Case Managers: This section is relevant to projects with juvenile case managers, but all municipal and county government applicants should answer the questions below. Others may enter “No” to all questions. Applicants must categorize and list each entity that will employ or co-employ juvenile case managers under this project and if the juvenile case managers will be used for truancy or juvenile criminal court purposes. Applicants must indicate if each of those entities currently employs juvenile case managers. Applicants must also indicate if each county or municipality operating a court that will employ a juvenile case manager supported by the project: 1)Currently retains funds collected under Sec. 102.015, Texas Code of Criminal Procedure; 2)Currently collects fees to support juvenile case managers under Sec. 102.0174, Texas Code of Criminal Procedure; and 3)Has established a judicial trust fund under Sec. 36.001, Texas Government Code. Note: CJD may require, as a condition of funding, entities employing juvenile case managers supported by grant funds under this program to begin collecting the above fees and to establish the above trust fund. This may help the entities improve the sustainability of their juvenile case manager program. 8 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Evaluation Projects: Third-party evaluations of projects to determine their effectiveness. Only applicants including an evaluation in their project budget must fill out this section (and should select “Program Evaluation” as one of their “OOG-Defined Project Activity Areas” on the Activities tab of eGrants). Note: If this is an application for a project that is entirely comprised of an evaluation, provide this information in the appropriate Project Narrative sections. Tier-One Evaluations: Evaluations of programs that have been implemented and the evaluations will test the fidelity of the program based on proven models or best-practices. The evaluation also will review available program output and outcome information. Describe here the best practices/model to be used in a fidelity and performance evaluation, the goal(s) of the evaluation, and why it is needed. Tier-Two Evaluations: Evaluations directed at measuring the effectiveness of proposed new program models or significant changes in present program models. The goal of tier-two evaluations is both to measure the program’s effectiveness and to produce data and evidence necessary for others to replicate the program models and to develop best practices that CJD can use in supporting similar efforts. Describe here why this new program model is needed and the goal(s) of the evaluation. CJD is committed to developing evidence-based best practices and applicants are encouraged to, where appropriate, try new and innovative approaches and to include rigorous program evaluations in their project budgets. Evaluation costs will be reviewed on a case-by-case basis by – and approved at the sole discretion of – CJD. After CJD awards any such costs, CJD reserves the right to review, amend, and approve any contract or grant to an evaluator. CJD also reserves final approval for the professional evaluator selected, and any such evaluator must have a demonstrable track record of rigorous evaluations of similar projects. Sustainment: Applicants must indicate how many additional years, beyond this application, they plan on requesting continuation funding. If three years or fewer, applicants must explain their sustainment plan if the project is to be sustained. If more than three years, applicants must explain why other resources cannot be used to continue this project. Narrative Tab – Required Certifications There are a variety of certifications on the eGrants application that applicants are required to make when submitting their application. Applicants should carefully review these certifications, which are also found in this funding announcement’s “Appendix A: Required Certifications”. Narrative Tab – Project Narrative Within eGrants, applicants will complete several narrative fields. Each funding announcement has different instructions for the nine Project Narrative boxes. These instructions are not contained on eGrants, so applicants must review the instructions contained in this funding announcement’s “Appendix B: Project Narrative”. Failure to provide the information requested in this funding announcement may result in an application being deemed ineligible for funding. 9 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Activities Tab – CJD Purpose Areas In this new section of the Activities tab, applicants must assign percentages (adding up to 100%) of their project’s purpose areas to the available categories. Purpose areas should be considered in terms of the ultimate goal of the project, rather than how the project will accomplish its goals. Allowable Purpose Areas: The purpose areas displayed on the Activities tab in eGrants are for all CJD grant programs, but only some purpose areas are eligible under this funding announcement. See “Appendix C: CJD Purpose Areas” for a list of eligible purpose areas. Activities Tab – Fund Source Information and Requirements This section has been overhauled with substantial changes and contains questions that allow CJD to better understand the nature of the project’s activities. See “Appendix D: Fund Source Information and Requirements” for information on the information applicants must enter there. Activities Tab – OOG-Defined Project Activity Area Applicants must assign percentages of their project’s activities – based on the portion of project budget – that correspond to the eligible activity categories, and provide a brief description. Activity descriptions should reflect the information entered under the “Project Approach & Activities” section of the Project Narrative on the Narrative tab. Percentages must add up to 100. Allowable Project Activity Areas: The project activity areas displayed on the Activities tab in eGrants are for all CJD grant programs, but only some project activity areas are eligible under this funding announcement. Applicants should carefully consult this funding announcement’s “Appendix E: OOG- Defined Project Activity Area and OOG-Defined Output Performance Measure Information” for a list of eligible project activity areas. Measures Tab – OOG-Defined Output Performance Measure Information Selecting an activity on the Activities tab will cause all the CJD measurements linked to that activity to display on the Measures tab. Applicants should estimate quantities for each measure that applies to their project, or enter a “0” if a measure is not applicable. Measures should be estimates only of activities that occur during the project period. Allowable Output Performance Measures: The OOG-defined output performance measures displayed on the Measures tab in eGrants are for all CJD grant programs, but only some measures are eligible under this funding announcement. Applicants should carefully consult this funding announcement’s “Appendix E: OOG-Defined Project Activity Area and OOG-Defined Output Performance Measure Information” for a list of eligible measures. Measures Tab – Custom-Defined Performance Measures CJD encourages grantees are encouraged to add any measures that would help CJD better understand the project’s activities and performance. 10 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Submit.Application and Certify.Application Tabs After completing the application, submit the application by selecting the “Submit Initial Application” button on the bottom of the Submit.Application tab (if your application is missing information, a list of errors will appear on the Submit.Application tab. After the initial submission, the project officials will receive an email notification. The Authorized Official must then log-in to the application and certify the application by selecting the “Certify Official Application” button at the bottom of the Certify.Application tab (only visible once the application has been initially submitted). Applications are not complete until the Authorized Official has CERTIFIED the application, and they must do so BEFORE the application deadline. For support documents and “how-to” videos and other resources, including the Guide to Creating an Application, see the eGrants support page at https://egrants.gov.texas.gov/updates.aspx. Step 4: Funding Decisions and Grant Acceptance Selection Criteria Application Screening: CJD will screen all applications to ensure that they meet the requirements included in the funding announcement. Applications that meet those requirements will move forward to the merit review phase. Merit Review – Local Projects: Projects with a local impact will be reviewed by a panel appointed by the local Council of Governments using their own criteria. The merit review panels will assess the applications for quality and rank by priority, and then report their findings to the CJD executive director. Merit Review – Statewide Projects: Projects with a statewide impact will be reviewed by a panel appointed by the CJD executive director in an effort to prioritize funding. The merit review panel will assess and score each application on a 100-point scale, and then report its findings to the executive director. Scores will be based on the following criteria: Problem (20 points): The extent to which the applicant demonstrates: (1) that the problem stated warrants action; (2) that the applicant has a thorough understanding of it; and (3) how it relates to CJD’s program priorities as stated in this funding announcement. For this category, merit reviewers will consider the Project Narrative’s Problem Statement, Target Group, and Supporting Data sections, as well as information from the Activities and Measures tabs and the program-specific question on the Narrative tab. CJD may also make external data available to the panel to inform their assessment, where relevant. Project Strategy (35 points): The extent to which the applicant demonstrates: (1) that the project approach clearly addresses the problem stated; (2) that the strategy will be effective at delivering the proposed outcomes; and (3) that the proposed approach is based on logical practices, as well as on established evidence, research, science, or best or promising practices. For this category, the merit reviewers will consider the Project Narrative’s Project 11 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Approach and Activities, Evidence-Based Practices, and Supporting Data sections, as well as information from the Activities and Measures tabs and the program-specific questions on the Narrative tab. Performance Management (15 points): The extent to which the applicant demonstrates: (1) that the organization is capable of accurately assessing needs; (2) is able to manage and execute strategies and plans; (3) has the skills and capacity to measure, analyze, and respond to performance data; and (4) has a plan or method to monitor results and performance and use this information to inform changes to the project approach. For this category, the merit reviewers will consider the Project Narrative’s Performance Management and Data Management sections. Capacity and Capabilities (30 points): The extent to which the applicant demonstrates: (1) that the organization has a track record of success; (2) that it has the staff capabilities and capacity needed to deliver strong results; and (3) that it has the administrative and financial capability to manage the grant and the project well. For this category, the merit reviewers will consider the Project Narrative’s Capacity and Capabilities section. Cost Effectiveness (additional criteria using a 1-5 scale): While not part of the 100-point merit review scale, the merit reviewers will provide a separate score for cost effectiveness. This score is based on the extent to which the budget seems reasonable to carry out the project as proposed, including the established measures and goals (as outlined in the Performance Management section of the Project Narrative). For this category, the merit review panel will consider the project budget, the full project narrative, and information from the Activities and Measures tabs. Final Decisions – All Projects: The executive director will consider merit review rankings along with other factors and make all final funding decisions. Other factors may include cost effectiveness, overall funds availability, CJD or state government priorities and strategies, legislative directives, need, geographic distribution, balance of focuses and approaches, or other relevant factors. CJD may not fund all applications or may only award part of the amount requested. Per Rule 3.9 of the Texas Administrative Code, all funding decisions made by the executive director are final and are not subject to appeal. The receipt of an application by CJD does not obligate CJD to fund the grant or to fund it at the amount requested. Announcements After CJD makes final funding decisions, each applicant will receive either an unfunded notice or a preliminary decision notification or final grant award. The award will provide all of the conditions and requirements of the grant. Release of final grant awards are always contingent on CJD’s receipt of the federal grant award under which the program is funded and CJD cannot release or guarantee funding to any applicant until that award is received and acceptance is processed and a determination is made that adequate funding is available. All grantees receiving federal and state funds must comply with the applicable statutes, rules, regulations, and guidelines related to the funding source under which the 12 CJD Funding Announcement: Justice Assistance Grant (JAG) Program grant is funded. In instances where both federal and state requirements apply to a grantee, the more restrictive requirements apply. Accept the Award Applicants that receive funding through the final award process will need to follow the instructions found within the award to accept the grant officially. 13 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Appendices Appendix A: Required Certifications Applicants must certify that they will comply with the following requirements to the extent that they are applicable. CJD, at its sole discretion, will determine the applicability of requirements: A. Constitutional compliance: Applicant assures that it will not engage in any activity that violates Constitutional law including profiling based upon race. B. Information systems: Applicant assures that any new criminal justice information systems will comply with data sharing standards for the Global Justice XML Data Model and the National Information Exchange Model. C. Bulletproof vests: Applicant assures that if it plans to purchase body armor with grant funds, that it has adopted a mandatory wear policy and that all vests purchased have been tested and found to comply with the latest applicable National Institute of Justice (NIJ) ballistic or stab standards. Additionally, vests purchased must be American-made. D. Uniform Crime Reports: 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 twelve previous months. E. Criminal History Reporting: 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 Department of Public Safety for calendar years 2011 through 2015. F. DNA Testing of Evidentiary Materials. All grantees that perform DNA testing of evidentiary materials, whether supported by this grant or not, must upload any resulting eligible DNA profiles to the Combined DNA Index System (CODIS) by a government DNA lab with access to CODIS. G. Interoperable Communications. Funds to support emergency communications activities must ensure compliance with the FY 2015 SAFECOM Guidance on Emergency Communications Grants; adherence to the technical standards set forth in the FCC Waiver Order, or any succeeding FCC orders, rules, or regulations pertaining to broadband operations in the 700 MHz public safety band; and are fully coordinated with the full-time Statewide Interoperability Coordinator (SWIC) for Texas. H. Twelve-Step Programs. Grant funds may not be used to support or directly fund programs such as the Twelve Step Program which courts have ruled are inherently religious. OOG grant funds cannot be used to support these programs, conduct meetings, or purchase related materials. I. Specialty Court Certifications. If the applicant is a specialty court operated under Ch. 121 of the Texas Government Code, the following certifications apply: 1. The specialty court will develop and maintain written policies and procedures for the operation of the program. 14 CJD Funding Announcement: Justice Assistance Grant (JAG) Program 2. The applicant will submit a copy of any project evaluations, evaluation plans, recidivism studies, or related reports that are completed during the grant period to CJD. I. Generated Program Income. Unless specifically and explicitly authorized to do otherwise by OOG, at OOG’s sole discretion, the applicant will report Generated Program Income (GPI), which includes any portion of fees collected from program participants and retained by the grantee. GPI will be applied to the grant through a grant adjustment. GPI must be used to offset project costs and must be expended prior to seeking payment from OOG. J. Immigration and Customs Enforcement Requests: The full text of this certification is found at http://gov.texas.gov/cjd/dhs_detainerrequest. To be in compliance with this requirement, any county or municipal government that includes a department that detains individuals after arrest for a criminal violation must provide a letter signed by the head of each such department certifying to the requirements. This letter may be used for any application submitted to OOG for a period of up to two years from the date it is signed. If that period expires during the project period of any grant, the grantee must submit an updated letter for each such grant to remain in compliance with this requirement. All applicants must select one of the following options: Applicant is not a county or municipal government. Applicant is a county or municipal government and does not include any department that detains individuals after arrest for a criminal violation at any time. Applicant is a county or municipal government that includes department(s) that detain individuals after arrest for a criminal violation. Letters certifying compliance and signed by the heads of all such departments have been uploaded to this application. Applicant is a county or municipal government that includes department(s) that detain individuals after arrest for a criminal violation. The Authorized Official has read the certification found at http://gov.texas.gov/cjd/dhs_detainerrequest. Further, the Authorized Official will not be submitting signed letters certifying compliance from the heads of all such departments and understands that failure to comply with this certification may result in OOG, at its sole discretion, rejecting this application and any other application from the relevant county or municipal government. K. Civil Rights Liaison: A civil rights liaison who will serve as the grantee's civil rights point of contact and who will be responsible for ensuring that the grantee meets all applicable civil rights requirements must be designated. The designee will act as the grantee's liaison in civil rights matters with CJD and with the federal Office of Justice Programs. Overall Certification: Each applicant agency must certify to the specific requirements detailed above as well as all requirements within the CJD funding announcement and Criminal Justice Division & Homeland Security Grants Division Grantee Conditions and Responsibilities document to be eligible for this program. 15 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Appendix B:ProjectNarrative Within eGrants, applicants will complete several narrative fields. Each funding announcement has different instructions for the nine Project Narrative boxes. These instructions are not contained on eGrants, so applicants must review the instructions below. Failure to provide the information requested may result in an application being deemed ineligible for funding. Project Abstract. Provide a brief summary of the proposed project. Do not share new information here that you do not include in the questions below. This abstract is a description of your project and intended for the public and policy makers. Be sure that the summary is easy to understand by a person not familiar with your project. (Limit to 1500 characters.) Problem Statement: Provide a description of the nature and scope of the problem in your service area that this proposed project will address. This must be a statement of the core, underlying problem. A lack of resources is not, in and of itself, a problem. Applicant should use the “Performance Management” section below to demonstrate how the Project Approach & Activities will address this problem. Applicants should use the “Supporting Data” to provide the numbers that back up the description of the problem in this section. Supporting Data: Provide supporting data, including baseline statistics and the sources of your data, to provide evidence that the problem exists, its size and scope, and its effects on the target population. Do not use statewide data for a local problem or national data for a statewide problem. Data on particular characteristics of the target population should be entered below under “Target Group.” Project Approach & Activities: Provide the core information needed to understand the methodologies, approaches, and activities to be employed by the project. Provide a rationale for choosing this particular model. Any therapy or licensed counseling provided should include a description of the modality/framework used. A reader should also be able to understand how the approach and activities tie to solving the stated problem. Applicants should use the “Evidence-Based Practices” section below to cite the specific research, evidence, or established best/promising practices that provide the basis for the approach and activities described in this section. Capacity & Capabilities: Describe the applicant organization’s background as well as organizational and staff capabilities and qualifications to carry out this specific project using the approaches and activities provided above. Provide a brief summary of any collaborative partnerships created for the purpose of the proposed project. If the applicant indicates on the Activities tab that licensed or certified personnel will perform work, list each license or certification and upload a list of each person and their relevant corresponding license or certification. Empty positions requiring a license or certification should be noted. Performance Management: Provide an understanding of how the applicant organization will measure success for this project. What are the project’s goals and objectives and what are the project’s performance measures, both output and outcome? How do these goals, objectives, and measures tie to the problem that the project seeks to solve? What is the current baseline information for these measures as well as the goals for the project period? 16 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Goals are broad statements that indicate the general intentions of the project to achieve some outcome. They do need to be measurable in and of themselves and may be abstract in nature. Objectives are clear, tangible, and specific statements of what the project is trying to achieve. Objectives should be expressed in the following form: To \[reduce/increase/enhance/etc.\] \[something\], by \[x amount\], by \[dd/mm/yy date\]. A project can have multiple objectives. Measures use data to provide verifiable, numeric information that tie to one or more objectives and indicate progress toward its achievement. Measures might include volume, time savings, cost savings, resource savings, success rates, conformance rates, timeliness, perception shifts, or other factors. (The most relevant and impactful project-specific measures must be included under the Measures tab in eGrants.) Data Management: Provide an understanding of how the applicant organization plans to collect, track and maintain the data needed to determine whether the project is meeting the goals, objectives, and measures stated above. Describe any methods, mechanisms, or tools used to generate measures. Applicants should give confidence that the data they collect will be accurate, maintained, and analyzed in a manner that enables them to adapt to changing assessments of the problem or project performance, and to evaluate and document the effectiveness of the project. Target Group: Describe the population that this project plans to provide or support direct services to. Include the size and basic demographics for the people served, as well as the challenges they face, and any other information relevant to the project. Be specific and use supporting data. Applicants should demonstrate there that they understand their target group well enough to effectively carry out the project. Evidence-Based Practices: Justify the selection of the methods, approach, and activities described above. Applicants should preferably be able to cite the research, evidence, or published best/promising- practices model used as the basis for the project’s design. In case of an equipment or technology grant, what evidence or best/promising-practices model is there to support the purchase? Wherever possible, provide at least one citation or link. If the project approach and activities described above are not based on existing evidence, the applicant must describe why they believe the method to be promising. Failure to adequately provide justification for the project design may result in the project not being funded in favor of other projects based on evidence, established best/promising practices, or adequately explained. 17 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Appendix C: CJD Purpose Areas In this new section of the Activities tab, applicants must assign percentages (totaling 100%) of their project’s purpose areas to the available categories, based on an estimate of the funds dedicated to each area. Purpose areas should be considered in terms of the ultimate goal of the project, rather than how the project will accomplish its goals. Allowable Purpose Areas Under This Funding Announcement Purpose AreaDescription Truancy: To specifically prevent truancy in at-risk populations BEFORE they engage Prevention in truant conduct (10+ absences in 6 months) Truancy: To intervene specifically with children who have engaged in truant Intervention conduct (10+ absences in 6 months) Juvenile Delinquency: To prevent juvenile delinquency among at-risk populations BEFORE they Prevention commit an offense Juvenile Delinquency: To intervene with minors who have committed juvenile offenses Intervention Disproportionate Minority Contact To reduce disproportionate minority contact with the criminal justice system Adult Criminal Behavior: To prevent crime BEFORE it occurs Prevention Adult Criminal Behavior: To intervene with adults who have committed criminal offenses (through Intervention specialty courts, probation projects, etc., for non-incarcerated individuals) Safety and Security: To increase safety and security on K-12 or higher education campuses Educational campuses Safety and Security: To increase safety and security for inmates and/or corrections personnel Jails or Prisons adult state or local jails or prisons Safety and Security: To increase safety and security at juvenile justice facilities Juvenile Facilities Safety and Security: To increase safety and security at facilities serving victims Victim's Services Facilities Safety and Security: To increase the safety and security of the general public (general law General enforcement) Prosecution and Investigation To more effectively investigate and prosecute crimes Court System Improvements To increase the effectiveness and/or efficiency of courts (non- prosecution/investigation) Corrections and Re-Entry To reduce criminal recidivism among incarcerated or formerly incarcerated individuals Victim Services To provide services to victims of crime 18 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Appendix D:Fund Source Information and Requirements This appendix contains the questions asked in the “Fund Source Information and Requirements” section of the Activities tab on the eGrants application. Applicants should only enter information for items that apply to their project. Boxed comments in italics are special instructions for this funding announcement. Section 1: Program Enrollment and Completion This question is relevant for projects that serve or enroll specific individuals, rather than targeting the general public. This could include training, providing services, treatment programs, or offender programs Applicants under the Justice Assistance Grant Program who should use this section to indicate the number of individuals who will participate in the program. “Successfully completing” means meeting all requirements and graduating with the accompanying dropping of charges, etc. Most applicants will enter their program length in days. Number of individuals NEWLY enrolled in program during the project period Number of individuals successfully completing program during the project period Number of carry-over individuals enrolled in the program at the beginning of the project period Choose one (most applicable to the project): Typical program/services hours OR Typical program/services days Section 2: Special Project Types and Information Applicants should only select options below that relate to a specific aspect of their project. If the project only circumstantially addresses a below option, answer “No” for that project type. Applicants should select all special project types that apply to their project: Task forces: Project will support the operations and coordination activities of a task force. If yes, list the agencies or organizations that participate in the task force. Gang activity: Project involves a focus specifically on gang activity. Transnational and organized crime: Project involves a focus specifically on transnational and organized crime Border activities: Project involves a focus specifically related to the Texas-Mexico border. Human trafficking (select all that apply): 1) Project focuses on human trafficking; 2) Project focuses on trafficking of minors; 3) Project focuses on sex trafficking; 4) Project focuses on labor trafficking. Section 3: Juvenile Justice Projects Applicants who are not directly and specifically addressing juvenile crime should select the last option, “Project does NOT have a particular focus on juvenile crime”. Applicants should select all options that describe the project if it addresses juvenile justice. 19 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Diversion. Programs to divert youth from entering the juvenile justice system including restorative justice programs. Mental Health Services. Programs providing mental health services for youth in custody in need of such services including, but are not limited to assessment, development of individualized treatment plans, and discharge plans. Aftercare/Reentry. Community-based programs that prepare targeted youth to successfully return to their homes and communities after secure confinement. These programs focus on preparing youth offenders for release and providing a continuum of follow up post- placement services to promote successful reintegration into the community. After-School Programs. Programs that provide at-risk youth and youth in the juvenile justice systems with a range of age-appropriate activities, including tutoring, mentoring, and other educational and enrichment activities. Alternatives to Detention. These are community- and home-based alternatives to incarceration and institutionalization including for youth who need temporary placement such as crisis intervention, shelter and after-care and for youth who need residential placement such as a continuum of foster care or group home alternatives that provide access to a comprehensive array of services. Community-Based Programs and Services. These programs and services are those that work pre- and post-confinement with: a) parents and other family members to strengthen families to help keep youth in their homes; b) youth during confinement and their families to ensure safe return of youth home and to strengthen the families; and c) parents with limited English-speaking ability. Delinquency Prevention. Comprehensive juvenile justice and delinquency prevention programs that meet needs of youth through collaboration of the many local systems before which a youth may appear, including schools, courts, law enforcement agencies, child protection agencies, mental health agencies, welfare services, health care agencies and private nonprofit agencies offering youth services. Girl-Focused Services. Services to address the needs of female offenders in the juvenile justice system. School Programs. Education programs or supportive services to encourage youth to remain in school and to prevent truancy. School programs may include support for school resource officers, law-related education, and other programs focused on school safety. Substance and Alcohol Abuse. Programs, research, or other initiatives to address the use and abuse of illegal and other prescription and nonprescription drugs and the use and abuse of alcohol. Programs include control, prevention, and treatment. Disproportionate Minority Contact. Programs, research, or other initiatives primarily to address situations where there are a disproportionate number of people from one or more minority groups coming into contact with the juvenile justice system. Mentoring, Counseling and Training Programs. Programs to develop and sustain a one-to- one supportive relationship between a responsible adult age 18 or older (mentor) and an at- 20 CJD Funding Announcement: Justice Assistance Grant (JAG) Program risk youth, youth who have offended or youth with a parent or legal guardian who is or was incarcerated (mentee) that takes place on a regular basis. These programs may support academic tutoring, vocational and technical training, and drug and violence prevention counseling. Job Training. Projects to enhance the employability of youth or prepare them for future employment. Such programs may include job readiness training, apprenticeships, and job referrals. Aptitude Testing. Job or life skills training programs that include aptitude testing to help young people understand their skills and abilities to plan a course towards continuing education (i.e. technical school, associate’s degree program, or a bachelor’s degree program). Diversion in a Rural Setting. Projects that focus on diversion of minors in rural settings. Diversion targeting at risk youth and providing early detection services. Efforts concentrated on young first time offenders and offer an alternative to traditional entry into the juvenile justice system. Project does NOT have a particular focus on juvenile crime Section 4: Campus-Based Projects Applicants should enter a number in this section if their project specifically targets or serves particular educational campuses. For the list of campuses section, programs that specifically target an entire school district may simply list the district name. If a project is NOT tied to a particular campus or serves student-age populations in general, enter a “0” for the number of students and enter “N/A” for the list of campuses. If this project is based on – or serves – one or more specific educational campuses (K-12 or higher education), how many total students at all campuses will be served by the project and list each educational campus that will be served by this project. Section 5: Crime or Victim Type This question is for justice projects that target specific crimes and ALL victim services projects. Others may enter “0” for each option below. Applicants to serve victims of or prosecute/investigate/prevent exclusively child sex trafficking victims should assign 100% to that category. Select the type(s) of crime or crime victim this project targets and provide the percentage of time dedicated to each. Applicants with projects that target multiple-offense offenders or multiple- victimization victims should assign percentages that best describe the activity. Percentages may not exceed 100%: Sexual Assault Domestic Abuse Child Abuse DUI / DWI Crashes 21 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Homicide Assault Adults Molested as Children Elder Abuse Robbery Stalking Dating/Acquaintance Violence Human Trafficking Child Sex Trafficking All Other Crimes 22 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Appendix E:OOG-Defined Project Activity Areaand OOG-Defined Output Performance Measure Information This section have substantial changes from last year, and are important for CJD’s analysis of each application’s merits and of the entire grant program. CJD understands that these figures are estimates, but applicants should be as accurate as possible. Applicants receiving awards will be asked to follow-up with actual measures during and after the grant project period. Activities: Applicants must assign percentages of their project’s activities – based on the portion of project budget – that correspond to the eligible activity categories, and provide a brief description. Activity descriptions should reflect the information entered under the “Project Approach & Activities” section of the Project Narrative on the Narrative tab. Percentages must add up to 100. OOG-Defined Measures: Activating particular activities will also activate all of the CJD measurements assigned to that activity. Applicants should estimate quantities for each measure that applies to their project, or enter a “0” if a measure is not applicable. Measures should be estimates only of activities that occur during the project period. Allowable Activities and Measures: The Activities tab displays activities available under other CJD grant programs, but not all of them are allowable under this program. The Measures tab will display all the measures linked to that activity, including those meant for other CJD programs and not allowable under this funding announcement. Applicants should carefully consult the list below to see which activities and OOG-defined measures are allowable under this funding announcement. “Required Total” Measures: Some measures are marked as a “Required Total.” These measures are for the volume of each activity that an applicant has selected on the Activities tab. For example, if an applicant selects the “Counseling or Substance Abuse” activity, that will activate the measure “REQUIRED TOTAL: Counseling or treatment for substance abuse: Individuals receiving” on the Measures tab. With rare exceptions, applicants should be able to supply estimates for these Required Total measures. If for some reason that is not possible, an applicant must explain why in the “Performance Measurement” section of the Project Narrative on the Narrative tab. Activities by Licensed or Credentialed Professionals: Any applications with activities or measures indicating services performed by a licensed or credentialed professional should list each specific license or credential in the “Capacity & Capabilities” section of the Project Narrative on the Narrative tab. Activities using specific models or framework: Any applications indicating specialized skills training, support, or treatment should specify the model or modality/framework type under the “Project Approach & Activities” section of the Project Narrative on the Narrative tab. 23 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Allowable Activities and Measures Under This Funding Announcement Activity Definition Measure Casework, Non-*REQUIRED TOTAL: Casework, non-licensed counseling, Support not necessarily Licensed delivered by a licensed individual advocacy, or other support: Individuals receiving Counseling, professional and not *REQUIRED TOTAL: Casework, non-licensed counseling, Individual aimed at developing individual advocacy, or other support: Hours delivered by Advocacy, or specific life, social, or EMPLOYEES Other Support emotional skills. *REQUIRED TOTAL: Casework, non-licensed counseling, individual advocacy, or other support: Hours delivered BY Enter any substance VOLUNTEERS abuse-related activities Casework/support/care needs assessment NOT performed by a under “Counseling or licensed therapist: Individuals receiving Treatment for Substance Casework, non-licensed counseling, advocacy, or other support: Abuse”. Individuals receiving AFTERCARE Mentoring (general): Individuals receiving Peer support (general): Individuals receiving Crisis intervention: Individuals receiving Case management or advocacy (general): Individuals receiving Advocacy/ accompaniment / assistance for criminal justice system interactions: Victim individuals receiving Victims-offender meetings: Victims participating Referrals to other agencies: Individuals referred Counseling or Treatment for substance *REQUIRED TOTAL: Counseling or treatment for substance Treatment for abuse, including licensed abuse: Individuals receiving therapy, non-licensed Substance Abuse Substance abuse treatment by a LICENSED professional: counseling (peer Individuals receiving counseling, mentoring, Substance abuse AFTERCARE counseling by a LICENSED etc.), and medically professional assisted treatment. Substance abuse counseling or support by peers or caseworkers: Individuals receiving Note: Substance abuse Substance abuse AFTERCARE counseling by peers or treatment is generally caseworkers: Individuals receiving ineligible under VOCA- Substance abuse treatment using medically assisted treatment funded programs. (MAT): Individuals receiving Alcohol and/or drug testing – random: Individuals receiving Alcohol continuous monitoring: Individuals receiving Counseling, Counseling or therapy *REQUIRED TOTAL: Counseling, therapy, or other care Therapy, or Other delivered by licensed performed by a licensed professional: Individuals receiving Care Performed professionals. *REQUIRED TOTAL: Counseling, therapy, or other care by a Licensed performed by a licensed professional: Hours delivered Professional For professional Licensed counseling/therapy: Individuals assessed substance abuse Licensed trauma-informed therapy: individuals receiving treatment, use the Licensed treatment for mental health disorders: Individuals "Substance Abuse receiving Treatment" activity. Licensed counseling/ therapy AFTERCARE: Individuals receiving Multi-disciplinary care teams: Individuals receiving care 24 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Activity Definition Measure Equipment and Includes equipment *REQUIRED TOTAL: Equipment or technology: Organizations acquisition and training directly using Technology specifically on the *REQUIRED TOTAL: Equipment or technology: Individuals/ equipment/technology operators equipped purchased with grant funds. General Law Law enforcement and General law enforcement: Arrests or new prosecutions Enforcement or public safety activities. resulting from grant (LEAs only) Public Safety Examples: increased General law enforcement: Convictions or deferred patrols, law adjudications resulting from grant (prosecutors only) enforcement officer Public outreach/information sessions: Total individuals overtime, or public attending trainings/ seminars/ Public outreach/information sessions: Sessions held outreach sessions, including those with a victim focus. Does not include equipment- specific activities (implementation, training), training, or activities covered by other categories. Instruction and Training, counseling or *REQUIRED TOTAL: Instruction or support for academic Support for other support aimed at programs: Individuals receiving Academic enrolling in or *REQUIRED TOTAL: Instruction or support for academic Programs completing formal programs: Hours delivered academic credentials Academic tutoring: Individuals receiving (such as a GED). Academic classroom or course instruction: Individuals receiving Academic credentials (GED or degree): Individuals receiving Any job training or vocational credential College admissions: Individuals receiving related support/ should be listed under counseling “Job and Workforce College admissions: Individuals receiving related support/ Services”. counseling WHO ENROLL in a new higher education program Instruction and Training, assessment, or *REQUIRED TOTAL: Instruction or support for employment or Support for placement aimed at the workforce: Individuals receiving Employment or attaining or improving *REQUIRED TOTAL: Instruction or support for employment or the Workforce employment. the workforce: Hours delivered Job, aptitude, or skills ASSESSMENT: Individuals receiving Job placement/ seeking support: Individuals receiving Job placement/ seeking support: Individuals receiving WHO OBTAIN employment Job or skills TRAINING (not towards a particular certification or license): Individuals receiving Professional or technical certification or license: Individuals receiving instruction or training Professional or technical certification or license: Individuals receiving instruction or training WHO OBTAIN the certification or license 25 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Activity Definition Measure Instruction and Instruction for program *REQUIRED TOTAL: Instruction or support for life, social, and Support for Life, participants, targeted emotional skills: Individuals receiving Social, or populations, at-risk *REQUIRED TOTAL: Instruction or support for life, social, and Emotional Skills populations, etc., to emotional skills: Individuals receiving: Hours delivered develop life, social or Instruction in parenting skills: Individuals receiving emotional skills. Instruction in non-parenting family skills: Number of CHILDREN under 18 receiving Training for criminal Instruction in dating or domestic violence prevention: Number justice system of NON-OFFENDERS receiving professionals should be Instruction in dating or domestic violence prevention: Number entered under the of OFFENDERS receiving "training and professional Instruction in personal finance skills: Individuals receiving development" activity. Instruction in gang involvement prevention: Individuals receiving Instruction in violence prevention: Individuals receiving Instruction trafficking prevention: Individuals receiving Instruction in bullying prevention skills: Individuals receiving Instruction in homelessness/ runaway prevention or recovery skills: Individuals receiving Materials or Activities specifically to <no measures> Curriculum support Development developing/publishing materials or training curricula related to the criminal justice system. Program Evaluation of criminal *REQUIRED TOTAL: Program evaluation and assessment: Evaluation and justice programs and Programs assessed Assessment assessment of organizational or system effectiveness, needs, and/or appropriate responses. Research or Research on, analysis of, Research or statistical activities: Target number of responses/ Statistical or data collection subjects/ participants Activities regarding the criminal Research or statistical activities: Minimum number of justice system. responses/ subjects/ participants needed Note: This is a restricted activity. Consult the funding announcement’s eligible and eligible activities list. 26 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Activity Definition Measure Targeted The investigation or *REQUIRED TOTAL: Targeted prosecution or investigation: Prosecution or prosecution of specific Criminal cases investigated/ prosecuted by the unit/division populations or crimes by benefiting from the grant Investigation a law enforcement *REQUIRED TOTAL: Targeted prosecution or investigation: agency or prosecutor’s Criminal cases resulting in arrest (for LEAs) or conviction/ office. deferred adjudication (for prosecutors) resulting from project activities See Licensed Counseling, *REQUIRED TOTAL: Targeted prosecution or investigation: Therapy, or Other Care Criminal cases investigated/ prosecuted by the unit/division for Sexual Assault benefiting from the grant in the LAST COMPLETE agency fiscal Response Team year activities. *REQUIRED TOTAL: Targeted prosecution or investigation: Criminal cases resulting in arrest (for LEAs) or conviction/deferred adjudication (for prosecutors) resulting from project activities in the LAST COMPLETE agency fiscal year Forensic interviews performed by a law enforcement officer or prosecutor: Individuals interviewed Training, Training and *REQUIRED TOTAL: Training, professional development, or Professional professional technical assistance: hours received Development, or development for Training or professional development: Hours received Technical professionals or Training or professional development: Individuals received Assistance volunteers in the Technical assistance: Hours received criminal justice system Received (including victim services) within the applicant’s organization. Or, technical assistance to help organizations execute programs more effectively and/or efficiently. Training or outreach the general public or targeted populations should be under the "Life, Social and Emotional Skills Development" activity. 27 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Activity Definition Measure Training, Training and *REQUIRED TOTAL: Training, professional development, or Professional professional technical assistance: Hours provided Development, or development for Training or professional development: Hours provided Technical professionals or Training or professional development: Individuals provided Assistance volunteers in the Technical assistance: Hours provided Provided criminal justice system Technical assistance: Organizations provided (including victim services) provided to others. Training or outreach for member of the general public or targeted populations should be entered under the "Life, Social and Emotional Skills Development" activity. 28 CJD Funding Announcement: Justice Assistance Grant (JAG) Program About CJD Our mission at the Criminal Justice Division is to direct much needed resources to those who are committed to making Texas a safer place and those who help victims of crime to recover and feel safe again. In carrying out this mission, we are committed to helping our grantees by actively finding ways for them to accomplish their goals and by making sure that we always have our eye to identifying the approaches that work best. We envision positive and beneficial working relationships with our grantees where we provide as much assistance as is needed and where are always ready with answers, not burdensome restrictions or requirements. CJD makes over $250 million in funding available to hundreds of organizations during state fiscal year 2017 for juvenile justice, delinquency prevention, victims services, law enforcement, prosecution, courts, specialty courts, prevention of child sex trafficking, and other typesof projects to benefit Texans. Version 1: December 15, 2016 29 REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM March 27, 2017March 27, 2017AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Budget *(Grant & Budget *(Grant & Kenith AdcoxKenith Adcox Requested By:Requested By: Source of Funds:Source of Funds: Operating)Operating) PolicePolice Department:Department: Account Number:Account Number: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Budgeted:Amount Budgeted: Other: $59,835$59,835 (Grant) (Grant) AttachmentsAttachments : : $10,000 $10,000 Amount Requested:Amount Requested: (Operating / (Operating / 1.Resolution for Firearms Training SimulatorResolution for Firearms Training Simulator Match)Match) 2.Ti Training Lab System Options 2017Ti Training Lab System Options 2017 3.Firearms Training Simulator GrantFirearms Training Simulator Grant Budgeted Item:Budgeted Item:YESYESNONO 4.DJ-JAG Announce Com PY18JAG Announce Com PY18 SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Staff has prepared an application for a Crime Initiative Grant, a federal Justice Assistance Grant (JAG), Staff has prepared an application for a Crime Initiative Grant, a federal Justice Assistance Grant (JAG), and is offered and will be administered by the Criminal Justice Division of the Governorand is offered and will be administered by the Criminal Justice Division of the Governor’’s office of the s office of the state. As part of the grant application process, a Resolution is required agreeing to the terms of the state. As part of the grant application process, a Resolution is required agreeing to the terms of the grant and designating the City Manager as the authorized official to sign grant documents and accept grant and designating the City Manager as the authorized official to sign grant documents and accept the grant if awarded. the grant if awarded. The grant project includes a Firearms Training Simulator (FATS). While the Police Department does The grant project includes a Firearms Training Simulator (FATS). While the Police Department does utilize the range for practicing and demonstrating shooting proficiency, the range does not provide utilize the range for practicing and demonstrating shooting proficiency, the range does not provide officers with realistic inofficers with realistic in--thethe--field training scenarios. field training scenarios. FATS training is more realistic because officers FATS training is more realistic because officers have access to a range of lethal and nonhave access to a range of lethal and non--lethal weapons, including infraredlethal weapons, including infrared--light emitting firearms, light emitting firearms, batons, and chemical sprays. batons, and chemical sprays. batons, and chemical sprays. batons, and chemical sprays. No match is required by the grant. If the grant is approved, however, the Police Department would need No match is required by the grant. If the grant is approved, however, the Police Department would need to purchase a 20to purchase a 20’’x 15x 15’’portable building, which would be placed in front of the current range, for the portable building, which would be placed in front of the current range, for the purposes of housing the simulator and conducting simulation exercises. Grant monies cannot be purposes of housing the simulator and conducting simulation exercises. Grant monies cannot be requested or used for this purpose. The estimated cost of acquiring a portable building of this size is requested or used for this purpose. The estimated cost of acquiring a portable building of this size is $10,000, which would have to be funded by the City. As such, this cost is being listed as a program $10,000, which would have to be funded by the City. As such, this cost is being listed as a program match. This grant is competitive in nature, and will first be reviewed by the Houstonmatch. This grant is competitive in nature, and will first be reviewed by the Houston--Galveston Area Galveston Area Council (HGAC). Council (HGAC). Should La Porte receive one of these grants, it would receive funding until next fiscal year. Staff would Should La Porte receive one of these grants, it would receive funding until next fiscal year. Staff would include this grant in the FY18 budget. include this grant in the FY18 budget. Action Required of Council:Action Required of Council: Consider approval or other action of a Resolution designating the City Manager as the authorized grant Consider approval or other action of a Resolution designating the City Manager as the authorized grant official and approving the grant application for the Firearms Training Simulator through the Criminal official and approving the grant application for the Firearms Training Simulator through the Criminal Justice Division, Office of the Governor, State of Texas. 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 RESOLUTION NO. 2017-_____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, AUTHORIZING THE POLICE FIREARMS TRAINING SIMULATOR (FATS) PROJECT BE ACQUQIRED THROUGH A GRANT FOR THE YEAR 2017-2018; APPROVING SUBMISSION OF THE GRANT APPLICATION FOR THE POLICE FIREARAMS TRAINING SIMULATOR (FATS) PROJECT VIA A LAW ENFORCEMENT GRANT; DESIGNATING THE CITY CIAL; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAWS; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the City of La Porte finds it in the best interest of the citizens of La Porte that the Police Firearms Training Simulator (FATS) project be acquired through a grant for the year 2017-2018. This grant will aid the City and Police Department in obtaining critical equipment to provide officers with valuable training related to legal and proper uses of force in police encounters involving firearms and other weapons they may encounter in their duties; and WHEREAS, the City of La Porte agrees that in the event of loss or misuse of the Criminal Justice Division funds, the City of La Porte assures that the funds will be returned to the Criminal Justice Division in full; and WHEREAS, the City of La Porte agrees that it will appropriate any matching funds in support of the grant, if applicable; and WHEREAS, The authorized official is given the power to apply for, accept, reject, alter or terminate the grant on behalf of the applicant agency. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City of La Porte approves submission of the grant application for the Police Firearms Training Simulator project, via a law enforcement grant, to the Office of the Governor, Criminal Justice Division. Section 2. The City of La Porte agrees that in the event of loss or misuse of the Criminal Justice Division funds, the City of La Porte assures that the funds will be returned to the Criminal Justice Division in full; agrees that it will appropriate any matching funds in support of the grant, if applicable; and Section 3. 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, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this Resolution 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 4. This Resolution shall be effective upon its passage and approval. Office of the Governor Criminal Justice Division Funding Announcement: Justice Assistance Grant (JAG) Program December 19, 2016 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Opportunity Snapshot Below is a high-level overview of many of the elements of this opportunity. Full information is provided in the funding announcement that follows. Purpose The purpose of this announcement is to solicit applications for projects that promote public safety, reduce crime, and improve the criminal justice system. Eligible Funding Areas Funds may be used for state and local initiatives, technical assistance, strategic planning, research and evaluation (including forensics), data collection, training, personnel, equipment, forensic laboratories, supplies, contractual support, and criminal justice information systems that will improve or enhance such areas as law enforcement programs, prosecution and court programs, prevention and education programs, corrections and community corrections programs, drug enforcement programs, system assessment or program evaluation, and technology improvement programs. Funds Available It is anticipated that up to $12M may be funded under this announcement. Budget The minimum allowed under this program is $10,000 and there is no limit on the amount of funding an applicant can request. Match There is no match requirement under this program. Project Periods Continuation projects may not exceed a 12-month period. Organizational Eligibility Applications may be submitted by state agencies, units of local government, independent school districts, senior universities, judicial districts, Native American tribes, and community supervision and corrections departments. Source of Funding Federal funding is authorized under the Omnibus Crime Control and Safe Streets Act of 1968. Process Applicants will respond to this funding announcement by completing an application in eGrants https://eGrants.gov.texas.gov. Contact Information For more information, contact the eGrants help desk at eGrants@gov.texas.gov or (512) 463-1919. 1 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Table of Contents Opportunity Snapshot ........................................................................................................................ 1 Purpose ............................................................................................................................................. 3 To Apply ............................................................................................................................................ 3 What’s New ....................................................................................................................................... 3 Changes in Eligible Activities and Expenses .......................................................................................... 3 Changes in the Application ................................................................................................................... 3 Step 1: Review the Process ................................................................................................................. 4 Timeline ................................................................................................................................................ 4 Submission Method .............................................................................................................................. 4 Step 2: Consider the Requirements ..................................................................................................... 5 Organizational Eligibility ....................................................................................................................... 5 Funding and Project Period Limits ........................................................................................................ 5 Match Requirement .............................................................................................................................. 5 Eligible Funding Areas ........................................................................................................................... 5 Ineligible Expenses and Activities ......................................................................................................... 6 Program-Specific Requirements ........................................................................................................... 6 Standard CJD Requirements ................................................................................................................. 7 Step 3: Apply via eGrants ................................................................................................................... 7 Basics ..................................................................................................................................................... 7 Profile Tab – Grant.Vendor Sub-Tab Direct Deposit Procedures .......................................................... 8 Narrative Tab – Program-Specific Questions ........................................................................................ 8 Narrative Tab – Required Certifications ............................................................................................... 9 Narrative Tab – Project Narrative ......................................................................................................... 9 Activities Tab – CJD Purpose Areas ..................................................................................................... 10 Activities Tab – Fund Source Information and Requirements ............................................................ 10 Activities Tab – OOG-Defined Project Activity Area ........................................................................... 10 Measures Tab – OOG-Defined Output Performance Measure Information ...................................... 10 Measures Tab – Custom-Defined Performance Measures ................................................................. 10 Submit.Application and Certify.Application Tabs ............................................................................... 11 Step 4: Funding Decisions and Grant Acceptance .............................................................................. 11 Selection Criteria ................................................................................................................................. 11 Announcements .................................................................................................................................. 12 Accept the Award ............................................................................................................................... 13 Appendices ...................................................................................................................................... 14 Appendix A: Required Certifications ................................................................................................... 14 Appendix B: Project Narrative ............................................................................................................ 16 Appendix C: CJD Purpose Areas .......................................................................................................... 18 Appendix D: Fund Source Information and Requirements ................................................................. 19 Appendix E: OOG-Defined Project Activity Area and OOG-Defined Output Performance Measure Information ......................................................................................................................................... 23 About CJD ........................................................................................................................................ 29 2 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Justice Assistance Grant Program Purpose The goal of the Criminal Justice Division (CJD) is to provide needed funding to improve public safety and support victims of crime by filling system gaps and promoting innovative solutions to common problems. The purpose of this program is to promote public safety, reduce crime, and improve the criminal justice system. To Apply If you are interested in applying for a grant under this program, follow the four-step process outlined below. Step One - Review the Process: Get familiar with the funding announcement and the process used for this particular program. Step Two - Consider the Requirements: Consider the eligibility requirements as well as what will be required of successful applicants. Step Three - Apply in eGrants: Compile and submit your grant application. To understand how to apply online or to register for the system go to https://eGrants.gov.texas.gov. Step Four – Funding Decisions and Grant Acceptance: Await the funding decision, which is provided through a grant award or other notice from CJD. If you receive an award, complete the acceptance process to access funds. What’s New This year’s grant program and application have several substantial differences from previous years. The changes are summarized below, but applicants should carefully review the relevant sections of this funding announcement and the eGrants application to ensure that CJD does not deem their application incomplete or ineligible for funding. Changes in EligibleActivities and Expenses Evaluation projects: There is new guidance for projects containing or entirely comprised by a project evaluation component. See “Eligible Funding Areas” for more information. Changes in the Application Narrative tab – Program-Specific Questions: There are several new questions and certifications in this section, including changed requirements regarding immigration and customs enforcement requests (only applicable to certain county or municipal governments). 3 CJD Funding Announcement: Justice Assistance Grant (JAG) Program See the section “Narrative tab – Program-Specific Questions” under Step 3 of this funding announcement for more information. Narrative tab – Project Narrative: The instructions for some sections of the Project Narrative on the eGrants application have changed. Applicants must read the “Project Narrative” section of this funding announcement to find them – they are not repeated in eGrants. Activities tab – CJD Purpose Areas (new): Applicants must assign a percentage of their project to certain purpose areas that correspond to their ultimate goal. See “Activities Tab – CJD Purpose Areas” under Step 3 of this funding announcement. Activities tab - OOG-Defined Project Activity Area and Measures tab - OOG-Defined Output Performance Measures: CJD has overhauled the classification of project activities and the associated measures. See “Activities and Measures Tabs – OOG-Defined Project Activity Area and OOG-Defined Output Performance Measure Information” under Step 3 of this funding announcement for the available activity areas and measures. Activities tab - Fund Source Information and Requirements: This section has changed. It includes several new questions about project types and activities. It also includes questions for all CJD grant programs, including some that may not apply to this funding announcement. See “Appendix D: Fund Source Information and Requirements” for the full list of questions and instructions specific to this funding announcement. New Direct Deposit procedures: Applicants will now be required to upload direct deposit forms at the time of application. See “Profile Tab – Grant.Vendor Sub-Tab Direct Deposit Procedures” under Step 3 for more information. Step 1: Reviewthe Process Timeline Action Date Funding Announcement Release 12/19/2016 Online System Opening Date 12/19/2016 Final Date to Submit an Application 02/20/2017 at 5:00PM CST Earliest Start Date 10/01/2017 Latest Start Date 12/01/2017 SubmissionMethod Applicants must submit and certify applications through via eGrants (https://eGrants.gov.texas.gov) by the deadline listed above. 4 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Step 2: Consider the Requirements Organizational Eligibility Applications may be submitted by state agencies, units of local government, independent school districts, senior universities, judicial districts, Native American tribes, and community supervision and corrections departments. Funding and Project Period Limits Funding Limits: The minimum award under this program is $10,000 and there is no limit on the amount of funding that can be requested. Project Period: Grant-funded projects must begin on or after October 1, 2017 may not exceed a 12- month grant period. 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. Available Funding: It is anticipated that up to $12 million may be funded under this announcement. The number of awards will depend upon the number of eligible applicants and availability of funding. Source of 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. Match Requirement There is no match requirement under this program. Eligible Funding Areas JAG funds may be used for state and local initiatives, technical assistance, strategic planning, research and evaluation (including forensics), data collection, training, personnel, equipment, forensic laboratories, supplies, contractual support, and criminal justice information systems that will improve or enhance such areas as: Law enforcement programs; Prosecution and court programs; Prevention and education programs; Corrections, community corrections and reentry programs; Drug enforcement programs; System assessment and program evaluation; or Technology improvement programs. 5 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Ineligible Expensesand Activities Grant funds may not be used to support the unallowable services, activities, and costs listed in the Guide to Grants (available at https://egrants.gov.texas.gov/FileDirectory/Guide_to_Grants_v8.pdf) and: 1)Body-worn cameras; 2)Construction, renovation, or remodeling; 3)Medical services; 4)Security enhancements or equipment for nongovernmental entities not engaged in criminal justice or public safety; 5)Non-law enforcement vehicles or equipment for government agencies that are for general agency use; 6)Transportation, lodging, per diem or any related costs for participants, when grant funds are used to develop and conduct training; 7)Equipment, supplies, and other direct costs associated with processing DNA evidence; 8)Law enforcement equipment that is standard department issue (not including body armor); 9)Costs associated with implementing the National Incident-Based Reporting System (NIBRS); and 10)Any other prohibition imposed by federal, state or local law or regulation. Items off the Department of Justice controlled list will be approved on a case by case basis and at the sole discretion of CJD. Including such items in the application may result in the delay or denial of applications. Program-SpecificRequirements Reporting Requirements Financial and Progress Reports: At the end of each quarter of the state fiscal year during the one-year grant period, grantees will be required to submit a financial status report via eGrants and a progress report via https://cjd.tamu.edu/ in the format required by CJD. Note: To fulfill its responsibilities under the Government Performance and Results Act of 1993 (GPRA), Public Law 103-62, and the GPRA Modernization Act of 2010, Public Law 111–352, applicants that receive funding under this solicitation must provide data that measure the results of their work done under this solicitation. For reference, the accountability measures can be found at: . http://www.bjaperformancetools.org/help/JAGMeasuresQuestionnaire.pdf Program Income Applicant must agree to comply with all federal and state rules and regulations for program income and agrees to report all program income that is generated as a result of the project's activities. Applicant must also agree to report program income to CJD through a formal grant adjustment, to secure CJD approval prior to use of the program income, to use program income only for allowable costs, and to expend program income immediately after CJD’s approval of a grant adjustment and prior to requesting 6 CJD Funding Announcement: Justice Assistance Grant (JAG) Program reimbursement of CJD funds. For the purposes of this program, the deduction method applies unless prior approval is given by CJD for a different method. Program income from asset seizures and forfeitures is considered earned when the property has been adjudicated to the benefit of the plaintiff (e.g., law enforcement entity). Regional Council Requirements Applicants must contact the criminal justice planner at their regional Council of Governments for additional local requirements that may apply, potentially including required workshops and prioritization meetings. To find contact information for your local COG, visit the Texas Association of Regional Councils website at http://txregionalcouncil.org/. Standard CJD Requirements CJD Regulations: 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. For more information on these statutes, requirements, and guidelines, consult the Guide to Grants and the Grantee Conditions and Responsibilities. Uniform Crime Reports: Eligible applicants operating a law enforcement agency must be current on reporting Part I violent crime data to the Texas Department of Public Safety (DPS) for inclusion in the annual Uniform Crime Report (UCR). To be considered eligible for funding, applicants must have submitted a full 12 months of accurate data to DPS for the most recent calendar year. Criminal History Reporting: 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 Department of Public Safety for calendar years 2011 through 2015. Immigration and Customs Enforcement Requests: An application requirement pertaining to full compliance with Department of Homeland Security detainer requests applies to all municipal or county governments that operates a subdivision or department that detains individuals after arrest for a criminal violation. Full text of this certification can be found on the Narrative tab of each application or at http://gov.texas.gov/cjd/dhs_detainerrequest. All applicants must select one of four options in their eGrants application to be considered for funding under this announcement. Step 3: Apply via eGrants Basics To apply to CJD for these grants, you must complete or make sure you have already completed some standard requirements. All of the following are needed to apply within eGrants: 1)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); 2)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; and 7 CJD Funding Announcement: Justice Assistance Grant (JAG) Program 3)Applicants must have or register for an account in http://eGrants.gov.texas.gov. Profile Tab – Grant.Vendor Sub-Tab Direct Deposit Procedures New Direct Deposit procedures: Applicants must upload the required Direct Deposit forms, New Payee Identification Form, and W9 Form for each application prior to submission. The eGrants system will not allow an application submission until these forms are attached to the application. These forms are available at https://egrants.gov.texas.gov/updates.aspxunder the Financial Management Tools section or by clicking on the hyperlinks above. Narrative Tab – Program-Specific Questions The eGrants system will provide additional information about the requirements of applying and contents of the application. Answer these questions in Section 1, Project-Specific Questions under the Narrative tab. Following are some key aspects: Specialty Courts: This section does not apply to applicants under the Juvenile Assistance Grant (JAG) Program. Applicants should enter a “0” for their registration number. Specialty courts should not apply under any funding announcement – including this one – but the Specialty Courts Funding Announcement. Note: “Teen Courts” that do not operate under Ch. 121 should apply under the Juvenile Justice Funding Announcement. Drug Testing: Applicants must describe the drug testing policy for employees and program participants, if applicable. Juvenile Case Managers: This section is relevant to projects with juvenile case managers, but all municipal and county government applicants should answer the questions below. Others may enter “No” to all questions. Applicants must categorize and list each entity that will employ or co-employ juvenile case managers under this project and if the juvenile case managers will be used for truancy or juvenile criminal court purposes. Applicants must indicate if each of those entities currently employs juvenile case managers. Applicants must also indicate if each county or municipality operating a court that will employ a juvenile case manager supported by the project: 1)Currently retains funds collected under Sec. 102.015, Texas Code of Criminal Procedure; 2)Currently collects fees to support juvenile case managers under Sec. 102.0174, Texas Code of Criminal Procedure; and 3)Has established a judicial trust fund under Sec. 36.001, Texas Government Code. Note: CJD may require, as a condition of funding, entities employing juvenile case managers supported by grant funds under this program to begin collecting the above fees and to establish the above trust fund. This may help the entities improve the sustainability of their juvenile case manager program. 8 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Evaluation Projects: Third-party evaluations of projects to determine their effectiveness. Only applicants including an evaluation in their project budget must fill out this section (and should select “Program Evaluation” as one of their “OOG-Defined Project Activity Areas” on the Activities tab of eGrants). Note: If this is an application for a project that is entirely comprised of an evaluation, provide this information in the appropriate Project Narrative sections. Tier-One Evaluations: Evaluations of programs that have been implemented and the evaluations will test the fidelity of the program based on proven models or best-practices. The evaluation also will review available program output and outcome information. Describe here the best practices/model to be used in a fidelity and performance evaluation, the goal(s) of the evaluation, and why it is needed. Tier-Two Evaluations: Evaluations directed at measuring the effectiveness of proposed new program models or significant changes in present program models. The goal of tier-two evaluations is both to measure the program’s effectiveness and to produce data and evidence necessary for others to replicate the program models and to develop best practices that CJD can use in supporting similar efforts. Describe here why this new program model is needed and the goal(s) of the evaluation. CJD is committed to developing evidence-based best practices and applicants are encouraged to, where appropriate, try new and innovative approaches and to include rigorous program evaluations in their project budgets. Evaluation costs will be reviewed on a case-by-case basis by – and approved at the sole discretion of – CJD. After CJD awards any such costs, CJD reserves the right to review, amend, and approve any contract or grant to an evaluator. CJD also reserves final approval for the professional evaluator selected, and any such evaluator must have a demonstrable track record of rigorous evaluations of similar projects. Sustainment: Applicants must indicate how many additional years, beyond this application, they plan on requesting continuation funding. If three years or fewer, applicants must explain their sustainment plan if the project is to be sustained. If more than three years, applicants must explain why other resources cannot be used to continue this project. Narrative Tab – Required Certifications There are a variety of certifications on the eGrants application that applicants are required to make when submitting their application. Applicants should carefully review these certifications, which are also found in this funding announcement’s “Appendix A: Required Certifications”. Narrative Tab – Project Narrative Within eGrants, applicants will complete several narrative fields. Each funding announcement has different instructions for the nine Project Narrative boxes. These instructions are not contained on eGrants, so applicants must review the instructions contained in this funding announcement’s “Appendix B: Project Narrative”. Failure to provide the information requested in this funding announcement may result in an application being deemed ineligible for funding. 9 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Activities Tab – CJD Purpose Areas In this new section of the Activities tab, applicants must assign percentages (adding up to 100%) of their project’s purpose areas to the available categories. Purpose areas should be considered in terms of the ultimate goal of the project, rather than how the project will accomplish its goals. Allowable Purpose Areas: The purpose areas displayed on the Activities tab in eGrants are for all CJD grant programs, but only some purpose areas are eligible under this funding announcement. See “Appendix C: CJD Purpose Areas” for a list of eligible purpose areas. Activities Tab – Fund Source Information and Requirements This section has been overhauled with substantial changes and contains questions that allow CJD to better understand the nature of the project’s activities. See “Appendix D: Fund Source Information and Requirements” for information on the information applicants must enter there. Activities Tab – OOG-Defined Project Activity Area Applicants must assign percentages of their project’s activities – based on the portion of project budget – that correspond to the eligible activity categories, and provide a brief description. Activity descriptions should reflect the information entered under the “Project Approach & Activities” section of the Project Narrative on the Narrative tab. Percentages must add up to 100. Allowable Project Activity Areas: The project activity areas displayed on the Activities tab in eGrants are for all CJD grant programs, but only some project activity areas are eligible under this funding announcement. Applicants should carefully consult this funding announcement’s “Appendix E: OOG- Defined Project Activity Area and OOG-Defined Output Performance Measure Information” for a list of eligible project activity areas. Measures Tab – OOG-Defined Output Performance Measure Information Selecting an activity on the Activities tab will cause all the CJD measurements linked to that activity to display on the Measures tab. Applicants should estimate quantities for each measure that applies to their project, or enter a “0” if a measure is not applicable. Measures should be estimates only of activities that occur during the project period. Allowable Output Performance Measures: The OOG-defined output performance measures displayed on the Measures tab in eGrants are for all CJD grant programs, but only some measures are eligible under this funding announcement. Applicants should carefully consult this funding announcement’s “Appendix E: OOG-Defined Project Activity Area and OOG-Defined Output Performance Measure Information” for a list of eligible measures. Measures Tab – Custom-Defined Performance Measures CJD encourages grantees are encouraged to add any measures that would help CJD better understand the project’s activities and performance. 10 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Submit.Application and Certify.Application Tabs After completing the application, submit the application by selecting the “Submit Initial Application” button on the bottom of the Submit.Application tab (if your application is missing information, a list of errors will appear on the Submit.Application tab. After the initial submission, the project officials will receive an email notification. The Authorized Official must then log-in to the application and certify the application by selecting the “Certify Official Application” button at the bottom of the Certify.Application tab (only visible once the application has been initially submitted). Applications are not complete until the Authorized Official has CERTIFIED the application, and they must do so BEFORE the application deadline. For support documents and “how-to” videos and other resources, including the Guide to Creating an Application, see the eGrants support page at https://egrants.gov.texas.gov/updates.aspx. Step 4: Funding Decisions and Grant Acceptance Selection Criteria Application Screening: CJD will screen all applications to ensure that they meet the requirements included in the funding announcement. Applications that meet those requirements will move forward to the merit review phase. Merit Review – Local Projects: Projects with a local impact will be reviewed by a panel appointed by the local Council of Governments using their own criteria. The merit review panels will assess the applications for quality and rank by priority, and then report their findings to the CJD executive director. Merit Review – Statewide Projects: Projects with a statewide impact will be reviewed by a panel appointed by the CJD executive director in an effort to prioritize funding. The merit review panel will assess and score each application on a 100-point scale, and then report its findings to the executive director. Scores will be based on the following criteria: Problem (20 points): The extent to which the applicant demonstrates: (1) that the problem stated warrants action; (2) that the applicant has a thorough understanding of it; and (3) how it relates to CJD’s program priorities as stated in this funding announcement. For this category, merit reviewers will consider the Project Narrative’s Problem Statement, Target Group, and Supporting Data sections, as well as information from the Activities and Measures tabs and the program-specific question on the Narrative tab. CJD may also make external data available to the panel to inform their assessment, where relevant. Project Strategy (35 points): The extent to which the applicant demonstrates: (1) that the project approach clearly addresses the problem stated; (2) that the strategy will be effective at delivering the proposed outcomes; and (3) that the proposed approach is based on logical practices, as well as on established evidence, research, science, or best or promising practices. For this category, the merit reviewers will consider the Project Narrative’s Project 11 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Approach and Activities, Evidence-Based Practices, and Supporting Data sections, as well as information from the Activities and Measures tabs and the program-specific questions on the Narrative tab. Performance Management (15 points): The extent to which the applicant demonstrates: (1) that the organization is capable of accurately assessing needs; (2) is able to manage and execute strategies and plans; (3) has the skills and capacity to measure, analyze, and respond to performance data; and (4) has a plan or method to monitor results and performance and use this information to inform changes to the project approach. For this category, the merit reviewers will consider the Project Narrative’s Performance Management and Data Management sections. Capacity and Capabilities (30 points): The extent to which the applicant demonstrates: (1) that the organization has a track record of success; (2) that it has the staff capabilities and capacity needed to deliver strong results; and (3) that it has the administrative and financial capability to manage the grant and the project well. For this category, the merit reviewers will consider the Project Narrative’s Capacity and Capabilities section. Cost Effectiveness (additional criteria using a 1-5 scale): While not part of the 100-point merit review scale, the merit reviewers will provide a separate score for cost effectiveness. This score is based on the extent to which the budget seems reasonable to carry out the project as proposed, including the established measures and goals (as outlined in the Performance Management section of the Project Narrative). For this category, the merit review panel will consider the project budget, the full project narrative, and information from the Activities and Measures tabs. Final Decisions – All Projects: The executive director will consider merit review rankings along with other factors and make all final funding decisions. Other factors may include cost effectiveness, overall funds availability, CJD or state government priorities and strategies, legislative directives, need, geographic distribution, balance of focuses and approaches, or other relevant factors. CJD may not fund all applications or may only award part of the amount requested. Per Rule 3.9 of the Texas Administrative Code, all funding decisions made by the executive director are final and are not subject to appeal. The receipt of an application by CJD does not obligate CJD to fund the grant or to fund it at the amount requested. Announcements After CJD makes final funding decisions, each applicant will receive either an unfunded notice or a preliminary decision notification or final grant award. The award will provide all of the conditions and requirements of the grant. Release of final grant awards are always contingent on CJD’s receipt of the federal grant award under which the program is funded and CJD cannot release or guarantee funding to any applicant until that award is received and acceptance is processed and a determination is made that adequate funding is available. All grantees receiving federal and state funds must comply with the applicable statutes, rules, regulations, and guidelines related to the funding source under which the 12 CJD Funding Announcement: Justice Assistance Grant (JAG) Program grant is funded. In instances where both federal and state requirements apply to a grantee, the more restrictive requirements apply. Accept the Award Applicants that receive funding through the final award process will need to follow the instructions found within the award to accept the grant officially. 13 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Appendices Appendix A: Required Certifications Applicants must certify that they will comply with the following requirements to the extent that they are applicable. CJD, at its sole discretion, will determine the applicability of requirements: A. Constitutional compliance: Applicant assures that it will not engage in any activity that violates Constitutional law including profiling based upon race. B. Information systems: Applicant assures that any new criminal justice information systems will comply with data sharing standards for the Global Justice XML Data Model and the National Information Exchange Model. C. Bulletproof vests: Applicant assures that if it plans to purchase body armor with grant funds, that it has adopted a mandatory wear policy and that all vests purchased have been tested and found to comply with the latest applicable National Institute of Justice (NIJ) ballistic or stab standards. Additionally, vests purchased must be American-made. D. Uniform Crime Reports: 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 twelve previous months. E. Criminal History Reporting: 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 Department of Public Safety for calendar years 2011 through 2015. F. DNA Testing of Evidentiary Materials. All grantees that perform DNA testing of evidentiary materials, whether supported by this grant or not, must upload any resulting eligible DNA profiles to the Combined DNA Index System (CODIS) by a government DNA lab with access to CODIS. G. Interoperable Communications. Funds to support emergency communications activities must ensure compliance with the FY 2015 SAFECOM Guidance on Emergency Communications Grants; adherence to the technical standards set forth in the FCC Waiver Order, or any succeeding FCC orders, rules, or regulations pertaining to broadband operations in the 700 MHz public safety band; and are fully coordinated with the full-time Statewide Interoperability Coordinator (SWIC) for Texas. H. Twelve-Step Programs. Grant funds may not be used to support or directly fund programs such as the Twelve Step Program which courts have ruled are inherently religious. OOG grant funds cannot be used to support these programs, conduct meetings, or purchase related materials. I. Specialty Court Certifications. If the applicant is a specialty court operated under Ch. 121 of the Texas Government Code, the following certifications apply: 1. The specialty court will develop and maintain written policies and procedures for the operation of the program. 14 CJD Funding Announcement: Justice Assistance Grant (JAG) Program 2. The applicant will submit a copy of any project evaluations, evaluation plans, recidivism studies, or related reports that are completed during the grant period to CJD. I. Generated Program Income. Unless specifically and explicitly authorized to do otherwise by OOG, at OOG’s sole discretion, the applicant will report Generated Program Income (GPI), which includes any portion of fees collected from program participants and retained by the grantee. GPI will be applied to the grant through a grant adjustment. GPI must be used to offset project costs and must be expended prior to seeking payment from OOG. J. Immigration and Customs Enforcement Requests: The full text of this certification is found at http://gov.texas.gov/cjd/dhs_detainerrequest. To be in compliance with this requirement, any county or municipal government that includes a department that detains individuals after arrest for a criminal violation must provide a letter signed by the head of each such department certifying to the requirements. This letter may be used for any application submitted to OOG for a period of up to two years from the date it is signed. If that period expires during the project period of any grant, the grantee must submit an updated letter for each such grant to remain in compliance with this requirement. All applicants must select one of the following options: Applicant is not a county or municipal government. Applicant is a county or municipal government and does not include any department that detains individuals after arrest for a criminal violation at any time. Applicant is a county or municipal government that includes department(s) that detain individuals after arrest for a criminal violation. Letters certifying compliance and signed by the heads of all such departments have been uploaded to this application. Applicant is a county or municipal government that includes department(s) that detain individuals after arrest for a criminal violation. The Authorized Official has read the certification found at http://gov.texas.gov/cjd/dhs_detainerrequest. Further, the Authorized Official will not be submitting signed letters certifying compliance from the heads of all such departments and understands that failure to comply with this certification may result in OOG, at its sole discretion, rejecting this application and any other application from the relevant county or municipal government. K. Civil Rights Liaison: A civil rights liaison who will serve as the grantee's civil rights point of contact and who will be responsible for ensuring that the grantee meets all applicable civil rights requirements must be designated. The designee will act as the grantee's liaison in civil rights matters with CJD and with the federal Office of Justice Programs. Overall Certification: Each applicant agency must certify to the specific requirements detailed above as well as all requirements within the CJD funding announcement and Criminal Justice Division & Homeland Security Grants Division Grantee Conditions and Responsibilities document to be eligible for this program. 15 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Appendix B:ProjectNarrative Within eGrants, applicants will complete several narrative fields. Each funding announcement has different instructions for the nine Project Narrative boxes. These instructions are not contained on eGrants, so applicants must review the instructions below. Failure to provide the information requested may result in an application being deemed ineligible for funding. Project Abstract. Provide a brief summary of the proposed project. Do not share new information here that you do not include in the questions below. This abstract is a description of your project and intended for the public and policy makers. Be sure that the summary is easy to understand by a person not familiar with your project. (Limit to 1500 characters.) Problem Statement: Provide a description of the nature and scope of the problem in your service area that this proposed project will address. This must be a statement of the core, underlying problem. A lack of resources is not, in and of itself, a problem. Applicant should use the “Performance Management” section below to demonstrate how the Project Approach & Activities will address this problem. Applicants should use the “Supporting Data” to provide the numbers that back up the description of the problem in this section. Supporting Data: Provide supporting data, including baseline statistics and the sources of your data, to provide evidence that the problem exists, its size and scope, and its effects on the target population. Do not use statewide data for a local problem or national data for a statewide problem. Data on particular characteristics of the target population should be entered below under “Target Group.” Project Approach & Activities: Provide the core information needed to understand the methodologies, approaches, and activities to be employed by the project. Provide a rationale for choosing this particular model. Any therapy or licensed counseling provided should include a description of the modality/framework used. A reader should also be able to understand how the approach and activities tie to solving the stated problem. Applicants should use the “Evidence-Based Practices” section below to cite the specific research, evidence, or established best/promising practices that provide the basis for the approach and activities described in this section. Capacity & Capabilities: Describe the applicant organization’s background as well as organizational and staff capabilities and qualifications to carry out this specific project using the approaches and activities provided above. Provide a brief summary of any collaborative partnerships created for the purpose of the proposed project. If the applicant indicates on the Activities tab that licensed or certified personnel will perform work, list each license or certification and upload a list of each person and their relevant corresponding license or certification. Empty positions requiring a license or certification should be noted. Performance Management: Provide an understanding of how the applicant organization will measure success for this project. What are the project’s goals and objectives and what are the project’s performance measures, both output and outcome? How do these goals, objectives, and measures tie to the problem that the project seeks to solve? What is the current baseline information for these measures as well as the goals for the project period? 16 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Goals are broad statements that indicate the general intentions of the project to achieve some outcome. They do need to be measurable in and of themselves and may be abstract in nature. Objectives are clear, tangible, and specific statements of what the project is trying to achieve. Objectives should be expressed in the following form: To \[reduce/increase/enhance/etc.\] \[something\], by \[x amount\], by \[dd/mm/yy date\]. A project can have multiple objectives. Measures use data to provide verifiable, numeric information that tie to one or more objectives and indicate progress toward its achievement. Measures might include volume, time savings, cost savings, resource savings, success rates, conformance rates, timeliness, perception shifts, or other factors. (The most relevant and impactful project-specific measures must be included under the Measures tab in eGrants.) Data Management: Provide an understanding of how the applicant organization plans to collect, track and maintain the data needed to determine whether the project is meeting the goals, objectives, and measures stated above. Describe any methods, mechanisms, or tools used to generate measures. Applicants should give confidence that the data they collect will be accurate, maintained, and analyzed in a manner that enables them to adapt to changing assessments of the problem or project performance, and to evaluate and document the effectiveness of the project. Target Group: Describe the population that this project plans to provide or support direct services to. Include the size and basic demographics for the people served, as well as the challenges they face, and any other information relevant to the project. Be specific and use supporting data. Applicants should demonstrate there that they understand their target group well enough to effectively carry out the project. Evidence-Based Practices: Justify the selection of the methods, approach, and activities described above. Applicants should preferably be able to cite the research, evidence, or published best/promising- practices model used as the basis for the project’s design. In case of an equipment or technology grant, what evidence or best/promising-practices model is there to support the purchase? Wherever possible, provide at least one citation or link. If the project approach and activities described above are not based on existing evidence, the applicant must describe why they believe the method to be promising. Failure to adequately provide justification for the project design may result in the project not being funded in favor of other projects based on evidence, established best/promising practices, or adequately explained. 17 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Appendix C: CJD Purpose Areas In this new section of the Activities tab, applicants must assign percentages (totaling 100%) of their project’s purpose areas to the available categories, based on an estimate of the funds dedicated to each area. Purpose areas should be considered in terms of the ultimate goal of the project, rather than how the project will accomplish its goals. Allowable Purpose Areas Under This Funding Announcement Purpose AreaDescription Truancy: To specifically prevent truancy in at-risk populations BEFORE they engage Prevention in truant conduct (10+ absences in 6 months) Truancy: To intervene specifically with children who have engaged in truant Intervention conduct (10+ absences in 6 months) Juvenile Delinquency: To prevent juvenile delinquency among at-risk populations BEFORE they Prevention commit an offense Juvenile Delinquency: To intervene with minors who have committed juvenile offenses Intervention Disproportionate Minority Contact To reduce disproportionate minority contact with the criminal justice system Adult Criminal Behavior: To prevent crime BEFORE it occurs Prevention Adult Criminal Behavior: To intervene with adults who have committed criminal offenses (through Intervention specialty courts, probation projects, etc., for non-incarcerated individuals) Safety and Security: To increase safety and security on K-12 or higher education campuses Educational campuses Safety and Security: To increase safety and security for inmates and/or corrections personnel Jails or Prisons adult state or local jails or prisons Safety and Security: To increase safety and security at juvenile justice facilities Juvenile Facilities Safety and Security: To increase safety and security at facilities serving victims Victim's Services Facilities Safety and Security: To increase the safety and security of the general public (general law General enforcement) Prosecution and Investigation To more effectively investigate and prosecute crimes Court System Improvements To increase the effectiveness and/or efficiency of courts (non- prosecution/investigation) Corrections and Re-Entry To reduce criminal recidivism among incarcerated or formerly incarcerated individuals Victim Services To provide services to victims of crime 18 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Appendix D:Fund Source Information and Requirements This appendix contains the questions asked in the “Fund Source Information and Requirements” section of the Activities tab on the eGrants application. Applicants should only enter information for items that apply to their project. Boxed comments in italics are special instructions for this funding announcement. Section 1: Program Enrollment and Completion This question is relevant for projects that serve or enroll specific individuals, rather than targeting the general public. This could include training, providing services, treatment programs, or offender programs Applicants under the Justice Assistance Grant Program who should use this section to indicate the number of individuals who will participate in the program. “Successfully completing” means meeting all requirements and graduating with the accompanying dropping of charges, etc. Most applicants will enter their program length in days. Number of individuals NEWLY enrolled in program during the project period Number of individuals successfully completing program during the project period Number of carry-over individuals enrolled in the program at the beginning of the project period Choose one (most applicable to the project): Typical program/services hours OR Typical program/services days Section 2: Special Project Types and Information Applicants should only select options below that relate to a specific aspect of their project. If the project only circumstantially addresses a below option, answer “No” for that project type. Applicants should select all special project types that apply to their project: Task forces: Project will support the operations and coordination activities of a task force. If yes, list the agencies or organizations that participate in the task force. Gang activity: Project involves a focus specifically on gang activity. Transnational and organized crime: Project involves a focus specifically on transnational and organized crime Border activities: Project involves a focus specifically related to the Texas-Mexico border. Human trafficking (select all that apply): 1) Project focuses on human trafficking; 2) Project focuses on trafficking of minors; 3) Project focuses on sex trafficking; 4) Project focuses on labor trafficking. Section 3: Juvenile Justice Projects Applicants who are not directly and specifically addressing juvenile crime should select the last option, “Project does NOT have a particular focus on juvenile crime”. Applicants should select all options that describe the project if it addresses juvenile justice. 19 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Diversion. Programs to divert youth from entering the juvenile justice system including restorative justice programs. Mental Health Services. Programs providing mental health services for youth in custody in need of such services including, but are not limited to assessment, development of individualized treatment plans, and discharge plans. Aftercare/Reentry. Community-based programs that prepare targeted youth to successfully return to their homes and communities after secure confinement. These programs focus on preparing youth offenders for release and providing a continuum of follow up post- placement services to promote successful reintegration into the community. After-School Programs. Programs that provide at-risk youth and youth in the juvenile justice systems with a range of age-appropriate activities, including tutoring, mentoring, and other educational and enrichment activities. Alternatives to Detention. These are community- and home-based alternatives to incarceration and institutionalization including for youth who need temporary placement such as crisis intervention, shelter and after-care and for youth who need residential placement such as a continuum of foster care or group home alternatives that provide access to a comprehensive array of services. Community-Based Programs and Services. These programs and services are those that work pre- and post-confinement with: a) parents and other family members to strengthen families to help keep youth in their homes; b) youth during confinement and their families to ensure safe return of youth home and to strengthen the families; and c) parents with limited English-speaking ability. Delinquency Prevention. Comprehensive juvenile justice and delinquency prevention programs that meet needs of youth through collaboration of the many local systems before which a youth may appear, including schools, courts, law enforcement agencies, child protection agencies, mental health agencies, welfare services, health care agencies and private nonprofit agencies offering youth services. Girl-Focused Services. Services to address the needs of female offenders in the juvenile justice system. School Programs. Education programs or supportive services to encourage youth to remain in school and to prevent truancy. School programs may include support for school resource officers, law-related education, and other programs focused on school safety. Substance and Alcohol Abuse. Programs, research, or other initiatives to address the use and abuse of illegal and other prescription and nonprescription drugs and the use and abuse of alcohol. Programs include control, prevention, and treatment. Disproportionate Minority Contact. Programs, research, or other initiatives primarily to address situations where there are a disproportionate number of people from one or more minority groups coming into contact with the juvenile justice system. Mentoring, Counseling and Training Programs. Programs to develop and sustain a one-to- one supportive relationship between a responsible adult age 18 or older (mentor) and an at- 20 CJD Funding Announcement: Justice Assistance Grant (JAG) Program risk youth, youth who have offended or youth with a parent or legal guardian who is or was incarcerated (mentee) that takes place on a regular basis. These programs may support academic tutoring, vocational and technical training, and drug and violence prevention counseling. Job Training. Projects to enhance the employability of youth or prepare them for future employment. Such programs may include job readiness training, apprenticeships, and job referrals. Aptitude Testing. Job or life skills training programs that include aptitude testing to help young people understand their skills and abilities to plan a course towards continuing education (i.e. technical school, associate’s degree program, or a bachelor’s degree program). Diversion in a Rural Setting. Projects that focus on diversion of minors in rural settings. Diversion targeting at risk youth and providing early detection services. Efforts concentrated on young first time offenders and offer an alternative to traditional entry into the juvenile justice system. Project does NOT have a particular focus on juvenile crime Section 4: Campus-Based Projects Applicants should enter a number in this section if their project specifically targets or serves particular educational campuses. For the list of campuses section, programs that specifically target an entire school district may simply list the district name. If a project is NOT tied to a particular campus or serves student-age populations in general, enter a “0” for the number of students and enter “N/A” for the list of campuses. If this project is based on – or serves – one or more specific educational campuses (K-12 or higher education), how many total students at all campuses will be served by the project and list each educational campus that will be served by this project. Section 5: Crime or Victim Type This question is for justice projects that target specific crimes and ALL victim services projects. Others may enter “0” for each option below. Applicants to serve victims of or prosecute/investigate/prevent exclusively child sex trafficking victims should assign 100% to that category. Select the type(s) of crime or crime victim this project targets and provide the percentage of time dedicated to each. Applicants with projects that target multiple-offense offenders or multiple- victimization victims should assign percentages that best describe the activity. Percentages may not exceed 100%: Sexual Assault Domestic Abuse Child Abuse DUI / DWI Crashes 21 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Homicide Assault Adults Molested as Children Elder Abuse Robbery Stalking Dating/Acquaintance Violence Human Trafficking Child Sex Trafficking All Other Crimes 22 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Appendix E:OOG-Defined Project Activity Areaand OOG-Defined Output Performance Measure Information This section have substantial changes from last year, and are important for CJD’s analysis of each application’s merits and of the entire grant program. CJD understands that these figures are estimates, but applicants should be as accurate as possible. Applicants receiving awards will be asked to follow-up with actual measures during and after the grant project period. Activities: Applicants must assign percentages of their project’s activities – based on the portion of project budget – that correspond to the eligible activity categories, and provide a brief description. Activity descriptions should reflect the information entered under the “Project Approach & Activities” section of the Project Narrative on the Narrative tab. Percentages must add up to 100. OOG-Defined Measures: Activating particular activities will also activate all of the CJD measurements assigned to that activity. Applicants should estimate quantities for each measure that applies to their project, or enter a “0” if a measure is not applicable. Measures should be estimates only of activities that occur during the project period. Allowable Activities and Measures: The Activities tab displays activities available under other CJD grant programs, but not all of them are allowable under this program. The Measures tab will display all the measures linked to that activity, including those meant for other CJD programs and not allowable under this funding announcement. Applicants should carefully consult the list below to see which activities and OOG-defined measures are allowable under this funding announcement. “Required Total” Measures: Some measures are marked as a “Required Total.” These measures are for the volume of each activity that an applicant has selected on the Activities tab. For example, if an applicant selects the “Counseling or Substance Abuse” activity, that will activate the measure “REQUIRED TOTAL: Counseling or treatment for substance abuse: Individuals receiving” on the Measures tab. With rare exceptions, applicants should be able to supply estimates for these Required Total measures. If for some reason that is not possible, an applicant must explain why in the “Performance Measurement” section of the Project Narrative on the Narrative tab. Activities by Licensed or Credentialed Professionals: Any applications with activities or measures indicating services performed by a licensed or credentialed professional should list each specific license or credential in the “Capacity & Capabilities” section of the Project Narrative on the Narrative tab. Activities using specific models or framework: Any applications indicating specialized skills training, support, or treatment should specify the model or modality/framework type under the “Project Approach & Activities” section of the Project Narrative on the Narrative tab. 23 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Allowable Activities and Measures Under This Funding Announcement Activity Definition Measure Casework, Non-*REQUIRED TOTAL: Casework, non-licensed counseling, Support not necessarily Licensed delivered by a licensed individual advocacy, or other support: Individuals receiving Counseling, professional and not *REQUIRED TOTAL: Casework, non-licensed counseling, Individual aimed at developing individual advocacy, or other support: Hours delivered by Advocacy, or specific life, social, or EMPLOYEES Other Support emotional skills. *REQUIRED TOTAL: Casework, non-licensed counseling, individual advocacy, or other support: Hours delivered BY Enter any substance VOLUNTEERS abuse-related activities Casework/support/care needs assessment NOT performed by a under “Counseling or licensed therapist: Individuals receiving Treatment for Substance Casework, non-licensed counseling, advocacy, or other support: Abuse”. Individuals receiving AFTERCARE Mentoring (general): Individuals receiving Peer support (general): Individuals receiving Crisis intervention: Individuals receiving Case management or advocacy (general): Individuals receiving Advocacy/ accompaniment / assistance for criminal justice system interactions: Victim individuals receiving Victims-offender meetings: Victims participating Referrals to other agencies: Individuals referred Counseling or Treatment for substance *REQUIRED TOTAL: Counseling or treatment for substance Treatment for abuse, including licensed abuse: Individuals receiving therapy, non-licensed Substance Abuse Substance abuse treatment by a LICENSED professional: counseling (peer Individuals receiving counseling, mentoring, Substance abuse AFTERCARE counseling by a LICENSED etc.), and medically professional assisted treatment. Substance abuse counseling or support by peers or caseworkers: Individuals receiving Note: Substance abuse Substance abuse AFTERCARE counseling by peers or treatment is generally caseworkers: Individuals receiving ineligible under VOCA- Substance abuse treatment using medically assisted treatment funded programs. (MAT): Individuals receiving Alcohol and/or drug testing – random: Individuals receiving Alcohol continuous monitoring: Individuals receiving Counseling, Counseling or therapy *REQUIRED TOTAL: Counseling, therapy, or other care Therapy, or Other delivered by licensed performed by a licensed professional: Individuals receiving Care Performed professionals. *REQUIRED TOTAL: Counseling, therapy, or other care by a Licensed performed by a licensed professional: Hours delivered Professional For professional Licensed counseling/therapy: Individuals assessed substance abuse Licensed trauma-informed therapy: individuals receiving treatment, use the Licensed treatment for mental health disorders: Individuals "Substance Abuse receiving Treatment" activity. Licensed counseling/ therapy AFTERCARE: Individuals receiving Multi-disciplinary care teams: Individuals receiving care 24 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Activity Definition Measure Equipment and Includes equipment *REQUIRED TOTAL: Equipment or technology: Organizations acquisition and training directly using Technology specifically on the *REQUIRED TOTAL: Equipment or technology: Individuals/ equipment/technology operators equipped purchased with grant funds. General Law Law enforcement and General law enforcement: Arrests or new prosecutions Enforcement or public safety activities. resulting from grant (LEAs only) Public Safety Examples: increased General law enforcement: Convictions or deferred patrols, law adjudications resulting from grant (prosecutors only) enforcement officer Public outreach/information sessions: Total individuals overtime, or public attending trainings/ seminars/ Public outreach/information sessions: Sessions held outreach sessions, including those with a victim focus. Does not include equipment- specific activities (implementation, training), training, or activities covered by other categories. Instruction and Training, counseling or *REQUIRED TOTAL: Instruction or support for academic Support for other support aimed at programs: Individuals receiving Academic enrolling in or *REQUIRED TOTAL: Instruction or support for academic Programs completing formal programs: Hours delivered academic credentials Academic tutoring: Individuals receiving (such as a GED). Academic classroom or course instruction: Individuals receiving Academic credentials (GED or degree): Individuals receiving Any job training or vocational credential College admissions: Individuals receiving related support/ should be listed under counseling “Job and Workforce College admissions: Individuals receiving related support/ Services”. counseling WHO ENROLL in a new higher education program Instruction and Training, assessment, or *REQUIRED TOTAL: Instruction or support for employment or Support for placement aimed at the workforce: Individuals receiving Employment or attaining or improving *REQUIRED TOTAL: Instruction or support for employment or the Workforce employment. the workforce: Hours delivered Job, aptitude, or skills ASSESSMENT: Individuals receiving Job placement/ seeking support: Individuals receiving Job placement/ seeking support: Individuals receiving WHO OBTAIN employment Job or skills TRAINING (not towards a particular certification or license): Individuals receiving Professional or technical certification or license: Individuals receiving instruction or training Professional or technical certification or license: Individuals receiving instruction or training WHO OBTAIN the certification or license 25 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Activity Definition Measure Instruction and Instruction for program *REQUIRED TOTAL: Instruction or support for life, social, and Support for Life, participants, targeted emotional skills: Individuals receiving Social, or populations, at-risk *REQUIRED TOTAL: Instruction or support for life, social, and Emotional Skills populations, etc., to emotional skills: Individuals receiving: Hours delivered develop life, social or Instruction in parenting skills: Individuals receiving emotional skills. Instruction in non-parenting family skills: Number of CHILDREN under 18 receiving Training for criminal Instruction in dating or domestic violence prevention: Number justice system of NON-OFFENDERS receiving professionals should be Instruction in dating or domestic violence prevention: Number entered under the of OFFENDERS receiving "training and professional Instruction in personal finance skills: Individuals receiving development" activity. Instruction in gang involvement prevention: Individuals receiving Instruction in violence prevention: Individuals receiving Instruction trafficking prevention: Individuals receiving Instruction in bullying prevention skills: Individuals receiving Instruction in homelessness/ runaway prevention or recovery skills: Individuals receiving Materials or Activities specifically to <no measures> Curriculum support Development developing/publishing materials or training curricula related to the criminal justice system. Program Evaluation of criminal *REQUIRED TOTAL: Program evaluation and assessment: Evaluation and justice programs and Programs assessed Assessment assessment of organizational or system effectiveness, needs, and/or appropriate responses. Research or Research on, analysis of, Research or statistical activities: Target number of responses/ Statistical or data collection subjects/ participants Activities regarding the criminal Research or statistical activities: Minimum number of justice system. responses/ subjects/ participants needed Note: This is a restricted activity. Consult the funding announcement’s eligible and eligible activities list. 26 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Activity Definition Measure Targeted The investigation or *REQUIRED TOTAL: Targeted prosecution or investigation: Prosecution or prosecution of specific Criminal cases investigated/ prosecuted by the unit/division populations or crimes by benefiting from the grant Investigation a law enforcement *REQUIRED TOTAL: Targeted prosecution or investigation: agency or prosecutor’s Criminal cases resulting in arrest (for LEAs) or conviction/ office. deferred adjudication (for prosecutors) resulting from project activities See Licensed Counseling, *REQUIRED TOTAL: Targeted prosecution or investigation: Therapy, or Other Care Criminal cases investigated/ prosecuted by the unit/division for Sexual Assault benefiting from the grant in the LAST COMPLETE agency fiscal Response Team year activities. *REQUIRED TOTAL: Targeted prosecution or investigation: Criminal cases resulting in arrest (for LEAs) or conviction/deferred adjudication (for prosecutors) resulting from project activities in the LAST COMPLETE agency fiscal year Forensic interviews performed by a law enforcement officer or prosecutor: Individuals interviewed Training, Training and *REQUIRED TOTAL: Training, professional development, or Professional professional technical assistance: hours received Development, or development for Training or professional development: Hours received Technical professionals or Training or professional development: Individuals received Assistance volunteers in the Technical assistance: Hours received criminal justice system Received (including victim services) within the applicant’s organization. Or, technical assistance to help organizations execute programs more effectively and/or efficiently. Training or outreach the general public or targeted populations should be under the "Life, Social and Emotional Skills Development" activity. 27 CJD Funding Announcement: Justice Assistance Grant (JAG) Program Activity Definition Measure Training, Training and *REQUIRED TOTAL: Training, professional development, or Professional professional technical assistance: Hours provided Development, or development for Training or professional development: Hours provided Technical professionals or Training or professional development: Individuals provided Assistance volunteers in the Technical assistance: Hours provided Provided criminal justice system Technical assistance: Organizations provided (including victim services) provided to others. Training or outreach for member of the general public or targeted populations should be entered under the "Life, Social and Emotional Skills Development" activity. 28 CJD Funding Announcement: Justice Assistance Grant (JAG) Program About CJD Our mission at the Criminal Justice Division is to direct much needed resources to those who are committed to making Texas a safer place and those who help victims of crime to recover and feel safe again. In carrying out this mission, we are committed to helping our grantees by actively finding ways for them to accomplish their goals and by making sure that we always have our eye to identifying the approaches that work best. We envision positive and beneficial working relationships with our grantees where we provide as much assistance as is needed and where are always ready with answers, not burdensome restrictions or requirements. CJD makes over $250 million in funding available to hundreds of organizations during state fiscal year 2017 for juvenile justice, delinquency prevention, victims services, law enforcement, prosecution, courts, specialty courts, prevention of child sex trafficking, and other typesof projects to benefit Texans. Version 1: December 15, 2016 29 REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM March 27, 2017March 27, 2017AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Budget Budget -- 001 001 Traci LeachTraci LeachSource of Funds:Source of Funds: Requested By:Requested By: ContingencyContingency AdministrationAdministrationAccount Number:Account Number: Department:Department: $250,000$250,000 Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted: $362,457.94$362,457.94 Other:Amount Requested:Amount Requested: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1.Development AgreementDevelopment Agreement SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Staff has been working with Oakland Land and Development Company (Oakland) to facilitate Staff has been working with Oakland Land and Development Company (Oakland) to facilitate development in Sector 23 of the City. Sector 23 is generally bound by Little Cedar Bayou to the east, W. development in Sector 23 of the City. Sector 23 is generally bound by Little Cedar Bayou to the east, W. thththth D Street to the north, 15D Street to the north, 15 and 14 and 14 Streets to the west and W. I right of way to the south. Oakland has Streets to the west and W. I right of way to the south. Oakland has closed many of the rightsclosed many of the rights--ofof--way within this area to facilitate aggregation of property and subsequent way within this area to facilitate aggregation of property and subsequent development. The value of the rightsdevelopment. The value of the rights--ofof--way that Oakland has closed is $362,457.94.way that Oakland has closed is $362,457.94. Oakland has constructed several public streets within Sector 23 (W. F Street, S. 14th Street, and W. E Oakland has constructed several public streets within Sector 23 (W. F Street, S. 14th Street, and W. E Street) to facilitate access and approached the City to assist in developing an Street) to facilitate access and approached the City to assist in developing an office/industrial/warehouse development in Sector 23. The attached development agreement provides office/industrial/warehouse development in Sector 23. The attached development agreement provides incentives to Oakland provided that specific performance parameters are met. The development incentives to Oakland provided that specific performance parameters are met. The development agreement would essentially agreement would essentially agreement would essentially agreement would essentially ““““reimbursereimbursereimbursereimburse””””Oakland for the cost of the rightOakland for the cost of the rightOakland for the cost of the rightOakland for the cost of the right----ofofofof----way closures (not the way closures (not the way closures (not the way closures (not the roadway construction) within Sector 23 in exchange for a minimum capital investment of $12 million roadway construction) within Sector 23 in exchange for a minimum capital investment of $12 million over six (6) years.over six (6) years. In order to be eligible for an incentive payment, Oakland must demonstrate that: In order to be eligible for an incentive payment, Oakland must demonstrate that: A certificate of occupancy has been obtained for the improvement; andA certificate of occupancy has been obtained for the improvement; and The improvement is a minimum of 3,000 square feet.The improvement is a minimum of 3,000 square feet. The amount of the incentive payment will be determined as a percentage of the total minimum capital The amount of the incentive payment will be determined as a percentage of the total minimum capital investment that is required, $12 million. In this way, the development agreement is structured to allow investment that is required, $12 million. In this way, the development agreement is structured to allow Oakland flexibility in both layout and timing for pay requests based on the speed at which the company Oakland flexibility in both layout and timing for pay requests based on the speed at which the company completes construction of eligible improvements. The company will not receive the full value of the completes construction of eligible improvements. The company will not receive the full value of the incentive until and unless it demonstrates the minimum capital investment of $12 million.incentive until and unless it demonstrates the minimum capital investment of $12 million. The agreement extends for a six (6) year term. Any construction not completed by the end of the term The agreement extends for a six (6) year term. Any construction not completed by the end of the term will not be eligible for an incentive payment. Conversely, should the company complete $12 million in will not be eligible for an incentive payment. Conversely, should the company complete $12 million in eligible improvements earlier than the six year deadline, the agreement sets a not to exceed amount so eligible improvements earlier than the six year deadline, the agreement sets a not to exceed amount so additional improvements completed after the $12 million threshold is met will not be eligible for incentive additional improvements completed after the $12 million threshold is met will not be eligible for incentive payments. All eligible improvements must be located within Sector 23 and must be on property owned by Oakland. All eligible improvements must be located within Sector 23 and must be on property owned by Oakland. It is difficult to calculate a payback schedule because the payback will be determined by the It is difficult to calculate a payback schedule because the payback will be determined by the construction schedule and value of the improvements as they come online. However, for reference, construction schedule and value of the improvements as they come online. However, for reference, $12 million in value would generate an annual property tax amount of $85,200 each year. $12 million in value would generate an annual property tax amount of $85,200 each year. Funding for payments made pursuant to this agreement are found in the General Fund Contingency Funding for payments made pursuant to this agreement are found in the General Fund Contingency Account, which currently does not have enough funds to cover the full value of the incentive agreement, Account, which currently does not have enough funds to cover the full value of the incentive agreement, which is $362,457.92. However, the full value will not be paid out in any single fiscal year. Incentive pay which is $362,457.92. However, the full value will not be paid out in any single fiscal year. Incentive pay requests will be submitted based on successful completion of construction and submission of the requests will be submitted based on successful completion of construction and submission of the required documentation. As incentive pay requests are received and validated, staff will bring each required documentation. As incentive pay requests are received and validated, staff will bring each request to Council for consideration. It is at that time that funds will be officially allocated from the request to Council for consideration. It is at that time that funds will be officially allocated from the Contingency Account. Contingency Account. Action Required of Council:Action Required of Council: Consider approval or other action of a Chapter 380 development agreement between the City of La Consider approval or other action of a Chapter 380 development agreement between the City of La Porte and Oakland Land and Development Company for an amount not to exceed $362,457.94.Porte and Oakland Land and Development Company for an amount not to exceed $362,457.94. Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate EXHIBITA:DEVELOPMENTMAP EXHIBITB SECTOR 23 DEVELOPMENT 78878979079179212 W D ST 119 797796795794793120 Red=Sector23Boundary W E ST W E ST Blue=PropertyOwnedby OaklandLandCo. Green=OwnedbyAffiliate 122 companyandmaytransfer 824825826827828121 deedtoOaklandaspartof thedevelopment W F ST 143 833832831830829144 T W G S 146 860861862863864145 866 869868867865168 896897898899900169 1 inch = 300 feet EXHIBITC March 18, 2016 Bill Campbell ACW Construction 1404 N. Sam Houston Parkway, E. #140 Houston, Texas 77032 RE: Letter of Acceptance / Notice to Proceed th Civil Construction Plans for W. F Street, S. 14 Street, and W. E Street Dear Mr. Campbell: Your plans for roadway, water, and sanitary sewer line construction have been approved by the City of La Porte. You are hereby authorized to proceed with construction in accordance with the approved plans. Please contact Don Pennell at least 48 hours prior to commencement of construction. Mr. Pennell can be reached via phone at 281-470-5105 or by email at pennelld@laportetx.gov. If you have any further questions, please don’t hesitate to contact me directly at 281-470-5063 or via email at enseye@laportetx.gov. Sincerely, Eric J. Ensey, A.I.C.P. City Planner City of La Porte 604 W. Fairmont Parkway Phone: (281) 471-5020 Planning and Development La Porte, TX 77571-6215 Fax: (281) 470-5005 EXHIBITC:STREETPLANS EXHIBITD Council Agenda Item Council Agenda Item March 27, 2017 March 27, 2017 9.ADMINISTRATIVE REPORTSADMINISTRATIVE REPORTS •La Porte Development Corporation Board Meeting, Monday, April 10, 2017La Porte Development Corporation Board Meeting, Monday, April 10, 2017 •City Council Meeting, Monday, April 10, 2017City Council Meeting, Monday, April 10, 2017 •Planning and Zoning Commission Meeting, Thursday, April 20, 2017Planning and Zoning Commission Meeting, Thursday, April 20, 2017 •Zoning Board of Adjustment Meeting, Thursday, April 27, 2017Zoning Board of Adjustment Meeting, Thursday, April 27, 2017 10.COUNCIL COMMENTSCOUNCIL COMMENTS regarding matters appearing on the agenda; recognition of regarding matters appearing on the agenda; recognition of communitymembers, city employees, and upcoming events; inquiry of staff regarding specific factual communitymembers, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies information or existing policies ––Councilmembers J. Martin, K. Martin, Kaminski, Zemanek, Leonard, Councilmembers J. Martin, K. Martin, Kaminski, Zemanek, Leonard, Engelken, Earp, Clausen, and Mayor RigbyEngelken, Earp, Clausen, and Mayor Rigby 11.ADJOURNADJOURN ****************************************************************** ******************************************************************