HomeMy WebLinkAbout03-09-20 Regular Meeting of the La Porte City Council (2)
Office of the Mayor
WHEREAS, the North American Process Technology Alliance (NAPTA) is the recognized organization for the
advancement of process technology education and careers and is the standard-bearer of the process technology
education and careers curriculum; and
WHEREAS, NAPTA supports the development of a diverse and qualified process technology talent pool to meet
workforce needs in North America, as process technology graduates impact the bottom line for industry by increasing plant
asset utilization, decreasing employee selection costs, reducing new employee turnover, dropping job training costs, and
decreasing the number of safety-related incidents; and
WHEREAS, San Jacinto College has approximately 450 process technology graduates annually and is serving as the host
site for the 2020 NAPTA Troubleshooting Skills Competition; and
WHEREAS, the NAPTA Troubleshooting Skills Competition is designed as a format to help students be exposed to more
real-time plant scenarios while working in a simulated environment; enhances problem solving and critical thinking skills of
advanced level process technology students; develops safety culture, teamwork, and communication skills; and provides
students a venue to interact with industry representatives; and
WHEREAS, the City of La Porte expresses its appreciation to San Jacinto College and the North American Process
of the Texas Gulf Coast region.
NOW, THEREFORE, I, Louis R. Rigby, Mayor, do hereby proclaim March 9, 2020, as
NAPTA Troubleshooting Skills
Competition Day
th
In Witness Whereof: I have hereto set my hand and caused the Seal of the City to be affixed hereto, this, the 9 day of
March, 2020.
City of La Porte
______________________________
Louis R. Rigby, Mayor
Recognition of the Retirement of Peggy Lee, Office Coordinator
Peggy Lee began her career with the City of La Porte as a part-time clerk with the Parks
and Recreation Department in March 1990. She performed numerous duties for several
staff members before her promotion to a full-time position as Planning Department
Secretary in June 1991. Peggy excelled in this position, where she coordinated
department purchasing and personnel record keeping, department records management,
and project contract administration, and maintained the CIP project budgets. In this role,
she also served as secretary to the Planning and Zoning Commission, and transcribed
detailed minutes for each meeting. In 1993, Peggy was recognized as Employee of the
Quarter.
Peggy was promoted to her current position as Office Coordinator for the Planning
Department in February 2005, where she continued to distinguish herself and assume
additional duties. Leading up to and since taking on this role, Peggy has maintained the
Department’s daily administrative and budgetary activities through several transitions in
Department leadership. Peggy became known for assisting and responding to citizen
inquiries with aplomb. She became the lead coordinator for CIP project funding for major
projects such as the HOME Grant Program, Fire Stations 2 & 3, Fire Station 2/EMS
Remodel, and the Fire Training Room Facilities. Peggy was also instrumental in creating
the Planning Department’s GIS Division. Based on her research and analysis, the
Department was able to realign duties, eliminate vacant positions, and add two new
employees to create the GIS Division, without any impact on the City’s budget. In 2005,
Peggy was again recognized as Employee of the Quarter and also as the Employee of the
Year.
Peggy has been a constant in the Planning Department, and has devoted many long hours
to serving the City to get the job done. Peggy is valued for her friendship, guidance,
professionalism, attention to detail, dedication, and commitment. She will be missed.
Peggy is wife to her high school sweetheart and travel buddy, Steve Lee. They have shared
many adventures over the years and are excited to experience many more. Their shared
hobby is tending to the Registered Texas Longhorns at their family farm. In their down
time, they are blessed with the company of their twin daughters, Stephanie and Lacey;
their sons-in-law, Max and Michael; and their three grandchildren, Ava, Landry, and
Maddox. Peggy looks forward to changing her focus from serving the City of La Porte to
enjoying more time with her friends and family.
Peggy, we bid you a fond farewell, and thank you for your thirty years of dedicated service
to the citizens of La Porte.
LOUIS RIGBY
BILL BENTLEY
Mayor
Councilperson District 3
BRANDON LUNSFORD
Mayor Pro-Tem
Councilperson At Large A
THOMAS GARZA
STEVE GILLETT
Councilperson District 4
Councilperson At Large B
JAY MARTIN
DANNY EARP
Councilperson District 5
Councilperson District 1
NANCY OJEDA
CHUCK ENGELKEN
Councilperson District 6
Councilperson District 2
MINUTES OF THE REGULAR MEETING OF THE
CITY COUNCIL OF THE CITY OF LA PORTE
FEBRUARY 24, 2020
The City Council of the City of La Porte met in a regular meeting on Monday, February 24, 2020, at the City Hall
Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 6:00 p.m., with the following in attendance:
Councilpersons present: Louis Rigby, Danny Earp, Chuck Engelken, Bill Bentley, Thomas Garza, Jay Martin, Steve
Gillett, Nancy Ojeda, Brandon Lunsford
Councilpersons absent: None
Council-appointed officers present: Corby Alexander, City Manager; Lee Woodward, City Secretary; Clark Askins,
Assistant City Attorney
1. CALL TO ORDER Mayor Rigby called the meeting to order at 6:00 p.m.
2. INVOCATION AND PLEDGES The invocation was given by Rachel Cotton, Pleasant Hill Church of Deliverance, and
the pledges of allegiance to the U.S. and Texas flags were led by Councilperson Brandon Lunsford.
3. PRESENTATIONS, PROCLAMATIONS, AND RECOGNITIONS
a. Proclamation in recognition of Texas Independence Day, in collaboration with The Sons of the Republic of Texas.
\[Mayor Rigby\].
b. Recognition of the retirement of Ron Parker, Chief of Police. \[Mayor Rigby\]
4. CITIZEN COMMENT (Generally limited to five minutes per person; in accordance with state law, the time may be
reduced if there is a high number of speakers or other considerations.)
Rick Helton and Lisa Morfin spoke on behalf of Spencer Landing HOA in support of the Bonner Carrington project, as
did Ben Rosenberger of Bayshore Baptist Church. Brittany Jones and Manuel Hernandez of the CARES Team at
also offered support. Chuck Rosa spoke in opposition to the use of tax funds
for the project. Jana Pellusch of Deer Park offered comments of concern over the Texas Commission on Environmental
ethylene oxide.
5. CONSENT AGENDA (Approval of Consent Agenda items authorizes each to be implemented in accordance with staff
recommendations provided. An item may be removed from the consent agenda and added to the Statutory Agenda for
full discussion upon request by a member of the Council present at this meeting.)
a. Approve the minutes of the special session held on February 8 and the regular session held on February
10, 2020. \[Mayor Rigby\]
b.Approve the appointment of Janet Fitzke to an open position on the City of La Porte Airport Advisory Board.
\[Mayor Rigby\]
c.Approve Resolution 2020-03 confirming the appointment of Steve Deardorff as the department head and
chief of police of the La Porte Police Department, commencing March 1, 2020. \[Corby Alexander, City
Manager\]
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February 24, 2020, Council Meeting Minutes
d Approve purchase agreement with Software House International (SHI) for unified backup and disaster
recovery system, under Texas Department of Information Resources (DIR) cooperative contract DIR-TSO-
3984. \[Grady Parker, IT Manager\]
eAuthorize the City Manager to execute a professional services agreement with Halff Associates, Inc. to
provide preliminary engineering, final design, bidding, and construction phase services for the Bayside
Terrace Subdivision Improvements Project. \[Ray Mayo, Director of Public Works\]
f. Approve the issuance of a pipeline permit to Mobil Pipeline Company for the construction of a 36 crude
pipeline within the city of La Porte. \[Lorenzo Wingate, Assistant Director of Public Works\]
Councilperson Gillett moved to approve Resolution 2020-03 confirming the appointment of Steve Deardorff as the
department head and chief of police of the La Porte Police Department, commencing March 1, 2020; the motion
was adopted, 8-1, Councilperson Garza voting against.
Councilperson Engelken moved to approve the consent agenda items a, b, and d-f; the motion was adopted, 9-0.
6. PUBLIC HEARINGS
(a) The City Council will hold a public hearing to receive comments regarding a recommendation by the
Planning and Zoning Commission to adopt Ordinance 2020-3777 amending the City's Future Land Use Map
Component of the Comprehensive Plan for an approximately 6.921-acre tract of land located at the 3400
Block of Canada Road, legally described as Reserve A, Block 1, Dawson Subdivision, by changing the land
-
possible action to consider adopting Ordinance 2020-3777 amending the City's Future Land Use Map
Component of the Comprehensive Plan for an approximately 6.921-acre tract of land located at the 3400
Block of Canada Road, legally described as Reserve A, Block 1, Dawson Subdivision, by changing the land
-
Mayor Rigby opened the public hearing at 6:47 p.m. City Planner Ian Clowes gave a brief presentation on items 6a-
c together. Victor Perez and Chuck Rosa spoke in support of the project, noting they had attended the Planning
and Zoning discussions. Mayor Rigby closed the public hearing at 7:28 p.m.
Councilperson Engelken
Land Use Amendment for a 6.921-acre tract of land located at the 3400 Block of Canada Road and legally described
as Reserve A, Block 1, Dawson Subdivision; the motion was lost, 4-5, Councilpersons Earp, Engelken, Bentley,
and Ojeda voting in support.
Councilperson Gillett moved to adopt Ordinance 2020--
acre tract of land located at the 3400 Block of Canada Road and legally described as Reserve A, Block 1, Dawson
Subdivision; the motion was adopted, 7-2, Councilpersons Engelken and Earp voting against.
(b) The City Council will hold a public hearing to receive comments regarding a recommendation by the
Planning and Zoning Commission to adopt Ordinance 2020-3778 amending the Code of Ordinances of the
-92000010, a change from Mid Density
Residential (R-2) to Planned Unit Development (PUD) for a 6.921-acre tract of land located at the 3400 Block
of Canada Road and legally described as Reserve A, Block 1, Dawson Subdivision; followed by discussion
and possible action to consider adopting Ordinance 2020-3778 amending the Code of Ordinances of the
City of -92000010, a change from Mid Density
Residential (R-2) to Planned Unit Development (PUD) for a 6.921-acre tract of land located at the 3400 Block
of Canada Road and legally described as Reserve A, Block 1, Dawson Subdivision. \[Ian Clowes, City
Planner\]
Mayor Rigby opened the public hearing at 7:36 p.m. Mayor Rigby closed the public hearing at 7:37 p.m.
Councilperson Garza moved to adopt Ordinance 2020-3778, for zone change request #19-92000010, for a 6.921-
acre tract of land located at the 3400 Block of Canada Road and legally described as Reserve A, Block 1, Dawson
Subdivision; the motion was adopted, 8-1, Councilperson Engelken voting against.
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February 24, 2020, Council Meeting Minutes
(c) The City Council will hold a public hearing to receive comments regarding a recommendation by the
Planning and Zoning Commission to adopt Ordinance 2020-3779 amending the Code of Ordinances of the
City of La Porte, Chapter 106 -91000009, to allow
for a Boat and RV storage facility on a 6.921-acre tract of land, located at the 3400 Block of Canada Road,
and legally described as Reserve A, Block 1, Dawson Subdivision in the Planned Unit Development (PUD)
zoning district; followed by discussion and possible action to consider adopting Ordinance 2020-3779
Conditional Use Permit #19-91000009 to allow for a Boat and RV storage facility on a 6.921-acre tract of
land, located at the 3400 Block of Canada Road, and legally described as Reserve A, Block 1, Dawson
Subdivision in the Planned Unit Development (PUD) zoning district. \[Ian Clowes, City Planner
Mayor Rigby opened the public hearing at 7:39 p.m. Owner Ryan Sweezy and resident Brad Carpenter answered
questions concerning the additional conditions from the Planning and Zoning Commission. Stuart Shaw of Mariposa
asked that trees being used as screening be considered. Mayor Rigby closed the public hearing at 7:52 p.m.
Councilperson Gillett
Special Conditional Use Permit (SCUP) # 19-91000009, for a 6.921-acre tract of land located at the 3400 Block of
Canada Road and legally described as Reserve A, Block 1, Dawson Subdivision and to amend the SCUP by striking
the prohibition on chain link fencing and inserting a chain link opaque fence with barbed wire at the top as an
alternative screening option for the perimeter.
Councilperson Earp moved to amend that the front/west site include a decorative frontage; the motion was adopted,
8-1, Councilperson Engelken voting against. The original motion, as amended, was adopted, 9-0.
7. STATUTORY AGENDA
(a) Presentation, discussion, and possible action to approve Resolution 2020-04 in support of an application
and development of Cypress Creek Apartment Homes (tax credit multi-family Bonner Carrington
development) to be located on the north side of Spencer Highway between the airport/pipeline to the west,
Bayshore Baptist Church to the east, and Spencer Landing subdivision to the north. \[Corby Alexander, City
Manager\]
Stuart Shaw and Emily Protine of Bonner Carrington answered questions on the project. Councilperson Earp moved
to approve Resolution 2020-04 -family
development in La Porte and contribute fee reductions in value of at least $500. Councilperson Garza moved to
strike will provide reduced fees and insert a loan in the first Further Resolved item and the same change in the letter
from the Mayor. There was not a second and the amendment was not considered.
Councilperson Gillett moved the previous question. Councilperson Garza moved several parliamentary inquiries
and questions of privilege. The previous question was adopted, 8-1, Councilperson Garza voting against. The main
motion was adopted, 8-1, Councilperson Garza voting against.
(b) Presentation, discussion, and possible action to approve an agreement between the City of La Porte and
the City of Shoreacres for Fire Services. \[Jason Weeks, Assistant City Manager; David Gifford, Assistant
Fire Chief\]
Councilperson Garza moved multiple parliamentary inquiries and questions of privilege and was warned by Mayor
Rigby. Assistant City Manager Jason Weeks and David Gifford, Assistant Fire Chief, offered a brief overview.
Councilperson Engelken moved to authorize the City Manager to enter into a five-year agreement with the City of
Shoreacres to provide fire suppression services within their corporate city limit boundaries at a monthly amount of
$13,818.72 beginning March 1, 2020 and ending on February 28, 2025; the motion was adopted, 9-0.
(c) Presentation, discussion, and possible action to approve a request for sponsorship by the La Porte
Education Foundation for their annual golf tournament. \[Jason Weeks, Assistant City Manager\]
Frank Nance and Brock Bihm of the La Porte Education Foundation followed Assistant City Manager Jason Weeks
in providing an overview of the request. (Councilperson Lunsford signed a Conflict of Interest affidavit and did not
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February 24, 2020, Council Meeting Minutes
participate in the discussion or vote on the item.) Councilperson Earp moved to approve the City Manager to sponsor
the La Porte Education Foundation annual golf tournament via proposed Option 3, as in the past by being the
presenting sponsor at a cost of $2,500 and the City contributing a sleeve of three (3) City logo golf balls to each
participant in the golf tournament (which costs the City $1,705) for a total investment of the budgeted amount of
$4,205; the motion was adopted, 8-0.
(d) Presentation, discussion, and possible action to approve a $10,000 sponsorship to the San Jacinto Museum
of History for their 9th Annual San Jacinto Texas Independence Fun/Run and San Jacinto Festival & Battle
Reenactment. \[Rosalyn Epting, Director of Parks & Recreation\]
Roz Epting, Director of Parks and Recreation, provided a brief overview. Councilperson Engelken moved to approve
th
sponsoring $10,000 to the San Jacinto Museum of History for their 9 Annual San Jacinto Texas Independence
Fun/Run and San Jacinto Festival & Battle Reenactment. Councilperson Garza moved to amend by including a
prohibition on Councilpersons receiving gifts or other items from the sponsorship; the motion was not adopted, 2-
7, Councilpersons Garza and Gillett voting in favor. The main motion was adopted, 8-1, Councilperson Garza voting
against.
(e) Presentation, discussion, and possible action to authorize the City Manager to sign an agreement with
Huitt-Zollars, Inc. for design services for the EMS facility expansion. \[Ray Mayo, Director of Public Works\]
Public Works Director Ray Mayo and Randy Hickey of Huitt-Zollars answered questions. Councilperson Garza
moved to authorize the City Manager to sign an agreement with Huitt-Zollars, Inc., to provide survey, geotechnical,
architectural, engineering, and design referenced as (step 1), related to the EMS Headquarters Expansion in the
amount of $67,910.00; the motion was adopted, 8-0 (Councilperson Ojeda had stepped out of the room).
8. REPORTS
(a) Receive fiscal year 2019-2020 first quarter Capital Improvement Plan program report update. \[Jason Weeks,
Assistant City Manager\]
Mr. Weeks presented the quarterly update.
(b) Receive a report on the La Porte Development Corporation Board meeting. \[Councilperson Ojeda\]
Councilperson Ojeda reported that the Committee welcomed new member Rachel Cotton and authorized
publication of the opening of a 60-day comment period for a project at 100 West Main.
9. ADMINISTRATIVE REPORTS
Zoning Board of Adjustment meeting, February 27
Fiscal Affairs Committee meeting, March 9
Drainage and Flooding Committee meeting, March 9
City Council meeting, March 9
Planning and Zoning Commission meeting, March 19
City Council meeting, March 23
Zoning Board of Adjustment meeting, March 27
Mr. Alexander announced there were no reports.
10. COUNCIL COMMENTS regarding matters appearing on the agenda; recognition of community members, city
employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies.
Councilpersons congratulated Chief Parker on his retirement; thanked the Parks Department for the Mardi Gras on
Main and the Father-Daughter Dance events; congratulated and welcomed Chief Deardorff in his new capacity;
reminded all to vote in the primaries next week on election day; suggested following up on the public comment on
ethylene oxide; commented on the Council Rules of Procedure provision to enable a Councilperson to be removed from
a meeting; thanked the Sons of the Republic of Texas for coming for their proclamation; expressed appreciation for the
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February 24, 2020, Council Meeting Minutes
Council approving the first part of the Bayside Terrace drainage project; suggested that Councilpersons consider views
on meeting length; offered support of the San Jacinto Monument events; relayed a story from citizens about how the
City Secretary had assisted them with their primary election mail ballots through Harris County.
ADJOURN Without objection, Mayor Rigby adjourned the meeting at 9:53 p.m.
_______________________________
Lee Woodward, City Secretary
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February 24, 2020, Council Meeting Minutes
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: March 9, 2020
Requested By: Mayor Rigby Source of Funds: N/A
Department: City Council
Account Number:
Report Resolution Ordinance
Budgeted Item: Yes No
SUMMARY
was vacated when the last appointee to the position
moved out of the City, and almost the complete three-year term remains open. The Board consists of
seven positions.
25, 2020, for review and consideration.
From City Code as regards the Board generally:
Sec. 82-10. - Building codes appeals board. In order to hear and decide appeals of orders, decisions or determinations
made by the building official relative to the application and interpretation of the building codes adopted in this chapter,
there shall be and is hereby created by the City Council of the City of La Porte a Building Codes Appeals Board. (Ord.
No. 2004-2733, § 1, 5-10-04)
Sec. 82-11. - Compilation of board. The building code appeals board shall consist of seven resident electors of the City
of La Porte who the City Council deems competent to serve on such board by virtue of their experience and training in
matters pertaining to building construction. Members of the building code appeals board may not be employed by the
City of La Porte. (Ord. No. 2004-2733, § 1, 5-10-04)
requires member to be registered voter who lives in La Porte city limits.
Sec. 82-12. - Term. Members of the building code appeals board are appointed by the city council, for a term of three
years, and serve at the pleasure of the city council. Vacancies shall be filled for the unexpired term of any member whose
term becomes vacant for any cause, in the same manner as the original appointment was made. All cases to be heard by
the building code appeals board will always be heard by a minimum of four members. (Ord. No. 2004-2733, § 1, 5-10-
04)
Sec. 82-13. - Rules and meetings. The building code appeals board shall adopt rules of procedure in accordance with
the provisions of this chapter, and this Code. Meetings of the board shall be held at the call of the chairman and at such
other times as at least four members of the building code appeals board may determine. All meetings of the building
code appeals board shall be open to the public. The building code appeals board shall keep minutes of its proceedings,
showing the vote of each member upon each question, or if absent or in failing to vote, indicating such fact, and shall
keep records of all of its official acts, all of which shall be immediately filed in the office of the city secretary and shall
become a public record. (Ord. No. 2004-2733, § 1, 5-10-04) * The Code is silent on choice of chairman, therefore, the
Board is entitled to select its chairman itself. Appointments are not by Council District.
Sec. 82-14. - Powers and duties of the board. The building code appeals board shall have the following powers:
(1) To hear and decide appeals from the determination of a building official where it is alleged that on a claim that
the true intent of the building and construction codes adopted in this chapter have been incorrectly interpreted,
that the provisions of a code adopted under this chapter do not fully apply, or that an equally good or better form
of construction is proposed. The building code appeals board shall have no authority to waive requirements of
this Code.
(2) The building code appeals board is to conduct a regular comprehensive review of the codes adopted in this
chapter, and has the power to recommend to the City Council of the City of La Porte changes, additions, or
deletions from said codes for any reason including the following:
a. Defects in the text of the codes;
b. Deficiencies created by improper or lax administration of the codes; or
c. Inconsistency with the state statutes or judicial decisions. (Ord. No. 2004-2733, § 1, 5-10-04)
Sec. 82-15. - Action on appeal. In exercising the powers set forth in this section, the building code appeals board, in
conformity with the provision of this chapter and the codes adopted in this chapter, may reverse or affirm, wholly or
partly, or may modify the order, requirement, decision, or determination, as ought to be made, of the building official,
and to that end shall have all the powers of the enforcement officer from whom the appeal is taken. (Ord. No. 2004-
2733, § 1, 5-10-04)
RECOMMENDED MOTION
I move the appointment of Pat McCabe to an open position on the La Porte Building Code
Appeals Board. \[A nomination does not require a second.\]
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: 3-9-2020
Source of Funds: General Fund/Finance
Requested By:
Michael Dolby, Director of Finance
0016141-5155001
Department:
Finance
$45,300; 0345051-
5225001-$5,000;
Report Resolution Ordinance
0167075-5335001-
$6,000; 0386030-
Account Number: 5655001-$5,000
Exhibits: __2019 CAFR_______________________
Amount Budgeted: $61,300
Amount Requested: $61,300
Budgeted Item: Yes No
SUMMARY & RECOMMENDATION
In accordance with the city charter, the fiscal year ending September 30, 2019 Comprehensive Annual Financial
Report will be presented to Council by the external auditors Whitley Penn. The audit report provides the City
with reasonable assurance that the financial statements are free of material misstatements. The auditors designed
teststhat provide evidence that the financial statements conform to the highest level of accounting standards.
The City of La Porte received an unmodified (clean) opinion from the auditors and no management comments
or deficiencies in internal control were identified.
The City of La Porte has won the Award for Excellence in Financial Reporting from the Government Finance
Officers Association for thirty-eight (38) consecutive years.
ACTION REQUIRED
Consider approval or action to accept the Fiscal Year Ending September 30, 2019 Comprehensive
Annual Financial Report (CAFR).
Approved for Fiscal Affairs Committee Agenda
Corby D. Alexander, City Manager Date
CITY OF LA PORTE, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Fiscal Year Ended
September 30, 2019
Corby Alexander, City Manager
Prepared by:
Department of Finance
DRAFT 02.25.2020
CITY OF LA PORTE
TABLE OF CONTENTS (continued)
ExhibitPage
/ Table
Introductory Section
Letter of Transmittal i
GFOA Certificate of Achievement vii
Organizational Chart viii
List of Principal Officials ix
Financial Section
Report of Independent Auditors 1
7
Management’s Discussion and Analysis
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position A-1 21
Statement of Activities A-2 22
Fund Financial Statements:
Balance Sheet - Governmental Funds A-3 24
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position A-4 27
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Governmental Funds A-5 28
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities A-6 30
Statement of Net Position - Proprietary Funds A-7 31
Statement of Revenues, Expenses and Changes in Fund Net Position
- Proprietary Funds A-8 32
Statement of Cash Flows - Proprietary Funds A-9 33
Notes to the Financial Statements A-10 35
Required Supplementary Information:
General Fund - Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual B-1 82
Tax Increment Reinvestment Zone B-2 83
Notes to Required Supplementary Information B-3 84
Schedule of Changes in Net Pension Liability and Related Ratios B-5 85
Schedule of TMRS Contributions B-5 86
Schedule of Proportionate Share of the TMSRS B-6 87
Schedule of City’s Contributions B-7 87
Schedule of Changes in the Total OPEB Liability and Related Ratios –
Retiree Health Care Plan B-8 88
Schedule of Changes in the Total OPEB Liability and Related Ratios –
TMRS Supplemental Death Benefits Fund B-9 89
Combining and Individual Fund Statements and Schedules:
Combining Statements - Non-major Governmental Funds:
Combining Balance Sheet C-1 94
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance C-2 98
Debt Service Fund C-3 102
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CITY OF LA PORTE
TABLE OF CONTENTS (continued)
ExhibitPage
/ Table
Financial Section (continued)
Combining and Individual Fund Statements and Schedules:
(continued)
Schedules of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual:
2017 Certificate of Obligation Bonds C-4 103
Special Revenue Fund – Hotel/Motel Fund C-5 104
Special Revenue Fund – Section 4B Sales Tax C-6 105
Special Revenue Fund – Street Maintenance Sales Tax Fund C-7 106
Special Revenue Fund – Emergency Services Sales Tax Fund C-8 107
Special Revenue Fund – Restricted Fund C-9 108
2006 Certificate of Obligation Bond Fund C-10 109
2010 Certificate of Obligation Bond Fund C-11 110
2015 Certificate of Obligation Bond Fund C-12 111
Capital Improvement Fund C-13 112
Capital Projects Fund – Drainage Improvement Fund C-14 113
General Fund – Schedule of Revenues – Budget and Actual 115
General Fund – Schedule of Expenditures – Budget and Actual 116
Combining Statement of Net Position - Internal Service Funds 122
Combining Statement of Revenues, Expenses and changes in Fund
Net Position - Internal Service Funds 123
Combining Statement of Cash Flows - Internal Service Funds 124
Statistical Section
Net Position by Component 1 128
Changes in Net Position 2 130
Fund Balances of Governmental Funds 3 134
Changes in Fund Balances of Governmental Funds 4 136
Assessed Value and Estimated Value of Taxable Property 5 139
Property Tax Rates - Direct and Overlapping Governments 6 140
Principal Property Taxpayers 7 142
Property Tax Levies and Collections 8 143
Ratios of Outstanding Debt by Type 9 145
Ratio of Net General Bonded Debt to Taxable Value 10 146
Direct and Overlapping Governmental Activities Debt 11 147
Demographic and Economic Statistics 12 148
Principal Employers 13 149
Full-Time Equivalent City Governmental Employees by Function 14 150
Operating Indicators by Function/Program 15 152
Capital Assets Statistics by Function/Program 16 154
DRAFT 02.25.2020
March 9, 2019
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, 2019. This report is published to
provide the City Council, City staff, our citizens, our bondholders and other interested parties with detailed
information concerning the financial condition and activities of the City government. This report consists of
management's representations concerning the finances of the City of La Porte. Consequently, management
assumes full responsibility for the completeness and reliability of all of the information presented in this report.
To provide a reasonable basis for making these representations, management of the City has established a
comprehensive internal control framework that is designed both to protect the government's assets from loss, theft
or misuse and to compile sufficient reliable information for the preparation of the City of La Porte's financial
statements in conformity with GAAP. The cost of internal controls should not outweigh their benefits; therefore
the City of La Porte's comprehensive framework of internal controls has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free from material misstatement. As
management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable
in all material respects.
The City of La Porte's financial statements have been audited by Whitley Penn LLP, a firm of licensed certified
public accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the City of La Porte for the fiscal year ended September 30, 2019 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, 2019 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.
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Profile of the City
The City of La Porte, incorporated in 1892, is located in the southeast quadrant of Harris County and is
bounded
on the north by the Houston ship channel, on the east by Galveston Bay and the south by theBayport channel.
The City of La Porte currently encompasses 19 square miles and serves a population of 35,423.
The City is a home rule city operating under the Council-Manager form of government. Policymaking and
legislative authority are vested in a governing council consisting of the mayor and eight other members. The city
council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees
and hiring the City Manager, City Secretary and Attorney. The City Manager is responsible for carrying out the
policies and ordinances of the City Council, for overseeing the day-to-day operations of the City and for appointing
the heads of various departments. The Council is elected on a non-partisan basis. The Mayor and Council members
serve three-year staggered terms. Six of the council members are elected by district. The Mayor and the two
remaining council members are elected at large. The City of La Porte provides a full range of services, including
police and fire protection, the construction and maintenance of streets and other infrastructure and recreational
activities and cultural events. Certain services are provided through a legally separate Water Authority, which
functions, as a blended component unit and in essence, is a department of the City of La Porte, and, therefore, has
been included as an integral part of the City of La Porte's financial statements. Additional information on the
Water Authority and other blended component units can be found in Note 1B of the notes to the financial
statements. The City has established a Taxing Increment Reinvestment Zone one (the Zone). The zone is presented
as a blended component unit and is being reported as a governmental fund type (see Note 1B). The City has also
established a section 4 B Sales Tax Corporation (see Note 1B). The City also has established a Fire Control,
Prevention and EMS District (see note 1B). The City's accounting records for general governmental operations
are maintained on modified accrual basis, with the revenues being recorded when available and measurable and
expenditures being recorded when the services or goods are received and the liabilities are incurred. Accounting
records for the City's utilities and other proprietary activities are maintained on the accrual basis.
The annual budget serves as the foundation for the City of La Porte's financial planning and control.Budgetary
control has been established at the fund level. Al lagencies of the City of La Porte are 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 to
council for review prior to August. The council is required to hold apublic hearing on the proposed budget and
to adopt 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 ofappropriations 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 an
appropriated annual budget has been adopted. For the general fund, this
comparison is presented on page 82 as part of the required supplementary information. For governmental
funds, other than the generalfund, with appropriated annual budgets, this comparison is presented in the
governmental fund subsectionof this report, which starts on page 94. 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 it is consideredfrom
the broader perspective of the specific environment within which the City of La Porte operates.
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Local Economy
The City of La Porte is located in the southeast quadrant of Harris County, which is a 1, 723 square mile county
is a leading oil, gas and petrochemical areas. The County has more than 3,200 manufacturing plants, the nation’s
largest concentration of petrochemical plants, and the third largest United States seaport and is a corporation
management center. A significant part of the County’s major employers, manufacturers, education and financial
institutions are located in Houston, the County seat. The Texas Medical Center, located in Harris County, is one
of the nation's largest, providing medical care and educational opportunities. Higher education facilities include:
University of Houston, Rice University, Texas Southern University, St. Thomas University and Houston Baptist
University, all offering full four- year as well as postgraduate programs. The Lyndon B. Johnson Space Center is
also located here. Located some 20 miles southeast of Houston on Galveston Bay in Harris County are the three
communities that make up the La Porte Bayshore Area: La Porte, Morgan's Point and Shoreacres. The area has a
combined population of approximately 40,000. Though much of the image of this area is industrial, the La Porte-
Bayshore area is still characterized by an expanse of resort homes.
Strategic Plan
Overview
On October 27, 2012, the Mayor, City Council, City Manager and key staff of the City of La Porte met
together in a retreat planning session. The purpose of that meeting was to establish the Council’s Strategic
Plan for the next five years. A report was prepared outlining the City Council’s Mission, Vision and Core
Values, as well as six overall goals. Each goal had identified objectives and strategies, with time lines for
beginning and completing the goals.
On March 9, 2013, the City Manager and his key staff met. Their purpose was two-fold. First, staff
reviewed and discussed the Mission, Vision and Core Values developed by the City Council and created
Leadership Statements for the staff to follow to ensure their work is consistent with the value of the
City Council. Secondly, staff reviewed and clarified the goals, objectives and strategies identified by
the City Council; if necessary identify additional goals consistent with the overall mission, vision and
values; and establish the framework for an action plan. The result of their work is documented in this
report.
The Strategic Plan will provide a blueprint for action over the next five years. When developing the
annual budget, staff will be tasked with making sure that expenditures and programs further the goals
and Core Values stated in this document. This provides clear direction to the staff as to what priorities
are important to the Council and plans can be made accordingly to make sure that resources are allocated
towards those ends. Additionally, this plan is an excellent communication tool that the Council and the
staff can use when speaking with residents and businesses. Many times, ad hoc requests can derail
longer-term plans. The Strategic Plan outlines a framework for receiving, prioritizing, and budgeting
for resident requests.
All participants, staff and Council, agreed to commit to the success of this plan. A plan only becomes a
useful and working document when all the participants (as a whole and as individuals) 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.
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Mission Statement
The Council reviewed and revised the Mission Statement & Vision Statement of the City and the results
are as follows:
The City of La Porte embraces our heritage, community values, and opportunities, while enhancing
the quality of life for our citizens
Vision Statement
To provide improved infrastructure, to drive economic growth, and to enhance quality of life for our
citizens.
Core Values
The City Council wanted to specify the core values under which the City and its staff function. Core
values are the general guidelines that establish the foundation for how an organization will operate. Staff
then discussed these value statements to define and gain an understanding of what those Core Value
meant to staff from a leadership perspective. Staff first discussed what the elements of each Core
Value represented, then prepared a Leadership Statement for each one.
The following are the Core Values of the City of La Porte:
Health & Public Safety: City employees will ensure the health and safety of our citizens
by providing and maintaining superior public infrastructure and public safety services.
Integrity & Accountability: City employees will be open, honest and transparent, and be
accountable to the Council so that Council can be responsive to the citizens.
Superior Customer Service: City employees will proactively provide superior customer service
in a positive and timely manner.
Quality in everything we do: City employees will strive for superiority in all services we provide.
Goal and Plan Development
During the Council Retreat in October 2012, six goals were developed by the Council, with staff
providing assistance in the development of objectives. In March 2013, the staff further added “meat
to the bone” to outline more specifically the actions that would be necessary to achieve the stated goals.
The development and implementation of the action plan will serve to provide Council a clear
understanding of how and when each of their goals will be accomplished. The action plan proposes to
do the following:
Identify a team leader: Each Goal needs a champion who will lead the effort to accomplish the
goal and be held accountable for the action plan that is developed. A team leader for each goal
was assigned.
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 to accomplish the goal.
Define action steps. Each objective needs defined action steps showing Council how the goal
will be accomplished. The action steps provide the basis for benchmarks.
Prepare a timeline. Timelines were prepared for each of the objectives. Staff reviewed those
timelines and recommended adjustments.
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The Council-identified goals are:
Improve Infrastructure
Preserve Heritage – to preserve the structure and amenities that make La Porte unique
Ensure that all departments and facilities are ready for any disaster
To encourage economic development/retail development
To provide Superior Customer Service
To revitalize blight/146
In addition to the six Council-identified goals, it was agreed that key areas of city government were
not included in the goals identified by Council. Staff was tasked with discussing other areas where they
would establish goals and objectives and bring them to Council for consideration and approval to include
in the Strategic Plan. Several new goals were identified and are proposed for Council consideration:
To provide and maintain superior public safety
Continue to improve the quality of life through recreational amenities
Create a Neighborhood Preservation Program
Provide diverse and timely communications that promote and influence a positive
public perception of La Porte
One critical component to ensuring that the elements of the Strategic Plan are being implemented is to provide
regular status reports to the City Council. Staff 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 pronouncements regarding other post-employment
benefits reporting.
Major Initiatives
Staff continues to oversee the design and construction of our fitness center addition. Also, public works is
overseeing the construction of the multi-million dollar infrastructure water/ sewer project, as well as design for
various drainage projects.
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.
During the upcoming year, the city will continue to monitor the effects of a new municipal utility district that will
have 640 single family homes with an average value of $280,000. Also included in this development is
$40,000,000 in multifamily housing and $12,000,000 in senior living housing. Build out is projected over the next
five years, and city property tax revenue from this project is estimated to $1,580,000 annually.
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v
During the upcoming fiscal year, the city will benefit from increased estimated taxes of $3.3 million annually
from new construction in the Industrial District being taxed at 63% due to the expiration of the new construction
period and growth from revaluations and new construction from residential and commercial will add $115 million
in value to our property rolls.
Conservative revenue estimates and efforts to reduce expenditures have contributed to the City’s strong
financial position and have allowed the City to weather the economic slump. We are especially pleasedthat
there have been no property taxes rate increases for (29) twenty-nine years. Additional capital projects are
being funded by utilizing excess fund balances and previously issued debt that had been stranded. With
the
associated fund draw downs, the remaining fund balances continue to meet operational objectives andcurrent
fiscal policies.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence
in Financial Reporting to the City for its comprehensive annual financial report for the fiscal
year ended
September 30, 2018.This was the thirty-eighth consecutive year that the City has received this prestigious
award. In order to be awarded a Certificate of Achievement, the City published an easilyreadable 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 currentcomprehensive
annual financial report continues to meet the Certificate of Achievement Program'srequirements and we are
submitting it to the GFOA to determine its eligibility for another certificate. Inaddition, the city also received
the GFOA’s Distinguished Budget Award for its annual budgetdocument. In order to qualify for the
Distinguished Budget Presentation Award, the government's budgetdocument was judged to be proficient in
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 GFOA,
the Investment Policy Award from the Government Treasurer’s Organization of Texas, the 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 departmentwho 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 themanagement of the City of La Porte's finances.
Respectfully submitted,
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viii
CITY OF LA PORTE
LIST OF ELECTED AND APPOINTED OFFICIALS
For the Year Ended September 30, 2019
Elected Officials Position
Louis Rigby Mayor
Danny Earp Council Member – District One
Chuck Engelken Council Member – District Two
William Bentley Council Member – District Three
Thomas Garza Council Member – District Four
Jay Martin Council Member – District Five
Nancy Ojeda Mayor Pro Tem – District Six
Brandon Lunsford Council Member – At Large A
Steve Gillett Council Member – At Large B
City Management Position
Corby Alexander City Manager
Jason Weeks Assistant City Manager
Ron ParkerPolice Chief
Ray Mayo Director of Public Works
Lee Woodward City Secretary
Denise Mitrano Municipal Judge
Michael G. Dolby Director of Finance
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FINANCIAL SECTION
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REPORT OF INDEPENDENT AUDITORS
To the Honorable Mayor and
Members of City Council
City of La Porte, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of the City of La Porte, Texas
(the “City”), as of and for the year ended September 30, 2019, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit
the financial statements of the La Porte Redevelopment Authority (the “Authority”), which represents 3
percent, 16 percent and 6 percent, respectively, of the assets, liabilities and revenues of the governmental
funds. Those statements were audited by other auditors whose report has been furnished to us, and our
opinion, insofar as it relates to the amounts included for the Authority, 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.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion.An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements. The statements of
the Authority were not audited in accordance with Government Auditing Standards.
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To the Honorable Mayor and
Members of City Council
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, based on our audit and the report of the 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, 2019, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the budgetary comparison, required pension system information and other post-
employment benefit information on pages 7 through 18 and 82 through 89 be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the information
for consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements and schedules, and statistical section are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and budgetary comparison 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 combining and individual nonmajor fund financial
statements and budgetary 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.
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To the Honorable Mayor and
Members of City Council
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 09, 2020,
on our consideration of the City’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
Houston, Texas
March 09, 2020
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MANAGEMENT’S DISCUSSION AND ANALYSIS
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CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of La Porte, we offer readers of the City of La Porte’s financial statements this
narrative overview and analysis of the financial activities of the City of La Porte for the fiscal year ended
September 30, 2019. We encourage readers to consider the information presented here in conjunction with
additional information that we have furnished in our letter of transmittal, which can be found on pages i-vi
of this report.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the City of La Porte exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $133.3 million (net position). Of this
amount, $30.3 million is restricted for special purposes. The remaining balance is unrestricted net
position, $18.3 million, which can be used to meet the City’s ongoing obligations to residents and
creditors.
• Net position increased by $17.1 million as a result of operations.
• The City of La Porte’s total expenses were $66.5 million. Program revenues of $22.2 million reduced
the net cost of the City’s functions to be financed from the City’s general revenues to $44.2 million.
• The City of La Porte’s total long-term liabilities and debt increased by $7.0 million, or 6%, during the
current fiscal year. This due primarily to the increase in net pension liability related to changes in
actuarial assumptions.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of La Porte’s basic financial
statements. The City’s basic financial statements are comprised of three components: (1) government-wide
financial statements, (2) fund financial statements and (3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
GOVERNMENT-WIDE STATEMENTS
The government-wide statements report information about the City as a whole using accounting methods
similar to those used by private-sector companies.
The Statement of Net Position and the Statement of Activities, which are the government-wide statements,
report information about the City as a whole and about its activities in a way that helps answer the question
of whether the City is better off this year as compared to last year. These statements include all assets and
liabilities and are presented on the accrual basis of accounting. All current year revenues and expenses are
taken into account regardless of when the cash is received or paid.
The Statement of Net Position presents information on all of the City of La Porte’s assets, deferred outflows,
liabilities and deferred inflows with the difference between the three reported as net position. Over time,
deferred outflows, increases and decreases in net position may serve as a useful indicator of whether the
financial position of the City of La Porte is improving or deteriorating.
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CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
The Statement of Activities presents information showing how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation and sick 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, public
works, health, welfare 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 21 - 23 of this report.
FUND FINANCIAL STATEMENTS
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds
of the City can be divided into two categories – governmental and proprietary – and utilize different
accounting approaches.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements,
it is useful to compare the information presented for governmental funds with similar information presented
for governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government’s near-term financing decisions. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The City maintains fourteen 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 Fund, 2015 Certificate of Obligation Bond Fund, Debt Service
Fund and Tax Increment Reinvestment Zone (“TIRZ”) which are considered to be major funds. Data from
the other ten governmental funds are combined into a single, aggregated presentation.
The City adopts an annual appropriated budget for its General Fund. Budgetary comparison statements
have been provided to demonstrate compliance with these budgets.
The basic governmental fund financial statements can be found on pages 24 through 30 of this report.
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CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
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 are an accounting device used
to accumulate and allocate costs internally among the City’s various functions. The City uses its internal
service funds to account for motor pool services, technology services and insurance. Because these services
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 31 - 34 of this report.
NOTES TO THE FINANCIAL STATEMENTS
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes can be found on pages 35 - 79 of this report.
OTHER INFORMATION
In addition to the basic financial statements and the accompanying notes, this report also presents certain
required supplementary information concerning the City’s progress in funding its obligation to provide
other post-employment benefits, pension information and general fund budgetary comparisons. Required
supplementary information can be found on pages 82 - 89 of the City’s Comprehensive Annual Financial
Report.
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 94 of the City’s
Comprehensive Annual Financial Report.
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CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. For
the City, assets and deferred outflows exceed liabilities and deferred inflows by $133.3 million as of
September 30, 2019, in the primary government as follows:
SUMMARY OF STATEMENT OF NET POSITION
As of September 30, 2019 and 2018
GovernmentalBusiness-type
ActivitiesActivitiesTotal
201920182019201820192018
Current and other assets$ 119,212,211$ 104,687,724$ 16,809,064$ 15,951,689$ 136,021,275$ 120,639,413
Capital assets, net 77,806,84478,992,27831,735,493 32,199,968109,542,337 111,192,246
Total Assets
197,019,055183,680,00248,544,557 48,151,657245,563,612 231,831,659
Deferred Outflows
12,602,320 6,380,346 1,354,413 697,304 13,956,733 7,077,650
Other liabilities 5,993,3006,734,2761,159,564 1,038,9187,152,864 7,773,194
Long-term Liabilities 108,818,478103,146,7988,453,418 7,108,959117,271,896 110,255,757
Total Liabilities
114,811,778109,881,0749,612,982 8,147,877124,424,760 118,028,951
Deferred Inflows
1,623,071 4,227,851 178,788 490,100 1,801,859 4,717,951
Net Position:
Net investment in capital assets 53,011,91443,421,14531,735,493 32,199,96884,747,407 75,621,113
Restricted 30,267,21931,025,084 - - 30,267,219 31,025,084
Unrestricted 9,907,3931,505,1948,371,707 8,011,01618,279,100 9,516,210
Total Net Position
$ 93,186,526$ 75,951,423$ 40,107,200$ 40,210,984$ 133,293,726$ 116,162,407
Net Investment in Capital Assets
The largest portion of the City’s net position (63.6%) reflects its investment in capital assets (e.g., land,
buildings, machinery, equipment, improvements, construction in progress and infrastructure), less any debt
used to acquire those assets that is still outstanding. The City uses these capital assets to provide services
to citizens; consequently, these assets are not available for future spending. Although the City’s investment
in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the assets themselves cannot be used to liquidate these
liabilities.
Restricted Net Position
A portion of the City’s net position, $30.3 million or 22.7% represents resources that are subject to external
restriction on how they may be used.
Unrestricted Net Position
The City reports an unrestricted net position of $18.3 million or 13.7%. This is an increase of $8.8 million.
The change is attributed primarily to governmental activities increase in revenues related to taxes, operating
grants and investment earnings.
DRAFT 02.25.2020
10
CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued)
The following table provides a summary of the City’s operations for the year ended September 30, 2019,
with comparative data total for the year ended September 30, 2018. Governmental activities increased the
City’s net position by $17.2 million as a result of operations, and Business-type activities decreased net
position by $0.1 million as a result of operations.
Statement of Activities
The following table provides a summary of the City’s changes in net position:
CHANGES IN NET POSITION
For the Fiscal Years Ended September 30, 2019 and 2018
Governmental ActivitiesBusiness-type ActivitiesTotal
201920182019201820192018
Revenues
Program revenues:
Charges for Services10,488,224$ 8,569,995$ 9,558,239$ 10,109,405$ 20,046,463$ 18,679,400$
Operating grants and
contributions1,303,376 356,095- - 1,303,376 356,095
Capital grants and
contributions596,878 595,260262,977 126,359 859,855 721,619
General revenues:
Property taxes26,484,216 25,413,898- - 26,484,216 25,413,898
Other taxes16,979,87115,165,838- - 16,979,871 15,165,838
Industrial payments14,899,62414,147,728- - 14,899,624 14,147,728
Investment earnings2,414,5931,228,759360,285152,5572,774,878 1,381,316
Miscellaneous251,400 251,508(12,350) - 239,050 251,508
Total Revenues
65,729,08110,169,15173,418,182 10,388,32183,587,333 76,117,402
Expenses
General government15,519,147 15,832,003- - 15,519,147 15,832,003
Public safety21,356,779 21,673,188- - 21,356,779 21,673,188
Public works7,818,696 9,796,326- - 7,818,696 9,796,326
Culture and recreation6,932,569 6,513,794- - 6,932,569 6,513,794
Health, welfare and sanitation4,016,465 4,685,795- - 4,016,465 4,685,795
Interest on long-term debt900,287 1,059,007- - 900,287 1,059,007
Water services- - 7,985,233 8,788,1137,985,233 8,788,113
Sewer services- - 1,769,8301,926,1331,769,8301,926,133
Airport- - 157,008 133,093157,008 133,093
Total Expenses
59,560,1139,912,07110,847,33966,456,01470,407,45256,543,943
Increase in Net Position
Before Transfers
16,874,2396,168,968257,080(459,018)17,131,3195,709,950
Transfers360,864 (1,922,963)(360,864) 1,922,963--
Change in Net Position
17,235,1034,246,005(103,784) 1,463,94517,131,3195,709,950
Net position, Beginning 75,951,42395,482,21540,210,984 41,963,704116,162,407 137,445,919
Change in accounting policies/standards (23,776,797)- - (3,216,665) (26,993,462)-
Net Position, Ending
$ 93,186,526$ 75,951,423$ 40,107,200$ 40,210,984$ 133,293,726$ 116,162,407
DRAFT 02.25.2020
11
CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued)
The government’s total net position as a result of operations increased by $17.1 million during the current
fiscal year. Charges for services represented 24% of total revenues, property taxes and industrial payments
were 50% of total revenues, sales taxes and other taxes were 20%, the remaining revenues accounted for
6% of total revenues. On the expense side, public works expenses were 12% of the total, while public safety
was 32% and general government was 23%. Utility, LPAWA and airport expenses were 15% of total
expenses. Interest on long term debt was 1% of total expenses.
GOVERNMENTAL ACTIVITIES
A comparison of program expenses to program revenues and revenues by source for governmental activities
follows:
ExpenseandProgramRevenuesGovernmentalActivities
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$
GeneralPublicsafetyPublicworksCultureandHealth,Interestonlong
governmentrecreationwelfareandtermdebt
sanitation
ExpensesRevenues
12
DRAFT 02.25.2020
CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
GOVERNMENTAL ACTIVITIES (continued)
Revenues sources for governmental activities were distributed as follows:
RevenuebySourceGovernmentalActivities
InvestmentearningsMiscellaneous
Operating
3%1%
grantsand
contributions
2%
ChargesforServicesCapitalgrantsand
14%contributions
Industrialpayments
1%
20%
Propertytaxes
Othertaxes
36%
23%
For the year ended September 30, 2019, revenues without transfers in the governmental activities totaled
$73.4 million. This represents an increase of approximately $7.7 million or 11.7% due primarily to an
increase in sales taxes, other taxes and investment earnings.
DRAFT 02.25.2020
13
CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
BUSINESS-TYPE ACTIVITIES
Revenues without transfers or interest in the business-type activities totaled $10.2 million, a $219 thousand
decrease from the prior year. This decrease is due to a decrease in charges for services related to increased
rainfall during the fiscal year. Increased rainfall causes lower usage and fewer gallons pumped to customers.
A comparison between expenses and program revenues (charges for services) relating to Utility operations
follows. Increase in investment earnings was due to the purchase of new investment securities.
ExpenseandProgramRevenuesBusinessTypeActivities
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$
WaterservicesSewerservicesAirport
ExpensesRevenues
DRAFT 02.25.2020
14
CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $102.0 million, an increase of $13.4 million from the prior year. This increase is
due to an increase in property taxes, sales taxes, investment earnings and cost containment.
As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related legal
requirements.
Governmental Funds - The focus of the City’s governmental funds is to provide information of near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s
financing requirements. In particular, unassigned fund balance may serve as a useful measure of the City’s
net resources available for spending at the end of the fiscal year.
The General fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned
fund balance of the general fund was $57.3 million, an increase of $10.5 million due to an increase in
revenue collections and cost containment. As a measure of the general fund’s liquidity, it may be useful to
compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund
balance represents 140% of total general fund expenditures and total fund balance represents 140% of the
same.
The Debt Service fund has a total fund balance of approximately $4.5 million, all of which is restricted for
the payment of debt service. The net increase in fund balance from the prior year of $94 thousand was due
to an increase in property tax revenue.
The Tax Increment Reinvestment Zone Fund had a total fund balance of approximately $1.8 million, all of
which is restricted for capital projects. The net increase in fund balance from the prior year of $555
thousand was due an increase in property taxes.
The 2015 Certificate of Obligation Bonds Fund had a total fund balance of approximately $2.8 million, all
of which is restricted for capital projects. The net decrease in fund balance from the prior year of $647
thousand was due to capital outlay.
Proprietary Funds.The City’s proprietary funds provide the same type of information found in the
government-wide financial statements.
Unrestricted net position of the respective proprietary funds are Utility - $5.4 million, La Porte Area Water
Authority - $2.8 million and Airport - $0.1 million. The changes in net position of the proprietary funds
for 2019 were as follows: Utility – increase of $317 thousand, La Porte Area Water Authority – decrease
of $465 thousand and Airport – increase of $45 thousand. Increase in the Utility Fund is due to a decrease
in expenses. The decrease in the La Porte Area Water Authority is due to an increase in operating expenses,
specifically water purchases and a true-up of water purchase cost.
15
DRAFT 02.25.2020
CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
General Fund Budgetary Highlights
Actual revenues exceeded the final General Fund budgeted revenues by $7.5 million. The major drivers
were sales and use taxes exceeded budget by $1.5 million, property taxes by$1.3 million and industrial
payments and investment earnings exceeded budget by $1.2 million and $1.0 million respectively.
The total appropriations exceeded expenditures by $2.3 million, the majority of which can be attributed to
three departments. General government had a positive variance of $1.5 million, public safety had a positive
variance of $426 thousand and culture and recreation had a positive variance of $235 thousand.
Capital Asset and Debt Administration
Capital Assets.The City’s investment in capital assets for its governmental and business-type activities
as of September 30, 2019, amounts to $109.5 million (net of accumulated depreciation). This investment
in capital assets includes land, buildings, roads, park facilities, water and wastewater plants and service
lines, machinery and equipment, and construction in progress. The total decrease in the City’s investment
in capital assets for the current fiscal year was approximately $1.6 million. The following table shows
capital assets activity for the 2019 and 2018 fiscal years:
SCHEDULE OF CAPITAL ASSETS
(net of depreciation)
Governmental ActivitiesBusiness-type ActivitiesTotal
201920182019201820192018
Land10,326,295$ 10,326,295$ 447,791$ 447,791$ 10,774,086$ 10,774,086$
Construction in progress2,473,6252,506,5273,081,3122,035,2885,554,937 4,541,815
Infrastructure24,336,899 22,014,466 - - 24,336,899 22,014,466
Buildings and improvements31,591,06833,792,54425,879,49727,449,86357,470,565 61,242,407
Machinery and equipment9,078,95710,352,4462,326,8932,267,02611,405,850 12,619,472
Totals77,806,844$ 78,992,278$ 31,735,493$ 32,199,968$ 109,542,337$ 111,192,246$
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 52 – 53 in the notes to the
financial statements.
DRAFT 02.25.2020
16
CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
LONG-TERM DEBT
At the end of the current fiscal year, the City had total bonded debt outstanding of $35.8 million. This
amounts is backed by the full faith and credit of the City.
The City of La Porte maintains an “Aa2”, “AA+”, and “AA” by Moody’s, Standard and Poor’s, and Fitch,
respectively, for general obligation debt.
Additional information on long-term debt activity can be found on pages 54 – 56 in the notes to the financial
statements.
SCHEDULE OF LONG-TERM LIABILITIES
GovernmentalBusiness-typeTotal
ActivitiesActivitiesActivities
201920182019201820192018
General Obligation Bonds$16,425,000$ 18,895,000$ -$ 16,425,000-$ $ 18,895,000
Certificates of Obligation19,405,00020,670,000 - - 19,405,00020,670,000
Premium on Issuance1,068,3781,335,219 - - 1,068,3781,335,219
Developer Agreements2,624,6615,722,791 - - 2,624,6615,722,791
Compensated Absences3,214,5173,246,904129,050143,9993,343,567 3,390,903
Net Pension Liability - TMRS21,333,83410,341,6472,303,6741,197,22723,637,508 11,538,874
Net Pension Liability - TESRS136,398156,731 - - 136,398156,731
Total OPEB Liability44,610,69042,778,5066,020,6945,767,73350,631,384 48,546,239
Totals$108,818,478$ 103,146,798$8,453,418$ 7,108,959$ 117,271,896$ 110,255,757
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
During the upcoming year, the will have no increase in property tax rate and no utility fund rate increase.
The fiscal year 2019-2020 budget includes the following highlights:
Merit increases for non-civil service employees - $532,412
Market adjustment for non-civil service, non-emergency employees - $967,588
Meeting and conference increases for civil service employees - $281,702
No change in employee contribution for health insurance
Capital projects of approximately $14.4 million (including $3.2 million from Street Maintenance
Sales Tax Funding)
Vehicle replacement of $1,368,824
Transfer of $5.5 million from the General Fund for CIP
Transfer of $2.0 million from General Fund for the Insurance Fund
17
DRAFT 02.25.2020
CITY OF LA PORTE
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES (continued)
Overall the upcoming General Fund budget projects a decrease of $3.67 million for one time capital
projects. As shown below, property values and sales taxes continue to increase.
The trend for total assessed values has fluctuated slightly over the past five years resulting in a total increase
of 23% .
AssessedPropertyValue(inbillions)
$3.5
$3.4
$3.3
$3.2
$3.1
$3.0
$2.9
$2.8
$2.7
$2.6
$2.5
20152016201720182019
Salestaxrevenues(inmillions)
$15.0
$14.0
$13.0
$12.0
$11.0
$10.0
$9.0
$8.0
$7.0
$6.0
$5.0
20152016201720182019
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of La Porte’s finances for all
those with an interest in the City’s finances. Questions concerning this report or requests for additional
financial information should be directed to the Director of Finance, 604 West Fairmont Parkway, La Porte,
Texas 77571.
DRAFT 02.25.2020
18
BASIC FINANCIAL STATEMENTS
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19
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20
Exhibit A-1
CITY OF LA PORTE
STATEMENT OF NET POSITION
September 30, 2019
Governmental Business-type
ActivitiesActivitiesTotal
Assets
Cash and cash equivalents88,788,238$ 11,736,955$ 100,525,193$
Investments22,156,3263,843,12725,999,453
Receivables, net allowance for uncollectable4,632,1561,204,9825,837,138
Due from other government3,424,094- 3,424,094
Inventories211,39724,000235,397
Capital assets:
Capital assets not subject to depreciation12,799,9203,529,10316,329,023
Capital assets, net of accumulated depreciation65,006,92428,206,39093,213,314
Total capital assets, net77,806,844 31,735,493 109,542,337
Total Assets
197,019,055 48,544,557 245,563,612
Deferred Outflows of Resources
Deferred charge on refunding 632,995 - 632,995
Deferred outflows - OPEB 2,499,739 336,590 2,836,329
Deferred outflows related to TMRS pensions 9,425,8441,017,82310,443,667
Deferred outflows related to TESRS pensions 43,742 - 43,742
Total Deferred Outflows
12,602,320 1,354,413 13,956,733
Liabilities
Accounts payable5,335,879461,8355,797,714
Accrued liabilities655,92865,716 721,644
Unearned revenue1,493 - 1,493
Customer deposits - 632,013 632,013
Long-term liabilities:
Due within one year 3,920,726 6,453 3,927,179
Due in more than one year38,816,830122,59738,939,427
Net pension liability21,470,2322,303,67423,773,906
Total OPEB liability44,610,6906,020,69450,631,384
Total Liabilities
114,811,778 9,612,982 124,424,760
Deferred Inflows of Resources
Deferred inflows - pension 1,471,030 157,989 1,629,019
Deferred inflows - OPEB152,04120,799 172,840
Total Deferred Outflows
1,623,071 178,788 1,801,859
Net Position
Net Investment in capital assets 53,011,914 31,735,493 84,747,407
Restricted for:
Debt service 5,575,845 - 5,575,845
Economic development 7,992,242 - 7,992,242
Senior citizen programs 10,543 - 10,543
Replacement of trees 545,695 - 545,695
Municipal court building & technology 521,625 - 521,625
Park improvements 147,674 - 147,674
Public safety 2,034,636 - 2,034,636
Public works 3,030,960 - 3,030,960
Other 542,118 - 542,118
Capital projects 9,865,881 - 9,865,881
Unrestricted9,907,3938,371,70718,279,100
Total Net Position
$ 93,186,526$ 40,107,200$ 133,293,726
See Notes to Financial Statements.
DRAFT 02.25.2020
21
CITY OF LA PORTE
STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019
Program Revenues
Operating Capital
Charges for Grants and Grants and
ExpensesServicesContributionsContributions
Functions/Programs
Governmental activities:
General government$15,519,147$ 4,067,810$ -$ -
Public safety21,356,779 2 ,217,655 1,286,498 -
Public works7,818,696278,509 15,435 596,878
Culture and recreation6,932,5691,676,381 1,443 -
Health, welfare and sanitation4,016,4652,247,869 - -
Interest on long-term debt900,287 - - -
Total governmental activities
56,543,943 10,488,224 1,303,376 596,878
Business-type activities:
Utility services7,985,2338,389,773 - 125,816
La Porte Area Water Authority1,769,8301,109,495 - -
Airport157,00858,971 - 137,161
Total business-type activities
9,912,071 9,558,239 - 262,977
Total Primary Government
$66,456,014$20,046,463$ 1,303,376$ 859,855
General revenues:
Taxes:
Property taxes
Sales and use taxes
Industrial payments
Franchise taxes
Unrestricted Investment earnings
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position, beginning
Net Position, Ending
See Notes to Financial Statements.
DRAFT 02.25.2020
22
Exhibit A-2
Net (Expense) Revenues and
Changes in Net Position
Primary Government
Business-
Governmental type
ActivitiesActivitiesTotal
$ (11,451,337)$ (11,451,337)-$
(17,852,626) (17,852,626)-
(6,927,874) (6,927,874)-
(5,254,745) (5,254,745)-
(1,768,596) (1,768,596)-
(900,287) - (900,287)
(44,155,465) (44,155,465)-
- 5 30,356 530,356
(660,335)- (660,335)
- 3 9,124 39,124
(90,855)- (90,855)
(44,155,465)(90,855)(44,246,320)
26,484,216 26,484,216-
13,944,027 13,944,027-
14,899,624 14,899,624-
3,035,844 3,035,844-
2,414,593360,2852,774,878
251,400(12,350) 239,050
360,864 (360,864) -
61,390,568(12,929)61,377,639
17,235,103(103,784)17,131,319
75,951,42340,210,984116,162,407
$ 93,186,526$ 40,107,200$ 133,293,726
DRAFT 02.25.2020
23
CITY OF LA PORTE
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2019
Tax 2015
Increment Certificate of
Reinvestment Obligation
GeneralDebt ServiceZoneBonds
Assets
Current Assets:
Cash and cash equivalents41,500,034$ 4,306,305$ 3,329,295$ 3,708,316$
Investments14,152,528 31,323 - 39
Receivables, net of allowance for
uncollectible 6,086,448168,059 - -
Due from other funds 1,091,579 - - -
Inventories163,083 - - -
Total Assets
$ 62,993,672$ 4,505,687$ 3,329,295$ 3,708,355
Liabilities:
Accounts payable$ 2,148,559$ - $ 1,481,197$ 182,749
Accrued salaries 583,002 - - -
Due to other funds - - - 769,111
Unearned revenues - - - -
Other payables81,019 - - -
Total Liabilities
2,812,580 - 1,481,197 951,860
Deferred Inflows of Resources
Unavailable revenue - property taxes78,69713,658 - -
Unavailable revenue - fines and fees791,511 - - -
Unavailable revenue - EMS799,480 - - -
Unavailable revenue - other901,147 - - -
Total Deferred Inflows of Resources
2,570,835 13,658 - -
Fund Balances:
Nonspendable:
Inventory163,083 - - -
Restricted for:
Debt service 4,492,029- - -
Economic development - - 1,848,098 -
Senior citizen programs - - - -
Replacement of trees - - - -
Municipal court building and technology - - - -
Park improvements - - - -
Public safety - - - -
Capital projects - - - -
Public works - - - 2,756,495
Other - - - -
Assigned:134,391 - - -
Unassigned:57,312,783 -
Total Fund Balances
57,610,257 4,492,029 1,848,098 2,756,495
Total Liabilities, Deferred Inflow of
Resources and Fund Balances
$ 4,505,68762,993,672$ 3,329,295$ 3,708,355$
See Notes to Financial Statements.
DRAFT 02.25.2020
24
Exhibit A-3
Nonmajor Total
Governmental Governmental
FundsFunds
$ 82,024,27729,180,327$
19,778,0685,594,178
1,729,7907,984,297
1,091,579-
163,083-
$ 111,041,30436,504,295$
$ 4,721,880909,375$
5,598588,600
1,091,579322,468
1,1431,143
81,019-
6,484,2211,238,584
92,355-
- 791,511
- 799,480
- 901,147
- 2,584,493
- 163,083
1,083,816 5,575,845
6,144,144 7,992,242
10,543 10,543
545,695 545,695
521,625 521,625
147,674 147,674
2,034,636 2,034,636
21,204,500 21,204,500
3,030,960 5,787,455
542,118 542,118
- 134,391
57,312,783-
35,265,711 101,972,590
$ 36,504,295$ 111,041,304
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26
Exhibit A-4
CITY OF LA PORTE
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
September 30, 2019
Total fund balance, governmental funds
$ 101,972,590
Amounts reported for governmental activities in the statement of net position are different
because:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds.69,382,994
Certain other long-term assets (property taxes, court fines, EMS and other receivables) are
not available to pay current period expenditures and therefore are not reported in this fund
financial statement, but are reported in the governmental activities of the statement of net
position. 2,584,493
Some liabilities and deferred outflows and inflows are not due and payable in the current
period and are not included in the fund financial statement, but are included in the
governmental activities of the statement of net position.
Bonds payable(16,425,000)
Certificates of obligation(19,405,000)
Premium on bonds(1,068,378)
Deferred charge on refunding632,995
Due to developer(2,624,661)
Compensated absences(3,176,838)
Deferred inflows/outflows related to pensions7,998,556
Deferred inflows/outflows related to OPEB2,347,698
Net pension liability(21,470,232)
Total OPEB liability(44,610,690)
The assets and liabilities of certain internal service funds are not included in the fund financial
statements but are included in the governmental activities of the Statement of Net Position.17,047,999
Net Position of Governmental Activities
$ 93,186,526
See Notes to Financial Statements.
DRAFT 02.25.2020
27
CITY OF LA PORTE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019
2015
Tax Increment Certificate of
Reinvestment Obligation
GeneralDebt ServiceZoneBonds
Revenues
Taxes:
Property taxes and penalties19,019,611$ 3,539,730$ 4,128,250$ -$
Other taxes88,624- - -
Licenses and permits1,344,447 - - -
Fines and forfeitures2,277,993 - - -
Sales and use taxes6,499,254 - - -
Industrial payments14,899,624 - - -
Franchise taxes3,035,844 - - -
Intergovernmental revenues893,217 - - -
Investment Earnings1,436,23816,533 1,377 84,837
Charges for services5,784,392 - - -
Miscellaneous316,015 - - -
Total revenues
55,595,259 3 ,556,263 4,129,627 84,837
Expenditures
Current:
General government10,244,208 - 383,112 -
Public safety18,579,342 - - -
Public works3,265,194 - - -
Health and sanitation2,977,561 - - -
Culture and recreation5,929,639 - - -
Capital outlay
28,099 - - 731,564
Debt service:
Principal 3,735,0003,009,168- -
Interest and fiscal charges -998,822181,995 -
Total expenditures 41,024,043 4 ,733,822 3,574,275 731,564
Excess (Deficiency) of Revenues
Over (Under) Expenditures
14,571,216 (1,177,559) 555,352 (646,727)
Other Financing Sources (Uses)
Transfers in57,5001,271,124 - -
Transfers out (4,325,532) - - -
Total Other Financing Sources (Uses)
(4,268,032) 1,271,124 - -
Net Change in Fund Balance
10,303,184 93,565 555,352 (646,727)
Fund Balances, Beginning
47,307,073 4 ,398,464 1,292,746 3,403,222
Fund Balances, Ending
$ 57,610,257$ 4,492,029$ 1,848,098$ 2,756,495
See Notes to Financial Statements.
DRAFT 02.25.2020
28
Exhibit A-5
Nonmajor Total
Governmental Governmental
FundsFunds
$ 26,687,591-$
- 88,624
- 1,344,447
991,718 3,269,711
7,356,149 13,855,403
14,899,624-
- 3,035,844
236,437 1,129,654
676,157 2,215,142
278,509 6,062,901
135,347 451,362
9,674,317 73,040,303
1,014,460 11,641,780
1,313,181 19,892,523
1,747,071 5,012,265
- 2,977,561
1,290,505 7,220,144
2,135,575 2,895,238
- 6,744,168
- 1,180,817
7,500,792 57,564,496
2,173,525 15,475,807
3,837,852 5,166,476
(2,926,562) (7,252,094)
911,290 (2,085,618)
3,084,815 13,390,189
32,180,896 88,582,401
$ 35,265,711$ 101,972,590
DRAFT 02.25.2020
29
Exhibit A-6
CITY OF LA PORTE
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balance-total governmental funds.13,390,189$
Governmental funds report capital outlays as expenditures. However in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense. This is the amount by which capital outlay ($4,500,321) exceeded
depreciation ($4,482,792)17,529
Governmental funds do not present revenues that are not available to pay current obligations.
In contrast, such revenues are reported in the Statement of Activities when earned.
149,441
The payment of long-term debt.3,735,000
Some expenses reported in the statement of activities do not require the use of current
financial resources are therefore are not reported as expenditures in governmental funds. This
adjustment reflects the net change in:
Deferred outflows related to pensions6,944,112
Deferred inflows related to pensions2,723,496
Net pension liability(10,971,854)
Deferred outflows related to OPEB(553,832)
Deferred inflows related to OPEB(118,716)
Total OPEB liability(1,832,184)
Compensated absences payable24,479
Deferred charges on refunding(168,306)
Amortization of bond premiums266,841
Payment to developer3,098,130
The net income (loss) of certain activities of internal service funds is reported with
governmental activities.530,778
Change in Net Position of Governmental Activities
$ 17,235,103
See Notes to Financial Statements.
DRAFT 02.25.2020
30
Exhibit A-7
CITY OF LA PORTE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2019
Business-Type Activities - Enterprise Funds
Governmental
Total Activities -
Enterprise Internal
UtilityLPAWAAirportFundsService Funds
Assets
Current Assets:
Cash and cash equivalents9,425,6952,204,408106,85211,736,955$ 6,763,961$
Investments3,051,188755,32736,6123,843,127 2,378,258
Other receivables, net of allowance- - - - 14,729
Due from other governments - - - - 119,927
Inventories24,000- - 24,000 48,314
Accounts receivable, net of allowance
for doubtful accounts1,068,684113,9237,4631,190,070 -
Accrued interest receivable11,8402,93014214,912 -
Total Current Assets 13,581,4073,076,588 151,06916,809,0649,325,189
Noncurrent Assets:
Capital assets:
Land and Improvements224,308 223,483447,791- 60,914
Construction in progress2,855,637 225,6753,081,312- -
Buildings and improvements156,649 5,941,3016,097,950- -
Improvements other than buildings70,381,92915,429,680 85,811,609- -
Vehicles and equipment4,085,51147,371 4,132,882- 20,213,747
Less accumulated depreciation(52,119,225)(11,409,877)(4,306,949) (67,836,051)(11,850,811)
Total Noncurrent Assets 25,584,8094,067,1742,083,51031,735,4938,423,850
Total Assets
39,166,2167,143,7622,234,57948,544,55717,749,039
Deferred Outflows
Deferred outflows related to pensions1,017,823- - 1,017,823 -
Deferred outflows related to OPEB336,590- - 336,590 -
Total Deferred Outflows
1,354,413- 1,354,413- -
Liabilities
Current liabilities:
Accounts payable 167,543267,197 - 434,740 48,089
Accrued wages payable65,067-64965,716 -
Accrued liabilities25,595- - 25,595 16,794
Customer deposits632,013- 1 ,500 633,513 -
Claims and judgments - - - - 598,478
Long-Term Debt, Current Portion
Compensated absences6,453 - - 6,453 -
Total Current Liabilities896,671267,197 2 ,149 1,166,017663,361
Noncurrent Liabilities:
Compensated absences122,597- - 122,597 37,679
Net pension liability2,303,674- - 2,303,674 -
Net OPEB liability6,020,694- - 6,020,694 -
Total Noncurrent Liabilities8,446,965 - - 8,446,965 37,679
Total Liabilities
9,343,636267,197 2 ,149 9,612,982701,040
Deferred Inflows of Resources
Deferred inflows related to pensions157,989- - 157,989 -
Deferred inflows related to OPEB20,799- - 20,799 -
Total Deferred Inflows of Resources
178,788 - - 178,788 -
Net Position
Net Investment in capital assets25,584,809 4,067,1742,083,51031,735,4938,423,850
Unrestricted5,413,3962,809,391148,9208,371,707 8,624,149
Total Net Position
$ 30,998,205$6,876,565$ 2,232,430$40,107,200$ 17,047,999
See Notes to Financial Statements
DRAFT 02.25.2020
31
Exhibit A-8
CITY OF LA PORTE
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For the Year Ended September 30, 2019
Business-Type Activities - Enterprise Funds
Governmental
Total Activities -
Enterprise Internal
UtilityLPAWAAirportFundsService Funds
Operating Revenues
Charges for services$ 8 ,389,773 1,109,495 5 8,971$ 9,558,239$ 9,784,458
Miscellaneous - - - - 2,030
Total Operating Revenues
8,389,773 1,109,495 5 8,971 9,558,239 9,786,488
Operating Expenses
Personnel3,830,853 - 1 6,670 3,847,523 1,145,108
Supplies and materials282,15616,3783,393301,927 9,033,139
Purchased water - 836,871 - 8 36,871 -
Other services2,001,144463,15223,151 2 ,487,447 -
Depreciation1,871,080455,459113,794 2 ,440,333 1,750,353
Total Operating Expenses
7,985,233 1,771,860 1 57,008 9,914,101 11,928,600
Operating Income (Loss)
404,540 (662,365) (98,037) (355,862) (2,142,112)
Non-Operating Revenues (Expenses)
Investment earnings (loss)282,36471,0976,824360,285 199,451
Gain/loss on disposal of capital
assets (12,350) - - (12,350) 28,987
Total Non-Operating Revenue
270,014 7 1,097 6 ,824 3 47,935 228,438
Income (Loss) Before
Contributions and Transfers
674,554 (591,268) (91,213) (7,927) (1,913,674)
Contributions and Transfers
Capital contributions - 1 25,816 1 37,161 2 62,977 -
Transfers from other funds - - - - 2,465,037
Transfer (to) other funds(358,028) - (806) (358,834) (20,585)
Total Contributions and
Transfers
(358,028) 125,816 1 36,355 (95,857) 2,444,452
Change in Net Position
316,526 (465,452) 4 5,142 (103,784) 530,778
Net position, beginning
30,681,679 7 ,342,017 2 ,187,288 40,210,984 16,517,221
Net position, Ending
$ 30,998,205$ 6,876,565$ 2,232,430$ 40,107,200$ 17,047,999
See Notes to Financial Statements
DRAFT 02.25.2020
32
Exhibit A-9
CITY OF LA PORTE(Page 1 of 2)
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30, 2019
Business-type Activities - Enterprise Funds
Governmental
Total Activities -
Enterprise Internal Service
UtilityLPAWAAirportFundsFunds
Cash Flows from Operating Activities
Receipts from customers and users8,$ 400,962$ 1 ,112,772$ 6 5,663$ 9,579,397$ 9,800,822
Disbursed for personnel services (3,430,922) (16,670)- (3,447,592) (1,133,516)
Disbursed for good and services to suppliers (2,399,543) (1,137,291) (29,164) (3,565,998) (8,960,186)
Net Cash Provided (Used) by Operating Activities
2,570,497 (24,519) 19,829 2,565,807 (292,880)
Cash Flows From Noncapital Financing Activities
Transfers from other funds - - --2,465,037
Transfer to other funds(358,028) - (806)(358,834)(20,585)
Net Cash Provided (Used) by Noncapital Financial
Activities
(358,028) -(806)(358,834)2,444,452
Cash Flows from Capital & Related Financing Activities
Proceeds from the sale of equipment - - -- 102,309
Acquisition and construction of capital assets (757,900) (251,496)- (1,009,396) (663,133)
Net Cash Provided (Used) by Capital & Related
Financing Activities
(757,900) (251,496)- (1,009,396) (560,824)
Cash Flows from Investing Activities
Interest Received 290,568 7 3,222 7,351 371,141 -
Sales of investments 1 ,409,103 7 04,987 1 39,991 2,254,081 1,163,821
Net Cash Provided (Used) by Investing Activities
1,699,671 7 78,209 1 47,342 2,625,222 1,363,272
Net Increase (Decrease) in Cash and Cash
Equivalents
3,154,240 7 53,690 (85,131) 3,822,799 2,954,020
Cash and cash equivalents, beginning 6 ,271,455 1 ,450,718 1 91,983 7,914,156 3,809,941
Cash and Cash Equivalents, Ending
$ 9,425,695$ 2 ,204,408$ 1 06,852$ 11,736,955$ 6,763,961
See Notes to Financial Statements.
DRAFT 02.25.2020
33
Exhibit A-9
CITY OF LA PORTE(Page 2 of 2)
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30, 2018
Business-type Activities - Enterprise Funds
Governmental
Activities -
Total Enterprise Internal Service
UtilityLPAWAAirportFundsFunds
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities
Operating income (loss)$ 4 04,540$ (662,365)$ (98,037)$ (355,862)$ (2,142,112)
Adjustments to reconcile operating income to net cash
used by operating activities:
Depreciation1,871,080455,459113,7942,440,333 1,750,353
(Increase) decrease in accounts receivable (4,046) 3 ,277 8 ,4017,63214,334
(Increase) in inventories(10,800) - - (10,800)(3,279)
Increase (decrease) in accounts payable (105,443)179,110 (2,620) 71,04724,603
Increase (decrease) in deferred outflow-pensions (732,093) - - (732,093) -
Increase (decrease) in deferred outflow-OPEB 74,984 - - 74,984 -
Increase (decrease in accrued liabilities 23,893 - - 23,893 4,994
Increase (decrease) in unearned revenue - - (1,709) (1,709) -
Increase (decrease) in customer deposits 15,235 - - 15,235 -
Increase (decrease) in claims - - - - 51,629
Increase (decrease) in compensated absences(14,949) - - (14,949) 6,598
Increase (decrease) in net pension liability1,106,447 - - 1,106,447 -
Increase (decrease) in net OPEB liability252,961 - - 252,961 -
(Increase) decrease in deferred inflow-pensions (327,601) - - (327,601) -
(Increase) decrease in deferred inflow-OPEB 16,289 - - 16,289 -
Net Cash Provided (Used) by Operating Activities
$2,570,497$ (24,519)$ 19,829$2,565,807$(292,880)
Noncash Investing, Capital and Financing Activities:
Capital asset contributions from governmental funds$ -$ - $ - $ - $ -
See Notes to Financial Statements.
DRAFT 02.25.2020
34
CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENT
Note 1 – Summary of Significant Accounting Policies
The City of La Porte, Texas (the “City”) was incorporated under the laws of the State of Texas on August
10, 1892. The City operates under a “Council-Manager” form of government and provides the following
services as authorized by its charter: public safety, development services, public health and welfare, culture
and recreation and waterworks.
The accounting and reporting policies of the City relating to the funds included in the accompanying basic
financial statements conform to U.S. generally accepted accounting 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
The City’s basic financial statements include the accounts of all City operations. The City, with its elected
governing body of mayor and eight council members, is considered a primary government. As required by
GAAP, the basic financial statements include the City and its component units, entities for which the
government is considered to be financially accountable. Blended component units, although legally separate
entities, are in substance, part of the government’s operations. All component units have been included as
blended component units because of the significance of their operations and financial relationships with the
City.
The La Porte Area Water Authority (the “Authority”) is governed by a five-member board appointed by
the City Council. Although it is a legally separate entity, the Authority provides services almost exclusively
for the City’s water operations, and is in substance a part of the City’s primary operations. The Authority
was created by the City to finances the operations involved in obtaining surface water supplies and
converting these supplies to potable water. This water is sold primarily to the City of La Porte (86%) with
the remainder being sold to other neighboring political subdivisions. The operations of the Authority are
reported as a proprietary fund type.
The Tax Increment Reinvestment Zone (the “Zone”) is governed by a nine-member board appointed by the
City Council. The Zone provides benefits exclusively for the City through reinvestment financing of ad
valorem taxes, which are utilized for capital improvements for the City of La Porte. The Zone is presented
as a governmental fund type.
The Section 4B Sales Tax Corporation provides services that exclusively 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.
The Emergency Service District provides public safety services exclusively to the city of La Porte. The
Emergency Services District is governed by a seven member board appointed by City Council. The district
is a governmental fund type.
The Street Maintenance Component Unit provides infrastructure improvements exclusively to the City of
La Porte. City Council directs staff operations through the annual budget process.
Complete financial statements for each of the individual component units may be obtained through the City
of La Porte.
35
DRAFT 02.25.2020
CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
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 activities incorporate data
from the City’s enterprise funds. Separate financial statements are 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 and other charges
between the City’s various other functions. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned
C. Fund Financial Statements
The fund financial statements provide information about the City’s funds and blended 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:
General Fund
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.
Debt Service Fund
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.
2015 Certificate of Obligation Bonds Fund
The 2017 Certificate of Obligation Bonds Fund is used to account for bond proceeds and expenditures of
those funds related to the construction of a wastewater system.
Tax Increment Reinvestment Zone One Fund (TIRZ)
The Tax Increment Reinvestment Zone One Fund (TIRZ) 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.
DRAFT 02.25.2020
36
CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
C. Fund Financial Statements (continued)
The City reports the following major Enterprise Funds:
TheUtility Enterprise Fund is used to account for operations of the water and sewer services to the
residents of the City. All activities necessary to provide such services are accounted for in this fund,
but not limited to administration, operations and maintenance of the water and sewer system and
billing and collection activities. The fund also accounts for the accumulation of resources for, and
the payment of, long-term debt principal and interest for water and sewer debt. All costs are
financed through charges to utility customers with rates 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 the governmental 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 activities 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 or economic resources. The basis of accounting indicates the timing of transactions or
events for recognition in the financial statements.
DRAFT 02.25.2020
37
CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
D. Measurement Focus and Basis of Accounting (continued)
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 the City
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. Cash and Cash Equivalents and Investments
Cash is defined as currency, demand deposits with banks and other financial institutions, and any
other kind of account that has the general characteristics of demand deposits where funds may
be added or withdrawn at any time without penalty or prior notice. Cash equivalents are defined
as liquid investments that are both readily convertible to known amounts of cash and so near
their maturity they present insignificant risk or changes in value because of changes in interest
rates. Only investments with original maturities of three months or less qualify under this
definition.
DRAFT 02.25.2020
38
CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
E. Cash and Cash Equivalents and Investments (continued)
The City reports all investments at fair-value, except for investment positions in external investment
pools, such as Texas CLASS, TexPool and LOGIC, which are reported at amortized cost. The Texas
CLASS Board of Trustees, which is comprised of active members of the pool and elected by the
participants guided by the Advisory Board, oversees the management of Texas CLASS. The State
Comptroller of Public Accounts oversees TexPool. LOGIC is directed by a governing board of
experienced local government officials, finance directors and treasurers and is managed by a team of
industry leaders that are focused on providing professional investment services. Federated Investors is the
full service provider to the pools managing the assets providing participant services, and arranging for all
custody and other functions in support of the pool’s operations under contract with the Comptroller.
The City’s local government investment pools are recorded at amortized costs as permitted by GASB
Statement No. 79, Certain Investment Pools and Pool Participants.
The City reports all investments, except external investment pools, at fair value based on quoted market
prices at year-end date. The City categorizes fair value measurements of its investments based on the
hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has
three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are
quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs.
F. Receivables
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion
that is expected to be uncollectible.
G. Inventory
Inventories are valued at costs using the first in/first out (FIFO) method. The costs of governmental fund
type inventories are recorded as expenditures when consumed rather than when purchased. A portion of the
fund balance is classified as non-spendable to reflect minimum inventory quantities considered necessary
for the City’s continuing operations.
DRAFT 02.25.2020
39
CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
H. 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
Useful Life
Asset Description
Buildings20 years
Building improvements20 years
Infrastructure20-30 years
Vehicles4-10years
Machinery and equipment4-10 years
Water and sewer systems10-20 years
I. Compensated Absences
The City’s employees earn vacation and sick leave, which may either be taken or accumulated, up to a
certain amount, until paid upon termination or retirement. For all funds, this liability reflects amounts
attributable to cumulative employee services already rendered, where the payment is probable and can be
reasonably estimated. The current and long-term portion of the governmental fund type liabilities are
recorded in the government-wide 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.
DRAFT 02.25.2020
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
J. 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 about the order in which the resources are considered to be applied. It is
the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position
is applied.
K. 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 the order in which the resources are considered to be
applied. It is the City’s policy to 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.
L. 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 a refunding.
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 does not
meet the definition of “restricted” or “net investment in capital assets.”
DRAFT 02.25.2020
41
CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
M. Fund Balance
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.
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 appropriations in the subsequent year’s appropriated budget. Unlike commitments,
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 outlined in the City’s Financial
Management Policies as adopted by City Council by resolution.
N. 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.
O. 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.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
P. Industrial Payments
A significant portion of the City’s revenue is derived from separate contractual agreements with each
industrial company that lies within the City’s extraterritorial jurisdiction (known as the “industrial district”).
These companies have agreed to pay an amount “in-lieu of taxes” in the un-annexed area within the City’s
extraterritorial jurisdiction. In the current contracts, the entity’s agree to pay the City a percentage of what
the ad valorem taxes would have been had the entities land, improvements, and inventory been within the
corporate limits of the City.
Q. 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 delivering goods in
connection with the proprietary fund’s principal ongoing operations. The principal operating revenues of
the enterprise funds are charges to customers for sales and services. 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.
R. 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.
S. Deferred Outflows/Inflows of Resources
Deferred outflows and inflows of resources are reported in the financial position as described below:
Adeferred outflow of resources is a consumption of a government's net position (a decrease in assets in
excess of any related decrease in liabilities or an increase in liabilities in excess of any related increase
in assets) by the government that is applicable to a future reporting period. The City has three items that
qualify for reporting in this category:
Deferred outflows or resources for refunding - Reported in the government-wide statement of
net position, this 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.
DRAFT 02.25.2020
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
S. Deferred Outflows/Inflows of Resources (continued)
Deferred outflows of resources for pension – Reported in the government-wide financial
statement of net position, this deferred outflow results from pension plan contributions made
after the measurement date of the net pension liability and the results 1) differences between
projected and actual earnings on pension plan investments; 2) changes in actuarial assumptions;
3) differences between expected and actual actuarial experiences and 4) changes in the City’s
proportional share of pension liabilities. The deferred outflows of resources related to pensions
resulting from City’s contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the next fiscal year. The deferred outflows resulting from
differences between projected and actual earnings on pension plan investments will be amortized
over a closed five year period. The remaining pension related deferred outflows will be amortized
over the expected remaining service lives of all employees (active and inactive employees) that
are provided with pensions through the pension plan.
Deferred outflows of resources for other post-employment benefits (OPEB) other than pension
– Reported in the government wide financial statement of net position, this deferred outflow
results from OPEB plan contributions made after the measurement date of the net OPEB liability
and the results of 1) differences between projected and actual earnings on OPEB plan
investments; 2) changes in actuarial assumptions; 3) differences between expected and actual
actuarial experiences and 4) changes in the City’s proportional share of OPEB liabilities. The
deferred outflows of resources related to OPEB resulting from City contributions subsequent to
the measurement date will be recognized as a reduction of the net OPEB liability in the next fiscal
year. The deferred outflows resulting from differences between projected and actual earnings on
OPEB investments will be amortized over a closed five year period. The remaining
postemployment related deferred outflows will be amortized over the expected remaining service
lives of all employees (active and inactive employees) that are provided with OPEB through the
OPEB plan.
Adeferred inflow of resources is an acquisition of a government's net positions (an increase in assets in
excess of any related increase in liabilities or a decrease in liabilities in excess of any related decrease in
assets) by the government that is applicable to a future reporting period. The City has three items that
qualify for reporting in this category:
Deferred inflows of resources for unavailable revenues - Reported only in the governmental
funds balance sheet, unavailable revenues from property taxes arise under the modified accrual
bases of accounting. These amounts are deferred and recognized as an inflow of resources in the
period that the amounts become available.
Deferred inflows of resources for pension – reported in the government-wide financial statement
of net position, these deferred inflows result primarily from 1) changes in actuarial assumptions;
2) differences between expected and actual actuarial experiences and 3) changes in the City’s
proportional share of pension liabilities These pension related deferred inflows will be amortized
over the expected remaining service lives of all employees (active and inactive employees) that
are provided with pensions through the pension plan.
DRAFT 02.25.2020
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
S. Deferred Outflows/Inflows of Resources (continued)
Deferred inflows of resources for OPEB – Reported in the government wide financial statement
of net position, this deferred inflow results primarily from 1) changes in actuarial assumptions;
and 2) differences between expected and actual actuarial experiences. These OPEB related
deferred inflows will be amortized over the expected remaining service lives of all employees
(active and inactive employees) that are provided with OPEB through the OPEB plan.
T. 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 additions to/deductions from the City’s Fiduciary Net
Position have been determined on the 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, City specific
information about its Fiduciary Net Position in the TESRS and additions to/deductions from the City’s
Fiduciary Net Position have been determined on the same basis as they are reported by TESRS. 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.
U. Post-employment Healthcare Benefits
The City participates in a defined benefit group-term life insurance plan, both for current and retired
employees, administered by the Texas Municipal Retirement System (TMRS). The City reports the total
liability for this plan on the government-wide and proprietary fund financial statements. The City
administers other post-employment benefits (“OPEB”) through a defined benefit medical plan to provide
coverage for eligible retirees and their dependents. Information regarding the City’s total OPEB liability is
obtained from TMRS through a report prepared for the City by TMRS’ consulting actuary, Gabriel Roeder
Smith & Company, in compliance with GASB Statement No. 75.
V. 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 reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results could
differ from those estimates.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 – Summary of Significant Accounting Policies (continued)
W. Implementation of New Standards
The following standards have been issued, but have not been implemented as not yet effective.
GASB Statement No. 83, Certain Asset Retirement Obligations. This Statement establishes criteria for
determining the timing and pattern of recognition of a liability and a corresponding deferred outflow of
resources for asset retirement obligations.
GASB Statement No. 84, Fiduciary Activities. This Statement establishes standards of accounting and
financial reporting for fiduciary activities.
GASB Statement No. 87, Leases. This Statement establishes standards of accounting and financial reporting
for leases by lessees and lessors.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period.
This Statement establishes accounting requirements for interest cost incurred before the end of a
construction period.
Note 2 – 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.
The Council has adopted a written investment policy regarding the investment of City funds as required by
the Public Funds Investment Act (Chapter 2256, Texas Government Code). The investments of the City are
in compliance with the City’s investment policy. The City’s investment policy is more restrictive than the
PFIA requires. It is the City’s policy to restrict its direct investments to obligations of the U.S. Government
or U.S. Government Agencies, fully collateralized certificates of deposit, bankers’ acceptances, mutual
funds, repurchase agreements and local government investment pools. The maximum maturity allowed is
five years from date of purchase. The City’s investment policy does not allow investments in collateralized
mortgage obligations, floating rate investments or swaps.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 2 – Deposits and Investments (continued)
Cash, Cash Equivalents and Investments
Cash and cash equivalents are considered to be cash on hand, demand deposits with banks and other
financial institutions, and any other kind of account that has the general characteristics of demand deposits
where funds may be added or withdrawn at any time without penalty or prior notice. Cash equivalents are
defined as liquid investments that are both readily convertible to known amounts of cash and so near their
maturity they present insignificant risk or changes in value because of changes in interest rates. This
includes balances in privately managed public funds investment pools (“TexPool” “Texas CLASS” and
“LOGIC”). Only investments with original maturities of three months or less qualify under this definition.
The City’s local government investment pools are recorded at amortized costs as permitted by GASB
Statement No. 79, Certain Investment Pools and Pool Participants.
Investments consist of United States (U.S.) Government and Agency Securities. The City reports all
investments at fair value based on quoted market prices at year end date.
The City reports all investments, except external investment pools, at fair value based on quoted market
prices at year-end date. The City categorizes fair value measurements of its investments based on the
hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has
three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are
quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs.
The following schedule shows the City’s recorded cash and equivalents at year-end:
Total Reported Value
Internal
Governmental Service Enterprise
FundFundsFundsFundsTotal
Cash deposits22,795,202$ $ 226,146$ 1,172,223$ 24,193,571
Investment pools59,229,0756,537,81510,564,73276,331,622
Total cash and equivalents82,024,277$ $ 6 ,763,961$ 1 1,736,955$ 100,525,193
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 2 – Deposits and Investments (continued)
Cash and Cash Equivalents (continued)
At September 30, 2019, the carrying amount of deposits was $24,193,571 and the respective bank balances
were $24,411,273 . The City’s bank balances were fully insured or collateralized with securities held by
the City’s agent in the City’s name.
Investments
The City reported the following investments at September 30, 2019:
Total Reported Value
Internal
Governmental Service Enterprise
FundFundsFundsFundsTotal
U.S. Government Securities19,778,068$ $ 2 ,378,258$ 3,843,127$ 25,999,453
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, 2019:
U.S. Government Securities (FHLMC) of $7,992,043 were valued using an option-adjusted
discounted cash flow model (Level 2 inputs).
U.S. Government Securities (FHLB) of $16,008,104 were valued using a documented trade history
in exact security pricing model (Level 2 inputs).
U.S. Government Securities (FFCB) of $1,999,306 were valued using a documented trade history
in exact security pricing model (Level 1 inputs).
Concentration on Credit Risk
The policy does not require investments to be staggered in a way that protects interest income from the
volatility of interest rates. The policy has not established limitations on percentages of the total portfolio
that may be invested in securities other than the repurchase agreements, Treasury bills and notes or insured
and collateralized Certificates of Deposits.
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48
CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 2 – Deposits and Investments (continued)
Investments (continued)
Investment Rate Risk
At year-end, the City had the following investments subject to interest rate risk disclosure, under U.S.
GAAP, by investment type:
Weighted
Average Percentage of WAM
Fair ValueMaturity (Days)PortfolioCalculation
U.S. Government Securities
Federal Home Loan Bank Agency Notes16,008,104$ 38116%60
Freddie Mac Agency Notes 7,992,0431268%10
Federal Farm Credit Banks 1,999,3064572%9
Total U.S. Government Securities 25,999,453
Local Government Investment Pools:
TexPool 26,023,3365025%9
Texas CLASS 12,250,4043512%6
Logic 38,057,8824937%18
Total Local Government Investment Pools76,331,622 134
Total$102,331,075
The City’s investment policy specifies the maximum stated maturity from the date of purchase for any
individual investments may not exceed 5 years and the maximum dollar weighted average maturity for the
pooled fund group (investment portfolio) may not exceed 2 years.
Credit Risk
The primary objective of the City’s adopted Investment Policy is the safety of principal. Credit risk within
the City’s portfolio among authorized investments approved by the City’s adopted Investment Policy is
represented in U.S. Treasury Bills, Notes or Bonds, and other securities which are guaranteed as to principal
and interest by the full faith and credit of the United States of America, collateralized or fully insured
certificates of deposits, FDIC insured banks in the State of Texas, repurchase agreements if secured by U.S.
Treasury Bills, Notes or Bonds and Public Funds Investment Pools.
All of the City’s purchased investments in U.S. Government Securities were rated AA+ and Aaa by
Standard & Poor’s and Moody’s respectively.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 3 – Property Taxes
The appraisal of property within the City is the responsibility of the Harris County Appraisal District (the
“Appraisal District”). The Appraisal District is required under the Property Tax Code to appraise all
property within the county on the basis of 100% of its market value. The value of real property within the
Appraisal District must be reviewed every five years; however, the City may, at its own expense, require
annual reviews of appraised values. The City may challenge appraised values established by the Appraisal
District through various appeals and, if necessary, take legal action. Under this legislation, the City
continues to set tax rates on City property. However, if the 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 rate to no more than the rollback tax rate. The City’s property
taxes are levied annually in October on the basis of the Appraisal District’s assessed values as of January 1
of that calendar year. Appraised values are established by the Appraisal District at market value, assessed
at 100% of appraised value and certified by the Harris County Appraisal District Board of Review. The
City property taxes are billed and collected by the City’s Tax Assessor/Collector. Such taxes are applicable
to the fiscal year in which they are levied and become delinquent with an enforceable lien on property on
February 1 of the current calendar year. The City is permitted, by Article XI, Section 5, of the State of
Texas Constitution and the City Charter, to levy property taxes up to $2.50 per $100 of assessed valuation
for general governmental services. Within the $2.50 maximum levy, there is no legal limit upon the amount
of property taxes, which can be levied for debt service. The property tax rates to finance general
governmental services and debt service for fiscal year 2019 were $0.605 and $0.105, respectively, per $100
of assessed valuation. The 2018 assessed value and total tax levy as adjusted through September 30, 2019
were $3,400,868,119 and $23,814,367, 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 value of agricultural land is reduced to agricultural value for purposes
of the City’s tax levy 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 Appraisal District (“HCCAD”)
establishes appraised values. Taxes are levied by the City Council based on the appraised values and
operating needs of the City.
Tax Increment Reinvestment Zone – Property Taxes
The City, La Porte Independent School District and Harris County are participating taxing entities within
the tax increment reinvestment zone. The amount of a participant’s tax increment for a year is the amount
of property taxes levied and collected by a participant for that year on the captured appraised value of real
property taxable by the participant and located in the zone. The captured appraised value of real property
taxable by the participant and located in the zone for that year less the tax increment base, which is the total
appraised value of all real property taxable by the participant and located in the zone on January 1 of the
year in which the zone was designed as such under the tax increment financing act (the “TIF Act”).
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 3 – Property Taxes (continued)
Tax Increment Reinvestment Zone – Property Taxes (continued)
Each participant is required to collect taxes on property located within the zone in the same manner as other
taxes are collected. The participant is required to pay into the tax increment fund the collected tax
increments by the first day of each calendar quarter or pursuant to the terms of the participation set forth in
their respective inter-local agreements.
Note 4 – 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, 2015 Certificate of Obligation Bonds Fund, TIRZ and nonmajor governmental funds in the aggregate,
including the applicable allowances for uncollectible accounts.
Debt
Service Other Total
General FundFund GovernmentalGovernmental
Receivables
Taxes3,185,469$ 253,002$ 1,315,471$ 4,753,942$
Municipal court791,511- - 791,511
Other440,622 - 18,068 458,690
Mowing & demolition689,174 - - 689,174
EMS1,332,466 - - 1,332,466
Interest55,08313021,708 76,921
Solid waste167,518 - - 167,518
Due from other governments448,500 -374,543823,043
Less: Allowance for uncollectible (1,023,895) (85,073) - (1,108,968)
Net Receivables.$ 6,086,448$ 168,059$ 1,729,790$ 7,984,297
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 $102,722
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 5 – Capital Assets
Capital assets activity for the year ended September 30, 2019, was as follows:
Balance Additions Retirements Balance
September 30, 2018(Increases) and Transfers September 30, 2019
Governmental activities:
Capital assets, not being depreciated
Land10,387,209$ -$ (60,914)$ 10,326,295$
Construction in progress2,445,6132,014,990 (1,986,978) 2,473,625
Total capital assets, not being depreciated12,832,822 2,014,990 (2,047,892) 12,799,920
Capital assets being depreciated:
Buildings and Improvements38,733,41672,478 (442,404) 38,363,490
Improvements other than buildings35,220,561118,220 579,351 35,918,132
Infrastructure54,111,3222,237,253 1,567,971 57,916,546
Machinery and equipment25,091,922809,523 (735,048) 25,166,397
Total capital assets being depreciated153,157,221 3,237,474 969,870 157,364,565
Less accumulated depreciation for:
Buildings and Improvements(24,795,415) (1,419,667) 131,853 (26,083,229)
Improvements other than buildings(15,366,017) (1,342,337) 101,029 (16,607,325)
Infrastructure(32,096,856) (1,482,791) - (33,579,647)
Machinery and equipment(14,739,476) (1,988,350) 640,386 (16,087,440)
Total accumulated depreciation(86,997,764) (6,233,145) 873,268 (92,357,641)
Total capital assets being depreciated, net66,159,457 (2,995,671) 1,843,138 65,006,924
Governmental activities capital assets, net78,992,279$ (980,681)$ (204,754)$ 77,806,844$
Business-type activities:
Capital assets, not being depreciated
Land447,791$ -$ -$ 447,791$
Construction in progress2,035,2881,323,552 (277,528) 3,081,312
Total capital assets, not being depreciated:2,483,079 1,323,552 (277,528) 3,529,103
Business-type assets, being depreciated
Buildings and Improvements156,649- - 156,649
Improvements other than buildings90,882,944 916,192 (46,226) 91,752,910
Machinery and equipment4,315,418 32,243 (214,779) 4,132,882
Total capital assets being depreciated 95,355,011 948,435 (261,005) 96,042,441
Less accumulated depreciation for:
Buildings and Improvements (55,901) (2,440,333) - (2,496,234)
Improvements other than buildings (63,533,829) - - (63,533,828)
Machinery and equipment (2,048,391) - 242,402 (1,805,989)
Total accumulated depreciation (65,638,121) (2,440,333) 242,402 (67,836,051)
Total capital assets being depreciated, net 29,716,890 (1,491,898) (18,603) 28,206,390
Business Type activities capital assets, net$ 32,199,969$ (168,346)$ (296,131)$ 31,735,493
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 5 – Capital Assets (continued)
Depreciation was charged to functions/programs of the governmental activities of the primary government
as follows:
Governmental Activities:
General government1,600,626$
Public Safety1,241,550
Public works996,815
Parks and recreation643,801
Capital assets held by the City's
internal service funds are charged to
various functions based on their usage
of the assets1,750,353
Total Governmental Activities6,233,145$
Depreciation expense of $2,440,333 was charged to the Utility fund.
Construction contract commitments outstanding as of September 30, 2019, are as follows:
Remaining
Total in ProgressCommitment
FundProjects
General CIP FundStreet and Drainage Improvements$ 811,494$ 631,945
General CIP FundPark Improvements1,269,1746,676
General CIP FundBuilding Improvements72,74465,733
Utility FundMeter Replacement Program1,192,903-
Utility FundWater System Improvements1,922,0332,288,969
Airport FundRunway Improvements225,675-
Technology FundNetwork Improvements60,914-
Total
$ 5,554,937$ 2,993,323
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53
CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 6 – Long-Term Debt and Other Long-Term Obligations
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.
In February 2002, voters authorized $16,300,000 of General Obligation Bonds. The City has $2,000,000 of
authorized but unissued bonds as of September 30, 2019.
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, 2019:
Governmental
2010 Certificates of Obligation
due in annual payments through March 15, 2026; interest at 3.00% to 4.00%
$6,265,000 issued for street, drainage, and park improvements.3,350,000$
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.325,000
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.7,840,000
2014 General obligation Refunding Bonds
due in annual payments through March15, 2025; interest at 2.00% to 3.50%
$9,300,000 issued to refunding previous debt. 5,795,000
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. 6,345,000
2016 General Obligation Refunding Bonds
due in annual payments through March 15, 2029; interest at 2.00% to 4.00%
$3,165,000 issued to refund previous debt. 2,465,000
2017 Certificates of Obligation
due in annual payments through March 15, 2037; interest at 0.14% to 1.82%
$10,635,000 issued for construction of wastewater system.9,710,000
Total Bonds Payable
$ 35,830,000
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 6 – Long-Term Debt and Other Long-Term Obligations (continued)
Changes in the City’s long-term liabilities for the year ended September 30, 2019 are as follows:
BalanceBalanceAmounts
September 30September 30Due Within
2018
AdditionsReductions2019One Year
Governmental Activities:
Bonds payable:
General Obligation Bonds$ 18,895,000$ -$(2,470,000)$ 16,425,000$2,465,000
Certificates of Obligation20,670,000 (1,265,000)- 19,405,0001,295,000
Premium on bond issuance1,335,219 - (266,841)1,068,378 -
Total bonds payable 40,900,219 - (4,001,841) 36,898,378 3,760,000
Due to developers5,722,791 (3,098,130)2,624,661 -
Compensated absences3,246,904117,839 (150,226)3,214,517 160,726
Total Governmental Activities
$ 49,869,914$ 117,839$(7,250,197)$ 42,737,556$3,920,726
Business-type Activities:
Compensated absences$ 143,999$ 460$ (15,409)$ 129,050$ 6,453
Total Business-type Activities
$ 143,999$ 460$ (15,409)$ 129,050$ 6,453
Long-term liabilities applicable to the City’s governmental activities are not due and payable in the current
period and, accordingly, are not reported as fund liabilities in the governmental funds. Compensated
absences generally are paid by the General Fund for the governmental activities.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 6 – Long-Term Debt and Other Long-Term Obligations (continued)
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.
Governmental Activities
FiscalGeneral Obligation BondsCertificate of Obligation
Year PrincipalInterestPrincipalInterest
20202,465,000$ 558,931$ 1,295,000$ $439,890
20212,270,000485,3001,330,000 411,818
20222,335,000412,6501,355,000 381,896
20232,395,000343,5751,390,000 350,984
20242,460,000272,6251,420,000 318,875
2025 - 20294,500,000481,4007,320,0001,055,317
2030 - 2034- -3,495,000 375,262
2035 - 2038- -1,800,000 8 6,083
$16,425,000$ 2,554,481$19,405,000$3,420,125
Prior Year Refunding of Debt
The City defeased certain outstanding revenue bonds by placing proceeds of new bonds in irrevocable trust
to provide for all future debt service payments. Accordingly, the respective trust accounts and liability for
the defeased bond are not included in the City’s financial statements. As of September 30, 2019, the City
does not have bonds considered defeased and outstanding.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 7 – Interfund Receivables, Payables and Transfers
The composition of interfund receivables at September 30, 2019 is an amount of $1,091,579 due to the
general fund from the 2015 certificate of obligation bond fund and aggregate remaining capital projects
funds.
The composition of interfund transfers for the year are as follows:
Transfers To
Debt Other Internal
ServiceGovernmentalService
Transfers FromGeneralTotals
General Fund$ -$ -$ 1,956,087$2,369,445$4,325,532
Other Governmental57,5001,033,3621,835,700 - 2 ,926,562
Utility - 237,762 46,065 74,201 358,028
Airport - - - 806 806
Internal Service - - - 20,585 20,585
Totals$57,500$ 1 ,271,124$ 3,837,852$2,465,037$7,631,513
The purpose of interfund transfers during the current year consisted of the following:
Purpose
Transfers FromTransfers To
La Porte Area Water AuthorityGeneral FundOperator's Agreement
Hotel/Motel Fund
General FundTransfer for Golf Course Advertising Expenditures and
City Bordering Bay for Golf Course Expenditures
La Porte Development Debt Service FundAnnual Transfer for Debt Service
Corporation (4B)
General FundInsurance FundTransfer for Liability Insurance and Worker's
Compensation + $2 million for Health Insurance
Utility FundInsurance FundTransfer for Liability Insurance and Worker's
Compensation
Airport FundInsurance FundTransfer for Liability Insurance and Worker's
Compensation
La Porte Area Water AuthorityInsurance FundTransfer for Liability Insurance and Worker's
Compensation
Vehicle Maintenance FundInsurance FundTransfer for Liability Insurance and Worker's
Compensation
General FundGeneral CIP FundTransfer to fund Capital Projects
La Porte Development General CIP FundTransfer for Capital Projects
Utility FundGeneral CIP FundTransfer for Capital Projects
Utility FundDebt Service FundAnnual Transfer for Debt Service
Utility FundSanitary Sewer Annual Transfer for Sewer Rehabilitation/Maintenance
Rehabilitation FundProjects
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 8 – Defined-Benefit Pension Plans
Texas Municipal Retirement System
Plan Description and Provisions
The City participates as one of 883 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 agent 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 dependent on the State of Texas. TMRS’s defined benefit
pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a
publicly available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
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.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, 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 actuarially equivalent payments options. Members may
also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to
12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest.
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:
Employee deposit rate: 7%
Matching ratio (City to employee): 2 to 1
Years required for vesting: 10
Service retirement eligibility: 20 years at any age, 10 years at age 60 and above
Updated Service Credit: 100% Repeating Transfers
Annuity Increase to retirees: 70% of CPI Repeating
Supplemental death benefit – active
employees and retirees Yes
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 8 – Defined-Benefit Pension Plans (continued)
Texas Municipal Retirement System (continued)
Benefits Provided (continued)
At the December 31, 2018 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 218
Inactive employees entitled to but not yet receiving benefits 184
Active employees 370
Total 772
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the
City matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the City.
Under the State law governing TMRS, the contribution rate for each City is determined annually by the
consulting 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% of their annual gross earnings during the fiscal year. The
contribution rates for the City were 15.53% and 16.11% in calendar years 2019 and 2018, respectively. The City
opted to contribute 16.11% during the year ended September 30, 2019 in order to reduce the liability.
Net Pension Liability
The City’s net pension liability was measured as of December 31, 2018, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The total pension liability in the December 31, 2018 actuarial valuation was determined using the following
actuarial assumptions:
Inflation: 2.5%
Overall payroll growth: 3.5% to 10.50% including inflation
Investment Rate of Return: 6.75%
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 Table with Blue Collar
Adjustment with male rates multiplied by 109% and female rates multiplied by 103% and projected on a fully
generational basis with scale BB to account for future mortality improvements. For disabled annuitants, the
gender-distinct RP2000 Disabled Retiree Mortality Table is used, with slight adjustments.
DRAFT 02.25.2020
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 8 – Defined-Benefit Pension Plans (continued)
Texas Municipal Retirement System (continued)
Actuarial Assumptions (continued)
Actuarial assumptions used in the December 31, 2018 valuation were developed primarily from the actuarial
investigation of the experience of TMRS over the four year period from December 31, 2010 to December 31,
2014. They were adopted in 2015 and first used in the December 31, 2015 actuarial valuation. The
postretirement mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on
the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In
conjunction with these changes first used in the December 31, 2013 valuation, the System adopted the Entry
Age Normal actuarial cost method and a one-time change to the amortization policy. Assumptions are
reviewed annually. No additional changes were made for the 2018 valuation.
The long-term expected rate of return on pension plan investments is 6.75%. The pension plan’s policy in
regard to the 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 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 pension
plan investment expense 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.
Discount Rate
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 made at the rates
specified in statute. Based on that assumption, the pension plan’s fiduciary net 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 periods of projected benefit
payments to determine the total pension liability.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 8 – Defined-Benefit Pension Plans (continued)
Texas Municipal Retirement System (continued)
Changes in the Net Pension Liability
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
LiabilityNet PositionLiability
(a)(b)(a) - (b)
Balance at 12/31/2017157,840,283$ 146,301,408$ 11,538,875$
Changes for the year:
Service cost3,668,483 - 3,668,483
Interest10,570,181 - 10,570,181
Difference between expected
and actual experience(1,410,118) - (1,410,118)
Changes in assumptions- - -
Contributions - employer- 3,625,504 (3,625,504)
Contributions - employee- 1,575,422 (1,575,422)
Net investment income- (4,381,890) 4,381,890
Benefit payments, including refunds,
of employee contributions(6,158,492) (6,158,492) -
Administrative expense- (84,698) 84,698
Other charges- (4,424) 4,424
Net changes6,670,054 (5,428,578) 12,098,632
Balance at 12/31/2018164,510,337$ 140,872,830$ 23,637,507$
Sensitivity of the Net Pension Liability
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:
Current Single
Rate
1% Decrease to Assumption 1% Increase to
5.75%6.75%7.75%
City's net pension liability47,015,688$ 23,637,507$ 4,501,359$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in a separately-issued
TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 8 – Defined-Benefit Pension Plans (continued)
Texas Municipal Retirement System (continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions
For the year ended September 30, 2019, the City recognized pension expense of $5,109,269.
At September 30, 2019, the City reported deferred outflows and inflows of resources related to pensions
from the following sources:
Deferred
Outflows of Deferred Inflows
Resourcesof Resources
Differences between actuarial assumptions
and actual experience-$ 1,570,927$
Changes in actuarial assumptions used -50,161
Differences between projected
and actual investment earnings 7,555,840-
Contributions subsequent to
the measurement date 2,887,827-
Total$ 10,443,667$ 1,621,088
Deferred outflows of resources resulting from contributions subsequent to the measurement date of
$2,887,827 will be recognized as a reduction of the net pension liability for the fiscal year ending
September 30, 2019. Other amounts reported as deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Net deferred outflows
Fiscal Year(inflows) of resources
20192,107,493$
2020546,486
2021594,308
20222,686,465
Total5,934,752$
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.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 8 – Defined-Benefit Pension Plans (continued)
Texas Emergency Services Retirement System (continued)
Plan Description (continued)
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 Fighters’ Pension
Commissioner. While the agency is new, the System 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.
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’s average monthly contribution over the member’s years of
qualified service. For years of service in excess of 15 years, this monthly benefit is increased at the rate of
6.2% compounded annually. 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 include a lump
sum amount or continuing monthly payments to a member’s surviving spouse 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 to
the plan for each month an eligible emergency service personnel provides qualified services. The minimum
contribution is $36 per member. Contributions to the pension plan for the year ended September 30, 2019, were
$43,195.
Net Pension Liability
The City’s net pension liability was measured as of August 31, 2018, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of August 31, 2018.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 8 – Defined-Benefit Pension Plans (continued)
Texas Emergency Services Retirement System (continued)
Actuarial Assumptions
The total pension liability in the August 31, 2018 actuarial valuation was determined using the following
actuarial assumptions:
Inflation: 3.00%
Salary Increases: Not applicable
Investment Rate of Return: 7.75%, net of pension plan investment expense, including inflation
Mortality rates were based on the RP-2000 Combined Healthy Lives Mortality Tables for males and for
females projected to 2024 by scale AA.
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 (currently 4.97%) and by adding expected inflation (3.00%). In addition, the final 7.75%
assumption was selected by “rounding down” and thereby reflects a reduction of 0.22% 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
Expected Real Rate
of Return
(Arithmetic)
Asset ClassTarget Allocation
Equities
Large cap domestic30.0%35.06%
Small cap domestic15.0%16.55%
Developed international15.0%14.84%
Emerging markets5.0%4.81%
Master limited partnership5.0%4.10%
Real Estate5.0%2.21%
Multi-asset5.0%0.00%
Fixed income
Domestic20.0%22.19%
International0.0%0.00%
Cash0.0%0.24%
Total100.0%100.0%
Weighted average3.11%
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 8 – Defined-Benefit Pension Plans (continued)
Texas Emergency Services Retirement System (continued)
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, 2018 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. Because of the 30-year amortization period with
the conservative amortization method, the pension plan’s fiduciary net position is 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.
Sensitivity of the Net Pension Liability
The following presents the net pension liability of the City, calculated using the discount rate of 7.75%, as
well as what the City’s net pension liability 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:
Current Single
Rate
1% Decrease to Assumption 1% Increase to
6.75%7.75%8.75%
City's net pension liability$ 271,064$ 136,398$ 45,569
Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At August 31, 2018, the City reported a liability of $136,398 for its proportionate share of the TESRS’s
net pension liability. The net pension liability was measured as of August 31, 2018 and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of August
31, 2018. The City’s proportion of the net pension liability was based on the City’s contributions to the
pension plan relative to the contributions of all employers to the plan for the period September 1, 2017
through August 31, 2018.
At August 31, 2018 the City’s proportion of the collective net pension liability was 0.630% which was a
decrease from its proportion measured as of August 31, 2017 of 0.653%.
For the year ended September 30, 2019, the City recognized TESRS pension expense of $43,239.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 8 – Defined-Benefit Pension Plans (continued)
Texas Emergency Services Retirement System (continued)
Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions (continued)
At September 30, 2019, the City reported its proportionate share of the TESRS’ deferred outflows and
inflows of resources related to pensions from the following sources:
Deferred
Outflows of Deferred Inflows
Resourcesof Resources
Differences between actuarial assumptions
and actual experience37$ 393$
Changes in actuarial assumptions used510 -
Differences between projected
and actual investment earnings - 7,538
Contributions subsequent to
the measurement date43,195 -
Total43,742$ 7,931$
Deferred outflows of resources resulting from contributions subsequent to the measurement date of
$43,195 will be recognized as a reduction of the net pension liability for the fiscal year ending September
30, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will
be recognized in pension expense as follows:
Fiscal Net deferred outflows
Year(inflows) of resources
20198,789$
2020(4,890)
2021(7,196)
2022(4,087)
Total(7,384)$
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 – Other Post-Employment Benefits
TMRS Supplemental Death Benefits Fund
Benefit Plan Description
The City also participates in the cost sharing multiple-employer defined benefit group-term life insurance
plan operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death
Benefits Fund (SDBF). The City elected, by ordinance, to provide group-term life insurance coverage to
both current and retired employees. The City may terminate coverage under and discontinue participation
in the SDBF by adopting an ordinance before November 1 of any year to be effective the following
January 1.
The death benefit for active employees provides a lump-sum payment approximately equal to the
employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period
preceding the month of death); retired employees are insured for $7,500; this coverage is another post-
employment benefit (OPEB). As the SDBF covers both active and retiree participants, with no segregation
of assets, the SDBF is considered to be an unfunded OPEB plan (i.e. no assets are accumulated).
Membership in the plan as of the measurement date of December 31, 2018 was as follows:
Inactive employees currently receiving benefits 160
Inactive employees entitled to but not yet receiving benefits 23
Active employees 370
Total553
Contributions
Contributions are made monthly based on the covered payroll of employee members of the participating
member city. The contractually required contribution rate is determined annually for each city (currently
0.17% of covered payroll). The rate is based on the mortality and service experience of all employees
covered by the SDBF and the demographics specific to the workforce of the city. There is a one-year delay
between the actuarial valuation that serves as the basis for the employer contribution rate and the calendar
year when the rate goes into effect. The funding policy of this plan is to assure that adequate resources are
available to meet all death benefit payments for the upcoming year; the intent is not to prefund retiree term
life insurance during employees’ entire careers. As such, contributions are utilized to fund active member
deaths on a pay-as-you-go basis; any excess contributions and investment income over payments then
become net position available for benefits.
Discount Rate
The TMRS SDBF program is treated as unfunded OPEB plan because the SDBF trust covers both active
employees and retirees and the assets are not segregated for these groups. Under GASB Statement No. 75,
the discount rate for an unfunded OPEB plan should be based on 20-year tax-exempt AA or higher
Municipal Bonds. Therefore, a discount rate of 3.71% based on the 20 Year Bond GO Index published by
bondbuyer.com is used as of the measurement date of December 31, 2018.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 – Other Post-Employment Benefits (continued)
TMRS Supplemental Death Benefits Fund (continued)
Actuarial Assumptions
The City’s total OPEB liability was measured at December 31, 2018 and was determined by an actuarial
valuation as of that date using the following actuarial assumptions:
Valuation Date: December 31, 2018
Methods and Assumptions:
Inflation: 2.50%
Salary Increases: 3.50% to 10.50%, including inflation
Discount rate: 3.71%. The discount rate was based on the Fidelity Index’s “20-
Year Municipal GO AA Index” rate as of December 31, 2018.
Retirees’ share of benefit related costs: $0
Administrative expenses: All administrative expenses are paid through the Pension Trust
and accounted for under reporting requirements under GASB
Statement No. 68.
Mortality rates – service retirees: RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and female rates
multiplied by 103% and projected on a fully generational basis
with scale BB.
Mortality rates – disabled retirees: RP2000 Combined Mortality Table with Blue Collar Adjustment
with male rates multiplied by 109% and female rates multiplied
by 103% with a 3 year set-forward for both males and females.
The rates are projected on a fully generational basis with scale BB
to account for future mortality improvements subject to the 3%
floor.
Other Information
The actuarial assumptions used in the December 31, 2018 valuation were based on the results of an actuarial
experience study for the period December 31, 2010 to December 31, 2014.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 – Other Post-Employment Benefits (continued)
TMRS Supplemental Death Benefits Fund (continued)
Changes in the Total OPEB Liability
Service cost$ 31,508
Interest35,270
Changes of benefit terms-
Difference between expected
and actual experience of the total OPEB liability24,065
Changes of assumptions (78,470)
Benefit payments(6,752)
Net change in total OPEB liability 5,621
Total OPEB liability - beginning1,053,176
Total OPEB liability - ending$1,058,797
Covered payroll$22,506,030
Total OPEB liability as a percentage of covered payroll4.70%
Sensitivity Analysis
The following presents the total OPEB liability of the employer, calculated using the discount rate of 3.71%,
as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1
percentage point lower (2.71%) or 1 percentage point higher (4.71%) than the current rate. Note that the
healthcare cost trend rate does not affect the total OPEB liability, so sensitivity to the healthcare cost trend
rate is not shown.
Current Discount
1% Decrease to Rate Assumption1% Increase to
2.71%3.71%4.71%
$ 1,058,7971,271,659$ 895,196$
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB Activity
For the year ended September 30, 2019, the City recognized OPEB expense of $72,841.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 – Other Post-Employment Benefits (continued)
TMRS Supplemental Death Benefits Fund (continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB Activity (continued)
As of September 30, 2019, the City reported deferred outflows of resources related to OPEB from the
following sources:
Deferred Deferred
Outflows of Inflows of
ResourcesResources
Differences between expected
and actual experience20,126$ $ -
Changes assumptions - 4,112
Contributions subsequent to
the measurement date 5,378 -
Total$ 25,504$ 4,112
The $5,378 reported as deferred outflows of resources related to OPEB resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the
year ending September 30, 2019.
Amounts currently reported as deferred outflows of resources related to OPEB, excluding contributions
subsequent to the measurement date, will be recognized in OPEB expense as follows:
Net deferred
Fiscal outflows (inflows)
Yearof resources
20196,063$
20206,063
20216,063
20226,063
2023(7,257)
Thereafter(981)
Total16,014$
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 – Other Post-Employment Benefits (continued)
Retiree Health Care Plan (RHCP)
Plan Description
The City’s defined benefit OPEB plan, City of La Porte Retiree Health Care Plan (RHCP), provides OPEB
through an implicit healthcare premium for retirees for all permanent full-time employees of the City.
RHCP is a single-employer defined benefit OPEB plan administered by the City. At this time, no assets are
accumulated in a trust to fund the future requirements of the RHCP.
Benefits provided
RHCP provides access to post retirement employees by offering a “blended premium” structure, that is, the
overall health care premiums for active employees and non-Medicare retirees, are stated in terms of a single
“blended premium”. The difference between the underlying retiree claims and the blended overall health
care premium is referred to as an “implicit” subsidy. Because the underlying claims costs for a non-
Medicare retiree are on average higher than the blended premium, there is a positive implicit subsidy for
the non-Medicare retirees.
Employees covered by benefit terms. At December 31, 2018, the following employees were covered by the
benefit terms:
Retirees and beneficiaries 92
Inactive, nonretired members -
Active members 369
Total 461
Total OPEB Liability
The City’s total OPEB liability of $49,572,587 was measured as of December 31, 2018, and was
determined by an actuarial valuation as of December 31, 2018.
Actuarial assumptions and methods
The total OPEB liability in the December 31, 2018 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise
specified:
Valuation Date: December 31, 2018
Methods and Assumptions:
Actuarial Cost Method: Individual Entry-Age
Discount Rate: 3.71%
Inflation: 2.50%
Salary Increases: 3.50% to 10.50%, including inflation
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 – Other Post-Employment Benefits (continued)
Retiree Health Care Plan (RHCP) (continued)
Actuarial assumptions and methods (continued)
Demographic Assumptions: Based on the experience study covering the four year period
ending December 31, 2014 as conducted for the Texas Municipal
Retirement System (TMRS)
Mortality: For healthy retirees, the gender-distinct RP2000 Combined
Healthy Mortality Tables with Blue Collar Adjustment are used
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.
Health Care Trend Rates: For Pre-65, initial rate of 7.00% declining to an ultimate rate of
4.75% after 12 years; Ultimate trend rate includes a 0.50%
adjustment for the excise tax. For Post-65, initial rate of 6.00%
declining to an ultimate rate of 4.25% after 14 years
Participation Rates: It was assumed that the plan participation would vary based on the
amount of the subsidy provided. For eligible retirees with over 30
years of service, 95% were assumed to participate in the plan at
retirement. For employees with less than 30 years of service, the
assumed participation rate is equal to the percentage of premium
the City subsidizes. For example, retirees eligible for an 85%
subsidy were assumed to elect coverage 85% of the time, while
only 40% of retirees eligible for a 40% subsidy were assumed to
elect coverage.
Other Information:
Note: The discount rate changed from 3.31% as of December 31, 2017
to 3.71% as of December 31, 2018.
Discount Rate
Because the RHCP is unfunded or pay-as-you go, the discount rate is based on 20-year tax-exempt AA
or higher Municipal Bonds or 3.71% as of the measurement date of December 31, 2018 based on the 20
Year Bond GO Index published by bondbuyer.com.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 – Other Post-Employment Benefits (continued)
Retiree Health Care Plan (RHCP) (continued)
Changes in the Total OPEB Liability
Total OPEB Liability
Service cost$ 1,671,651
Interest1,583,194
Changes of benefit terms-
Difference between expected
and actual experience of the total OPEB liability(31,749)
Changes of assumptions (147,052)
Benefit payments(996,520)
Net change in total OPEB liability 2,079,524
Total OPEB liability - beginning47,493,063
Total OPEB liability - ending49,572,587$
Covered payroll22,506,678$
Total OPEB liability as a percentage of covered payroll220.26%
Sensitivity of the total OPEB liability to changes in the discount rate
The following presents the plan’s total OPEB liability, calculated using a discount rate of 3.71%, as well
as what the plan’s total OPEB liability would be if it were calculated using a discount rate that is one percent
lower or one percent higher:
Current Discount
1% Decrease to Rate Assumption1% Increase to
2.71%3.71%4.71%
$ 49,572,58758,545,697$ 42,464,092$
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates
The following presents the plan’s total OPEB liability, calculated using the assumed trend rates as well as
what the plan’s total OPEB liability would be if it were calculated using a trend rate that is one percent
lower or one percent higher:
Current
Healthcare Cost
Trend Rate
1% Decrease to Assumption1% Increase to
2.71%3.71%4.71%
$ 49,572,58741,764,637$ 59,709,995$
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 – Other Post-Employment Benefits (continued)
Retiree Health Care Plan (RHCP) (continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
For the year ended September 30, 2019, the City recognized OPEB expense of $3,663,689.
At September 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
ResourcesResources
Differences between expected
and actual experience-$ $ 41,612
Changes assumptions 2,624,581 127,116
Contributions subsequent to
the measurement date 186,244 -
Total$2,810,825$ 168,728
The $186,244 reported as deferred outflows of resources related to OPEB resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year
ending September 30, 2020.
Amounts currently reported as deferred outflows of resources related to OPEB, excluding contributions
subsequent to the measurement date, will be recognized in OPEB expense as follows:
Net deferred
Fiscal outflows (inflows)
Yearof resources
2019408,845$
2020408,845
2021408,845
2022408,845
2023408,845
Thereafter 411,628
Total2,455,853$
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 10 – Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City’s risk management program encompasses various
means of protecting the City against loss by obtaining property, casualty and liability coverage from
participation in a risk pool. The participation of the City in the risk pool is limited to the payment of
premiums. 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.
The insurance internal service fund is funded by charges to the City’s other funds and component units, and
is based primarily upon the contributing funds’ full-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 $1,000,000 per coverage period.
Activities during the year for the insurance internal service fund included:
Revenues
Charges to divisions5,290,869$
Interfund transfers2,465,037
Charges to employees659,420
Charges to retirees130,045
Cobra charges16,442
Other 2,030
Interest revenue27,418
Total revenues$ 8,591,261
Expenses
Other expenses$ 733,251
Claims administration179,616
Claims incurred6,893,077
Re-insurance premiums447,851
Insurance premiums490,689
Total expenses$ 8,744,484
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.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 10 – Risk Management (continued)
Changes in the balance of health insurance claims liability for three fiscal years are as follows:
Beginning of Payments forEnd of Year
Year AccrualClaimsClaimsAccrual
9/30/2017$ 387,850$ 5 ,480,480$ 5,397,668$ 470,662
9/30/2018 470,662 6,784,705 6,708,518 546,849
9/30/2019 546,849 6,893,077 6,841,448598,478
Note 11 - Contingencies
The City is a defendant in lawsuits. Although the outcome of the lawsuits is not presently determinable, it
is the opinion of the City’s management the 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. Accordingly, the City’s 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.
Note 12 – 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-appropriated and become part of the subsequent year’s 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$ 134,391
Non-major Governmental 24,259
Utility 3,056
Internal service fund 10,230
Total$ 171,936
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 13 – Southeast Water Purification Plant
The La Porte Area Water Authority (“Authority”) and the City of Houston, Texas have entered into a Cost
Sharing Water Project Contract (the “Contract”) wherein the Authority, the Cities of La Porte, Morgan’s
Point, and Shoreacres agree to jointly finance the construction and operation of the 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 of La Porte,
Morgan’s Point, and Shoreacres have agreed to demand and pumping allocations of the Authority’s
purchase of water from the Southeast Plant.
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, which have been retired.
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.
Note 14 - 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., Retreat at Bay Forest, LP, Beazer Homes, LP and Senior Associates. 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.
Port Crossing Land, LP’s reimbursable expenditures totaled $12,096,488 including interest at May 27,
2009. In the current fiscal year, the Developer was reimbursed $1,749,284. To date, reimbursements in the
amount of $13,972,359 have been made to Port Crossing/Liberty for incremental tax value gained. Interest
was calculated, and payments were applied to interest first, then principal. No additional interest will be
due under the agreement.
Retreat at Bay Forest, LP’s reimbursable expenditures totaled $224,760, including interest of $36,885 for
the pilot channel and excavation costs as of November 20, 2013. No additional interest will be due under
the agreement. During the current fiscal year, a reimbursement of $27,745 was applied to principal.
Beazer Homes Texas LP’s reimbursable expenditures for Bayside Crossing totaled $1,449,517 including
interest at August 24, 2016. In the current fiscal year, the Developer was reimbursed $75,108 for interest
and $38,445 applied to principal.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 14 - Due to Developers (continued)
Beazer Homes Texas LP’s reimbursable expenditures for Bayside Crossing - Supplemental totaled
$177,498, including interest at August 23, 2017. In the current fiscal year, an additional amount was
calculated for interest.
Senior Associate’s reimbursable expenditures and land for Bayside Crossing totaled $466,032 including
interest at August 23, 2017. In the current fiscal year, an additional amount $9,372 was calculated 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
Note 15 - Industrial Payments
In 1958, the City created an Industrial Zone adjacent to the City, which presently encompasses
approximately 5,500 acres of land north of Highway 225 and bordering the Houston Ship Channel. The
City annexed sufficient land to completely encircle this Industrial Zone, protecting it from annexation by
any other municipality. The City entered into contracts with all of the Industries located in the Zone whereby
the City annexed a portion of the total value of each industry with the remainder constituting the protected
Industrial District. In addition to the Industrial Zone north of Highway 225, which is referred to as the
"Battleground Industrial District," the City contains an Industrial Zone on its south side referred to as the
"Bayport Industrial District." The Bayport District, created in 1970, covers 2,500 acres.
The City and the Industries, many of which have come to the Industrial Zones since the original contracts,
are presently under contracts, which extend to December 31, 2019. Under the terms of the current contracts,
the industries make payments to the City each year in lieu of taxes. These annual in lieu payments are in an
amount which, when added to the full City taxes on the annexed portion, equal 62% of what the City's taxes
on the industry would be if 100% of the industry was in the City. After the first six years of the contracts,
the percentage increases to 63%. The contracts contain a new construction clause that allows new plant
facilities to make in lieu payments on 25% of the value of new additions between now and 2013, after 2014,
the percentage drops to 20%. Currently, 140 companies participate in industrial district contracts. These
contracts have served as a valuable economic tool for more than 50 years.
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CITY OF LA PORTE, TEXAS Exhibit A-10
NOTES TO FINANCIAL STATEMENTS (continued)
Note 16 – Fund Balance
Assigned fund balance of the General Fund at year-end consisted of the following:
Airpak supplies$ 388
Uniforms for new hires580
Patrol bicycles3,150
Voice interpretation third party404
Bi-annual pressure washing450
City-wide recruitment software1,636
Municipal court canopy replacement24,455
Municipal court canopy repair6,775
Financial software47,846
City Hall generator repairs9,000
Hotel tax audit services1,004
Actuarial services for OPEB10,091
SUTA fees 2019 Sales tax collection352
Update truck traffic study7,000
Parks and recreation master plan21,260
Total General Fund Assigned Fund Balance$ 134,391
Note 17 – Subsequent Events
Debt Issuance
In February 2020 in the amount of $2,705,000 in Taxable General Obligation Refunding Bonds. The new
debt was issued with interest rates ranging from 3%-5% with maturities from 2020 to 2026. Interest on the
bonds accrue from the closing date and are payable on each March 15 and September 15 thereafter, with
the initial interest payment on March 15, 2020. All of the proceeds will be used to refund $2,925,000 of the
Series 2010 Certificates of Obligation.
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REQUIRED SUPPLEMENTARY INFORMATION
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Exhibit B-1
CITY OF LA PORTE
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL (BUDGETARY BASIS)
For the Year Ended September 30, 2019
Budgeted Amounts
Variance with
Final Budget
Actual
Positive
OriginalFinalAmounts
(Negative)
Revenues
Taxes:
Property taxes and penalties$ 17,676,500$ 17,676,500$ 19,019,611$ 1,343,111
Other taxes90,00090,00088,624(1,376)
Licenses and permits646,150646,1501,344,447698,297
Fines and forfeitures1,559,5501,559,5502,277,993718,443
Sales and use taxes5,000,0005,000,0006,499,2541,499,254
Industrial payments13,750,00013,750,00014,899,6241,149,624
Franchise taxes2,919,1312,919,1313,035,844116,713
Intergovernmental revenues - -893,217893,217
Investment Earnings400,000400,0001,436,2381,036,238
Charges for services5,891,8345,891,8345,784,392(107,442)
Miscellaneous169,114169,114316,015146,901
Total revenues
48,102,279 48,102,279 55,595,259 7,492,980
Expenditures
Current:
General government11,481,79211,745,68110,244,2081,501,473
Public safety18,991,20919,005,94818,579,342426,606
Public works3,524,5293,532,3543,265,194267,160
Health and sanitation2,869,2462,869,2462,977,561(108,315)
Culture and recreation6,100,2656,165,1435,929,639235,504
Capital outlay
- 37,230 28,099.00 9,131.00
Total expenditures 42,967,041 43,355,602 41,024,043 2,331,559
Excess (Deficiency) of Revenues
Over (Under) Expenditures
5,135,238 4,746,677 14,571,216 9,824,539
Other Financing Sources (Uses)
Transfers in57,50057,50057,500 -
Transfers out (4,325,532) (4,325,532) (4,325,532) -
Total Other Financing Sources (Uses)
(4,268,032) (4,268,032) (4,268,032) -
Net Change in Fund Balance
867,206 478,645 10,303,184 9,824,539
Fund Balances, Beginning
47,307,073 47,307,073 47,307,073 -
Fund Balances, Ending
$ 48,174,279$ 47,785,718$ 57,610,257$ 9,824,539
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Exhibit B-2
CITY OF LA PORTE
TAX INCREMENT REINVESTMENT ZONE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE BUDGET AND ACTUAL
For the Year ended September 30, 2019
Budgeted Amounts
Variance with
Final Budget
Actual Positive
OriginalFinalAmounts(Negative)
Revenues:
Property taxes3,964,760$ 3,964,760$ 4,128,250$ 163,490$
Investment earnings850 850 1,377 527
Total Revenues
3,965,6103,965,610 4,129,627 164,017
Expenditures
Current:
General government1,382,492 1,382,492 383,112 999,380
Debt Service:
Principal 2,106,188 2,106,1883,009,168 (902,980)
Interest and other charges - 181,995- (181,995)
Total Expenditures
3,488,680 3,488,6803,574,275 (85,595)
Net change in fund balance 476,930 476,930 555,352 78,422
Fund balances - beginning of year 1,292,746 1,292,7461,292,746 -
Fund balances - end of year$1,769,676$1,769,676$ 1,848,098$ 78,422
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CITY OF LA PORTE Exhibit B-3
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
1. Budgetary Controls and Procedures
The objective of the City’s budgetary controls is to ensure 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.
In fiscal year 2019, Health and Sanitation exceeded appropriated amount by $108 thousand.
Appropriations lapse at the end of the year, excluding capital project budgets.
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Exhibit B-4
CITY OF LA PORTE, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
TEXAS MUNICIPAL RETIREMENT SYSTEM
Last Five Measurement Years
20182017201620152014
Total pension liability
Service Cost
$ 3,714,5393,668,483$ 3,600,954$ 3,401,691$ 3,045,776$
Interest (on the Total Pension Liability)
10,112,10110,570,181 9,653,940 9,564,637 9,108,178
Difference between expected and
actual experience(1,410,118) (658,901) (40,363) (500,190) (761,946)
Changes of assumptions
-- - (325,022) -
Benefit payments, including refunds
of employee contributions(6,158,492) (6,558,193) (6,409,301) (5,304,879) (4,793,355)
Net change in total pension liability
6,609,5466,670,054 6,805,230 6,836,237 6,598,653
Total pension liability – beginning
151,230,737157,840,283 144,425,507 137,589,270 130,990,617
Total pension liability – ending164,510,337$ 157,840,283$ 151,230,737$ 144,425,507$ 137,589,270$
Plan fiduciary net position
Contributions – employer
$ 3,602,1603,625,504$ 3,415,127$ 3,461,463$ 3,534,991$
Contributions – employee
1,578,7351,575,422 1,528,511 1,506,158 1,460,768
Net investment income
17,987,506(4,381,890) 8,314,792 181,954 6,665,254
Benefit payments, including refunds
of employee contributions(6,158,492) (6,558,193) (6,409,301) (5,304,879) (4,793,355)
Administrative Expense
(93,223)(84,698) (93,910) (110,827) (69,591)
Other
(4,725)(4,424) (5,060) (5,474) (5,722)
Net change in plan fiduciary net
(5,428,578)16,512,2606,750,159(271,605) 6,792,345
Plan fiduciary net position – beginning
146,301,408129,789,148123,038,989 123,310,594116,518,249
Plan fiduciary net position – ending$ 140,872,830$146,301,408$129,789,148$123,038,989$ 123,310,594
Net pension liability
$23,637,507$11,538,875$ 21,441,589$21,386,518$ 14,278,676
Plan fiduciary net position as a
percentage of the total pension
liability
85.63%92.69%85.82%85.19%89.62%
Covered payroll
$22,506,030$22,553,362$ 21,823,962$21,421,227$ 20,708,639
Net pension liability as a
percentage of covered employee
payroll
105.03%51.16%98.25%99.84%68.95%
GASB 68 requires 10 fiscal years of data to be provided in this schedule. The City will continue to build this schedule over
the next 10-year period as the information becomes available.
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Exhibit B-5
CITY OF LA PORTE, TEXAS
SCHEDULE OF CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
Last Six Fiscal Years
20192018201720162015
ActuariallyDetermined
Contribution$ 3,759,780$ 3 ,616,211$ 3 ,566,725$ 3 ,551,472$ 3,489,185
actuarially determined
contribution (3,759,780) (3,616,211) (3,566,725) (3,551,472) (3,489,185)
Contribution deficiency (excess)$ -$ - $ - $ - $ -
Covered payroll$23,338,178$ 2 2,496,785$ 2 2,446,058$ 2 2,512,615$ 21,323,383
Contributions as a percentage of
covered payroll16.11%16.07%15.89%15.78%16.36%
2014
Actuarially Determined
Contribution$ 3,496,424
Contributionsinrelationtothe
actuarially determined
contribution(3,496,424)
Contribution deficiency (excess)-$
Covered payroll20,543,616$
Contributions as a percentage of
covered payroll17.02%
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
Actuarially determined contribution rates are calculated as of December 31 and
Valuation Date:
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 Period23 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%
Experience-based table of rates that are specific to the City's plan of benefits. Last
Retirement Age
updated for the 2015 valuation pursuant to an experience study of the period 2010 -
2014
MortalityRP2000 Combined Mortality Table with Blue Collar Adjustment with male rates
multiplied by 109% and female rates multiplied by 103% and projected on a fully
generational basis with scale BB.
Other Information:There were no benefit changes during the year.
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Exhibit B-6
CITY OF LA PORTE, TEXAS
SCHEDULE OF CITY'S PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY
TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM
Last Five Measurement Years
20182017201620152014
City's proportion of the net pension liability
0.630%0.653%0.780%0.982%0.721%
City's proportionate share of the net pensions liability
$ 156,731136,398$ $ 2 27,199$ 131,018262,121$
City's covered payroll
29,175 27,694 15,498 18,617 18,420
City's proportionate share of the net pension liability as
percentage of its covered payroll
468%566%1466%1408%711%
Plan fiduciary net position as a percentage of the total
pension liability
84.3%81.4%76.3%76.9%83.5%
Exhibit B-7
CITY OF LA PORTE, TEXAS
SCHEDULE OF CITY'S CONTRIBUTIONS
TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM
Last Six Fiscal Years
20192018201720162015
Contractually required contribution
$ 40,26530,180$ 26,495$ $ 3 8,095$ 4 8,820
Contributions in relation to the contractually required
contribution
(30,180)(40,265) (26,495) (38,095) (48,820)
Contribution deficiency (excess)
- - - - -
City's covered payroll
29,17527,694 15,498 18,617 18,420
Contribution as a percentage of covered-employee payroll
103.4%145.4%171.0%204.6%265.0%
2014
Contractually required contribution
$26,055
Contributions in relation to the contractually required
(26,055)
contribution
Contribution deficiency (excess)
-
City's covered payroll
18,617
Contribution as a percentage of covered-employee payroll
140.0%
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Exhibit B-8
CITY OF LA PORTE, TEXAS
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
CITY OF LA PORTE RETIREE HEALTH CARE PLAN
For the last Two Measurement Years Ended December 31
Total OPEB Liability20182017
Service cost$ 1 ,671,651$ 1 ,424,797
Interest on the total OPEB liability 1,583,194 1,611,153
Difference between expected and actual
experience of the total OPEB liability (31,749) (43,219)
Changes in assumptions (147,052) 3,495,450
Benefit payments (996,520) (1,140,416)
Net change in total OPEB liability 2,079,524 5,347,765
Total OPEB Liability - Beginning 4 7,493,063 42,145,298
Total OPEB Liability - Ending$ 49,572,587$ 47,493,063
Covered payroll$22,506,678$ 21,799,361
Total OPEB liability as a percentage
of covered payroll220.26%217.86%
Notes to the Required Supplementary Information
Ten years of data should be presented but data was unavailable prior to 2017.
There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB
Statement No. 75.
The discount rate changed from 3.31% as of December 31, 2017 to 3.71% as of December31, 2018.
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Exhibit B-9
CITY OF LA PORTE, TEXAS
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
TEXAS MUNICIPAL RETIREMENT SYSTEM SUPPLEMENTAL DEATH BENEFITS FUND
For the Last Two Measurement Years Ended December 31
Total OPEB Liability20182017
Service cost$ 31,508$ 27,064
Interest on the total OPEB liability 35,270 3 4,660
Difference between expected and actual
experience of the total OPEB liability 24,065 -
Changes in assumptions (78,470) 9 1,149
Benefit payments (6,752) (6,766)
Net change in total OPEB liability 5,621 146,107
Total OPEB Liability - Beginning 1,052,876 906,769
Total OPEB Liability - Ending$ 1 ,058,497$ 1 ,052,876
Covered payroll$22,506,030$ 22,553,362
Total OPEB liability as a percentage
of covered payroll4.70%4.67%
Notes to the Required Supplementary Information
Ten years of data should be presented but data was unavailable prior to 2017.
There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB
Statement No. 75.
No significant methods and assumptions to disclose.
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COMBINING AND INDIVIDIUAL FUND
STATEMENTS AND SCHEDULES
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Non-major Governmental Funds
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally restricted for particular
purposes.
Hotel/Motel Occupancy Tax Fund - This fund is used to account for the accumulation of resources from
the Hotel/Motel Tax assessment levied by the City. These monies are to be spent to promote the
development or progress of the City within the guidelines set forth on disposition of revenues collected
under the authority of the Texas Hotel Occupancy Act (Article 1369; Vernon’s Texas Civil Statutes).
Section 4B Sales Tax Fund – This fund is used to account for funds received from the ½ cent sales tax
dedicated to certain economic and infrastructure projects.
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 maintenance.
These funds are used to account for revenues to be received from the Community Development Block Grant
Entitlement Fund.
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.
Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major capital facilities
other than those financed by proprietary funds.
2006 Certificate of Obligation Bonds Fund – This fund is used to account for the proceeds and expenditures
related to the Police Facility, a Sports Complex, 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.
2017 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.
Drainage Improvements – This fund is used to account for the proceeds and expenditures related to the
drainage fees collected.
Capital Improvements – This fund is used to account for projects that are generally small in nature and
affect the general operation of the City.
.
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CITY OF LA PORTE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2019
Special Revenue Funds
Hotel - Motel Street
Occupancy Section 4B Maintenance
Tax FundSales TaxSales Tax
Assets
Current Assets:
Cash and cash equivalents1,273,868$ 3,834,707$ 2,217,993$
Investments436,484942,576759,982
Receivables169,706580,027291,134
Total Assets
$ 5,357,3101,880,058$ 3,269,109$
Liabilities:
Accounts payable5,2721,034238,149
Accrued salaries7752,327-
Due to other funds-
Unearned revenues- - -
Total Liabilities
6,047 3,361 238,149
Fund Balances:
Restricted for:
Debt service -1,083,816 -
Economic development1,874,0114,270,133 -
Senior citizen programs - - -
Replacement of trees - - -
Municipal court building and - - -
Park improvements - - -
Public safety - - -
Capital projects - - -
Public works - -3,030,960
Other - - -
Total Fund Balances
1,874,011 5,353,949 3,030,960
Total Liabilities and Fund Balances
$ 1,880,058$ 5,357,310$ 3,269,109
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Exhibit C-1
Page 1 of 2
Special Revenue Funds
Emergency Restricted Total Special
Service Sales Funds Revenue
Tax(Grants)Funds
$ 866,808 $ 1 ,490,460$ 9,683,836
297,007510,6972,946,746
284,049376,5291,701,445
$ 1,447,864$ 2 ,377,686$ 14,332,027
12,8886,732264,075$
2,465 315,598
-
-1,143 1,143
15,353 7,906 270,816
- 1,083,816-
- 6,144,144-
-10,54310,543
545,695545,695-
521,625521,625-
147,674147,674-
1,432,511602,1252,034,636
- - -
- 3,030,960-
542,118542,118-
1,432,511 2 ,369,780 14,061,211
$ 1,447,864$ 2,377,686$ 14,332,027
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CITY OF LA PORTE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2018
Capital Projects Funds
2006 2010
Certificate of Certificate of 2017 Certificate
Obligation Obligation of Obligation
BondsBondBonds
Assets
Current Assets:
Cash and cash equivalents5,683$ $ 1 ,151,183$ 10,618,911
Investments 1,948 2 8 -
Receivables8 - -
Total Assets
$ 7,639$ 1,151,211$ 10,618,911
Liabilities:
Accounts payable - 1 0,000106,674
Accrued salaries - - -
Due to other funds 28,262 294,206
Unearned revenues - - -
Total Liabilities
- 3 8,262 400,880
Fund Balances:
Restricted for:
Debt service - - -
Economic development - - -
Senior citizen programs - - -
Replacement of trees - - -
Municipal court building and - - -
Park improvements - - -
Public safety - - -
Capital projects7,6391,112,94910,218,031
Public works - - -
Other - - -
Total Fund Balances
7,639 1,112,949 10,218,031
Total Liabilities and Fund Balances
$ 7,639$ 1,151,211$ 10,618,911
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Exhibit C-1
Page 2 of 2
Total
Total Capital Nonmajor
Capital Drainage Projects Governmental
ImprovementsImprovementsFundsFunds
$ 804,4176,916,297$ 19,496,491$ 29,180,327$
2,369,828 275,628 2,647,4325,594,178
9,19919,13828,345 1,729,790
$ 9,295,324$ 1,099,183$ 22,172,268$ 36,504,295
503,61825,008645,300909,375$
- - - 5,598
- -322,468322,468
- - - 1,143
503,618 25,008 967,768 1,238,584
-
- - - 1,083,816
- - - 6,144,144
- - - 10,543
- - - 545,695
- - - 521,625
- - - 147,674
- - - 2,034,636
8,791,7061,074,17521,204,500 21,204,500
- - - 3,030,960
- - - 542,118
8,791,706 1,074,175 21,204,500 35,265,711
$ 9,295,324$ 1,099,183$ 22,172,268$ 36,504,295
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CITY OF LA PORTE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019
Special Revenue Funds
Street Emergency
Hotel/Motel Section 4b Maintenance Service
TaxSales TaxSales TaxSales Tax
Revenues
Fines and forfeitures-$ $ - $ -$ -
Sales and use taxes 905,5903,250,2801,625,1401,575,139
Intergovernmental revenues - - - -
Investment earnings36,97689,11669,52821,861
Charges for services - - - -
Miscellaneous 8,373 - - -
Total revenues
950,939 3,339,396 1,694,668 1 ,597,000
Expenditures
Current:
General government 444,197338,341 - -
Public safety - - - 9 71,655
Public works - - 1,428,198 -
Culture and recreation - - - -
Capital outlay - - 118,220 7 7,069
Total expenditures
444,197 338,341 1,546,418 1 ,048,724
Excess (Deficiency) of Revenues
Over (Under) Expenditures
506,742 3,001,055 148,250 5 48,276
Other Financing Sources (Uses)
Transfers in - - - -
Transfers to other funds (57,500) (2,869,062) - -
Total Other Financing Sources (Uses)
(57,500) (2,869,062) - -
Change in Fund Balance
449,242 131,993 148,250 548,276
Fund Balances, Beginning
1,424,7695,221,9562,882,710884,235
Fund Balances, Ending
$ 1,874,011$ 5,353,949$ 3,030,960$ 1,432,511
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Exhibit C-2
Page 1 of 2
Total
Restricted Special
Funds Revenue
(Grants)Funds
$ 991,718$ 991,718
7,356,149-
236,437236,437
51,269268,750
- -
126,974135,347
1,406,398 8,988,401
93,089875,627
341,526 1,313,181
96,195 1,524,393
17,189 1 7,189
687,724 883,013
1,235,723 4,613,403
170,675 4,374,998
- -
(2,926,562)-
(2,926,562)-
170,675 1,448,436
2,199,10512,612,775
$ 2,369,780$14,061,211
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CITY OF LA PORTE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019
Capital Projects Fund
2006 2010
Certificate of Certificate of2017 Certificate
Obligation Obligation of Obligation
BondsBondBonds
Revenues
Fines and forfeitures-$ $ - $ -
Sales and use taxes - - -
Intergovernmental revenues - - -
Investment earnings18327,231154,419
Charges for services - - -
Miscellaneous - - -
Total revenues
183 2 7,231 154,419
Expenditures
Current:
General government - - -
Public safety - - -
Public works - - 186,958
Culture and recreation - - -
Capital outlay - 1 00,0006
Total expenditures
- 1 00,000 186,964
Excess (Deficiency) of Revenues
Over (Under) Expenditures
183 (72,769) (32,545)
Other Financing Sources (Uses)
Transfers in - - 0
Transfers to other funds - - -
Total Other Financing Sources (Uses)
- - -
Change in Fund Balance
183 (72,769) (32,545)
Fund Balances, Beginning (as restated)
7,4561,185,71810,250,576
Fund Balances, Ending
$ 1,112,9497,639$ 10,218,031$
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Exhibit C-2
Page 2 of 2
Capital Projects Fund
Drainage Total Capital Total Nonmajor
Capital ImprovementProjects Governmental
ImprovementssFundsFunds
$ - $ - $ - $ 991,718
- - - 7,356,149
- - - 236,437
200,74624,828407,407 676,157
- 278,509 278,509 278,509
- - - 135,347
200,746 303,337 685,916 9,674,317
138,833 - 138,833$ 1,014,460
- - - 1,313,181
- 35,720 222,678 1,747,071
1,273,316 - 1,273,316 1,290,505
1,053,137 99,419 1 ,252,562 2,135,575
2,465,286 135,139 2 ,887,389 7,500,792
(2,264,540) 168,198 (2,201,473) 2,173,525
3,837,852 - 3,837,852 3,837,852
- - - (2,926,562)
3,837,852 - 3,837,852 911,290
1,573,312 168,198 1 ,636,379 3,084,815
7,218,394905,97719,568,12132,180,896
$ 8,791,706$ 1,074,175$ 21,204,500$ 35,265,711
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Exhibit C-3
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, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Taxes:
Property taxes3,146,521$ $ 3 ,539,730$ 393,209$ 3,435,051
Investment earnings 8,200 1 6,533 8,333 2 9,595
Total revenues
3,154,721 3,556,263 401,542 3,464,646
Expenditures
Current:
Debt service:
Principal 3,735,000 3,735,000 - 3,370,000
Interest and fiscal charges 998,822 9 98,822 - 1,156,923
Total expenditures
4,733,822 4,733,822 - 4,526,923
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(1,579,101) (1,177,559) 401,542 (1,062,277)
Other Financing Sources (Uses)
Transfers in 1,271,124 1,271,124 - 1,577,604
Total Other Financing Sources (Uses)
1,271,124 1,271,124 - 1,577,604
Change in Fund Balance
(307,977) 9 3,565 401,542 515,327
Fund Balances, Beginning
4,398,4644,398,464 3,883,137-
Fund Balances, Ending
$ 4,090,487$ 4,492,029$ 401,542$ 4,398,464
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Exhibit C-4
CITY OF LA PORTE, TEXAS
2015 CERTIFICATE OF OBLIGATION BOND FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Investment earnings-$ $ 8 4,837$ 84,837$ 66,226
Total revenues
- 8 4,837 8 4,837 6 6,226
Expenditures
Current:
Capital outlay - 7 31,564(731,564) 1,214,438
Total expenditures
- 7 31,564(731,564) 1,214,438
Change in Fund Balance
(646,727)-(646,727)(1,148,212)
Fund Balances, Beginning
3,403,2223,403,222- 4,551,434
Fund Balances, Ending
$3,403,222$2,756,495$(646,727)$ 3,403,222
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Exhibit C-5
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, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Sales and use taxes$ 7 00,000$ 9 05,590$ 2 05,590$ 796,924
Investment earnings 7,250 3 6,976 29,726 13,147
Miscellaneous - 8 ,373 8 ,373 5 ,220
Total revenues
707,250 9 50,939 2 43,689 815,291
Current:
General government 6 36,203 4 44,197 1 92,006 496,430
Total expenditures
636,203 4 44,197 1 92,006 496,430
Excess (Deficiency) of Revenues
Over (Under) Expenditures
71,047 5 06,742 4 35,695 318,861
Other Financing Sources (Uses)
Transfers to other funds (57,500) (57,500) - (57,500)
Total Other Financing Sources (Uses)
(57,500) (57,500) - (57,500)
Change in Fund Balance
13,547 4 49,242 4 35,695 261,361
Fund Balances, Beginning
1,424,7691,424,769 - 1,163,408
Fund Balances, Ending
$ 1,438,316$ 1,874,011$ 4 35,695$ 1,424,769
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Exhibit C-6
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, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Sales and use taxes2,500,000$ 3,250,280$ $ 7 50,280$ 2,916,380
Investment earnings 30,000 89,116 59,116 48,073
Total revenues
2,530,000 3 ,339,396 809,396 2,964,453
Expenditures
General government 681,745 3 38,341 3 43,404 346,636
Total expenditures
681,745 3 38,341 3 43,404 346,636
Excess (Deficiency) of Revenues
Over (Under) Expenditures
1,848,255 3 ,001,0551,152,800 2,617,817
Other Financing Sources (Uses)
Transfers to other funds(2,869,062)(2,869,062) (3,079,212)-
Total Other Financing Sources (Uses)
(2,869,062)(2,869,062) (3,079,212)-
Change in Fund Balance
(1,020,807) 1 31,993 1 ,152,800 (461,395)
Fund Balances, Beginning
5,221,9565,221,956- 5,683,351
Fund Balances, Ending
$ 4,201,149$ 5,353,949$ 5,221,9561,152,800$
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Exhibit C-7
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, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Sales and use taxes$ 1 ,250,000$ 375,1401,625,140$$ 1,458,190
Investment earnings15,000 69,528 54,528 27,428
Total revenues
1,265,000 1 ,694,668 4 29,668 1,485,618
Expenditures
Current:
Public works 1 ,348,509 1 ,428,198 ( 79,689) 783,768
Capital outlay 118,220- ( 118,220) 285,621
Total expenditures
1,348,509 1 ,546,418 ( 197,909) 1,069,389
Change in Fund Balance
(83,509) 1 48,250 2 31,759 416,229
Fund Balances, Beginning
2,882,7102,882,710 -2,466,481
Fund Balances, Ending
$2,799,201$ 3 ,030,960$ 2 31,759$ 2,882,710
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106
Exhibit C-8
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, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Sales and use taxes$ 1 ,250,000$1,575,139$ 3 25,139$ 1 ,452,028
Investment earnings 4,500 2 1,861 17,361 4,467
Total revenues
1,254,500 1 ,597,000 3 42,500 1,456,495
Expenditures
Current:
General government - - - 9 51,318
Public safety 973,853 9 71,655 2,198 -
Capital outlay 82,199 7 7,069 5,130 103,582
Total expenditures
1,056,052 1 ,048,724 7 ,328 1,054,900
Change in Fund Balance
198,448 5 48,276 3 49,828 401,595
Fund Balances, Beginning
884,235884,235- 482,640
Fund Balances, Ending
$ 1,082,683$ 1 ,432,511$ 3 49,828$ 884,235
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107
Exhibit C-9
CITY OF LA PORTE, TEXAS
SPECIAL REVENUE FUND - RESTRICTED FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Fines and forfeitures$ 1 29,000$ 2 36,437$ 1 07,437$ 225,324
Intergovernmental revenues 2 42,706 9 91,718 7 49,012 893,006
Investment earnings - 5 1,269 5 1,269 2 7,620
Charges for services 126,974850 126,124 3 5,552
Total revenues
372,556 1 ,406,398 1 ,033,8421,181,502
Expenditures
Current:
General government 166,427 9 3,089 7 3,338 6 6,974
Public safety 4 14,438341,526 72,912 305,838
Public works 47,300 9 6,195 ( 48,895) 7 8,566
Culture and recreation - 1 7,189 ( 17,189) 4 6,915
Capital outlay 6 3,239 6 87,724 ( 624,485) 850,647
Total expenditures
691,404 1 ,235,723 ( 544,319)1,348,940
Change in Fund Balance
(318,848) 1 70,675 4 89,523 (167,438)
Fund Balances, Beginning
2,199,1052,199,105- 2,366,543
Fund Balances, Ending
$1,880,257$2,369,780$ 4 89,523$ 2,199,105
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108
Exhibit C-10
CITY OF LA PORTE, TEXAS
2006 CERTIFICATE OF OBLIGATION BOND FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Investment earnings-$ $ 1 83$ 1 83$ 3 ,971
Total revenues
- 1 83 1 83 3 ,971
Excess (Deficiency) of Revenues
Over (Under) Expenditures
- 1 83 1 83 3 ,971
Other Financing Sources (Uses)
Transfers to other funds - - (563,592)-
Total Other Financing Sources (Uses)
- - (563,592)-
Change in Fund Balance
- 1 83 (559,621)183
Fund Balances, Beginning
7,4567,456- 567,077
Fund Balances, Ending
$ 7,456$ 7 ,639$ 183$ 7,455
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109
Exhibit C-11
CITY OF LA PORTE, TEXAS
2010 CERTIFICATE OF OBLIGATION BOND FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Investment earnings-$ 27,231$ $ 2 7,231$ 17,974
Total revenues
- 2 7,231 2 7,231 1 7,974
Expenditures
Current:
Capital outlay 750,000100,000650,000 9 ,333
Total expenditures
750,000100,000650,000 9 ,333
Change in Fund Balance
(750,000) ( 72,769) 6 77,231 8 ,641
Fund Balances, Beginning
1,185,7181,185,718- 1,177,077
Fund Balances, Ending
$ 1,112,949435,718$ 677,231$$ 1 ,185,718
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110
Exhibit C-12
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - 2017 CERTIFICATE OF OBLIGATION BONDS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Investment earnings$ 154,419-$ $ 1 54,419$ 181,549
Total revenues
- 1 54,419 154,419 181,549
Expenditures
Current:
Public works9,457,750 186,958 9 ,270,792 308,972
Capital outlay42,250642,244 -
Debt service:
Total expenditures
9,500,000 186,964 9 ,313,036 308,972
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(9,500,000) (32,545)9,467,455(127,423)
Change in Fund Balance
(9,500,000) (32,545)9,467,455(127,423)
Fund Balances, Beginning
10,250,576 10,377,999
Fund Balances, Ending
$ 10,218,031750,576$ 9,467,455$$10,250,576
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111
Exhibit C-13
CITY OF LA PORTE, TEXAS
CAPITAL IMPROVEMENTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Investment earnings15,000$ $ 2 00,746$ 1 85,746$ 72,091
Total revenues
15,000 200,746 185,746 7 2,091
Expenditures
Current:
General government 34,810 1 38,833 ( 104,023) 103,291
Culture and recreation 1,273,316- (1,273,316) 251,969
Capital outlay 4,231,342 1,053,137 3 ,178,205 619,507
Total expenditures
4,266,152 2,465,286 1 ,800,866 974,767
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(4,251,152) (2,264,540) 1,986,612 (902,676)
Other Financing Sources (Uses)
Transfers in 3,837,852 3,837,852 3,565,200-
Total Other Financing Sources (Uses)
3,837,852 3,837,852 3,565,200-
Change in Fund Balance
(413,300) 1,573,312 1 ,986,612 2,662,524
Fund Balances, Beginning
7,218,3947,218,394 4,555,870-
Fund Balances, Ending
$6,805,094$8,791,706$ 1,986,612$ 7,218,394
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112
Exhibit C-14
CITY OF LA PORTE, TEXAS
CAPITAL PROJECTS FUND - DRAINAGE IMPROVEMENTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2019
With comparative actual totals for the year ended September 30, 2018
Variance
Final GAAP Positive
BudgetActual(Negative)2018
Revenues
Investment earnings7,500$ 24,828$ $ 1 7,328$ 11,541
Charges for services 2 79,000 278,509 ( 491) 2 67,358
Total revenues
286,500 3 03,337 1 6,837 278,899
Expenditures
Current:
Public works 35,720- (35,720) 1 5,454
Capital outlay922,000 99,419 8 22,581 345,706
Total expenditures
922,000 1 35,139 7 86,861 361,160
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(635,500) 1 68,198 8 03,698 (82,261)
Change in Fund Balance
(635,500) 1 68,198 8 03,698 (82,261)
Fund Balances, Beginning
905,977905,977- 988,239
Fund Balances, Ending
$270,477$ 1,074,175$ 803,698$ 905,978
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CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues - Budget and Actual
For the Year Ended September 30, 2019
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Taxes:
Ad valorem:
Current17,416,000$ 17,416,000$ 18,923,083$ 1,507,083$
Delinquent100,000100,000(174,281) (274,281)
Penalty and interest160,500160,500270,809110,309
Total ad valorem17,676,50017,676,50019,019,611 1,343,111
Industrial Payments13,750,00013,750,00014,899,6241,149,624
Sales Taxes5,000,0005,000,0006,499,2541,499,254
Other Taxes90,00090,00088,624 (1,376)
Franchise Fees:
Electrical2,018,6312,018,6312,162,840144,209
Gas140,500140,500135,688 (4,812)
Telephone275,000275,000389,617114,617
Cable400,000400,000276,123(123,877)
Commercial Solidwaste85,00085,00071,576(13,424)
Total Franchise Fees 2,919,131 2,919,1313,035,844 116,713
Charges for Services:
Public safety service fees603,414603,414625,198 21,784
Health and sanitation service fees3,215,5003,215,5003,233,493 17,993
Culture and recreation fees1,697,1951,697,1951,563,261(133,934)
Other service fees375,725375,725362,440(13,285)
Total Charges for Services 5,891,834 5,891,8345,784,392 (107,442)
Intergovernmental - 893,217- 893,217
Licenses and permits:
Building permits627,300627,3001,319,235691,935
Licenses18,85018,85025,212 6,362
Total Licenses and permits 646,150 646,1501,344,447 698,297
Investment income400,000400,0001,436,2381,036,238
Fines and forfeitures1,559,5501,559,5502,277,993718,443
Miscellaneous169,114169,114316,015146,901
Total revenues$ 48,102,279$48,102,279$ 55,595,259$ 7,492,980
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CITY OF LA PORTE, TEXAS Page 1 of 6
General Fund
Schedule of Expenditures - Budget and Actual
For the Year Ended September 30, 2019
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
General Government
Administration:
Emergency Management:
Personal services258,542$ 258,542$ 263,038$ (4,496)$
Supplies4,942 4,942 5,408 (466)
Other services and charges79,118 104,019 52,166 51,853
Total Emergency Management342,602 367,503 320,612 46,891
General Administration:
Personal services498,764$ 498,764$ 466,758$ 32,006
Supplies3,300 4,300 6,017 (1,717)
Other services and charges152,989 151,989 27,643 124,346
Total General Administration655,053 655,053 500,418 154,635
Community Investment:
Personal services-$ $ -$ - -
Supplies 27,815 27,815 30,555 (2,740)
Other services and charges 85,700 85,700 59,350 26,350
Total Community Investment 113,515 113,515 89,905 23,610
Human Resources:
Personal services$ 265,468$ 265,468$ 294,521 (29,053)
Supplies 2,350 2,350 1,521 829
Other services and charges185,910200,510186,43214,078
Total Human Resources 453,728 468,328 482,474 (14,146)
Information Technology
Personal services$ 675,188$ 675,188$ 637,296 37,892
Supplies 22,787 22,78726,859(4,072)
Other services and charges 1,599,985 1,812,985 1,750,201 62,784
Total Information Technology 2,297,960 2,510,960 2,414,356 96,604
Municipal Court:
Personal services$ 792,390$ 792,390$ 769,201 23,189
Supplies and materials 27,250 26,800 20,925 5,875
Other services and charges 123,493 167,911 113,150 54,761
Total Municipal Court 943,133 987,101 903,276 83,825
Purchasing:
Personal services$ 279,913$ 279,913$ 284,735 (4,822)
Supplies 1,200 1,200 825 375
Other services and charges 9,155 9,155 7,785 1,370
Capital Outlay - - - -
Total Purchasing 290,268 290,268 293,345 (3,077)
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Page 2 of 6
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
For the Year Ended September 30, 2019
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
General Government (continued)
City Secretary:
Personal services389,371$ 389,371$ 389,415$ (44)
Supplies and materials15,650 15,700 15,944 (244)
Other services and charges84,536 89,786 81,737 8,049
Total City Secretary489,557 494,857 487,096 7,761
Legal:
Personal services14,823$ 14,823$ 129,013$ (114,190)
Supplies and materials- - -
Other services and charges 169,397 169,397 33,725 135,672
Capital outlay - - - -
Total Legal 184,220 184,220 162,738 21,482
City Council:
Personal services$ 37,462$ 37,462$ 38,692 (1,230)
Supplies and materials - 450 1,017 (567)
Other services and charges 22,984 28,984 31,616 (2,632)
Total City Council 60,446 66,896 71,325 (4,429)
Total Administration
5,830,482 6,138,701 5,725,545 413,156
Finance:
Accounting:
Personal services$ 800,091$ 800,091$ 759,845$ 40,246
Supplies 7,775 8,175 8,563 (388)
Other services and charges 86,954 91,517 81,786 9,731
Total Accounting 894,820 899,783 850,194 49,589
Nondepartmental:
Personal services$ 655,262$ 655,262$ 648,589 6,673
Supplies 4,800 4,800 6,138 (1,338)
Other services and charges 2,009,215 1,938,389 1,062,270 876,119
Total Nondepartmental 2,669,277 2,598,451 1,716,997 881,454
Tax Office:
Personal services$ 190,739$ 190,739$ 162,676 28,063
Supplies and materials 2,725 2,725 2,288 437
Other services and charges 292,692 292,692 287,248 5,444
Total Tax Office 486,156 486,156 452,212 33,944
Total Finance
4,050,253 3,984,390 3,019,403 964,987
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CITY OF LA PORTE, TEXAS Page 3 of 6
General Fund
Schedule of Expenditures - Budget and Actual
For the Year Ended September 30, 2019
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
General Government (continued)
Planning and Engineering:
Planning and Engineering:
Personal services540,012$ 540,012$ 520,916$ 19,096
Supplies7,601 7,051 4,953 2,098
Other services and charges55,354 61,765 47,121 14,644
Total Planning and Engineering602,967 608,828 572,990 35,838
Inspection:
Personal services818,020$ 818,020$ 815,308$ 2,712
Supplies22,826 22,826 21,914 912
Other services and charges157,244 183,201 89,048 94,153
Total Inspection998,090 1,024,047 926,270 97,777
Total Planning and Engineering
1,632,8751,601,057 1,499,260 133,615
Total General Government
11,755,96611,481,792 10,244,208 1,511,758
Public Safety
Fire
Fire Prevention:
Personal services344,614$ 344,614$ 337,676$ 6,938
Supplies18,128 18,128 16,279 1,849
Other services and charges14,806 14,806 14,128 678
Total Fire Prevention377,548 377,548 368,083 9,465
Fire suppression:
Personal services1,595,271$ 1,595,271$ 1,696,573$ (101,302)
Supplies46,372 46,372 66,924 (20,552)
Other services and charges277,617 283,602 263,830 19,772
Total Fire Suppression1,919,260 1,925,245 2,027,327 (102,082)
Emergency medical services:
Personal services$ 2,570,089$ 2,570,089$ 2,646,346 (76,257)
Supplies 165,961 166,186 163,998 2,188
Other services and charges 151,087 150,862 139,460 11,402
Total Emergency Services 2,887,137 2,887,137 2,949,804 (62,667)
Total Fire
5,183,945 5,189,930 5,345,214 (155,284)
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Page 4 of 6
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
For the Year Ended September 30, 2019
Variance with
Final Budget
Budgeted Amounts
ActualPositive
OriginalFinalAmounts(Negative)
Public Safety (continued)
Police
Police Administration:
Personal services771,558$ 771,558$ 747,968$ 23,590$
Supplies25,870 29,619 27,018 2,601
Other services and charges240,732 245,732 205,362 40,370
Capital Outlay5,000 - -
Total Police Administration 1,043,160 1,046,909 980,348 66,561.00
Police Patrol:
Personal services$ 5,976,409$ 5,976,409$ 5,764,992 211,417
Supplies 225,162 267,432 274,770 (7,338)
Other services and charges 857,079 857,079 903,641 (46,562)
Capital Outlay 42,000 3,985 - 3,985
Total Police Patrol 7,100,650 7,104,905 6,943,403 161,502
Criminal Investigation:
Personal services$ 2,294,702$ 2,294,702$ 2,122,065 172,637
Supplies 48,943 48,943 38,574 10,369
Other services and charges 136,040 136,040 124,949 11,091
Total Criminal Investigation 2,479,685 2,479,685 2,285,588 194,097
Support Services:
Personal services$ 2,830,655$ 2,830,655$ 2,686,062 144,593
Supplies 96,015 104,015 102,143 1,872
Other services and charges 247,099 239,099 232,854 6,245
Capital Outlay - 37,230 28,099 9,131
Total Support Services 3,173,769 3,210,999 3,049,158 161,841
Total Police
13,797,264 13,842,498 13,258,497 584,001
Total Public Safety
18,981,209 19,032,428 18,603,711 428,717
Public Works
Public Works Administration:
Personal services$ 624,783$ 624,783$ 631,236 (6,453)
Supplies and materials 9,420 9,420 7,686 1,734
Other services and charges 74,384 73,649 61,496 12,153
Capital outlay 6,250 6,985 6,984 -
Total Public Works Administration714,837 714,837 707,402 7,434
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CITY OF LA PORTE, TEXASPage 5 of 6
General Fund
Schedule of Expenditures - Budget and Actual
For the Year Ended September 30, 2019
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Public Works (continued)
Streets:
Personal services1,802,976$ 1,802,976$ 1,681,914$ 121,062
Supplies133,747 146,622 112,258 34,364
Other services and charges882,969 878,669 767,350 111,319
Total Streets2,819,692 2,828,267 2,561,522 266,745
Total Public Works
3,543,1043,534,529 3,268,924 274,179
Health and Sanitation
Residential solidwaste:
Personal services1,379,243$ 1,379,243$ 1,444,279$ (65,036)
Supplies292,077 292,077 287,121 4,956
Other services and charges1,180,426 1,180,426 1,229,251 (48,825)
Total Residential Solidwaste2,851,746 2,851,746 2,960,651 (108,905)
Commercial solidwaste:
Other services and charges17,50017,50016,910590
Total Commercial Solidwaste17,500 17,500 16,910 590
Total Health and Sanitation
2,869,2462,869,246 2,977,561 (108,315)
Culture & Recreation
Park Maintenance:
Personal services1,505,932$ 1,505,932$ 1,601,626$ (95,694)$
Supplies and materials113,908 113,908 125,044 (11,136)
Other services and charges820,896 846,487 871,677 (25,190)
Capital outlay22,268 12,700 12,694 6
Total Park Maintenance2,463,004 2,479,027 2,611,041 (132,014)
Recreation:
Personal services726,355$ 726,355$ 635,924$ 90,431
Supplies 65,233 69,288 56,515 12,773
Other services and charges 77,468 77,468 55,185 22,283
Capital Outlay - - -
Total Recreation 869,056 873,111 747,624 125,487
Special Services:
Personal services$ 427,095$ 427,095$ 377,260 49,835
Supplies 21,008 21,008 18,070 2,938
Other services and charges 62,064 62,064 60,050 2,014
Total Special Services 510,167 510,167 455,380 54,787
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CITY OF LA PORTE, TEXASPage 6 of 6
General Fund
Schedule of Expenditures - Budget and Actual
For the Year Ended September 30, 2019
Variance with
Final Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Culture & Recreation (continued)
Parks Administration:
Personal Services550,635$ 550,635$ 529,752$ 20,883
Supplies7,250 7,250 6,509 741
Other Services and Charges22,371 62,371 35,438 26,933
Total Parks Administration580,256 620,256 571,699 48,557
Golf Course - Club House
Personal Services498,133$ 498,133$ 460,487$ 37,646
Supplies63,700 63,700 58,702 4,998
Other Services and Charges75,155 79,955 59,551 20,404
Capital Outlay- - -
Total Golf Course 636,988641,788578,74063,048
Golf Course - Maintenance
Personal Services$ 673,103$673,103$ 663,3199,784
Supplies 151,700151,100102,29848,802
Other Services and Charges 215,991216,591199,53817,053
Total Golf Course 1,040,7941,040,794965,15575,639
Total Culture & Recreation
6,100,2656,165,1435,929,639235,504
Total General Fund
$42,967,041$43,365,887$41,024,043$ 2,341,843
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CITY OF LA PORTE, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
September 30, 2019
Vehicle Employee
Replacement Health
FundInsuranceTechnologyTotal
Assets
Current Assets:
Cash and cash equivalents4,099,230$ 938,585$ 1,726,146$ 6,763,961$
Investments1,465,204321,600591,4542,378,258
Other receivables, net of allowance5,5126,9212,29614,729
Due from other governments- 119,927- 119,927
Inventories48,314- - 48,314
Total Current Assets
5,618,260 1,387,033 2,319,8969,325,189
Noncurrent Assets:
Capital assets:
Land and improvements - - 60,91460,914
Equipment19,476,355 -737,39220,213,747
Less accumulated depreciation(11, 420,245) (430,566)- (11,850,811)
Total Non-Current Assets
8,056,110 - 367,7408,423,850
Total Assets
13,674,370 1,387,033 2,687,636 17,749,039
Liabilities
Current liabilities:
Accounts payable 32,71815,371 - 48,089
Accrued liabilities15,4641,330 - 16,794
Unearned revenue -0 - -
Claims and judgments -598,478 - 598,478
Total Current Liabilities
48,182 615,179 - 663,361
Noncurrent Liabilities:
Accrued compensated absences37,679 - - 37,679
Total Noncurrent Liabilities
37,679 - - 37,679
Total Liabilities
85,861 615,179 - 701,040
Net Position
Invested in capital assets 8,056,110 - 367,7408,423,850
Unrestricted5,532,399771,8542,319,8968,624,149
Total Net Position
$13,588,509$ 771,854$ 2,687,636$ 17,047,999
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CITY OF LA PORTE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2019
Vehicle Employee
Replacement Health
FundInsuranceTechnologyTotal
Operating Revenues
Charges for Services3,342,853$ 6,096,776$ 344,829$ 9,784,458$
Other2,030 2,030
Total Operating Revenues
6,098,8063,342,853 344,829 9,786,488
Operating Expenses
Personnel797,980347,128- 1,145,108
Supplies and materials566,9598,397,356 68,8249,033,139
Depreciation1,654,313- 96,0401,750,353
Total Operating Expenses
8,744,4843,019,252 164,864 11,928,600
Operating Income (Loss)
(2,645,678)323,601 179,965 (2,142,112)
Non-Operating Revenues
Investment Earnings119,91427,41852,119199,451
Gain/loss on disposal of capital assets28,987 - - 28,987
Total Non-Operating Revenues
148,901 27,418 52,119 228,438
Income (Loss) Before
Contributions and Transfers
472,502 (2,618,260) 232,084 (1,913,674)
Contributions and Transfers
Transfers from other funds 2,465,037- - 2,465,037
Transfers (to) other funds (20,585) - - (20,585)
Total Contributions and Transfer
2,465,037(20,585) - 2,444,452
Change in Net Position
451,917 (153,223) 232,084 530,778
Net position, beginning
13,136,592 925,077 2,455,552 16,517,221
Net position, Ending
$ 13,588,509$ 771,854$ 2,687,636$ 17,047,999
DRAFT 02.25.2020
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CITY OF LA PORTE, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2019
Vehicle Employee
Replacement Health
FundInsuranceTechnologyTotal
Cash Flows from Operating Activities
Receipts from customers3,344,819$ $ 6 ,110,394$ 345,609$ 9,800,822
Disbursed for personnel services(786,652)(346,864) - (1,133,516)
Disbursed for goods and services to suppliers(560,081)(8,331,281) (68,824)(8,960,186)
Net Cash Provided (Used) by Operating
Activities
1,998,086(2,567,751)276,785(292,880)
Cash Flows From Noncapital Financing Activities
Transfer from other funds 2,465,037- - 2,465,037
Transfers to other funds(20,585) - - (20,585)
Net Cash Provided by Noncapital
Financial Activities
(20,585)2,465,037 2,444,452-
Cash Flows from Capital & Related Financing
Activities
Proceeds from the sale of equipment102,309 - - 102,309
Acquisition and construction of capital assets(663,133) - - (663,133)
Financing Activities
(560,824) --(560,824)
Cash Flows from Investing Activities
Interest received119,91427,41852,119199,451
Sale of investments492,179309,914361,7281,163,821
Net Cash Provided by Investing Activities
612,093337,332413,8471,363,272
Net Increase (Decrease) in Cash and Cash
Equivalents
2,028,770234,618690,6322,954,020
Cash and Cash Equivalents, Beginning2,070,460703,9671,035,5143,809,941
Cash and Cash Equivalents, Ending
$ 4,099,230$938,585$ 1,726,146$ 6,763,961
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities
Operating income (loss)$ 323,601$ (2,645,678)$ 179,965(2,142,112)
Adjustments to reconcile operating income to
net cash used by operating activities:
Depreciation1,654,313 -96,0401,750,353
(Increase) decrease in accounts receivable1,96611,58878014,334
(Increase) in inventories(3,279) - - (3,279)
Increase (decrease) in accounts payable10,15714,446 -24,603
Increase (decrease in accrued liabilities4,730264 -4,994
Increase (decrease) in claims-51,629 - 51,629
Increase (decrease) in compensated absences6,598 - - 6,598
Net Cash Provided (Used) by Operating
Activities
$ (2,567,751)1,998,086$ 276,785$ (292,880)$
DRAFT 02.25.2020
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STATISTICAL SECTION
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STATISTICAL SECTION
This part of the City's comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures and
required supplementary information says about the City's overall financial health.
Contents
Page
Financial Trends
These schedules contain trend information to help the reader understand
how the City's financial performance and well-being have changed over 128
time.
Revenue Capacity
These schedules contain information to help the reader assess the City's
139
most significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the
affordability of the City's current levels of outstanding debt and the City's 146
ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the City's financial 150
activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the City's financial report relates to the
152
services the City provides and the activities it performs.
Sources - Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial report for the relevant year.
DRAFT 02.25.2020
127
CITY OF LA PORTE
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
2010201120122013
Governmental Activities
Investment in capital assets 35,194,777$ $ 37,323,705$ 46,813,655$ 49,304,074
Restricted 18,108,170 8,060,185 8,728,729 8,902,103
Unrestricted 13,904,445 26,859,397 21,621,240 22,529,801
Total Governmental
Activities Net Position
$ 67,207,392$ 72,243,287$ 77,163,624$ 80,735,978
Business-type Activities
Investment in capital assets 40,595,009$ $ 37,606,236$ 37,566,663$ 36,347,233
Restricted 1,459,834 680,136 559,309 2,096,178
Unrestricted 2,027,477 4,199,014 3,790,669 2,300,991
Total Business-type
Activities Net Position
$ 44,082,320$ 42,485,386$ 41,916,641$ 40,744,402
Primary Government
Net investment in capital
assets 75,789,787$ $ 74,929,941$ 84,380,318$ 85,651,307
Restricted 19,568,004 8,740,321 9,288,038 10,998,281
Unrestricted 15,931,922 31,058,412 25,411,909 24,830,792
Total Primary Government
Net Position
$ 111,289,713$ 114,728,674$ 119,080,265$ 121,480,380
DRAFT 02.25.2020
128
Table 1
201420152016201720182019
$ 43,582,70454,506,024$ 48,367,017$ 44,468,918$ 43,421,145$ 53,011,914$
14,507,64311,088,233 17,854,935 24,105,852 31,025,084 30,267,219
21,693,06418,634,881 23,690,222 26,907,445 1,505,194 9,907,393
$ 79,783,41184,229,138$ 89,912,174$ 95,482,215$ 75,951,423$ 93,186,526$
$ 34,807,77335,872,947$ 34,291,664$ 33,782,624$ 32,199,968$ 31,735,493$
1,250,8501,930,369 846,400 520,000 - -
4,110,8772,669,258 5,344,130 7,661,080 8,011,016 8,371,707
$ 40,169,50040,472,574$ 40,482,194$ 41,963,704$ 40,210,984$ 40,107,200$
$ 78,390,47790,378,971$ 82,658,680$ 78,251,542$ 75,621,113$ 84,747,407$
15,758,49313,018,602 18,701,334 24,625,852 31,025,084 30,267,219
25,803,94121,304,139 29,034,352 34,568,525 9,516,210 18,279,100
$ 119,952,911124,701,712$ 130,394,366$ 137,445,919$ 116,162,407$ 133,293,726$
DRAFT 02.25.2020
129
CITY OF LA PORTE
CHANGES IN NET POSITION
Last Ten Fiscal Years
(accrual basis of accounting)
2010201120122013
Expenses
Governmental Activities
General government$ 11,497,476$ 14,574,511$ 14,091,176$ 13,854,988
Public safety 17,108,837 16,305,997 17,374,566 17,765,388
Public works 4,601,382 6,279,510 3,784,047 4,451,455
Health, welfare and sanitation 2,521,222 2,453,634 2,423,898 2,327,982
Culture and recreation 6,483,006 6,032,602 6,361,313 5,721,611
Interest on long-term debt 1,556,740 1,871,431 1,268,112 1,384,875
Total Governmental Activities Expenses
43,768,663 47,517,685 45,303,112 45,506,299
Business-type activities
Water services 5,721,303 6,942,077 7,691,088 8,207,204
Sewer services 2,674,456 3,093,526 2,932,057 2,598,649
Airport 181,040 194,392 182,700 210,323
Bay Forest Golf Course 1,485,097 - - -
Total Business-type Activities Expenses
10,061,896 10,229,995 10,805,845 11,016,176
Total Primary Government Expenses
$ 53,830,559$ 57,747,680$ 56,108,957$ 56,522,475
Program Revenues
Governmental Activities
Charges for services
General government$ 3,116,325$ 711,994$ 843,898$ 645,517
Public safety1,593,2473,506,2543,127,5953,313,735
Public works 1,066,936 329,502 267,534 265,962
Health, welfare and sanitation 1,842,135 2,046,369 2,197,491 2,204,153
Culture and recreation 660,780 1,474,247 1,384,810 1,444,002
Operating grants and contributions
General government - 7,649 239,654 2,841
610,967 431,076 433,367
Public safety928,389
Public works - 427,732 766,127 20,168
Health, welfare and sanitation 64,025
Culture and recreation 11,633 107,419 78,348 393,035
Capital grants and contributions
General government - - - -
Public works - 1,338 644 470
Total Governmental Activities Program
Revenues
9,283,470 9,223,471 9,337,177 8,723,250
Business-type Activities
Charges for services:
Water services 3,849,661 6,267,432 6,054,683 5,693,598
Sewer services 3,307,484 3,534,535 3,600,979 3,420,370
Airport 53,216 56,429 28,340 56,246
Bay Forest golf Course 1,002,234 - - -
Capital grants and contributions 860,304 1,441,674 858,431 1,398,291
Total Business-type Activities Program
Revenues
9,072,899 11,300,070 10,542,433 10,568,505
Total Primary Government Program
Revenues
$ 18,356,369$ 20,523,541$ 19,879,610$ 19,291,755
Net (Expense)/Revenue
Governmental activities$ (34,485,193)$ (38,294,214)$ (35,965,935)$(36,783,049)
Business-type activities (988,997) 1,070,075 (263,412) (447,671)
Total Primary Government Net Expense
$ (35,474,190)$ (37,224,139)$ (36,229,347)$(37,230,720)
DRAFT 02.25.2020
130
Table 2
Page 1 of 2
201420152016201720182019
$14,115,210$12,962,387$ 14,255,413$15,735,976$15,832,003$ 15,519,147
20,436,45019,081,62221,114,93921,446,42121,673,18821,356,779
6,259,7644,088,1464,422,4644,930,7219,796,3267,818,696
2,519,2985,748,2066,059,8963,899,6784,685,7954,016,465
5,854,5463,497,1743,439,7226,177,5546,513,7946,932,569
1,403,6281,585,3541,782,5082,506,0041,059,007900,287
50,588,89646,962,88951,074,94254,696,35459,560,11356,543,943
7,731,7765,064,2874,985,9026,269,3568,788,1137,985,233
2,802,0134,347,3094,374,7634,267,9011,926,1331,769,830
229,603 230,006210,590210,324133,093157,008
- --- --
10,763,3929,641,6029,571,25510,747,58110,847,3399,912,071
$61,352,288$56,604,491$ 60,646,197$65,443,935$70,407,452$ 66,456,014
$825,532$3,981,230$3,035,577$ 2,538,477$3,397,779$ 4,067,810
3,208,2561,664,7821,913,2891,553,8721,125,3452,217,655
269,830 336,917343,682354,096267,358278,509
2,223,2342,255,0952,244,0612,401,7832,231,7272,247,869
1,509,4122,057,2531,614,0851,584,8631,547,7861,676,381
2,982 --- --
545,738 307,016436,3751,119,223352,8861,286,498
258,119 23,14317,731123,4352,55915,435
1,207,958 1,2057567516501,443
- ---57,474-
2923,030,480607,357582,045537,786596,878
10,051,35313,657,12110,212,91310,258,5459,521,35012,388,478
5,406,5454,308,5784,795,7195,982,3508,726,7108,389,773
3,422,6273,587,8253,652,0713,551,7281,320,8161,109,495
56,157 59,18162,84960,65161,87958,971
- --- --
1,125,777 787,285534,168126,359126,359262,977
10,011,1068,742,8699,044,8079,721,08810,235,7649,821,216
$20,062,459$22,399,990$ 19,257,720$19,979,633$19,757,114$ 22,209,694
$(40,537,543)$(33,305,768)$(40,862,029)$(44,437,809)$(50,038,763)$ (44,155,465)
(752,286)(898,733)(526,448)(1,026,493)(611,575)(90,855)
$(41,289,829)$(34,204,501)$(41,388,477)$(45,464,302)$(50,650,338)$ (44,246,320)
DRAFT 02.25.2020
131
CITY OF LA PORTE
CHANGES IN NET POSITION
Last Ten Fiscal Years
(accrual basis of accounting)
2010201120122013
General Revenues and Other Changes in Net Position
Governmental Activities
Property taxes$ 17,742,405$ 17,163,861$ 17,251,131$ 17,782,090
Industrial payments 10,732,488 10,192,582 10,471,444 11,107,848
Sales and use taxes 5,913,679 6,235,537 8,267,162 8,717,613
Franchise taxes 2,170,699 2,195,824 2,311,944 2,184,020
Investment earnings 293,943 216,465 142,951 84,170
Other revenues 164,237 374,727 167,922 432,405
Gain/(Loss) no sale of capital assets - 4,244,239 1,939,699 -
Transfers (1,000,432) 2,706,874 334,029 720,356
Total Governmental Activities
36,017,019 43,330,109 40,886,282 41,028,502
Business-type Activities
Investment earnings 39,078 33,243 12,309 8,468
Other revenues - 6,622 16,387 36,378
Miscellaneous - - - -
Transfers 1,000,432 (2,706,874) (334,029) (720,356)
Total Business-type Activities
1,039,510 (2,667,009) (305,333) (675,510)
Total Primary Government
$ 37,056,529$ 40,663,100$ 40,580,949$ 40,352,992
Change in Net Position
Governmental activities$ 1,531,826$ 5,035,895$ 4,920,347$ 4,245,453
Business-type activities 50,513 (1,596,933) (568,745) (1,123,181)
Total Primary Government
$ 1,582,339$ 3,438,962$ 4,351,601$ 3,122,272
DRAFT 02.25.2020
132
Table 2
Page 2 of 2
201420152016201720182019
$ 19,925,095$ 20,765,774$ 24,098,174$ 23,857,654$25,413,898$ 26,484,216
11,554,94912,269,152 14,377,60214,270,89914,147,728 14,899,624
10,104,50010,743,862 9,862,70510,859,21512,544,80313,944,027
2,252,404 2,411,827 2,300,4642,252,2532,621,0353,035,844
106,024 204,346 380,268563,8681,228,7592,414,593
458,770 164,004 766,683601,136251,508251,400
- - -- - -
(371,039)(1,504,570) (795,104)(2,397,175)(1,922,963) 360,864
44,030,70345,054,395 50,990,79250,007,85054,284,76861,390,568
8,624 25,440 44,038110,828152,557 360,285
100,795 - -- - -
- - -- -(12,350)
371,039 1,504,570 795,1042,397,1751,922,963(360,864)
480,458 1,530,010 839,1422,508,0032,075,520(12,929)
$ 44,511,161$ 46,584,405$ 51,829,934$ 52,515,853$56,360,288$ 61,377,639
$ 3,493,160$ 11,748,627$ 10,128,763$5,570,041$ 4,246,005$ 17,235,103
(271,828) 631,277 312,6941,481,5101,463,945(103,784)
$ 3,221,332$ 12,379,904$ 10,441,457$7,051,551$ 5,709,950$ 17,131,319
DRAFT 02.25.2020
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CITY OF LA PORTE
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
2010201120122013
General Fund
Nonspendable$ 135,162$ 138,607$ 94,401$ 125,190
Committed - - - 3,500,000
Assigned 132,558 95,923 30,003 103,690
Unassigned 11,836,769 19,118,624 23,840,153 23,856,087
Total General Fund
$ 12,104,489$ 19,353,154$ 23,964,557$ 27,584,967
All Other Governmental Funds
Restricted$ 4,420,190$ 14,084,212$ 12,572,942$ 12,193,956
Committed24,019,1409,078,7246,553,4175,585,628
Unassigned - - (30,832) -
Total All Other
Governmental Funds
$ 28,439,330$ 23,162,936$ 19,095,527$ 17,779,584
DRAFT 02.25.2020
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Table 3
201420152016201720182019
$ 88,954102,775$ 89,165$ 102,058$ 122,784$ 163,083$
7,000,0008,500,000 6,000,000 2,000,000 - -
78,182 257,147 4,439,879 297,359 420,854 134,391
21,294,383 25,216,54729,385,82740,500,14746,763,43557,312,783
$29,975,340$32,562,648$39,914,871$42,899,564$ 47,307,073$ 57,610,257
$14,177,078$24,421,383$24,860,811$34,573,658$ 41,275,328$ 44,362,333
2,961,8491,916,6082,977,6764,555,870 -
(790) - - - - -
$17,138,137$26,337,991$27,838,487$39,129,528$ 41,275,328$ 44,362,333
DRAFT 02.25.2020
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CITY OF LA PORTE
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
2010201120122013
Revenues
Taxes 36,681,503$ 35,760,570$ 38,352,720$ 39,834,904$
Licenses and permits476,478 312,962465,052 368,130
Fines and forfeitures1,802,785 1,723,5901,758,101 1,886,763
Charges for services6,083,767 5,680,4165,957,389 6,008,845
Intergovernmental988,532 917,2061,239,434 568,052
Interest262,993 193,301128,939 76,027
Miscellaneous125,142 241,670 36,354 425,845
Total Revenues
46,421,200 44,829,71547,937,989 49,168,566
Expenditures
General government9,787,606 10,288,50210,461,877 11,043,438
Public safety14,611,737 15,688,30515,751,731 16,321,608
Public works2,818,921 3,118,0743,438,629 3,247,404
Health and sanitation2,232,848 2,182,1842,225,768 2,244,341
Culture and recreation5,048,448 5,313,5235,260,591 5,226,886
Debt service:
Principal1,755,000 1,740,0002,170,000 2,365,000
Interest1,387,566 1,871,3711,519,769 1,385,204
Bond issuance cost200,000 - 150,897 -
Capital outlay10,843,496 8,713,8278,583,249 5,499,508
Total Expenditures
48,685,622 48,915,78649,562,511 47,333,389
(Deficiency) of Revenues
(Under) Expenditures
(2,264,422) (4,086,071)(1,624,522)
1,835,177
Other Financing Sources (Uses)
General obligation bonds issued6,265,000 - - -
Refunding bonds issued4,295,000 - 9,435,000 -
Certificate obligation bonds issued - - - -
Premium on refunding bonds issued224,008 - 364,013 -
Premium on certificate obligations - - - -
Payment to refunding bond escrow agent(4,409,763) - (9,638,626) -
Transfers in9,158,123 4,248,1402,710,677 3,883,920
Transfers out(10,545,233) (5,011,924)(2,643,894) (3,629,974)
Sale of capital assets 5,024 6,822,1261,941,346 215,342
Insurance recoveries - - - -
Total Other Financing Sources (Uses)
4,992,159 6,058,3422,168,516 469,288
Net Change in Fund Balances
$2,727,737$ 1,972,271$543,994$ 2,304,465
Debt service as a percentage of noncapital expenditures
8.3%9.0%9.0%9.0%
DRAFT 02.25.2020
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Table 4
201420152016201720182019
$ 46,155,06943,837,240$ 50,376,219$ 51,574,722$ 54,591,769$ 58,567,086$
497,7561,346,552 596,451 535,741668,8081,344,447
1,790,849 1 ,953,698 1,996,073 1 ,965,249 2 ,092,4193,269,711
6,305,127 6 ,994,772 6,555,228 6 ,069,248 5 ,953,5816,062,901
1,572,360 3 ,195,238 1,024,0971,077,893893,0061,129,654
96,409 184,029349,551 531,369 1 ,157,4432,215,142
261,204 398,872728,390 517,828 298,792 451,362
54,360,945 60,228,23061,626,009 62,272,050 65,655,818 73,040,303
13,828,179 11,953,16611,706,047 13,301,718 14,486,950 11,641,780
17,428,040 17,698,81818,323,687 18,873,276 18,377,804 19,892,523
3,432,583 2 ,916,113 3,028,953 4 ,161,399 4 ,429,3785,012,265
2,334,184 2 ,457,565 2,644,295 2 ,730,308 2 ,871,1142,977,561
5,440,724 5 ,727,700 5,848,613 5 ,998,452 6 ,332,0617,220,144
2,640,000 4 ,625,582 4,281,085 4 ,178,629 3 ,370,0006,744,168
1,217,8831,589,644 1,451,075 1 ,385,122 1 ,156,9231,180,817
153,884 - - - -
5,446,287 6 ,331,893 4,439,319 3 ,840,207 3 ,428,8342,895,238
51,921,764 53,300,48151,723,074 54,469,111 54,453,064 57,564,496
2,439,181 6 ,927,749 9,902,935 7 ,802,939 11,202,754 15,475,807
- - 10,635,000- - -
9,300,000-3 ,165,000 - - -
- 7 ,770,000 - - - -
608,166-403,795 - - -
- 365,502 - - - -
(9,749,587)-(3,490,716) - - -
3,911,990 3 ,069,4742 ,851,124 3 ,684,995 5 ,200,3045,166,476
(4,761,324) (6,556,417)(3,979,419)(7,849,825)(9,849,749)(7,252,094)
500 - - 2 ,625 - -
-210,854 - - - -
(690,255) 4 ,859,413(1,050,216) 6 ,472,795(4,649,445)(2,085,618)
$ 1,748,926$ 11,787,162$ 8,852,719$ 14,275,734$ 6,553,309$ 13,390,189
8.3%13.2%12.1%10.8%8.6%14.9%
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Table 5
CITY OF LA PORTE
ASSESSED VALUE AND ESTIMATED VALUE
OF TAXABLE PROPERTY
Last Ten Fiscal Years
Assessed Value
Fiscal YearLess OtherTotal TaxableTotalEstimatedas a Percent of
EndedReal PersonalExemptions &AssessedDirectActual TaxableActual Taxable
June 30PropertyPropertyAbatementsValueTax RateValueValue
20102,261,046,846$ 582,963,159$ 515,111,496 2,328,898,509$ 0.71000 2,328,898,509$ 100%
20112,055,914,368 672,621,147 514,928,797 2,213,606,718 0.71000 2,213,606,718 100%
20122,079,843,021 720,515,678 535,441,621 2,264,917,078 0.71000 2,264,917,078 100%
20132,080,199,179 797,558,553 536,721,284 2,341,036,448 0.71000 2,341,036,448 100%
20142,176,582,621 986,494,475 590,232,231 2,572,844,865 0.71000 2,572,844,865 100%
20152,626,580,963 745,093,978 617,133,762 2,754,541,179 0.71000 2,754,541,179 100%
20162,692,041,032 978,850,207 629,133,265 3,041,757,974 0.71000 3,041,757,974 100%
20173,025,879,671 880,297,401 751,959,455 3,154,217,617 0.71000 3,154,217,617 100%
20183,270,392,733 830,253,210 814,706,643 3,285,939,300 0.71000 3,285,939,300 100%
20193,376,299,841 824,946,153 800,377,875 3,400,868,119 0.71000 3,400,868,119 100%
Source -
Harris County Certified Tax Rolls and Corrections.
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CITY OF LA PORTE
PROPERTY TAX RATES -
DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
2010201120122013
City of La Porte by fund:
General0.619000.605000.605000.64000
Debt service0.091000.105000.105000.07000
Total Direct Rates0.710000.710000.710000.71000
Harris County Flood Control District0.029230.028090.028090.02827
Harris County 0.388050.391170.400210.41455
Port of Houston Authority0.020540.018560.019520.01716
Harris County Board of Education0.006580.006580.006620.00636
Hospital District0.192160.192160.182160.17000
La Porte ISD1.325001.355001.330001.33000
San Jacinto Jr. College District0.176280.185600.185600.18560
2.847842.887162.862202.86194
Total Direct and Overlapping Rates
Tax rates per $100 of assessed valuation
Source: Harris County Appraisal District
DRAFT 02.25.2020
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Table 6
201420152016201720182019
0.614000.605000.605000.605000.605000.60500
0.096000.105000.105000.105000.105000.10500
0.710000.710000.710000.710000.710000.71000
0.027360.027330.028290.028310.028780.02792
0.417310.419230.416560.418010.418580.40713
0.015310.013420.013340.012560.011550.01074
0.006000.005400.005200.005200.005190.00500
0.170000.170000.171790.171100.171080.16591
1.330001.450001.420001.380001.380001.28000
0.185600.175780.182380.183340.179330.17817
2.861582.971162.947562.908522.904512.78487
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141
Table 7
CITY OF LA PORTE
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
20192010
% of% of
Taxable Total TaxableTaxable Total Taxable
Assessed AssessedAssessed Assessed
TaxpayerValueRankValueValueRankValue
2019
HRUS Underwood LLC$ 160,217,83214.71%
Liberty Property Limited Partnership87,953,17222.59%
DNOW LP54,602,93331.61%
Equistar Chemicals LP46,062,69141.35%
Oxy Vinyls LP42,349,06951.25%
INEOS USA LLC37,999,78061.12%
Dow Chemical Co.25,976,10270.76%
Liberty Property LTD Partnership24,906,91280.73%
Ashland Industries Europ, GmbH24,452,97990.72%
Centerpoint Energy Hou Ele22,955,068100.67%
2010
Concoco Phillips Co.$ 63,702,82812.73%
Oxy Vinyls LP49,177,14922.11%
Equistar Chemicals LP48,220,92632.07%
Granite Underwood Dist Ctr LP46,366,21441.99%
Wilson Supply44,964,90351.93%
Underwood Distribution Ctr.38,895,00061.67%
Ineos USA LLC38,042,28071.63%
Dow Chemical28,930,68381.24%
PPG Industries Inc26,768,47291.15%
Total Petrochemicals24,500,733101.05%
Subtotal527,476,53815.51%409,569,18817.58%
Other Taxpayers2,873,391,58184.49%1,920,357,53982.42%
Total
$ 3,400,868,119100.00%2,329,926,727$ 100.00%
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142
Table 8
CITY OF LA PORTE
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected within the
Fiscal YearTaxes leviedFiscal Year of the LevyCollectionsTotal Collections to Date
Endedfor% ofin Subsequent% of
September 30Fiscal YearAmountLevyYearsAmountLevy
201016,542,483$ 16,309,818$ 98.6%$ 2 08,261$ 16,518,07999.9%
201115,871,49815,599,93098.3%265,320 15,865,250100.0%
201216,080,91115,860,66498.6%224,600 16,085,264100.0%
201316,621,36116,518,20799.4%171,050 16,689,257100.4%
201418,267,20118,090,45699.0%231,514 18,321,970100.3%
201519,514,40219,304,48698.9%45,593 19,350,07999.2%
201621,596,46321,299,84898.6%188,670 21,488,51899.5%
201722,269,06322,109,02999.3%(88,541) *22,020,488 98.9%
201823,125,07222,798,48898.6%3,746 22,802,23498.6%
201923,814,36723,722,01299.6% 23,722,012- 99.6%
* Shows a negative amount due to the refund of taxes.
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Table 9
CITY OF LA PORTE
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental ActivitiesBusiness-type Activities
Fiscal YearGeneralCertificatesTotal% of
EndedObligationofLimitedRevenueOther*PrimaryPersonalPer
September 30BondsObligationTax BondsBondsObligationsGovernmentIncome Capita
2010$ 11,665$ 26,350$ 4,050$ -$ 5,660$47,7250.006%$ 1,298
201110,94025,6053,780 -4,81345,1380.005%1,322
201217,05020,1501,620 -3,94542,7650.005%1,212
201316,87518,9051,350 -3,11740,2470.004%1,165
201423,72610,845540 -2,20837,3190.004%1,072
201521,22017,230- -93039,3800.004%891
201622,81512,335- -32035,4700.003%991
201721,09011,210- --32,3000.003%1,086
201818,89520,670- --39,5650.004%1,119
201916,42519,405- --35,8300.003%1,011
Note:
Details regarding the City's outstanding debt can be found in the note to the financial statements.
See Demographic and Economic Statistics for personal income and population data.
*
Includes premium on bonds.
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145
Table 10
CITY OF LA PORTE
RATIOS OF NET GENERAL BONDED DEBT TO TAXABLE VALUE
GENERAL BONDED DEBT PER CAPITA,
AND TAXABLE VALUE OF ALL PROPERTY
Last Ten Fiscal Years
Ratio of
Fiscal YearGeneralLessBonded Debt Percentage of
EndedTaxObligationCertificates ofDebt ServiceNet Bondedto AssessedPersonal
September 30YearBondsObligationFundDebtValueIncome (2)Per Capita (2)
20102009$ 15,715$ 26,350$ 2,151$ 39,9141.7%0.005%$ 965
20112010 14,720 25,605 3,118 37,2071.7%0.004% 1,152
20122011 18,670 20,150 3,113 35,7071.6%0.004% 1,090
20132012 18,22518,905 2,490 34,6401.5%0.004% 1,165
20142013 24,26610,845 2,769 32,3421.3%0.003% 1,072
20152014 21,22017,230 3,161 35,2891.3%0.004% 1,006
20162015 22,81512,335 3,541 31,6091.0%0.003% 899
20172016 21,09011,2103,88328,417 0.9%0.003% 810
20182017 18,89520,6704,39835,167 1.0%0.003% 994
2019201816,42519,4054,52531,3051.0%0.003% 884
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 the demographic and economic statistics table.
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Table 11
CITY OF LA PORTE
Direct and Overlapping Governmental Activities Debt
As of September 30, 2019
Estimated
EstimatedShare of
Debt PercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Debt repaid with property taxes
Harris County$ 2,042,497,1250.67%13,684,731$
Harris County Department of Education 6,320,0000.67% 42,344
Harris County Flood Control District 83,075,0000.67% 556,603
Harris County Toll Road 0.67%- -
Harris County Hospital District 57,300,0000.67% 383,910
La Porte I. S. D. 319,985,00041.45%132,633,783
Porte of Houston Authority 0.67%3,978,154593,754,397
San Jacinto Jr. College District491,672,707 0.67%31,073,715
Total Net Overlapping Debt3,594,604,229$ 182,353,240
City of La Porte Direct Debt*
$ 35,830,000 35,830,000
Total Direct and Overlapping Debt
$ 218,183,240
*Approximately $19,668,027 of the city's outstanding debt is self supporting.
Source: Texas Municipal Reports
Percentage are based on total property values.
Source
: Texas Municipal Reports
Percentages are based on total property values.
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147
Table 12
CITY OF LA PORTE
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal YearPer Capita
t
EndedPersonalPersonalMedianSchoolUnemploymen
September 30Population (1)Income (2)Income (2)Age (3)Enrollment (4)Rate (5)
2010 33,800$ 853,355,716$ 25,604 7,781338.2%
2011 34,138 880,399,908 2 6,172 3 37,7329.0%
2012 35,280 878,708,768 2 5,952 3 47,7396.3%
2013 34,553 917,811,538 2 6,894 3 67,7296.3%
2014 34,813 937,182,978 2 7,186 3 67,6345.0%
2015 35,074 1,001,483,958 2 8,823 3 77,6484.6%
2016 35,148 1,052,095,094 3 0,127 3 77,7535.8%
2017 35,086 1,052,095,094 3 0,127 3 77,7135.8%
2018 35,371 1,052,095,094 3 0,127 3 77,5754.6%
2019 35,423 1,098,608,922 3 1,014 3 87,3404.1%
N/A - information not available.
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
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148
Table 13
CITY OF LA PORTE
Principal Employers
Current Year and Ten Years Ago
2019
2009
PercentagePercentage
of Total Cityof Total City
EmployerEmployeesEmploymentEmployerEmployeesEmployment
Equistar Chemicals1,6358.66%La Porte ISD1,2304.47%
La Porte ISD1,0615.62%Rockwood Service Corp.7002.55%
Dupont Chemical5452.89%Longview Inspection Corp.6642.41%
J V Piping4402.33%Quest Tru TEC6362.31%
Total Petrochemicals USA4092.17%Oxy Vinyls, LP5301.93%
City of La Porte3892.06%City of La Porte3811.39%
Ineos3852.04%Ineos3501.27%
Total Safety US Inc3501.85%Equistar Chemicals, LP3341.21%
Kateon Natie Houston3501.85%Sulzer Hickham3301.20%
CCC Group Inc3001.59%Air Liquide1700.62%
Total5,86431.06%Total5,32519.36%
Source: CenterPoint Energy
Note: This list includes companies within the City limits of La Porte and within the industrial districts.
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CITY OF LA PORTE
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION
Last Ten Fiscal Years
Full-time Equivalent Employees as of September 30
Function20102011201220132014
General government7990908888
Public safety144144151152154
Public works3232323030
Health and sanitation2224242323
Culture and recreation4646464242
Water services2525252524
Sewer services2020202020
Golf course*12- - - -
Total
380381388380381
Source: City of La Porte Human Resource Department
*2011 thru 2019 are blank due to funding golf course workers out of the General Fund.
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150
Table 14
Full-time Equivalent Employees as of September 30
20152016201720182019
8989899089
154154154155155
3030333535
2322232323
4244424242
2525252525
2020202020
- - - - -
383384386390389
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CITY OF LA PORTE
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function20102011201220132014
Police
Physical arrests2,538 2,354 2,311 2 ,205 2 ,032
Tickets processed16,603 14,619 13,221 13,861 14,151
Fire
Number of calls answered1,559 1,483 1,195 1 ,219 1 ,262
Inspections 690 725 812 950 1 ,020
Highways and streets
Street resurfacing (linear feet)38,365 60,472 69,580 13,520 11,183
Potholes repaired1,236 465 1 ,173 271 165
Sanitation
Cubic yards of garbage collected 27,96129,642 42,589 30,625 54,812
Cubic yards of trash collected 45,77843,368 54,641 32,137 40,701
Culture and recreation
Fitness center admissions 64,98978,118 64,279 64,587 90,765
Water
Number of water meters 12,06112,015 12,129 12,234 12,321
Average daily consumption 3.94.64.343.8
(millions of gallons)417666311379411
Water main breaks
Wastewater
Average daily sewage treatment 3.72.83.32.72.6
(thousands of gallons)
Golf Course
Number of paid rounds played 34,84831,271 34,038 32,257 32,741
Source -
Various City departments.
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152
Table 15
20152016201720182019
2,152 2,399 1,826 1,968 2,097
14,31613,231 11,900 15,605 16,695
1,378 1,356 1,532 1,536 1,636
383 1,025 8 52 5 50 1,102
11,17222,172 18,602 13,015 20,332
342 236 1 18 2 31 134
50,94526,458 48,716 56,406 55,924
31,51840,569 44,733 36,174 3 7,611
67,794 102,77896,011 90,58387,804
12,43112,523 12,591 12,682 12,870
3.93.83.73.83.564
200217199220173
3.83.83.53.9 4
29,96526,794 26,840 26,006 25,075
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CITY OF LA PORTE
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function20102011201220132014
Public safety
Police station11111
Police officers7575747474
Reserve officers22262
Fire stations44444
Sanitation
Collection trucks1414121212
Highways and streets
Streets (miles)126126125297297
Streetlights2,3872,4152,4152,4152,415
Traffic signals55666
Culture and recreation
Parks acreage356356188188188
Parks acreage2121222222
Swimming pools55555
Recreation centers44332
Senior center11111
Water and sewer
Water mains (miles) 180181182183184
Fire hydrants 1,1791,1861,1991,2261,256
Sanitary sewers (miles) 191192192192192
Storm sewers (miles) 959760112112
Source
- Various City departments.
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154
Table 16
20152016201720182019
11111
7675787979
33241
44444
1417161614
272273273273274
2,4152,4152,4152,9052,884
77777
188188188188188
2222222223
55555
22222
11111
185187187189192
1,2651,2761,2911,3141,349
193194194194195
115115116116118
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DRAFT 02.25.2020
156
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: March 9, 2020
Source of Funds: N/A
Requested By: Michael Dolby, Director
Department: Finance
Account Number: N/A
Amount Budgeted: N/A
Report Resolution Ordinance
Amount Requested: N/A
Exhibits: Matrix, Evaluation Form and Performance Records
Budgeted Item: Yes No
SUMMARY
The Request for Proposal (RFP #20503) in relation to Delinquent Ad Valorem
Tax Collections Services was advertised in the Bay Area Observer on
December 19 & 26, 2019 and The
City received proposals from two (2) vendors, Linebarger Goggan Blair & Sampson,
LLP (Linebarger) and Perdue Brandon
Fielder Collins & Mott LLP (Perdue). The proposals were evaluated using an approved
matrix. Each vendor were evaluated based on:
1. Demonstrated results of the performance of the firm for delinquent tax
collections. Based on a 3-year (2016-2019) tax year summary for 4 surrounding
existing municipal clients of delinquent tax collections that have been achieved
This criteria evaluates collection records and evaluates delinquent collections,
excluding penalties and interest, as a percentage of total delinquent taxes
receivable. (max 30 points)
2. Proven experience in the field of delinquent property tax collections. (max 25
points)
3. Experience
collection of delinquent taxes. (max 20 points)
4. Historical performance levels and demonstrated capabilities, which focuses on
litigation records. These are factors based on the percentage of primary suits
filed from July 1, 2016 to June 30, 2019 from four (4) surrounding existing
municipal clients. Additionally, the historical performance highlights the number
delinquent accounts and collect taxes prior to a suit being filed. (max 20 points)
5. Clarity of proposal and supporting data. (max 5 points)
Though both vendors scored the maximum allowed in areas #2 & #3, there was
substantial differences in areas #1 & #4, with Linebarger scoring a total 70 points and
, while Perdue
scored a total 100 points. Based upon the evaluation of the proposals, staff is
recommending Council award RFP #20503 for the Delinquent Ad Valorem Tax
Collection Services to Perdue.
RECOMMENDED MOTION
I move to award RFP #20503 for Delinquent Ad Valorem Tax Collection Services
to Perdue Brandon Fielder Collins & Mott LLP.
Approved for the City Council meeting agenda
Corby D. Alexander, City Manager Date
TheCitywillselectafirmbasedupontheoutcomeofacommitteeevaluationofproposalsusingthe
followingevaluationcriteria:
1.Demonstratedresultsoftheperformanceofthefirmfordelinquenttaxcollections30points
Basedonathreeyear(201201taxyears)summaryforfoursurroundingexistingmunicipalclientsof
delinquenttaxcollectionsthathavebeenachieved
60%andabovecollected30pts
50%60%collected20pts
50%40%collected10pts
40%orbelowcollected0pts
2.Provenexperienceinthefieldofdelinquentpropertytaxcollections.25points
30+years=25pts
25+years=20pts
20+years=15pts
15+years=10pts
Lessthan15=0
3.Experienceofpersonnelassignedtotheaccountinconnectionwiththecollectionofdelinquent
taxes.20points
Lawyersassignedwith20+yearsofexperience20pts
Lawyersassignedwith10+yearsofexperience15pts
Lawyersassignedwith5+yearsofexperience10pts
Lawyersassignedwithbelow5yearsofexperience0pts
4.Historicalperformancelevelsanddemonstratedcapabilities
(FactorsforthiscriteriawillbebasedfromJuly1,201
June30,201fromfoursurroundingexistingmunicipalclients)
Firmwithhighest
20pts
Firmwithsecondhighest
15pts
Firmwiththirdhighest
10pts
5.Clarityofproposalandsupportingdata5points
Allrequiredinformationsubmitted5pts
Partialrequiredinformationsubmitted0pts
CITY OF LA PORTE
RFEVALUATION FORM
RFP 20503 DELINQUENT TAX COLLECTION SERVICES
Vendor Name:Linebarger Goggan Blair & Sampson, LLP
CriterionScore
Maximum Points
1.) Demonstrated results of the performance of the firm for
delinquent tax collections. Based on a three year (2016-2019 tax
10
30
years) summary for four surrounding existing municipal clients of
delinquent tax collections that have been achieved.
2.) Proven experience in the field of delinquent property tax
25
25
collections.
3.) Experience of personnel assigned to the City's account in
20
20
connection with the collection of delinquent taxes.
4.) Historical performance levels and demonstrated capabilities.
(Factors for this criteria will be based on the percentage of
15
20
primary suits filed from July 1, 2016- June 30, 2019 from four
surrounding existing municipal clients)
5.) Clarity of proposal and supporting data.
5
Totals:
Signature:Cherell Daeumer, Purchasing Manager
S:\\Purchasing\\2020 FY\\RFP's\\#20503 Delinquent Tax Collection Services\\Evaluations\\RFQ Evaluation Form
CITY OF LA PORTE
RFEVALUATION FORM
RFP 20503 DELINQUENT TAX COLLECTION SERVICE
Vendor Name:Perdue Brandon Fielder Collins and Mott LLP
CriterionScore
Maximum Points
1.) Demonstrated results of the performance of the firm for
delinquent tax collections. Based on a three year (2016-2019 tax
30
30
years) summary for four surrounding existing municipal clients of
delinquent tax collections that have been achieved.
2.) Proven experience in the field of delinquent property tax
25
25
collections.
3.) Experience of personnel assigned to the City's account in
20
20
connection with the collection of delinquent taxes.
4.) Historical performance levels and demonstrated capabilities.
(Factors for this criteria will be based on the percentage of suits
20
20
filed from July 1, 2016- June 30, 2019 from four surrounding
existing municipal clients)
5.) Clarity of proposal and supporting data.
5
5
Totals:100
Signature:Cherell Daeumer, Purchasing Manager
S:\\Purchasing\\2020 FY\\RFP's\\#20503 Delinquent Tax Collection Services\\Evaluations\\RFQ Evaluation Form
PERFORMANCE RECORD
PERDUE BRANDON FIELDER COLLINS & MOTT LLP
July 1, 2016 - July 1, 2017 -July 1, 2018 -
June 30, 2017June 30, 2018June 30, 20193 Year
PearlandFriendswoodRosenbergBellaireAverage PearlandFriendswoodRosenbergBellaireAveragePearlandFriendswoodRosenbergBellaireAverage Average
Collection Records
Number of Accounts2203998146060313162330975138061813262546943154766514251356
Beginning Delinquent Taxes Receivable for all
delinquent tax years on July 1. $1,304,127$493,172$308,692$262,489$592,120$1,515,875$481,119$314,400$381,178$673,143$1,659,595$489,894$363,900$393,040$726,607$663,957
Total Delinquent Taxes Collected$631,096$366,526$189,492$156,252$335,842$848,975$325,681$212,618$223,251$402,631$861,342$326,162$216,371$240,755$411,158$383,210
Total Penalties and Interest Collected$216,981$88,328$78,749$35,300$104,840$272,435$82,132$75,192$70,601$125,090$255,403$76,873$81,950$61,249$118,869$116,266
Collection Percentage (DTC/DTR) for all
delinquent tax years48.39%74.32%61.39%59.53%60.91%56.01%67.69%67.63%58.57%62.47%51.90%66.58%59.46%61.25%59.80%61%
Litigation Records
Suits Filed37193372432113882266659223828
Primary Suits Filed31192752125112721665649153424
Intervenor Suits606247011661010755
Number of Demand Letters19051610417491668598
Dismissals17723313187292141572281313
Precentage of Primary Suits Filed83.78%100.00%81.82%71.43%84.26%78.13%100.00%71.05%25.00%68.54%98.48%100.00%83.05%68.18%87.43%80%
PBFC&M
PERFORMANCE RECORD
LINEBARGER GOGGAN BLAIR & SAMPSON, LLP
July 1, 2016 - July 1, 2017 -July 1, 2018 -
June 30, 2017June 30, 2018June 30, 20193 Year
League CityKemahAverage AverageAverage Average
DickinsonGalvestonDickinsonGalvestonLeague CityKemahDickinsonGalvestonLeague CityKemah
Collection Records
Number of Accounts1097370123342171837112438792440214191411843535237622818311861
Beginning Delinquent Taxes Receivable(DTR) for
all delinquent tax years on July 1.
$326,000$2,191,891$1,323,814$70,189$977,974$343,015$2,223,746$1,513,476$68,775$1,037,253$391,784$2,953,200$1,815,952$46,939$1,301,969$1,105,732
Total Delinquent Taxes Collected(DTC)$117,346$1,423,005$810,101$43,968$598,605$138,839$716,276$436,853$41,293$333,315$153,400$1,610,278$677,839$14,889$614,102$515,341
Total Penalties and Interest Collected$ 28,194$204,572$98,982$4,766$84,129$40,525$169,676$58,206$4,031$68,110$29,267$222,705$118,492$2,391$93,214$81,817
Collection Percentage (DTC/DTR) for all
delinquent tax years
36.00%64.92%61.19%62.64%56.19%40.48%32.21%28.86%60.04%40.40%39.15%54.53%37.33%31.72%40.68%46%
Litigation Records
Suits Filed102325165161524618384148253293696105113
Primary Suits Filed561156686135136681163432195358068
Intervenor Suits11233413200373151923741614
Number of Demand Letters98621571023324112310141489698210853426137664894636870
Dismissals0000000000000000
Precentage of Primary Suits Filed54.90%35.38%40.00%50.00%45.07%76.09%74.32%80.95%78.57%77.48%81.13%74.74%76.81%83.33%79.01%67%
LGB&S
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: March 9, 2020
Source of Funds: 003- Utility CIP
Requested By: Ray Mayo, Director
Department: Public Works
Account Number: 003-7085-533-5130
Amount Budgeted: $525,000
Report Resolution Ordinance
Amount Requested: $302,500
Exhibits: Bid Tabulation for Bid 20007, Access Report 20007, Letter
Budgeted Item: Yes No
of Recommendation and Bid from Maguire Iron
SUMMARY
Sealed Bid #20007- Lomax Elevated Water Storage Tank Rehabilitation was opened and
read on February 6, 2020. Bid requests were advertised in the Bay Area Observer, posted
on the City of La Porte website, Public Purchase and Dunham Engineering website.
Ninety-six (96) vendors were notified with thirty-four (34) downloading the bid documents,
and fifteen (15) contractors returning bids.
Maguire Iron, Inc. of Sioux Falls, South Dakota submitted the lowest base bid in the
th
$14,000. These are similar to the logos currently on the 4 Street water tower. The
alternate paint system ($2,000 deduct) proposed by the contractor was not accepted. It
was not considered an equal to the paint system detailed in the specifications. Staff is
requesting a contingency amount of $27,500, for a total authorization of $302,500,
approximately 58% of the budgeted amount.
The design consultant, Dunham Engineering, Inc. has submitted a letter of
recommendation for Maguire Iron Inc. It is not uncommon for out-of-state bidders to bid
this type of work.
This water storage tank was constructed in 1991. The tank was last rehabilitated in
2004. The tank is in good structural condition; however, the interior coating is now in
need of replacement. The project will consist of sandblasting and replacement of the
interior coating, minor welding repairs, over-coating of the exterior and cleaning of the
concrete pedestal. The term of the project is 120 days. The tank will be out of service
for the entirety of the project. The project will be conducted during a low-usage period
to minimize any negative impact to the water system. Proper routine maintenance
increases the life of the structure. Delaying the maintenance will lead to increased repair
costs and could lead to water quality issues.
RECOMMENDED MOTION
I move to award Bid 20007 to Maguire Iron, Inc. and authorize the City Manager
to execute a contract with Maguire Iron, Inc. in the amount of $275,000 plus a
project contingency of $27,500 for a total authorization of $302,500.
Approved for the City Council meeting agenda
Corby D. Alexander, City Manager Date
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: March 9, 2020
Source of Funds: 003- Utility CIP
Requested By: Ray Mayo, Director
Department: Public Works
Account Number: 003-7085-533-5120
Amount Budgeted: $270,000
Report Resolution Ordinance
Amount Requested: $176,000
Exhibits: Bid Tabulation for Bid 20008, Access Report 20008, Letter
Budgeted Item: Yes No
of Recommendation and Bid from W.W. Payton Corporation
SUMMARY
Sealed Bid #20008 - Water Tank Replacement for Hillridge Water Plant was opened and
read on February 6, 2020. Bid requests were advertised in the Bay Area Observer, posted
on the City of La Porte website, Public Purchase and Dunham Engineering website. Fifty-
six (56) vendors were notified with twenty-three (23) downloading the bid documents, and
two (2) contractors returning bids.
W.W. Payton Corporation submitted the lowest bid in the amount of $160,000. Staff is
requesting a contingency amount of $16,000, for a total authorization of $176,000,
approximately 65% of the budgeted amount. The design consultant, Dunham
Engineering, Inc. has submitted a letter of recommendation for W.W Payton Corporation.
The existing tank is over 40 years old and has exceeded its useful life. The term of this
contract is 180 days. Following award, the tank panels will be ordered, fabricated,
coated and then shipped to the site. This booster plant will then be taken out of service
to accomplish demolition of the existing tank, preparation of the foundation and
construction of the new tank. Actual construction time will be closer to 60 days. We
maintain redundant facilities and there will be no service interruption. The project will
be conducted during a low-use period to minimize any negative impact to the water
system. Delaying this replacement will lead to increased maintenance costs.
RECOMMENDED MOTION
I move to award Bid 20008 to W.W. Payton Corporation and authorize the City
Manager to execute a contract with W.W. Payton in the amount of $160,000 plus
a project contingency of $16,000, for a total authorization of $176,000.
Approved for the City Council meeting agenda
Corby D. Alexander, City Manager Date
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: March 9, 2020
Requested By: Source of Funds: N/A
Ian Clowes, City Planner
Department:
Planning & Development
Account Number: N/A
Amount Budgeted: N/A
Report Resolution Ordinance
Amount Requested: N/A
Exhibits: Ordinance 2020-3782, Deed, Area Map and
Budgeted Item: Yes No
Appraisal Summary
SUMMARY
The City received an application from Jana Gutierrez, on behalf of Will Crenshaw of
Crenshaw Real Properties II, LTD to vacate, abandon and close a portion of two (2)
separate 60 foot wide street rights of way, adjacent to the property legally described as
Tracts A, B, C,1, Block 8, Lots 5-32, Block 7C, Lots 1-30, Block 7B, Nebraska Syndicate
and Lots 1-32, Block 352, Lots 1-32, Block 349 Town of La Porte, located along Barbours
thst
Cut Blvd. between N. 8 and N 1 Streets. See the area map for details.
The abandonment process requires that all adjacent property owners either participate
in the closure or sign away rights to their portion of the proposed closure. Frontier Port
Properties, the only other adjacent property owner, decided to participate in Mr.
nd
and will be purchasing half of the N. 2 St. right of way.
The total area of the requested closure equals 98,400 square feet. Staff have determined
that there are no City or franchised utilities existing within the rights of way. Comcast,
AT&T, and Centerpoint, the three franchise utility companies, have all provided letters of
no objection to the proposed right of way closure.
In accordance with Sections 62-Ordinances, the City obtained
an appraisal of the subject rights of way to establish fair market value. The appraisal
report established a value of $2.50 per square foot. The applicant has submitted closing
fees in the amount of $246,000 (98,400 sq. ft. x $2.50) to the City. These funds are being
held in escrow subject to final consideration and action by Council.
RECOMMENDED MOTION
I move that the Council adopt Ordinance 2020-3782 for street and alley closure request #19-
ndth
25000001, vacating and abandoning a portion of two the N 2 St and N 4 St. rights of way,
adjacent to the property legally described Tracts A, B, C,1, Block 8, Lots 5-32, Block 7C, Lots 1-
30, Block 7B, Nebraska Syndicate and Lots 1-32, Block 352, Lots 1-32, Block 349 Town of La
Porte, and authorize the City Manager to execute a deed to the adjacent property owner for the
subject right of way.
Approved for the City Council meeting agenda
Corby D. Alexander, City Manager Date
ORDINANCE NO. 2020-3782
AN ORDINANCE VACATING, ABANDONING AND CLOSING THE PORTIONS OF THE N 2ND
STREET AND N 4TH STREET RIGHTS-OF-WAY SITUATED BETWEEN BARBOURS CUT
BOULEVARD AND THE H STREET RIGHT-OF-WAY, AND AUTHORIZING THE EXECUTION
AND DELIVERY OF A DEED TO THE ADJOINING LANDOWNERS; FINDING COMPLIANCE
WITH THE OPEN MEETINGS LAW; CONTAINING A SEVERABILITY CLAUSE; CONTAINING A
SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE HEREOF.
WHEREAS, the City Council of the City of La Porte has been requested by the record owners of the properties
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abutting the portions of the N. 2 and N. 4 Street rights-of-way situated between Barbours Cut Boulevard and
the H Street right-of-way, to vacate, abandon and close said rights of way, and;
WHEREAS, the City Council of the City of La Porte has determined and does hereby find, determine, and declare
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that the portions of the N. 2 and N. 4 Street rights-of-way situated between Barbours Cut Boulevard and the
H Street right-of-way are not suitable, needed, or beneficial to the public as a public road, street, or alley, and the
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closing of the portions of the N. 2 and N. 4 Street rights-of-way situated between Barbours Cut Boulevard and
the H Street right-of-way is for the protection of the public and for the public interest and benefit, and that the
ndth
portions of the N. 2 and N. 4 street rights-of-way situated between Barbours Cut Boulevard and the H Street
right-of-way should be vacated, abandoned, and permanently closed.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. Under and by virtue of the power granted to the City of La Porte under its home rule charter, Chapter
62 of the City of La Porte Code of Ordinances and Chapter 253, Texas Local Government Code, the
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portions of the N. 2 and N. 4 street rights-of-way situated between Barbours Cut Boulevard and
the H Street right-of-way are hereby permanently vacated, abandoned, and closed by the City of La
Porte, such rights-of-way being ncorporated herein, and further
described to wit:
Tract 1
Being a tract of land containing 1.129 acres, being a portion of N 2nd Street, Nebraska Syndicate, recorded in
Volume 83, Page 345, Harris County Deed Records, and being located in the Johnson Hunter League, Abstract
Number 35, Harris County, Texas, and being more particularly described by metes and bounds as follows:
BEGINNING, at a found five eighths inch iron rod with cap stamped ''Cruller 5476", marking the southwest
corner of the tract herein described the southeast corner of a called 5.760 acre tract being recorded in Harris
County Clerk's File No. 20070706635;
THENCE, North 03 degrees 03 minutes 04 seconds West, along the west line of the tract herein described, for a
distance of 820.02 feet to the northeast corner of said called 5.760 acre tract;
2
THENCE , North 86 degrees 55 minutes 55 seconds East, along the north line of the tract herein described, for
a distance of 60.00 feet marking the northeast corner of the tract herein described and in the west line of a called
10.903 acre tract as recorded in Harris County Clerk's File No. 20090354653;
THENCE, South 03 degrees 03 minutes 04 seconds East, along the east line of the tract herein described and the
west line of said called 10.903 acre tract, for a distance of 820.02 feet marking the southwest corner of said called
l 0.903 acre tract;
THENCE, South 86 degrees 55 minutes 55 seconds West, along the south line of the tract herein described, for
a distance of 60.00 feet to the POINT OF BEGINNING.
Tract 2
Being a tract of land containing 1.129 acres, being a portion of N 4th Street, Nebraska Syndicate, recorded in
Volume 83, Page 345, Harris County Deed Records, and being located in the Johnson Hunter League, Abstract
Number 35, Harris County, Texas, and being more particularly described by metes and bounds as follows;
BEGINNING, at a found five eighths inch iron rod with cap stamped ''Cruller 5476", marking the southeast
corner of the tract herein described the southwest corner of a called 2.810 acre tract (Tract 4) being recorded in
Harris County Clerk's File No. 20070706634 and in the north line of Barbours Cut Boulevard (100 foot wide);
THENCE, South 86 degrees 55 minutes 55 seconds West, along the south line of the tract herein described, for
a distance of 60.00 feet to a set five eighths inch iron rod with cap stamped "JM", marking the southeast corner
of a called 5.007 acre tract (Tract 3) as recorded in Harris County Clerk's File No. 20070706634;
THENCE, North 03 degrees 03 minutes 04 seconds West, along the east line of said called 5.007 acre tract, for
a distance of 820.00 feet, to a set five eighths inch iron rod in the south line of H Street (60 foot wide) and
marking the northwest corner of the tract herein described;
THENCE, North 86 degrees 55 minutes 55 seconds East, along the north line of the tract herein described, for a
distance of 60.00 feet to a found three eighths inch iron rod, marking the northwest corner of a called 3.02 acre
tract, as recorded in Harris County Clerk's File No. 20080509130;
THENCE, South 03 degrees 03 minutes 04 seconds East, along the west line of said called 3.02 acre tract and
2.810 acre tract, for a distance of 820.00 feet to the POINT OF BEGINNING.
Section 2. That the abandonment, vacation and closure provided for herein is made and accepted subject to all
present zoning and deed restrictions if the latter exist, and all easements, whether apparent or non-
apparent, aerial, surface or underground.
Section 3. That the abandonment, vacation and closure provided for herein shall extend only to the public right,
title, easement and interest and shall be construed to extend only to that interest which the governing
body for the City of La Porte may legally and lawfully abandon, vacate and close.
Section 4. That the City Manager is hereby authorized to execute and deliver a Deed Without Warranty to the
abutting owner upon completion of all conditions and requirements set forth in this Ordinance.
3
Section 5. That the abutting property owner shall pay all costs associated with procedures necessitated by the
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request to abandon the portions of the N. 2 and N. 4 Street rights-of-way situated between Barbours
Cut Boulevard and the H Street right-of-way, as described in this Ordinance, plus compensation for
the market value of such abandoned property in accordance Chapter 62 of the City of La Porte Code
of Ordinances.
Section 6. 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 was 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 the Open Meetings Law, 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 ordinance and the subject
matter thereof has been discussed, considered, and formally acted upon. The City Council further
ratifies, approves, and confirms such written notice and the contents and posting thereof.
Section 7: All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of the
conflict only.
Section 8. If any part or portion of this ordinance shall be invalid or unconstitutional, such invalidity or
unconstitutionality shall not affect or impair any remaining portions or provisions of the ordinance.
Section 9. This ordinance shall be effective from and after its passage and approval, and it is so ordered.
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PASSED AND APPROVED THIS 9 day of March 2020.
CITY OF LA PORTE, TEXAS
______________________________
Louis R. Rigby, Mayor
ATTEST: APPROVED:
__________________________ ____________________________
Lee Woodward, City Secretary Clark Askins, Assistant City Attorney
DEED WITHOUT WARRANTY
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY
REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS
INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
Date: MARCH 9, 2020
Grantor: CITY OF LA PORTE, TEXAS, a municipal corporation
Mailing Address: 604 West Fairmont Parkway, La Porte, TX 77571
Grantee: Crenshaw Real Properties II, LTD
Mailing Address: 1655 Louisiana Street, Beaumont, TX 77701-1120
Consideration: Ten and No/100 Dollars ($10.00) cash
and other good and valuable considerations
Property: (including any improvements):
Tract 1
Being a tract of land containing 0.5645 acres, being a portion of N 2nd Street, Nebraska
Syndicate, recorded in Volume 83, Page 345, Harris County Deed Records, and being located
in the Johnson Hunter League, Abstract Number 35, Harris County, Texas, and being more
particularly described by metes and bounds as follows:
BEGINNING, at a found five eighths inch iron rod with cap stamped ''Cruller 5476", marking
the southwest corner of the tract herein described the southeast corner of a called 5.760 acre
tract being recorded in Harris County Clerk's File No. 20070706635;
THENCE, North 03 degrees 03 minutes 04 seconds West, along the west line of the tract herein
described, for a distance of 820.02 feet to the northeast corner of said called 5.760 acre tract;
THENCE , North 86 degrees 55 minutes 55 seconds East, along the north line of the tract
herein described, for a distance of 30.00 feet marking the center line of the N 2nd Street right-
of-way;
THENCE, South 03 degrees 03 minutes 04 seconds East, along the center line of the N 2nd
Street right-of-way, for a distance of 820.02 feet marking the center line of the N 2nd Street
right-of-way on the north line of Barbours Cut Boulevard;
THENCE, South 86 degrees 55 minutes 55 seconds West, along the south line of the tract
herein described, for a distance of 30.00 feet to the POINT OF BEGINNING.
Tract 2
Being a tract of land containing 1.129 acres, being a portion of N 4th Street, Nebraska
Syndicate, recorded in Volume 83, Page 345, Harris County Deed Records, and being located
in the Johnson Hunter League, Abstract Number 35, Harris County, Texas, and being more
particularly described by metes and bounds as follows;
BEGINNING, at a found five eighths inch iron rod with cap stamped ''Cruller 5476", marking
the southeast corner of the tract herein described the southwest corner of a called 2.810 acre
tract (Tract 4) being recorded in Harris County Clerk's File No. 20070706634 and in the north
line of Barbours Cut Boulevard (100 foot wide);
THENCE, South 86 degrees 55 minutes 55 seconds West, along the south line of the tract
herein described, for a distance of 60.00 feet to a set five eighths inch iron rod with cap stamped
"JM", marking the southeast corner of a called 5.007 acre tract (Tract 3) as recorded in Harris
County Clerk's File No. 20070706634;
THENCE, North 03 degrees 03 minutes 04 seconds West, along the east line of said called
5.007 acre tract, for a distance of 820.00 feet, to a set five eighths inch iron rod in the south
line of H Street (60 foot wide) and marking the northwest corner of the tract herein described;
THENCE, North 86 degrees 55 minutes 55 seconds East, along the north line of the tract herein
described, for a distance of 60.00 feet to a found three eighths inch iron rod, marking the
northwest corner of a called 3.02 acre tract, as recorded in Harris County Clerk's File No.
20080509130;
THENCE, South 03 degrees 03 minutes 04 seconds East, along the west line of said called
3.02 acre tract and 2.810 acre tract, for a distance of 820.00 feet to the POINT OF
BEGINNING.
Reservations from and Exception to Conveyance and Warranty: This conveyance is made subject
to all and singular the restrictions, conditions, oil, gas, and other mineral reservations, easements,
and covenants, if any, applicable to and enforceable against the above described property as reflected
by the records of the county clerk of the aforesaid county.
Grantor for the consideration and subject to the reservations from and exceptions to conveyance,
conveys to Grantee the property without express or implied warranty, and all warranties that might
arise by common law and the warranties in §5.023 of the Texas Property Code (or its successor) are
excluded.
Attest: City of La Porte, Texas
__________________________________ By: _______________________________
Lee Woodward Corby D. Alexander
City Secretary City Manager
Approved:
____________________________
Clark T. Askins
Assistant City Attorney
STATE OF TEXAS §
§
COUNTY OF HARRIS §
This instrument was acknowledged before me on _____ day of _______________, 2020, by
Corby D. Alexander, City Manager of the City of La Porte, Texas, a municipal corporation.
____________________________________
Notary Public, State of Texas
AFTER RECORDING RETURN TO: PREPARED IN THE LAW OFFICE OF:
ASKINS & ASKINS, P.C. ASKINS & ASKINS, P.C.
P.O. Box 1218 P.O. Box 1218
La Porte, TX 77572-1218 La Porte, TX 77572-1218
DEED WITHOUT WARRANTY
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY
REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS
INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
Date: MARCH 9, 2020
Grantor: CITY OF LA PORTE, TEXAS, a municipal corporation
Mailing Address: 604 West Fairmont Parkway, La Porte, TX 77571
Grantee: Frontier Port Properties, LLC
Mailing Address: 101 W. Barbours Cut Boulevard, La Porte, TX 77571-3024
Consideration: Ten and No/100 Dollars ($10.00) cash
and other good and valuable considerations
Property: (including any improvements):
Being a tract of land containing 0.5645 acres, being a portion of N 2nd Street, Nebraska
Syndicate, recorded in Volume 83, Page 345, Harris County Deed Records, and being located
in the Johnson Hunter League, Abstract Number 35, Harris County, Texas, and being more
particularly described by metes and bounds as follows:
BEGINNING, at a found five eighths inch iron rod with cap stamped ''Cruller 5476", marking
the southeast corner of the tract herein described the southwest corner of a called 10.903 acre
tract being recorded in Harris County Clerk's File No. 20090354653;
THENCE, North 03 degrees 03 minutes 04 seconds East, along the east line of the tract herein
described, for a distance of 820.02 feet to the northwest corner of said called 10.930 acre tract;
THENCE, North 86 degrees 55 minutes 55 seconds West, along the north line of the tract
herein described, for a distance of 30.00 feet marking the center line of the N 2nd Street right-
of-way;
THENCE, South 03 degrees 03 minutes 04 seconds West, along the center line of the N 2nd
Street right-of-way, for a distance of 820.02 feet marking the center line of the N 2nd Street
right-of-way on the north line of Barbours Cut Boulevard;
THENCE, South 86 degrees 55 minutes 55 seconds East, along the south line of the tract herein
described, for a distance of 30.00 feet to the POINT OF BEGINNING.
Reservations from and Exception to Conveyance and Warranty: This conveyance is made subject
to all and singular the restrictions, conditions, oil, gas, and other mineral reservations, easements,
and covenants, if any, applicable to and enforceable against the above described property as reflected
by the records of the county clerk of the aforesaid county.
Grantor for the consideration and subject to the reservations from and exceptions to conveyance,
conveys to Grantee the property without express or implied warranty, and all warranties that might
arise by common law and the warranties in §5.023 of the Texas Property Code (or its successor) are
excluded.
Attest: City of La Porte, Texas
__________________________________ By: _______________________________
Lee Woodward Corby D. Alexander
City Secretary City Manager
Approved:
____________________________
Clark T. Askins
Assistant City Attorney
STATE OF TEXAS §
§
COUNTY OF HARRIS §
This instrument was acknowledged before me on _____ day of _______________, 2020, by
Corby D. Alexander, City Manager of the City of La Porte, Texas, a municipal corporation.
____________________________________
Notary Public, State of Texas
AFTER RECORDING RETURN TO: PREPARED IN THE LAW OFFICE OF:
ASKINS & ASKINS, P.C. ASKINS & ASKINS, P.C.
P.O. Box 1218 P.O. Box 1218
La Porte, TX 77572-1218 La Porte, TX 77572-1218
ROW CLOSURE
SAC
#19-25000001
N. 2nd & N. 4th
Legend
Proposed ROW Closure
This product is for informational
purposes and may not have
BOURS CUT
BAR
been prepared for or be suitable
for legal purposes. It does not
represent an on-the-ground
survey and represents only the
approximate relative location of
property boundaries
1 inch = 214 feet
MARCH 2020
PLANNING DEPARTMENT
R.C. Chuoke & Associates, Inc.
Appraisers & Consultants
P.O. Box 1447 Office- 281-338-9633
League City, Texas 77574 Fax- 281-338-9533
December 17, 2019
City of La Porte
P.O. Box 1115
La Porte, Texas 77572
RE: Restricted Appraisal regarding the estimated Market Value of portions
of North 2nd Street and North 4th Street both unopened right of ways
situated between W. Barbour's Cut Blvd. and H Street, La Porte, Harris
County, Texas.
Dear Sirs:
In accordance with your request, I have inspected the following described
property for the purpose of estimating the Market Value following described
property as of the date of this Restricted Appraisal. As per our agreement, the
data and analysis is presented in an abbreviated Restricted Appraisal format
and is not intended to contain the full analysis.
BRIEF LEGAL DESCRIPTION OF PROPERTY
Known as +-1.129 acres of land out of a portion of North 2nd Street and +-
1.129 acres of land situated a portion of North 4th Street, both being unopened
right of ways between Barbour's Cut Blvd and H Street located in the City of
La Porte, Harris County, Texas. (See attached surveys know located in the
addenda).
I hereby certify that I have personally inspected the property described via a
street inspection and that all data gathered by my investigation is from
sources believed reliable and true. In preparing this Restricted Appraisal, a
study of comparable sales and other related market data was performed. Per
instructions from the client the market value indicated reflects the unit value
of the subject property before any discounting for use as a public right of way
application. This market value indication does not reflect any discounting for
use as a public right of way.
It should clearly be understood that this letter only constitutes only a
statement of the final value and that does not presume to be the complete
analysis of the subject property nor a complete appraisal format and is subject
.....Page 2 Continued......
to the preparation of a detailed appraisal report. The North 2nd Street ROW is
described by the survey as a total of +-1.129 acres or 49,179 square feet of land area. This
tract consists of a portion of the unopened North 2nd Street right of way which is 80' X
820.02'. The North 4th Street ROW is described by the survey as a total of +-1.129
acres or 49,179 square feet of land area. This tract consists of a portion of the unopened
North 2nd Street right of way which is 80' X 820'. Both right of ways are located north of
Barbour's Cut Blvd and east of State Highway 146 in north La Porte. The subject site is
generally flat and level in terms of topography. It is not located in the 100 year flood plain.
Adjacent property uses consist primarily of commercial and light industrial property uses.
The adjacent and nearby properties are zoned for light industrial and business industrial
use by the City of La Porte. The Highest and Best Use of the subject property is
determined to be for use either for a street right of way, however it may have an alternative
use by adjacent property owners due to its configuration. The client and intended user of
this appraisal is the City of La Porte only. The intended use is to estimate the current
market value of the subject property of this analysis as described above for use in
establishing a market value for the subject property by the client. There has been no
transfer of the subject property noted for the past 36 months per appraisal district records.
The effective date of the appraisal is December 9, 2019 and last site inspection is
December 16, 2019. The date of the report is December 17, 2019. The estimated
exposure time is up to 24 months.
Other sales of generally similar properties in the subject neighborhood were
researched that had locations that range from primary to secondary type roadways.
A unit value range of between $2.00 PSF to over $8.00 PSF was noted. After
adjustments, it is my opinion the estimated unit value range for the subject
property would be a unit value of $2.50 PSF before any additional discounting
by the "City".
Therefore the unit market value of the subject tract is estimated at $2.50 PSF
which is based on 100% fee simple ownership with no discounting
applied for use as a public right of way.
Respectfully Submitted,
Chris Chuoke, President
R.C. CHUOKE & ASSOCIATES , INC.
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: March 9, 2020
Requested By: Source of Funds: N/A
Ian Clowes, City Planner
Department:
Planning & Development
Account Number: N/A
Amount Budgeted: N/A
Report Resolution Ordinance
Amount Requested: N/A
Exhibits: Ordinance 2020-3783, Deed, Area Map,
Budgeted Item: Yes No
Appraisal Summary and Staff Opinion Letter
SUMMARY
The City received an application from Jana Gutierrez, on behalf of Crenshaw Real
th
Properties II, LTD to vacate, abandon and close a portion of the N 8 Street right of way,
adjacent to the property legally described as Tracts 12, 12B, 12C, and 12D, Block 12,
Nebraska Syndicate, located along SH 146 north of the H Street right of way.
The abandonment process requires that all adjacent property owners either participate
in the closure or sign away rights to their portion of the proposed closure. La Porte Real
Property, LLC, the only other adjacent property owner, decided not to participate in the
request and has authorized conveyance of their portion of the right of way in its entirety
to Crenshaw Real Properties II, LTD.
The total area of the requested closure equals 68,800 square feet. Staff has identified
the location of existing water and sewer mains that currently exist within the right of way
proposed for closure. Comcast, AT&T, and Centerpoint, the three franchise utility
companies, have all provided letters of no objection to the proposed right of way closure.
In order to close the requested ROW, City will need an easement requiring unobstructed
th
access. The water and sewer lines located in the N 8 Street right of way are the only
means of service for the industrial areas to the north. The materials for both the water
and sewer infrastructure are no longer utilized and they are nearing the end of their useful
life. Full replacement of the existing utility lines could be necessary in the near future.
In accordance with Sections 62-
an appraisal of the subject rights of way to establish fair market value. The appraisal
report established a value of $2.50 per square foot. The applicant has submitted closing
fees in the amount of $172,000(68,800sq. ft. x $2.50) to the City. These funds are being
held in escrow subject to final consideration and action by Council.
RECOMMENDED MOTION
I move that the Council adopt Ordinance 2020-3783 for street and alley closure request #19-
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25000007, vacating and abandoning a portion of then N 8 St. right of way, adjacent to the
property legally described as Tracts 12, 12B, 12C, and 12D, Block 12, Nebraska Syndicate, and
authorize the City Manager to execute a deed to the adjacent property owner for the subject
right of way.
Approved for the City Council meeting agenda
Corby D. Alexander, City Manager Date
ORDINANCE NO. 2020-3783
AN ORDINANCE VACATING, ABANDONING AND CLOSING THE PORTION OF THE N. 8TH
STREET RIGHT-OF-WAY SITUATED BETWEEN THE H STREET RIGHT-OF-WAY AND THE J
STREET RIGHT-OF-WAY, AND AUTHORIZING THE EXECUTION AND DELIVERY OF A DEED
TO THE ADJOINING LANDOWNERS; FINDING COMPLIANCE WITH THE OPEN MEETINGS
LAW; CONTAINING A SEVERABILITY CLAUSE; CONTAINING A SAVINGS CLAUSE; AND
PROVIDING AN EFFECTIVE DATE HEREOF.
WHEREAS, the City Council of the City of La Porte has been requested by the record owners of the properties
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abutting the portion of the N 8 Street right-of-way situated between the H Street right-of-way and J Street right-
of-way, to vacate, abandon and close said rights of way, and;
WHEREAS, the City Council of the City of La Porte has determined and does hereby find, determine, and declare
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that the portion of the N. 8 Street right-of-way situated between the H Street right-of-way and J Street right-of-
way are not suitable, needed, or beneficial to the public as a public road, street, or alley, and the closing of the
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portion of the N. 8 Street right-of-way situated between the H Street right-of-way and J Street right-of-way is
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for the protection of the public and for the public interest and benefit, and that the portion of the N. 8 Street
right-of-way situated between the H Street right-of-way and J Street right-of-way should be vacated, abandoned,
and permanently closed.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. Under and by virtue of the power granted to the City of La Porte under its home rule charter, Chapter
62 of the City of La Porte Code of Ordinances and Chapter 253, Texas Local Government Code, the
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portion of the N 8 Street right-of-way situated between the H Street right-of-way and J Street right-
of-way are hereby permanently vacated, abandoned, and closed by the City of La Porte, such rights-
of-way being ncorporated herein, and further described to wit:
Being a tract of land containing 1.506 acres, being a portion of the N. 8th street Nebraska Syndicate, recorded
in Volume 83, Page 34S. Harris County Deed Records and being located in the Johnson Hunter League, Abstract
No. 35, Harris County, Texas, And be more fully described as follows:
BEGINNING, at the southerly corner of said street. said COMENCING POINT having a Texas State Plane
Coordinate System, South Central Zone (4204) Value of X=3,229,599.17 and Y= 13,814,674.1S (GRID);
THENCE, South 86 degrees 55 minutes 55 seconds West over and across said street, a distance of 80 feet to the
southwesterly comer of Lessee's Land Space;
THENCE , North 03 degrees 04 minutes 05 seconds West over and across said street, a distance of 860.04 feet
to the northwesterly corner of Lessee's Land Space;;
THENCE, North 86 degrees 55 minutes 55 seconds West continuing over and across said street, a distance of
80.00 feet to the Northeasterly corner of Lessee's Land Space;
2
THENCE, North 86 degrees 01 minutes 30 seconds East continuing over and across said Parent Tract a distance
of 40.00 feet to the northwesterly corner of Lessee's Land Space;
THENCE, South 03 degrees 04 minutes 05 seconds East continuing over and across said street, a distance of
860.0 feet to the POINT OF BEGINING.
Section 2. That the abandonment, vacation and closure provided for herein is made and accepted subject to all
present zoning and deed restrictions if the latter exist, and all easements, whether apparent or non-
apparent, aerial, surface or underground.
Section 3. That the abandonment, vacation and closure provided for herein shall extend only to the public right,
title, easement and interest and shall be construed to extend only to that interest which the governing
body for the City of La Porte may legally and lawfully abandon, vacate and close.
Section 4. That the City Manager is hereby authorized to execute and deliver a Deed Without Warranty to the
abutting owner upon completion of all conditions and requirements set forth in this Ordinance.
Section 5. That the abutting property owner shall pay all costs associated with procedures necessitated by the
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request to abandon the portion of the N 8 Street right-of-way situated between the H Street right-of-
way and J Street right-of-way, as described in this Ordinance, plus compensation for the market value
of such abandoned property in accordance Chapter 62 of the City of La Porte Code of Ordinances.
Section 6. 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 was 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 the Open Meetings Law, 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 ordinance and the subject
matter thereof has been discussed, considered, and formally acted upon. The City Council further
ratifies, approves, and confirms such written notice and the contents and posting thereof.
Section 7: All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of the
conflict only.
Section 8. If any part or portion of this ordinance shall be invalid or unconstitutional, such invalidity or
unconstitutionality shall not affect or impair any remaining portions or provisions of the ordinance.
Section 9. This ordinance shall be effective from and after its passage and approval, and it is so ordered.
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PASSED AND APPROVED THIS 9 day of March 2020.
CITY OF LA PORTE, TEXAS
______________________________
Louis R. Rigby, Mayor
3
ATTEST: APPROVED:
__________________________ ____________________________
Lee Woodward, City Secretary Clark Askins, Assistant City Attorney
DEED WITHOUT WARRANTY
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY
REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS
INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
Date: MARCH 9, 2020
Grantor: CITY OF LA PORTE, TEXAS, a municipal corporation
Mailing Address: 604 West Fairmont Parkway, La Porte, TX 77571
Grantee: Crenshaw Real Properties II, LTD
Mailing Address: 1655 Louisiana Street, Beaumont, TX 77701-1120
Consideration: Ten and No/100 Dollars ($10.00) cash
and other good and valuable considerations
Property: (including any improvements):
Being a tract of land containing 1.506 acres, being a portion of the 8th street Nebraska
Syndicate, recorded in Volume 83, Page 34S. Harris County Deed Records and being located
in the Johnson Hunter League, Abstract No. 35, Harris County, Texas, And be more fully
described as follows:
BEGINNING, at the southerly corner of said street. said COMENCING POINT having a Texas
State Plane Coordinate System, South Central Zone (4204) Value of X=3,229,599.17 and Y=
13,814,674.1S (GRID);
THENCE, South 86 degrees 55 minutes 55 seconds West over and across said street, a distance
of 80 feet to the southwesterly comer of Lessee's Land Space;
THENCE , North 03 degrees 04 minutes 05 seconds West over and across said street, a distance
of 860.04 feet to the northwesterly corner of Lessee's Land Space;;
THENCE, North 86 degrees 55 minutes 55 seconds West continuing over and across said
street, a distance of 80.00 feet to the Northeasterly corner of Lessee's Land Space;
THENCE, North 86 degrees 01 minutes 30 seconds East continuing over and across said Parent
Tract a distance of 40.00 feet to the northwesterly corner of Lessee's Land Space;
THENCE, South 03 degrees 04 minutes 05 seconds East continuing over and across said street,
a distance of 860.0 feet to the POINT OF BEGINING.
Reservations from and Exception to Conveyance and Warranty: This conveyance is made subject
to all and singular the restrictions, conditions, oil, gas, and other mineral reservations, easements,
and covenants, if any, applicable to and enforceable against the above described property as reflected
by the records of the county clerk of the aforesaid county.
Grantor for the consideration and subject to the reservations from and exceptions to conveyance,
conveys to Grantee the property without express or implied warranty, and all warranties that might
arise by common law and the warranties in §5.023 of the Texas Property Code (or its successor) are
excluded.
Attest: City of La Porte, Texas
__________________________________ By: _______________________________
Lee Woodward Corby D. Alexander
City Secretary City Manager
Approved:
____________________________
Clark T. Askins
Assistant City Attorney
STATE OF TEXAS §
§
COUNTY OF HARRIS §
This instrument was acknowledged before me on _____ day of _______________, 2020, by
Corby D. Alexander, City Manager of the City of La Porte, Texas, a municipal corporation.
____________________________________
Notary Public, State of Texas
AFTER RECORDING RETURN TO: PREPARED IN THE LAW OFFICE OF:
ASKINS & ASKINS, P.C. ASKINS & ASKINS, P.C.
P.O. Box 1218 P.O. Box 1218
La Porte, TX 77572-1218 La Porte, TX 77572-1218
ROW CLOSURE
SAC
#19-25000007
N. 8th St.
Legend
Proposed ROW Closure
Sewer Main
Water Main
This product is for informational
purposes and may not have
been prepared for or be suitable
for legal purposes. It does not
FAIRLANE
represent an on-the-ground
8"
survey and represents only the
approximate relative location of
property boundaries
1 inch = 214 feet
MARCH 2020
PLANNING DEPARTMENT
R.C. Chuoke & Associates, Inc.
Appraisers & Consultants
P.O. Box 1447Office- 281-338-9633
League City, Texas 77574 Fax- 281-338-9533
November 18, 2019
City of La Porte
P.O. Box 1115
La Porte, Texas 77572
RE: Restricted Appraisal regarding the estimated Market Value of a portion
of North 8th Street unopened right of way between Avenue H and Avenue
J, La Porte, Harris County, Texas.
Dear Sirs:
In accordance with your request, I have inspected the following described
property for the purpose of estimating the Market Value following described
property as of the date of this Restricted Appraisal. As per our agreement, the
data and analysis is presented in an abbreviated Restricted Appraisal format
and is not intended to contain the full analysis.
BRIEF LEGAL DESCRIPTION OF PROPERTY
Known as a total of +-1.506 acres of land situated a portion of North 8th Street
unopened right of way between Avenue H and Avenue J, La Porte, Harris
County, Texas. (See attached survey know as Exhibit "A" located in the
addenda).
I hereby certify that I have personally inspected the property described via a
street inspection and that all data gathered by my investigation is from
sources believed reliable and true. In preparing this Restricted Appraisal, a
study of comparable sales and other related market data was performed. Per
instructions from the client the market value indicated reflects the unit value
of the subject property before any discounting for use as a public right of way
application. This market value indication does not reflect any discounting for
use as a public right of way.
It should clearly be understood that this letter only constitutes only a
statement of the final value and that does not presume to be the complete
analysis of the subject property nor a complete appraisal format and is subject
.....Page 2 Continued......
to the preparation of a detailed appraisal report. The subject property as described
by the survey as provided, contains a total of +-1.506 acres or 65,601 square feet of land
area. The subject property consists of a portion of the unopened North 8th Street right of
way which is 80' X 860.04'. This right of way is located north of Barbour's Cut Blvd and
east of State Highway 146 in north La Porte. The subject site is generally flat and level in
terms of topography. It is not located in the 100 year flood plain. Adjacent property uses
consist primarily of commercial and light industrial property uses. The adjacent properties
area zoned for light industrial and business industrial use by the City of La Porte. The
Highest and Best Use of the subject property is determined to be for use either for a street
right of way, however it may have an alternative use by adjacent property owners due to its
configuration. The client and intended user of this appraisal is the City of La Porte only.
The intended use is to estimate the current market value of the subject property of this
analysis as described above for use in establishing a market value for the subject property
by the client. There has been no transfer of the subject property noted for the past 36
months per appraisal district records. The effective date of the appraisal and inspection is
November 6, 2019. The date of the report is November 8, 2019. The estimated
exposure time is up to 24 months.
Other sales of generally similar properties in the subject neighborhood were
researched that had locations that range from primary to secondary type roadways.
A unit value range of between $2.00 PSF to over $8.00 PSF was noted. After
adjustments, it is my opinion the estimated unit value range for the subject
property would be a unit value of $2.50 PSF before any additional discounting
by the "City".
Therefore the unit market value of the subject tract is estimated at $2.50 PSF
which is based on 100% fee simple ownership with no discounting
applied for use as a public right of way.
Respectfully Submitted,
Chris Chuoke, President
R.C. CHUOKE & ASSOCIATES , INC.
From:Wingate, Lorenzo
To:Clowes, Ian; Banks, Robert; Meekins, Clif
Cc:Huber, Mark; Glass, Richard; Evans, Teresa
Subject:RE: Proposed SAC
Date:Thursday, April 25, 2019 2:39:42 PM
Attachments:image001.png
image002.png
image003.png
image004.png
Ian,
th
We have both water and sewer infrastructure that exists within the 8 Street ROW. The existing
water and sewer lines are the only feeds that we have servicing the industrial area to the north of
this location. The material for both the water and sewer infrastructure is no longer utilized, aging,
has quite possibly exceeded its useful life, possibly in need of replacement. Closing this ROW would
restrict access to this aged infrastructure. Additionally, given that the proposed business appears to
be a commercial trailer sales yard, these items would possibly be staged/parked atop any utility
easement retained, causing obstructions to the access needed for our maintenance crews.
I object to closing the ROW.
Feel free to contact me if you have any additional questions.
Lorenzo Wingate, P.E., C.F.M. | City Engineer
rd
2963 N 23 Street | La Porte, TX 77571
p.281.470.5058 | m. 281.628.3931 | f. 281.470.5129
website | map | email
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: March 9, 2020
Requested By: Source of Funds: N/A
Ian Clowes, City Planner
Department:
Planning & Development
Account Number: N/A
Amount Budgeted: N/A
Report Resolution Ordinance
Amount Requested: N/A
Exhibits: Ordinance Clean Version, Ordinance Changes
Budgeted Item: Yes No
Shown and P&Z Recommendation Letter
SUMMARY
At the January 16, 2020 Planning and Zoning Commission meeting, the Commission held a Public
Hearing regarding amendments to Chapter 106 of the City Code of Ordinances based on the annual
review of the code.
The Planning and Zoning Commission formed a subcommittee consisting of four (4) members of the
Commission. Along with staff support, the subcommittee was tasked with reviewing Chapter 106 of the
City Code of Ordinances and discuss possible amendments. The Committee met weekly for two (2)
months before finalizing a draft version of their proposal.
The 2019 annual review was broken down into two parts. The first part of the draft was presented to
City Council and approved with amendments at the January 13, 2020 City Council meeting. Those
amendments will be brought to the Planning and Zoning Commission in either March or April with plans
for City Council action in May or June.
The following items are part of the second phase of the 2019 proposed changes to Chapter 106, and
are separate from the amendments that were presented in January. This second round of draft
amendments was presented to the full Commission as a discussion item in November 2019. Based on
comments received, the subcommittee finalized their draft amendments. The full Commission
nd
recommended the 2 phase of proposed amendments at their January 2020 meeting.
Attached is the draft version of the proposed modifications to the Zoning Ordinance. Those in red
indicate changed language as part of the proposed modification to Chapter 106.
The following is a summary of the proposed modifications:
Sec. 106-1, Definitions
means a surfaced area, designed to control dust and moisture paved with either
concrete, hot-mix asphalt, or chip seal (TxDOT Standard 316 surface treatment), enclosed or
unenclosed, sufficient in size to store one automobile together with a surfaced driveway connecting
the parking space with the street or alley permitting ingress and egress of an automobile. A parking
space or any requisite maneuvering area incidental thereto shall not occupy any public right-of-way.
New technologies in parking lot surfacing can be considered and approved at the discretion of the
Sec. 106-216, General conditions for all conditional uses in all zoning districts
-216. - General conditions for all special conditional uses
Sec. 106-310, Table A, Commercial and Industrial Uses
2017 NAICS 2017 NAICS Title ** NC MS GC MU BI LI HI
Code
531130 Lessors of Mini-warehouses and P P P P P
Self-Storage Units (Not
including Boat and RV Storage)
531130 Boat and RV Storage C C C P P
Sec. 106-310, Table A, Commercial and Industrial Uses
2017 2017 NAICS Title ** NC MS GC MU BI LI HI
NAICS
Code
42 Wholesale Trade
19
Motor Vehicle and Motor P
4231 C P
19
Vehicle Parts and
21
P
Supplies Merchant
Wholesalers
4232 Furniture and Home
Furnishing Merchant
Wholesalers
4233 Lumber and Other
Construction Materials
Merchant Wholesalers
Professional and
4234
Commercial Equipment
and Supplies Merchant
Wholesalers
42351 Metal Service Centers
and Other Metal Merchant
Wholesalers
19
Household Appliances P
4236 C P
19
and Electrical and
21
P
Electronic Goods
Merchant Wholesalers
Hardware, and Plumbing
4237
and Heating Equipment
and Supplies Wholesalers
18 18 19
Sporting and Recreational P
423910 P P C P
19
Goods and Supplies
21
P
Merchant Wholesalers
18 18 19
Toy and Hobby Goods P
423920 P P C P
19
and Supplies Merchant
21
P
Wholesalers
4
19
423940 Jewelry, Watch, Precious C P P
19
Stone, and Precious
21
P
Metal Merchant
Wholesalers
19
423990 Other Miscellaneous C P P
19
Durable Goods Merchant
21
P
Wholesalers
19
4241 Paper and Paper Product C P P
19
Merchant Wholesalers
21
P
Drugs and Druggists'
4242
Sundries Merchant
Wholesalers
4243 Apparel, Piece Goods,
and Notions Merchant
Wholesalers
Grocery and Related
4244
Product Merchant
Wholesalers
19
Plastics Materials and P
424610 C P
19
Basic Forms and Shapes
21
P
Merchant Wholesalers
19
424690 Other Chemical and Allied C P P
19
Products Merchant
21
P
Wholesalers
19
Petroleum and Petroleum P
424720 C P
19
Products Merchant
21
P
Wholesalers (except Bulk
Stations and Terminals)
19
Beer and Ale Merchant P
424810 C P
19
Wholesalers
21
P
19
Wine and Distilled P
424820 C P
19
Alcoholic Beverage
21
P
Merchant Wholesalers
19
42492 Book, Periodical, and C P P
19
Newspaper Merchant
21
P
Wholesalers
Flower, Nursery Stock,
42493
and Florists' Supplies
Merchant Wholesalers
42495 Paint, Varnish, and
Supplies Merchant
Wholesalers
42499 Other Miscellaneous
Nondurable Goods
Merchant Wholesalers
425 Wholesale Electronic P C P P
Markets and Agents and
21
P
Brokers
6 6
P P
493 Warehousing and Storage
1919
17
Other Warehousing and P P
493190
17
19
Storage
19
Sec. 106-334, Special use performance standards; residential
Shipping containers. Single-family homes comprised and/or constructed of one or
more shipping containers are prohibited. permitted within all residential zoning districts
with the following conditions:
(1) Any and all exposed container parent material shall be clad with one or a
combination of the following materials: Masonry materials, stucco, wood siding,
synthetic wood (such as hardie board), or alternative materials with approval from
the planning director. No portion of the original shipping container exterior is allowed
to be visible at any time.
(2) Homes constructed out of shipping containers are not permitted in the Main Street or
Main Street Overlay (MSD/MSDO) zoning districts.
Sec. 106-444, Commercial Performance Standards
Outdoor storage. Open and outdoor storage as an accessory or principal use provided that:
(1) The area is screened from view of neighboring residential uses or an abutting residential
district in compliance with section 106-444(a) (Special use performance standards).
(2) Storage is screened from view from the public right-of-way in compliance with section
106-444(a) (Special use performance standards)
(3) Storage area is grassed or surfaced to control dust must be paved with either concrete,
hot-mix asphalt, or chip seal (TxDOT Standard 316 surface treatment). New technologies
in paving materials can be considered and approved at the discretion of the Planning and
Development Director or his/her designee.
(4) All lighting shall be hooded and so directed that the light source shall not be visible from
the public right-of-way or from neighboring residences and shall be in compliance with
section 106-310
Sec. 106-659, Special regulations and procedures
(a) Procedure for establishing or developing a planned unit development district
development.
(1) An application for a special conditional use permit shall be filed and processed based
upon procedures established by sections 106-216 (General conditions for all special
conditional uses in all zoning districts), 106-217 (Conditions for approval), and 106-
218 (Amendments).
(2) An application for a general plan shall be filed and processed simultaneously with
the special conditional use permit and shall be subject to the requirements of this chapter
and the City Development Ordinance Number 1444 on file in the city secretary's office.
(3) Submittal and filing of the general plan shall be according to Chapter 86 of this Code
the Development Ordinance Number 1444 on file in the city secretary's office and shall
contain, in addition to the requirements of Chapter 86 of this Code the Development
Ordinance Number 1444 on file in the city secretary's office, the following information:
General area wide development plan (general outline of the site and surrounding area).
a. Uses.
b. Zoning.
c. Streets.
d. Grade or topography.
e. Density.
f. Utilities and drainage
(4) The applicant shall submit a proposed schedule of construction. If the construction of
the proposed planned unit development is to be in stages, then the components
contained in each stage must be clearly delineated. The development schedule shall
indicate the approximate starting date and the completion date of the complete
development plan.
(5) A written description shall be submitted documenting the type of property control that
will be utilized to administer, control and maintain any common open space or areas.
Sec. 106-741, General Provisions
(a) No accessory buildings, uses or structures shall be erected or located in any required yard other
than the rear yard except:
(1) A detached private garage as defined, may be permitted in side yards, provided:
a.It complies with all the requirements of this section;
b. It shall be five feet or more from side lot lines; and
c. The side yard does not abut a street right-of-way.
(2) Accessory buildings built on a skid foundation, no larger than 120 square feet and no
more than one story in height may be located in utility easements in required rear yards,
except that they may not be located closer than three feet from a side or rear property
line or closer than six feet from any other structure.
(b) Accessory buildings, uses and structures, with the exception of those on residential large lots,
shall not exceed 15 feet in height, shall be three feet or more from all lot lines, shall be six feet
or more from any other building or structure on the same lot, and shall not be located upon any
utility easement.
(c) Utilization of shipping containers as an accessory use/structure in any residential zoning district
is prohibited.
(d) Private garage structures with vehicular access doors facing public alleys, as defined in the
public improvement construction policy and standards, shall be 20 feet or more from the alley
right-of-way. Detached garages located in rear yards of corner lots shall be set back a minimum
ten feet from the property line abutting the side street right-of-way.
(e) Detached private garages, as defined, may be 20 feet in height, or the height of the principal
structure, whichever is less.
(f) Floor area. See section 106-416 (Special regulations).
(1) Generally. No accessory building, or carport garage for single-family dwellings shall
occupy more than 25 percent of a rear yard, nor exceed 1,000 square feet of floor
area.
(2) Large lot residential only. Accessory buildings in single-family residential large lots
with one acre or more may not exceed 5,000 square feet of floor
area. Accessory buildings with a floor area in excess of 1,000 square feet must be
located at least 10 feet from any property line and 20 feet from other structures.
All accessory buildings on lots less than one acre - all provisions of this section apply.
(g) No more than one detached private garage or carport structure on lots less than one acre with
single family dwelling.
(h) Wind generators, for producing electricity or other forms of energy shall not be located in any
yards other than the rear yard and must be set back 150 feet from all property lines or the height
of the structure, whichever is greater unless a special conditional use permit (SCUP) is granted.
Provisions of SCUP should take into consideration size, height, noise, location to adjacent
properties, etc.
(i) Reserved.
(j) No accessory uses or equipment except for air conditioning structures or condensers may be
located in a required side yard except for side yards abutting streets where equipment is fully
screened from view.
(k) Large lot district. The property owner of a toolhouse, barn, shed, storage building and/or
livestock in the large lot district on a tract one acre in size or larger authorized without a principal
structure on the property, shall be responsible for ensuring no one lives in the toolhouse, barn,
shed, or storage building without properly permitting the structure for residential habitation, the
property is kept in a sanitary condition and the property complies with all applicable city
regulations
Sec. 106-801, Alternative landscaping option
Sec.106-839, Number of spaces required
2017 NAICS Code 2017 NAICS Title MINIMUM NUMBER OF REQUIRED PARKING SPACES
(combination)
N/AShopping Center One space per 250 square feet of gross floor area.
Sec. 106-803, Tree Preservation
Sec. 106-803. - Tree preservation.
(a) It is the intent of this section to encourage the preservation of existing trees within the
city and to prohibit their unwarranted destruction. The city encourages site planning
which furthers the preservation of trees and natural areas by the following methods: To
protect trees during construction; to facilitate site design and construction which
contributes to the long term viability of existing trees; and to control premature removal
of trees; require on-site replacement of trees that must be removed and require off-site
replacement of trees that cannot be replaced on-site, either by direct planting as
outlined in section 106-802 (tree replacement) or through a contribution to the tree fund
established in section 106-803 (tree fund) of this chapter. It is the further intent of this
section to achieve the following objectives:
(1) Protect healthy trees and preserve the natural, environmental, and aesthetic
qualities of the city to the degree possible.
(2) Protect and increase the value of residential and commercial properties within
the city.
(3) Discourage premature clear-cutting of property.
(4) Maintain and enhance a positive image for the attraction of new developments to
the city.
(b) It shall be unlawful for any person to cause or permit the destruction of any healthy,
native tree (herein referred to as a "protected tree") within the city if such tree has a
trunk which exceeds six inches in diameter (or 18.84-inch circumference) at a point 18
inches above the natural ground level. Provided, however, it shall not be a violation of
this provision if a tree is removed and/or destroyed if the tree is obviously diseased or
determined to be diseased by an arborist or in the opinion of the planning director or his
designated representative, said tree constitutes a hazard to pedestrian and/or vehicular
traffic along any such right-of-way.
(c) No person, firm or corporation desirous of developing or improving any parcel of
property, shall remove or cause the removal of any tree from said property without first
obtaining a clearing permit which would allow clearing of buildable areas only.
(d) The provisions of this section are not applicable to individual single family lots single
family subdivisions of less than 5 acres, or property located within the Large Lot (LLD)
zoning district regardless of size
Sec. 106-835, Design Standards
Surfacing. All areas for parking space and driveways shall be surfaced with materials
suitable to control dust and drainage. Except in the case of single-family and two-family
dwellings in the Large Lot (LLD) zoning district, d Driveways and stalls shall be surfaced
with standard concrete, hot-mix asphalt, or chip seal (TxDOT Standard 316 surface
treatment) in conformance with the public improvements criteria manual (PICM),
except in the case of single family homes in the Large Lot (LLD) zoning district. For
the
public right of way is required to be paved using standard concrete, hot-mix asphalt,
or chip seal (TxDOT Standard 316 surface treatment). New technologies in parking lot
surfacing can be considered and approved at the discretion of the Planning and
Sec. 106-948, Architectural design guidelines
Redevelopment principles for single-family dwellings.
(1) Homes shall be no more than two stories in height.
(2) residential
construction. Common characteristic examples would be carpenter gothic features,
decorative peak trusses, single or two story porches with pillars or porticos, gable roofs,
window shutters, decorative period lighting, etc. Color schemes common during the time
should be utilized and are subject to approval by the Planning Director (ex. Contrasting,
bold, and earth tones are suggested).
(3) The primary material (minimum of 90%) shall be brick, stone, stucco, block, wood siding
or synthetic wood (such as Hardiplank).
(4) Sheet metal siding, plywood, and EIFS (Exterior Insulation Finishing System), synthetic
stucco, aluminum window frames, and burglar bars shall not be used are not permitted.
RECOMMENDED MOTION
I move that the Council adopt Ordinance 2020-3784 amending Chapter 106
Approved for the City Council meeting agenda
Corby D. Alexander, City Manager Date
ORDINANCE NO. 2020-3784
AN ORDINANCE AMENDING CHAPTER 106 OF THE CODE OF THE
CODE OF ORDINANCES OF THE CITY OF LA PORTE BY AMENDING REGULATIONS
RELATED TO PARKING SURFACE MATERIALS, COMMERCIAL AND INDUSTRIAL
USES, USE PERMITS, SHIPPING CONTAINERS, DESIGN STANDARDS, PARKING
REQIORMENTS, TREE PRESERVATION, AND LANDSCAPING; PROVIDING THAT
ANY PERSON VIOLATING THE TERMS OF THIS ORDINANCE SHALL BE
DEEMED GUILTY OF A MISDEMEANOR AND UPON CONVICTION SHALL BE
FINED IN A SUM NOT TO EXCEED TWO THOUSAND DOLLARS; PROVIDING
FOR THE PUBLICATION OF THE CAPTION HEREOF; CONTAINING A
SEVERABILITY CLAUSE; CONTAINING A REPEALING CLAUSE; FINDING
COMPLIANCE WITH THE OPEN MEETINGS ACT; AND PROVIDING AN EFFECTIVE
DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS:
Section 1: That the following definition contained in Section 106-
is
hereby amended and shall hereinafter read as follows:
Parking space means a surfaced area, paved with either concrete, hot-mix asphalt,
or chip seal (TxDOT Standard 316 surface treatment), enclosed or unenclosed, sufficient in size to
store one automobile together with a surfaced driveway connecting the parking space with the street
or alley permitting ingress and egress of an automobile. A parking space or any requisite
maneuvering area incidental thereto shall not occupy any public right-of-way. New technologies in
parking lot surfacing can be considered and approved at the discretion of the Planning and
Development Director or his/her designee.
Section 2: That the title to Section 106-216,
hereby amended and shall hereinafter read as follows:
-216. - General conditions for all special conditional uses in all zoning districts.
Section 3: That Section 106-310, of Chapter 106,
by adding
new -Warehouses and Self-
-310 by applicable NAICS Code in
proper numerical sequence, and shall hereinafter read as follows:
** NC MS GC MU BI LI HI
2017 2017 NAICS Title
NAICS
Code
531130 Lessors of Mini-warehouses P P P P P
and Self-Storage Units (Not
including Boat and RV
Storage)
531130 Boat and RV Storage C C C P P
Section 4: That Section 106-310, Table A, Commercial and Industrial Uses of Chapter 106,
by 1) adding
new Footnote 21, which shall be added in proper numerical sequence; 2) amending requirements for
including NAICS Code 425; and 3) use categories under NAICS Codes 493 and 493190, and which
use categories shall hereinafter read as follows:
** NC MS GC MU BI LI HI
2017 NAICS 2017 NAICS Title
Code
ЍЋ ŷƚƌĻƭğƌĻ ƩğķĻ
Motor Vehicle and Motor Vehicle Parts
4231
and Supplies Merchant Wholesalers
Furniture and Home Furnishing Merchant
4232
Wholesalers
21
P
Lumber and Other Construction Materials
19 19
4233 P P
Merchant Wholesalers
Professional and Commercial Equipment
4234
and Supplies Merchant Wholesalers
Metal Service Centers and Other Metal
42351
Merchant Wholesalers
Coal and Other Mineral Merchant
19
42352 P
Wholesalers
Household Appliances and Electrical and
2119 19
4236 P P P
Electronic Goods Merchant Wholesalers
Hardware, and Plumbing and Heating
4237
Equipment and Supplies Wholesalers
Machinery, Equipment, and Supplies
19
4238 C P
Merchant Wholesalers
21
P
Sporting and Recreational Goods and
18 18 19 19
423910 P P P P
Supplies Merchant Wholesalers
21
Toy and Hobby Goods and Supplies P
18 18 19 19
423920 P P P P
4
Merchant Wholesalers
Recyclable Material Merchant
423930 P
Wholesalers
Jewelry, Watch, Precious Stone, and
2119 19
423940 P P P
Precious Metal Merchant Wholesalers
Other Miscellaneous Durable Goods
2119 19
423990 P P P
Merchant Wholesalers
Paper and Paper Product Merchant
4241
Wholesalers
Drugs and Druggists' Sundries Merchant
4242
21
Wholesalers
P
19 19
P P
Apparel, Piece Goods, and Notions
4243
Merchant Wholesalers
Grocery and Related Product Merchant
4244
Wholesalers
Farm Product Raw Material Merchant
19 19
4245 P P
Wholesalers
Plastics Materials and Basic Forms and
2119 19
424610 P P P
Shapes Merchant Wholesalers
Other Chemical and Allied Products
2119 19
424690 P P P
Merchant Wholesalers
19 19
424710 Petroleum Bulk Stations and Terminals P P
Petroleum and Petroleum Products
2119 19
Merchant Wholesalers (except Bulk
424720 P P P
Stations and Terminals)
2119 19
424810 Beer and Ale Merchant Wholesalers P P P
Wine and Distilled Alcoholic Beverage
2119 19
424820 P P P
Merchant Wholesalers
19
424910 Farm Supplies Merchant Wholesalers C P
Book, Periodical, and Newspaper
42492
Merchant Wholesalers
Flower, Nursery Stock, and Florists'
42493
21
Supplies Merchant Wholesalers
P
19 19
P P
Paint, Varnish, and Supplies Merchant
42495
Wholesalers
Other Miscellaneous Nondurable Goods
42499
Merchant Wholesalers
21
P
Wholesale Electronic Markets and Agents
425 P P P
and Brokers
6 196 19
493 Warehousing and Storage P P
17
P
17 19
493190 Other Warehousing and Storage P
19
21. Total site area may not exceed two acres with a maximum building size of 15,000 sq. ft. A
special conditional use permit (SCUP) may be sought for individual sites in excess of two acres or
buildings greater than 15,000 sq. ft.
Section 5: That Section 106-334 Special use performance standards; residential, Subse
Shipping Containers
Texas, is hereby amended in its entirety and shall hereinafter read as follows:
Shipping containers. Single-family homes comprised and/or constructed of one
or more shipping containers are prohibited
Section 6: That Section 106-444
Texas, is hereby amended and shall hereinafter read as follows:
(b) Outdoor storage. Open and outdoor storage as an accessory or principal use provided that:
(1) The area is screened from view of neighboring residential uses or an abutting
residential district in compliance with section 106-444(a) (Special use performance
standards).
(2) Storage is screened from view from the public right-of-way in compliance
with section 106-444(a) (Special use performance standards)
(3) Storage area must be paved with either concrete, hot-mix asphalt,
or chip seal (TxDOT Standard 316 surface treatment). New technologies in paving
materials can be considered and approved at the discretion of the Planning and
Development Director or his/her designee.
(4) All lighting shall be hooded and so directed that the light source shall not be visible
from the public right-of-way or from neighboring residences and shall be in
compliance with section 106-310 footnote A (Lighting and glare).
Section 7 That Section 106-659
of
and shall hereinafter read as follows:
Sec. 106-659. - Special regulations and procedures.
(a) Procedure for establishing or developing a planned unit development district
development.
(1) An application for a special conditional use permit shall be filed and processed
based upon procedures established by sections 106-216 (General conditions for
all special conditional uses in all zoning districts), 106-217 (Conditions for
approval), and 106-218 (Amendments).
(2) An application for a general plan shall be filed and processed simultaneously with
the special conditional use permit and shall be subject to the requirements of this
chapter and the City Development Ordinance Number 1444 on file in the city
secretary's office.
(3) Submittal and filing of the general plan shall be according to Chapter 86 of this
Code and shall contain, in addition to the requirements of Chapter 86 of this Code,
the following information: General area wide development plan (general outline of
the site and surrounding area).
a. Uses.
b. Zoning.
c. Streets.
d. Grade or topography.
e. Density.
f. Utilities and drainage.
(4) The applicant shall submit a proposed schedule of construction. If the construction
of the proposed planned unit development is to be in stages, then the components
contained in each stage must be clearly delineated. The development schedule
shall indicate the approximate starting date and the completion date of the
complete development plan.
(5) A written description shall be submitted documenting the type of property control
that will be utilized to administer, control and maintain any common open space
or areas.
Section 8: That Section 106-741, ,
Ordinances of the City of La Porte, Texas, is hereby amended and shall hereinafter read as follows:
Sec. 106-741. - General provisions.
(a) No accessory buildings, uses or structures shall be erected or located in any required yard
other than the rear yard except:
(1) A detached private garage as defined, may be permitted in side yards, provided:
a. It complies with all the requirements of this section;
b. It shall be five feet or more from side lot lines; and
c. The side yard does not abut a street right-of-way.
(2) Accessory buildings built on a skid foundation, no larger than 120 square feet and no
more than one story in height may be located in utility easements in required rear
yards, except that they may not be located closer than three feet from a side or rear
property line or closer than six feet from any other structure.
(b) Accessory buildings, uses and structures, with the exception of those on residential large lots,
shall not exceed 15 feet in height, shall be three feet or more from all lot lines, shall be six
feet or more from any other building or structure on the same lot, and shall not be located
upon any utility easement.
(c) Utilization of shipping containers as an accessory use/structure in any residential zoning
district is prohibited.
(d) Private garage structures with vehicular access doors facing public alleys, as defined in the
public improvement construction policy and standards, shall be 20 feet or more from the alley
right-of-way. Detached garages located in rear yards of corner lots shall be set back a
minimum ten feet from the property line abutting the side street right-of-way.
(e) Detached private garages, as defined, may be 20 feet in height, or the height of the principal
structure, whichever is less.
(f) Floor area. See section 106-416 (Special regulations).
(1) Generally. No accessory building, or carport garage for single-family dwellings
shall occupy more than 25 percent of a rear yard, nor exceed 1,000 square feet of
floor area.
(2) Large lot residential only. Accessory buildings in single-family residential large
lots with one acre or more may not exceed 5,000 square feet of floor
area. Accessory buildings with a floor area in excess of 1,000 square feet must be
located at least 10 feet from any property line and 20 feet from other structures.
All accessory buildings on lots less than one acre - all provisions of this section
apply.
(g) No more than one detached private garage or carport structure on lots less than one acre with
single family dwelling.
(h) Wind generators, for producing electricity or other forms of energy shall not be located in
any yards other than the rear yard and must be set back 150 feet from all property lines or the
height of the structure, whichever is greater unless a special conditional use permit (SCUP)
is granted. Provisions of SCUP should take into consideration size, height, noise, location to
adjacent properties, etc.
(i) Reserved.
(j) No accessory uses or equipment except for air conditioning structures or condensers may be
located in a required side yard except for side yards abutting streets where equipment is fully
screened from view.
(k) Large lot district. The property owner of a toolhouse, barn, shed, storage building and/or
livestock in the large lot district on a tract one acre in size or larger authorized without a
principal structure on the property, shall be responsible for ensuring no one lives in the
toolhouse, barn, shed, or storage building without properly permitting the structure for
residential habitation, the property is kept in a sanitary condition and the property complies
with all applicable city regulations
Section 9: That Section 106-801, Alternative Landscaping Option,
the Code of Ordinances of the City of La Porte, Texas, is hereby amended by adding new
hereinafter read as follows:
All required landscaping shall be maintained throughout the useful life of
the development.
Section 10: That Section 106-839,
Code of Ordinances of the City of La Porte, Texas, is hereby amended by adding hopping Center
use as a category with applicable parking space requirements and which category shall be inserted in
the table immediately after the category for Public Administration use:
2017 NAICS 2017 NAICS MINIMUM NUMBER OF REQUIRED PARKING
Code Title SPACES
(combination)
N/A Shopping Center One space per 250 square feet of gross floor area.
Section 11: That Section 106-803, Tree Preservation
Ordinances of the City of La Porte, Texas, is hereby amended and shall hereinafter read as follows:
Sec. 106-803. - Tree preservation.
(a) It is the intent of this section to encourage the preservation of existing trees within
the city and to prohibit their unwarranted destruction. The city encourages site
planning which furthers the preservation of trees and natural areas by the following
methods: To protect trees during construction; to facilitate site design and
construction which contributes to the long term viability of existing trees; and to
control premature removal of trees; require on-site replacement of trees that must be
removed and require off-site replacement of trees that cannot be replaced on-site,
either by direct planting as outlined in section 106-802 (tree replacement) or through
a contribution to the tree fund established in section 106-803 (tree fund) of this
chapter. It is the further intent of this section to achieve the following objectives:
(1) Protect healthy trees and preserve the natural, environmental, and aesthetic
qualities of the city to the degree possible.
(2) Protect and increase the value of residential and commercial properties
within the city.
(3) Discourage premature clear-cutting of property.
(4) Maintain and enhance a positive image for the attraction of new
developments to the city.
(b) It shall be unlawful for any person to cause or permit the destruction of any healthy,
native tree (herein referred to as a "protected tree") within the city if such tree has a
trunk which exceeds six inches in diameter (or 18.84-inch circumference) at a point
18 inches above the natural ground level. Provided, however, it shall not be a
violation of this provision if a tree is removed and/or destroyed if the tree is
obviously diseased or determined to be diseased by an arborist or in the opinion of
the planning director or his designated representative, said tree constitutes a hazard
to pedestrian and/or vehicular traffic along any such right-of-way.
(c) No person, firm or corporation desirous of developing or improving any parcel of
property, shall remove or cause the removal of any tree from said property without
first obtaining a clearing permit which would allow clearing of buildable areas only.
(d) The provisions of this section are not applicable to single family subdivisions of
less than 5 acres, or property located within the Large Lot (LLD) zoning district
regardless of size.
Section 12: That Section 106-835, Standards (also see Figures 10-1, 10-2, and 10-
Porte, Texas, is hereby amended and shall hereinafter read as follows:
Surfacing. All areas for parking space and driveways shall be surfaced with materials
suitable to control dust and drainage. Driveways and stalls shall be surfaced with standard
concrete, hot-mix asphalt, or chip seal (TxDOT Standard 316 surface treatment) except
in the case of single family homes in the Large Lot (LLD) zoning district. For
the public right of way is required to be paved using standard concrete, hot-mix asphalt,
or chip seal (TxDOT Standard 316 surface treatment). New technologies in parking lot
surfacing can be considered and approved at the discretion of the Planning and
Development Director or his/her designee.
Section 13: That Section 106-948,
-
Ordinances of the City of La Porte, Texas, is hereby amended and shall hereinafter read as follows:
Redevelopment principles for single-family dwellings.
(1) Homes shall be no more than two stories in height.
(2) residential
construction. Common characteristic examples would be carpenter gothic features,
decorative peak trusses, single or two story porches with pillars or porticos, gable roofs,
window shutters, decorative period lighting, etc. Color schemes common during the
time should be utilized and are subject to approval by the Planning Director (ex.
Contrasting, bold, and earth tones are suggested).
(3) The primary material (minimum of 90%) shall be wood siding or synthetic wood (such
as Hardiplank).
(4) Sheet metal siding, plywood, and EIFS (Exterior Insulation Finishing System),
synthetic stucco, aluminum window frames, and burglar bars are not permitted.
(5) Original doors and/or windows that were blocked or covered, shall be restored to their
original appearance and functionality.
(6) A garage is not required, but there shall be sufficient space reserved for 2 car stalls on
the property. If a garage is desired, it shall be detached and offset to either the side or
rear yard, adhering to single-family detached area requirements.
(7) Detached garages must utilize a uniform façade to the primary living structure on the
property and cannot exceed a single-story in height.
(8) Placement of carports anywhere on site is not permitted.
(9) If a property is utilizing alleyway access to rear-offset garage, the alleyway must be
improved to-and-through the property lines and built to City of La Porte specifications.
(10) The Planning and Development Director or his/her designee shall approve the final
design elements.
Section 14. Any person, as defined in Section 1.07 (27), Texas Penal Code, who shall violate any provision
of the ordinance, shall be deemed guilty of a misdemeanor and upon conviction shall be punished by a fine
not to exceed TWO THOUSAND DOLLARS ($2,000.00).
Section 15. Each and every provision, paragraph, sentence and clause of this Ordinance has been separately
considered and passed by the City Council of the City of La Porte, Texas, and each said provision would have
been separately passed without any other provision, and if any provision hereof shall be ineffective, invalid or
unconstitutional, for any cause, it shall not impair or affect the remaining portion, or any part thereof, but the
valid portion shall be in force just as if it had been passed alone.
Section 16. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such
conflict only.
Section 17. The City Council officially finds, determines, recites and declares that a sufficient written notice
of the date, hour, place and subject of this meeting of the City Council is posted at a place convenient to
the public at the City Hall of the city for the time required by law preceding this meeting, as required by
Chapter 551, TX. Code; and that this meeting has been open to the public as required by law at all
times during which this ordinance and the subject matter thereof has been discussed, considered and
formally acted upon. The City Council further ratifies, approves and confirms such written notice and the
contents and posting thereof.
Section 18. This Ordinance shall be effective fourteen (14) days after its passage and approval. The City
Secretary shall give notice of the passage of this ordinance by causing the caption hereof to be published in
the official newspaper of the City of La Porte at least once within ten (10) days after the passage of this
ordinance.
th
PASSED AND APPROVED this the 9 day of MARCH, 2020.
CITY OF LA PORTE, TEXAS
By:
Louis R. Rigby, Mayor
ATTEST:
Lee Woodward, City Secretary
APPROVED AS TO FORM:
Clark T. Askins, Assist. City Attorney
ORDINANCE NO. 2020-3784
AN ORDINANCE AMENDING CHAPTER 106 OF THE CODE OF THE
CODE OF ORDINANCES OF THE CITY OF LA PORTE BY AMENDING REGULATIONS
RELATED TO PARKING SURFACE MATERIALS, COMMERCIAL AND INDUSTRIAL
USES, USE PERMITS, SHIPPING CONTAINERS, DESIGN STANDARDS, PARKING
REQIORMENTS, TREE PRESERVATION, AND LANDSCAPING; PROVIDING THAT
ANY PERSON VIOLATING THE TERMS OF THIS ORDINANCE SHALL BE
DEEMED GUILTY OF A MISDEMEANOR AND UPON CONVICTION SHALL BE
FINED IN A SUM NOT TO EXCEED TWO THOUSAND DOLLARS; PROVIDING
FOR THE PUBLICATION OF THE CAPTION HEREOF; CONTAINING A
SEVERABILITY CLAUSE; CONTAINING A REPEALING CLAUSE; FINDING
COMPLIANCE WITH THE OPEN MEETINGS ACT; AND PROVIDING AN EFFECTIVE
DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS:
Section 1: That the following definition contained in Section 106-
is
hereby amended and shall hereinafter read as follows:
Parking space means a surfaced area, designed to control dust and moisture paved with either
concrete, hot-mix asphalt, or chip seal (TxDOT Standard 316 surface treatment), enclosed or
unenclosed, sufficient in size to store one automobile together with a surfaced driveway connecting
the parking space with the street or alley permitting ingress and egress of an automobile. A parking
space or any requisite maneuvering area incidental thereto shall not occupy any public right-of-way.
New technologies in parking lot surfacing can be considered and approved at the discretion of the
Planning and Development Director or his/her designee.
Section 2: That the title to Section 106-216,
hereby amended and shall hereinafter read as follows:
-216. - General conditions for all special conditional uses in all zoning districts.
Section 3: That Section 106-310, of Chapter 106,
by adding
new -Warehouses and Self-
-310 by applicable NAICS Code in
proper numerical sequence, and shall hereinafter read as follows:
** NC MS GC MU BI LI HI
2017 2017 NAICS Title
NAICS
Code
531130 Lessors of Mini-warehouses P P P P P
and Self-Storage Units (Not
including Boat and RV
Storage)
531130 Boat and RV Storage C C C P P
Section 4: That Section 106-310, Table A, Commercial and Industrial Uses of Chapter 106,
by 1) adding
new Footnote 21, which shall be added in proper numerical sequence; 2) amending requirements for
use categories under NAICS , from NAICS Code 4231 through and
including NAICS Code 425; and 3) use categories under NAICS Codes 493 and 493190, and which
use categories shall hereinafter read as follows:
** NC MS GC MU BI LI HI
2017 NAICS 2017 NAICS Title
Code
ЍЋ ŷƚƌĻƭğƌĻ ƩğķĻ
Motor Vehicle and Motor Vehicle Parts
4231
and Supplies Merchant Wholesalers
Furniture and Home Furnishing Merchant
4232
Wholesalers
C
Lumber and Other Construction Materials
21
19 19
P
4233 P P
Merchant Wholesalers
Professional and Commercial Equipment
4234
and Supplies Merchant Wholesalers
Metal Service Centers and Other Metal
42351
Merchant Wholesalers
Coal and Other Mineral Merchant
19
42352 P
Wholesalers
Household Appliances and Electrical and
C
4236
Electronic Goods Merchant Wholesalers
21
19 19
P
P P
Hardware, and Plumbing and Heating
4237
Equipment and Supplies Wholesalers
19
4238 C P
Machinery, Equipment, and Supplies
Merchant Wholesalers
C
Sporting and Recreational Goods and
21
18 18 19 19
P
423910 P P P P
Supplies Merchant Wholesalers
C
Toy and Hobby Goods and Supplies
18 18 19 19
423920 P P P P
21
P
Merchant Wholesalers
4
Recyclable Material Merchant
423930 P
Wholesalers
C
Jewelry, Watch, Precious Stone, and
19 19
423940 P P
Precious Metal Merchant Wholesalers
21
P
C
Other Miscellaneous Durable Goods
19 19
423990 P P
Merchant Wholesalers
21
P
Paper and Paper Product Merchant
4241
Wholesalers
Drugs and Druggists' Sundries Merchant
C
4242
Wholesalers
21
19 19
P
P P
Apparel, Piece Goods, and Notions
4243
Merchant Wholesalers
Grocery and Related Product Merchant
4244
Wholesalers
Farm Product Raw Material Merchant
19 19
4245 P P
Wholesalers
C
Plastics Materials and Basic Forms and
19 19
424610 P P
Shapes Merchant Wholesalers
21
P
C
Other Chemical and Allied Products
19 19
424690 P P
Merchant Wholesalers
21
P
19 19
424710 Petroleum Bulk Stations and Terminals P P
Petroleum and Petroleum Products
C
19 19
Merchant Wholesalers (except Bulk
424720 P P
21
P
Stations and Terminals)
C
19 19
424810 Beer and Ale Merchant Wholesalers P P
21
P
C
Wine and Distilled Alcoholic Beverage
19 19
424820 P P
Merchant Wholesalers
21
P
19
424910 Farm Supplies Merchant Wholesalers C P
Book, Periodical, and Newspaper
42492
Merchant Wholesalers
Flower, Nursery Stock, and Florists'
C
42493
Supplies Merchant Wholesalers
21
19 19
P
P P
Paint, Varnish, and Supplies Merchant
42495
Wholesalers
Other Miscellaneous Nondurable Goods
42499
Merchant Wholesalers
C
Wholesale Electronic Markets and Agents
21
P
425 P P P
and Brokers
6 196 19
493 Warehousing and Storage P P
17
P
17 19
493190 Other Warehousing and Storage P
19
21. Total site area may not exceed two acres with a maximum building size of 15,000 sq. ft. A
special conditional use permit (SCUP) may be sought for individual sites in excess of two acres or
buildings greater than 15,000 sq. ft.
Section 5: That Section 106-334 Special use performance standards; residential, Subsection
Shipping Containers
Texas, is hereby amended in its entirety and shall hereinafter read as follows:
Shipping containers. Single-family homes comprised and/or constructed of one
or more shipping containers are prohibited. permitted within all residential zoning
districts with the following conditions:
(1) Any and all exposed container parent material shall be clad with one or a
combination of the following materials: Masonry materials, stucco, wood siding,
synthetic wood (such as hardie board), or alternative materials with approval
from the planning director. No portion of the original shipping container exterior
is allowed to be visible at any time.
(2) Homes constructed out of shipping containers are not permitted in the Main
Street or Main Street Overlay (MSD/MSDO) zoning districts.
Section 6: That Section 106-444
Texas, is hereby amended and shall hereinafter read as follows:
(b) Outdoor storage. Open and outdoor storage as an accessory or principal use provided that:
(1) The area is screened from view of neighboring residential uses or an abutting
residential district in compliance with section 106-444(a) (Special use performance
standards).
(2) Storage is screened from view from the public right-of-way in compliance
with section 106-444(a) (Special use performance standards)
(3) Storage area is grassed or surfaced to control dust must be paved with either concrete,
hot-mix asphalt, or chip seal (TxDOT Standard 316 surface treatment). New
technologies in paving materials can be considered and approved at the discretion of
the Planning and Development Director or his/her designee.
(4) All lighting shall be hooded and so directed that the light source shall not be visible
from the public right-of-way or from neighboring residences and shall be in
compliance with section 106-310 footnote A (Lighting and glare).
Section 7 That Section 106-659
of
and shall hereinafter read as follows:
Sec. 106-659. - Special regulations and procedures.
(a) Procedure for establishing or developing a planned unit development district
development.
(1) An application for a special conditional use permit shall be filed and processed
based upon procedures established by sections 106-216 (General conditions for
all special conditional uses in all zoning districts), 106-217 (Conditions for
approval), and 106-218 (Amendments).
(2) An application for a general plan shall be filed and processed simultaneously with
the special conditional use permit and shall be subject to the requirements of this
chapter and the City Development Ordinance Number 1444 on file in the city
secretary's office.
(3) Submittal and filing of the general plan shall be according to Chapter 86 of this
Code the Development Ordinance Number 1444 on file in the city secretary's office
and shall contain, in addition to the requirements of Chapter 86 of this Code the
Development Ordinance Number 1444 on file in the city secretary's office, the
following information: General area wide development plan (general outline of the
site and surrounding area).
a. Uses.
b. Zoning.
c. Streets.
d. Grade or topography.
e. Density.
f. Utilities and drainage.
(4) The applicant shall submit a proposed schedule of construction. If the construction
of the proposed planned unit development is to be in stages, then the components
contained in each stage must be clearly delineated. The development schedule
shall indicate the approximate starting date and the completion date of the
complete development plan.
(5) A written description shall be submitted documenting the type of property control
that will be utilized to administer, control and maintain any common open space
or areas.
Section 8: That Section 106-741, ,
Ordinances of the City of La Porte, Texas, is hereby amended and shall hereinafter read as follows:
Sec. 106-741. - General provisions.
(a) No accessory buildings, uses or structures shall be erected or located in any required yard
other than the rear yard except:
(1) A detached private garage as defined, may be permitted in side yards, provided:
a. It complies with all the requirements of this section;
b. It shall be five feet or more from side lot lines; and
c. The side yard does not abut a street right-of-way.
(2) Accessory buildings built on a skid foundation, no larger than 120 square feet and no
more than one story in height may be located in utility easements in required rear
yards, except that they may not be located closer than three feet from a side or rear
property line or closer than six feet from any other structure.
(b) Accessory buildings, uses and structures, with the exception of those on residential large lots,
shall not exceed 15 feet in height, shall be three feet or more from all lot lines, shall be six
feet or more from any other building or structure on the same lot, and shall not be located
upon any utility easement.
(c) Utilization of shipping containers as an accessory use/structure in any residential zoning
district is prohibited.
(d) Private garage structures with vehicular access doors facing public alleys, as defined in the
public improvement construction policy and standards, shall be 20 feet or more from the alley
right-of-way. Detached garages located in rear yards of corner lots shall be set back a
minimum ten feet from the property line abutting the side street right-of-way.
(e) Detached private garages, as defined, may be 20 feet in height, or the height of the principal
structure, whichever is less.
(f) Floor area. See section 106-416 (Special regulations).
(1) Generally. No accessory building, or carport garage for single-family dwellings
shall occupy more than 25 percent of a rear yard, nor exceed 1,000 square feet of
floor area.
(2) Large lot residential only. Accessory buildings in single-family residential large
lots with one acre or more may not exceed 5,000 square feet of floor
area. Accessory buildings with a floor area in excess of 1,000 square feet must be
located at least 10 feet from any property line and 20 feet from other structures.
All accessory buildings on lots less than one acre - all provisions of this section
apply.
(g) No more than one detached private garage or carport structure on lots less than one acre with
single family dwelling.
(h) Wind generators, for producing electricity or other forms of energy shall not be located in
any yards other than the rear yard and must be set back 150 feet from all property lines or the
height of the structure, whichever is greater unless a special conditional use permit (SCUP)
is granted. Provisions of SCUP should take into consideration size, height, noise, location to
adjacent properties, etc.
(i) Reserved.
(j) No accessory uses or equipment except for air conditioning structures or condensers may be
located in a required side yard except for side yards abutting streets where equipment is fully
screened from view.
(k) Large lot district. The property owner of a toolhouse, barn, shed, storage building and/or
livestock in the large lot district on a tract one acre in size or larger authorized without a
principal structure on the property, shall be responsible for ensuring no one lives in the
toolhouse, barn, shed, or storage building without properly permitting the structure for
residential habitation, the property is kept in a sanitary condition and the property complies
with all applicable city regulations
Section 9: That Section 106-801, Alternative Landscaping Option,
the Code of Ordinances of the City of La Porte, Texas, is hereby amended by adding new
hereinafter read as follows:
All required landscaping shall be maintained throughout the useful life of
the development.
Section 10: That Section 106-839,
Code of Ordinances of the City of La Porte, Texas, is hereby amended by adding hopping Center
use as a category with applicable parking space requirements and which category shall be inserted in
the table immediately after the category for Public Administration use:
2017 NAICS 2017 NAICS MINIMUM NUMBER OF REQUIRED PARKING
Code Title SPACES
(combination)
N/A Shopping Center One space per 250 square feet of gross floor area.
Section 11: That Section 106-803, Tree Preservation
Ordinances of the City of La Porte, Texas, is hereby amended and shall hereinafter read as follows:
Sec. 106-803. - Tree preservation.
(a) It is the intent of this section to encourage the preservation of existing trees within
the city and to prohibit their unwarranted destruction. The city encourages site
planning which furthers the preservation of trees and natural areas by the following
methods: To protect trees during construction; to facilitate site design and
construction which contributes to the long term viability of existing trees; and to
control premature removal of trees; require on-site replacement of trees that must be
removed and require off-site replacement of trees that cannot be replaced on-site,
either by direct planting as outlined in section 106-802 (tree replacement) or through
a contribution to the tree fund established in section 106-803 (tree fund) of this
chapter. It is the further intent of this section to achieve the following objectives:
(1) Protect healthy trees and preserve the natural, environmental, and aesthetic
qualities of the city to the degree possible.
(2) Protect and increase the value of residential and commercial properties
within the city.
(3) Discourage premature clear-cutting of property.
(4) Maintain and enhance a positive image for the attraction of new
developments to the city.
(b) It shall be unlawful for any person to cause or permit the destruction of any healthy,
native tree (herein referred to as a "protected tree") within the city if such tree has a
trunk which exceeds six inches in diameter (or 18.84-inch circumference) at a point
18 inches above the natural ground level. Provided, however, it shall not be a
violation of this provision if a tree is removed and/or destroyed if the tree is
obviously diseased or determined to be diseased by an arborist or in the opinion of
the planning director or his designated representative, said tree constitutes a hazard
to pedestrian and/or vehicular traffic along any such right-of-way.
(c) No person, firm or corporation desirous of developing or improving any parcel of
property, shall remove or cause the removal of any tree from said property without
first obtaining a clearing permit which would allow clearing of buildable areas only.
(d) The provisions of this section are not applicable to individual single family lots
single family subdivisions of less than 5 acres, or property located within the
Large Lot (LLD) zoning district regardless of size.
Section 12: That Section 106-835, -1, 10-2, and 10-
Porte, Texas, is hereby amended and shall hereinafter read as follows:
f) Surfacing. All areas for parking space and driveways shall be surfaced with materials
suitable to control dust and drainage. Except in the case of single-family and two-family
dwellings in the Large Lot (LLD) zoning district, d Driveways and stalls shall be surfaced
with standard concrete, hot-mix asphalt, or chip seal (TxDOT Standard 316 surface
treatment) in conformance with the public improvements criteria manual (PICM), except
in the case of single family homes in the Large Lot (LLD) zoning district. For
the public right of way is required to be paved using standard concrete, hot-mix asphalt,
or chip seal (TxDOT Standard 316 surface treatment). New technologies in parking lot
surfacing can be considered and approved at the discretion of the Planning and
Development Director or his/her designee.
Section 13: That Section 106-948,
-
Ordinances of the City of La Porte, Texas, is hereby amended and shall hereinafter read as follows:
Redevelopment principles for single-family dwellings.
(1) Homes shall be no more than two stories in height.
(2) residential
construction. Common characteristic examples would be carpenter gothic features,
decorative peak trusses, single or two story porches with pillars or porticos, gable roofs,
window shutters, decorative period lighting, etc. Color schemes common during the
time should be utilized and are subject to approval by the Planning Director (ex.
Contrasting, bold, and earth tones are suggested).
(3) The primary material (minimum of 90%) shall be brick, stone, stucco, block, wood
siding or synthetic wood (such as Hardiplank).
(4) Sheet metal siding, plywood, and EIFS (Exterior Insulation Finishing System),
synthetic stucco, aluminum window frames, and burglar bars shall not be used are not
permitted.
(5) Where o Original doors and/or windows that were blocked or covered, those openings
should shall be restored to their original appearance and functionality.
(6) A garage is not required, but there shall be sufficient space reserved for 2 car stalls on
the property. If a garage is desired, it shall be detached and offset to either the side or
rear yard, adhering to single-family detached area requirements.
(7) Detached garages must utilize a uniform façade to the primary living structure on the
property and cannot exceed a single-story in height.
(8) Placement of carports anywhere on site is not permitted.
(9) If a property is utilizing alleyway access to rear-offset garage, the alleyway must be
improved to-and-through the property lines and built to City of La Porte specifications.
(10) The Planning and Development Director or his/her designee shall approve the final
design elements.
Section 14. Any person, as defined in Section 1.07 (27), Texas Penal Code, who shall violate any provision
of the ordinance, shall be deemed guilty of a misdemeanor and upon conviction shall be punished by a fine
not to exceed TWO THOUSAND DOLLARS ($2,000.00).
Section 15. Each and every provision, paragraph, sentence and clause of this Ordinance has been separately
considered and passed by the City Council of the City of La Porte, Texas, and each said provision would have
been separately passed without any other provision, and if any provision hereof shall be ineffective, invalid or
unconstitutional, for any cause, it shall not impair or affect the remaining portion, or any part thereof, but the
valid portion shall be in force just as if it had been passed alone.
Section 16. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such
conflict only.
Section 17. The City Council officially finds, determines, recites and declares that a sufficient written notice
of the date, hour, place and subject of this meeting of the City Council is posted at a place convenient to
the public at the City Hall of the city for the time required by law preceding this meeting, as required by
Chapter 551, TX. Code; and that this meeting has been open to the public as required by law at all
times during which this ordinance and the subject matter thereof has been discussed, considered and
formally acted upon. The City Council further ratifies, approves and confirms such written notice and the
contents and posting thereof.
Section 18. This Ordinance shall be effective fourteen (14) days after its passage and approval. The City
Secretary shall give notice of the passage of this ordinance by causing the caption hereof to be published in
the official newspaper of the City of La Porte at least once within ten (10) days after the passage of this
ordinance.
th
PASSED AND APPROVED this the 9 day of MARCH, 2020.
CITY OF LA PORTE, TEXAS
By:
Louis R. Rigby, Mayor
ATTEST:
Lee Woodward, City Secretary
APPROVED AS TO FORM:
Clark T. Askins, Assist. City Attorney
City of La PortePlanning and Development Department
Established 1892 Teresa Evans, Director
February 19, 2020
Honorable Mayor Rigby and City Council
City of La Porte
RE:Proposed Ordinance Amending Chapter 106 “Zoning”
Dear Mayor Rigby and City Council:
The La Porte Planning and Zoning Commission held a public hearing at the January 16, 2020
meeting to consider approval of an ordinance amending certain provisions of Chapter 106
(Zoning) of the City ofLa Porte’s Code of Ordinances based on the annual review conducted by
the Commission.
The Commission voted 9-0 to recommend approval of the provisions as included in the drafted
ordinance presented in the Request for City Council Agenda Item.
Respectfully submitted,
Ian Clowes, City Planner
On behalf of thePlanning and Zoning Commission
City of La Porte 604 W. Fairmont Parkway Phone: (281) 471-5020
Planning and Development La Porte, TX 77571-6215 Fax: (281) 470-5005
www.laportetx.gov
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: March 9, 2020
Source of Funds: N/A
Requested By: Lorenzo Wingate, Asst. Director
Department: Public Works
Account Number: N/A
Amount Budgeted: N/A
Report Resolution Ordinance
Amount Requested: N/A
Exhibits: Area map, Approved IDAOrdinance 2020-IDA-138, Water
Budgeted Item: Yes No
Service Request and Supporting Docs, Water Service
Application and Water Service Agreement
SUMMARY
Truck Locker Houston, LLC has approached the City of La Porte for a water service
agreement for a proposed facility located at 11210 Fairmont Parkway, in the Bayport
Industrial District. The project is intended to be a three-acre development for the
purpose of providing a lighted and secured site for the storage of chassis, containers,
equipment, and trucks. Domestic water use is planned for a small office building only.
There is no intent for truck washing or a wash rack at this location. This site intends to
utilize an on-site aerobic sewage treatment unit. This installation will require permitting
and inspection by Harris County and routine maintenance by a licensed technician.
The City Council has approved a policy to provide water and sanitary sewer service to
These companies are required by policy to maintain a current Industrial District
Agreement (IDA) with the City. Additionally, the applicant is subject to an administrative
fee of $5,000. As required, a non-refundable payment of twenty-five percent (25%) of
the total administrative fees has been received, with the remaining balance ($3,750) to
be paid upon approval of the water service agreement.
If approved, the terms of Water Service Agreement will expire on December 31, 2031,
plus any renewals or extensions thereof. However, these agreements will automatically
expire at such time as there is no effective Industrial District Agreement between the
parties, or if the City exercises its right of termination.
Staff has placed this item in Statutory Agenda section to allow Council to either approve
as submitted or direct staff to go back to the applicant and negotiate the water service
agreement in lieu of the applicant storing hazardous materials/containers on-site,
stacking of containers or any other concerns Council may have due to proximity of
residential neighbors to the north, northeast and northwest.
RECOMMENDED MOTION
Approve as submitted by applicant:
I move to authorize the City Manager to execute a Water Service Agreement with
Truck Locker Houston, LLC for its proposed facility at 11210 Fairmont Parkway,
in the Bayport Industrial District.
Direct staff to negotiate terms:
I move to direct staff to negotiate with Truck Locker Houston, LLC a Water
Service Agreement in lieu of Truck Locker Houston storing hazardous
materials/containers on-site, stacking of containers or any other concerns
Council may have due to proximity of residential neighbors to the north,
northeast and northwest.
Approved for the City Council meeting agenda
Corby D. Alexander, City Manager Date
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: March 9, 2020
Requested By: Mayor Rigby Source of Funds: N/A
Department:
Account Number: N/A
Amount Budgeted: N/A
Report Resolution Ordinance
Amount Requested: N/A
Exhibits: None
Budgeted Item: Yes No
SUMMARY
The following individuals have committed to work the May 2, 2020, General Election as Judges and Alternate
Judges for May 2, 2020. The City Secretary is the Early Voting Clerk for the election, there are no Judges or
Alternate Judges for Early Voting. Chapter 32.005 of the Texas Election Code outlines the majority of such
appointments of judges generally.
Chapter 127 addresses the staffing of and procedures for the Central Counting Station. The governing body
appoints the Central Counting Manager (127.002), Judge (127.005), Tabulation Supervisor (127.003),
Tabulation Supervisor Assistants (127.004). The Manager and Judge may appoint clerks (127.006), if needed.
Employees of the political subdivision may work in Central Counting.
Election Day
City Hall Early Voting Ballot Board, City Hall
Judge Mary Ann Trainer Judge Misty Bryan
Alternate Judge Debbie Yancey Alternate Judge Jill McLain
LPISD ITC Building Central Counting Station, City Hall
Judge Isabelle Salas Manager Lee Woodward
Alternate Judge Bonnie Garrison Judge Jana Wood
Tabulation Supervisor Sharon Harris
College Park Tabulation Supervisor Assistant Gladis
Judge Alice Keener Sanchez
Alternate Judge Cambria Beasley
Additionally, per EC 32.033. the authority that appoints the election judges shall prescribe the maximum number
of clerks that each presiding judge may appoint for each election (the presiding judge for an election precinct
shall appoint at least two clerks). Due to the necessity to have four-five persons working in a polling location at
RECOMMENDED MOTION
I move to approve the list of Judges and Alternate Judges, as presented, for the
General Election on May 2, 2020, and to prescribe that each presiding judge of
an election day election precinct appoint no more than six clerks.