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HomeMy WebLinkAbout03-14-22 LOUIS R. RIGBY BILL BENTLEY Mayor CouncilpersonDistrict 3 BRANDON LUNSFORD THOMAS GARZA CouncilpersonAt Large A CouncilpersonDistrict 4 BRENT McCAULLEY JAY MARTIN CouncilpersonAt Large B Mayor Pro Tem MANDI WILLIAMS CouncilpersonDistrict 5 CouncilpersonDistrict 1 ROBBIE McLARRIN CHUCK ENGELKEN CouncilpersonDistrict 6 Councilperson District 2 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF LA PORTE FEBRUARY 28, 2022 The City Council of the City of La Portemet in a regularmeetingonMonday, February 28, 2022,at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 6:00p.m.,withthe following in attendance: Councilpersons present: Louis Rigby,Brandon Lunsford, Brent McCaulley, Mandi Williams, Chuck Engelken,Bill Bentley, Thomas Garza,Jay Martin,Robbie McLarrin Councilpersons attending remotely: None Councilpersons absent: None Council-appointed officers present:Corby Alexander, City Manager;Lee Woodward, City Secretary; Clark Askins, AssistantCity Attorney CALL TO ORDER Mayor Rigbycalled the meeting to order at6:02 p.m. 2.INVOCATION The invocation was given by Mayor Pro Tem Martinand pledgeswereled by Councilperson Brent McCaulley. 3.PRESENTATIONS, PROCLAMATIONS, AND RECOGNITIONS a.Police Department -Best Practices Re-Recognition Presentation. \[Louis R. Rigby, Mayor\] 4.CITIZENCOMMENT(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.) RichardC.Anderson of International Code Council spoke in support ofadoptingtheir products. Joseph Thomasof Cortez-NorrisAmerican Legion Post #319spoke of renaming their Postand loaned a framed photo of Cody Norristo the City until the Post has a physical location. 5.CONSIDERATION OF COUNCILPERSON ABSENCES a.Presentation, discussion, and possible action to consider excusing the absence of Councilperson Brandon Lunsford from the February 14, 2022, City Council meeting, in accordance with the City Council Attendance Policy. \[Louis R. Rigby, Mayor\] Councilperson Garzamoved to excuse the absenceof Councilperson Brandon Lunsford from the February 14, 2022, City Council meeting; the motion was seconded by Councilperson McCaulley; the motion was adopted, 9-0. 6.CONSENTAGENDA(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 regular City Council meeting held on February 14, 2022. \[Louis R. Rigby, Mayor\] b. Adopt Ordinance 2022-3866 to update the City's records and information management program. \[Lee Woodward, City Secretary\] c. Approve sponsorship agreement with the Houston Yacht Club for the hosting of regattas in 2022. \[Corby Alexander, City Manager\] Councilperson Garza moved to amend item c by inserting four before events in item 1 in the benefits to the City section in Article I (to read Commitment to host four events for City-related functions at the Houston Yacht Club); the motion was seconded by Mayor Pro Tem Martin; the motion was adopted, 9-0. Councilperson Bentley moved to approve consent agenda (including item c, as amended); the motion was seconded by Councilperson Garza; the motion was adopted, 9-0. 7. PUBLIC HEARING AND ASSOCIATED ORDINANCES a. The City Council will hold a public hearing to receive comments regarding a recommendation by the Planning and Zoning Commission to adopt Ordinance 2022-3869 Special Conditional Use Permit #22-91000001, to allow for a secondary dwelling unit on a 0.53-acre tract of land located at 9305 Carlow Lane and legally described as Lots 67 & 68, Block 4, Spenwick Place Section 1, Harris County, Texas in the Low Density Residential (R- 1) zoning district; followed by discussion and possible action to consider adopting Ordinance 2022-3869 amending the Code of Ordinances of the City of La Porte, Chapter 106 -91000001 to allow for a secondary dwelling unit on a 0.53-acre tract of land located at 9305 Carlow Lane and legally described as Lots 67 & 68, Block 4, Spenwick Place Section 1, Harris County, Texas in the Low Density Residential (R-1) zoning district. \[Teresa Evans, Planning & Development Director\] Mayor Rigby opened the public hearing at 6:34 p.m. The homeowner, Melaney Gibbs, answered Council questions concerning the proposed construction. Mayor Rigby closed the public hearing at 6:41 p.m. Mayor Pro Tem Martin moved to adopt Ordinance 2022-3869 amending the Code of Ordinances - 91000001 to allow for a secondary dwelling unit on a 0.53-acre tract of land located at 9305 Carlow Lane and legally described as Lots 67 & 68, Block 4, Spenwick Place Section 1, Harris County, Texas in the Low Density Residential (R-1) zoning district; the motion was seconded by Councilperson Bentley; the motion was adopted, 9-0. b. The City Council will hold a public hearing to receive comments regarding a recommendation by the Planning and Zoning Commission to adopt Ordinance 2022-3870 Zone Change #22-92000001, a change from Medium Density Residential (R-2) to Low Density Residential (R-1) for an 11.3-acre tract of land located along Ashton Lane and Oakhaven Road and legally described as Lots 45-53, Block 8, Brookglen Section 2; Tract 17D, Abstract 482 W Jones; Lot 1, Block 1, Rigo Estates; and Lots 1-5, Block 1, Risen Valley, Harris County, Texas; followed by discussion, and possible action to consider adopting Ordinance 2022- granting Zone Change #22-92000001, a change from Mid Density Residential (R-2) to Low Density Residential (R-1) for an 11.3-acre tract of land located along Ashton Lane and Oakhaven Road and legally described as Lots 45-53, Block 8, Brookglen Section 2; Tract 17D, Abstract 482 W Jones; Lot 1, Block 1, Rigo Estates; and Lots 1-5, Block 1, Risen Valley, Harris County, Texas. \[Teresa Evans, Planning & Development Director\] Mayor Rigby opened the public hearing at 6:48 p.m. Mark Follis, Planning and Zoning Commission member, spoke in support of the item. Mayor Rigby closed the public hearing at 6:54 p.m. Councilperson Engelken moved to adopt Ordinance 2022-3870 amending the Code of Ordinances Zone Change #22-92000001, a change from Mid Density Residential (R-2) to Low Density Residential (R-1) for an 11.3-acre tract of land located along Ashton Lane and Oakhaven Road and legally described as Lots 45-53, Block 8, Brookglen Section 2; Tract 17D, Abstract 482 W Jones; Lot 1, Block 1, Rigo Estates; and Lots 1-5, Block 1, Risen Valley, Harris County, Texas; the motion was seconded by Councilperson Bentley; the motion was adopted, 8-1, Councilperson Garza voting against. c. The City Council will hold a public hearing to receive comments regarding a recommendation by the Planning and Zoning Commission to adopt Ordinance 2022-3871 Zone Change #22-92000002, a change from Medium Density Residential (R-2) to Low Density Residential (R-1) for a 9.98-acre tract of land located within the Pecan Crossing subdivision, Section 1 and legally described as Lots 1-9, Block 1 and Lots 1-30, Block 3, Pecan Crossing Section 1, and a portion of Tract 714A, La Porte Outlots, Harris County, Texas; followed by discussion, and possible action to consider adopting Ordinance 2022-3871 amending the #22-92000002, a change from Mid Density Residential (R-2) to Low Density Residential (R-1) for a 9.98-acre tract of located within the Pecan Crossing subdivision, Section 1 and legally described as Lots 1-9, Block 1 and Lots 1-30, Block 3, Pecan Crossing Section 1, and a portion of Tract 714A, La Porte Outlots, Harris County, Texas. \[Teresa Evans, Planning & Development Director\] Mayor Rigby opened the public hearing at 7:08 p.m. Mark Follis, Planning and Zoning Commission member, spoke in support of the item. Mayor Rigby closed the public hearing at 7:11 p.m. Councilperson Engelken moved to adopt Ordinance 2022-3871 amending the Code of Ordinances -92000002, a change from Mid Density Residential (R-2) to Low Density Residential (R-1) for a 9.98-acre tract of located within the Pecan Crossing subdivision, Section 1 and legally described as Lots 1-9, Block 1 and Lots 1-30, Block 3, Pecan Crossing Section 1, and a portion of Tract 714A, La Porte Outlots, Harris County, Texas; the motion was seconded by Councilperson Bentley; the motion was adopted, 8-1, Councilperson Garza voting against. d. The City Council will hold a public hearing to receive comments regarding a recommendation by the Planning and Zoning Commission to adopt Ordinance 2022-3872 amending the Code of Ordinances of t Zone Change #22-92000003, a change from Medium Density Residential (R-2) to Low Density Residential (R-1) for a 19.5-acre tract of land located within the Pecan Crossing subdivision, Section 4 and the Summer Winds subdivision Section 3 and legally described as Lots 30- 36, Block 6, Lots 72-78, Block 1, Lots 11-15, Block 7, Lots 6 & 12, Block 8, Reserve A, Block 1, Pecan Crossing Section 4; Lots 8-20, Block 1, Lots 1-4, Block 3, and Reserve A, Block 1, Summer Winds Section 3 Amending; and Lot 696B, La Porte Outlots, Harris County, Texas; followed by discussion, and possible action to consider adopting Ordinance 2022-3872 Zone Change #22-92000003, a change from Mid Density Residential (R-2) to Low Density Residential (R-1) for a 19.5-acre tract of land located within the Pecan Crossing subdivision, Section 4 and the Summer Winds subdivision Section 3 and legally described as Lots 30- 36, Block 6, Lots 72-78, Block 1, Lots 11-15, Block 7, Lots 6 & 12, Block 8, Reserve A, Block 1, Pecan Crossing Section 4; Lots 8-20, Block 1, Lots 1-4, Block 3, and Reserve A, Block 1, Summer Winds Section 3 Amending; and Lot 696B, La Porte Outlots, Harris County, Texas. \[Teresa Evans, Planning & Development Director\] Mayor Rigby opened the public hearing at 7:13 p.m. Mark Follis, Planning and Zoning Commission member, spoke on the parcel with communications equipment. Mayor Rigby closed the public hearing at 7:23 p.m. Councilperson Engelken moved to adopt Ordinance 2022-3872 amending the Code of Ordinances of the City of -92000003, a change from Mid Density Residential (R-2) to Low Density Residential (R-1) for a 19.5-acre tract of land located within the Pecan Crossing subdivision, Section 4 and the Summer Winds subdivision Section 3 and legally described as Lots 30-36, Block 6, Lots 72-78, Block 1, Lots 11-15, Block 7, Lots 6 & 12, Block 8, Reserve A, Block 1, Pecan Crossing Section 4; Lots 8-20, Block 1, Lots 1-4, Block 3, and Reserve A, Block 1, Summer Winds Section 3 Amending; and Lot 696B, La Porte Outlots, Harris County, Texas; the motion was seconded by Councilperson Bentley; the motion was adopted, the motion was adopted, 8-1, Councilperson Garza voting against. 8. REPORTS a. Receive the 2021 La Porte Police Department Racial Profiling Report as presented by the Chief of Police. \[Steve Deardorff, Police Chief\] Chief Daeumer presented the report. 9. ADMINISTRATIVE REPORTS Drainage and Flooding Committee meeting, March 14 City Council meeting, March 14 Planning and Zoning Commission meeting, March 17 City Council meeting, March 28 City Manager Corby Alexander said there were no reports but expressed appreciation of the photo of Mr. Norris. 10. COUNCIL COMMENTS Hear announcements concerning matters appearing on the agenda; items of community interest; and/or inquiries of staff regarding specific factual information or existing policy from the Mayor, Councilpersons, and City staff, for which no formal action will be discussed or taken. Councilpersons congratulated the La Porte Police Department on the renewal of their recognition and thanked the Dept. for their excellent work; noted that Mardi Gras on Main was a great event (except for the weather) and thanked Parks, Fire, PD, EMS, and Public Works on the execution; shared pride in and recollections of Mr. Norris and asked to be involved in the hanging of his photo; requested an update on Five Points Pavilion; and urged voters to vote in the primaries. 11. EXECUTIVE SESSION a. Texas Government Code Sec. 551.071 (1)(A) - Pending or Contemplated Litigation: The City Council will meet in closed session with the City Manager and legal counsel to discuss SV Sons HWY 146, LLC vs. City of La Porte, Texas. \[George Vie, Counsel for City; Clark Askins, Assistant City Attorney; Corby Alexander, City Manager\] The Council convened in executive session at 7:42 p.m. 12. RECONVENE into open session and consider action, if any, on item(s) discussed in executive session. The Council reconvened into open session at 8:16 p.m. No action was taken. ADJOURN Without objection, the Council adjourned at 8:16 p.m. _______________________________ Lee Woodward, City Secretary REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested:March 14, 2022 Requested By:Teresa Evans, Director Source of Funds:N/A Department:Planning and Development Account Number:N/A Amount Budgeted:N/A ReportResolutionOrdinance Amount Requested:N/A Exhibits:Cover Letter;Permit Application and Budgeted Item:YesNo Construction Drawings; Pipeline MSDS Sheets; Vicinity Map SUMMARY& RECOMMENDATION International Terminal Company, LLC (ITC) has made an application with the City of La Porte to construct, operate and maintain a 12-inch underground Methanol Pipeline and associated facilities within the City of La Porte. The pipeline will originate from the Celanese facility in the Bayport Industrial District and terminate in the ITC facility on Independence Parkway. The total distance of the pipeline between the two (2) facilities is 11.83 miles; it will be located in a CenterPoint Energy corridor with electrical towers and several other pipelines. Cobb Fendley & Associates has reviewed the International Terminal Company application and plans for the 12- plans for The pipeline will cross existing City utilities at Fairmont Parkway and Spencer Highway at a proposed pipeline depth of 20 feet. This depth should be well below the depth of the existing public infrastructure and therefore avoid any conflicts. In accordance with Section 102-236(c), the City Council shall consider approval or denial of the permit. Upon approval by the City Council, staff will execute a construction permit to International Terminal Company,LLC, in duplicate originals; one duplicate shall be delivered to the permittee and one which shall be retained by the City, as required by ordinance. Staff recommends granting the permit application based upon a determination of ACTION REQUIRED BY CITY COUNCIL Approve or Deny the City Manager to execute a Pipeline Permit with International Terminal Company LLC for the construction of a 12-inch Methanol Pipeline within the City of La Porte. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date LƓƷĻƩĭƚƓƷźƓĻƓƷğƌ ĻƩƒźƓğƌƭ /ƚƒƦğƓǤ \[\[/ P. O. Box 698 Deer Park, Texas 77536-0698 FAX (281) 884-0399 (281) 884-0300 October 28, 2021 City of La Porte 604 W. Fairmont Pkwy La Porte, TX 77571 w9ʹ tƩƚƦƚƭĻķ tźƦĻƌźƓĻ Ώ L/ ЊЋͼ aĻƷŷğƓƚƌ tźƦĻƌźƓĻ Intercontinental Terminals Company LLC (ITC) respectfully makes this application for a Permit and Franchise Agreement (if required) to the City of La Porte (City) ŅƚƩ ƷŷĻ źƓƭƷğƌƌğƷźƚƓͲ ƚƦĻƩğƷźƚƓ ğƓķ ƒğźƓƷĻƓğƓĭĻ ƚŅ Њ Α ЊЋ Inch underground Methanol Pipeline together with associated facilities within the City limits of La Porte. Included in this package of information please find the following: Pipeline Permit Application Franchise Permit Application Engineering plans and drawings of the complete route through the city including: o Alignment sheets o Construction (Drill) drawings o Permit Drawings of road and ditch crossings o Cathodic Protection and AC Mitigation Drawings o AC Mitigation Drain Point Plats and Typicals o Electrical drawings for reference only Pipeline Data Sheet MSDS product sheets for Methanol Certificate of Insurance Application Fee in the amount of $1,000 Hold Harmless Letter executed by ITC ITC certifies the following per Chapter 102, Article IV of the La Porte Code of OrdiƓğƓĭĻƭ ĻƓƷźƷƌĻķ ͻtźƦĻƌźƓĻ ƩğƓƭƦƚƩƷğƷźƚƓͼ {Ļĭ ЊЉЋΏЋЌЎ͵ЊЉͲ ЊЊ εЊЋʹ 10. The pipeline will comply with the applicable standards required by this article as well as all applicable federal, state and local laws and regulations. 11. ITC shall, at any time in the future, where such pipeline or portion thereof crosses or is laid within, under or across any street, road or utility right-of-way, drainage way or public way existing or projected at the time the permit is issued, reposition such pipeline (which shall include lowering or raising the pipeline, as well as casing it, if required) at the permittee's sole expense, when the city reasonably requires such action incidental to public construction or public improvement. ITC is a safe and dedicated partner whose associates are recognized as proud leaders in customer care and operational excellence. 0 ¦¤ Α ®¥ Α 12. ITC shall notify the director at least 48 hours prior to performing any scheduled repairs or maintenance on the pipeline. For unscheduled emergency repairs or maintenance, taken to protect the public health, safety or welfare, the permittee shall notify the city police department dispatcher as soon as practical but no later than one hour after commencing repairs or maintenance. Valves will be located inside the Celanese Bayport facility and at the terminus of the line inside the ITC tank farm and the locations are shown on the enclosed vicinity map. Construction is anticipated for February or March, 2022 and expected to take approximately 6 months. This date is dependent on receiving all our authorizations prior to construction so the date is subject to change. Various construction methods will be utilized, these include HDDs, bores and conventional open cut methods as indicated on the enclosed engineering plans. ITC appreciates this opportunity to present its proposal to the City. We are available to answer any questions that might arise, and if any additional submittal materials are required, please feel free to contact me using the information below. I am, Sincerely Yours, Teri Perron Project ROW Lead with Wood. 832.799.9007 Teri.perron@woodplc.com City of La Porte Phone: 281.470.5073 Planning & Development Department 604 W. Fairmont Pkwy. Fax: 281.470.5005 La Porte, TX 77571 www.laportetx.gov PIPELINEPERMIT APPLICATION 1.PIPELINE PROJECT DATA: JUD23#NfuibopmQspkfdu Project Name: ______________________________________________________________________________________________________________________ 3:/733:68®O-1:6/16:541®X3:/8528:1®O-1:6/1:6245®X Project Origin: _______________________________________________________ Project Destination: _____________________________________________ 23#Nfuibopm Pipeline Diameter: ________________ Pipeline Commodity: ____________________________________________________________________________ 851831231efhsfftgbisfoifju Normal Operating Pressure: ________________PSI; Max. Operation Pressure _________________PSI; Max. Allowable Temp. ___________________________ 2.PIPELINE OWNER: JoufsdpoujofoubmUfsnjobmtDpnqbozMMD Owner Name: ______________________________________________________________________________________________________________________ Q/P/Cpy7:9-EffsQbsl-UY88647 Owner Address: ____________________________________________________________________________________________________________________ 943.891.7843943.995.14:: Owner Phone: ___________________________________________________________ Owner Fax: ________________________________________________ tifjmAjufsn/dpn Owner Email:_______________________________________________________________________________________________________________________ 3.PERMIT APPLICANT (Owner’s Agent): Xppe/ Company Name:____________________________________________________________________________________________________________________ 28436QbslSpx-Ipvtupo-UY88195 Company Address:__________________________________________________________________________________________________________________ UfsjQfsspoSjhiuPgXbzTqfdjbmjtu Agent Name: ________________________________________________________ Agent Title: ____________________________________________________ 943/8::/:118 Agent Phone: _______________________________________________________ Agent Fax: ______________________________________________________ ufsj/qfsspoAxppeqmd/dpn Agent Email:_______________________________________________________________________________________________________________________ 4.PIPELINE CONTRACTOR: UCE Company Name: ____________________________________________________________________________________________________________________ Company Address: __________________________________________________________________________________________________________________ Primary Contact Name: ________________________________________________ Primary Contact Title: ___________________________________________ Primary Contact Phone 1: _________________________________________ Primary Contact Phone 2: _________________________________________ Primary Contact E-Mail: _______________________________________________________________________________________________ 5.24-HOUR EMERGENCY CONTACTS: UjnHvjeszQjqfmjofPqfsbujpotNbobhfs Primary Contact Name:_________________________________________________ Primary Contact Title: ___________________________________________ 392.995.14:2943.576.1622 Primary Contact Phone 1: ____________________________________________ Primary Contact Phone 2: ___________________________________________ uhvjeszAjufsn/dpn Primary Contact E-Mail: ______________________________________________________________________________________________________________ TufwfoIfjm)evsjohdpotusvdujpopomz*QspkfduNbobhfs Secondary Contact Name:____________________________________________ Secondary Contact Title: ____________________________________________ 943.891.7843457.344.7965 Seconda ry Contact Phone 1: _________________________________________ Secondary Contact Phone 2: _________________________________________ tifjmAjufsn/dpn Secondary Contact E-Mail: ____________________________________________________________________________________________________________ 6.APPLICATION CHECKLIST & SUPPORTING DOCUMENTATION (Check applicable boxes): COMPLETE ITEMS 1-6 OF PERMIT APPLICATION SCHEDULED START DATE OF CONSTRUCTION: SUBMIT PROJECT PLANS (3 HARDCOPIES –OR- DIGITAL .PDF) Gfcsvbsz0Nbsdi-3133 ______________________________________________________ ATTACH PIPELINE APPLICATION FEE OF $1,000.00 ESTIMATE DURATION OF CONSTRUCTION: PRINT & SIGN APPLICANT NAME BELOW Bqqspyjnbufmz!7!npouit!gps!foujsf!qjqfmjof!opu!kvtu!qpsujpo!jo!Mb!Qpsuf ______________________________________________________ Ejhjubmmz!tjhofe!cz!Qfsspo-!Ufsj! EO;!do>Qfsspo-!Ufsj! Qfsspo-!Ufsj UfsjQfsspo Ebuf;!3132/12/32!24;58;46!.17(11( APPLICANT’S PRINTED NAME: ___________________________________________ APPLICANT’S SIGNATURE: ________________________________________ 32.3358.KME)22/13/3132* (STAFF USE ONLY): PERMIT NO: ________________________________________ PERMIT APPROVED BY: ___________________________________________ DATE OF APPROVAL: _________________________________ Y 40903133 134049 134049 HARRIS COUNTY, TEXAS W.M. JONES SURVEY, A-482 NOTE #17 EXIST. 12" CHEVRON PIPELINE EXIST. 12" SHELL PIPELINE 134049 HARRIS COUNTY, TEXAS W.M. JONES SURVEY, A-482  Safety Data Sheet _____________________________________________________________________________________________ MethanolNAGH/EN Product name 80056Oct.07.2015 MSDS numberRevision Date 0Oct.07.2015 Revision NumberIssuing date _____________________________________________________________________________________________ 1.Product and company identification Trade Name Methanol Celanese Ltd. 222 W. Las Colinas Blvd., Suite 900N Irving, TX 75039 United States Phone: 972 443 4000 Internet: www.celanese.com Transportation emergency phone numbers: In USA, call 800 424 9300 Outside USA, call 703 527 3887, collect calls accepted. Synonyms: Methyl alcohol; Carbinol; Monohydroxymethane; Methyl hydroxide. Identified uses Chemical raw material, chemical intermediate 2. Hazard Identification GHS Classification HazardsCategory Flammable liquidCategory 2 Skin corrosion/irritationCategory 2 Serious eye damage/eye irritationCategory 2B Specific target organ systemic toxicity (single exposure)Category 1 Label elements Danger Signal Word Highly flammable liquid and vapor Hazard Statements Causes skin irritation Causes eye irritation Causes damage to organs 1 of 10 Safety Data Sheet _____________________________________________________________________________________________ MethanolNAGH/EN Product name 80056Oct.07.2015 MSDS numberRevision Date 0Oct.07.2015 Revision NumberIssuing date _____________________________________________________________________________________________ Precautionary statements Keep away from heat/sparks/open flames/hot surfaces. - No smoking. In case of fire: Use foam, dry chemical, carbon dioxide to extinguish. Keep container tightly closed. Ground/bond container and receiving equipment. Use explosion-proof electrical/ ventilating/ lighting/ equipment. Use only non-sparking tools. Take precautionary measures against static discharge. Do not breathe dust/fume/gas/mist/vapors/spray Wear protective gloves/ eye protection/ face protection. Wash face, hands and any exposed skin thoroughly after handling. Do not eat, drink or smoke when using this product IF ON SKIN (or hair): Take off immediately all contaminated clothing. Rinse skin with water/ shower. If skin irritation occurs: Get medical advice/attention Wash contaminated clothing before reuse. IF IN EYES: Rinse cautiously with water for several minutes. Remove contact lenses, if present and easy to do. Continue rinsing. If eye irritation persists: Get medical advice/attention. IF exposed: Call a POISON CENTER or doctor/physician Store in a well-ventilated place. Keep cool. Store locked up. Dispose of contents/ container to an approved waste disposal plant. 3. Composition/information on ingredients ComponentsCAS-NoPercent % Methanol67-56-199.85 min. 4. First aid measures General Information Remove contaminated, soaked clothing immediately and dispose of safely. Pay attention to own protection. In any case show the physician the Safety Data Sheet. Skin Wash off immediately with plenty of water. If symptoms persist, call a physician. Eyes In the case of contact with eyes, rinse immediately with plenty of water and seek medical advice. Inhalation Keep at rest. Move to fresh air. If symptoms persist, call a physician. Ingestion Call a physician immediately. Do not induce vomiting without medical advice. 2 of 10 Safety Data Sheet _____________________________________________________________________________________________ MethanolNAGH/EN Product name 80056Oct.07.2015 MSDS numberRevision Date 0Oct.07.2015 Revision NumberIssuing date _____________________________________________________________________________________________ 5. Fire-fighting measures NFPA:Health: 1 Flammability: 3 Instability: 0 Suitable extinguishing media Foam, Dry chemical, Carbon dioxide (CO2) Extinguishing media which must not be used for safety reasons Do not use a solid water stream as it may scatter and spread fire. Special exposure hazards arising from the substance or preparation itself, its combustion products, or released gases Vapors are heavier than air and may spread along floors Under conditions giving incomplete combustion, hazardous gases produced may consist of Carbon monoxide Carbon dioxide (CO2) Combustion gases of organic materials must in principle be graded as inhalation poisons Special protective equipment for fire-fighters self-contained breathing apparatus (EN 133). Environmental precautions Water used to fight fire runoff can cause environmental damage. Dike and collect water used to fight fire. Other Information Cool containers / tanks with water spray. 6. Accidental release measures Personal precautions Keep away from heat and sources of ignition. Avoid contact with the skin and the eyes. Avoid breathing vapors or mists. Provide adequate ventilation. Isolation Keep unnecessary people away; isolate hazard area and deny entry. Stay upwind; keep out of low areas. Isolate for 800 meters or 0.5 miles in all directions if tank, rail car, or tank truck in involved in fire. Evacuate downwind areas as conditions warrant to prevent exposure and to allow vapors or fumes to dissipate. Spills may expose downwind areas to toxic or flammable concentrations over considerable distances in some cases. Environmental precautions Prevent further leakage or spillage. Do not discharge into the drains/surface waters/groundwater. Methods for cleaning up Soak up with inert absorbent material (e.g. sand, silica gel, acid binder, universal binder, sawdust). Keep in suitable, closed containers for disposal. Dispose of in accordance with local regulations. Authority Notification Within the United States, call the National Response Center (800-424-8802) and appropriate state and local authorities if the quantity released over 24 hours is equal to or greater than the reportable quantity listed below: 5000 lb/2270kg 3 of 10 Safety Data Sheet _____________________________________________________________________________________________ MethanolNAGH/EN Product name 80056Oct.07.2015 MSDS numberRevision Date 0Oct.07.2015 Revision NumberIssuing date _____________________________________________________________________________________________ 7. Handling and storage Advice on safe handling Provide sufficient air exchange and/or exhaust in work rooms. Protection - fire and explosion: Keep away from sources of ignition - No smoking. Take necessary action to avoid static electricity discharge. Ground and bond containers when transferring material. In case of fire, emergency cooling with water spray should be available. Technical measures/Storage conditions Keep container tightly closed in a dry and well-ventilated place. Handle an open container with care. Material storage Store locked up. Keep in a dry, cool and well-ventilated place. 8. Exposure controls / personal protection OSHA Exposure Limits ComponentsTWA Methanol200 PPM ComponentsSTEL Methanol250 PPM ACGIH Exposure Limits ComponentsTWA Methanol200 PPM ComponentsSTEL Methanol250 PPM Components2005 NIOSH IDLH Methanol25,000 PPM Mexico National Exposure Limits ComponentsLMPE - PPT 3 Methanol260 mg/m200 PPM ComponentsSTEL 3 Methanol310 mg/m250 PPM 4 of 10 Safety Data Sheet _____________________________________________________________________________________________ MethanolNAGH/EN Product name 80056Oct.07.2015 MSDS numberRevision Date 0Oct.07.2015 Revision NumberIssuing date _____________________________________________________________________________________________ Exposure controls Engineering measures General or dilution ventilation is frequently insufficient as the sole means of controlling employee exposure. Local ventilation is usually preferred. Explosion-proof equipment (for example fans, switches, and grounded ducts) should be used in mechanical ventilation systems. Protective equipment A safety shower and eyebath should be readily available. General advice Avoid contact with skin and eyes. Do not breathe vapors or spray mist. Use only in an area equipped with a safety shower. Hold eye wash fountain available. Respiratory protection Based on workplace contaminant level and working limits of the respirator, use a respirator approved by NIOSH. The following is the minimum recommended equipment for an occupational exposure level. To estimate an occupational exposure level see Section 8 and Section 11. For concentrations > 1 and < 100 times the occupational exposure level: Use Type C full facepiece supplied-air respirator operated in positive-pressure or continuous-flow mode. For concentrations > 100 times the occupational exposure level or greater than the IDLH level or unknown concentrations (such as in emergencies): Use self-contained breathing apparatus with full facepiece in positive-pressure mode or Type C positive-pressure full facepiece supplied-air respirator with an auxiliary positive-pressure self-contained breathing apparatus escape system. For escape: Use self-contained breathing apparatus with full facepiece or any respirator specifically approved for escape. Skin protection: Wear impervious clothing and gloves to prevent contact. Butyl rubber is recommended. Other protective material may be used, depending on the situation, if adequate degradation and permeation data is available. If other chemicals are used in conjunction with this chemical, material selection should be based on protection for all chemicals present. Eye/face protection: Wear chemical goggles when there is a reasonable chance of eye contact.. 9. Physical and chemical properties Appearance liquid Form colourless Color Odor alcoholic 32.04 Molecular Weight 9°C(54°F) Flash point closed cup (867 °F) Method 440°C Ignition temperature DIN 51794 Method 6 Vol. % Lower explosion limit 5 of 10 Safety Data Sheet _____________________________________________________________________________________________ MethanolNAGH/EN Product name 80056Oct.07.2015 MSDS numberRevision Date 0Oct.07.2015 Revision NumberIssuing date _____________________________________________________________________________________________ 9. Physical and chemical properties 50 Vol. % Upper explosion limit -97.8°C (144°F) Melting point/range 64.7°C @ 1013 hPa (148.5°F) Boiling point/range 0.7866 g/ml @ 25°C Density 0.614 mPa*s Viscosity 129 hPa @ 20°C Vapor pressure 552 hPa @ 50°C 1.11 (Air=1) Vapor density miscible Water solubility -0.77 (measured) Partition coefficient (n-octanol/water) 10. Stability and reactivity Chemical stability Stable under normal conditions of handling, use and transportation Conditions to avoid Avoid any source of ignition Avoid contact with heat, sparks, open flame, and static discharge Incompatible Materials None known Hazardous Combustion or Decomposition Products: Carbon oxides Possibility of hazardous reactions Hazardous polymerization does not occur. 11. Toxicological information Potential health effects Skin, eyes, inhalation, ingestion. Routes of exposure Immediate effects May cause skin irritation. May be harmful if absorbed through skin. Symptoms of Skin overexposure include: Drying, cracking or inflammation of skin. Central nervous system depression with headache, stupor, uncoordinated or strange behavior or unconsciousness. Prolonged and /or repeated skin contact with methanol-soaked material has produced toxic effects including vision effects and death. May cause eye irritation. Symptoms of exposure may include: Eye irritation, burning Eyes sensation, pain, watering, and/or change of vision. Eye injury which may persist for several days. May cause irritation of respiratory tract. Symptoms of exposure may include: Central Inhalation nervous system depression with nausea, dizziness, headache, stupor, uncoordinated or strange behavior or unconsciousness. Adverse effects on vision. 6 of 10 Safety Data Sheet _____________________________________________________________________________________________ MethanolNAGH/EN Product name 80056Oct.07.2015 MSDS numberRevision Date 0Oct.07.2015 Revision NumberIssuing date _____________________________________________________________________________________________ May be fatal if swallowed. A small amount of Methanol (usually two or more ounces) Ingestion can cause mental sluggishness, nausea and vomiting leading to severe illness, and may produce adverse effects on vision with possible blindness or death if treatment is not received. Overexposure (prolonged or repeated exposure) may cause: Target organ effects Central nervous system depression Injury to the eyes Drying of the skin Local irritation at the site of exposure Significant exposure to this chemical may adversely affect people with acute or Medical conditions which may be chronic disease of the: aggravated by exposure: Skin Eyes Central nervous system Digestive tract Methanol LD50: > 5000 mg/kg Acute oral toxicity LD50: > 5000 mg/kg Acute dermal toxicity LC50 (4h): > 5 mg/l Acute inhalation toxicity irritating Skin corrosion/irritation nonsensitizer Skin Sensitization Speciesguinea pig MethodMaximization irritant Serious eye damage/eye irritation Speciesrabbit eye No evidence of carcinogenicity Carcinogenic effects Speciesrats Studyinhalation lifetime study No evidence of carcinogenicity Carcinogenic Effects Speciesmice Studyinhalation lifetime study Ames Test: negative - with and without metabolic activation - in vitro Mutagenicity Method: OECD 471 Mouse lymphoma cell gene-mutation: positive - with and without metabolic activation - Method: OECD 476 In vitro Sister Chromatid Exchange Assay in Chinese Hamster Ovary (CHO): negative - with and without metabolic activation - Method: OECD 479 In vitro Mammalian Cell Transformation Test: negative - without metabolic activation - EU-Method: B.21 Positive and negative results in vivo Mutagenicity Reproductive toxicity Some indication of reproductive toxicity in animals at non- physiological levels 7 of 10 Safety Data Sheet _____________________________________________________________________________________________ MethanolNAGH/EN Product name 80056Oct.07.2015 MSDS numberRevision Date 0Oct.07.2015 Revision NumberIssuing date _____________________________________________________________________________________________ Methanol Some indication of developmental toxicity in animals at non- Developmental effects physiological levels 12. Ecological Information Ecotoxicological data are not available. 13. Disposal considerations Disposal considerations Dispose of spilled material in accordance with state and local regulations for hazardous waste. Recommended methods are incineration or biological treatment at a federally or state-permitted disposal facility. Note that this information applies to the material as manufactured; processing, use, or contamination may make this information inappropriate, inaccurate, or incomplete. Note that this handling and disposal information may also apply to empty containers, liners and rinsate. State or local regulations or restrictions are complex and may differ from federal regulations. This information is intended as an aid to proper handling and disposal; the final responsibility for handling and disposal is with the owner of the waste. U154 EPA Hazardous Waste Code(s): 14. Transport information US Department of Transportation UN 1230 UN/NA Number: Methanol Proper Shipping Name 3 Hazard class 6.1 Subsidiary hazard Packing Group II 5000 lb/2270kg Reportable Quantity (RQ) 131 Emergency Resp. Guide TDG UN 1230 UN/NA Number: Proper Shipping Name METHANOL 3 Class: 6.1 Subsidiary Risk: II Packing Group: Mexico Transport Information UN 1230 UN-No. Proper Shipping Name Methanol 3 Hazard Class 6.1 Subsidiary Risk II Packing Group 8 of 10 Safety Data Sheet _____________________________________________________________________________________________ MethanolNAGH/EN Product name 80056Oct.07.2015 MSDS numberRevision Date 0Oct.07.2015 Revision NumberIssuing date _____________________________________________________________________________________________ ICAO/IATA UN 1230 UN-No. Methanol Proper Shipping Name Hazard Class 3 6.1 Subsidiary Risk II Packing group IMDG UN 1230 UN/ID No. Methanol Proper Shipping Name 3 Hazard Class 6.1 Subsidiary Risk II Packing group F-E, S-D EmS Code 15. Regulatory Information US State Regulations Chemicals associated with the product which are subject to the state right-to-know regulations are listed along with the applicable state(s): Methanol 67-56-1 PennsylvaniaListed New YorkListed New JerseyListed IllinoisListed MassachusettsListed Rhode IslandListed California Prop. 65 WARNING: This product contains the following chemicals that are known to the State of California to cause cancer, birth defects or other reproductive harm. Methanol (67-56-1) U.S. FEDERAL REGULATIONS Environmental Regulations: Methanol 67-56-1 EPCRA Section 313Listed CERCLA Hazardous SubstanceListed SARA 311: Acute health:Yes Yes Chronic health: Yes Fire: No Sudden release of pressure: No Reactive: 9 of 10 Safety Data Sheet _____________________________________________________________________________________________ MethanolNAGH/EN Product name 80056Oct.07.2015 MSDS numberRevision Date 0Oct.07.2015 Revision NumberIssuing date _____________________________________________________________________________________________ INTERNATIONAL REGULATIONS International Inventories Listed on the chemical inventories of the following countries or qualifies for an exemption: Australia (AICS) Canada (DSL) China (IECSC) Europe (EINECS) Japan (ENCS) Japan (ISHL) Korea (KECI) New Zealand (NZIoC) Philippines (PICCS) United States (TSCA) WHMIS Ingredient Disclosure List IDL: Methanol (67-56-1) . 16. Other information NFPA:Health: 1Flammability: 3Instability: 0 HMIS:Health: 2Flammability: 3Physical Hazard: 0 Prepared By Product Stewardship Department Celanese For more information, other material safety data sheets or technical data sheets please consult the Celanese homepage (www.celanese.com) Sources of key data used to compile the datasheet Information contained in this safety data sheet is based on Celanese owned data and public sources deemed valid or acceptable.. The absence of data elements required by ANSI or 1907/2006/EC indicates that no data meeting these requirements is available.. Other Information: Observe national and local legal requirements Changes against the previous version are marked by *** This information is based on our present state of knowledge. It shall describe our products regarding safety requirements and shall not be construed as a guarantee or statement of condition and/or quality. 10 of 10 January 21, 2021 PROPOSED 12-INCH ITC METHANOL PIPELINE PIPELINE DATA SHEET PIPELINE SPECIFICATIONS: Pipe O.D., D, in 12.75 MAOP, psig 720 Max Allowable Temp 120 °F Operating Temp Ambient Pipeline Material Carbon Steel Construction Method Open Cut/Bore HDD ASME Class: 300 300 Pipe Temp. Factor, T 1.00 1.00 Pipe SMYS, S, psi: 52,000 52,000 /ƚƩƩ͵ !ƌƌƚǞğƓĭĻͲ /!Ͳ źƓʹ ͵ЉЊЋЎͼ ͵ЉЊЋЎͼ Design Factor, F: .72 .72 Long, Joint Factor, E: 1.00 1.00 Construction Method Open Cut/Bore HDD Wall Thickness (in) 0.375 0.500 Material Grade API 5L X52M PSL 2 SAFETY STANDARDS: 49 CFR 195 !tL {ƦĻĭźŅźĭğƷźƚƓ Ў\[ ͻ{ƦĻĭźŅźĭğƷźƚƓ ŅƚƩ \[źƓĻ tźƦĻͼ API Transportation Recommended Practices !tL ЊЊЉЍͲ ͻ‘ĻƌķźƓŭ ƚŅ tźƦĻƌźƓĻ ğƓķ wĻƌğƷĻķ CğĭźƌźƷźĻƭͼͲ ЋЉƷŷ 9ķźƷźƚƓ !tL Џ5Ͳ ͻ{ƦĻĭźŅźĭğƷźƚƓ ŅƚƩ tźƦĻƌźƓĻ ğƌǝĻƭͼ !{a9 . ЌЊ͵ЍͲ ͻtźƦĻƌźƓĻ ƩğƓƭƦƚƩƷğƷźƚƓ {ǤƭƷĻƒƭ ŅƚƩ \[źƨǒźķƭͼ !{a9 . ЊЏ͵ЎͲ ͻtźƦĻ CƌğƓŭĻƭ ğƓķ CƌğƓŭĻķ CźƷƷźƓŭƭͼ aa{ {tΏЍЍͲ ͻ{ƷĻĻƌ tźƦĻƌźƓĻ CƌğƓŭĻƭͼ aa{ {tΏАЎͲ ͻ{ƦĻĭźŅźĭğƷźƚƓ ŅƚƩ Iźŭŷ ĻƭƷ ‘ƩƚǒŭŷƷ .ǒƷƷ ‘ĻƌķźƓŭ CźƷƷźƓŭƭͼ at{ΏЊЉЌͲ ͻIźŭŷ {ƷƩĻƓŭƷŷ tźƦĻƌźƓĻ ‘ĻƌķźƓŭ CźƷƷźƓgs for High Pressure Hydrogen Service b!/9 awЉЊАЎΉL{h ЊЎЊЎЏΏЊͲ ͻDĻƓĻƩğƌ tƩźƓĭźƦƌĻƭ ŅƚƩ Selection of Cracking-Resistant Materials OSHA: Occupational Safety and Health Administration, 29 CFR 1910, 1926 The pipeline has been designed to exceed all industry standards and specifications under a safety factor of 0.72 per ASME B31.4. REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested:March 14, 2022 General Fund Requested By:Teresa Evans, Director Source of Funds: Department:Planning and Development Account Number:001-9092-524-5007 $18,000 Amount Budgeted: ReportResolutionOrdinance N/A Amount Requested: Exhibits: Notifications and Access Report; Bid #22011 Budgeted Item:YesNo SUMMARY& RECOMMENDATION The Inspections Division of the Planning and Development Department is responsible for code enforcement,including the abatementof weeds/debris nuisance violations. In accordance with Section 34-130 of the City of La Porte Code of Ordinances, the City maytake action on code enforcement violations if the property owner fails to do so within tendays of written notice. The City has established an annual mowing contract to achieve compliance in cases where the property owner does nottake action. Advertised Sealed Bid #22011 Annual Mowing Contract was openedand read on February 15, 2022.The Bid Request was sent to 47 vendorsand 17 vendors opened the documents. Only one (1) vendor responded witha bid. The bid received from Goins Go Getters was unexpectedly high. For example, the bid to mow an average size residential property went from $37.80 to $462.50. Staff hasexperiencedsome difficulties withmanaging the annual mow contract.The mow contractors have beendelayed in their responsesor unavailable. Quality control has also been an issue. The most recent mow contractors have gone out of business ordeclined additionalcityjobs due to underbidding their work. This is the second Sealed Bid Proposal in the last twelve months where the City has received only one(1) returned bid. Due to these reoccurring issues, staff isexploring the option of bringing this service in-house, to be performed by the Parks Maintenance staff. By utilizing City employees, there should be an increaseinquality control and responsiveness. Staff recommendsCity Council reject bid #22011 for Inspection Mowing Services. ACTION REQUIRED BY CITY COUNCIL Reject Bid #22011 for Inspections Mowing Services. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date Notifications & Access Report to Sealed Bid #22011 - Inspections Mowing Services Notifications: Vendor NameReason All Pro General Construction, InBid Notification AUTOARCH ArchitectsBid Notification Burditt Consultants, LLCBid Notification Camp Landscaping ServicesBid Notification CDC NewsBid NotificationE-Mail Notifications: pkamas68@hotmail.com; mrgreenlawnservices@yahoo.com; groundstarinc@yahoo.com; D DavilaBid Notification horticarelawn@gmail.com; juan@hydrozonelandscape.com; sales@nccservicesinc.com; DeShazo Group, Inc.Bid Notification christophe@econocuts.com; RTC.CLS@sbcglobal.net; angela6013@att.net; ccathey@yellowstonelandscape.com; EIKON Consultant GroupBid Notification mikem@encoregroup.com; luke@cornerstonemaintenance.net; sprintr737@aol.com; Envirobidnet an Entram CorpBid Notification longclawcontractors@gmail.com; info@houstonlawn.net; info@cornerstonemaintenance.net GC EngineeringBid Notification Goins GoGettersBid Notification Greenscapes Six, LLCBid Notification13 non repetitive vendors e-mailed invitations Halff AssociatesBid Notification Huitt-Zollars, Inc.Bid Notification Hydrozone Landscape CorporatBid Notification IMSBid Notification Longclaw Contractors, LLCBid Notification M2L Associates IncorporatedBid Notification Mauldin and Associates LLCBid Notification Mesa Verde Landscape ManagBid Notification Michael Baker Jr., Inc.Bid Notification NCC Services, Inc.Bid Notification Neo Global Enterprises, LLCBid Notification Resource Service Solutions, LLBid Notification Sasaki Associates, IncBid Notification SiteWorks, LLCBid Notification Smith & Company ArchitectsBid Notification Southern Concrete RaisingBid Notification T & A Turf and Irrigation, LLC.Bid Notification T Smith's Lawn ServiceBid Notification Terra Associates, Inc.Bid Notification URS CorporationBid Notification Watearth, Inc.Bid Notification WCD Enterprises LLCBid Notification Westco Grounds Maintenance C Bid Notification Access Report: Vendor NameDocuments 3rd Coast Companies, LLCSealed Bid #22011.pdf BrightView Landscapes LLCSealed Bid #22011.pdf CMS Construction JournalSealed Bid #22011.pdf Dodge Data & AnalyticsSealed Bid #22011.pdf Goins GoGettersSealed Bid #22011.pdf Hydrozone Landscape CorporatSealed Bid #22011.pdf IMS Mesa Verde Landscape ManagSealed Bid #22011.pdf Neo Global Enterprises, LLCSealed Bid #22011.pdf North America Procurement CoSealed Bid #22011.pdf OnviaSealed Bid #22011.pdf Perkens WS CorporationSealed Bid #22011.pdf Personal Touch ManagementSealed Bid #22011.pdf RFx AnalystSealed Bid #22011.pdf School Wholesale Supplies LLCSealed Bid #22011.pdf SmartProcureSealed Bid #22011.pdf The Merriam GroupSealed Bid #22011.pdf Tukmol General Contractor Wayne Enterprises WCD Enterprises LLCSealed Bid #22011.pdf REQUEST FOR CITY COUNCILAGENDA ITEM Appropriation Agenda Date Requested:March 14, 2022 Source of Funds:General Fund/Finance Requested By:Michael Dolby, Director Department:Finance 0016141-5155001 -$43,650 0337070-5335001 -$5,000 ReportResolutionOrdinance 0345051-5225001-$5,000 0167075-5335001-$6,000 Account Number:0386030-5655001-$5,000 Exhibits:Fiscal YearEnding September 30, 2021AnnualComprehensive Financial Report Amount Budgeted:$64,650 Amount Requested:$64,650 Budgeted Item:YesNo SUMMARY & RECOMMENDATION In accordance with the City of La PorteCharter, the fiscal year ending September 30, 2021 Annual Comprehensive Financial Report will be presented toCityCouncil 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 tests that provide evidence that the financial statements conform to the highestlevel of accounting standards. The City received an unmodified (clean) opinion from the auditors and no management comments or deficiencies in internal control were identified. Annually, the City submits the Annual Comprehensive Financial Report to the Government Finance Officers Association for entry in the award program for excellence in financial report. The City of La Porte has won the Award for Excellence in Financial Reporting from the Government Finance Officers Association for 40consecutive years. ACTION REQUIREDBY CITY COUNCIL Acceptthe Fiscal Year, ending September 30, 2021,Annual Comprehensive Financial Report. Approved for the City Council meeting agenda Corby D. Alexander, City ManagerDate CITYOFLAPORTE,TEXAS ANNUALCOMPREHENSIVE FINANCIALREPORT FortheFiscalYearEnded September30,2021 CorbyAlexander,CityManager Preparedby: DepartmentofFinance DRAFT 03.04.2022 DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS TABLEOFCONTENTS Exhibit/ PageTable IntroductorySection LetterofTransmittali GFOACertificateofAchievementvii OrganizationalChartviii ListofPrincipalOfficialsix FinancialSection ReportofIndependentAuditors 3 ağƓğŭĻƒĻƓƷ͸ƭDiscussionandAnalysis 5 BasicFinancialStatements: GovernmentWideFinancialStatements: StatementofNetPosition17A1 StatementofActivities18A2 FundFinancialStatements: BalanceSheetGovernmentalFunds20A3 ReconciliationoftheGovernmentalFundsBalanceSheettotheStatementofNetPosition23A4 StatementofRevenues,Expenditures,andChangesinFundBalanceGovernmentalFunds24A5 undBalancesof ReconciliationoftheStatementofRevenues,Expenditures,andChangesinF GovernmentalFundstotheStatementofActivities27A6 StatementofNetPositionProprietaryFunds28A7 StatementofRevenues,ExpensesandChangesinFundNetPositionProprietaryFunds31A8 StatementofCashFlowsProprietaryFunds32A9 NotestotheFinancialStatements35A10 RequiredSupplementaryInformation: GeneralFundScheduleofRevenues,Expenditures,andChangesinFundBalanceBudget andActual78B1 RestrictedFundScheduleofRevenues,Expenditures,andChangesinFundBalance BudgetandActual79B2 LaPorteRedevelopmentAuthorityΑBudgetandActual79B3 NotestoRequiredSupplementaryInformation80B4 ScheduleofChangesinNetPensionLiabilityandRelatedRatios81B5 ScheduleofTMRSContributions82B6 ScheduleofProportionateShareoftheTESRS84B7 Scheduleof/źƷǤ͸ƭContributions86B8 ScheduleofChangesintheTotalOPEBLiabilityandRelatedRatiosΑRetireeHealthCarePlan87B9 ScheduleofChangesintheTotalOPEBLiabilityandRelatedRatiosΑTMRSSupplementalDeath BenefitsFund88B10 CombiningandIndividualFundStatementsandSchedules: CombiningStatementsNonmajorGovernmentalFunds: CombiningBalanceSheet92C1 CombiningStatementofRevenues,ExpendituresandChangesinFundBalance95C2 DebtServiceFund98C3 CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS TABLEOFCONTENTS(continued) Exhibit/ PageTable CombiningandIndividualFundStatementsandSchedules:(continued) SchedulesofRevenues,ExpendituresandChangesinFundBalanceBudgetandActual: CapitalImprovementFund100C4 SpecialRevenueFundΑHotel/MotelFund100C5 SpecialRevenueFundΑSection4BSalesTax101C6 SpecialRevenueFundΑStreetMaintenanceSalesTaxFund102C7 SpecialRevenueFundΑEmergencyServicesSalesTaxFund103C8 2006CertificateofObligationBondFund105C9 2010CertificateofObligationBondFund106C10 2015CertificateofObligationBondFund107C11 2017CertificateofObligationBondFund108C12 2021CertificateofObligationBondFund109C13 CapitalProjectsFundΑDrainageImprovementFund110C14 GeneralFundΑScheduleofRevenuesΑBudgetandActual111C15 GeneralFundΑScheduleofExpendituresΑBudgetandActual117C16 CombiningStatementofNetPositionInternalServiceFunds118C17 CombiningStatementofRevenues,ExpensesandchangesinFundNetPositionInternal ServiceFunds119C18 CombiningStatementofCashFlowsInternalServiceFunds119C19 StatisticalSection NetPositionbyComponent1221 42 ChangesinNetPosition12 FundBalancesofGovernmentalFunds1283 ChangesinFundBalancesofGovernmentalFunds1304 AssessedValueandEstimatedValueofTaxableProperty1335 PropertyTaxRatesDirectandOverlappingGovernments1346 PrincipalPropertyTaxpayers1367 PropertyTaxLeviesandCollections1378 andingDebtbyType1389 RatiosofOutst RatioofNetGeneralBondedDebttoTaxableValue13910 DirectandOverlappingGovernmentalActivitiesDebt14011 DemographicandEconomicStatistics14112 PrincipalEmployers14313 FullTimeEquivalentCityGovernmentalEmployeesbyFunction14414 OperatingIndicatorsbyFunction/Program14615 CapitalAssetsStatisticsbyFunction/Program14816 CityofLaPorte2021ACFR DRAFT 03.04.2022 March14,2022 TotheHonorableMayor, MembersofCityCouncil,and CitizensoftheCityofLaPorte,Texas: TheFinanceDepartmentandCityManager'sOfficearepleasedtosubmittheAnnualComprehensiveFinancialReportforthe ptember30,2021.ThisreportispublishedtoprovidetheCityCouncil,City CityofLaPorte,TexasforthefiscalyearendedSe staff,ourcitizens,ourbondholdersandotherinterestedpartieswithdetailedinformationconcerningthefinancialcondition andactivitiesoftheCitygovernment.Thisreportconsistsofmanagement'srepresentationsconcerningthefinancesofthe CityofLaPorte.Consequently,managementassumesfullresponsibilityforthecompletenessandreliabilityofallofthe informationpresentedinthisreport.Toprovideareasonablebasisformakingtheserepresentations,managementofthe Cityhasestablishedacomprehensiveinternalcontrolframeworkthatisdesignedbothtoprotectthegovernment'sassets fromloss,theftormisuseandtocompilesufficientreliableinformationforthepreparationoftheCityofLaPorte'sfinancial statementsinconformitywithGAAP.Thecostofinternalcontrolsshouldnotoutweightheirbenefits;thereforetheCityof ntrolshasbeendesignedtoprovidereasonableratherthanabsolute LaPorte'scomprehensiveframeworkofinternalco assurancethatthefinancialstatementswillbefreefrommaterialmisstatement.Asmanagement,weassertthat,tothebest ofourknowledgeandbelief,thisfinancialreportiscompleteandreliableinallmaterialrespects. TheCityofLaPorte'sfinancialstatementshavebeenauditedbyWhitleyPennLLP,afirmoflicensedcertifiedpublic accountants.ThegoaloftheindependentauditwastoprovidereasonableassurancethatthefinancialstatementsoftheCity ofLaPorteforthefiscalyearendedSeptember30,2021arefreeofmaterialmisstatement.Theindependentauditinvolved examining,onatestbasis,evidencesupportingtheamountanddisclosuresinthefinancialstatements,assessingthe accountingprinciplesusedandsignificantestimatesmadebymanagementandevaluatingtheoverallfinancialstatement presentation.Theindependentauditconcluded,basedupontheaudit,thattherewasareasonablebasisforrenderingan unmodifiedopinionthattheCityofLaPorte'sfinancialstatementsforfiscalyearendedSeptember30,2021arefairly presentedinconformitywithGAAP.Theindependentauditors'reportispresentedasacomponentofthefinancialsection ofthisreport. roduction,overviewandanalysistoaccompanythebasicfinancial GAAPrequiresthatmanagementprovideanarrativeint statementsintheformofManagement'sDiscussionandAnalysis(MD&A).Thisletteroftransmittalisdesignedto complementMD&Aandshouldbereadinconjunctionwithit.TheCityofLaPorte'sMD&Acanbefoundimmediately followingthereportoftheindependentauditors. iCityofLaPorte2021ACFR DRAFT 03.04.2022 ProfileoftheCity TheCityofLaPorte,incorporatedin1892,islocatedinthesoutheastquadrantofHarrisCountyandisboundedonthe northbytheHoustonshipchannel,ontheeastbyGalvestonBayandthesouthbytheBayportchannel.TheCityofLa Portecurrentlyencompasses19squaremilesandservesapopulationof34,976. TheCityisahomerulecityoperatingundertheCouncilManagerformofgovernment.Policymakingandlegislativeauthority arevestedinagoverningcouncilconsistingofthemayorandeightothermembers.Thecitycouncilisresponsible,among otherthings,forpassingordinances,adoptingthebudget,appointingcommitteesandhiringtheCityManager,CitySecretary, MunicipalJudgeandAttorney.TheCityManagerisresponsibleforcarryingoutthepoliciesandordinancesoftheCityCouncil, foroverseeingthedaytodayoperationsoftheCityandforappointingtheheadsofvariousdepartments.TheCouncilis electedonanonpartisanbasis.TheMayorandCouncilmembersservethreeyearstaggeredterms.Sixofthecouncil membersareelectedbydistrict.TheMayorandthetworemainingcouncilmembersareelectedatlarge.TheCityofLaPorte providesafullrangeofservices,includingpoliceandfireprotection,theconstructionandmaintenanceofstreetsandother infrastructureandrecreationalactivitiesandculturalevents.CertainservicesareprovidedthroughalegallyseparateWater Authority,whichfunctions,asablendedcomponentunitandinessence,isadepartmentoftheCityofLaPorte,and, therefore,hasbeenincludedasanintegralpartoftheCityofLaPorte'sfinancialstatements.Additionalinformationonthe WaterAuthorityandotherblendedcomponentunitscanbefoundinNote1Aofthenotestothefinancialstatements.The CityhasestablishedaTaxingIncrementReinvestmentZoneone(theZone).Thezoneispresentedasablendedcomponent unitandisbeingreportedasagovernmentalfundtype(seeNote1B).TheCityhasalsoestablishedasection4BSalesTax Corporation(seeNote1B).TheCityalsohasestablishedaFireControl,PreventionandEMSDistrict(seenote1B).TheCity's aloperationsaremaintainedonmodifiedaccrualbasis,withtherevenuesbeing accountingrecordsforgeneralgovernment recordedwhenavailableandmeasurableandexpendituresbeingrecordedwhentheservicesorgoodsarereceivedandthe liabilitiesareincurred.AccountingrecordsfortheCity'sutilitiesandotherproprietaryactivitiesaremaintainedontheaccrual basis. TheannualbudgetservesasthefoundationfortheCityofLaPorte'sfinancialplanningandcontrol.Budgetarycontrol hasbeenestablishedatthefundlevel.AllagenciesoftheCityofLaPortearerequiredtosubmitrequestsforappropriation totheCityManageronorbeforeMay26ofeachyear.TheCityManagerusestheserequestsasthestartingpointfor developingaproposedbudget.TheCityManagerthenpresentsthisproposedbudgettocouncilforreviewpriortoAugust. Thecouncilisrequiredtoholdapublichearingontheproposedbudgetandtoadoptafinalbudgetbynolaterthan September30th.Theappropriatedbudgetispreparedbyfund,function(e.g.,publicsafety)anddepartment(e.g.,police). directorsaregivenlatitudetoapprovetransfersofappropriationswithinadepartment.Transfersofappropriations The comparisonsareprovidedin betweenfunds,howeverrequirethespecialapprovalofthecitycouncil.Budgettoactual financialreportsforeachindividualgovernmentalfundforwhichanappropriatedannualbudgethasbeenadopted.For thegeneralfund,thiscomparisonispresentedonpage83aspartoftherequiredsupplementaryinformation.For governmentalfunds,otherthanthegeneralfund,withappropriatedannualbudgets,thiscomparisonispresentedinthe governmentalfundsubsectionofthisreport,whichstartsonpage96.Formalbudgetaryintegrationisemployedasa managementcontroldeviceduringtheyearfortheGeneralFundandEnterpriseFunds.Formalbudgetintegrationisnot employedfortheDebtServiceandCapitalProjectsFundsbecauseeffectivebudgetarycontrolisalternativelyachieved throughbondindentureprovisionsandlegallybindingconstructioncontracts,respectively. EconomicCondition Theinformationpresentedinthefinancialstatementsisperhapsbestunderstoodwhenitisconsideredfromthebroader perspectiveofthespecificenvironmentwithinwhichtheCityofLaPorteoperates. iiCityofLaPorte2021ACFR DRAFT 03.04.2022 LocalEconomy TheCityofLaPorteislocatedinthesoutheastquadrantofHarrisCounty,whichisa1,723squaremilecountyisaleading oil,gasandpetrochemicalareas.TheCountyhasmorethan3,200manufacturingplants,theƓğƷźƚƓ͸ƭlargestconcentration ofpetrochemicalplants,andthethirdlargestUnitedStatesseaportandisacorporationmanagementcenter.Asignificant partofthe/ƚǒƓƷǤ͸ƭmajoremployers,manufacturers,educationandfinancialinstitutionsarelocatedinHouston,theCounty seat.TheTexasMedicalCenter,locatedinHarrisCounty,isoneofthenation'slargest,providingmedicalcareandeducational opportunities.Highereducationfacilitiesinclude:UniversityofHouston,RiceUniversity,TexasSouthernUniversity,St. ThomasUniversityandHoustonBaptistUniversity,allofferingfullfouryearaswellaspostgraduateprograms.TheLyndon B.JohnsonSpaceCenterisalsolocatedhere.Locatedsome20milessoutheastofHoustononGalvestonBayinHarrisCounty arethethreecommunitiesthatmakeuptheLaPorteBayshoreArea:LaPorte,Morgan'sPointandShoreacres.Theareahas acombinedpopulationofapproximately40,000.Thoughmuchoftheimageofthisareaisindustrial,theLaPorteBayshore areaisstillcharacterizedbyanexpanseofresorthomes. StrategicPlan Overview OnOctober27,2012,theMayor,CityCouncil,CityManagerandkeystaffoftheCityofLaPortemettogetherina retreatplanningsession.Thepurposeofthatmeetingwastoestablishthe/ƚǒƓĭźƌ͸ƭStrategicPlanforthenextfive years.AreportwaspreparedoutliningtheCity/ƚǒƓĭźƌ͸ƭMission,VisionandCoreValues,aswellassixoverallgoals. Eachgoalhadidentifiedobjectivesandstrategies,withtimelinesforbeginningandcompletingthegoals. OnMarch9,2013,theCityManagerandhiskeystaffmet.Theirpurposewastwofold.First,staffreviewedand discussedtheMission,VisionandCoreValuesdevelopedbytheCityCouncilandcreatedLeadershipStatementsfor thestafftofollowtoensuretheirworkisconsistentwiththevalueoftheCityCouncil.Secondly,staffreviewed andclarifiedthegoals,objectivesandstrategiesidentifiedbytheCityCouncil;ifnecessaryidentifyadditionalgoals consistentwiththeoverallmission,visionandvalues;andestablishtheframeworkforanactionplan.Theresult oftheirworkisdocumentedinthisreport. TheStrategicPlanwillprovideablueprintforactionoverthenextfiveyears.Whendevelopingtheannualbudget, staffwillbetaskedwithmakingsurethatexpendituresandprogramsfurtherthegoalsandCoreValuesstatedin thisdocument.ThisprovidescleardirectiontothestaffastowhatprioritiesareimportanttotheCouncilandplans canbemadeaccordinglytomakesurethatresourcesareallocatedtowardsthoseends.Additionally,thisplanis anexcellentcommunicationtoolthattheCouncilandthestaffcanusewhenspeakingwithresidentsand businesses.Manytimes,adhocrequestscanderaillongertermplans.TheStrategicPlanoutlinesaframework forreceiving,prioritizing,andbudgetingforresidentrequests. Allparticipants,staffandCouncil,agreedtocommittothesuccessofthisplan.Aplanonlybecomesausefuland workingdocumentwhenalltheparticipants(asawholeandasindividuals)makeacommitmenttoreviewitregularly, ogress,make useitmonthly,andmodifyitasneeded.Itisatoolthatcanandshouldbeusedregularlytotrackpr notesofvariationsbetweenexpectationsandactuals,oftimelinesandexpenses,tohelpaccomplisheachgoal,and toholdoneanotheraccountableforupdatesandcompletion. ment MissionState TheCouncilreviewedandrevisedtheMissionStatement&VisionStatementoftheCityandtheresultsareas follows: TheCityofLaPorteembracesourheritage,communityvalues,andopportunities,whileenhancingthequalityof lifeforourcitizens iiiCityofLaPorte2021ACFR DRAFT 03.04.2022 VisionStatement Toprovideimprovedinfrastructure,todriveeconomicgrowth,andtoenhancequalityoflifeforourcitizens. CoreValues TheCityCouncilwantedtospecifythecorevaluesunderwhichtheCityanditsstafffunction.Corevaluesarethe generalguidelinesthatestablishthefoundationforhowanorganizationwilloperate.Staffthendiscussedthese valuestatementstodefineandgainanunderstandingofwhatthoseCoreValuemeanttostafffromaleadership perspective.StafffirstdiscussedwhattheelementsofeachCoreValuerepresented,thenpreparedaLeadership Statementforeachone. ThefollowingaretheCoreValuesoftheCityofLaPorte: Health&PublicSafety:Cityemployeeswillensurethehealthandsafetyofourcitizensbyproviding andmaintainingsuperiorpublicinfrastructureandpublicsafetyservices. Integrity&Accountability:Cityemployeeswillbeopen,honestandtransparent,andbeaccountabletothe CouncilsothatCouncilcanberesponsivetothecitizens. SuperiorCustomerService:Cityemployeeswillproactivelyprovidesuperiorcustomerserviceinapositive andtimelymanner. Qualityineverythingwedo:Cityemployeeswillstriveforsuperiorityinallservicesweprovide. GoalandPlanDevelopment DuringtheCouncilRetreatinOctober2012,sixgoalsweredevelopedbytheCouncil,withstaffprovidingassistance inthedevelopmentofobjectives.InMarch2013,thestafffurtheraddedͻƒĻğƷtotheĬƚƓĻͼtooutlinemore specificallytheactionsthatwouldbenecessarytoachievethestatedgoals.Thedevelopmentandimplementation oftheactionplanwillservetoprovideCouncilaclearunderstandingofhowandwheneachoftheirgoalswill beaccomplished.Theactionplanproposestodothefollowing: Identifyateamleader:EachGoalneedsachampionwhowillleadtheefforttoaccomplishthegoaland beheldaccountablefortheactionplanthatisdeveloped.Ateamleaderforeachgoalwasassigned. Identifyteammembers.Likewiseeachgoalneedsalargerteam,consistingoffellowstafffromacrossall departmentallineswhereappropriate,toassistintheimplementationprocess. Identifypartners.Eachteamshouldidentifythepartners,outsidethecityorganization,whocanprovide expertiseandresourcestoaccomplishthegoal. Defineactionsteps.EachobjectiveneedsdefinedactionstepsshowingCouncilhowthegoalwillbe accomplished.Theactionstepsprovidethebasisforbenchmarks. Prepareatimeline.Timelineswerepreparedforeachoftheobjectives.Staffreviewedthosetimelines andrecommendedadjustments. TheCouncilidentifiedgoalsare: ImproveInfrastructure PreserveHeritageΑtopreservethestructureandamenitiesthatmakeLaPorteunique Ensurethatalldepartmentsandfacilitiesarereadyforanydisaster Toencourageeconomicdevelopment/retaildevelopment ToprovideSuperiorCustomerService Torevitalizeblight/146 ivCityofLaPorte2021ACFR DRAFT 03.04.2022 InadditiontothesixCouncilidentifiedgoals,itwasagreedthatkeyareasofcitygovernmentwerenotincluded inthegoalsidentifiedbyCouncil.Staffwastaskedwithdiscussingotherareaswheretheywouldestablishgoalsand objectivesandbringthemtoCouncilforconsiderationandapprovaltoincludeintheStrategicPlan.Severalnew goalswereidentifiedandareproposedforCouncilconsideration: Toprovideandmaintainsuperiorpublicsafety Continuetoimprovethequalityoflifethroughrecreationalamenities CreateaNeighborhoodPreservationProgram Providediverseandtimelycommunicationsthatpromoteandinfluenceapositivepublic perceptionofLaPorte OnecriticalcomponenttoensuringthattheelementsoftheStrategicPlanarebeingimplementedistoprovideregular statusreportstotheCityCouncil.Staffpreparesandpresentstocouncilquarterlywrittenreportssupplemented withoralreportsoractionitemsforimplementationthatmaybenecessaryinbetweenwrittenreports. Infiscalyear2014,Citystaffappointedkeydepartmentdirectorstocarryoutthemajorcomponentsofthestrategicplan.Staff developedamatrixthatidentifiestargetdatesforcompletionofthecomponentsofthestrategicplan. RelevantFinancialPolicy CitystaffiscomplyingwiththenewGASBpronouncementregardingleasereporting. MajorInitiatives Staffcontinuestooverseethedesignandconstructionofourfitnesscenteraddition.Also,publicworksisoverseeingthe constructionofthemultimilliondollarinfrastructurewater/sewerproject,aswellasdesignforvariousdrainageprojects. LongTermPlanning Giventhecurrenteconomyandtheuncertaintyofthenextfewyears,theCity'sexistingfinancialpositionremainsstrong. TheCityhasincorporatedseveralstrategiestodecreasetheexpensestotheCityoverthenextseveralyears.Risingcostsof personnelandtherelatedbenefitshavebeenachallengetotheCity;however,overthelastfewyears,ahealthyfundbalance intheGeneralFundhasallowedtheCitytoweathertheserisingcosts. Duringtheupcomingyear,thecitywillcontinuetomonitortheeffectsofanewmunicipalutilitydistrictthatwillhave640 singlefamilyhomeswithanaveragevalueof$280,000.Todate,approximately221homeshavebeenpermittedand135 occupied.Alsoincludedinthisdevelopmentis$40,000,000inmultifamilyhousingand$12,000,000inseniorlivinghousing. Buildoutisprojectedoverthenextfiveyears,andcitypropertytaxrevenuefromthisprojectisestimatedto$1,580,000 annually. Duringtheupcomingfiscalyear,thecitywillbenefitfromincreasedestimatedtaxesof$3.3millionannuallyfromnew constructionintheIndustrialDistrictbeingtaxedat64%duetotheexpirationofthenewconstructionperiodandgrowth fromrevaluations.Newconstructionfromresidentialandcommercialwilladd$119millioninvaluetoourpropertyrolls. Conservativerevenueestimatesandeffortstoreduceexpenditureshavecontributedtothe/źƷǤ͸ƭstrongfinancial positionandhaveallowedtheCitytoweathertheeconomicslump.Weareespeciallypleasedthattherehavebeen nopropertytaxesrateincreasesfor(30)thirtyyears.Additionalcapitalprojectsarebeingfundedbyutilizingexcess fundbalancesandpreviouslyissueddebtthathadbeenstranded.Withtheassociatedfunddrawdowns,theremaining fundbalancescontinuetomeetoperationalobjectivesandcurrentfiscalpolicies. vCityofLaPorte2021ACFR DRAFT 03.04.2022 AwardsandAcknowledgements TheGovernmentFinanceOfficersAssociation(GFOA)awardedaCertificateofAchievementforExcellenceinFinancial yearendedSeptember30,2020.This ReportingtotheCityforitsannualcomprehensivefinancialreportforthefiscal wasthefortiethconsecutiveyearthattheCityhasreceivedthisprestigiousaward.InordertobeawardedaCertificate ofAchievement,theCitypublishedaneasilyreadableandefficientlyorganizedannualcomprehensivefinancialreport. Thisreportsatisfiedbothgenerallyacceptedaccountingprinciplesandapplicablelegalrequirements. ACertificateofAchievementisvalidforaperiodofoneyearonly.Webelievethatourcurrentannualcomprehensive financialreportcontinuestomeettheCertificateofAchievementProgram'srequirementsandwearesubmittingitto theGFOAtodetermineitseligibilityforanothercertificate.Inaddition,thecityalsoreceivedtheDCh!͸ƭDistinguished BudgetAwardforitsannualbudgetdocument.InordertoqualifyfortheDistinguishedBudgetPresentationAward,the government'sbudgetdocumentwasjudgedtobeproficientinseveralcategories,includingasapolicydocument,a financialplan,anoperationsguideandacommunicationsdevice.OtherfinancialawardstotheCityarethePopular FinancialReportAwardfromGFOA,theInvestmentPolicyAwardfromtheGovernmentƩĻğƭǒƩĻƩ͸ƭOrganizationofTexas, theTransparencyStarsAwardfromtheStateofTexasComptrollerandtheAchievementofExcellenceinProcurementAward fromtheNationalProcurementInstitute. Thepreparationofthisreportwouldnothavebeenpossiblewithouttheefficientanddedicatedservicesoftheentirestaff ofthefinanceandadministrationdepartment.Wewouldliketoexpressourappreciationtoallmembersofthe whoassistedandcontributedtothepreparationofthisreport.Creditalsomustbegiventothemayorand department citycouncilfortheirunfailingsupportformaintainingthehigheststandardsofprofessionalisminthemanagementof theCityofLaPorte'sfinances. Respectfullysubmitted, viCityofLaPorte2021ACFR DRAFT 03.04.2022 viiCityofLaPorte2021ACFR DRAFT 03.04.2022 viiiCityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS LISTOFELECTEDANDAPPOINTEDOFFICIALS FortheYearEndedSeptember30,2021 ElectedOfficialsPosition LouisRigbyMayor MandiWilliamsCouncilMemberΑDistrictOne ChuckEngelkenCouncilMemberΑDistrictTwo WilliamBentleyCouncilMemberΑDistrictThree ThomasGarzaCouncilMemberΑDistrictFour JayMartinCouncilMemberΑDistrictFive RobbieMcLarrinMayorProTemΑDistrictSix BrandonLunsfordCouncilMemberΑAtLargeA BrentMcCaulleyCouncilMemberΑAtLargeB CityManagementPosition CorbyAlexanderCityManager JasonWeeksAssistantCityManager SteveDeardorffPoliceChief RayMayoDirectorofPublicWorks LeeWoodwardCitySecretary DeniseMitranoMunicipalJudge MichaelG.DolbyDirectorofFinance ixCityofLaPorte2021ACFR DRAFT 03.04.2022 xCityofLaPorte2021ACFR DRAFT 03.04.2022 FINANCIALSECTION 1CityofLaPorte2021ACFR DRAFT 03.04.2022 2CityofLaPorte2021ACFR DRAFT 03.04.2022 INDEPENDENT! 5Lhw͸{REPORT TotheHonorableMayorand MembersofCityCouncil CityofLaPorte,Texas ReportontheFinancialStatements Wehaveauditedtheaccompanyingfinancialstatementsofthegovernmentalactivities,thebusinesstypeactivities,each eaggregateremainingfundinformationoftheCityofLaPorte,Texas,(theͻ/źƷǤͼΜͲasofandfortheyear majorfundandth endedSeptember30,2021,andtherelatednotestothefinancialstatements,whichcollectivelycomprisethe/źƷǤ͸ƭbasic financialstatementsaslistedinthetableofcontents. sResponsibilityfortheFinancialStatements ağƓğŭĻƒĻƓƷ͸ Managementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewith accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica;thisincludesthedesign,implementation,and maintenanceofinternalcontrolrelevanttothepreparationandfairpresentationoffinancialstatementsthatarefreefrom materialmisstatement,whetherduetofraudorerror. !ǒķźƷƚƩ͸ƭResponsibility Ourresponsibilityistoexpressopinionsonthesefinancialstatementsbasedonouraudit.Wedidnotauditthefinancial statementsoftheLaPorteRedevelopmentAuthority,whichrepresent6percent,11percentand7percent,respectively,of theassets,liabilitiesandrevenuesofthegovernmentalfunds.Thosefinancialstatementswereauditedbyotherauditors whosereporthasbeenfurnishedtous,andouropinion,insofarasitrelatestotheamountsincludedfortheLaPorte RedevelopmentAuthority,isbasedsolelyonthereportoftheotherauditors.Weconductedourauditinaccordancewith auditingstandardsgenerallyacceptedintheUnitedStatesofAmerica.Thosestandardsrequirethatweplanandperformthe audittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement. Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancial statements.TheproceduresselecteddependontheğǒķźƷƚƩ͸ƭjudgment,includingtheassessmentoftherisksofmaterial misstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditor considersinternalcontrolrelevanttotheĻƓƷźƷǤ͸ƭpreparationandfairpresentationofthefinancialstatementsinorderto designauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopiniononthe cludesevaluatingthe effectivenessoftheĻƓƷźƷǤ͸ƭinternalcontrol.Accordingly,weexpressnosuchopinion.Anauditalsoin appropriatenessofaccountingpoliciesusedandthereasonablenessofsignificantaccountingestimatesmadeby management,aswellasevaluatingtheoverallpresentationofthefinancialstatements. Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinions. 3CityofLaPorte2021ACFR DRAFT 03.04.2022 TotheHonorableMayorand MembersofCityCouncil Opinions Inouropinion,basedonourauditandthereportoftheotherauditors,thefinancialstatementsreferredtoabovepresent fairly,inallmaterialrespects,therespectivefinancialpositionofthegovernmentalactivities,thebusinesstypeactivities, eachmajorfundandtheaggregateremainingfundinformationoftheCity,asofSeptember30,2021,andtherespective changesinfinancialpositionand,whereapplicable,cashflowsthereoffortheyearthenendedinaccordancewithaccounting principlesgenerallyacceptedintheUnitedStatesofAmerica. OtherMatters RequiredSupplementaryInformation AccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequirethattheƒğƓğŭĻƒĻƓƷ͸ƭdiscussionand analysis,thebudgetarycomparison,requiredpensionsysteminformationandotherpostemploymentbenefitinformation aslistedonthetableofcontents,bepresentedtosupplementthebasicfinancialstatements.Suchinformation,although notapartofthebasicfinancialstatements,isrequiredbytheGovernmentalAccountingStandardsBoard,whoconsidersit tobeanessentialpartoffinancialreportingforplacingthebasicfinancialstatementsinanappropriateoperational, economic,orhistoricalcontext.Wehaveappliedcertainlimitedprocedurestotherequiredsupplementaryinformationin accordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica,whichconsistedofinquiriesof managementaboutthemethodsofpreparingtheinformationandcomparingtheinformationforconsistencywith ƒğƓğŭĻƒĻƓƷ͸ƭresponsestoourinquiries,thebasicfinancialstatements,andotherknowledgeweobtainedduringouraudit ofthebasicfinancialstatements.Wedonotexpressanopinionorprovideanyassuranceontheinformationbecausethe limitedproceduresdonotprovideuswithsufficientevidencetoexpressanopinionorprovideanyassurance. OtherInformation Ourauditwasconductedforthepurposeofformingopinionsonthefinancialstatementsthatcollectivelycomprisethe/źƷǤ͸ƭ basicfinancialstatements.Theintroductorysection,combiningandindividualfundstatementsandschedules,andstatistical sectionarepresentedforpurposesofadditionalanalysisandarenotarequiredpartofthebasicfinancialstatements. vedfrom Thecombiningandindividualfundstatementsandschedulesaretheresponsibilityofmanagementandwerederi andrelatedirectlytotheunderlyingaccountingandotherrecordsusedtopreparethebasicfinancialstatements.Such informationhasbeensubjectedtotheauditingproceduresappliedintheauditofthebasicfinancialstatementsandcertain additionalprocedures,includingcomparingandreconcilingsuchinformationdirectlytotheunderlyingaccountingandother recordsusedtopreparethebasicfinancialstatementsortothebasicfinancialstatementsthemselves,andotheradditional proceduresinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica.Inouropinion,the combiningandindividualfundstatementsandschedulesarefairlystated,inallmaterialrespects,inrelationtothebasic financialstatementsasawhole. Theintroductoryandstatisticalsectionshavenotbeensubjectedtotheauditingproceduresappliedintheauditofthebasic financialstatementsand,accordingly,wedonotexpressanopinionorprovideanyassuranceonthem. Houston,Texas March14,2022 4CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS a!b!D9a9b͸{DISCUSSIONANDANALYSIS AsmanagementoftheCityofLaPorte,weofferreadersoftheCityofLatƚƩƷĻ͸ƭfinancialstatementsthisnarrativeoverview andanalysisofthefinancialactivitiesoftheCityofLaPorteforthefiscalyearendedSeptember30,2021.Weencourage readerstoconsidertheinformationpresentedhereinconjunctionwithadditionalinformationthatwehavefurnishedinour letteroftransmittal,whichcanbefoundonstartingonpageiofthisreport. FINANCIALHIGHLIGHTS ΘTheassetsanddeferredoutflowsofresourcesoftheCityofLaPorteexceededitsliabilitiesanddeferredinflowsof resourcesatthecloseofthemostrecentfiscalyearby$165.8million(netposition).Ofthisamount,$53.3millionis restrictedforspecialpurposesand$87.9reflectsthenetinvestmentincapitalassets.Theremainingbalanceis unrestrictednetposition,$24.6million,whichcanbeusedtomeetthe/źƷǤ͸ƭongoingobligationstoresidentsand creditors. ΘNetpositionincreasedby$18.4millionasaresultofoperations. ΘTheCityofLatƚƩƷĻ͸ƭtotalexpenseswere$71.3million.Programrevenuesof$20.6millionreducedthenetcostofthe /źƷǤ͸ƭfunctionstobefinancedfromthe/źƷǤ͸ƭgeneralrevenuesto$69.1million. ΘTheCityofLatƚƩƷĻ͸ƭtotallongtermliabilitiesanddebtincreasedby$11.4million,or10%,duringthecurrentfiscalyear. Thisdueprimarilytotheissuanceof$11.5millionincertificatesofobligations. OVERVIEWOFTHEFINANCIALSTATEMENTS ThisdiscussionandanalysisisintendedtoserveasanintroductiontotheCityofLatƚƩƷĻ͸ƭbasicfinancialstatements.The /źƷǤ͸ƭbasicfinancialstatementsarecomprisedofthreecomponents:(1)governmentwidefinancialstatements,(2)fund financialstatementsand(3)notestothefinancialstatements.Thisreportalsocontainsothersupplementaryinformationin additiontothebasicfinancialstatementsthemselves. GOVERNMENTWIDESTATEMENTS ThegovernmentwidestatementsreportinformationabouttheCityasawholeusingaccountingmethodssimilartothose usedbyprivatesectorcompanies. vernmentwidestatements,report TheStatementofNetPositionandtheStatementofActivities,whicharethego informationabouttheCityasawholeandaboutitsactivitiesinawaythathelpsanswerthequestionofwhethertheCityis betteroffthisyearascomparedtolastyear.Thesestatementsincludeallassetsandliabilitiesandarepresentedonthe accrualbasisofaccounting.Allcurrentyearrevenuesandexpensesaretakenintoaccountregardlessofwhenthecashis receivedorpaid. TheStatementofNetPositionpresentsinformationonalloftheCityofLatƚƩƷĻ͸ƭassets,deferredoutflows,liabilitiesand deferredinflowswiththedifferencebetweenthethreereportedasnetposition.Overtime,deferredoutflows,increases anddecreasesinnetpositionmayserveasausefulindicatorofwhetherthefinancialpositionoftheCityofLaPorteis improvingordeteriorating. TheStatementofActivitiespresentsinformationshowinghowtheŭƚǝĻƩƓƒĻƓƷ͸ƭnetpositionchangedduringthemostrecent fiscalyear.Allchangesinnetpositionarereportedassoonastheunderlyingeventgivingrisetothechangeoccurs,regardless ofthetimingofrelatedcashflows.Thus,revenuesandexpensesarereportedinthisstatementforsomeitemsthatwillonly resultincashflowsinfuturefiscalperiods(e.g.,uncollectedtaxesandearnedbutunusedvacationandsickleave). 5CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS a!b!D9a9b͸{DISCUSSIONANDANALYSIS(continued) BoththegovernmentwidefinancialstatementsdistinguishfunctionsoftheCitythatareprincipallysupportedbytaxesand intergovernmentalrevenues(governmentalactivities)fromotherfunctionsthatareintendedtorecoverallorasignificant portionoftheircoststhroughtheiruserfeesandcharges(businesstypeactivities).ThegovernmentalactivitiesoftheCity includegeneralgovernment,publicsafety,publicworks,health,welfareandsanitationandcultureandrecreation.The thority. businesstypeactivitiesoftheCityconsistofwaterandsewerutilities,airport,andtheLaPorteAreaWaterAu FUNDFINANCIALSTATEMENTS Afundisagroupingofrelatedaccountsthatisusedtomaintaincontroloverresourcesthathavebeensegregatedforspecific activitiesorobjectives.TheCity,likeotherstateandlocalgovernments,usesfundaccountingtoensureanddemonstrate compliancewithfinancerelatedlegalrequirements.AllofthefundsoftheCitycanbedividedintotwocategoriesΑ governmentalandproprietaryΑandutilizedifferentaccountingapproaches. GovernmentalFunds Governmentalfundsareusedtoaccountforessentiallythesamefunctionsreportedasgovernmentalactivitiesinthe governmentwidefinancialstatements.However,unlikethegovernmentwidefinancialstatements,governmentalfund financialstatementsfocusonnearterminflowsandoutflowsofspendableresources,aswellasonbalancesofspendable resourcesavailableattheendofthefiscalyear.SuchinformationmaybeusefulinevaluatingaŭƚǝĻƩƓƒĻƓƷ͸ƭnearterm financingrequirements. Becausethefocusofgovernmentalfundsisnarrowerthanthatofthegovernmentwidefinancialstatements,itisusefulto comparetheinformationpresentedforgovernmentalfundswithsimilarinformationpresentedforgovernmentalactivities inthegovernmentwidefinancialstatements.Bydoingso,readersmaybetterunderstandthelongtermimpactofthe ŭƚǝĻƩƓƒĻƓƷ͸ƭneartermfinancingdecisions.Boththegovernmentalfundbalancesheetandthegovernmentalfund statementofrevenues,expendituresandchangesinfundbalancesprovideareconciliationtofacilitatethiscomparison betweengovernmentalfundsandgovernmentalactivities. TheCitymaintainsfifteenindividualgovernmentalfunds.Informationispresentedseparatelyinthegovernmentalfund balancesheetandinthegovernmentalfundstatementofrevenues,expendituresandchangesinfundbalancesforthe GeneralFund,RestrictedGrantsFund,CapitalImprovementsFund,DebtServiceFundandLaPorteRedevelopmentAuthority Λͻw5!ͼΜwhichareconsideredtobemajorfunds.Datafromtheothertengovernmentalfundsarecombinedintoasingle, aggregatedpresentation. TheCityadoptsanannualappropriatedbudgetforitsGeneralFund.Budgetarycomparisonstatementshavebeenprovided todemonstratecompliancewiththesebudgets. ProprietaryFunds TheCitymaintainstwotypesofproprietaryfunds.Proprietaryfundsareusedtoreportthesamefunctionspresentedas businesstypeactivitiesinthegovernmentwidestatements.TheCityusesproprietaryfundstoaccountforitsutilities,airport nallyamong andwaterauthority.Internalservicesfundsareanaccountingdeviceusedtoaccumulateandallocatecostsinter the/źƷǤ͸ƭvariousfunctions.TheCityusesitsinternalservicefundstoaccountformotorpoolservices,technologyservices andinsurance.Becausetheseservicespredominatelybenefitthegovernmentalratherthanbusinesstypefunctions,they havebeenincludedinthegovernmentalactivitiesinthegovernmentwidefinancialstatements. 6CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS a!b!D9a9b͸{DISCUSSIONANDANALYSIS(continued) Enterprisefundsareusedtoreportthesamefunctionspresentedasbusinesstypeactivitiesinthegovernmentwidefinancial statements,onlyinmoredetail.TheCityusesenterprisefundstoaccountforitsutilityoperations,LaPorteAreaWater AuthorityandtheAirport.Allinternalservicefundsarecombinedintoasingleaggregatedpresentationintheproprietary fundfinancialstatements. NOTESTOTHEFINANCIALSTATEMENTS Thenotesprovideadditionalinformationthatisessentialtoafullunderstandingofthedataprovidedinthegovernment wideandfundfinancialstatements. OTHERINFORMATION Inadditiontothebasicfinancialstatementsandtheaccompanyingnotes,thisreportalsopresentscertainrequired supplementaryinformationconcerningthe/źƷǤ͸ƭprogressinfundingitsobligationtoprovideotherpostemployment benefits,pensioninformationandgeneralfundbudgetarycomparisons. Thecombiningstatementsreferredtoearlierinconnectionwithnonmajorgovernmentalfundsandinternalservicesfunds arepresentedimmediatelyfollowingtherequiredsupplementaryinformation. GOVERNMENTWIDEFINANCIALANALYSIS Asnotedearlier,netpositionmayserveovertimeasausefulindicatorofthe/źƷǤ͸ƭfinancialposition.FortheCity,assets 65.8millionasofSeptember30,2021,intheprimary anddeferredoutflowsexceedliabilitiesanddeferredinflowsby$1 governmentasfollows: CityofLaPorte'sNetPosition GovernmentalBusinesstype ActivitiesActivitiesTotal 202120202021202020212020 Currentandotherassets$173,208,686$137,689,960$16,529,657$17,122,824$189,738,343$154,812,784 Capitalassets,net76,064,27176,085,59432,079,05732,582,335108,143,328108,667,929 TotalAssets 249,272,957213,775,55448,608,71449,705,159297,881,671263,480,713 DeferredOutflows 15,272,46212,277,3911,785,1001,489,50017,057,56213,766,891 Otherliabilities11,826,0766,097,1611,236,4702,663,79213,062,5468,760,953 LongtermLiabilities117,447,328105,768,7488,307,7718,563,451125,755,099114,332,199 TotalLiabilities 129,273,404111,865,9099,544,24111,227,243138,817,645123,093,152 DeferredInflows 9,264,9536,074,1281,076,000675,30010,340,9536,749,428 NetPosition Netinvestmentincapitalassets 55,776,26652,403,86432,079,05732,582,33587,855,32384,986,199 Restricted53,286,21839,484,82453,286,21839,484,824 Unrestricted16,944,57816,224,2207,694,5166,709,78124,639,09422,934,001 TotalNetPosition$126,007,062$108,112,908$39,773,573$39,292,116$165,780,635$147,405,024 7CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS a!b!D9a9b͸{DISCUSSIONANDANALYSIS(continued) NetInvestmentinCapitalAssets Thelargestportionofthe/źƷǤ͸ƭnetposition(53.0%)reflectsitsinvestmentincapitalassets(e.g.,land,buildings,machinery, equipment,improvements,constructioninprogressandinfrastructure),lessanydebtusedtoacquirethoseassetsthatisstill outstanding.TheCityusesthesecapitalassetstoprovideservicestocitizens;consequently,theseassetsarenotavailable forfuturespending.Althoughthe/źƷǤ͸ƭinvestmentinitscapitalassetsisreportednetofrelateddebt,itshouldbenoted thattheresourcesneededtorepaythisdebtmustbeprovidedfromothersources,sincetheassetsthemselvescannotbe usedtoliquidatetheseliabilities. RestrictedNetPosition Aportionofthe/źƷǤ͸ƭnetposition,$53.3millionor32.1%representsresourcesthataresubjecttoexternalrestrictionon howtheymaybeused. UnrestrictedNetPosition TheCityreportsanunrestrictednetpositionof$24.6millionor14.9%.Thisisanincreaseof$1.7million.Thechangeis attributedprimarilytogovernmentalactivitiesincreaseinrevenuesrelatedtotaxes,operatinggrantsandinvestment earningsandcashposition. ThefollowingtableprovidesasummaryoftheCitǤ͸ƭoperationsfortheyearendedSeptember30,2021,withcomparative datatotalfortheyearendedSeptember30,2020.Governmentalactivitiesincreasedthe/źƷǤ͸ƭnetpositionby$17.9million asaresultofoperations,andBusinesstypeactivitiesincreasednetpositionby$481thousandasaresultofoperations. 8CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS a!b!D9a9b͸{DISCUSSIONANDANALYSIS(continued) StatementofActivities Thefollowingtableprovidesasummaryofthe/źƷǤ͸ƭchangesinnetposition: ChangeinCityofLaPorte'sNetPosition GovernmentalActivitiesBusinesstypeActivitiesTotal 202120202021202020212020 Revenues Programrevenues: ChargesforServices9,083,072$$9,137,342$10,835,992$10,027,657$19,919,064$19,164,999 Operatinggrantsand contributions553,8412,149,364553,8412,149,364 Capitalgrantsand contributions7,700109,372125,590133,290109,372 Generalrevenues: Propertytaxes32,844,48429,727,74732,844,48429,727,747 Othertaxes17,278,46916,879,83617,278,46916,879,836 Industrialpayments18,188,12116,439,51018,188,12116,439,510 Investmentearnings89,2911,158,8559,713147,89799,0041,306,752 Miscellaneous649,354487,092(20,884)649,354466,208 TotalRevenues 78,694,33276,089,11810,971,29510,154,67089,665,62786,243,788 Expenses Generalgovernment16,681,03116,563,55716,681,03116,563,557 Publicsafety23,696,24422,524,84323,696,24422,524,843 Publicworks8,785,0807,341,6088,785,0807,341,608 Cultureandrecreation5,543,1215,884,7935,543,1215,884,793 Health,welfareandsanitation4,477,8444,861,6804,477,8444,861,680 Interestonlongtermdebt843,9193,219,632843,9193,219,632 Utilityservices9,054,6938,675,7139,054,6938,675,713 LPAWA1,952,1862,847,6401,952,1862,847,640 Airport 255,898213,024255,898213,024 TotalExpenses 60,027,23960,396,11311,262,77711,736,37771,290,01672,132,490 IncreaseinNetPosition BeforeTransfers 18,667,09315,693,005(291,482)(1,581,707)18,375,61114,111,298 Transfers(772,939)(766,623)772,939766,623 ChangeinNetPosition 17,894,15414,926,382481,457(815,084)18,375,61114,111,298 Netposition,Beginning 108,112,90893,186,52639,292,11640,107,200147,405,024133,293,726 NetPosition,Ending$126,007,062$108,112,908$39,773,573$39,292,116$165,780,635$147,405,024 TheŭƚǝĻƩƓƒĻƓƷ͸ƭtotalnetpositionasaresultofoperationsincreasedby$18.4millionduringthecurrentfiscalyear.Charges forservicesrepresented22%oftotalrevenues,propertytaxesandindustrialpaymentswere57%oftotalrevenues,sales enues.Ontheexpenseside,public taxesandothertaxeswere19%,theremainingrevenuesaccountedfor3%oftotalrev worksexpenseswere12%ofthetotal,whilepublicsafetywas33%andgeneralgovernmentwas23%.Utility,LPAWA,and airportexpenseswere16%oftotalexpenses.Interestonlongtermdebtwas1%oftotalexpenses. 9CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS a!b!D9a9b͸{DISCUSSIONANDANALYSIS(continued) GOVERNMENTALACTIVITIES Acomparisonofprogramexpensestoprogramrevenuesandrevenuesbysourceforgovernmentalactivitiesfollows: ExpenseandProgramRevenuesGovernmentalActivities $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ GeneralPublicPublicCultureandHealth,Intereston governmentsafetyworksrecreationwelfareandlongtermdebt sanitation ExpensesRevenues Revenuessourcesforgovernmentalactivitiesweredistributedasfollows: Operating RevenuebySourceGovernmentalActivities grantsand Investment MiscellaneousChargesforServices contributions earnings 1%11% 1% 0% Capitalgrants Industrialpayments and 23% contributions 0% Propertytaxes Othertaxes 42% 22% 10CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS a!b!D9a9b͸{DISCUSSIONANDANALYSIS(continued) FortheyearendedSeptember30,2021,revenueswithouttransfersinthegovernmentalactivitiestotaled$78.7million.This representsanincreaseofapproximately$2.6millionor3.4%dueprimarilytoanincreaseinoperatinggrants,increased propertytaxrevenuewhichisup$3.5millionduetoincreasedvaluations.Industrialpaymentsarealsoup$1.7millionwhen comparedtoprioryear. BUSINESSTYPEACTIVITIES Revenueswithouttransfersorinterestinthebusinesstypeactivitiestotaled$11.0million,anincreaseof$817thousand icesrelatedtodevelopmentintheCityandincreased fromtheprioryear.Thisincreaseisduetoanincreaseinchargesforserv usage.Acomparisonbetweenexpensesandprogramrevenues(chargesforservices)relatingtoUtility,LPAWAandairport operationsfollows. 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 $ UtilityLPAWAAirport ExpensesRevenues FINANCIALANALYSISOFTHECITY'SFUNDS TheCityusesfundaccountingtoensureanddemonstratecompliancewithfinancerelatedlegalrequirements.Asofthe closeofthecurrentfiscalyear,the/źƷǤ͸ƭgovernmentalfundsreportedcombinedendingfundbalancesofmillion,of 26,936,167millionfromtheprioryear.Thisincreaseisduetoanincreaseinpropertytaxes,industrialpaymentsandother taxes,aswellastheissuanceofcertificatesofobligation,Series2021. Asnotedearlier,fundaccountingisusedtodemonstrateandensurecompliancewithfinancerelatedlegalrequirements. ovideinformationofnearterminflows,outflows, GovernmentalFunds Thefocusofthe/źƷǤ͸ƭgovernmentalfundsistopr andbalancesofspendableresources.Suchinformationisusefulinassessingthe/źƷǤ͸ƭfinancingrequirements.Inparticular, unassignedfundbalancemayserveasausefulmeasureofthe/źƷǤ͸ƭnetresourcesavailableforspendingattheendofthe fiscalyear. TheGeneralfundisthechiefoperatingfundoftheCity.Attheendofthecurrentfiscalyear,unassignedfundbalanceofthe generalfundwas$64.4million,anincreaseof$406.3thousandduetoanincreaseinpropertytaxes.Industrialpayments ͸ƭliquidity,itmaybeusefultocomparebothunassignedfundbalanceand andsalestaxes.Asameasureofthegeneralfund totalfundbalancetototalfundexpenditures.Unassignedfundbalancerepresents136%oftotalgeneralfundexpenditures andtotalfundbalancerepresents137%ofthesame,excludingonetimetransfers. 11CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS a!b!D9a9b͸{DISCUSSIONANDANALYSIS(continued) TheDebtServicefundhasatotalfundbalanceofapproximately$4.5million,allofwhichisrestrictedforthepaymentof debtservice.Thenetdecreaseinfundbalancefromtheprioryearof$530thousandwasaplanneddrawdownoffund balance. TheRestrictedFunds(Grants)hasatotalfundbalanceof$2.8million,allofwhichisrestrictedtospecificactivitiesorfacilities. Thefundbalanceincreasedby$186thousand. TheLaPorteRedevelopmentAuthorityhadatotalfundbalanceofapproximatelymillion,allofwhichisrestrictedforcapital projects.ThenetinfundbalancefromtheprioryearofmillionwasdueanincreaseinpropertytaxesreceivedfromtheCity ofLaPorte,LaPorteISDandHarrisCounty. ichisrestrictedforcapitalprojects. TheCapitalImprovementsFundhadatotalfundbalanceofapproximatelymillion,allofwh Thenetinfundbalancefromtheprioryearofthousandwasduetotransfersfromotherfunds. ProprietaryFunds.The/źƷǤ͸ƭproprietaryfundsprovidethesametypeofinformationfoundinthegovernmentwidefinancial statements. UnrestrictednetpositionoftherespectiveproprietaryfundsareUtility$5.3million,LaPorteAreaWaterAuthority$2.3 millionandAirport$89thousand.Thechangesinnetpositionoftheproprietaryfundsfor2021wereasfollows:UtilityΑ $430thousand,LaPorteAreaWaterAuthorityΑ$244thousandandAirportΑ($193)thousand.TheincreaseintheUtility Fundisduetoanincreaseinchargesforservicesandtransfersfromotherfunds.TheincreaseintheLaPorteAreaWater Authorityisduetoanincreaseinoperatingrevenuesandadecreaseinoperatingexpensesrelatedtoaonetimetrueupof omtheCityofHoustoninFY2020. waterpurchasecostfr GeneralFundBudgetaryHighlights ActualrevenuesexceededthefinalGeneralFundbudgetedrevenuesby$6.4million.Propertytaxesexceededbudgetby $4.5million,salesandusetaxesby$704thousand,industrialpaymentsby$878thousand,chargesforservicesand 48thousandand$404thousandrespectively. miscellaneousby$2 Thetotalappropriationsexceededexpendituresby$922thousand,themajorityofwhichcanbeattributedtothree departments.Variancesinalldepartmentswerelessthan$500thousand. CapitalAssetandDebtAdministration CapitalAssets.The/źƷǤ͸ƭinvestmentincapitalassetsforitsgovernmentalandbusinesstypeactivitiesasofSeptember30, 2021,amountsto$108.1million(netofaccumulateddepreciation).Thisinvestmentincapitalassetsincludesland,buildings, roads,parkfacilities,waterandwastewaterplantsandservicelines,machineryandequipment,andconstructioninprogress. Thetotaldecreaseinthe/źƷǤ͸ƭinvestmentincapitalassetsforthecurrentfiscalyearwasapproximately$525thousand.The followingtableshowscapitalassetsactivityforthe2021and2020fiscalyears: SCHEDULEOFCAPITALASSETS (netofdepreciation) GovernmentalActivitiesBusinesstypeActivitiesTotal 202120202021202020212020 Land10,222,869$$10,326,295$603,940$447,791$10,826,809$10,774,086 Constructioninprogress6,303,0983,934,9895,490,8984,969,83611,793,9968,904,825 Infrastructure22,863,90824,501,17322,863,90824,501,173 Buildingsandimprovements27,555,94728,913,08023,755,67324,934,03951,311,62053,847,119 Machineryandequipment9,118,4498,410,0572,228,5462,230,66911,346,99510,640,726 Totals76,064,271$$76,085,594$32,079,057$32,582,335$108,143,328$108,667,929 12CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS a!b!D9a9b͸{DISCUSSIONANDANALYSIS(continued) Constructioninprogressatyearendrepresentsongoingprojects;toincludevariouswaterandsewerprojects.Additional informationoncapitalassetsactivitycanbefoundinthenotestothefinancialstatements. LONGTERMDEBT Attheendofthecurrentfiscalyear,theCityhadtotaldebtoutstandingof$42.9million.Thisamountisbackedbythefull faithandcreditoftheCity. TheCitymaintainsanͻ!!њͼwithStandardandtƚƚƩ͸ƭforgeneralobligationdebt. Additionalinformationonlongtermdebtactivitycanbefoundinthenotestothefinancialstatements. SCHEDULEOFLONGTERMLIABILITIES GovernmentalBusinesstypeTotal ActivitiesActivitiesActivities 202120202021202020212020 GeneralObligationBonds13,975,000$$16,650,000$$$13,975,000$16,650,000 CertificatesofObligation25,845,00015,185,00025,845,00015,185,000 PremiumonIssuance3,069,5381,190,4723,069,5381,190,472 DeveloperAgreements4,596,0444,994,4074,596,0444,994,407 CompensatedAbsences3,506,9833,489,461164,171163,1523,671,1543,652,613 NetPensionLiabilityTMRS10,406,99911,140,5101,107,8001,208,49911,514,79912,349,009 NetPensionLiabilityTESRS336,565261,913336,565261,913 TotalOPEBLiabilitySDBF1,393,5511,140,134148,300123,7001,541,8511,263,834 TotalOPEBLiabilityRHCP54,317,64851,716,8516,887,5007,068,10061,205,14858,784,951 Totals$117,447,328$105,768,748$8,307,771$8,563,451$125,755,099$114,332,199 ECONOMICFACTORSANDNEXT—9!w͸{BUDGETSANDRATES Duringtheupcomingyear,theCitywillhavenoincreaseinthepropertytaxrateandnoutilityfundrateincrease.Thefiscal year20212022budgetincludesthefollowinghighlights: Meritincreasesfornoncivilserviceemployees$495,675 Meetingandconferenceincreasesforcivilserviceemployees$155,332 Nochangeinemployeecontributionforhealthinsurance Capitalprojectsofapproximately$20.3million(including$1.5millionfromStreetMaintenanceSalesTaxFunding) and$10.8millionfromgrantfunding Vehiclereplacementof$2,635,241 Transferof$4.9millionfromtheGeneralfundforCIP Transferof$4.0millionfromGeneralfundfortheInsurancefund 13CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS a!b!D9a9b͸{DISCUSSIONANDANALYSIS(continued) OveralltheupcomingGeneralFundbudgetprojectsadecreaseof$6.82millionforonetimecapitalprojects.Asshownbelow, propertyvaluesandsalestaxescontinuetoincrease. Thetrendfortotalassessedvalueshasfluctuatedslightlyoverthepastfiveyearsresultinginatotalincreaseof28%. AssessedPropertyValue(inbillions) $4.4 $4.2 $4.0 $3.8 $3.6 $3.4 $3.2 $3.0 20172018201920202021 Salestaxrevenues(inmillions) $15.0 $14.0 $13.0 $12.0 $11.0 $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 20172018201920202021 REQUESTSFORINFORMATION ThisfinancialreportisdesignedtoprovideageneraloverviewoftheCityofLatƚƩƷĻ͸ƭfinancesforallthosewithaninterest inthe/źƷǤ͸ƭfinances.Questionsconcerningthisreportorrequestsforadditionalfinancialinformationshouldbedirectedto theDirectorofFinance,604WestFairmontParkway,LaPorte,Texas77571. 14CityofLaPorte2021ACFR DRAFT 03.04.2022 BASICFINANCIALSTATEMENTS 15CityofLaPorte2021ACFR DRAFT 03.04.2022 16CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA1 STATEMENTOFNETPOSITION September30,2021 GovernmentalBusinesstype ActivitiesActivitiesTotal Assets Cashandcashequivalents$156,963,932$14,144,742$171,108,674 Investments9,040,2751,043,76110,084,036 Receivables,netallowanceforuncollectable4,273,6581,305,1545,578,812 Duefromothergovernment2,710,3622,710,362 Inventories220,45936,000256,459 Capitalassets: Capitalassetsnotsubjecttodepreciation16,525,9676,094,83822,620,805 Capitalassets,netofaccumulateddepreciation59,538,30425,984,21985,522,523 Totalcapitalassets,net76,064,27132,079,057108,143,328 TotalAssets 249,272,95748,608,714297,881,671 DeferredOutflowsofResources Deferredchargeonrefunding412,216412,216 DeferredoutflowsrelatedtoTMRSpensions4,277,158455,2004,732,358 DeferredoutflowsrelatedtoTESRSpensions35,92635,926 DeferredoutflowsrelatedtoOPEBRetireeHealthCarePlan10,176,3101,290,40011,466,710 DeferredoutflowsrelatedtoOPEBSupplementalDeathBenefits370,85239,500410,352 TotalDeferredOutflows 15,272,4621,785,10017,057,562 Liabilities Accountspayable5,672,473470,1476,142,620 Accruedliabilities1,820,055111,0681,931,123 Unearnedrevenue4,333,5482574,333,805 Customerdeposits654,998654,998 Longtermnoncurrentliabilities: Duewithinoneyear3,995,3498,2094,003,558 Dueinmorethanoneyear46,997,216155,96247,153,178 NetpensionliabilityTMRS10,406,9991,107,80011,514,799 NetpensionliabilityTESRS336,565336,565 NetOPEBliabilityRetireeHealthCarePlan54,317,6486,887,50061,205,148 TotalOPEBliabilitySupplementalDeathBenefits1,393,551148,3001,541,851 TotalLiabilities 129,273,4049,544,241138,817,645 DeferredInflowsofResources DeferredinflowsrelatedtoTMRSpensions4,657,782495,8005,153,582 DeferredinflowsrelatedtoTESRSpensions16,57916,579 DeferredinflowsrelatedtoOPEBRetireeHealthCarePlan4,497,054570,2005,067,254 DeferredinflowsrelatedtoOPEBSupplementalDeathBenefits93,53810,000103,538 TotalDeferredOutflows 9,264,9531,076,00010,340,953 NetPosition NetInvestmentincapitalassets55,776,26632,079,05787,855,323 Restrictedfor: Debtservice5,588,8205,588,820 Economicdevelopment18,324,61818,324,618 Seniorcitizenprograms10,54310,543 Replacementoftrees511,258511,258 Municipalcourtbuilding&technology541,234541,234 Parkimprovements763,906763,906 Publicsafety2,882,9392,882,939 Publicworks5,463,1245,463,124 Other483,404483,404 Capitalprojects18,716,37218,716,372 Unrestricted16,944,5787,694,51624,639,094 TotalNetPosition$126,007,062$39,773,573$165,780,635 SeeNotestoFinancialStatements17CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA2 STATEMENTOFACTIVITIESPage1of2 FortheYearEndedSeptember30,2021 ProgramRevenues CapitalGrants ChargesforOperatingGrants and ExpensesServicesandContributionsContributions Functions/Programs Governmentalactivities: Generalgovernment$16,681,031$2,513,535$$ Publicsafety23,696,2442,088,650507,709 Publicworks8,785,080286,51245,0247,700 Cultureandrecreation5,543,1211,781,7981,108 Health,welfareandsanitation4,477,8442,412,577 Interestonlongtermdebt843,919 TotalGovernmentalActivities 60,027,2399,083,072553,8417,700 BusinesstypeActivities: Utility9,054,6938,700,852 LPAWA1,952,1862,071,408125,590 Airport255,89863,732 TotalBusinesstypeActivities:11,262,77710,835,992125,590 TotalPrimaryGovernment$71,290,016$19,919,064$553,841$133,290 Generalrevenues: Taxes: Propertytaxes Salesandusetaxes Industrialpayments Franchisetaxes UnrestrictedInvestmentearnings Miscellaneous Transfers TotalGeneralRevenuesandTransfers ChangeinNetPosition NetPosition,beginning NetPosition,Ending SeeNotestoFinancialStatements18CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA2 STATEMENTOFACTIVITIESPage2of2 FortheYearEndedSeptember30,2021 Net(Expense)Revenuesand ChangesinNetPosition PrimaryGovernment GovernmentalBusinesstype ActivitiesActivitiesTotal Functions/Programs Governmentalactivities: Generalgovernment(14,167,496)$$$(14,167,496) Publicsafety(21,099,885)(21,099,885) Publicworks(8,445,844)(8,445,844) Cultureandrecreation(3,760,215)(3,760,215) Health,welfareandsanitation(2,065,267)(2,065,267) Interestonlongtermdebt(843,919)(843,919) TotalGovernmentalActivities(50,382,626)(50,382,626) BusinesstypeActivities: Utility(353,841)(353,841) LPAWA244,812244,812 Airport(192,166)(192,166) TotalBusinesstypeActivities:(301,195)(301,195) TotalPrimaryGovernment(50,382,626)(301,195)(50,683,821) Generalrevenues: Taxes: Propertytaxes32,844,48432,844,484 Salesandusetaxes14,281,69514,281,695 Industrialpayments18,188,12118,188,121 Franchisetaxes2,996,7742,996,774 UnrestrictedInvestmentearnings89,2919,71399,004 Miscellaneous649,354649,354 Transfers(772,939)772,939 TotalGeneralRevenuesandTransfers 68,276,780782,65269,059,432 ChangeinNetPosition 17,894,154481,45718,375,611 NetPosition,beginning108,112,90839,292,116147,405,024 NetPosition,Ending$126,007,062$39,773,573$165,780,635 SeeNotestoFinancialStatements19CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA3 BALANCESHEETPage1of2 September30,2021 LaPorte RestrictedFundsRedevelopment GeneralDebtService(Grants)Authority Assets CurrentAssets: Cashandcashequivalents$60,488,564$4,218,305$6,708,431$9,519,171 Investments4,599,471103,183602,924 Receivables,netofallowancefor uncollectible 5,274,041178,31557,259 Inventories166,001 TotalAssets$70,528,077$4,499,803$7,368,614$9,519,171 Liabilities: Accountspayable$2,261,116$$189,089$726,070 Accruedsalaries1,023,200 Unearnedrevenues4,333,281 Otherpayables80,949 TotalLiabilities 3,365,2654,522,370726,070 DeferredInflowsofResources Unavailablerevenuepropertytaxes105,33915,878 Unavailablerevenuefinesandfees580,577 UnavailablerevenueEMS797,320 Unavailablerevenuegrants Unavailablerevenueother866,974 TotalDeferredInflowsofResources 2,350,21015,878 FundBalances: Nonspendable: Inventory166,001 Restrictedfor: Debtservice4,483,925 Economicdevelopment8,793,101 Seniorcitizenprograms10,543 Replacementoftrees511,258 Municipalcourtbuildingandtechnology 541,235 Parkimprovements763,906 Publicsafety535,898 Capitalprojects Publicworks Other483,404 Assigned:240,255 Unassigned:64,406,346 TotalFundBalances 64,812,6024,483,9252,846,2448,793,101 TotalLiabilities,DeferredInflowof ResourcesandFundBalances $70,528,077$4,499,803$7,368,614$9,519,171 SeeNotestoFinancialStatements20CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA3 BALANCESHEETPage2of2 September30,2021 Nonmajor CapitalGovernmentalTotalGovernmental ImprovementsFundsFunds Assets CurrentAssets: Cashandcashequivalents13,667,023$$48,689,721$143,291,215 Investments1,047,0641,606,8767,959,518 Receivables,netofallowancefor uncollectible 6871,349,3226,859,624 Inventories166,001 TotalAssets$14,714,774$51,645,919$158,276,358 Liabilities: Accountspayable1,004,465$$1,418,674$5,599,414 Accruedsalaries5,0221,028,222 Unearnedrevenues1004,333,381 Otherpayables80,949 TotalLiabilities 1,004,4651,423,79611,041,966 DeferredInflowsofResources Unavailablerevenuepropertytaxes121,217 Unavailablerevenuefinesandfees580,577 UnavailablerevenueEMS797,320 Unavailablerevenuegrants Unavailablerevenueother866,974 TotalDeferredInflowsofResources 2,366,088 FundBalances: Nonspendable: Inventory166,001 Restrictedfor: Debtservice1,089,0175,572,942 Economicdevelopment9,531,51718,324,618 Seniorcitizenprograms10,543 Replacementoftrees511,258 Municipalcourtbuildingandtechnology 541,235 Parkimprovements763,906 Publicsafety2,347,0412,882,939 Capitalprojects13,710,30931,791,42445,501,733 Publicworks5,463,1245,463,124 Other483,404 Assigned:240,255 Unassigned:64,406,346 TotalFundBalances 13,710,30950,222,123144,868,304 TotalLiabilities,DeferredInflowof ResourcesandFundBalances $14,714,774$51,645,919$158,276,358 SeeNotestoFinancialStatements21CityofLaPorte2021ACFR DRAFT 03.04.2022 22CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA4 RECONCILIATIONOFTHEGOVERNMENTALFUNDSBALANCESHEET TOTHESTATEMENTOFNETPOSITION September30,2021 Totalfundbalance,governmentalfunds$144,868,304 Amountsreportedforgovernmentalactivitiesinthestatementofnetpositionaredifferentbecause: Capitalassetsusedingovernmentalactivitiesarenotfinancialresourcesand,therefore,arenotreportedin thefunds.67,922,582 Certainotherlongtermassets(propertytaxes,courtfines,EMSandotherreceivables)arenotavailableto paycurrentperiodexpendituresandthereforearenotreportedinthisfundfinancialstatement,butare reportedinthegovernmentalactivitiesofthestatementofnetposition.2,366,088 Someliabilitiesanddeferredoutflowsandinflowsarenotdueandpayableinthecurrentperiodandare notincludedinthefundfinancialstatement,butareincludedinthegovernmentalactivitiesofthe statementofnetposition. Bondspayable(13,975,000) Certificatesofobligation(25,845,000) Premiumonbonds(3,069,538) Deferredchargeonrefunding412,216 Duetodeveloper(4,596,044) Compensatedabsences(3,457,239) Deferredinflows/outflowsrelatedtopensions(361,277) Deferredinflows/outflowsrelatedtoOPEB5,956,570 Netpensionliability(10,743,564) TotalOPEBliability(55,711,199) Theassetsandliabilitiesofcertaininternalservicefundsarenotincludedinthefundfinancialstatements butareincludedinthegovernmentalactivitiesoftheStatementofNetPosition.22,240,163 NetPositionofGovernmentalActivities$126,007,062 SeeNotestoFinancialStatements23CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA5 STATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCEPage1of2 GOVERNMENTALFUNDS FortheYearEndedSeptember30,2021 LaPorte RestrictedFunds Redevelopment GeneralDebtService(Grants)Authority Revenues Taxes: Propertytaxesandpenalties$23,370,584$3,830,236$$5,822,439 Othertaxes98,137 Licensesandpermits650,402 Finesandforfeitures1,550,115187,483 Salesandusetaxes6,702,765 Industrialpayments18,188,121 Franchisetaxes2,996,774 Intergovernmentalrevenues77,868465,327 InvestmentEarnings49,6051,4461,637483 Chargesforservices6,078,174 Miscellaneous576,366303,000 TotalRevenues 60,338,9113,831,682957,4475,822,922 Expenditures Current: Generalgovernment12,588,03451,554907,926 Publicsafety21,002,317385,417 Publicworks4,690,723147,491 Facilitiesmaintenance Healthandsanitation3,247,03317,000 Cultureandrecreation5,860,18428,000 Capitaloutlay 142,345 Debtservice: Principal3,560,000387,636 Interestandfiscalcharges801,27410,977 Otherdebtserviceexpenditures TotalExpenditures 47,388,2914,361,274771,8071,306,539 Excess(Deficiency)ofRevenues Over(Under)Expenditures 12,950,620(529,592)185,6404,516,383 OtherFinancingSources(Uses) Transfersin57,500 Transfersout(12,719,445) Saleofcapitalassets Certificatesofobligationissued Premiumoncertificatesofobligation Paymenttobondescrowagent Proceedsfromsalesofassets TotalOtherFinancingSources(Uses)(12,661,945) NetChangeinFundBalance 288,675(529,592)185,6404,516,383 FundBalances,Beginning 64,523,9275,013,5172,660,6044,276,718 FundBalances,Ending$64,812,602$4,483,925$2,846,244$8,793,101 SeeNotestoFinancialStatements24CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA5 STATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCEPage2of2 GOVERNMENTALFUNDS FortheYearEndedSeptember30,2021 Nonmajor CapitalGovernmentalTotalGovernmental ImprovementsFundsFunds Revenues Taxes: Propertytaxesandpenalties$$$33,023,259 Othertaxes98,137 Licensesandpermits650,402 Finesandforfeitures1,737,598 Salesandusetaxes7,480,79314,183,558 Industrialpayments18,188,121 Franchisetaxes2,996,774 Intergovernmentalrevenues543,195 InvestmentEarnings9,56618,02680,763 Chargesforservices286,5126,364,686 Miscellaneous1,274880,640 TotalRevenues 9,5667,786,60578,747,133 Expenditures Current: Generalgovernment5,312596,68214,149,508 Publicsafety1,239,90422,627,638 Publicworks55,5214,893,735 Facilitiesmaintenance Healthandsanitation3,264,033 Cultureandrecreation12,7965,900,980 Capitaloutlay 2,764,1761,989,2194,895,740 Debtservice: Principal3,947,636 Interestandfiscalcharges812,251 Otherdebtserviceexpenditures164,693164,693 TotalExpenditures 2,782,2844,046,01960,656,214 Excess(Deficiency)ofRevenues Over(Under)Expenditures(2,772,718)3,740,58618,090,919 OtherFinancingSources(Uses) Transfersin2,967,0005,900,0008,924,500 Transfersout(1,024,500)(13,743,945) Saleofcapitalassets Certificatesofobligationissued11,545,00011,545,000 Pre miumoncertificatesofobligation2,119,6932,119,693 Paymenttobondescrowagent Proceedsfromsalesofassets TotalOtherFinancingSources(Uses)2,967,00018,540,1938,845,248 NetChangeinFundBalance 194,28222,280,77926,936,167 FundBalances,Beginning 13,516,02727,941,344117,932,137 FundBalances,Ending$13,710,309$50,222,123$144,868,304 SeeNotestoFinancialStatements25CityofLaPorte2021ACFR DRAFT 03.04.2022 26CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA6 RECONCILIATIONOFTHESTATEMENTOFREVENUES,EXPENDITURES,AND CHANGESINFUNDBALANCEOFGOVERNMENTALFUNDSTOTHESTATEMENTOFACTIVITIES FortheYearEndedSeptember30,2021 Amountsreportedforgovernmentalactivitiesinthestatementofactivitiesaredifferentbecause: Netchangeinfundbalancetotalgovernmentalfunds.26,936,167$ Governmentalfundsreportcapitaloutlaysasexpenditures.Howeverinthestatementofactivitiesthecostof thoseassetsisallocatedovertheirestimatedusefullivesandreportedasdepreciationexpense.Thisistheamount (345,886) bywhichdepreciation($4,833,885)exceededcapitaloutlay($4,487,999) Governmentalfundsonlyreporttheproceedsfromthedisposalofcapitalassetsandnotthedifferencebetween thecarryingvalueandtheaccumulateddepreciationoftheasset.Thisistheamountbywhichthecarryingvalue exceededtheaccumulateddepreciation (131,394) Governmentalfundsdonotpresentrevenuesthatarenotavailabletopaycurrentobligations.Incontrast,such revenuesarereportedintheStatementofActivitieswhenearned. (83,367) Bondsandotherdebtproceedsprovidecurrentfinancialresourcestogovernmentalfunds,butissuingdebt increaseslongtermliabilitiesintheStatementofNetPosition.Repaymentofbondandotherdebtprincipalisan expenditureinthegovernmentalfund,butrepaymentreducesthelongtermliabilitiesintheStatementofNet Position.Also,governmentalfundsreporttheeffectofpremiums,discounts,andothersimilaritemswhendebtis firstissued,whereastheseamountsaredeferredandamortizedinthestatementofactivities Proceedsfromissuanceoflongtermdebt (11,545,000) Premiumfromissuanceoflongtermdebt (2,119,693) Principalpaidonbonds3,560,000 Contributionsaretreatedasexpendituresinthefundbasedfinancialstatements,butaretreatedasreductionsin theCity'snetpension/OPEBliabilityinthestatementofnetposition.Athisamountisthedifferencebetween contributionsandnetpension/OPEBexpense(revenue)forthecurrentfiscalyear Pension 2,165,906 OPEB (4,438,686) Someexpensesreportedinthestatementofactivitiesdonotrequiretheuseofcurrentfinancialresourcesand thesearenotreportedasexpendituresingovernmentalfunds: (Increase)decreaseincompensatedabsences (25,461) (Increase)decreaseinduetodeveloper 398,363 Amortizationofdeferredamountonrefunding(118,329) Amortizationofbondpremiums240,627 Thenetincome(loss)ofcertainactivitiesofinternalservicefundsisreportedwithgovernmentalactivities. 3,400,907 ChangeinNetPositionofGovernmentalActivities$17,894,154 SeeNotestoFinancialStatements27CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA7 STATEMENTOFNETPOSITIONPage1of2 PROPRIETARYFUNDS September30,2021 BusinessTypeActivitiesEnterpriseFunds Governmental Activities TotalEnterpriseInternalService UtilityLPAWAAirportFundsFunds Assets CurrentAssets: Cashandcashequivalents12,043,822$$2,030,733$70,187$14,144,742$13,672,717 Investments882,805155,5795,3771,043,7611,080,757 Otherreceivables,netofallowance4,469 Duefromothergovernments119,927 Inventories36,00036,00054,458 Accountsreceivable,netofallowance fordoubtfulaccounts 1,086,887201,79315,7941,304,474 Accruedinterestreceivable5741014679 TotalCurrentAssets 14,050,0882,388,20691,36216,529,65614,932,328 NoncurrentAssets: Capitalassets: LandandImprovements224,308379,632603,940 Constructioninprogress5,490,8985,490,898 Buildingsandimprovements156,649156,649 Improvementsotherthanbuildings72,243,34315,592,1806,147,72693,983,249 Vehiclesandequipment4,163,73047,3714,211,10122,298,519 Lessaccumulateddepreciation(55,529,333)(12,232,002)(4,605,445)(72,366,780)(14,156,830) TotalNoncurrentAssets 26,749,5953,407,5491,921,91332,079,0578,141,689 TotalAssets 40,799,6835,795,7552,013,27548,608,71323,074,017 DeferredOutflows Deferredoutflowsrelatedtopensions455,200455,200 DeferredoutflowsrelatedtoOPEB1,329,9001,329,900 TotalDeferredOutflows 1,785,1001,785,100 SeeNotestoFinancialStatements28CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA7 STATEMENTOFNETPOSITIONPage2of2 PROPRIETARYFUNDS September30,2021 BusinessTypeActivitiesEnterpriseFunds Governmental Activities TotalEnterpriseInternalService UtilityLPAWAAirportFundsFunds Liabilities Currentliabilities: Accountspayable245,527114,780360,30772,505 Accruedwagespayable 110,206862111,068 Accruedliabilities109,840109,84026,322 Unearnedrevenue256256 Customerdeposits653,4981,500654,998 Claimsandjudgments685,283 LongTermDebt,CurrentPortion Compensatedabsences 8,1588,158 TotalCurrentLiabilities 1,127,229114,7802,6181,244,627784,110 NoncurrentLiabilities: Compensatedabsences156,013156,01349,744 Netpensionliability1,107,8001,107,800 NetOPEBliability7,035,8007,035,800 TotalNoncurrentLiabilities 8,299,6138,299,61349,744 TotalLiabilities 9,426,842114,7802,6189,544,240833,854 DeferredInflowsofResources Deferredinflowsrelatedtopensions495,800495,800 DeferredinflowsrelatedtoOPEB580,200580,200 TotalDeferredInflowsofResources 1,076,0001,076,000 NetPosition Investmentincapitalassets26,749,5953,407,5491,921,91332,079,0578,141,689 Unrestricted5,332,3462,273,42688,7447,694,51614,098,474 TotalNetPosition$32,081,941$5,680,975$2,010,657$39,773,573$22,240,163 SeeNotestoFinancialStatements29CityofLaPorte2021ACFR DRAFT 03.04.2022 30CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA8 STATEMENTOFREVENUES,EXPENSES,ANDCHANGESINFUNDNETPOSITION PROPRIETARYFUNDS FortheYearEndedSeptember30,2021 BusinessTypeActivitiesEnterpriseFunds Governmental Activities TotalEnterpriseInternalService Funds UtilityLPAWAAirportFunds OperatingRevenues Chargesforservices8,700,852$$2,071,408$63,732$10,835,992$10,544,612 Miscellaneous73,503 TotalOperatingRevenues 8,700,8522,071,40863,73210,835,99210,618,115 OperatingExpenses Personnel3,604,67433,5043,638,1781,091,355 Suppliesandmaterials258,8206,4801,578266,8788,564,947 Purchasedwater1,142,6101,142,610 Otherservices3,477,214440,33054,4023,971,946 Depreciation1,713,985362,766166,4142,243,1651,777,311 TotalOperatingExpenses 9,054,6931,952,186255,89811,262,77711,433,613 OperatingIncome(Loss)(353,841)119,222(192,166)(426,785)(815,498) NonOperatingRevenues(Expenses) Investmentearnings(loss)8,3421,312599,7138,528 Gain/lossondisposalof capitalassets 161,371 TotalNonOperatingRevenues 8,3421,312599,713169,899 Income(Loss)BeforeContributions andTransfers (345,499)120,534(192,107)(417,072)(645,599) ContributionsandTransfers Capitalcontributions125,590125,590 Transfersfromotherfunds850,000850,0004,067,091 Transfertootherfunds(74,201)(2,030)(830)(77,061)(20,585) TotalContributionsandTransfers 775,799123,560(830)898,5294,046,506 ChangeinNetPosition 430,300244,094(192,937)481,4573,400,907 NetPosition,Beginning 31,651,6415,436,8812,203,59439,292,11618,839,256 NetPosition,Ending$32,081,941$5,680,975$2,010,657$39,773,573$22,240,163 SeeNotestoFinancialStatements31CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA9 STATEMENTOFCASHFLOWSPage1of2 PROPRIETARYFUNDS FortheYearEndedSeptember30,2021 BusinesstypeActivitiesEnterpriseFunds Governmental TotalEnterpriseActivitiesInternal UtilityLPAWAAirportFundsServiceFunds CashFlowsfromOperatingActivities Receiptsfromcustomersandusers$8,639,388$1,989,585$63,174$10,692,147$10,617,298 Disbursedforpersonnelservices(3,707,559)(33,504)(3,741,063)(1,082,990) Disbursedforgoodandservicestosuppliers(4,393,929)(2,449,163)(55,980)(6,899,072)(8,530,260) NetCashProvided(Used)byOperatingActivities 537,900(459,578)(26,310)52,0121,004,048 CashFlowsFromNoncapitalFinancingActivities Transfersfromotherfunds850,000850,0004,067,091 Capitalcontributions125,590125,590 Transfertootherfunds(74,201)(2,030)(830)(77,061)(20,585) NetCashProvided(Used)byNoncapitalFinancialActivities 775,799123,560(830)898,5294,046,506 CashFlowsfromCapital&RelatedFinancingActivities Proceedsfromthesaleofequipment161,371 Acquisitionandconstructionofcapitalassets(1,739,886)(1,739,886)(2,299,719) NetCashProvided(Used)byCapital&Related FinancingActivities (1,739,886)(1,739,886)(2,138,348) CashFlowsfromInvestingActivities Purchaseofinvestments(1,059,887)(186,787)(6,456)(1,253,130)8,528 InterestReceived8,9101,4126310,385(1,297,550) Salesofinvestments419,23473,0032,865495,102471,712 NetCashProvided(Used)byInvestingActivities(631,743)(112,372)(3,528)(747,643)(817,310) NetIncrease(Decrease)inCashandCashEquivalents (1,057,930)(448,390)(30,668)(1,536,988)2,094,896 Cashandcashequivalents,beginning13,101,7522,479,123100,85515,681,73011,577,821 CashandCashEquivalents,Ending$12,043,822$2,030,733$70,187$14,144,742$13,672,717 SeeNotestoFinancialStatements32CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA9 STATEMENTOFCASHFLOWSPage2of2 PROPRIETARYFUNDS FortheYearEndedSeptember30,2021 BusinesstypeActivitiesEnterpriseFunds Governmental TotalEnterpriseActivitiesInternal UtilityLPAWAAirportFundsServiceFunds ReconciliationofOperatingIncome(Loss)to NetCashProvided(Used)byOperatingActivities Operatingincome(loss)$(353,841)$119,222$(192,166)$(426,785)$(815,498) Adjustmentstoreconcileoperatingincome(loss)tonetcash provided(used)byoperatingactivities: Depreciation1,713,985362,766166,4142,243,1651,777,311 (Increase)decreaseinaccountsreceivable(70,565)(81,823)(814)(153,202)(817) (Increase)ininventories(3,000)(3,000)(971) Increase(decrease)inaccountspayable(654,895)(859,743)(1,514,638)(9,287) Increase(decrease)indeferredoutflowpensions(82,500)(82,500) Increase(decrease)indeferredoutflowOPEB(213,100)(213,100) Increase(decreaseinaccruedliabilities47,69547,6954,233 Increase(decrease)inunearnedrevenue256256 Increase(decrease)incustomerdeposits9,1019,101 Increase(decrease)inclaims44,945 Increase(decrease)incompensatedabsences1,0191,0194,132 Increase(decrease)innetpensionliability(100,699)(100,699) Increase(decrease)innetOPEBliability(156,000)(156,000) (Increase)decreaseindeferredinflowpensions(90,000)(90,000) (Increase)decreaseindeferredinflowOPEB490,700490,700 NetCashProvided(Used)byOperatingActivities$537,900$(459,578)$(26,310)$52,012$1,004,048 SeeNotestoFinancialStatements33CityofLaPorte2021ACFR DRAFT 03.04.2022 34CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS Note1SummaryofSignificantAccountingPolicies TheCityofLaPorte,Texas(theͻ/źƷǤͼΜwasincorporatedunderthelawsoftheStateofTexasonAugust10,1892.TheCity operatesunderaͻ/ƚǒƓĭźƌağƓğŭĻƩͼformofgovernmentandprovidesthefollowingservicesasauthorizedbyitscharter: publicsafety,developmentservices,publichealthandwelfare,cultureandrecreationandwaterworks. TheaccountingandreportingpoliciesoftheCityrelatingtothefundsincludedintheaccompanyingbasicfinancialstatements conformtoU.S.generallyacceptedaccountingpolicies(GAAP)applicabletostateandlocalgovernmentswhichincludethe principlesprescribedbytheGovernmentalAccountingStandardsBoard(GASB),theAmericanInstituteofCertifiedPublic AccountantsandtheFinancialAccountingStandardsBoard.ThemoresignificantaccountingpoliciesoftheCityareprescribed below. A.ReportingEntity The/źƷǤ͸ƭbasicfinancialstatementsincludetheaccountsofallCityoperations.TheCity,withitselectedgoverningbodyof mayorandeightcouncilmembers,isconsideredaprimarygovernment.AsrequiredbyGAAP,thebasicfinancialstatements includetheCityanditscomponentunits,entitiesforwhichthegovernmentisconsideredtobefinanciallyaccountable. Blendedcomponentunits,althoughlegallyseparateentities,areinsubstance,partoftheŭƚǝĻƩƓƒĻƓƷ͸ƭoperations.All componentunitshavebeenincludedasblendedcomponentunitsbecauseofthesignificanceoftheiroperationsandfinancial relationshipswiththeCity. TheLaPorteAreaWaterAuthority(theͻ!ǒƷŷƚƩźƷǤͼΜisgovernedbyafivememberboardappointedbytheCityCouncil. Althoughitisalegallyseparateentity,theAuthorityprovidesservicesalmostexclusivelyforthe/źƷǤ͸ƭwateroperationsand isinsubstanceapartofthe/źƷǤ͸ƭprimaryoperations.TheAuthoritywascreatedbytheCitytofinancestheoperations involvedinobtainingsurfacewatersuppliesandconvertingthesesuppliestopotablewater.Thiswaterissoldprimarilyto theCity(86%)withtheremainderbeingsoldtootherneighboringpoliticalsubdivisions.TheoperationsoftheAuthorityare reportedasaproprietaryfundtype. TheLaPorteRedevelopmentAuthorityisgovernedbyaninememberboardappointedbytheMayorwiththeapprovalof CityCouncil.TheLaPorteRedevelopmentAuthorityprovidesbenefitsexclusivelyfortheCitythroughreinvestmentfinancing ofadvaloremtaxes,whichareutilizedforcapitalimprovementsfortheCity.TheLaPorteRedevelopmentAuthorityis presentedasagovernmentalfundtype. tion4BSalesTaxCorporationprovidesservicesthatexclusivelybenefitstheCityandisgovernedbyasevenmember TheSec boardappointedbyCityCouncil.TheSection4BSalesTaxCorporationispresentedasagovernmentalfundtype. TheEmergencyServiceDistrict(theͻ5źƭƷƩźĭƷͼΜprovidespublicsafetyservicesexclusivelytotheCity.TheDistrictisgoverned byasevenmemberboardappointedbyCityCouncil.TheDistrictisagovernmentalfundtype. TheStreetMaintenanceComponentUnitprovidesinfrastructureimprovementsexclusivelytotheCity.CityCouncildirects staffoperationsthroughtheannualbudgetprocess. CompletefinancialstatementsforeachoftheindividualcomponentunitsmaybeobtainedthroughtheCity. 35CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note1SummaryofSignificantAccountingPolicies(continued) B.GovernmentwideFinancialStatements Thegovernmentwidefinancialstatements(i.e.,theStatementofNetPositionandtheStatementofActivities)report eCityasawhole.Thegovernmentalactivitiescolumnincorporatesdatafromgovernmentalfundsand informationaboutth internalservicefunds,whilebusinesstypeactivitiesincorporatedatafromthe/źƷǤ͸ƭenterprisefunds.Separatefinancial statementsareprovidedforgovernmentalfundsandproprietaryfunds. Asageneralrule,theeffectofinterfundactivityhasbeeneliminatedfromthegovernmentwidefinancialstatements. Exceptionstothisgeneralrulearepaymentsforinterfundservicesprovidedandotherchargesbetweenthe/źƷǤ͸ƭvarious otherfunctions.Eliminationofthesechargeswoulddistortthedirectcostsandprogramrevenuesreportedforthevarious functionsconcerned C.FundFinancialStatements Thefundfinancialstatementsprovideinformationaboutthe/źƷǤ͸ƭfundsandblendedcomponentunits.Separatestatements foreachfundcategoryΑgovernmentalandproprietaryΑarepresented.Theemphasisoffundfinancialstatementsison majorgovernmentalandenterprisefunds,eachdisplayedinaseparatecolumn.Allremaininggovernmentalfundsare aggregatedandreportedasnonmajorfunds.Majorindividualgovernmentalandenterprisefundsarereportedasseparate fundsinthefundfinancialstatements. TheCityreportsthefollowingmajor GovernmentalFunds: GeneralFund otherfund.Theprincipal TheGeneralFundisusedtoaccountforallfinancialtransactionsthatarenotaccountedforinan sourcesofrevenuesoftheGeneralFundarepropertytaxes,salesandusetaxes,franchisetaxes,licensesandpermits,and finesandforfeitures.Expendituresareforgeneralgovernment,publicsafety,publicworksandothercommunityservices. DebtServiceFund TheDebtServiceFundisusedtoaccountforthepaymentofinterestandprincipalonallgenerallongtermdebtoftheCity exceptforcapitalleasesforwhichareaccountedforintheGeneralFund.TheprimarysourceofrevenuefortheDebtService Fundisgeneralpropertytaxes. CapitalImprovementsFund ThisfundisusedtoaccountforprojectsthataregenerallysmallinnatureandaffectthegeneraloperationoftheCity. RestrictedFund Thisfundisusedtoaccountforfundsreceivedfromanothergovernmentororganizationtobeusedforthespecificpurpose activityorfacility. LaPorteRedevelopmentAuthorityFund TheLaPorteRedevelopmentAuthorityisusedtoaccountforthedispositionofpropertytaxescollectedonspecificparcels withintheboundariesofLaPorteTaxIncrementReinvestmentZoneNo.1fortheexclusivebenefittopaydevelopersfor capitalimprovements. 36CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note1SummaryofSignificantAccountingPolicies(continued) C.FundFinancialStatements(continued) TheCityreportsthefollowingmajor EnterpriseFunds: The UtilityFund isusedtoaccountforoperationsofthewaterandsewerservicestotheresidentsoftheCity.All activitiesnecessarytoprovidesuchservicesareaccountedforinthisfund,butnotlimitedtoadministration, operationsandmaintenanceofthewaterandsewersystemandbillingandcollectionactivities.Thefundalso accountsfortheaccumulationofresourcesfor,andthepaymentof,longtermdebtprincipalandinterestforwater andsewerdebt.Allcostsarefinancedthroughchargestoutilitycustomerswithratesreceivedregularlyandadjusted ifnecessarytoensureintegrityofthefund. LaPorteAreaWaterAuthorityFund isusedtoaccountforrevenuesandexpensesrelatedtoobtainingrawsurface waterandconvertingittopotablewater. AirportFund isusedtoaccountforfinancialactivitiesoftheairportwhichincludesrentals,grantsandother revenues. Additionally,theCityreportstheInternalServiceFundswhichareusedtoaccountfortheMotorPool,Technologyand InsuranceserviceprovidetootherdepartmentsoftheCityonacostreimbursementbasis. DuringthecourseofoperationstheCityhasactivitybetweenfundsforvariouspurposes.Anyresidualbalancesoutstanding cesarereportedinfundfinancialstatements,certain atyearendarereportedasduefrom/tootherfunds.Whilethesebalan eliminationsaremadeinthepreparationofthegovernmentwidefinancialstatements.Balancesbetweenthefundsincluded inthegovernmentalactivities(i.e.,thegovernmentalandinternalservicefunds)areeliminatedsothatonlythenetamount isincludedasinternalbalancesinthegovernmentalactivitiescolumn.Similarly,balancesbetweenthefundsincludedin businesstypeactivities(i.e.,theenterprisefunds)areeliminatedsothatonlythenetamountisincludedasinternalbalances inthebusinesstypeactivitiescolumn. Further,certainactivityoccursduringtheyearinvolvingtransfersofresourcesbetweenfunds.Infundfinancialstatements theseamountsarereportedatgrossamountsastransferin/out.Whilereportedinfundfinancialstatements,certain eliminationsaremadeinthepreparationofthegovernmentwidefinancialstatements.Transfersbetweenthefundsincluded ingovernmentalactivitiesareeliminatedsothatonlythenetamountisincludedastransfersingovernmentalactivities column.Similarly,balancesbetweenthefundsincludedinbusinesstypeactivitiesareeliminatedsothatonlythenetamount isincludedastransfersinthebusinesstypeactivitiescolumn. D.MeasurementFocusandBasisofAccounting edbytheapplicablemeasurementfocusandbasisof Theaccountingandfinancialreportingtreatmentisdetermin accounting.Measurementfocusindicatesthetypeofresourcesbeingmeasuredsuchascurrentfinancialresourcesor economicresources.Thebasisofaccountingindicatesthetimingoftransactionsoreventsforrecognitioninthefinancial statements. Thegovernmentwidefinancialstatementsarereportedusingtheeconomicresourcesmeasurementfocusandtheaccrual basisofaccounting.Revenuesarerecordedwhenearnedandexpensesarerecordedwhenaliabilityisincurred,regardless ofthetimingofrelatedcashflows.Propertytaxesarerecognizedasrevenuesintheyearforwhichtheyarelevied.Grants andsimilaritemsarerecognizedasrevenuesassoonasalleligibilityrequirementsimposedbytheproviderhavebeenmeet. 37CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note1SummaryofSignificantAccountingPolicies(continued) D.MeasurementFocusandBasisofAccounting(continued) Thegovernmentalfundfinancialstatementsarereportedusingthecurrentfinancialresourcesmeasurementfocusandthe modifiedaccrualbasisofaccounting.Revenuesarerecognizedassoonastheyarebothmeasurableandavailable.Revenues areconsideredtobeavailablewhentheyarecollectiblewithinthecurrentperiodorsoonenoughthereaftertopayliabilities ofthecurrentperiod.ForthispurposetheCityconsidersrevenuestobeavailableiftheyarecollectedwithin60daysofthe endofthecurrentfiscalperiod.Expendituresgenerallyarerecordedwhenaliabilityisincurred,asunderaccrualaccounting. However,debtserviceexpenditures,aswellasexpendituresrelatedtocompensatedabsencesandclaimsandjudgements, arerecordedonlywhenpaymentisdue.Generalcapitalassetacquisitionsarereportedasexpendituresingovernmental funds.Issuanceoflongtermdebtarereportedasotherfinancingsources. Propertytaxes,salestaxes,franchisetaxes,courtfines,andinterestassociatedwiththecurrentperiodareallconsideredto besusceptibletoaccrualandsohavebeenrecognizedasrevenuesofthecurrentfiscalperiod.Entitlementsarerecordedas revenueswhenalleligibilityrequirementsaremet,includinganytimerequirements,andtheamountisreceivedduringthe periodorwithintheavailabilityperiodforthisrevenuesource(within60daysofyearend).Expendituredrivengrantsare recognizedasrevenuewhenthequalifyingexpenditureshavebeenincurredandallothereligibilityrequirementshavebeen met,andtheamountisreceivedduringtheperiodofavailabilityperiodforthisrevenuesource(within60daysofyearend). lywhencashisreceivedbytheCity. Allotherrevenueitemsareconsideredtobemeasurableandavailableon Theproprietaryfundsarereportedusingtheeconomicresourcesmeasurementfocusandtheaccrualbasisofaccounting. E.CashandCashEquivalentsandInvestments Cashisdefinedascurrency,demanddepositswithbanksandotherfinancialinstitutions,andanyotherkindofaccount thathasthegeneralcharacteristicsofdemanddepositswherefundsmaybeaddedorwithdrawnatanytimewithout penaltyorpriornotice.Cashequivalentsaredefinedasliquidinvestmentsthatarebothreadilyconvertibletoknown amountsofcashandsoneartheirmaturitytheypresentinsignificantriskorchangesinvaluebecauseofchangesininterest rates.Onlyinvestmentswithoriginalmaturitiesofthreemonthsorlessqualifyunderthisdefinition. TheCityreportsallinvestmentsatfairvalue,exceptforinvestmentpositionsinexternalinvestmentpools,suchasTexas CLASS,TexPool,TexSTARandLOGIC,whicharereportedatamortizedcost.TheTexasCLASSBoardofTrustees,whichis comprisedofactivemembersofthepoolandelectedbytheparticipantsguidedbytheAdvisoryBoard,overseesthe managementofTexasCLASS.TheStateComptrollerofPublicAccountsoverseesTexPool.LOGICisdirectedbyagoverning boardofexperiencedlocalgovernmentofficials,financedirectorsandtreasurersandismanagedbyateamofindustry leadersthatarefocusedonprovidingprofessionalinvestmentservices.FederatedInvestorsisthefullserviceprovidertothe poolsmanagingtheassetsprovidingparticipantservicesandarrangingforallcustodyandotherfunctionsinsupportofthe Ʀƚƚƌ͸ƭoperationsundercontractwiththeComptroller.TexSTARisalocalgovernmentinvestmentpoolcreatedunderthe TexasInterlocalCooperationAct.TexSTARisoverseenbyaGoverningBoardconsistingofindividualsfromparticipating governmententitiesinthepoolandarepresentativefromeachadministrator.ThebusinessandaffairsofTexSTARare managedbytheBoard.Inaddition,TexSTARhasanadvisoryboardcomposedofparticipantsinTexSTARandotherpersons whodonothaveabusinessrelationshipwithTexSTARthatprovidefeedbacktotheBoard.JPMorganInvestment Management,Inc.providesinvestmentmanagement,fundaccounting,transferagencyandcustodialservicesforthepool andFirstSouthwest,adivisionofHilltopSecuritiesprovidesadministrative,marketingandparticipantservices.Theportfolio isrestrictedtoU.S.governmentsecurities,agenciesandinstrumentalities,andfullycollateralizedrepurchaseagreements havingadefinedterminationdate.UnlikemoneymarketmutualfundswhichareregisteredwiththeSecurityandExchange Commission,TexSTARdoesnotoperateinamannerconsistentwiththeRule2a7oftheInvestmentCompanyActof1940. TexSTARisinfullcompliancewithGASB79andreportsitsinvestmentsusingfairvalue. 38CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note1SummaryofSignificantAccountingPolicies(continued) E.CashandCashEquivalentsandInvestments(continued) The/źƷǤ͸ƭlocalgovernmentinvestmentpoolsarerecordedatamortizedcostsaspermittedbyGASBStatementNo.79, CertainInvestmentPoolsandPoolParticipants. TheCityreportsallinvestments,exceptexternalinvestmentpools,atfairvaluebasedonquotedmarketpricesatyearend date.TheCitycategorizesfairvaluemeasurementsofitsinvestmentsbasedonthehierarchyestablishedbygenerally acceptedaccountingprinciples.Thefairvaluehierarchy,whichhasthreelevels,isbasedonthevaluationinputsusedto measureanğƭƭĻƷ͸ƭfairvalue:Level1inputsarequotedpricesinactivemarketsforidenticalassets;Level2inputsare significantotherobservableinputs;Level3inputsaresignificantunobservableinputs. F.Receivables Allreceivablesarereportedattheirgrossvalueand,whereappropriate,arereducedbytheestimatedportionthatisexpected tobeuncollectible. G.Inventory Inventoriesarevaluedatcostsusingthefirstin/firstout(FIFO)method.Thecostsofgovernmentalfundtypeinventoriesare recordedasexpenditureswhenconsumedratherthanwhenpurchased.Aportionofthefundbalanceisclassifiedasnon spendabletoreflectminimuminventoryquantitiesconsiderednecessaryforthe/źƷǤ͸ƭcontinuingoperations. H.CapitalAssets Capitalassetsarereportedintheapplicablegovernmentalorbusinesstypeactivitiescolumninthegovernmentwide escapitalassetswithaninitial,individualcostof$5,000orgreaterandanestimateduseful financialstatements.TheCitydefin lifeinexcessofoneyear. AstheCityconstructsoracquirescapitalassetseachperiod,includinginfrastructureassets,theyarecapitalizedandreported athistoricalcost.Thereportedvalueexcludesnormalmaintenanceandrepairswhichareessentiallyamountsspentin relationtocapitalassetsthatdonotincreasecapacityorefficiencyoftheitemorincreaseitsestimatedusefullife.Donated capitalassetsarerecordedatacquisitioncost,whichisthepricethatwouldbepaidtoacquireanassetwithequivalentservice potentialattheacquisitiondate. Landandconstructioninprogressarenotdepreciated.Theremaindercapitalassetsaredepreciatedusingthestraightline methodoverthefollowingestimatedusefullives. Estimated UsefulLife AssetDescription Buildings20years Buildingimprovements20years Infrastructure2030years Vehicles410years Machineryandequipment410years Waterandsewersystems1020years 39CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note1SummaryofSignificantAccountingPolicies(continued) I.CompensatedAbsences The/źƷǤ͸ƭemployeesearnvacationandsickleave,whichmayeitherbetakenoraccumulated,uptoacertainamount,until paiduponterminationorretirement.Forallfunds,thisliabilityreflectsamountsattributabletocumulativeemployeeservices alreadyrendered,wherethepaymentisprobableandcanbereasonablyestimated.Thecurrentandlongtermportionof thegovernmentalfundtypeliabilitiesarerecordedinthegovernmentwidefinancialstatements.Aliabilityforthoseamounts isrecordedinthegovernmentalfundsonlyiftheliabilityhasmaturedasaresultofemployeeresignationsorretirements. Theproprietaryfundtypeliabilityisrecordedasaliabilityintheindividualproprietaryfundssincepaymentwillbemade fromtheresourcesofthesefunds. lpaymentofthesebenefitsareasfollows: Policiesrelatingtotheaccrua VacationΑEmployeesearnfrom1025daysofvacationperyear.Uponseparation,employeesarepaidforall accumulatedvacationleave(uptooneandonehalftimestheirannualaccrualrate). SickleaveΑFulltime8houremployeesaccrued3.70hoursperpayperiod.Fulltime24houremployeesaccrue5.91 hoursperpayperiodandcivilserviceemployeesaccrued15dayspercalendaryear.Themaximumsickleavetime whichmaybeaccumulatedbyanyemployeeshallbe90daysforregularfulltimeemployees.For24hourshift personnel,themaximumaccrualis1,152hours.Civilserviceemployeesmayaccrueunlimitedsickleave. J.NetPositionFlowAssumption SometimestheCitywillfundoutlaysforaparticularpurposefrombothrestricted(e.g.,restrictedbondorgrantproceeds) andunrestrictedresources.InordertocalculatetheamountstoreportasrestrictedΑnetpositionandunrestrictedΑnet positioninthegovernmentwideandproprietaryfundfinancialstatements,aflowassumptionmustbemadeabouttheorder inwhichtheresourcesareconsideredtobeapplied.Itisthe/źƷǤ͸ƭpolicytoconsiderrestrictedΑnetpositiontohavebeen depletedbeforeunrestrictedΑnetpositionisapplied. K.FundBalanceFlowAssumption SometimestheCitywillfundoutlaysforaparticularpurposefrombothrestrictedandunrestrictedresources(thetotalof committed,assigned,andunassignedfundbalance).Inordertocalculatetheamountstoreportasrestricted,committed, assigned,andunassignedfundbalanceinthegovernmentalfundfinancialstatementsaflowassumptionmustbemadeabout theorderinwhichtheresourcesareconsideredtobeapplied.Itisthe/źƷǤ͸ƭpolicytoconsiderrestrictedfundbalanceto havebeendepletedbeforeusinganyofthecomponentsofunrestrictedfundbalance.Further,whenthecomponentsof unrestrictedfundbalancecanbeusedforthesamepurpose,committedfundbalanceisdepletedfirst,followedbyassigned fundbalance.Unassignedfundbalanceisappliedlast. L.NetPositionClassifications Classificationofnetpositionincludesthreecomponentsasfollows: NetinvestmentincapitalassetsΑThiscomponentofnetpositionconsistsofcapitalassets,includingrestricted capitalassets,netofaccumulateddepreciationandreducedbytheoutstandingbalancesofanybonds,notesor ferredinflowsofresourcesfroma otherborrowings,premiums,discounts,anddeferredoutflowsofresourcesorde refunding. RestrictedΑThiscomponentofthenetpositionconsistsofconstraintsplacedonnetassetusethroughexternal constraintsimposedbycreditors,grantors,contributors,orlawsorregulationsofothergovernmentsorconstraints imposedbylawthroughcontractualprovisionsorenablinglegislation. 40CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note1SummaryofSignificantAccountingPolicies(continued) L.NetPositionClassifications(continued) UnrestrictednetpositionΑThiscomponentofnetpositionconsistsofnetpositionthatdoesnotmeetthedefinition ofͻƩĻƭƷƩźĭƷĻķͼorͻƓĻƷinvestmentincapitalğƭƭĻƷƭ͵ͼ M.FundBalance Fundbalanceofgovernmentalfundsisreportedinvariouscategoriesbasedonthenatureofanylimitationsrequiringthe useofresourcesforspecificpurposes.TheCityitselfcanestablishlimitationsontheuseofresourcesthrougheithercomment (committedfundbalance)oranassignment(assignedfundbalance). Thecommittedfundbalanceclassificationincludesamountsthatcanbeusedonlyforspecificpurposesdeterminedbya formalactionoftheCityCouncil,highestlevelofdecisionmakingauthority.TheCityCouncilisthehighestlevelofdecision makingauthorityfortheCitythatcan,byadoptionofaresolutionpriortotheendofthefiscalyear,commitfundbalance. Once,adopted,thelimitationimposedbytheresolutionremainsinplaceuntilasimilaractionistaken(theadoptionof anotherresolution)toremoveorrevisethelimitation. AmountintheassignedfundbalanceclassificationareintendedtobeusedbytheCityforspecificpurposes,butdonotmeet thecriteriatobeclassifiedascommitted.TheCityCouncilhasbyresolutionauthorizedtheCityManagerunderthe uncilmayalsoassignfundbalanceasitdoes authorizationoftheFiscalAffairsCommitteetoassignfundbalance.TheCityCo whenappropriatingfundbalancetocoveragapbetweenestimatedrevenuesandappropriationsinthesubsequentǤĻğƩ͸ƭ appropriatedbudget.Unlikecommitments,assignmentsgenerallyonlyexisttemporarily.Inotherwords,anadditionalaction doesnotnormallyhavetobetakenfortheremovalofanassignment.Conversely,asdiscussedabove,anadditionalactionis essentialtoeitherremoveorreviseacommitment. TheCitystrivestomaintainaminimumreservebalanceof90to120daysfortheGeneralFundandUtilityFund,and60to90 ndituresinallotherfundsasoutlinedinthe/źƷǤ͸ƭFinancialManagementPoliciesasadoptedbyCity daysofoperatingexpe Councilbyresolution. N.ProgramRevenues Amountsreportedasprogramrevenuesinclude1)chargestocustomersorapplicantswhopurchase,use,ordirectlybenefit fromgoods,services,orprivilegesprovidedbyagivenfunctionorsegmentand2)grantsandcontributionsthatarerestricted tomeetingtheoperationalorcapitalrequirementsofaparticularfunctionorsegment.Alltaxes,includingthosededicated forspecificpurposes,andotherinternallydedicatedresourcesarereportedasgeneralrevenuesratherthanprogram revenues. O.GeneralandDebtServicePropertyTaxes AlltaxesduetotheCityonrealorpersonalpropertyarepayableattheOfficeoftheCityAssessorCollectorandmaybepaid eafteras atanytimeafterthetaxrollsfortheyearhavebeencompletedandapproved,whichisOctober1,orassoonther practicable.TaxesaredueuponreceiptandalltaxesnotpaidpriortoFebruary1aredeemeddelinquentandaresubjectto suchpenaltyandinterestsetforthbythePropertyTaxCode.AllpropertylocatedwithintheCitylimitsonthefirstdayof JanuaryofeachyeararechargedwithaspeciallieninfavoroftheCityfromsuchdatefortaxesduethereon. TheadvaloremtaxrateisallocatedeachyearbetweentheGeneralFundandtheDebtServiceFund.Thefullamount estimatedtoberequiredfordebtserviceonthegeneralobligationdebtisprovidedbythedebtservicetaxtogetherwith interestearnedintheDebtServiceFund. 41CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note1SummaryofSignificantAccountingPolicies(continued) P.IndustrialPayments Asignificantportionofthe/źƷǤ͸ƭrevenueisderivedfromseparatecontractualagreementswitheachindustrialcompanythat itorialjurisdiction(knownastheͻźƓķǒƭƷƩźğƌķźƭƷƩźĭƷͼΜ͵Thesecompanieshaveagreedtopayan lieswithinthe/źƷǤ͸ƭextraterr amountͻźƓlieuofƷğǣĻƭͼintheunannexedareawithinthe/źƷǤ͸ƭextraterritorialjurisdiction.Inthecurrentcontracts,the entitiesagreetopaytheCityapercentageofwhattheadvaloremtaxeswouldhavebeenhadtheentitiesland, improvements,andinventorybeenwithinthecorporatelimitsoftheCity. Q.ProprietaryFundsOperatingandNonoperatingRevenuesandExpenses Proprietaryfundsdistinguishoperatingrevenuesandexpensesfromnonoperatingitems.Operatingrevenuesandexpenses generallyresultfromprovidingservicesandproducinganddeliveringgoodsinconnectionwiththeproprietaryŅǒƓķ͸ƭ principalongoingoperations.Theprincipaloperatingrevenuesoftheenterprisefundsarechargestocustomersforsalesand services.Operatingexpensesfortheenterprisefundsandinternalservicefundincludethecostofsalesandservices, administrativeexpensesanddepreciationoncapitalassets.Allrevenuesnotmeetingthisdefinitionarereportedasnon operatingrevenuesandexpenses. R.BudgetaryInformation AnnualbudgetsareadoptedonabasisconsistentwithGAAP.Annualappropriatedbudgetsareadoptedforthegeneral, specialrevenuefundsanddebtservicefunds.Allannualappropriationslapseatfiscalyearend.Projectlengthfinancialplans areadoptedforallcapitalprojectsfundsandarerevisedannually. S.DeferredOutflows/InflowsofResources Deferredoutflowsandinflowsofresourcesarereportedinthefinancialpositionasdescribedbelow: A deferredoutflowofresources isaconsumptionofagovernment'snetposition(adecreaseinassetsinexcessofany relateddecreaseinliabilitiesoranincreaseinliabilitiesinexcessofanyrelatedincreaseinassets)bythegovernmentthat isapplicabletoafuturereportingperiod.TheCityhasthreeitemsthatqualifyforreportinginthiscategory: DeferredoutflowsorresourcesforrefundingReportedinthegovernmentwidestatementofnetposition,this deferredchargeonrefundingresultsfromthedifferenceinthecarryingvalueofrefundeddebtandits reacquisitionprice.Thisamountisdeferredandamortizedovertheshorterofthelifeoftherefundedorrefunding debt. DeferredoutflowsofresourcesforpensionΑReportedinthegovernmentwidefinancialstatementofnetposition, thisdeferredoutflowresultsfrompensionplancontributionsmadeafterthemeasurementdateofthenet pensionliabilityandtheresults1)differencesbetweenprojectedandactualearningsonpensionplan investments;2)changesinactuarialassumptions;3)differencesbetweenexpectedandactualactuarial experiencesand4)changesinthe/źƷǤ͸ƭproportionalshareofpensionliabilities.Thedeferredoutflowsof resourcesrelatedtopensionsresultingfrom/źƷǤ͸ƭcontributionssubsequenttothemeasurementdatewillbe recognizedasareductionofthenetpensionliabilityinthenextfiscalyear.Thedeferredoutflowsresultingfrom differencesbetweenprojectedandactualearningsonpensionplaninvestmentswillbeamortizedoveraclosed fiveyearperiod.Theremainingpensionrelateddeferredoutflowswillbeamortizedovertheexpectedremaining servicelivesofallemployees(activeandinactiveemployees)thatareprovidedwithpensionsthroughthepension plan. 42CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note1SummaryofSignificantAccountingPolicies(continued) S.DeferredOutflows/InflowsofResources(continued) Deferredoutflowsofresourcesforotherpostemploymentbenefits(OPEB)otherthanpensionΑReportedinthe governmentwidefinancialstatementofnetposition,thisdeferredoutflowresultsfromOPEBplancontributions madeafterthemeasurementdateofthenetOPEBliabilityandtheresultsof1)differencesbetweenprojected ningsonOPEBplaninvestments;2)changesinactuarialassumptions;3)differencesbetween andactualear expectedandactualactuarialexperiencesand4)changesinthe/źƷǤ͸ƭproportionalshareofOPEBliabilities.The deferredoutflowsofresourcesrelatedtoOPEBresultingfromCitycontributionssubsequenttothemeasurement datewillberecognizedasareductionofthenetOPEBliabilityinthenextfiscalyear.Thedeferredoutflowsresulting fromdifferencesbetweenprojectedandactualearningsonOPEBinvestmentswillbeamortizedoveraclosed fiveyearperiod.Theremainingpostemploymentrelateddeferredoutflowswillbeamortizedovertheexpected remainingservicelivesofallemployees(activeandinactiveemployees)thatareprovidedwithOPEBthroughthe OPEBplan. A deferredinflowofresources isanacquisitionofagovernment'snetpositions(anincreaseinassetsinexcessofany ateddecreaseinassets)bythegovernmentthat relatedincreaseinliabilitiesoradecreaseinliabilitiesinexcessofanyrel isapplicabletoafuturereportingperiod.TheCityhasthreeitemsthatqualifyforreportinginthiscategory: DeferredinflowsofresourcesforunavailablerevenuesReportedonlyinthegovernmentalfundsbalancesheet, unavailablerevenuesfrompropertytaxesariseunderthemodifiedaccrualbasesofaccounting.Theseamounts aredeferredandrecognizedasaninflowofresourcesintheperiodthattheamountsbecomeavailable. DeferredinflowsofresourcesforpensionΑreportedinthegovernmentwidefinancialstatementofnetposition, thesedeferredinflowsresultprimarilyfrom1)changesinactuarialassumptions;2)differencesbetweenexpected andactualactuarialexperiencesand3)changesinthe/źƷǤ͸ƭproportionalshareofpensionliabilitiesThese pensionrelateddeferredinflowswillbeamortizedovertheexpectedremainingservicelivesofallemployees (activeandinactiveemployees)thatareprovidedwithpensionsthroughthepensionplan. DeferredinflowsofresourcesforOPEBΑReportedinthegovernmentwidefinancialstatementofnetposition, thisdeferredinflowresultsprimarilyfrom1)changesinactuarialassumptions;and2)differencesbetween expectedandactualactuarialexperiences.TheseOPEBrelateddeferredinflowswillbeamortizedoverthe tiveandinactiveemployees)thatareprovidedwithOPEB expectedremainingservicelivesofallemployees(ac throughtheOPEBplan. T.Pensions ForpurposesofmeasuringthenetpensionliabilityfortheTexasMunicipalRetirementSystem(TMRS),pensionrelated deferredoutflowsandinflowsofresources,andpensionexpense,CityspecificinformationaboutitsFiduciaryNetPositionin theTMRSandadditionsto/deductionsfromthe/źƷǤ͸ƭFiduciaryNetPositionhavebeendeterminedonthesamebasisasthey arereportedbyTMRS.Forthispurpose,plancontributionsarerecognizedintheperiodthatcompensationisreportedfor theemployee,whichiswhencontributionsarelegallydue.Benefitpaymentsandrefundsarerecognizedwhendueand payableinaccordancewiththebenefitterms.Investmentsarereportedatfairvalue. ForpurposesofmeasuringthenetpensionliabilityfortheTexasEmergencyServicesRetirementSystem(TESRS),pension relateddeferredoutflowsandinflowsofresources,andpensionexpense,CityspecificinformationaboutitsFiduciaryNet PositionintheTESRSandadditionsto/deductionsfromthe/źƷǤ͸ƭFiduciaryNetPositionhavebeendeterminedonthesame basisastheyarereportedbyTESRS.Forthispurpose,plancontributionsarerecognizedintheperiodthatcompensationis reportedfortheemployee,whichiswhencontributionsarelegallydue.Benefitpaymentsandrefundsarerecognizedwhen dueandpayableinaccordancewiththebenefitterms.Investmentsarereportedatfairvalue. 43CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note1SummaryofSignificantAccountingPolicies(continued) U.PostemploymentHealthcareBenefits TheCityparticipatesinadefinedbenefitgrouptermlifeinsuranceplan,bothforcurrentandretiredemployees,administered bytheTexasMunicipalRetirementSystem(TMRS).TheCityreportsthetotalliabilityforthisplanonthegovernmentwide andproprietaryfundfinancialstatements.TheCityadministersotherpostemploymentbenefitsΛͻht9.ͼΜthroughadefined benefitmedicalplantoprovidecoverageforeligibleretireesandtheirdependents.InformationregardingtheCitǤ͸ƭtotal OPEBliabilityisobtainedfromTMRSthroughareportpreparedfortheCitybyaw{͸consultingactuary,GabrielRoeder Smith&Company,incompliancewithGASBStatementNo.75. V.UseofEstimates Thepreparationoffinancialstatements,inconformitywithgenerallyacceptedaccountingprinciples,requiresmanagement tomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingent assetsandliabilitiesatthedateofthefinancialstatementsandthereportedamountsofrevenues,expenditures,and expensesduringthereportingperiod.Actualresultscoulddifferfromthoseestimates. W.ImplementationofNewStandards GASBNo.84FiduciaryActivitieswasissuedinJanuary2017andeffectiveforperiodsbeginningDecember15,2019.This standardestablishescriteriaforidentifyingfiduciaryactivitiesofallstateandlocalgovernments.Thefocusofthecriteria generallyison(1)whetheragovernmentiscontrollingtheassetsofthefiduciaryactivityand(2)thebeneficiarieswithwhom afiduciaryrelationshipexists.Separatecriteriaareincludedtoidentifyfiduciarycomponentunitsandpostemployment benefitarrangementsthatarefiduciaryactivities.TherequirementsofthisStatementwillenhanceconsistencyand comparabilityby(1)establishingspecificcriteriaforidentifyingactivitiesthatshouldbereportedasfiduciaryactivitiesand (2)clarifyingwhetherandhowbusinesstypeactivitiesshouldreporttheirfiduciaryactivities.Thisstandardmustbeapplied retroactivelyandassuchbeginningnetpositionand/orfundbalancehavebeenrestated.TheCityhasevaluatedtheeffects ofthisstandardandhasdeterminedthatimplementationisnotrequiredornotmaterial. GASBNo.90MajorityEquityInterests,anamendmentofGASBStatementsNo.14andNo.61wasissuedinAugust2018and effectiveforperiodsbeginningDecember15,2019.TheprimaryobjectivesofthisStatementaretoimproveconsistencyin themeasurementandcomparabilityofthefinancialstatementpresentationofmajorityequityinterestsinlegallyseparate organizationsandtoimprovetherelevanceoffinancialstatementinformationforcertaincomponentunits.Anequityinterest isafinancialinterestinalegallyseparateorganizationevidencedbytheownershipofsharesoftheƚƩŭğƓźǩğƷźƚƓ͸ƭstockorby otherwisehavinganexplicit,measurablerighttothenetresourcesoftheorganizationthatisusuallybasedonaninvestment offinancialorcapitalresourcesbyagovernment.Anequityinterestisexplicitandmeasurableifthegovernmenthasapresent orfutureclaimtothenetresourcesoftheentityandthemethodformeasuringtheŭƚǝĻƩƓƒĻƓƷ͸ƭshareoftheĻƓƷźƷǤ͸ƭnet resourcesisdeterminable.TheCityhasdeterminedthatthisStatementdoesnothaveaneffectonthefinancialstatements asofSeptember30,2021. nual StatementNo.98,ͻŷĻAnnualComprehensiveFinancialwĻƦƚƩƷͼ ΑThisStatementestablishestheterm An ComprehensiveFinancialReport anditsacronym ACFR.Thenewtermandacronymreplaceinstancesof Comprehensive AnnualFinancialReport anditsacronymingenerallyacceptedaccountingprinciplesforstateandlocalgovernments.This statementiseffectiveforfiscalyearsendingafterDecember15,2021butearlierapplicationisencouraged.TheCity implementedthisstatementinfiscalyear2021. 44CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note1SummaryofSignificantAccountingPolicies(continued) W.ImplementationofNewStandards(continued) jectivesof GASBStatementNo.89,ͻ!ĭĭƚǒƓƷźƓŭforInterestCostIncurredBeforetheEndofaConstructiontĻƩźƚķͼ ΑTheob thisStatementare(1)toenhancetherelevanceandcomparabilityofinformationaboutcapitalassetsandthecostof borrowingforareportingperiodand(2)tosimplifyaccountingforinterestcostincurredbeforetheendofaconstruction period.Interestcostincurredbeforetheendofaconstructionperiodwillberecognizedasanexpenseintheperiodinwhich thecostisincurredforfinancialstatementspreparedusingtheeconomicresourcesmeasurementfocus.Asaresult,interest costincurredbeforetheendofaconstructionperiodwillnotbeincludedinthehistoricalcostofacapitalassetreportedin abusinesstypeactivityorenterprisefund.ThisstatementisnotapplicabletotheCityaswedonotcurrentlycapitalize interestcostsincurredbeforetheendofconstruction. Note2DepositsandInvestments TheTexasPublicFundsInvestmentAct(PFIA),asprescribedinChapter2256oftheTexasGovernmentCode,regulates depositsandinvestmenttransactionsoftheCity. Inaccordancewithapplicablestatues,theCityhasadepositorycontractwithanareabank(depository)providingforinterest ymay ratestobeearnedondepositedfundsandforbankingchargestheCityincursforbankingservicesreceived.TheCit placefundswiththedepositoryininterestandnoninterestbearingaccounts.Statelawprovidesthatcollateralpledgedas securityforbankdepositsmusthaveamarketvalueofnotlessthantheamountofthedepositsandmustconsistof: (1)obligationsoftheUnitedStatesoritsagenciesandinstrumentalities;(2)directobligationsoftheStateofTexasorits agencies;(3)otherobligations,theprincipalandinterestonwhichareunconditionallyguaranteedorinsuredbytheStateof Texas;and/or(4)obligationsofstates,agencies,counties,cities,andotherpoliticalsubdivisionsofanystatehavingbeen ratedasinvestmentqualitybyanationallyrecognizedinvestmentratingfirmandhavingreceivedaratingofnotlessthanA oritsequivalent.Citypolicyrequiresthecollateralizationleveltobeatleast102%ofmarketvalueofprincipalandaccrued interest. TheCouncilhasadoptedawritteninvestmentpolicyregardingtheinvestmentofCityfundsasrequiredbythePublicFunds InvestmentAct(Chapter2256,TexasGovernmentCode).TheinvestmentsoftheCityareincompliancewiththe/źƷǤ͸ƭ investmentpolicy.The/źƷǤ͸ƭinvestmentpolicyismorerestrictivethanthePFIArequires.Itisthe/źƷǤ͸ƭpolicytorestrictits directinvestmentstoobligationsoftheU.S.GovernmentorU.S.GovernmentAgencies,fullycollateralizedcertificatesof deposit,ĬğƓƉĻƩƭ͸acceptances,mutualfunds,repurchaseagreementsandlocalgovernmentinvestmentpools.Themaximum maturityallowedisfiveyearsfromdateofpurchase.The/źƷǤ͸ƭinvestmentpolicydoesnotallowinvestmentsincollateralized mortgageobligations,floatingrateinvestmentsorswaps. Cash,CashEquivalentsandInvestments Cashandcashequivalentsareconsideredtobecashonhand,demanddepositswithbanksandotherfinancialinstitutions, andanyotherkindofaccountthathasthegeneralcharacteristicsofdemanddepositswherefundsmaybeaddedor withdrawnatanytimewithoutpenaltyorpriornotice.Cashequivalentsaredefinedasliquidinvestmentsthatareboth readilyconvertibletoknownamountsofcashandsoneartheirmaturity,theypresentinsignificantriskorchangesinvalue becauseofchangesininterestrates.ThisincludesbalancesinprivatelymanagedpublicfundsinvestmentpoolsΛͻĻǣtƚƚƌͼ ͻĻǣğƭ/\[!{{ͼͲͻĻǣ{!wͼandͻ\[hDL/ͼΜ͵Onlyinvestmentswithoriginalmaturitiesofthreemonthsorlessqualifyunder thisdefinition. The/źƷǤ͸ƭlocalgovernmentinvestmentpoolsarerecordedatamortizedcostsaspermittedbyGASBStatementNo.79, CertainInvestmentPoolsandPoolParticipants. 45CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note2DepositsandInvestments(continued) InvestmentsconsistofUnitedStates(U.S.)GovernmentandAgencySecurities.TheCityreportsallinvestmentsatfairvalue basedonquotedmarketpricesatyearenddate. tsallinvestments,exceptexternalinvestmentpools,atfairvalue,alevel2valuation.TheCitycategorizes TheCityrepor fairvaluemeasurementsofitsinvestmentsbasedonthehierarchyestablishedbygenerallyacceptedaccountingprinciples. Thefairvaluehierarchy,whichhasthreelevels,isbasedonthevaluationinputsusedtomeasureanasƭĻƷ͸ƭmarketvalue: Level1inputsarequotedpricesinactivemarketsforidenticalassets;Level2inputsaresignificantotherobservableinputs; Level3inputsaresignificantunobservableinputs. Cash,CashEquivalentsandInvestments(continued) Thefollowingscheduleshowsthe/źƷǤ͸ƭrecordedcashandequivalentsatyearend: InternalService FundGovernmentalFundsFundsEnterpriseFundsTotal Cashdeposits$28,766,541$279,419$1,209,951$30,255,911 Investmentpools114,524,67413,393,29812,934,791140,852,763 Totalcashandequivalents$143,291,215$13,672,717$14,144,742$171,108,674 AtSeptember30,2021,thecarryingamountofdepositswas$6,215,955andtherespectivebankbalanceswere$6,613,488. The/źƷǤ͸ƭbankbalanceswerefullyinsuredorcollateralizedwithsecuritiesheldbythe/źƷǤ͸ƭagentinthe/źƷǤ͸ƭname. Investments TheCityreportedthefollowinginvestmentsatSeptember30,2021: InternalService FundGovernmentalFundsFundsEnterpriseFundsTotal U.S.GovernmentSecurities$7,870,544$1,080,757$1,043,761$9,995,062 U.S.EquityFunds88,97488,974 TotalSecurities$7,959,518$1,080,757$1,043,761$10,084,036 46CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note2DepositsandInvestments(continued) Investments(continued) TheCitycategorizesitsfairvaluemeasurementswithinthefairvaluehierarchyestablishedbygenerallyacceptedaccounting edtomeasurethefairvalueoftheasset.Level1inputsarequoted principles.Thehierarchyisbasedonthevaluationinputsus pricesinactivemarketsforidenticalassets;Level2inputsaresignificantotherobservableinputs;andLevel3inputsare significantunobservableinputs.TheCityhasthefollowingrecurringfairvaluemeasurementsasofSeptember30,2021: FairValueLevel 1 U.S.GovernmentSecurities FederalHomeLoanBankAgencyNotes3,998,743$ FederalHomeLoanMortgageCorporation4,000,402 FederalFarmCreditBanks1,995,917 U.S.EquityFunds89,974 LocalGovernmentInvestmentPools: TexPool40,741,742 TexSTAR17,561,379 TexasCLASS30,007,582 Logic52,542,060 $150,937,799 ConcentrationonCreditRisk Thepolicydoesnotrequireinvestmentstobestaggeredinawaythatprotectsinterestincomefromthevolatilityofinterest rates.Thepolicyhasnotestablishedlimitationsonpercentagesofthetotalportfoliothatmaybeinvestedinsecuritiesother esorinsuredandcollateralizedCertificatesofDeposits. thantherepurchaseagreements,Treasurybillsandnot InvestmentRateRisk Atyearend,theCityhadthefollowinginvestmentssubjecttointerestrateriskdisclosure,underU.S.GAAP,byinvestment type: Weighted AveragePercentageof FairValueMaturity(Days)PortfolioPortfolioWAM U.S.GovernmentSecurities FederalHomeLoanBankAgencyNotes3,998,743$9553%25 FederalHomeLoanMortgageCorporation4,000,4024233%11 FederalFarmCreditBanks1,995,9179491%13 TotalU.S.GovernmentSecurities9,995,062 U.S.EquityFunds89,974N/A0% LocalGovernmentInvestmentPools: TexPool40,741,7425327%14 TexSTAR17,561,3794812%6 TexasCLASS30,007,5823720%7 Logic52,542,0605535%19 TotalLocalGovernmentInvestmentPools140,852,76395 Total$150,937,799 47CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note2DepositsandInvestments(continued) The/źƷǤ͸ƭinvestmentpolicyspecifiesthemaximumstatedmaturityfromthedateofpurchaseforanyindividualinvestments maynotexceed5yearsandthemaximumdollarweightedaveragematurityforthepooledfundgroup(investmentportfolio) maynotexceed2years. CreditRisk Theprimaryobjectiveofthe/źƷǤ͸ƭadoptedInvestmentPolicyisthesafetyofprincipal.Creditriskwithinthe/źƷǤ͸ƭportfolio amongauthorizedinvestmentsapprovedbythe/źƷǤ͸ƭadoptedInvestmentPolicyisrepresentedinU.S.TreasuryBills,Notes orBonds,andothersecuritieswhichareguaranteedastoprincipalandinterestbythefullfaithandcreditoftheUnited StatesofAmerica,collateralizedorfullyinsuredcertificatesofdeposits,FDICinsuredbanksintheStateofTexas,repurchase ondsandPublicFundsInvestmentPools. agreementsifsecuredbyU.S.TreasuryBills,NotesorB Allofthe/źƷǤ͸ƭpurchasedinvestmentsinU.S.GovernmentSecuritieswereratedAA+andAAAmbyStandard&tƚƚƩ͸ƭand aƚƚķǤ͸ƭrespectively. Note3PropertyTaxes yAppraisalDistrict(theͻ!ƦƦƩğźƭğƌ5źƭƷƩźĭƷͼΜ͵ TheappraisalofpropertywithintheCityistheresponsibilityoftheHarrisCount TheAppraisalDistrictisrequiredunderthePropertyTaxCodetoappraiseallpropertywithinthecountyonthebasisof100% ofitsmarketvalue.ThevalueofrealpropertywithintheAppraisalDistrictmustbereviewedeveryfiveyears;however,the Citymay,atitsownexpense,requireannualreviewsofappraisedvalues.TheCitymaychallengeappraisedvaluesestablished bytheAppraisalDistrictthroughvariousappealsand,ifnecessary,takelegalaction.Underthislegislation,theCitycontinues tosettaxratesonCityproperty.TheTexasLegislatureenactednewlegislationforpropertytaxeswhichcalculatestheno newrevenuetaxrate(theratewillraisethesameamountofpropertytaxrevenuefromsamepropertiesasprioryear).The voterapprovedrateisthehighesttaxratetheCitymayadoptwithoutholdinganelection.The/źƷǤ͸ƭpropertytaxesarelevied annuallyinOctoberonthebasisoftheAppraisal5źƭƷƩźĭƷ͸ƭassessedvaluesasofJanuary1ofthatcalendaryear.Appraised valuesareestablishedbytheAppraisalDistrictatmarketvalue,assessedat100%ofappraisedvalueandcertifiedbythe HarrisCountyAppraisalDistrictBoardofReview.TheCitypropertytaxesarebilledandcollectedbythe/źƷǤ͸ƭTax Assessor/Collector.Suchtaxesareapplicabletothefiscalyearinwhichtheyareleviedandbecomedelinquentwithan enforceablelienonpropertyonFebruary1ofthecurrentcalendaryear.TheCityispermitted,byArticleXI,Section5,ofthe StateofTexasConstitutionandtheCityCharter,tolevypropertytaxesupto$2.50per$100ofassessedvaluationforgeneral governmentalservices. Withinthe$2.50maximumlevy,thereisnolegallimitupontheamountofpropertytaxes,whichcanbeleviedfordebt service.Thepropertytaxratestofinancegeneralgovernmentalservicesanddebtserviceforfiscalyear2021were$0.614 and$0.096,respectively,per$100ofassessedvaluation.The2020assessedvalueandtotaltaxlevyasadjustedthrough September30,2021were$4,082,357,968and$28,375,540,respectively.TheCityhasenactedanordinanceprovidingfor exemptionoftwentypercent(20%)oftheassessedvalueofresidentialhomesteadsplusanadditional$60,000forpersons 65yearsofageorolderforpropertytaxes.Anexemptionof$60,000isallowedfordisabledpersonsonhomesteadsandup eofproperty.Additionally,themarketvalueofagriculturallandis to$12,000isallowedfordisableveteransonanyonepiec reducedtoagriculturalvalueforpurposesofthe/źƷǤ͸ƭtaxlevycalculation. 48CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note3PropertyTaxes(continued) PropertytaxesareleviedbyOctober1inconformitywithSubtitleE,TexasPropertyTaxCode.Taxesaredueonreceiptof thetaxbillandaredelinquentifnotpaidbeforeFebruary1oftheyearfollowingtheyearinwhichimposed.OnJanuary1of eachyear,ataxlienattachestopropertytosecurethepaymentofalltaxes,penalties,andinterestultimatelyimposed.The eCityCouncilbased HarrisCountyCentralAppraisalDistrictΛͻI//!5ͼΜestablishesappraisedvalues.Taxesareleviedbyth ontheappraisedvaluesandoperatingneedsoftheCity. TaxIncrementReinvestmentZoneΑPropertyTaxes TheCity,LaPorteIndependentSchoolDistrictandHarrisCountyareparticipatingtaxingentitieswithinthetaxincrement crementforayearistheamountofpropertytaxesleviedandcollected reinvestmentzone.TheamountofaƦğƩƷźĭźƦğƓƷ͸ƭtaxin byaparticipantforthatyearonthecapturedappraisedvalueofrealpropertytaxablebytheparticipantandlocatedinthe zone.Thecapturedappraisedvalueofrealpropertytaxablebytheparticipantandlocatedinthezoneforthatyearlessthe taxincrementbase,whichisthetotalappraisedvalueofallrealpropertytaxablebytheparticipantandlocatedinthezone onJanuary1oftheyearinwhichthezonewasdesignedassuchunderthetaxincrementfinancingact(theͻLCAcƷͼΜ͵9ğĭŷ participantisrequiredtocollecttaxesonpropertylocatedwithinthezoneinthesamemannerasothertaxesarecollected. Theparticipantisrequiredtopayintothetaxincrementfundthecollectedtaxincrementsbythefirstdayofeachcalendar quarterorpursuanttothetermsoftheparticipationsetforthintheirrespectiveinterlocalagreements. Note4Receivables Amountsareaggregatedintoasingleaccountsreceivable(netofallowanceforuncollectible)lineforcertainfundsand aggregatedcolumns.BelowisthedetailofreceivablesfortheGeneralFund,DebtServiceFund,CapitalImprovementsFund, Restrictedfundandnonmajorgovernmentalfundsintheaggregate,includingtheapplicableallowancesforuncollectible accounts. Capital DebtServiceRestrictedImprovementsNonmajor GeneralFundFundFundFundGovernmental Receivables Taxes3,390,254$$250,122$$$1,318,695 Municipalcourt580,577 Other138,55930,606 Mowing&demolition517,171 EMS1,371,694 Interest3,0376868721 Solidwaste273,469 Duefromothergovernments57,259 Grossreceivable6,274,761250,19057,2596871,349,322 (71,875) Less:Allowanceforuncollectible(1,000,720) NetReceivables.$5,274,041$178,315$57,259$687$1,349,322 ReceivablesoftheUtilityFund,anenterprisefund,arereportednetofuncollectibleamounts.Totaluncollectibleamount relatedtoutilitysalesasofyearendwas$150,049 49CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note5CapitalAssets CapitalassetsactivityfortheyearendedSeptember30,2021,wasasfollows: BalanceAdditionsRetirementsBalance September30,2020(Increases)andTransfersSeptember30,2021 Governmentalactivities: Capitalassets,notbeingdepreciated Land10,326,295$$$(103,426)$10,222,869 Constructioninprogress3,934,9893,073,204(705,095)6,303,098 Totalcapitalassets,notbeingdepreciated14,261,2843,073,204(808,521)16,525,967 Capitalassetsbeingdepreciated: BuildingsandImprovements38,370,74164,146(61,060)38,373,827 Improvementsotherthanbuildings36,364,974722,257652,82537,740,056 Infrastructure59,738,638110,00059,848,638 Machineryandequipment25,831,9242,818,111(1,666,500)26,983,535 Totalcapitalassetsbeingdepreciated160,306,2773,714,514(1,074,735)162,946,056 Lessaccumulateddepreciationfor: BuildingsandImprovements(27,485,873)(1,378,097)61,060(28,802,910) Improvementsotherthanbuildings(18,336,762)(1,468,628)50,364(19,755,026) Infrastructure(35,237,465)(1,747,265)(36,984,730) Machineryandequipment(17,421,867)(2,017,206)1,573,987(17,865,086) ,611,196)1,685,411(103,407,752) Totalaccumulateddepreciation(98,481,967)(6 Totalcapitalassetsbeingdepreciated,net61,824,310(2,896,682)610,67659,538,304 Governmentalactivitiescapitalassets,net$76,085,594$176,522$(197,845)$76,064,271 Businesstypeactivities: Capitalassets,notbeingdepreciated Land$447,791$$156,149$603,940 Constructioninprogress4,969,836833,606(312,544)5,490,898 Totalcapitalassets,notbeingdepreciated:5,417,627833,606(156,395)6,094,838 Businesstypeassets,beingdepreciated BuildingsandImprovements156,649156,649 Improvementsotherthanbuildings93,001,454825,400156,39593,983,249 Machineryandequipment4,147,70780,881(17,487)4,211,101 Totalcapitalassetsbeingdepreciated97,305,810906,281138,90898,350,999 Lessaccumulateddepreciationfor: BuildingsandImprovements(68,740)(5,656)(74,396) Improvementsotherthanbuildings(68,155,324)(2,154,505)(70,309,829) Machineryandequipment(1,917,038)(83,004)17,487(1,982,555) Totalaccumulateddepreciation(70,141,102)(2,243,165)17,487(72,366,780) Totalcapitalassetsbeingdepreciated,net27,164,708(1,336,884)156,39525,984,219 BusinessTypeactivitiescapitalassets,net$32,582,335$(503,278)$$32,079,057 50CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note5CapitalAssets(continued) Depreciationwaschargedtofunctions/programsofthegovernmentalactivitiesoftheprimarygovernmentasfollows: GovernmentalActivities: Generalgovernment$983,889 PublicSafety1,151,648 Publicworks1,702,018 Parksandrecreation996,330 CapitalassetsheldbytheCity's internalservicefundsarechargedto variousfunctionsbasedontheir usageoftheassets 1,777,311 TotalGovernmentalActivities$6,611,196 Depreciationexpenseof$2,243,165waschargedtotheEnterprisefunds. ConstructioncontractcommitmentsoutstandingasofSeptember30,2021,areasfollows: Remaining TotalinProgressCommitment FundProjects GeneralCipFundStreetAndDrainage$2,103,241$6,046,381 ParkImprovements2,169,307 BuildingImprovements601,109701,379 LandImprovements486,84552,353 UtilityFundMeterReplacementProgram1,810,513208,978 WaterSystemImprovements4,550,779191,883 AerialCrossings72,2025,375 $11,793,996$7,206,349 51CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note6LongTermDebtandOtherLongTermObligations TheCityissuesavarietyoflongtermdebtinstrumentsinordertoacquireand/orconstructmajorcapitalfacilitiesand equipmentforgovernmentalandbusinesstypeactivities.Theseinstrumentsincludegeneralobligationbonds,certificatesof obligationandrevenuebonds.Futureadvaloremtaxrevenues,waterandsewersystemrevenuesorliensonpropertyand equipmentsecurethesedebtobligations. Theschedulebelowdetailsthetermsofpublicpropertyfinancecontractualobligation,generalobligationbonds,certificates ofobligationsandrevenuebondsoutstandingasofSeptember30,2021: Governmental Activities 2012GeneralObligationRefundingBonds dueinannualpaymentsthroughMarch15,2025;interestat.65%to3.00%$9,435,000issued torefundpreviousdebt. $5,735,000 2014GeneralobligationRefundingBonds dueinannualpaymentsthroughMarch15,2025;interestat2.00%to3.50%$9,300,000 issuedtorefundingpreviousdebt. 3,490,000 2015CertificatesofObligation dueinannualinstallmentsthroughMarch15,2030;interestat2.25%to3.00%$7,770,000 issuedforwaterandsewersystemimprovements,andstreetanddrainageimprovements. 5,585,000 2016GeneralObligationRefundingBonds dueinannualpaymentsthroughMarch15,2029;interestat2.00%to4.00%$3,165,000 issuedtorefundpreviousdebt. 2,465,000 2017CertificatesofObligation dueinannualpaymentsthroughMarch15,2037;interestat0.14%to1.82%$10,635,000 issuedforconstructionofwastewatersystem. 8,715,000 2020GeneralObligationRefundingBonds dueinannualpaymentsthroughMarch15,2026;interestat3.0%to5.0%$2,705,000issued torefundpreviousdebt. 2,285,000 2021CertificatesofObligation dueinannualpaymentsthroughMarch15,2041;interestat3.0%to5.0% 11,545,000 TotalBondsandCertificatesofObligationPayable$39,820,000 52CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note6LongTermDebtandOtherLongTermObligations(continued) Changesinthe/źƷǤ͸ƭlongtermliabilitiesfortheyearendedSeptember30,2021areasfollows: BalanceBalanceAmounts September30September30DueWithin 2020AdditionsReductions2021OneYear GovernmentalActivities: Bondspayable: GeneralObligationBonds$16,650,000$$(2,675,000)$13,975,000$2,755,000 CertificatesofObligation15,185,00011,545,000(885,000)25,845,0001,065,000 Premiumonbondissuance1,190,4722,119,693(240,627)3,069,538 Totalbondspayable33,025,47213,664,693(3,800,627)42,889,5383,820,000 Duetodevelopers4,994,407250(398,613)4,596,044 Compensatedabsences3,489,46140,545(23,023)3,506,983175,349 TotalGovernmentalActivities$41,509,340$13,705,488$(4,222,263)$50,992,565$3,995,349 BusinesstypeActivities: Compensatedabsences$163,152$1,019$$164,171$8,209 TotalBusinesstypeActivities$163,152$1,019$$164,171$8,209 Longtermliabilitiesapplicabletothe/źƷǤ͸ƭgovernmentalactivitiesarenotdueandpayableinthecurrentperiodand, accordingly,arenotreportedasfundliabilitiesinthegovernmentalfunds.Compensatedabsencesgenerallyarepaidbythe GeneralFundforthegovernmentalactivities. GeneralObligationBondsandCertificatesofObligation GeneralObligationBondsaredirectobligationsissuedonapledgeofthegeneraltaxingpowerforthepaymentofthedebt obligationsoftheCity.GeneralObligationsbondsandCertificatesofObligationrequiretheCitytocompute,atthetimeother taxesarelevied,therateoftaxrequiredtoprovide(ineachyearbondsareoutstanding)afundtopayinterestandprincipal maturity.TheCityisincompliancewiththisrequirement. GovernmentalActivities GeneralObligationBondsCertificateofObligation Fiscal YearPrincipalInterestPrincipalInterest 20222,755,000$$440,8751,065,000$$766,320 20232,830,000352,8251,140,000696,662 20242,915,000257,4001,165,000669,002 20252,965,000156,0001,195,000639,587 2026970,00083,5001,430,000604,980 202720311,540,00094,0008,875,0002,231,939 203220366,310,0001,143,612 203720414,665,000316,876 $13,975,000$1,384,600$25,845,000$7,068,978 53CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note6LongTermDebtandOtherLongTermObligations(continued) CurrentYearIssuanceofDebt 00%to OnAugust10,2021,theCityissued$11,545,000inCertificatesofObligation,Series2021.Thebondshavearateof3. 5.00%.Theproceedsweredepositedtocapitalprojectsfundwhichwillbeusedfora)theplanning,acquisition,designand constructionandequipmentofanewCityHall,b)renovationandequipmentofexistingCitybuildings,c)constructionand improvementstoCitystreets,d)drainageimprovements,e)constructionandrenovationtothe/źƷǤ͸ƭwaterandsewer system,f)purchaseoflandforrenovationsandequipmentofthe/źƷǤ͸ƭgolfcourse,g)professionalservicesrelatedtothe projectsandh)costsofissuanceoftheCertificates.ThebondswillbepayableMarch15andSeptember15ofeachyearand matureMarch15,2041. PriorYearRefundingofDebt TheCitydefeasedcertainoutstandingrevenuebondsbyplacingproceedsofnewbondsinirrevocabletrusttoprovideforall futuredebtservicepayments.Accordingly,therespectivetrustaccountsandliabilityforthedefeasedbondarenotincluded inthe/źƷǤ͸ƭfinancialstatements.AsofSeptember30,2021,theCitydoesnothavebondsconsidereddefeasedand outstanding. Note7InterfundReceivables,PayablesandTransfers Thecompositionofinterfundtransfersfortheyearareasfollows: TransfersTo Capital ImprovementOther FundGovernmentalUtilityFundInternalService TransfersFromGeneralTotals GeneralFund$$2,000,000$5,900,000$850,000$3,969,445$12,719,445 OtherGovernmental57,500967,0001,024,500 Utility74,20174,201 LPAWA2,0302,030 Airport830830 InternalService20,58520,585 Totals57,500$$2,967,000$5,900,000$850,000$4,067,091$13,841,591 Thepurposeofinterfundtransfersduringthecurrentyearconsistedofthefollowing: 54CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Purpose TransfersFromTransfersTo LaPorteAreaWaterAuthorityGeneralFundOperator'sAgreement GeneralFundUtilityFundTransfertofundCapitalProjects GeneralFundStreetMaintenanceSalesTaxFundTransferforCapitalProjects(7thStreet,BaysideTerraceandBrookglen) GeneralFundDrainageImprovementsFundTransferforCapitalProjects(7thStreet,BaysideTerraceandBrookglen) GeneralFundGeneralCIPFundTransfertofundCapitalProjects GeneralFundInsuranceFundTransferforLiabilityInsuranceandWorker'sCompensationandHealth Insurance LaPorteDevelopmentCorporation(4B)GeneralCIPFundTransfertofundCapitalProjects(GolfCourseInfrastructure,handicap playground,14thStreetplayground,FairmontParkfitnessequipment andeightbuscovers Hotel/MotelFundGeneralFundTransferforGolfCourseAdvertisingExpendituresandCityBorderingBay forGolfCourseExpenditures UtilityFundInsuranceFundTransferforLiabilityInsuranceandWorker'sCompensation LPAWAInsuranceFundTransferforLiabilityInsuranceandWorker'sCompensation AirportFundInsuranceFundTransferforLiabilityInsuranceandWorker'sCompensation VehicleMaintenanceFundInsuranceFundTransferforLiabilityInsuranceandWorker'sCompensation 55CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note8DefinedBenefitPensionPlans TexasMunicipalRetirementSystem PlanDescriptionandProvisions TheCityparticipatesasoneof895plansinthenontraditional,jointcontributory,hybriddefinedbenefitpensionplan administeredbytheTexasMunicipalRetirementSystem(TMRS).TMRSisanagencycreatedbytheStateofTexasand administeredinaccordancewiththeTMRSAct,SubtitleG,Title8,TexasGovernmentCode(theTMRSAct)asanagent multipleemployerretirementsystemformunicipalemployeesintheStateofTexas.TheTMRSActplacesthegeneral administrationandmanagementoftheSystemwithasixmemberBoardofTrustees.AlthoughtheGovernor,withtheadvice andconsentoftheSenate,appointstheBoard,TMRSisnotfiscallydependentontheStateofTexas.aw{͸ƭdefinedbenefit nunderSection401(a)oftheInternalRevenueCode.TMRSissuesapubliclyavailable pensionplanisataxqualifiedpla annualcomprehensivefinancialreport(annualreport)thatcanbeobtainedatwww.tmrs.com. AlleligibleemployeesoftheCityarerequiredtoparticipateinTMRS. TMRSprovidesretirement,disability,anddeathbenefits.BenefitprovisionsareadoptedbythegoverningbodyoftheCity, withintheoptionsavailableinthestatestatutesgoverningTMRS. eĻƒƦƌƚǤĻĻ͸ƭcontributions,withinterest,andthecityfinanced Atretirement,thebenefitiscalculatedasifthesumofth monetarycreditswithinterestwereusedtopurchaseanannuity.Membersmaychoosetoreceivetheirretirementbenefit inoneofsevenactuariallyequivalentpaymentsoptions.Membersmayalsochoosetoreceiveaportionoftheirbenefitasa PartialLumpSumDistributioninanamountequalto12,24,or36monthlypayments,whichcannotexceed75%ofthe ƒĻƒĬĻƩ͸ƭdepositsandinterest. TheCityhasapprovedanannuallyrepeating(automatic)basisamonetarycreditreferredtoasanupdatedservicecredit kesintoaccountsalaryincreasesorplanimprovements.Ifatanytimeduring (USC)whichisatheoreticalamountwhichta theircareeranemployeeearnsaUSC,thisamountremainsintheiraccountearninginterestat5%untilretirement.At retirement,thebenefitiscalculatedasifthesumoftheemployee'saccumulatedcontributionswithinterestandthe employermatchplusemployerfinancedmonetarycredits,suchasUSC,withinterestwereusedtopurchaseanannuity. Additionally,Cityprovidesonanannuallyrepeating(automatic)basiscostoflivingadjustments(COLA)forretireesequalto apercentageofthechangeintheconsumerpriceindex(CPI). easfollows: AsummaryofplanprovisionsfortheCityar Employeedepositrate:7% Matchingratio(Citytoemployee):2to1 Yearsrequiredforvesting:10 Serviceretirementeligibility:20yearsatanyage,10yearsatage60andabove UpdatedServiceCredit:100%RepeatingTransfers AnnuityIncreasetoretirees:70%ofCPIRepeating SupplementaldeathbenefitΑactive employeesandretireesYes 56CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note8DefinedBenefitPensionPlans(continued) TexasMunicipalRetirementSystem(continued) BenefitsProvided AttheDecember31,2020valuationandmeasurementdate,thefollowingemployeeswerecoveredbythebenefitterms: Inactiveemployeesorbeneficiariescurrentlyreceivingbenefits252 Inactiveemployeesentitledtobutnotyetreceivingbenefits199 Activeemployees378 Total829 Contributions ThecontributionratesforemployeesinTMRSareeither5%,6%,or7%ofemployeegrossearnings,andtheCitymatching percentagesareeither100%,150%,or200%,bothasadoptedbythegoverningbodyoftheCity.UndertheStatelawgoverning TMRS,thecontributionrateforeachCityisdeterminedannuallybytheconsultingactuary,usingtheEntryAgeNormal(EAN) actuarialcostmethod.Theactuariallydeterminedrateistheestimatedamountnecessarytofinancethecostofbenefitsearned byemployeesduringtheyear,withanadditionalamounttofinanceanyunfundedaccruedliability. EmployeesfortheCitywererequiredtocontribute7%oftheirannualgrossearningsduringthefiscalyear.Thecontributionrates fortheCitywere15.34%and15.38%incalendaryears2021and2020,respectively.TheCityoptedtocontinuetocontribute16.28% (2018rate)duringtheyearendedSeptember30,2021inordertoreducetheliability. NetPensionLiability The/źƷǤ͸ƭnetpensionliabilitywasmeasuredasofDecember31,2020,andthetotalpensionliabilityusedtocalculatethenet pensionliabilitywasdeterminedbyanactuarialvaluationasofthatdate. ActuarialAssumptions tuarialvaluationwasdeterminedusingthefollowingactuarial ThetotalpensionliabilityintheDecember31,2020ac assumptions: Inflation:2.50% Overallpayrollgrowth:3.5%to11.50%includinginflation InvestmentRateofReturn:6.75%,netofpensionplaninvestmentexpense,includinginflation SalaryincreasesareassumedtooccuronceayearonJanuary1sothatthepayusedfortheperiodyearfollowingthevaluation isequaltothereportedpayfortheprioryear.Salariesareassumedtoincreaseonagraduatedservicebasedscale. ActuarialassumptionsweredevelopedprimarilyfromtheactuarialinvestigationoftheexperienceofTMRSoverthefouryear periodfromDecember31,2014toDecember31,2018.Theywereadoptedin2019andfirstusedintheDecember31,2019 actuarialvaluation.ThepostretirementmortalityassumptionforannuitypurchaseratesisbasedontheMortalityExperience InvestigationStudycovering2009through2011anddatedDecember31,2013.Planassetsaremanagedonatotalreturnbasis withanemphasisonbothcapitalappreciationaswellastheproductionofincome,inordertosatisfytheshorttermandlong termfundingneedsofTMRS. 57CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note8DefinedBenefitPensionPlans(continued) TexasMunicipalRetirementSystem(continued) ActuarialAssumptions(continued) Thelongtermexpectedrateofreturnonpensionplaninvestmentswasdeterminedusingabuildingblockmethodinwhichbest estimaterangesofexpectedfuturerealratesofreturn(expectedreturns,netofpensionplaninvestmentexpenseandinflation) aredevelopedforeachmajorassetclass.Theserangesarecombinedtoproducethelongtermexpectedrateofreturnby weightingtheexpectedfuturerealratesofreturnbythetargetassetallocationpercentageandbyaddingexpectedinflation.In determiningtheirbestestimateofarecommendedinvestmentreturnassumptionunderthevariousalternativeassetallocation portfolios,GRSfocusedontheareabetween(1)arithmeticmean(aggressive)withoutanadjustmentfortime(conservative) vative)withanadjustmentfortime(aggressive).Thetargetallocationandbestestimatesof and(2)thegeometricmean(conser realratesofreturnforeachmajorassetclassinfiscalyear2020aresummarizedinthetablebelow: LongTermExpectedReal RateofReturn (Arithmetic) AssetClassTargetAllocation Corefixedincome10.0%1.25% NonCorefixedincome20.0%4.14% Globalpublicequity30.0%5.30% RealEstate10.0%4.00% Realreturn10.0%3.85% Absolutereturn10.0%3.48% Privateequity10.0%7.75% Cashequivalents0.0%0.00% Total100.0% DiscountRate Thediscountrateusedtomeasurethetotalpensionliabilitywas6.75%.Theprojectionofcashflowsusedtodeterminethe discountrateassumedthatemployeeandemployercontributionswillbemadeattheratesspecifiedinstatute.Basedonthat assumption,thepensionƦƌğƓ͸ƭfiduciarynetpositionwasprojectedtobeavailabletomakeallprojectedfuturebenefitpayments ofcurrentactiveandinactiveemployees.Therefore,thelongtermexpectedrateofreturnonpensionplaninvestmentswas appliedtoallperiodsofprojectedbenefitpaymentstodeterminethetotalpensionliability. 58CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note8DefinedBenefitPensionPlans(continued) TexasMunicipalRetirementSystem(continued) ChangesintheNetPensionLiability Increase(Decrease) TotalPensionPlanFiduciaryNetNetPension LiabilityPositionLiability (a)(b)(a)(b) Balanceat12/31/2019$172,503,675$160,154,665$12,349,010 Changesfortheyear: Servicecost4,250,9214,250,921 Interest11,525,60511,525,605 Differencebetweenexpected andactualexperience 1,562,7701,562,770 Changesinassumptions Contributionsemployer4,253,719(4,253,719) Contributionsemployee1,848,227(1,848,227) Netinvestmentincome12,153,293(12,153,293) Benefitpayments,includingrefunds, ofemployeecontributions (7,758,859)(7,758,859) Administrativeexpense(78,663)78,663 Othercharges(3,069)3,069 Netchanges9,580,43710,414,648(834,211) Balanceat12/31/2020$182,084,112$170,569,313$11,514,799 SensitivityoftheNetPensionLiability ThefollowingpresentsthenetpensionliabilityoftheCity,calculatedusingthediscountrateof6.75%,aswellaswhatthe /źƷǤ͸ƭnetpensionliabilitywouldbeifitwerecalculatedusingadiscountratethatis1percentagepointlower(5.75%)or1 percentagepointhigher(7.75%)thanthecurrentrate: 1%DecreasetoCurrentSingleRate 5.75%Assumption6.75%1%Increaseto7.75% City'snetpensionliability$37,379,473$11,514,799$(9,661,132) PensionPlanFiduciaryNetPosition DetailedinformationaboutthepensionƦƌğƓ͸ƭfiduciarynetpositionisavailableinaseparatelyissuedTMRSfinancial report.ThatreportmaybeobtainedontheInternetatthefollowinglocation:2020TMRSComprehensiveAnnualFinancial Report. 59CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note8DefinedBenefitPensionPlans(continued) TexasMunicipalRetirementSystem(continued) PensionExpenseandDeferredOutflowsofResourcesandDeferredInflowsofResourcesRelatedtoPensions FortheyearendedSeptember30,2021,theCityrecognizedpensionexpenseof$1,649,329relatedtotheTMRSplanand pensionexpenseof$89,056relatedtotheTESRSplanfortotalpensionexpenseof$1,738,385. AtSeptember30,2021,theCityreporteddeferredoutflowsandinflowsofresourcesrelatedtopensionsfromthe followingsources: DeferredOutflowsDeferredInflows ofResourcesofResources Differencesbetweenactuarialassumptions andactualexperience $1,396,604$576,775 Changesinactuarialassumptionsused324,236 Differencesbetweenprojected andactualinvestmentearnings 4,576,807 Contributionssubsequentto themeasurementdate 3,011,518 Total$4,732,358$5,153,582 Deferredoutflowsofresourcesresultingfromcontributionssubsequenttothemeasurementdateof$3,011,518willbe recognizedasareductionofthenetpensionliabilityforthefiscalyearendingSeptember30,2022.Otheramounts reportedasdeferredoutflowsandinflowsofresourcesrelatedtopensionswillberecognizedinpensionexpenseas follows: Netdeferredoutflows FiscalYear(inflows)ofresources 2022$(1,502,443) 2023589,719 2024(2,274,543) 2025(245,475) Total$(3,432,742) TexasEmergencyServicesRetirementSystem PlanDescription TheCityparticipatesintheTexasEmergencyServicesRetirementSystem(TESRS),acostsharingmultipleemployerdefined benefitpensionestablishedandadministeredbytheStateofTexas.TheTESRSisanagencyoftheStateofTexasandits financialrecordscomplywithstatestatutesandregulations.TheninemembersBoardofTrustees,appointedbythe Governor,establishespolicyfortheadministrationoftheTexasEmergencyServicesRetirementSystem.TESRSissuesa publiclyavailableannualcomprehensivefinancialreport(annualreport)thatcanbeobtainedatwww.tesrs.org. 60CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note8DefinedBenefitPensionPlans(continued) TexasEmergencyServicesRetirementSystem(continued) PlanDescription(continued) TheTESRSwascreatedasastandaloneagencybythe83rdLegislatureviathepassageofSB220,effectiveSeptember1,2013, toassumetherelatedfunctionsoftheabolishedOfficeoftheFireCźŭŷƷĻƩƭ͸PensionCommissioner.Whiletheagencyisnew, theSystemhasbeeninexistencesince1977.TESRS,whichisundertheauthorityofTitle8,SubtitleH,Chapters861865of theTexasGovernmentCode,providesdeathanddisabilitybenefitstoactivevolunteerfirefightersandfirstresponders,and apensiontomemberswithvestedservice,aswellastotheirsurvivor/beneficiaries. BenefitsProvided SenateBill411,65thLegislature,RegularSession(1977),createdTESRSandestablishedtheapplicablebenefitprovisions.The 79thLegislature,RegularSession(2005),recodifiedtheprovisionsandgavetheTESRSBoardofTrusteesauthorityto establishvestingrequirements,contributionlevels,benefitformulas,andeligibilityrequirementsbyboardrule.Thebenefit provisionsincluderetirementbenefitsaswellasdeathanddisabilitybenefits.Membersare50%vestedafterthetenthyear ofservice,withthevestingpercentincreasing10%foreachofthenextfiveyearsofservicesothatamemberbecomes100% vestedwith15yearsofservice. Uponreachingage55,eachvestedmembermayretireandreceiveamonthlypensionequaltohisvestedpercentmultiplied bysixtimesthe/źƷǤ͸ƭaveragemonthlycontributionovertheƒĻƒĬĻƩ͸ƭyearsofqualifiedservice.Foryearsofservicein excessof15years,thismonthlybenefitisincreasedattherateof6.2%compoundedannually.Thereisnoprovisionfor automaticpostretirementbenefitincreases. nefitsandondutydisabilitybenefitsaredependentonwhetherornotthememberwasengaged Onandoffdutydeathbe intheperformanceofdutiesatthetimeofdeathordisability.Deathbenefitsincludealumpsumamountorcontinuing monthlypaymentstoaƒĻƒĬĻƩ͸ƭsurvivingspouseanddependentchildren. Contributions ContributionsaremadebytheCityfortheparticipatingemployees.Nocontributionsarerequiredfromtheindividualswhoare membersoftheTESRS,noraretheyallowed.TheCityisrequiredtomakecontributionstotheplanforeachmonthaneligible rmember.Contributionstothe emergencyservicepersonnelprovidesqualifiedservices.Theminimumcontributionis$36pe pensionplanfortheyearendedSeptember30,2021,were$62,235. NetPensionLiability The/źƷǤ͸ƭnetpensionliabilitywasmeasuredasofAugust31,2020andthetotalpensionliabilityusedtocalculatethenet pensionliabilitywasdeterminedbyanactuarialvaluationasofAugust31,2020. ActuarialAssumptions ThetotalpensionliabilityintheAugust31,2020actuarialvaluationwasdeterminedusingthefollowingactuarialassumptions: Inflation:3.00% SalaryIncreases:Notapplicable InvestmentRateofReturn:7.50%,netofpensionplaninvestmentexpense,includinginflation 61CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note8DefinedBenefitPensionPlans(continued) TexasEmergencyServicesRetirementSystem(continued) ActuarialAssumptions(continued) MortalityrateswerebasedonthePubS2010(publicsafety)belowmedianincomemortalitytablesforemployeesandfor retirees,projectedformortalityimprovementgenerationallyusingprojectionscaleMP2019. Thelongtermexpectedrateofreturnonpensionplaninvestmentswasdeterminedusingabuildingblockmethodinwhich expectedfuturenetrealratesofreturn(expectedreturns,netofpensionplaninvestmentexpenseandinflation)aredeveloped foreachmajorassetclass.Thesecomponentsarecombinedtoproducethelongtermexpectedrateofreturnbyweightingthe expectedfuturerealratesofreturnbythetargetassetallocationpercentage(currently4.6%)andbyaddingexpectedinflation (3.0%).Inaddition,thefinal7.5%assumptionwasselectedbyroundingdown.Thetargetallocationandexpectedarithmetic realratesofreturnforeachmajorassetclassaresummarizedinthefollowingtable: LongTermExpectedReal TargetRateofReturn Allocation(Arithmetic) AssetClass Equities Largecapdomestic20.0%5.83% Smallcapdomestic10.0%5.94% Developedinternational15.0%6.15% Emergingmarkets5.0%7.25% Globalinfrastructure5.0%6.41% RealEstate10.0%4.48% Multiassetincome5.0%3.84% Fixedincome30.0%1.99% Cash0.0%0.00% Total100.0% Weightedaverage4.60% DiscountRate Thediscountrateusedtomeasurethetotalpensionliabilitywas7.50%.Noprojectionofcashflowswasusedtodeterminethe discountratebecausetheAugust31,2018actuarialvaluationshowedthatexpectedcontributionswouldpaythenormalcostand amortizetheunfundedactuarialaccruedliability(UAAL)in30yearsusingtheconservativeleveldollaramortizationmethod. Becauseofthe30yearamortizationperiodwiththeconservativeamortizationmethod,thepensionƦƌğƓ͸ƭfiduciarynetposition isexpectedtobeavailabletomakeallprojectedfuturebenefitpaymentsofcurrentactiveandinactivemembers.Therefore,the longtermexpectedrateofreturnonpensionplaninvestmentswasappliedtoallperiodsofprojectedbenefitpaymentsto determinethetotalpensionliability. 62CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note8DefinedBenefitPensionPlans(continued) TexasEmergencyServicesRetirementSystem(continued) SensitivityoftheNetPensionLiability ThefollowingpresentsthenetpensionliabilityoftheCity,calculatedusingthediscountrateof7.50%,aswellaswhatthe /źƷǤ͸ƭnetpensionliabilitywouldbeifitwerecalculatedusingadiscountratethatis1percentagepointlower(6.50%)or1 percentagepointhigher(8.50%)thanthecurrentrate: 1%DecreasetoCurrentSingleRate 6.50%Assumption7.50%1%Increaseto8.50% City'snetpensionliability$648,451$336,565$119,869 PensionLiabilities,PensionExpenseandDeferredOutflowsofResourcesandDeferredInflowsofResourcesRelatedto Pensions AtAugust31,2020,theCityreportedaliabilityof$336,565foritsproportionateshareofthe9{w{͸ƭnetpensionliability. ThenetpensionliabilitywasmeasuredasofAugust31,2020,andthetotalpensionliabilityusedtocalculatethenetpension liabilitywasdeterminedbyanactuarialvaluationasofAugust31,2020.The/źƷǤ͸ƭproportionofthenetpensionliability rthe wasbasedonthe/źƷǤ͸ƭcontributionstothepensionplanrelativetothecontributionsofallemployerstotheplanfo periodSeptember1,2019throughAugust31,2020. AtAugust31,2020the/źƷǤ͸ƭproportionofthecollectivenetpensionliabilitywas1.335%whichwasanincreasefromits proportionmeasuredasofAugust31,2019of0.924%. FortheyearendedSeptember30,2021,theCityrecognizedpensionexpenseof$1,649,329relatedtotheTMRSplanand pensionexpenseof$89,056relatedtotheTESRSplanfortotalpensionexpenseof$1,738,385. AtSeptember30,2021,theCityreporteditsproportionateshareofthe9{w{͸deferredoutflowsandinflowsofresources relatedtopensionsfromthefollowingsources: DeferredOutflowsofDeferredInflowsof ResourcesResources Differencesbetweenactuarialassumptions andactualexperience $$16,029 Changesinactuarialassumptionsused550 Differencesbetweenprojected andactualinvestmentearnings 1,826 Contributionssubsequentto themeasurementdate 34,100 Total$35,926$16,579 63CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note8DefinedBenefitPensionPlans(continued) TexasEmergencyServicesRetirementSystem(continued) PensionLiabilities,PensionExpenseandDeferredOutflowsofResourcesandDeferredInflowsofResourcesRelatedto Pensions(continued) Deferredoutflowsofresourcesresultingfromcontributionssubsequenttothemeasurementdateof$34,100willbe recognizedasareductionofthenetpensionliabilityforthefiscalyearendingSeptember30,2022.Otheramounts reportedasdeferredoutflowsandinflowsofresourcesrelatedtopensionswillberecognizedinpensionexpenseas follows: Netdeferredoutflows FiscalYear(inflows)ofresources 2022(14,320)$ 2023(2,941) 202411,572 2025(9,064) Total(14,753)$ Note9OtherPostEmploymentBenefits TMRSSupplementalDeathBenefitsFund BenefitPlanDescription TheCityalsoparticipatesinthecostsharingmultipleemployerdefinedbenefitgrouptermlifeinsuranceplanoperatedby yelected,by theTexasMunicipalRetirementSystem(TMRS)knownastheSupplementalDeathBenefitsFund(SDBF).TheCit ordinance,toprovidegrouptermlifeinsurancecoveragetobothcurrentandretiredemployees.TheCitymayterminate coverageunderanddiscontinueparticipationintheSDBFbyadoptinganordinancebeforeNovember1ofanyyeartobe effectivethefollowingJanuary1. ThedeathbenefitforactiveemployeesprovidesalumpsumpaymentapproximatelyequaltotheĻƒƦƌƚǤĻĻ͸ƭannualsalary (calculatedbasedontheĻƒƦƌƚǤĻĻ͸ƭactualearnings,forthe12monthperiodprecedingthemonthofdeath);retired employeesareinsuredfor$7,500;thiscoverageisanotherpostemploymentbenefit(OPEB).AstheSDBFcoversbothactive andretireeparticipants,withnosegregationofassets,theSDBFisconsideredtobeanunfundedOPEBplan(i.e.noassets areaccumulated). MembershipintheplanasofthemeasurementdateofDecember31,2020wasasfollows: Inactiveemployeescurrentlyreceivingbenefits180 eceivingbenefits27 Inactiveemployeesentitledtobutnotyetr Activeemployees378 Total585 64CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note9OtherPostEmploymentBenefits(continued) TMRSSupplementalDeathBenefitsFund(continued) Contributions Contributionsaremademonthlybasedonthecoveredpayrollofemployeemembersoftheparticipatingmembercity.The contractuallyrequiredcontributionrateisdeterminedannuallyforeachcity(currently0.17%ofcoveredpayroll).Therateis basedonthemortalityandserviceexperienceofallemployeescoveredbytheSDBFandthedemographicsspecifictothe workforceofthecity.Thereisaoneyeardelaybetweentheactuarialvaluationthatservesasthebasisfortheemployer contributionrateandthecalendaryearwhentherategoesintoeffect.Thefundingpolicyofthisplanistoassurethat refund adequateresourcesareavailabletomeetalldeathbenefitpaymentsfortheupcomingyear;theintentisnottop retireetermlifeinsuranceduringĻƒƦƌƚǤĻĻƭ͸entirecareers.Assuch,contributionsareutilizedtofundactivememberdeaths onapayasyougobasis;anyexcesscontributionsandinvestmentincomeoverpaymentsthenbecomenetpositionavailable forbenefits. DiscountRate TheTMRSSDBFprogramistreatedasunfundedOPEBplanbecausetheSDBFtrustcoversbothactiveemployeesandretirees andtheassetsarenotsegregatedforthesegroups.UnderGASBStatementNo.75,thediscountrateforanunfundedOPEB 0%basedonthe planshouldbebasedon20yeartaxexemptAAorhigherMunicipalBonds.Therefore,adiscountrateof2.0 20YearBondGOIndexpublishedbybondbuyer.comisusedasofthemeasurementdateofDecember31,2020. ActuarialAssumptions The/źƷǤ͸ƭtotalOPEBliabilitywasmeasuredatDecember31,2020andwasdeterminedbyanactuarialvaluationasofthat dateusingthefollowingactuarialassumptions: ValuationDate:December31,2020 MethodsandAssumptions: Inflation:2.50% SalaryIncreases:3.50%to11.50%,includinginflation Discountrate:2.00%.ThediscountratewasbasedontheFidelityLƓķĻǣ͸ƭͻЋЉYearMunicipal GOAALƓķĻǣͼrateasofDecember31,2020. nefitrelatedcosts:$0 wĻƷźƩĻĻƭ͸shareofbe Administrativeexpenses:AlladministrativeexpensesarepaidthroughthePensionTrustandaccounted forunderreportingrequirementsunderGASBStatementNo.68. MortalityratesΑserviceretirees:2019MunicipalRetireesofTexasMortalityTables.Theratesareprojectedona fullygenerationalbasiswithscaleUMP. MortalityratesΑdisabledretirees:2019MunicipalRetireesofTexasMortalityTableswitha4yearsetforwardfor malesanda3yearsetforwardforfemales.Inaddition,a3.5%and3%minimum mortalityratewillbeappliedtoreflecttheimpairmentforyoungermembers whobecomedisabledformalesandfemales,respectively.Theratesare projectedonafullygenerationalbasisbyScaleUMPtoaccountforfuture mortalityimprovementssubjecttothefloor. 65CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note9OtherPostEmploymentBenefits(continued) ActuarialAssumptions(continued) TheactuarialassumptionsusedintheDecember31,2020valuationwerebasedontheresultsofanactuarialexperience cember31,2014toDecember31,2018. studyfortheperiodDe TMRSSupplementalDeathBenefitsFund(continued) ChangesintheTotalOPEBLiability TotalOPEBLiability Servicecost42,245$ Interest35,227 Changesofbenefitterms Differencebetweenexpected andactualexperienceofthetotalOPEBliability (14,873) Changesofassumptions222,587 Benefitpayments (7,169) NetchangeintotalOPEBliability278,017 TotalOPEBliabilitybeginning1,263,834 TotalOPEBliabilityending$1,541,851 Coveredpayroll$26,403,236 TotalOPEBliabilityasapercentageofcoveredpayroll5.84% SensitivityAnalysis ThefollowingpresentsthetotalOPEBliabilityoftheemployer,calculatedusingthediscountrateof2.00%,aswellaswhat the/źƷǤ͸ƭtotalOPEBliabilitywouldbeifitwerecalculatedusingadiscountratethatis1percentagepointlower(1.00%)or 1percentagepointhigher(3.00%)thanthecurrentrate.Notethatthehealthcarecosttrendratedoesnotaffectthetotal OPEBliability,sosensitivitytothehealthcarecosttrendrateisnotshown. CurrentDiscountRate Assumption 1%Decreaseto1.00%2.00%1%Increaseto3.00% $1,923,469$1,541,851$1,253,992 OPEBExpenseandDeferredOutflowsofResourcesandDeferredInflowsofResourcesRelatedtoOPEBActivity FortheyearendedSeptember30,2021,theCityrecognizedOPEBexpenseof$143,426relatedtotheTMRSSupplemental DeathBenefitsplanand$4,954,554relatedtotheRetireeHealthcarePlanforatotalexpenseof$5,097,980. 66CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note9OtherPostEmploymentBenefits(continued) TMRSSupplementalDeathBenefitsFund(continued) OPEBExpenseandDeferredOutflowsofResourcesandDeferredInflowsofResourcesRelatedtoOPEBActivity (continued) AsofSeptember30,2021,theCityreporteddeferredoutflowsofresourcesrelatedtoOPEBfromthefollowingsources: DeferredDeferred OutflowsofInflowsof ResourcesResources Differencesbetweenexpected andactualexperience $12,249$63,597 Changesassumptions360,64639,941 Contributionssubsequentto themeasurementdate 37,457 Total$410,352$103,538 The$37,457reportedasdeferredoutflowsofresourcesrelatedtoOPEBresultingfromCitycontributionssubsequentto themeasurementdatewillberecognizedasareductionofthetotalOPEBliabilityintheyearendingSeptember30,2022. AmountscurrentlyreportedasdeferredoutflowsofresourcesrelatedtoOPEB,excludingcontributionssubsequenttothe measurementdate,willberecognizedinOPEBexpenseasfollows: Netdeferredoutflows FiscalYear(inflows)ofresources 2022$65,953 202365,953 202452,633 202557,724 202627,094 Total$269,357 RetireeHealthCarePlan(RHCP) PlanDescription The/źƷǤ͸ƭdefinedbenefitOPEBplan,CityofLaPorteRetireeHealthCarePlan(RHCP),providesOPEBthroughanimplicit healthcarepremiumforretireesforallpermanentfulltimeemployeesoftheCity.RHCPisasingleemployerdefinedbenefit OPEBplanadministeredbytheCity.Atthistime,noassetsareaccumulatedinatrusttofundthefuturerequirementsofthe RHCP. 67CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note9OtherPostEmploymentBenefits(continued) RetireeHealthCarePlan(RHCP)(continued) Benefitsprovided RHCPprovidesaccesstopostretirementemployeesbyofferingaͻĬƌĻƓķĻķƦƩĻƒźǒƒͼstructure,thatis,theoverallhealth carepremiumsforactiveemployeesandnonMedicareretirees,arestatedintermsofasingleͻĬƌĻƓķĻķƦƩĻƒźǒƒͼ͵The differencebetweentheunderlyingretireeclaimsandtheblendedoverallhealthcarepremiumisreferredtoasanͻźƒƦƌźĭźƷͼ subsidy.BecausetheunderlyingclaimscostsforanonMedicareretireeareonaveragehigherthantheblendedpremium, thereisapositiveimplicitsubsidyforthenonMedicareretirees. Employeescoveredbybenefitterms.AtDecember31,2019,thefollowingemployeeswerecoveredbythebenefitterms: Retireesandbeneficiaries93 Inactive,nonretiredmembers Activemembers378 Total471 TotalOPEBLiability The/źƷǤ͸ƭtotalOPEBliabilityof$61,205,148wasmeasuredasofDecember31,2020,andwasdeterminedbyanactuarial valuationasofDecember31,2020. Actuarialassumptionsandmethods ThetotalOPEBliabilityintheDecember31,2020actuarialvaluationwasdeterminedusingthefollowingactuarial assumptionsandotherinputs,appliedtoallperiodsincludedinthemeasurement,unlessotherwisespecified: ValuationDate:December31,2020 MethodsandAssumptions: ActuarialCostMethod:IndividualEntryAge DiscountRate:2.00%asofDecember31,2020 Inflation:2.50% SalaryIncreases:3.50%to11.50%,includinginflation DemographicAssumptions:BasedontheexperiencestudycoveringthefouryearperiodendingDecember 31,2018asconductedfortheTexasMunicipalRetirementSystem(TMRS).For theOPEBvaluation,thestandardTMRSretirementrateswereadjustedtoreflect theimpactofthe/źƷǤ͸ƭretireemedicalplandesign. 19MunicipalRetireesofTexas Mortality:Forhealthyretirees,thegenderdistinct20 mortalitytablesareused.Theratesareprojectedonafillygenerationalbasis usingtheultimatemortalityimprovementratesintheMPtablestoaccountfor futuremortalityimprovements. HealthCareTrendRates:Pre65:Initialrateof7.00%decliningtoanultimaterateof4.25%after13years; Post65:Initialrateof6.30%decliningtoanultimaterateof4.25%after13years 68CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note9OtherPostEmploymentBenefits(continued) RetireeHealthCarePlan(RHCP)(continued) Actuarialassumptionsandmethods(continued) ParticipationRates:Itwasassumedthattheplanparticipationwouldvarybasedontheamountof thesubsidyprovided.Foreligibleretireeswithover30yearsofservice,95%were assumedtoparticipateintheplanatretirement.Foremployeeswithlessthan 30yearsofservice,theassumedparticipationrateisequaltothepercentageof premiumtheCitysubsidizes.Forexample,retireeseligibleforan85%subsidy wereassumedtoelectcoverage85%ofthetime,whileonly40%ofretirees eligiblefora40%subsidywereassumedtoelectcoverage. OtherInformation: Note:Thediscountratechangedfrom2.75%asofDecember31,2019to2.00%asof December31,2020.Additionally,thetwopersoncoveragerateswereupdated. DiscountRate Forplansthatdonothaveformalassets,thediscountrateshouldequalthetaxexemptmunicipalbondratebasedonan indexof20yeargeneralobligationbondswithanaverageAAcreditratingasofthemeasurementdate.Forthepurposeof thisvaluation,themunicipalbondrateis2.00%(basedonthedailyrateclosesttobutnotlaterthanthemeasurementdate oftheFidelityͻЋЉYearMunicipalGOAALƓķĻǣͼΜ͵Thediscountratewas2.75%asofthepriormeasurementdate. EBLiability ChangesintheTotalOP TotalOPEBLiability Servicecost2,066,931$ Interest1,630,780 Changesofbenefitterms Differencebetweenexpected andactualexperienceofthetotalOPEBliability (5,230,642) Changesofassumptions4,987,807 Benefitpayments (1,034,681) NetchangeintotalOPEBliability2,420,195 TotalOPEBliabilitybeginning58,784,953 TotalOPEBliabilityending$61,205,148 Coveredpayroll$23,404,058 tageofcoveredpayroll261.52% TotalOPEBliabilityasapercen 69CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note9OtherPostEmploymentBenefits(continued) RetireeHealthCarePlan(RHCP)(continued) SensitivityofthetotalOPEBliabilitytochangesinthediscountrate ThefollowingpresentstheƦƌğƓ͸ƭtotalOPEBliability,calculatedusingadiscountrateof2.75%,aswellaswhattheƦƌğƓ͸ƭ totalOPEBliabilitywouldbeifitwerecalculatedusingadiscountratethatisonepercentloweroronepercenthigher: CurrentDiscountRate Assumption 1%Decrease2.00%1%Increase $74,072,513$61,205,148$51,249,782 SensitivityofthetotalOPEBliabilitytochangesinthehealthcarecosttrendrates ThefollowingpresentstheƦƌğƓ͸ƭtotalOPEBliability,calculatedusingtheassumedtrendratesaswellaswhattheƦƌğƓ͸ƭtotal OPEBliabilitywouldbeifitwerecalculatedusingatrendratethatisonepercentloweroronepercenthigher: CurrentHealthcare CostTrendRate 1%DecreaseAssumption1%Increase $50,123,890$61,205,148$76,073,193 OPEBExpenseandDeferredOutflowsofResourcesandDeferredInflowsofResourcesRelatedtoOPEB FortheyearendedSeptember30,2021,theCityrecognizedOPEBexpenseof$143,426relatedtotheTMRSSupplemental DeathBenefitsplanand$4,954,554relatedtotheRetireeHealthcarePlanforatotalexpenseof$5,097,980. AtSeptember30,2021,theCityreporteddeferredoutflowsofresourcesanddeferredinflowsofresourcesrelatedtoOPEB fromthefollowingsources: DeferredDeferred OutflowsofInflowsof ResourcesResources Differencesbetweenexpected andactualexperience $$4,980,010 Changesassumptions11,233,93687,244 Contributionssubsequentto themeasurementdate 232,774 Total$11,466,710$5,067,254 The$232,774reportedasdeferredoutflowsofresourcesrelatedtoOPEBresultingfromCitycontributionssubsequentto themeasurementdatewillberecognizedasareductionofthetotalOPEBliabilityintheyearendingSeptember30,2022. 70CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note9OtherPostEmploymentBenefits(continued) RetireeHealthCarePlan(RHCP)(continued) OPEBExpenseandDeferredOutflowsofResourcesandDeferredInflowsofResourcesRelatedtoOPEB(continued) AmountscurrentlyreportedasdeferredoutflowsofresourcesrelatedtoOPEB,excludingcontributionssubsequenttothe measurementdate,willberecognizedinOPEBexpenseasfollows: Netdeferredoutflows FiscalYear(inflows)ofresources 2022$1,256,841 20231,256,841 20241,256,841 20251,256,841 2026850,791 Thereafter288,527 Total$6,166,682 Note10RiskManagement TheCityisexposedtovariousrisksoflossrelatedtotorts:theftof,damageto,anddestructionofassets;errorsandomissions; andnaturaldisasters.The/źƷǤ͸ƭriskmanagementprogramencompassesvariousmeansofprotectingtheCityagainstlossby obtainingproperty,casualtyandliabilitycoveragefromparticipationinariskpool.TheparticipationoftheCityintherisk poolislimitedtothepaymentofpremiums.TheCityisamemberoftheTexasMunicipalLeagueIntergovernmentalRiskPool, irdparty anunincorporatedassociationof1,860politicalsubdivisionsoftheStateofTexas.ThePoolcontractswithath administratorforadministration,investigationandadjustmentservicesinthehandlingofclaims.Alllosscontingencies, includingclaimsincurredbutnotreported,ifany,arerecordedandaccountedforbythePool.Settledclaimshavenot exceededinsurancecoverageinanyofthethreepreviousfiscalyears.Therehasnotbeenanysignificantreductionin insurancecoveragefromthatofthepreviousyear. Theinsuranceinternalservicefundisfundedbychargestothe/źƷǤ͸ƭotherfundsandcomponentunitsandisbasedprimarily uponthecontributingŅǒƓķƭ͸fulltimeemployeecount.TheCityselfinsuresaportionofhealthinsurancebenefitsprovided toemployees.ForhealthinsurancetheCityretainstheriskforthefirst$165,000ofanindividualclaim.Excessinsurance coverageispurchasedtocoverindividualclaimsinexcessof$165,000withalimitof$1,000,000percoverageperiod. 71CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note10RiskManagement(continued) Activitiesduringtheyearfortheinsuranceinternalservicefundincluded: Revenues Chargestodivisions$5,468,640 Interfundtransfers4,067,091 Chargestoemployees610,721 Chargestoretirees135,512 Cobracharges7,188 Other64,991 Interestrevenue1,851 Totalrevenues$10,355,994 Expenses Otherexpenses$681,310 Claimsadministration165,309 Claimsincurred6,082,807 Reinsurancepremiums633,021 Insurancepremiums495,397 Totalexpenses$8,057,844 Liabilitiesoftheinsurancefundarereportedwhenitisprobablethatalosshasoccurredandtheamountofthelosscanbe reasonablyestimated.Liabilitiesincludeanamountforclaimsthathavebeenincurredbutnotreported(IBNRs).Theresult oftheprocesstoestimatetheclaimsliabilityisnotanexactamountasitdependsonmanycomplexfactors,suchas,inflation, changesinlegalrequirementsanddamageawards.Accordingly,claimsarereevaluatedperiodicallytoconsidertheeffects ofinflation,recentclaimsettlementtrends(includingfrequencyandamountofpayoffs),andothereconomicandsocial stimateoftheclaimsalsoincludesamountsforincrementalclaimadjustmentexpensesrelatedtospecific factors.Thise claimsandotherclaimadjustmentexpenseregardlessofwhetherallocatedtospecificclaims. Changesinthebalanceofhealthinsuranceclaimsliabilityforthreefiscalyearsareasfollows: BeginningofPaymentsforEndofYear YearAccrualClaimsClaimsAccrual 9/30/2019546,849$$6,893,077$6,841,448$598,478 9/30/2020598,4787,618,4787,576,618640,338 9/30/2021640,3387,827,2697,782,324685,283 72CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note11Contingencies TheCityisadefendantinlawsuits.Althoughtheoutcomeofthelawsuitsisnotpresentlydeterminable,itistheopinionof the/źƷǤ͸ƭmanagementtheresolutionofthesematterswillnothaveamateriallyadverseeffectonthefinancialconditionof theCity. TheCityparticipatesincertainfederalandstateassistedgrantprograms.Theseprogramsaresubjecttoprogramcompliance auditsbythegrantorsortheirrepresentatives.Accordingly,the/źƷǤ͸ƭcompliancewithapplicablegrantrequirementswillbe establishedatafuturedate.Theamountofexpenditureswhichmaybedisallowedbythegrantingagenciescannotbe determinedatthistime,althoughtheCityanticipatessuchamounts,ifany,willbeimmaterial. Note12Encumbrances Appropriationsinallbudgetedfundslapseattheendofthefiscalyeareveniftheyhaverelatedencumbrances. Encumbrancesarecommitmentsrelatedtounperformed(executory)contractsforgoodsorservices(i.e.,purchaseorders, contracts,andcommitments).Encumbranceaccountingisutilizedtotheextentnecessarytoassureeffectivebudgetary controlandaccountabilityandtofacilitateeffectivecashplanningandcontrol.Whileallappropriationsandencumbrances lapseatyearend,validoutstandingencumbrances(thoseforwhichperformanceundertheexecutorycontractisexpected inthenextyear)arereappropriatedandbecomepartofthesubsequentǤĻğƩ͸ƭbudgetpursuanttostateregulations.Atyear endtheamountofencumbrancesexpectedtobehonoredinthenextyearwereasfollows: FundAmount General$240,255 NonmajorGovernmental58,460 Utilityfund11,236 Internalservicefund580,234 Total$890,185 Note13SoutheastWaterPurificationPlant TheLaPorteAreaWaterAuthorityΛͻ!ǒƷŷƚƩźƷǤͼΜandtheCityofHouston,TexashaveenteredintoaCostSharingWater ProjectContract(theͻ/ƚƓƷƩğĭƷͼΜwhereintheAuthority,theCitiesofLaPorte,aƚƩŭğƓ͸ƭPoint,andShoreacresagreetojointly financetheconstructionandoperationoftheSoutheastWaterPurificationPlant(SoutheastPlant).Underthetermsofthe Contract,theAuthoritypurchased4.2milliongallonsperdayproductionand5.25milliongallonsperdaypumpingcapacity. TheCitiesofLaPorte,aƚƩŭğƓ͸ƭPoint,andShoreacreshaveagreedtodemandandpumpingallocationsofthe!ǒƷŷƚƩźƷǤ͸ƭ purchaseofwaterfromtheSoutheastPlant. TherequiredfundsfortheundividedinterestintheSoutheastPlantandtheconstructionofatransmissionanddistribution systemtotransportwaterfromtheSoutheastPlantwereprovidedbyissuanceof$9.8millionrevenuesbonds,whichhave beenretired. ThewaterratetobesetbytheAuthoritywillnotbelessthananamountsufficienttoprovideforpaymentofallexpensesin producing,treating,andpumpingthewaterinconnectionwithtransmissionanddistributionsystemsandtoprovidepayment fortheinterestandprincipalofallbondswhenthebondsbecomedueandpayable. 73CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note14DuetoDevelopers TheTIRZisapartytoseveralagreementswithDeveloperswhoownpropertyintheLaPorteTaxIncrementZone.TheTIRZis obligatedtorepaytheDevelopersforpublicimprovementsmadeonthepropertyuptotheamountofincrementaltaxvalue gained. BeazerHomesTexas\[t͸ƭreimbursableexpendituresforBaysideCrossingtotaled$1,449,517includinginterestatAugust24, 2016.Inthecurrentfiscalyear,interestwascalculatedat$250.TheDeveloperwasreimbursed$1,196forinterestand $111,051appliedtoprincipal. BeazerHomesTexas\[t͸ƭreimbursableexpendituresforBaysideCrossingSupplementaltotaled$177,498,includinginterest atAugust23,2017.Inthecurrentfiscalyear,anadditionalamountof$37,348wascalculatedforinterest. Senior!ƭƭƚĭźğƷĻ͸ƭreimbursableexpendituresandlandforBaysideCrossingtotaled$466,032includinginterestatAugust24, 2016.Inthecurrentfiscalyear$9,781waspaidtowardinterest. 65LaPorte,Ltd(LakesofFairmontGreens)hadreimbursableexpendituresapprovedinthecurrentfiscalyearof$4,293,060 onApril15,2020.Nointerestwillaccruebecausepresentvaluewasused.Paymentsduringthecurrentfiscalyeartotal $276,585. Inaddition,certaindevelopershavesignedaDevelopmentAgreementbuthavenotsubmittedcostsforreimbursementof theirprojects.Estimatedcosts,basedontheagreement,areasfollows: HawthorneatLaPorte,LLC$2,019,908 JabezΑLB1,L.L.C.$1,952,754 Note15IndustrialPayments In1958,theCitycreatedanIndustrialZoneadjacenttotheCity,whichpresentlyencompassesapproximately5,500acresof landnorthofHighway225andborderingtheHoustonShipChannel.TheCityannexedsufficientlandtocompletelyencircle tractswithallofthe thisIndustrialZone,protectingitfromannexationbyanyothermunicipality.TheCityenteredintocon IndustrieslocatedintheZonewherebytheCityannexedaportionofthetotalvalueofeachindustrywiththeremainder constitutingtheprotectedIndustrialDistrict.InadditiontotheIndustrialZonenorthofHighway225,whichisreferredtoas the"BattlegroundIndustrialDistrict,"theCitycontainsanIndustrialZoneonitssouthsidereferredtoasthe"Bayport IndustrialDistrict."TheBayportDistrict,createdin1970,covers2,500acres. TheCityandtheIndustries,manyofwhichhavecometotheIndustrialZonessincetheoriginalcontracts,arepresentlyunder contracts,whichextendtoDecember31,2031.Underthetermsofthecurrentcontracts,theindustriesmakepaymentsto theCityeachyearinlieuoftaxes.Theseannualinlieupaymentsareinanamountwhich,whenaddedtothefullCitytaxes ontheannexedportion,equal64%ofwhattheCity'staxesontheindustrywouldbeif100%oftheindustrywasintheCity. Thecontractscontainanewconstructionclausethatallowsnewplantfacilitiestomakeinlieupaymentson30%ofthevalue ofnewadditions.Currently,162companiesparticipateinindustrialdistrictcontracts.Thesecontractshaveservedasa valuableeconomictoolformorethan50years. 74CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitA10 NOTESTOTHEFINANCIALSTATEMENTS(continued) Note16FundBalance AssignedfundbalanceoftheGeneralFundatyearendconsistedofthefollowing: Municipalengineeringservices82,393$ Documentimaging71,394 Redsignalenforcementlights41,210 EOCAVimprovements14,930 Licensingforvehiclegateway12,856 Strategicplanningconsultant4,211 Ammunition1,089 AED's5,886 ProfessionalservicesforCommunityRatingSystem6,286 TotalGeneralFundAssignedFundBalance$240,255 75CityofLaPorte2021ACFR DRAFT 03.04.2022 REQUIREDSUPPLEMENTARYINFORMATION 76CityofLaPorte2021ACFR DRAFT 03.04.2022 77CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB1 GENERALFUND SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FortheYearEndedSeptember30,2021 BudgetedAmounts Variancewith FinalBudget Positive OriginalFinalActualAmounts(Negative) Revenues Taxes: Propertytaxesandpenalties18,905,500$$18,905,500$23,370,584$4,465,084 Othertaxes90,00090,00098,1378,137 Licensesandpermits841,511841,511650,402(191,109) Finesandforfeitures1,457,4401,457,4401,550,11592,675 Salesandusetaxes5,999,2875,999,2876,702,765703,478 Industrialpayments17,310,02017,310,02018,188,121878,101 Franchisetaxes3,004,8953,004,8952,996,774(8,121) Intergovernmentalrevenues77,86877,868 InvestmentEarnings350,000350,00049,605(300,395) Chargesforservices5,830,4405,830,4406,078,174247,734 Miscellaneous172,467172,467576,366403,899 TotalRevenues 53,961,56053,961,56060,338,9116,377,351 Expenditures Current: Generalgovernment12,415,45412,256,55912,588,034(331,475) Publicsafety21,401,91821,401,01821,002,317398,701 Publicworks4,881,9595,113,7214,690,723422,998 Healthandsanitation3,106,1623,226,1623,247,033(20,871) Cultureandrecreation6,310,1926,313,1495,860,184452,965 TotalExpenditures 48,115,68548,310,60947,388,291922,318 Excess(Deficiency)ofRevenues Over(Under)Expenditures 5,845,8755,650,95112,950,6207,299,669 es) OtherFinancingSources(Us Transfersin57,50057,50057,500 Transfersout(12,719,445)(12,719,445)(12,719,445) TotalOtherFinancingSources(Uses)(12,661,945)(12,661,945)(12,661,945) NetChangeinFundBalance(6,816,070)(7,010,994)288,6757,299,669 FundBalances,Beginning 64,523,92764,523,92764,523,927 FundBalances,Ending$57,707,857$57,512,933$64,812,602$7,299,669 78CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB2 SPECIALREVENUEFUNDΑRESTRICTEDFUND SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 Variance OriginalPositive BudgetFinalBudgetGAAPActual(Negative) Revenues Finesandforfeitures89,500$$89,500$187,483$97,983 Intergovernmentalrevenues10,150,67410,150,674465,327(9,685,347) Investmentearnings1,6371,637 Chargesforservices303,000303,000 TotalRevenues 10,240,17410,240,174957,447(9,282,727) Expenditures Current: Generalgovernment2,115,0751,981,47551,5541,929,921 Publicsafety385,596385,596385,417179 Publicworks148,300148,300147,491809 Healthandsanitation17,00017,00017,000 Cultureandrecreation28,00028,00028,000 Capitaloutlay7,861,4327,861,432142,3457,719,087 TotalExpenditures 10,555,40310,421,803771,8079,649,996 ChangeinFundBalance(315,229)(181,629)185,640367,269 FundBalances,Beginning 2,660,6042,660,6042,660,604 FundBalances,Ending$2,345,375$2,478,975$2,846,244$367,269 79CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB3 LAPORTEREDEVELOPMENTAUTHORITY(TAXINCREMENTREINVESTMENTZONE) SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FortheYearEndedSeptember30,2021 BudgetedAmounts Variancewith FinalBudget Positive OriginalFinalActualAmounts (Negative) Revenues: Propertytaxes6,763,110$$6,763,110$5,822,439$(940,671) Investmentearnings975975483(492) TotalRevenues 6,764,0856,764,0855,822,922(941,163) Expenditures Current: Generalgovernment1,677,5802,161,088907,9261,253,162 DebtService: Principal1,253,9521,347,300387,636959,664 Interestandothercharges10,977(10,977) TotalExpenditures 2,931,5323,508,3881,306,5392,201,849 Netchangeinfundbalance3,832,5533,255,6974,516,3831,260,686 Fundbalancesbeginningofyear4,276,7184,276,7184,276,718 Fundbalancesendofyear$8,109,271$7,532,415$8,793,101$1,260,686 80CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB4 NOTESTOREQUIREDSUPPLEMENTARYINFORMATION 1.BudgetaryControlsandProcedures Theobjectiveofthe/źƷǤ͸ƭbudgetarycontrolsistoensurecompliancewithlegalprovisionsembodiedintheannual appreciatedbudgetapprovedbytheCityCouncil.TheCityManagerisrequiredbychartertosubmitaproposedbudgetand accompanyingmessagetoCityCouncilbyAugust1.TheCouncilshallreviewandrevisetheproposedbudgetastheydeem appropriatepriortocirculationforthepublichearing.Asummaryoftheproposedbudgetandnoticeofthepublichearing mustbepostedinCityHallandbepublishedintheofficialnewspaperatleast2weekspriortothehearing.Annualbudgets forGeneral,DebtService,SpecialRevenueandEnterpriseFundsarelegallyadoptedbyordinanceandmustbedonesono laterthanthelastdayofthefiscalyear.Budgetarycontrolforcapitalprojectsfundsisachievedthroughlegallybinding constructioncontractsandprojectlengthbudgets. Thelevelofbudgetarycontrol(thelevelatwhichexpenditurescannotlegallyexceedtheappropriatedamount)isthetotal approvedbudgetforeachdepartment.TheCityManagerisauthorizedtotransferpartofallofanyunencumbered appropriationbalanceamongprogramswithinadepartment.Allotheramendmentsand/ortransfersmustbeapprovedby Council. Annualappropriatedbudgetsareadoptedforgeneral,specialrevenue,anddebtservicefunds,usingthesamebasisof accountingasforfinancialreporting.Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccounting principles(GAAP)exceptthecapitalprojectsfunds,whichadoptasawhole.TheoriginalbudgetisadoptedbytheCityCouncil priortothebeginningoftheyear. Appropriationslapseattheendoftheyear,excludingcapitalprojectbudgets. FortheyearendedSeptember30,2021,expendituresexceededtheappropriatedamountinthefollowingtwodepartments: Generalgovernment$331,475 Healthandsanitation:$20,871 81CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB5 SCHEDULEOFCHANGESINNETPENSIONLIABILILTYANDRELATEDRATIOSPage1of2 TEXASMUNICIPALRETIREMENTSYSTEM LastSevenMeasurementYears 2020201920182017 Totalpensionliability ServiceCost $4,250,921$3,890,913$3,668,483$3,714,539 Interest(ontheTotalPensionLiability) 11,525,60510,969,46010,570,18110,112,101 Differencebetweenexpectedandactual 1,562,770412,341(1,410,118)(658,901) experience Changesofassumptions 611,170 Benefitpayments,includingrefundsof (7,758,859)(7,890,546)(6,158,492)(6,558,193) employeecontributions Netchangeintotalpensionliability 9,580,4377,993,3386,670,0546,609,546 TotalpensionliabilityΑbeginning 172,503,675164,510,337157,840,283151,230,737 TotalpensionliabilityΑending $182,084,112$172,503,675$164,510,337$157,840,283 Planfiduciarynetposition ContributionsΑemployer $4,253,719$3,850,439$3,625,504$3,602,160 ContributionsΑemployee 1,848,2271,672,9971,575,4221,578,735 Netinvestmentincome 12,153,29321,775,702(4,381,890)17,987,506 Benefitpayments,includingrefundsof (7,758,859)(7,890,546)(6,158,492)(6,558,193) employeecontributions AdministrativeExpense (78,663)(123,059)(84,698)(93,223) Other (3,070)(3,697)(4,424)(4,725) Netchangeinplanfiduciarynetposition 10,414,64719,281,836(5,428,578)16,512,260 PlanfiduciarynetpositionΑbeginning 160,154,666140,872,830146,301,408129,789,148 PlanfiduciarynetpositionΑending $170,569,313$160,154,666$140,872,830$146,301,408 Netpensionliability $11,514,799$12,349,009$23,637,507$11,538,875 Planfiduciarynetpositionasapercentage ofthetotalpensionliability 93.68%92.84%85.63%92.69% Coveredpayroll $26,403,236$23,899,954$22,506,030$22,553,362 Netpensionliabilityasapercentageof coveredemployeepayroll 43.61%51.67%105.03%51.16% GASB68requires10fiscalyearsofdatatobeprovidedinthisschedule.TheCitywillcontinuetobuildthisscheduleoverthenext10year periodastheinformationbecomesavailable. 82CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB5 SCHEDULEOFCHANGESINNETPENSIONLIABILILTYANDRELATEDRATIOSPage2of2 TEXASMUNICIPALRETIREMENTSYSTEM LastSevenMeasurementYears 201620152014 Totalpensionliability ServiceCost $3,600,954$3,401,691$3,045,776 Interest(ontheTotalPensionLiability) 9,653,9409,564,6379,108,178 Differencebetweenexpectedandactual (40,363)(500,190)(761,946) perience ex Changesofassumptions (325,022) Benefitpayments,includingrefundsof (6,409,301)(5,304,879)(4,793,355) employeecontributions Netchangeintotalpensionliability 6,805,2306,836,2376,598,653 TotalpensionliabilityΑbeginning 144,425,507137,589,270130,990,617 TotalpensionliabilityΑending $151,230,737$144,425,507$137,589,270 Planfiduciarynetposition ContributionsΑemployer $3,415,127$3,461,463$3,534,991 ContributionsΑemployee 1,528,5111,506,1581,460,768 Netinvestmentincome 8,314,792181,9546,665,254 Benefitpayments,includingrefundsof (6,409,301)(5,304,879)(4,793,355) ployeecontributions em AdministrativeExpense (93,910)(110,827)(69,591) Other (5,060)(5,474)(5,722) Netchangeinplanfiduciarynetposition 6,750,159(271,605)6,792,345 PlanfiduciarynetpositionΑbeginning 123,038,989123,310,594116,518,249 PlanfiduciarynetpositionΑending $129,789,148$123,038,989$123,310,594 Netpensionliability $21,441,589$21,386,518$14,278,676 Planfiduciarynetpositionasapercentage ofthetotalpensionliability 85.82%85.19%89.62% Coveredpayroll $21,823,962$21,421,227$20,708,639 Netpensionliabilityasapercentageof coveredemployeepayroll 98.25%99.84%69.0% GASB68requires10fiscalyearsofdatatobeprovidedinthisschedule.TheCitywillcontinuetobuildthisschedule overthenext10yearperiodastheinformationbecomesavailable. 83CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB6 SCHEDULEOFCONTRIBUTIONSPage1of2 TEXASMUNICIPALRETIREMENTSYSTEM LastEightFiscalYears 2021*2020*2019*20182017 ActuariallyDeterminedContribution $4,046,260$3,815,501$3,655,811$3,616,211$3,566,725 Contributionsinrelationtothe actuariallydeterminedcontribution (4,240,541)(3,987,213)(3,759,780)(3,616,211)(3,566,725) Contributiondeficiency(excess) $(194,281)$(171,712)$(103,969)$$ Coveredpayroll$26,357,289$24,749,926$23,338,178$22,496,785$22,446,058 Contributionsasapercentageofcovered payroll15.35%15.42%15.66%16.07%15.89% 201620152014 ActuariallyDeterminedContribution $3,489,185$3,496,424 $3,551,472 Contributionsinrelationtothe actuariallydeterminedcontribution (3,551,472)(3,489,185)(3,496,424) Contributiondeficiency(excess) $$$ Coveredpayroll22,512,615$$21,323,383$20,543,616 Contributionsasapercentageofcovered payroll15.78%16.36%17.02% *theTMRSrecommendedcontributiondecreasedincalendaryear20192021.TheCitymaintainedcontributionsat the2019calendaryearrateinordertoincreasetheirfundedstatus ilable. Note:Thisscheduleisrequiredtohave10yearsofinformation,buttheinformationpriorto2014isnotava 84CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB6 NOTESTOTHESCHEDULEOFCONTRIBUTIONSPage2of2 TEXASMUNICIPALRETIREMENTSYSTEM ValuationDate: ActuariallydeterminedcontributionratesarecalculatedasofDecember31andbecome effectiveinJanuary13monthslater. MethodsandAssumptionsUsedtoDetermineContributionRates: ActuarialCostMethodEntryAgeNormal RemainingAmortizationPeriod24years AssetValuationMethod10Yearsmoothedmarket;15%softcorridor Inflation2.50% SalaryIncreases3.50%to11.50%includinginflation Discountrate6.75% Retirees'shareofbenefitrelatedcosts$0 AdministrativeexpensesAlladministrativeexpensesarepaidthroughthePensionTrustandaccountedforunder reportingrequirementsofGASBStatementNo.68 2019MunicipalretireesofTexasMortalityTables.Theratesareprojectedonafully Mortalityrateserviceretirees generationalbasiswithscaleUMP lityTableswitha4yearsetforwardformalesanda3 Mortalityratedisabledretirees2019MunicipalretireesofTexasMorta yearsetforwardforfemales.Inaddition,a3.5%and3%minimummortalityratewillbeapplied toreflecttheimpairmentforyoungermemberswhobecomedisabledformalesandfemales respectively.TheratesareprojectedonafullygenerationalbasisbyScaleUMPtoaccountfor futuremortalityimprovementssubjecttothefloor. 85CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB7 SCHEDULEOF/L—͸{PROPORTIONATESHAREOF THENETPENSIONLIABILITY TEXASEMERGENCYSERVICESRETIREMENTSYSTEM LastSevenMeasurementYears 20202019201820172016 City'sproportionofthenetpensionliability 1.335%0.924%0.630%0.653%0.780% City'sproportionateshareofthenetpensionsliability $336,565$261,913$136,398$156,731$227,199 City'scoveredpayroll 62,23563,43529,17527,69415,498 City'sproportionateshareofthenetpensionliabilityaspercentage ofitscoveredpayroll 541%413%468%566%1466% Planfiduciarynetpositionasapercentageofthetotalpension liability 83.2%84.3%81.4%76.3%76.9% 20152014 City'sproportionofthenetpensionliability0.982%0.721% City'sproportionateshareofthenetpensionsliability$262,121$131,018 City'scoveredpayroll 18,61718,420 City'sproportionateshareofthenetpensionliabilityaspercentage ofitscoveredpayroll 1408%711% Planfiduciarynetpositionasapercentageofthetotalpension liability 76.9%83.5% Tenyearsofdatashouldbepresentedbutdatawasunavailablepriorto2014. 86CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS SCHEDULEOF/L—͸{CONTRIBUTIONSExhibitB8 TEXASEMERGENCYSERVICESRETIREMENTSYSTEM LastEightFiscalYears 20212020201920182017 Contractuallyrequiredcontribution $62,235$64,435$30,180$40,265$26,495 Contributionsinrelationtothecontractuallyrequiredcontribution (62,235)(64,435)(30,180)(40,265)(26,495) Contributiondeficiency(excess) City'scoveredpayroll 63,43563,43529,17527,69415,498 Contributionasapercentageofcoveredemployeepayroll 98.1%101.6%103.4%145.4%171.0% 201620152014 Contractuallyrequiredcontribution $38,095$48,820$26,055 Contributionsinrelationtothecontractuallyrequiredcontribution (38,095)(48,820)(26,055) Contributiondeficiency(excess) City'scoveredpayroll 18,61718,42018,617 Contributionasapercentageofcoveredemployeepayroll 204.6%265.0%140.0% Tenyearsofdatashouldbepresentedbutdatawasunavailablepriorto2014. 87CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB9 SCHEDULEOFCHANGESINTOTALOPEBLIABILILTYANDRELATEDRATIOS CITYOFLAPORTERETIREEHEALTHCAREPLAN LastFourMeasurementYears TotalOPEBLiability2020201920182017 Servicecost$2,066,931$1,618,763$1,671,651$1,424,797 InterestonthetotalOPEBliability1,630,7801,855,0341,583,1941,611,153 Differencebetweenexpectedandactual experienceofthetotalOPEBliability(5,230,642)(601,446)(31,749)(43,219) Changesinassumptions4,987,8077,102,096(147,052)3,495,450 Benefitpayments(1,034,681)(762,083)(996,520)(1,140,414) NetchangeintotalOPEBliability2,420,1959,212,3642,079,5245,347,767 TotalOPEBLiabilityBeginning58,784,95349,572,58947,493,06542,145,298 TotalOPEBLiabilityEnding$61,205,148$58,784,953$49,572,589$47,493,065 Coveredpayroll$23,404,058$23,900,629$22,506,030$21,799,361 TotalOPEBliabilityasapercentage ofcoveredpayroll261.52%245.96%220.26%217.86% NotestotheRequiredSupplementaryInformation Tenyearsofdatashouldbepresentedbutdatawasunavailablepriorto2017. Therearenoplanassetsaccumulatedinatrustthatmeetsthecriteriainparagraph4ofGASB StatementNo.75. Thediscountratechangedfrom2.75%asofDecember31,2019to2.00%asofDecember31, 2020. 88CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitB10 SCHEDULEOFCHANGESINTOTALOPEBLIABILILTYANDRELATEDRATIOS TEXASMUNICIPALRETIREMENTSYSTEMSUPPLEMENTALDEATHBENEFITSFUND LastFourMeasurementYears TotalOPEBLiability2020201920182017 Servicecost$42,245$31,070$31,508$27,064 InterestonthetotalOPEBliability35,22739,72535,27034,660 Differencebetweenexpectedandactual experienceofthetotalOPEBliability(14,873)(77,291)24,065 Changesinassumptions222,587218,703(78,470)91,449 Benefitpayments(7,169)(7,170)(6,752)(6,766) NetchangeintotalOPEBliability278,017205,0375,621146,407 TotalOPEBLiabilityBeginning1,263,8341,058,7971,053,176906,769 TotalOPEBLiabilityEnding$1,541,851$1,263,834$1,058,797$1,053,176 Coveredpayroll$26,403,236$23,899,954$22,506,030$22,553,362 TotalOPEBliabilityasapercentage ofcoveredpayroll5.84%5.29%4.70%4.67% NotestotheRequiredSupplementaryInformation Tenyearsofdatashouldbepresentedbutdatawasunavailablepriorto2017. Therearenoplanassetsaccumulatedinatrustthatmeetsthecriteriainparagraph4ofGASB StatementNo.75. Nosignificantmethodsandassumptionstodisclose. 89CityofLaPorte2021ACFR DRAFT 03.04.2022 COMBININGANDINDIVIDUALFUND STATEMENTSANDSCHEDULES 90CityofLaPorte2021ACFR DRAFT 03.04.2022 NonmajorGovernmentalFunds SpecialRevenueFunds SpecialRevenueFundsareusedtoaccountforspecificrevenuesthatarelegallyrestrictedforparticularpurposes. Hotel/MotelOccupancyTaxFund ThisfundisusedtoaccountfortheaccumulationofresourcesfromtheHotel/MotelTax tethedevelopmentorprogressoftheCitywithinthe assessmentleviedbytheCity.Thesemoniesaretobespenttopromo guidelinessetforthondispositionofrevenuescollectedundertheauthorityoftheTexasHotelOccupancyAct(Article1369; ĻƩƓƚƓ͸ƭTexasCivilStatutes). Section4BSalesTaxFundΑ Thisfundisusedtoaccountforfundsreceivedfromthe½centsalestaxdedicatedtocertain economicandinfrastructureprojects. StreetMaintenanceSalesTaxFund ΑThisfundisusedtoaccountfortheadditionalsalestaxcollectedforstreetmaintenance. EmergencyServicesSalesTaxFund ΑThisfundisusedtoaccountfortheadditionalsalestaxcollectedforemergency maintenance. ThesefundsareusedtoaccountforrevenuestobereceivedfromtheCommunityDevelopmentBlockGrantEntitlement Fund. CapitalProjectsFunds Capitalprojectsfundsareusedtoaccountfortheacquisitionandconstructionofmajorcapitalfacilitiesotherthanthose financedbyproprietaryfunds. 2006CertificatesofObligationFund ΑThisfundisusedtoaccountfortheproceedsandexpendituresrelatedtothePolice Facility,aSportsComplex,SouthLaPorteTrunkSewerandvariousotherWater/Sewerprojects. ceedsandexpendituresrelatedtostreet, 2010CertificatesofObligationFund ΑThisfundisusedtoaccountforthepro drainageandparkimprovements. 2015CertificatesofObligationFund ΑThisfundisusedtoaccountforbondproceedsandtheexpenditureofthosefundsfor theconstructionofandimprovementstothewastewatersystem. 2017CertificatesofObligationFund ΑThisfundisusedtoaccountforbondproceedsandtheexpenditureofthosefundsfor waterandsewerimprovements,andstreetanddrainageimprovements. 2021CertificatesofObligationFund ΑThisfundisusedtoaccountforbondproceedsandtheexpenditureofthosefundsfor waterandsewerimprovements,andstreetanddrainageimprovements. DrainageImprovements ΑThisfundisusedtoaccountfortheproceedsandexpendituresrelatedtothedrainagefees collected. 91CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC1 COMBININGBALANCESHEETPage1of3 NONMAJORGOVERNMENTALFUNDS September30,2021 SpecialRevenueFunds HotelMotel OccupancyTaxSection4BSalesStreetMaintenanceEmergencyTotalSpecial FundTaxSalesTaxServiceSalesTaxRevenueFunds Assets CurrentAssets: Cashandcashequivalents2,005,086$$7,339,442$5,271,427$1,993,171$16,609,126 Investments153,614479,259403,856152,7021,189,431 Receivables126,583597,725298,920295,4671,318,695 TotalAssets$2,285,283$8,416,426$5,974,203$2,441,340$19,117,252 LiabilitiesandFundBalances Liabilities: Accountspayable$10,055$69,000$511,079$91,297$681,431 Accruedsalaries1,7682523,0025,022 Unearnedrevenues100100 TotalLiabilities 11,82369,352511,07994,299686,553 FundBalances: Restrictedfor: Debtservice1,089,0171,089,017 Economicdevelopment2,273,4607,258,0579,531,517 Publicsafety2,347,0412,347,041 Capitalprojects Publicworks5,463,1245,463,124 TotalFundBalances 2,273,4608,347,0745,463,1242,347,04118,430,699 TotalLiabilitiesandFundBalances$2,285,283$8,416,426$5,974,203$2,441,340$19,117,252 92CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC1 COMBININGBALANCESHEETPage2of3 NONMAJORGOVERNMENTALFUNDS September30,2021 CapitalProjectsFunds 2017 2006Certificates2010Certificates2015CertificatesCertificatesof ofObligationofObligationofObligationObligation Assets CurrentAssets: Cashandcashequivalents$7,169$878,032$2,644,408$10,072,988 Investments54924,2037,7523,619 Receivables165 TotalAssets$7,718$902,251$2,652,165$10,076,607 LiabilitiesandFundBalances Liabilities: Accountspayable$$214,769$10,493$128,837 Accruedsalaries Unearnedrevenues TotalLiabilities 214,76910,493128,837 FundBalances: Restrictedfor: Debtservice Economicdevelopment Publicsafety Capitalprojects7,718687,4822,641,6729,947,770 Publicworks TotalFundBalances 7,718687,4822,641,6729,947,770 TotalLiabilitiesandFundBalances$7,718$902,251$2,652,165$10,076,607 93CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC1 COMBININGBALANCESHEETPage3of3 NONMAJORGOVERNMENTALFUNDS September30,2021 CapitalProjectsFunds 2021TotalNonmajor CertificatesofDrainageTotalCapitalGovernmental ObligationImprovementsProjectsFundsFunds Assets CurrentAssets: Cashandcashequivalents$13,500,719$4,977,279$32,080,595$48,689,721 Investments381,322417,4451,606,876 Receivables30,60630,6271,349,322 TotalAssets$13,500,719$5,389,207$32,528,667$51,645,919 LiabilitiesandFundBalances Liabilities: Accountspayable$$383,144$737,243$1,418,674 Accruedsalaries5,022 Unearnedrevenues100 TotalLiabilities 383,144737,2431,423,796 FundBalances: Restrictedfor: Debtservice1,089,017 Economicdevelopment9,531,517 Publicsafety2,347,041 Capitalprojects13,500,7195,006,06331,791,42431,791,424 Publicworks5,463,124 TotalFundBalances 13,500,7195,006,06331,791,42450,222,123 TotalLiabilitiesandFundBalances$13,500,719$5,389,207$32,528,667$51,645,919 94CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC2 STATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCEPage1of3 NONMAJORGOVERNMENTALFUNDS FortheYearEndedSeptember30,2021 SpecialRevenueFunds StreetEmergencyTotalSpecial Hotel/MotelSection4bMaintenanceServiceSalesRevenue TaxSalesTaxSalesTaxTaxFunds Revenues Finesandforfeitures$$$$$ Salesandusetaxes751,8543,368,7081,684,3541,675,8777,480,793 Investmentearnings1,3453,6512,4331,2788,707 Chargesforservices Miscellaneous1,2741,274 TotalRevenues 754,4733,372,3591,686,7871,677,1557,490,774 Expenditures Current: Generalgovernment401,692194,990596,682 Publicsafety1,239,9041,239,904 Publicworks12,38912,389 Capitaloutlay996,29886,8681,083,166 Debtservice: Otherdebtserviceexpenditures TotalExpenditures 401,692194,9901,008,6871,326,7722,932,141 Excess(Deficiency)ofRevenues Over(Under)Expenditures 352,7813,177,369678,100350,3834,558,633 OtherFinancingSources(Uses) Transfersin2,100,0002,100,000 unds(57,500)(967,000)(1,024,500) Transferstootherf Certificatesofobligationissued Premiumoncertificatesofobligation TotalOtherFinancingSources(Uses)(57,500)(967,000)2,100,0001,075,500 ChangeinFundBalance 295,2812,210,3692,778,100350,3835,634,133 FundBalances,Beginning 1,978,1796,136,7052,685,0241,996,65812,796,566 FundBalances,Ending$2,273,460$8,347,074$5,463,124$2,347,041$18,430,699 95CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC2 STATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCEPage2of3 NONMAJORGOVERNMENTALFUNDS FortheYearEndedSeptember30,2021 CapitalProjectsFund 2006Certificates2010Certificates2015Certificates2017Certificates ofObligationofObligationofObligationofObligation Revenues Finesandforfeitures$$$$ Salesandusetaxes Investmentearnings55471,3514,847 Chargesforservices Miscellaneous TotalRevenues 55471,3514,847 Expenditures Current: Generalgovernment Publicsafety Publicworks43,132 Capitaloutlay436,50249,98098 Debtservice: Otherdebtserviceexpenditures TotalExpenditures 436,50249,98043,230 Excess(Deficiency)ofRevenues Over(Under)Expenditures 5(435,955)(48,629)(38,383) OtherFinancingSources(Uses) Transfersin Transferstootherfunds Certificatesofobligationissued Premiumoncertificatesofobligation TotalOtherFinancingSources(Uses) ChangeinFundBalance 5(435,955)(48,629)(38,383) FundBalances,Beginning 7,7131,123,4372,690,3019,986,153 FundBalances,Ending$7,718$687,482$2,641,672$9,947,770 96CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC2 STATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCEPage3of3 NONMAJORGOVERNMENTALFUNDS FortheYearEndedSeptember30,2021 CapitalProjectsFund Tota lNonmajor 2021CertificatesDrainageTotalCapitalGovernmental ofObligationImprovementsProjectsFundsFunds Revenues Finesandforfeitures$$$$ Salesandusetaxes7,480,793 Investmentearnings7191,8509,31918,026 Chargesforservices286,512286,512286,512 Miscellaneous1,274 TotalRevenues 719288,362295,8317,786,605 Expenditures Current: Generalgovernment596,682 Publicsafety1,239,904 Publicworks43,13255,521 Capitaloutlay419,473906,0531,989,219 Debtservice: Otherdebtserviceexpenditures164,693164,693164,693 TotalExpenditures 164,693419,4731,113,8784,046,019 Excess(Deficiency)ofRevenues Over(Under)Expenditures(163,974)(131,111)(818,047)3,740,586 OtherFinancingSources(Uses) Transfersin3,800,0003,800,0005,900,000 Transferstootherfunds(1,024,500) Certificatesofobligationissued11,545,00011,545,00011,545,000 Premiumoncertificatesofobligation2,119,6932,119,6932,119,693 TotalOtherFinancingSources(Uses)13,664,6933,800,00017,464,69318,540,193 ChangeinFundBalance 13,500,7193,668,88916,646,64622,280,779 FundBalances,Beginning 1,337,17415,144,77827,941,344 FundBalances,Ending$13,500,719$5,006,063$31,791,424$50,222,123 97CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC3 DEBTSERVICEFUND SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 VariancePositive FinalBudgetGAAPActual(Negative)2020 Revenues Taxes: Propertytaxes$3,419,000$3,830,236$411,236$3,833,522 Investmentearnings11,0001,446(9,554)54,299 TotalRevenues 3,430,0003,831,682401,6823,887,821 Expenditures Debtservice: Principal3,775,0003,560,000215,0003,775,000 Interestandfiscalcharges882,119801,27480,845922,581 TotalExpenditures 4,657,1194,361,274295,8454,697,581 Excess(Deficiency)ofRevenues Over(Under)Expenditures(1,227,119)(529,592)697,527(809,760) OtherFinancingSources(Uses) Transfersin1,256,664 Issuanceofrefundingbonds2,705,000 Premiumonissusnceofrefundingbonds352,246 Paymenttobondescrowagent(2,982,662) TotalOtherFinancingSources(Uses)1,331,248 ChangeinFundBalance(1,227,119)(529,592)697,527521,488 FundBalances,Beginning 5,013,5175,013,5174,492,029 FundBalances,Ending$3,786,398$4,483,925$697,527$5,013,517 98CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC4 CAPITALIMPROVEMENTSFUND SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Variance Positive FinalBudgetGAAPActual(Negative)2020 Revenues Investmentearnings25,000$$9,566$(15,434)$102,742 TotalRevenues 25,0009,566(15,434)102,742 Expenditures Current: Generalgovernment5,312(5,312)26,797 Cultureandrecreation12,796(12,796)107,204 Capitaloutlay1,717,3442,764,176(1,046,832)2,037,370 TotalExpenditures 1,717,3442,782,284(1,064,940)2,171,371 Excess(Deficiency)ofRevenues Over(Under)Expenditures(1,692,344)(2,772,718)(1,080,374)(2,068,629) OtherFinancingSources(Uses) Transfersin2,967,0002,967,0006,792,950 TotalOtherFinancingSources(Uses)2,967,0002,967,0006,792,950 ChangeinFundBalance 1,274,656194,282(1,080,374)4,724,321 FundBalances,Beginning 13,516,02713,516,0278,791,706 FundBalances,Ending$14,790,683$13,710,309$(1,080,374)$13,516,027 99CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC5 SPECIALREVENUEFUNDΑHOTEL/MOTELTAX SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Variance Positive (Negative)2020 FinalBudgetGAAPActual Revenues Salesandusetaxes$750,000$751,854$1,854$601,408 Investmentearnings7,5001,345(6,155)16,922 Miscellaneous1,2741,2745,807 TotalRevenues 757,500754,473(3,027)624,137 Expenditures Current: Generalgovernment682,043401,692280,351462,493 TotalExpenditures 682,043401,692280,351462,493 Excess(Deficiency)ofRevenues Over(Under)Expenditures 75,457352,781277,324161,644 OtherFinancingSources(Uses) Transferstootherfunds(57,500)(57,500)(57,476) TotalOtherFinancingSources(Uses)(57,500)(57,500)(57,476) ChangeinFundBalance 17,957295,281277,324104,168 FundBalances,Beginning 1,978,1791,978,1791,874,011 FundBalances,Ending$1,996,136$2,273,460$277,324$1,978,179 100CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC6 SPECIALREVENUEFUNDΑSECTION4BSALESTAX SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Variance Positive FinalBudgetGAAPActual(Negative)2020 Revenues Salesandusetaxes$2,999,644$3,368,708$369,064$3,296,751 Investmentearnings25,0003,651(21,349)37,574 TotalRevenues 3,024,6443,372,359347,7153,334,325 Expenditures Generalgovernment812,828194,990617,838253,797 TotalExpenditures 812,828194,990617,838253,797 Excess(Deficiency)ofRevenues Over(Under)Expenditures 2,211,8163,177,369965,5533,080,528 OtherFinancingSources(Uses) Transferstootherfunds(967,000)(967,000)(2,297,772) TotalOtherFinancingSources(Uses)(967,000)(967,000)(2,297,772) ChangeinFundBalance 1,244,8162,210,369965,553782,756 FundBalances,Beginning 6,136,7056,136,7055,353,949 FundBalances,Ending$7,381,521$8,347,074$965,553$6,136,705 101CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC7 SPECIALREVENUEFUNDΑSTREETMAINTENANCESALESTAXFUND SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Variance Positive FinalBudgetGAAPActual(Negative)2020 Revenues Salesandusetaxes$1,499,822$1,684,354$184,532$1,648,376 Investmentearnings12,5002,433(10,067)27,575 TotalRevenues 1,512,3221,686,787174,4651,675,951 Expenditures Current: Publicworks5,00012,389(7,389)5,000 Capitaloutlay(1,186,340)996,298(2,182,638)2,016,887 TotalExpenditures(1,181,340)1,008,687(2,190,027)2,021,887 OtherFinancingSources(Uses) Transfersin2,100,0002,100,000 TotalOtherFinancingSources(Uses)2,100,0002,100,000 ChangeinFundBalance 4,793,6622,778,100(2,015,562)(345,936) FundBalances,Beginning 2,685,0242,685,0243,030,960 FundBalances,Ending$7,478,686$5,463,124$(2,015,562)$2,685,024 102CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC8 SPECIALREVENUEFUNDΑEMERGENCYSERVICESSALESTAXFUND SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Variance Positive FinalBudgetGAAPActual(Negative)2020 Revenues Salesandusetaxes1,499,822$$1,675,877$176,055$1,616,922 Investmentearnings2,5001,278(1,222)12,572 TotalRevenues 1,502,3221,677,155174,8331,629,494 Expenditures Current: Publicsafety1,291,0171,239,90451,113948,583 Capitaloutlay114,95986,86828,091116,764 TotalExpenditures 1,405,9761,326,77279,2041,065,347 ChangeinFundBalance 96,346350,383254,037564,147 FundBalances,Beginning 1,996,6581,996,6581,432,511 FundBalances,Ending$2,093,004$2,347,041$254,037$1,996,658 103CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC9 CAPITALPROJECTSFUNDΑ2006CERTIFICATESOFOBLIGATION SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Variance Positive FinalBudgetGAAPActual (Negative)2020 Revenues Investmentearnings$$5$5$74 TotalRevenues 5574 ChangeinFundBalance 5574 FundBalances,Beginning 7,7137,7137,639 FundBalances,Ending$7,713$7,718$5$7,713 104CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC10 CAPITALPROJECTSFUNDΑ2010CERTIFICATESOFOBLIGATION SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Variance Positive FinalBudgetGAAPActual(Negative)2020 Revenues Investmentearnings$$547$547$10,488 TotalRevenues 54754710,488 Expenditures Current: Capitaloutlay436,502(436,502) TotalExpenditures 436,502(436,502) ChangeinFundBalance(435,955)(435,955)10,488 FundBalances,Beginning 1,123,4371,123,4371,112,949 FundBalances,Ending$1,123,437$687,482$(435,955)$1,123,437 105CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC11 CAPITALPROJECTSFUNDΑ2015CERTIFICATESOFOBLIGATION SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Variance Positive FinalBudgetGAAPActual(Negative)2020 Revenues Investmentearnings$$1,351$1,351$33,765 TotalRevenues 1,3511,35133,765 Expenditures Current: Generalgovernment Publicworks Capitaloutlay49,980(49,980)99,959 TotalExpenditures 49,980(49,980)99,959 ChangeinFundBalance(48,629)(48,629)(66,194) FundBalances,Beginning 2,690,3012,690,3012,756,495 FundBalances,Ending$2,690,301$2,641,672$(48,629)$2,690,301 106CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC12 CAPITALPROJECTSFUNDΑ2017CERTIFICATESOFOBLIGATION SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Var iance Positive FinalBudgetGAAPActual(Negative)2020 Revenues Investmentearnings$$4,847$4,847$117,101 TotalRevenues 4,8474,847117,101 Expenditures Current: Publicworks43,132(43,132)343,807 Capitaloutlay98(98)5,172 TotalExpenditures 43,230(43,230)348,979 ChangeinFundBalance(38,383)(38,383)(231,878) FundBalances,Beginning 9,986,1539,986,15310,218,031 FundBalances,Ending$9,986,153$9,947,770$(38,383)$9,986,153 107CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC13 CAPITALPROJECTSFUNDΑ2021CERTIFICATESOFOBLIGATION SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Var iance Positive FinalBudgetGAAPActual(Negative)2020 Revenues Investmentearnings$$719$719$ TotalRevenues 719719 Expenditures Debtservice: Otherdebtserviceexpenditures164,693(164,693) TotalExpenditures 164,693(164,693) Excess(Deficiency)ofRevenues Over(Under)Expenditures(163,974)(163,974) OtherFinancingSources(Uses) Certificatesofobligationissued11,545,00011,545,000 Premiumoncertificatesofobligation2,119,6932,119,693 TotalOtherFinancingSources(Uses)13,664,69313,664,693 ChangeinFundBalance 13,500,71913,500,719 FundBalances,Beginning FundBalances,Ending$$13,500,719$13,500,719$ 108CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC14 CAPITALPROJECTSFUNDΑDRAINAGEIMPROVEMENTS SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL FORTHEYEARENDEDSEPTEMBER30,2021 WithcomparativeactualamountsfortheyearendedSeptember30,2020 Variance Positive (Negative)2020 FinalBudgetGAAPActual Revenues Investmentearnings$5,000$1,850$(3,150)$10,794 Chargesforservices290,000286,512(3,488)292,491 TotalRevenues 295,000288,362(6,638)303,285 Expenditures Current: Capitaloutlay2,400,000419,4731,980,52740,286 TotalExpenditures 2,400,000419,4731,980,52740,286 Excess(Deficiency)ofRevenues Over(Under)Expenditures(2,105,000)(131,111)1,973,889262,999 OtherFinancingSources(Uses) Transfersin3,800,0003,800,000 TotalOtherFinancingSources(Uses)3,800,0003,800,000 ChangeinFundBalance 1,695,0003,668,8891,973,889262,999 FundBalances,Beginning 1,337,1741,337,1741,074,175 FundBalances,Ending$3,032,174$5,006,063$1,973,889$1,337,174 109CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC15 GENERALFUND SCHEDULEOFREVENUESΑBUDGETANDACTUAL FortheYearEndedSeptember30,2021 Variancewith FinalBudget BudgetedAmountsActualPositive OriginalFinalAmounts(Negative) Taxes: Advalorem: Current18,700,000$$18,700,000$23,426,282$4,726,282 Delinquent(308,933)(308,933) Penaltyandinterest205,500205,500253,23547,735 Totaladvalorem18,905,50018,905,50023,370,5844,465,084 IndustrialPayments17,310,02017,310,02018,188,121878,101 SalesTaxes5,999,2875,999,2876,702,765703,478 OtherTaxes90,00090,00098,1378,137 FranchiseTaxes: Electrical2,275,8952,275,8952,362,06886,173 Gas135,000135,000151,76916,769 Telephone244,000244,00078,950(165,050) Cable265,000265,000322,16357,163 CommercialSolidwaste85,00085,00081,824(3,176) TotalFranchiseTaxes3,004,8953,004,8952,996,774(8,121) ChargesforServices: Publicsafetyservicefees603,414603,414630,62727,213 Healthandsanitationservicefees3,212,5003,212,5003,455,866243,366 Cultureandrecreationfees1,628,5201,628,5201,520,006(108,514) Otherservicefees386,006386,006471,67585,669 TotalChargesforServices5,830,4405,830,4406,078,174247,734 Intergovernmental77,86877,868 Licensesandpermits: Buildingpermits824,355824,355627,991(196,364) Licenses17,15617,15622,4115,255 TotalLicensesandpermits841,511841,511650,402(191,109) Investmentearnings350,000350,00049,605(300,395) Finesandforfeitures1,457,4401,457,4401,550,11592,675 Miscellaneous172,467172,467576,366403,899 Totalrevenues$53,961,560$53,961,560$60,338,911$6,377,351 110CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC16 GENERALFUNDPage1of6 SCHEDULEOFEXPENDITURESΑBUDGETANDACTUAL FortheYearEndedSeptember30,2021 Variancewith FinalBudget BudgetedAmounts ActualPositive OriginalFinalAmounts(Negative) GeneralGovernment Administration: EmergencyManagement: Personalservices259,122$$259,122$274,488$(15,366) Supplies25,45219,30116,3242,977 Otherservicesandcharges110,789116,940106,23410,706 TotalEmergencyManagement395,363395,363397,046(1,683) GeneralAdministration: Personalservices481,167$$481,167$500,994(19,827) Supplies3,9803,9804,154(174) Otherservicesandcharges90,081136,29353,04983,244 TotalGeneralAdministration575,228621,440558,19763,243 CommunityInvestment: Personalservices$$$$ Supplies33,30551,73336,41415,319 Otherservicesandcharges90,90090,90058,82332,077 TotalCommunityInvestment124,205142,63395,23747,396 HumanResources: Personalservices$297,896$297,896$309,638$(11,742.00) Supplies2,9002,9002,620280 Otherservicesandcharges223,049223,049160,93062,119 TotalHumanResources523,845523,845473,18850,657 InformationTechnology Personalservices679,719$$679,719$684,184$(4,465.00) Supplies2,8682,8682,006862 Otherservicesandcharges1,624,6801,626,8151,678,737(51,922) CapitalOutlay30,00030,79530,795 TotalInformationTechnology2,337,2672,340,1972,395,722(55,525) MunicipalCourt: Personalservices874,599$$874,599$871,343$3,256.00 Suppliesandmaterials26,70026,70019,4657,235 Otherservicesandcharges113,278113,27884,16929,109 TotalMunicipalCourt1,014,5771,014,577974,97739,600 Purchasing: Personalservices$305,623$305,623$320,036$(14,413.00) Supplies1,2501,250801449 Otherservicesandcharges10,84810,8486,9093,939 TotalPurchasing317,721317,721327,746(10,025) 111CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC16 GENERALFUNDPage2of6 SCHEDULEOFEXPENDITURESΑBUDGETANDACTUAL FortheYearEndedSeptember30,2021 Variancewith FinalBudget BudgetedAmounts ActualPositive OriginalFinalAmounts(Negative) GeneralGovernment(continued) CitySecretary: Personalservices$392,920$389,972$411,057$(21,085.00) Suppliesandmaterials5,9506,35010,298(3,948) Otherservicesandcharges212,511215,059145,57669,483 TotalCitySecretary611,381611,381566,93144,450 Legal: Personalservices$152,899$152,899$151,665$1,234.00 Suppliesandmaterials Otherservicesandcharges24,50024,50033,830(9,330) Capitaloutlay TotalLegal177,399177,399185,495(8,096) CityCouncil: Personalservices$38,754$38,754$39,185$(431) Suppliesandmaterials11,25011,25011,370(120) Otherservicesandcharges29,97829,97816,40913,569 TotalCityCouncil79,98279,98266,96413,018 TotalAdministration 6,156,9686,224,5386,041,503183,035 Finance: Accounting: Personalservices$817,836$817,067$769,877$47,190 Supplies5,9506,7197,372(653) Otherservicesandcharges99,25999,259113,104(13,845) TotalAccounting923,045923,045890,35332,692 Nondepartmental: Personalservices$660,379$660,379$1,329,516$(669,137) Supplies6,0006,0007,239(1,239) Otherservicesandcharges2,279,0232,050,0472,152,381(102,334) TotalNondepartmental2,945,4022,716,4263,489,136(772,710) TaxOffice: Personalservices$165,771$165,771$156,285$9,486 Suppliesandmaterials3,5753,5751,5122,063 Otherservicesandcharges331,627331,627313,92017,707 TotalTaxOffice500,973500,973471,71729,256 TotalFinance 4,369,4204,140,4444,851,206(710,762) 112CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC16 GENERALFUNDPage3of6 SCHEDULEOFEXPENDITURESΑBUDGETANDACTUAL FortheYearEndedSeptember30,2021 Variancewith FinalBudget BudgetedAmounts ActualPositive OriginalFinalAmounts(Negative) GeneralGovernment(continued) PlanningandEngineering: PlanningandEngineering: Personalservices$717,452$563,868$580,339$(16,471) Supplies7,8767,7766,2501,526 Otherservicesandcharges89,501245,696138,473107,223 TotalPlanningandEngineering814,829817,340725,06292,278 Inspection: Personalservices$914,370$914,370$846,505$67,865 Supplies28,90928,15929,935(1,776) Otherservicesandcharges130,958131,70893,82337,885 TotalInspection1,074,2371,074,237970,263103,974 TotalPlanningandEngineering 1,889,0661,891,5771,695,325196,252 TotalGeneralGovernment 12,415,45412,256,55912,588,034(331,475) PublicSafety Fire FirePrevention: Personalservices$487,836$487,836$499,288$(11,452) Supplies12,80412,80426,414(13,610) Otherservicesandcharges17,90217,90214,0553,847 CapitalOutlay39,00038,10026,94511,155 TotalFirePrevention557,542556,642566,702(10,060) Firesuppression: Personalservices$2,141,956$2,141,956$1,981,469160,487 Supplies94,48194,481135,465$(40,984) Otherservicesandcharges333,743333,743275,29158,452 TotalFireSuppression2,570,1802,570,1802,392,225177,955 Emergencymedicalservices: Personalservices$2,933,769$2,933,769$3,117,953$(184,184) Supplies158,678158,678205,375(46,697) Otherservicesandcharges161,448161,448138,36423,084 TotalEmergencyServices3,253,8953,253,8953,461,692(207,797) TotalFire 6,381,6176,380,7176,420,619(39,902) 113CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC16 GENERALFUNDPage4of6 SCHEDULEOFEXPENDITURESΑBUDGETANDACTUAL FortheYearEndedSeptember30,2021 Variancewith FinalBudget BudgetedAmounts ActualPositive OriginalFinalAmounts(Negative) PublicSafety(continued) Police PoliceAdministration: Personalservices805,585$$805,585$832,664$(27,079) Supplies18,58918,58913,6894,900 Otherservicesandcharges172,105172,105153,31218,793 TotalPoliceAdministration996,279996,279999,665(3,386.00) PolicePatrol: Personalservices6,519,793$$6,519,793$6,207,217$312,576 Supplies245,900305,240311,147(5,907) Otherservicesandcharges1,042,4531,053,6731,027,69825,975 CapitalOutlay370,178299,618176,559123,059 TotalPolicePatrol8,178,3248,178,3247,722,621455,703 CriminalInvestigation: Personalservices$2,242,039$2,242,039$2,273,569$(31,530) Supplies49,33453,45947,0036,456 Otherservicesandcharges209,926205,801185,50920,292 CapitalOutlay5,849(5,849) TotalCriminalInvestigation2,501,2992,501,2992,511,930(10,631) SupportServices: Personalservices$2,942,475$2,942,475$2,989,210$(46,735) Supplies89,64389,64377,75511,888 Otherservicesandcharges257,281257,281228,81528,466 CapitalOutlay55,00055,00051,7023,298 TotalSupportServices3,344,3993,344,3993,347,482(3,083) TotalPolice 15,020,30115,020,30114,581,698438,603 TotalPublicSafety 21,401,91821,401,01821,002,317398,701 PublicWorks PublicWorksAdministration: Personalservices$577,485$577,485$554,154$23,331 ,277 Suppliesandmaterials12,48112,48110,2042 Otherservicesandcharges146,929146,92964,09782,832 TotalPublicWorksAdministration736,895736,895628,455108,440 114CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC16 GENERALFUNDPage5of6 SCHEDULEOFEXPENDITURESΑBUDGETANDACTUAL FortheYearEndedSeptember30,2021 Variancewith FinalBudget BudgetedAmounts ActualPositive OriginalFinalAmounts(Negative) PublicWorks(continued) Streets: Personalservices1,830,356$$1,830,356$1,827,260$3,096 Supplies134,684146,184120,98625,198 Otherservicesandcharges918,449907,625853,54054,085 CapitalOutlay24,20025,32425,325(1) TotalStreets2,907,6892,909,4892,827,11182,378 Facilitiesmaintenance: Personalservices596,082$$596,082$548,319$47,763 Supplies45,38445,88441,2234,661 Otherservicesandcharges534,715764,677594,441170,236 CapitalOutlay61,19460,69451,1749,520 TotalStreets1,237,3751,467,3371,235,157232,180 TotalPublicWorks 4,881,9595,113,7214,690,723422,998 HealthandSanitation Residentialsolidwaste: Personalservices$1,535,429$1,535,429$1,592,912$(57,483) Supplies300,314300,314294,4665,848 Otherservicesandcharges1,252,9191,372,9191,341,99530,924 TotalResidentialSolidwaste3,088,6623,208,6623,229,373(20,711) Commercialsolidwaste: Otherservicesandcharges17,50017,50017,660(160) TotalCommercialSolidwaste17,50017,50017,660(160) TotalHealthandSanitation 3,106,1623,226,1623,247,033(20,871) Culture&Recreation ParkMaintenance: Personalservices$1,337,856$1,337,856$1,372,712$(34,856) Suppliesandmaterials204,963204,963209,157(4,194) Otherservicesandcharges665,901698,233705,221(6,988) Capitaloutlay255,555223,223160,09263,131 TotalParkMaintenance2,464,2752,464,2752,447,18217,093 Recreation: Personalservices$834,015$834,015$674,974$159,041 Supplies87,35491,85486,7705,084 Otherservicesandcharges95,56091,06059,52831,532 CapitalOutlay TotalRecreation1,016,9291,016,929821,272195,657 115CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC16 GENERALFUNDPage6of6 SCHEDULEOFEXPENDITURESΑBUDGETANDACTUAL FortheYearEndedSeptember30,2021 Variancewith FinalBudget BudgetedAmounts ActualPositive OriginalFinalAmounts(Negative) Culture&Recreation(continued) SpecialServices: Personalservices425,307$$425,307$400,135$25,172 Supplies29,55429,55420,8278,727 Otherservicesandcharges63,75263,75260,6803,072 CapitalOutlay TotalSpecialServices518,613518,613481,64236,971 ParksAdministration: PersonalServices$538,972$538,972$495,292$43,680 Supplies8,2008,2006,3241,876 OtherServicesandCharges23,90826,86518,6828,183 TotalParksAdministration571,080574,037520,29853,739 GolfCourseClubHouse PersonalServices$478,391$478,391$446,161$32,230 Supplies64,06064,06058,7885,272 OtherServicesandCharges59,77459,77456,3953,379 CapitalOutlay TotalGolfCourse602,225602,225561,34440,881 GolfCourseMaintenance PersonalServices$719,119$719,119$665,127$53,992 Supplies153,600153,600124,57829,022 OtherServicesandCharges250,351250,351224,78125,570 CapitalOutlay14,00014,00013,96040 TotalGolfCourse1,137,0701,137,0701,028,446108,624 TotalCulture&Recreation 6,310,1926,313,1495,860,184452,965 TotalGeneralFund$48,115,685$48,310,609$47,388,291$922,318 116CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC17 COMBININGSTATEMENTOFNETPOSITION INTERNALSERVICEFUNDS September30,2021 Vehicle ReplacementEmployeeHealth FundInsuranceTechnologyTotal Assets CurrentAssets: Cashandcashequivalents$7,119,549$4,304,321$2,248,847$13,672,717 Investments578,703329,764172,2901,080,757 Otherreceivables,netofallowance3603,9961134,469 Duefromothergovernments119,927119,927 Inventories54,45854,458 TotalCurrentAssets 7,753,0704,758,0082,421,25014,932,328 NoncurrentAssets: Capitalassets: Equipment20,843,4531,455,06622,298,519 Lessaccumulateddepreciation(13,445,861)(710,969)(14,156,830) TotalNonCurrentAssets 7,397,592744,0978,141,689 TotalAssets 15,150,6624,758,0083,165,34723,074,017 Liabilities Currentliabilities: Accountspayable41,90030,60572,505 Accruedliabilities24,9681,35426,322 Claimsandjudgments685,283685,283 TotalCurrentLiabilities 66,868717,242784,110 NoncurrentLiabilities: Accruedcompensatedabsences49,74449,744 TotalNoncurrentLiabilities 49,74449,744 TotalLiabilities 116,612717,242833,854 NetPosition Investedincapitalassets7,397,592744,0978,141,689 Unrestricted7,636,4584,040,7662,421,25014,098,474 TotalNetPosition$15,034,050$4,040,766$3,165,347$22,240,163 117CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC18 COMBININGSTATEMENTOFREVENUES,EXPENSES ANDCHANGESINNETPOSITION INTERNALSERVICEFUNDS FortheYearEndedSeptember30,2021 Vehicle ReplacementEmployeeHealth FundInsuranceTechnologyTotal OperatingRevenues ChargesforServices3,780,023$$6,222,061$542,528$10,544,612 Other8,51264,99173,503 TotalOperatingRevenues 3,788,5356,287,052542,52810,618,115 OperatingExpenses Personnel860,780230,5751,091,355 Suppliesandmaterials654,8317,827,26982,8478,564,947 Depreciation1,624,491152,8201,777,311 TotalOperatingExpenses 3,140,1028,057,844235,66711,433,613 OperatingIncome(Loss)648,433(1,770,792)306,861(815,498) NonOperatingRevenues InvestmentEarnings5,0091,8511,6688,528 Gain/lossondisposalofcapitalassets 161,371161,371 TotalNonOperatingRevenues 166,3801,8511,668169,899 Income(Loss)BeforeContributionsand Transfers 814,813(1,768,941)308,529(645,599) ContributionsandTransfers Transfersfromotherfunds4,067,0914,067,091 ds(20,585)(20,585) Transfers(to)otherfun TotalContributionsandTransfers(20,585)4,067,0914,046,506 ChangeinNetPosition 794,2282,298,150308,5293,400,907 NetPosition,Beginning 14,239,8221,742,6162,856,81818,839,256 NetPosition,Ending$15,034,050$4,040,766$3,165,347$22,240,163 118CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS ExhibitC19 COMBININGSTATEMENTOFCASHFLOWS INTERNALSERVICEFUNDS FortheYearEndedSeptember30,2021 VehicleEmployee ReplacementHealth FundInsuranceTechnologyTotal CashFlowsfromOperatingActivities Receiptsfromcustomers$3,788,178$6,286,704$542,416$10,617,298 Disbursedforpersonnelservices(851,906)(231,084)(1,082,990) Disbursedforgoodsandservicestosuppliers(628,622)(7,818,791)(82,847)(8,530,260) NetCashProvided(Used)byOperatingActivities 2,307,650(1,763,171)459,5691,004,048 CashFlowsFromNoncapitalFinancingActivities erfunds4,067,0914,067,091 Transferfromoth Transferstootherfunds(20,585)(20,585) NetCashProvided(Used)byNoncapitalFinancialActivities (20,585)4,067,0914,046,506 CashFlowsfromCapital&RelatedFinancingActivities Proceedsfromthesaleofequipment161,371161,371 Acquisitionandconstructionofcapitalassets(1,719,035)(580,684)(2,299,719) NetCash(Used)byCapital&RelatedFinancingActivities (1,557,664)(580,684)(2,138,348) CashFlowsfromInvestingActivities Interestreceived5,0091,8511,6688,528 PurchaseofInvestments(694,787)(395,913)(206,850)(1,297,550) Saleofinvestments278,191104,93288,589471,712 NetCashProvided(Used)byInvestingActivities(411,587)(289,130)(116,593)(817,310) NetIncrease(Decrease)inCashandCashEquivalents 317,8142,014,790(237,708)2,094,896 CashandCashEquivalents,Beginning6,801,7352,289,5312,486,55511,577,821 CashandCashEquivalents,Ending$7,119,549$4,304,321$2,248,847$13,672,717 ReconciliationofOperatingIncome(Loss)to NetCashProvided(Used)byOperatingActivities Operatingincome(loss)$648,433$(1,770,792)$306,861$(815,498) Adjustmentstoreconcileoperatingincome(loss)tonetcash provided(used)byoperatingactivities: Depreciation1,624,491152,8201,777,311 (Increase)decreaseinaccountsreceivable(357)(348)(112)(817) (Increase)ininventories(971)(971) Increase(decrease)inaccountspayable27,180(36,467)(9,287) Increase(decreaseinaccruedliabilities4,742(509)4,233 Increase(decrease)inclaims44,94544,945 Increase(decrease)incompensatedabsences4,1324,132 NetCashProvided(Used)byOperatingActivities $2,307,650$(1,763,171)$459,569$1,004,048 119CityofLaPorte2021ACFR DRAFT 03.04.2022 STATISTICALSECTION 120CityofLaPorte2021ACFR DRAFT 03.04.2022 STATISTICALSECTION ThispartoftheCity'sannualcomprehensivefinancialreportpresentsdetailedinformationasacontextforunderstanding whattheinformationinthefinancialstatements,notedisclosuresandrequiredsupplementaryinformationsaysaboutthe City'soverallfinancialhealth. ContentsPage FinancialTrends nderstandhowtheCity'sfinancial Theseschedulescontaintrendinformationtohelpthereaderu performanceandwellbeinghavechangedovertime.122 RevenueCapacity TheseschedulescontaininformationtohelpthereaderassesstheCity'smostsignificantlocalrevenue source,thepropertytax.133 DebtCapacity TheseschedulespresentinformationtohelpthereaderassesstheaffordabilityoftheCity'scurrent levelsofoutstandingdebtandtheCity'sabilitytoissueadditionaldebtinthefuture.139 DemographicandEconomicInformation Theseschedulesofferdemographicandeconomicindicatorstohelpthereaderunderstandthe environmentwithinwhichtheCity'sfinancialactivitiestakeplace.144 OperatingInformation Theseschedulescontainserviceandinfrastructuredatatohelpthereaderunderstandhowthe informationintheCity'sfinancialreportrelatestotheservicestheCityprovidesandtheactivitiesit performs.146 Sources Unlessotherwisenoted,theinformationintheseschedulesisderivedfromtheannualcomprehensivefinancial reportfortherelevantyear. 121CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table1 NETPOSITIONBYCOMPONENTPage1of2 LastTenFiscalYears (accrualbasisofaccounting) 20122013201420152016 GovernmentalActivities Investmentincapitalassets $46,813,655$49,304,074$54,506,024$43,582,704$48,367,017 Restricted 8,728,7298,902,10311,088,23314,507,64317,854,935 Unrestricted 21,621,24022,529,80118,634,88121,693,06423,690,222 TotalGovernmentalActivities NetPosition $77,163,624$80,735,978$84,229,138$79,783,411$89,912,174 BusinesstypeActivities Investmentincapitalassets $37,566,663$36,347,233$35,872,947$34,807,773$34,291,664 Restricted 559,3092,096,1781,930,3691,250,850846,400 Unrestricted 3,790,6692,300,9912,669,2584,110,8775,344,130 TotalBusinesstypeActivities NetPosition $41,916,641$40,744,402$40,472,574$40,169,500$40,482,194 PrimaryGovernment Netinvestmentincapitalassets$84,380,319$85,651,307$90,378,971$78,390,477$82,658,681 Restricted 9,288,03810,998,28113,018,60215,758,49318,701,335 Unrestricted 25,411,90924,830,79321,304,13925,803,94129,034,352 TotalPrimaryGovernment NetPosition $119,080,266$121,480,381$124,701,712$119,952,911$130,394,368 122CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table1 NETPOSITIONBYCOMPONENTPage2of2 LastTenFiscalYears (accrualbasisofaccounting) 20172018201920202021 GovernmentalActivities Investmentincapitalassets $44,468,918$43,421,145$53,011,914$52,403,864$55,776,266 Restricted 24,105,85231,025,08430,280,87739,484,82453,286,218 Unrestricted 26,907,4451,505,1949,893,73516,224,22016,944,578 TotalGovernmentalActivities NetPosition $95,482,215$75,951,423$93,186,526$108,112,908$126,007,062 BusinesstypeActivities Investmentincapitalassets $33,782,624$32,199,968$31,735,493$32,582,335$32,079,057 Restricted 520,000 Unrestricted 7,661,0808,011,0168,371,7076,709,7817,694,516 TotalBusinesstypeActivities NetPosition $41,963,704$40,210,984$40,107,200$39,292,116$39,773,573 PrimaryGovernment Netinvestmentincapitalassets$78,251,542$75,621,112$84,747,407$84,986,199$87,855,323 Restricted 24,625,85231,025,08330,280,87739,484,82453,286,218 Unrestricted 34,568,5259,516,21018,265,44222,934,00124,639,094 TotalPrimaryGovernment NetPosition $137,445,919$116,162,405$133,293,726$147,405,024$165,780,635 123CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table2 CHANGESINNETPOSITIONPage1of4 LastTenFiscalYears (accrualbasisofaccounting) 20122013201420152016 Expenses GovernmentalActivities Generalgovernment$14,091,176$13,854,988$14,115,210$12,962,387$14,255,413 Publicsafety17,374,56617,765,38820,436,45019,081,62221,114,939 Publicworks3,784,0474,451,4556,259,7644,088,1464,422,464 Health,welfareandsanitation2,423,8982,327,9822,519,2985,748,2066,059,896 Cultureandrecreation6,361,3135,721,6115,854,5463,497,1743,439,722 Interestonlongtermdebt1,268,1121,384,8751,403,6281,585,3541,782,508 TotalGovernmentalActivitiesExpenses 45,303,11245,506,29950,588,89646,962,88951,074,942 BusinesstypeActivities Waterservices7,691,0888,207,2047,731,7765,064,2874,985,902 Sewerservices2,932,0572,598,6492,802,0134,347,3094,374,763 Airport182,700210,323229,603230,006210,590 TotalBusinesstypeActivitiesExpenses 10,805,84511,016,17610,763,3929,641,6029,571,255 TotalPrimaryGovernmentExpenses$56,108,957$56,522,475$61,352,288$56,604,491$60,646,197 ProgramRevenues GovernmentalActivities Chargesforservices: Generalgovernment$843,898$645,517$825,532$3,981,230$3,035,577 Publicsafety3,127,5953,313,7353,208,2561,664,7821,913,289 Publicworks267,534265,962269,830336,917343,682 Health,welfareandsanitation2,197,4912,204,1532,223,2342,255,0952,244,061 Cultureandrecreation1,384,8101,444,0021,509,4122,057,2531,614,085 Operatinggrantsandcontributions: Generalgovernment239,6542,8412,982 Publicsafety431,076433,367545,738307,016436,375 Publicworks766,12720,168258,11923,14317,731 Health,welfareandsanitation Cultureandrecreation78,348393,0351,207,9581,205756 Capitalgrantsandcontributions: Generalgovernment Publicworks6444702923,030,480607,357 TotalGovernmentalActivitiesProgramRevenues 9,337,1778,723,25010,051,35313,657,12110,212,913 BusinesstypeActivities Chargesforservices: Waterservices6,054,6835,693,5985,406,5454,308,5784,795,719 Sewerservices3,600,9793,420,3703,422,6273,587,8253,652,071 Airport28,34056,24656,15759,18162,849 Capitalgrantsandcontributions858,4311,398,2911,125,777787,285534,168 TotalBusinesstypeActivitiesProgramRevenues 10,542,43310,568,50510,011,1068,742,8699,044,807 TotalPrimaryGovernmentProgramRevenues $19,879,610$19,291,755$20,062,459$22,399,990$19,257,720 Net(Expense)/Revenue Governmentalactivities$(35,965,935)$(36,783,049)$(40,537,543)$(33,305,768)$(40,862,029) Businesstypeactivities(263,412)(447,671)(752,286)(898,733)(526,448) TotalPrimaryGovernmentNetExpense$(36,229,347)$(37,230,720)$(41,289,829)$(34,204,501)$(41,388,477) 124CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table2 CHANGESINNETPOSITIONPage2of4 LastTenFiscalYears (accrualbasisofaccounting) 20172018201920202021 Expenses GovernmentalActivities Generalgovernment$15,735,976$15,832,003$15,519,147$16,563,557$16,681,031 Publicsafety21,446,42121,673,18821,356,77922,524,84323,696,244 Publicworks4,930,7219,796,3267,818,6967,341,6088,785,080 Health,welfareandsanitation3,899,6784,685,7954,016,4654,861,6804,477,844 Cultureandrecreation6,177,5546,513,7946,932,5695,884,7935,543,121 Interestonlongtermdebt2,506,0041,059,007900,2873,219,632843,919 TotalGovernmentalActivitiesExpenses 54,696,35459,560,11356,543,94360,396,11360,027,239 BusinesstypeActivities Waterservices6,269,3568,788,1137,985,2338,675,7139,054,693 Sewerservices4,267,9011,926,1331,769,8302,847,6401,952,186 Airport210,324133,093157,008213,024255,898 TotalBusinesstypeActivitiesExpenses 10,747,58110,847,3399,912,07111,736,37711,262,777 TotalPrimaryGovernmentExpenses$65,443,935$70,407,452$66,456,014$72,132,490$71,290,016 ProgramRevenues GovernmentalActivities Chargesforservices: Generalgovernment$2,538,477$3,397,779$4,067,810$3,061,645$2,513,535 Publicsafety1,553,8721,125,3452,217,6551,613,1352,088,650 Publicworks354,096267,358278,509292,491286,512 Health,welfareandsanitation2,401,7832,231,7272,247,8692,456,9672,412,577 Cultureandrecreation1,584,8631,547,7861,676,3811,713,1041,781,798 Operatinggrantsandcontributions: Generalgovernment Publicsafety1,119,223352,8861,286,4982,135,502507,709 Publicworks123,4352,55915,43512,67845,024 Health,welfareandsanitation Cultureandrecreation7516501,4431,1841,108 Capitalgrantsandcontributions: Generalgovernment57,474 Publicworks582,045537,786596,878109,3727,700 TotalGovernmentalActivitiesProgramRevenues 10,258,5459,521,35012,388,47811,396,0789,644,613 BusinesstypeActivities Chargesforservices: Waterservices5,982,3508,726,7108,389,7738,724,3208,700,852 Sewerservices3,551,7281,320,8161,109,4951,256,4632,071,408 Airport60,65161,87958,97146,87463,732 Capitalgrantsandcontributions126,359126,359262,977125,590 TotalBusinesstypeActivitiesProgramRevenues 9,721,08810,235,7649,821,21610,027,65710,961,582 TotalPrimaryGovernmentProgramRevenues $19,979,633$19,757,114$22,209,694$21,423,735$20,606,195 Net(Expense)/Revenue Governmentalactivities$(44,437,809)$(50,038,763)$(44,155,465)$(49,000,035)$(50,382,626) Businesstypeactivities(1,026,493)(611,575)(90,855)(1,708,720)(301,195) TotalPrimaryGovernmentNetExpense$(45,464,302)$(50,650,338)$(44,246,320)$(50,708,755)$(50,683,821) 125CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table2 CHANGESINNETPOSITIONPage3of4 LastTenFiscalYears (accrualbasisofaccounting) 20122013201420152016 GeneralRevenuesandOtherChangesin NetPosition GovernmentalActivities Propertytaxes$17,251,131$17,782,090$19,925,095$20,765,774$24,098,174 Industrialpayments10,471,44411,107,84811,554,94912,269,15214,377,602 Salesandusetaxes8,267,1628,717,61310,104,50010,743,8629,862,705 Franchisetaxes2,311,9442,184,0202,252,4042,411,8272,300,464 Investmentearnings142,95184,170106,024204,346380,268 Otherrevenues167,922432,405458,770164,004766,683 Gain/(Loss)nosaleofcapitalassets1,939,699 Transfers334,029720,356(371,039)(1,504,570)(795,104) TotalGovernmentalActivities 40,886,28241,028,50244,030,70345,054,39550,990,792 BusinesstypeActivities Investmentearnings12,3098,4688,62425,44044,038 Otherrevenues16,38736,378100,795 Miscellaneous Transfers(334,029)(720,356)371,0391,504,570795,104 TotalBusinesstypeActivities(305,333)(675,510)480,4581,530,010839,142 lPrimaryGovernment$40,580,949$40,352,992$44,511,161$46,584,405$51,829,934 Tota ChangeinNetPosition Governmentalactivities$4,920,347$4,245,453$3,493,160$11,748,627$10,128,763 Businesstypeactivities(568,745)(1,123,180)(271,828)631,277312,694 TotalPrimaryGovernment$4,351,602$3,122,273$3,221,331$12,379,904$10,441,457 126CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table2 CHANGESINNETPOSITIONPage4of4 LastTenFiscalYears (accrualbasisofaccounting) 20172018201920202021 GeneralRevenuesandOtherChangesin NetPosition GovernmentalActivities Propertytaxes$23,857,654$25,413,898$26,484,216$29,727,747$32,844,484 Industrialpayments14,270,89914,147,72814,899,62416,439,51018,188,121 Salesandusetaxes10,859,21512,544,80313,944,02713,828,98314,281,695 Franchisetaxes2,252,2532,621,0353,035,8443,050,8532,996,774 Investmentearnings563,8681,228,7592,414,5931,158,85589,291 Otherrevenues601,136251,508251,400487,092649,354 Gain/(Loss)nosaleofcapitalassets Transfers(2,397,175)(1,922,963)360,864(766,623)(772,939) TotalGovernmentalActivities 50,007,85054,284,76861,390,56863,926,41768,276,780 BusinesstypeActivities Investmentearnings110,828152,557360,285147,8979,713 Otherrevenues Miscellaneous(12,350)(20,884) Transfers2,397,1751,922,963(360,864)766,623772,939 TotalBusinesstypeActivities 2,508,0032,075,520(12,929)893,636782,652 TotalPrimaryGovernment$52,515,853$56,360,288$61,377,639$64,820,053$69,059,432 ChangeinNetPosition Governmentalactivities5,570,041$$4,246,005$17,235,103$14,926,382$17,894,154 Businesstypeactivities1,481,5101,463,945(103,784)(815,084)481,457 TotalPrimaryGovernment$7,051,551$5,709,950$17,131,319$14,111,298$18,375,611 127CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table3 FUNDBALANCESOFGOVERNMENTALFUNDSPage1of2 LastTenFiscalYears (modifiedaccrualbasisofaccounting) 20122013201420152016 GeneralFund Nonspendable$94,401$125,190$102,775$88,954$89,165 Committed3,500,0008,500,0007,000,0006,000,000 Assigned30,003103,69078,182257,1474,439,879 Unassigned23,840,15323,856,08721,294,38325,216,54729,385,827 TotalGeneralFund$23,964,557$27,584,967$29,975,340$32,562,648$39,914,871 AllOtherGovernmentalFunds Restricted$12,572,942$12,193,956$14,177,078$24,421,383$24,860,811 Committed6,553,4175,585,6282,961,8491,916,6082,977,676 Unassigned(30,832)(790) TotalAllOtherGovernmental Funds $19,095,527$17,779,584$17,138,137$26,337,991$27,838,487 128CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table3 FUNDBALANCESOFGOVERNMENTALFUNDSPage2of2 LastTenFiscalYears (modifiedaccrualbasisofaccounting) 20172018201920202021 GeneralFund Nonspendable$102,058$122,784$163,083$158,899$166,001 Committed2,000,000 Assigned297,359420,854134,391365,294240,255 Unassigned40,500,14746,763,43557,312,78363,999,73464,406,346 TotalGeneralFund$42,899,564$47,307,073$57,610,257$64,523,927$64,812,602 AllOtherGovernmentalFunds Restricted$34,573,658$41,275,328$44,362,333$53,408,210$80,055,702 Committed4,555,870 Unassigned TotalAllOtherGovernmental Funds $39,129,528$41,275,328$44,362,333$53,408,210$80,055,702 129CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table4 CHANGESINFUNDBALANCESOFGOVERNMENTALFUNDSPage1of2 LastTenFiscalYears (accrualbasisofaccounting) 20122013201420152016 Revenues Taxes$38,352,720$39,834,904$43,837,240$46,155,069$50,376,219 Licensesandpermits465,052368,130497,7561,346,552596,451 Finesandforfeitures1,758,1011,886,7631,790,8491,953,6981,996,073 Chargesforservices5,957,3896,008,8456,305,1276,994,7726,555,228 Intergovernmental1,239,434568,0521,572,3603,195,2381,024,097 Interest128,93976,02796,409184,029349,551 Miscellaneous36,354425,845261,204398,872728,390 TotalRevenues 47,937,98949,168,56654,360,94560,228,23061,626,009 Expenditures Generalgovernment10,461,87711,043,43813,828,17911,953,16611,706,047 Publicsafety15,751,73116,321,60817,428,04017,698,81818,323,687 Publicworks3,438,6293,247,4043,432,5832,916,1133,028,953 Healthandsanitation2,225,7682,244,3412,334,1842,457,5652,644,295 Cultureandrecreation5,260,5915,226,8865,440,7245,727,7005,848,613 Debtservice: Principal2,170,0002,365,0002,640,0004,625,5824,281,085 Interest1,519,7691,385,2041,217,8831,589,6441,451,075 Bondissuancecost150,897153,884 C apitaloutlay8,583,2495,499,5085,446,2876,331,8934,439,319 TotalExpenditures 49,562,51147,333,38951,921,76453,300,48151,723,074 (Deficiency)ofRevenues (Under)Expenditures(1,624,522)1,835,1772,439,1816,927,7499,902,935 OtherFinancingSources(Uses) Generalobligationbondsissued Refundingbondsissued9,435,0009,300,000 Certificateobligationbondsissued7,770,000 Premiumonrefundingbondsissued364,013608,166 Premiumoncertificateobligations365,502 Paymenttorefundingbondescrowagent(9,638,626)(9,749,587) Transfersin4,248,1402,710,6773,883,9203,911,9903,069,474 Transfersout(5,011,924)(2,643,894)(3,629,974)(4,761,324)(6,556,417) Saleofcapitalassets6,822,1261,941,346215,342500 Insurancerecoveries210,854 TotalOtherFinancingSources(Uses)6,058,3422,168,516469,288(690,255)4,859,413 NetChangeinFundBalances$4,433,820$4,003,693$2,908,469$6,237,494$14,762,348 Debtserviceasapercentageofnoncapital expenditures 9.0%9.0%8.3%13.2%12.1% 130CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table4 CHANGESINFUNDBALANCESOFGOVERNMENTALFUNDSPage2of2 LastTenFiscalYears (accrualbasisofaccounting) 20172018201920202021 Revenues Taxes$51,574,722$54,591,769$58,567,086$62,839,456$68,489,849 Licensesandpermits535,741668,8081,344,447891,332650,402 Finesandforfeitures1,965,2492,092,4193,269,7111,731,6741,737,598 Chargesforservices6,069,2485,953,5816,062,9016,555,8596,364,686 Intergovernmental1,077,893893,0061,129,6542,235,492543,195 Interest531,3691,157,4432,215,1421,074,74080,763 Miscellaneous517,828298,792451,362673,717880,640 TotalRevenues 62,272,05065,655,81873,040,30376,002,27078,747,133 Expenditures Generalgovernment13,301,71814,486,95011,641,78012,614,43714,149,508 Publicsafety18,873,27618,377,80419,892,52320,675,00622,627,638 Publicworks4,161,3994,429,3785,012,2655,748,4894,893,735 Healthandsanitation2,730,3082,871,1142,977,5613,145,3833,264,033 Cultureandrecreation5,998,4526,332,0617,220,1446,714,4685,900,980 Debtservice: Principal4,178,6293,370,0006,744,1685,698,4873,947,636 Interest1,385,1221,156,9231,180,817970,079812,251 Bondissuancecost164,693 Capitaloutlay3,840,2073,428,8342,895,2382,248,5024,895,740 TotalExpenditures 54,469,11154,453,06457,564,49657,814,85160,656,214 (Deficiency)ofRevenues (Under)Expenditures 7,802,93911,202,75415,475,80718,187,41918,090,919 OtherFinancingSources(Uses) Generalobligationbondsissued10,635,000 Refundingbondsissued3,165,0002,705,000 Certificateobligationbondsissued11,545,000 Premiumonrefundingbondsissued403,795352,246 Premiumoncertificateobligations2,119,693 Paymenttorefundingbondescrowagent(3,490,716)(2,982,662) Transfersin2,851,1243,684,9955,166,4768,107,0908,924,500 Transfersout(3,979,419)(7,849,825)(7,252,094)(10,474,693)(13,743,945) Saleofcapitalassets2,62565,147 Insurancerecoveries TotalOtherFinancingSources(Uses)(1,050,216)6,472,795(2,085,618)(2,227,872)8,845,248 NetChangeinFundBalances$6,752,723$17,675,549$13,390,189$15,959,547$26,936,167 Debtserviceasapercentageofnoncapital expenditures 10.8%8.6%14.9%12.4%8.5% 131CityofLaPorte2021ACFR DRAFT 03.04.2022 132CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table5 ASSESSEDVALUEANDESTIMATEDVALUE OFTAXABLEPROPERTY LastTenFiscalYears AssessedValue FiscalYearLessOtherTotalTaxableTotalEstimatedasaPercentof EndedRealPersonalExemptions&AssessedDirectActualTaxableActualTaxable June30PropertyPropertyAbatementsValueTaxRateValueValue 2012$2,079,843,021$720,515,678$535,441,621$2,264,917,0780.71000$2,264,917,078100% 20132,080,199,179797,558,553536,721,2842,341,036,4480.710002,341,036,448100% 20142,176,582,621986,494,475590,232,2312,572,844,8650.710002,572,844,865100% 20152,626,580,963745,093,978617,133,7622,754,541,1790.710002,754,541,179100% 20162,692,041,032978,850,207629,133,2653,041,757,9740.710003,041,757,974100% 20173,025,879,671880,297,401751,959,4553,154,217,6170.710003,154,217,617100% 20183,270,392,733830,253,210814,706,6433,285,939,3000.710003,285,939,300100% 20193,376,299,841824,946,153800,377,8753,400,868,1190.710003,400,868,119100% 20203,734,338,555986,876,974885,861,5783,835,353,9510.710003,835,353,951100% 20213,969,107,6381,017,329,766904,079,4364,082,357,9680.710004,082,357,968100% Source HarrisCountyCertifiedTaxRollsandCorrections. 133CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table6 PROPERTYTAXRATESΑDIRECTANDOVERLAPPINGGOVERNMENTSPage1of2 LastTenFiscalYears 20122013201420152016 CityofLaPortebyfund: General0.605000.605000.640000.614000.60500 Debtservice0.105000.105000.070000.096000.10500 TotalDirectRates 0.710000.710000.710000.710000.71000 HarrisCountyFloodControlDistrict0.028090.028270.027360.027330.02829 HarrisCounty0.400210.414550.417310.419230.41656 PortofHoustonAuthority0.019520.017160.015310.013420.01334 HarrisCountyBoardofEducation0.006620.006360.006000.005400.00520 HospitalDistrict0.182160.170000.170000.170000.17179 LaPorteISD1.330001.330001.330001.450001.42000 SanJacintoJr.CollegeDistrict0.185600.185600.185600.175780.18238 TotalDirectandOverlappingRates 2.862202.861942.861582.971162.94756 Taxratesper$100ofassessedvaluation Source:HarrisCountyAppraisalDistrict 134CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table6 PROPERTYTAXRATESΑDIRECTANDOVERLAPPINGGOVERNMENTSPage2of2 LastTenFiscalYears 20172018201920202021 CityofLaPortebyfund: General0.605000.605000.605000.605000.60500 Debtservice0.105000.105000.105000.105000.10500 TotalDirectRates 0.710000.710000.710000.710000.71000 HarrisCountyFloodControlDistrict0.028310.028780.027920.031420.03349 HarrisCounty0.418010.418580.407130.391160.37693 PortofHoustonAuthority0.012560.011550.010740.009910.00872 HarrisCountyBoardofEducation0.005200.005190.005000.004990.00499 HospitalDistrict0.171100.171080.165910.166710.16221 LaPorteISD1.380001.380001.280001.269701.25650 SanJacintoJr.CollegeDistrict0.183340.179330.178170.169360.16797 TotalDirectandOverlappingRates 2.908522.904512.784872.753252.72081 Taxratesper$100ofassessedvaluation Source:HarrisCountyAppraisalDistrict 135CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table7 PRINCIPALTAXPAYERS CurrentandNineYearsAgo 20212012 %of%of TaxableTotalTaxableTaxableTotalTaxable AssessedAssessedAssessedAssessed TaxpayerValueRankValueValueRankValue 2021 LibertyProperty208,276,457$15.10% SreitUnderwoodIndustrialParkLLCSreitUnderwood182,973,70224.48% MRCGlobal(USA)Inc90,960,18832.23% DowChemical59,817,52741.47% EquistarChemicalsLP48,153,38351.18% OxyVinylsLP40,697,85961.00% INEOSUSALLC39,250,78070.96% CenterpointEnergyInc34,134,91280.84% DomainatMorgansLandingLP29,585,22690.72% NoltexLLC28,441,852100.70% 2012 ConcocoPhillipsCo.$54,419,66812.40% WilsonSupply51,015,54522.25% OxyVinylsLP50,833,30932.24% GraniteUnderwoodDistCtrLP46,538,05942.05% EquistarChemicalsLP45,773,03652.02% IneosUSALLC37,999,78061.68% UnderwoodDistributionCtr.31,439,65971.39% PortCrossingLandLP22,252,05780.98% DowChemical22,134,86990.98% TotalPetrochemicals21,932,946100.97% Subtotal762,291,88618.67%384,338,92816.97% OtherTaxpayers3,320,066,08281.33%1,880,578,15083.03% Total$4,082,357,968100.00%2,264,917,078$100.00% 136CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table8 PROPERTYTAXLEVIESANDCOLLECTIONS LastTenFiscalYears Collectedwithinthe FiscalYearTaxesleviedFiscalYearoftheLevyCollectionsTotalCollectionstoDate Endedfor%ofinSubsequent%of September30FiscalYearAmountLevyYearsAmountLevy 201216,080,911$$15,860,66498.6%226,294$$16,086,958100.0% 201316,621,36116,518,20799.4%172,98116,691,188100.4% 201418,267,20118,090,45699.0%238,51918,328,975100.3% 201519,514,40219,304,48698.9%56,36119,360,84799.2% 201621,596,46321,299,84898.6%207,35521,507,20399.6% 201722,269,06322,109,02999.3%(66,065)22,042,96499.0% 201823,125,07222,798,48898.6%(65,695)22,732,79398.3% 201923,814,36723,722,01299.6%(95,358)23,626,65499.2% 202026,752,70026,452,70898.9%(61,396)26,391,31298.6% 202128,375,54028,254,32399.6%28,254,32399.6% *Showsanegativeamountduetotherefundoftaxes. 137CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table9 RATIOSOFOUTSTANDINGDEBTBYTYPE LastTenFiscalYears GovernmentalActivitiesBusinesstypeActivities FiscalYearGeneralCertificatesTotal%of EndedObligationofLimitedRevenueOther*PrimaryPersonalPer September30Bonds*Obligation*TaxBondsBondsObligationsGovernmentIncomeCapita 201217,050$$20,150$1,620$$3,945$42,7650.005%1,212$ 201316,87518,9051,3503,11740,2470.004%1,165 201423,72610,8455402,20837,3190.004%1,072 201521,22017,23093039,3800.004%891 201622,81512,33532035,4700.003%991 201721,09011,21032,3000.003%1,086 201818,89520,67039,5650.004%1,119 201917,17919,71936,8980.003%1,011 202017,60215,42333,0250.003%1,011 202114,75428,13542,8890.004%1,265 Note:DetailsregardingtheCity'soutstandingdebtcanbefoundinthenotetothefinancialstatements. SeeDemographicandEconomicStatisticsforpersonalincomeandpopulationdata. *Includespremiumonbonds. 138CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table10 RATIOSOFNETGENERALBONDEDDEBTTOTAXABLEVALUE GENERALBONDEDDEBTPERCAPITA,ANDTAXABLEVALUEOFALLPROPERTY LastTenFiscalYears Ratioof FiscalYearGeneralLessBondedDebtPercentageof EndedTaxObligationCertificatesofDebtServiceNetBondedtoAssessedPersonal September30YearBondsObligationFundDebtValueIncome(2)PerCapita(2) 2012201117,050$$20,150$3,091$34,1091.5%0.004%$967 2013201216,87518,9052,49033,2901.4%0.004%963 2014201323,72610,8452,76931,8021.2%0.003%914 2015201421,22017,2303,16135,2891.3%0.004%1,006 2016201522,81512,3353,54131,6091.0%0.003%899 2017201621,09011,2103,88328,4170.9%0.003%810 2018201718,89520,6704,39835,1671.1%0.003%994 2019201817,17919,7194,49232,4061.0%0.003%915 2020201917,60215,4235,01428,0110.7%0.003%801 2021202014,75428,1355,02737,8620.9%0.003%1,078 Note:DetailsregardingtheCity'soutstandingdebtcanbefoundinthenotestothefinancialstatements. (2)Populationdatacanbefoundinthedemographicandeconomicstatisticstable. 139CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table11 DIRECTANDOVERLAPPINGGOVERNMENTALACTIVITIESDEBT AsofSeptember30,2021 Estimated EstimatedShareof DebtPercentageOverlapping GovernmentalUnitOutstandingApplicableDebt Debtrepaidwithpropertytaxes HarrisCounty1,723,192,125$0.71%12,234,664$ HarrisCountyDepartmentofEducation20,185,0000.71%143,314 HarrisCountyFloodControlDistrict590,725,0000.71%4,194,148 HarrisCountyTollRoad0.71% HarrisCountyHospitalDistrict81,540,0000.71%578,934 LaPorteI.S.D.315,810,00041.45%130,903,245 PorteofHoustonAuthority492,439,3970.71%3,496,320 SanJacintoJr.CollegeDistrict529,434,5946.27%33,195,549 TotalNetOverlappingDebt$3,753,326,116184,746,173 CityofLaPorteDirectDebt*$42,889,53842,889,538 TotalDirectandOverlappingDebt$227,635,711 *Approximately$19,668,027ofthecity'soutstandingdebtisselfsupporting. Source:TexasMunicipalReports Percentagearebasedontotalpropertyvalues. Source:TexasMunicipalReports 140CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table12 DEMOGRAPHICANDECONOMICSTATISTICS LastTenFiscalYears FiscalYearPerCapita EndedPersonalPersonalMedianSchoolUnemployment September30Population(1)Income(2)Income(2)Age(3)Enrollment(4)Rate(5) 201235,280$878,708,768$25,952347,7396.3% 36 201334,553917,811,53826,8947,7296.3% 36 201434,813937,182,97827,1867,6345.0% 201535,0741,001,483,95828,823377,6484.6% 37 201635,1481,052,095,09430,1277,7535.8% 201735,0861,052,095,09430,127377,7135.8% 37 201835,3711,052,095,09430,1277,5754.6% 38 201935,4231,098,608,92231,0147,3404.1% 202034,9761,103,667,68031,555387,19910.6% 38 202135,1241,156,563,07232,9286,9806.4% N/Ainformationnotavailable. Datasources: (1)EstimatedpopulationprovidedbyUSCensusBureau. (2)Personalincomeandpercapitapersonalincomeiscurrentlyunavailable. (3)Medianagedatapriorto2010isnotavailable,mediumageprovidedby2010Census. dependentSchoolDistrict (4)SchoolenrollmentprovidedbyLaPorteIn (5)UnemploymentratesprovidedfromthebureauofLaborStatistics 141CityofLaPorte2021ACFR DRAFT 03.04.2022 142CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table13 PRINCIPALEMPLOYERS CurrentandNineYearsAgo 2021 2012 PercentagePercentage ofTotalCityofTotalCity EmployerEmployeesEmploymentEmployerEmployeesEmployment LaPorteISD1,0695.87%TotalPetrochemicalsUSA,Inc.1,5004.74% DupontChemical5452.99%LaPorteIndependentSchoolDis10753.39% ForceCorporation4532.49%InternationalPlantServicesLLC10003.16% JVPiping4402.41%RockwoodServiceCorporation7002.21% TotalPetrochemicals&Rfining4092.24%LongviewInspection,Inc.6642.10% CityofLaPorte3982.18%JP&DDigitalSatelliteSystems,In6001.89% IneosOlefins&PolymersUSA3852.11%E.I.DuPontDeMenoursandCo5001.58% BrandSafway3822.10%KatoenNatieUSA,Inc.5001.58% KatoenNatieHoustonUSA3501.92%SulzerTurboSystemsIntl4001.26% CCCGroupInc3001.65%CityofLaPorte3881.23% Total4,73125.96%Total7,32723.14% Source:CenterPointEnergy Note:ThislistincludescompanieswithintheCitylimitsofLaPorteandwithintheindustrialdistricts. 143CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table14 FULLTIMEEQUIVALENTCITYGOVERNMENTALEMPLOYEESBYFUNCTIONPage1of2 LastTenFiscalYears FulltimeEquivalentEmployeesasofSeptember30 Function20122013201420152016 Generalgovernment9088888989 Publicsafety151152154154154 Publicworks3230303030 Healthandsanitation2423232322 Cultureandrecreation4642424244 Waterservices2525242525 Sewerservices2020202020 Total 388380381383384 Source:CityofLaPorteHumanResourceDepartment 144CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table14 FULLTIMEEQUIVALENTCITYGOVERNMENTALEMPLOYEESBYFUNCTIONPage2of2 LastTenFiscalYears FulltimeEquivalentEmployeesasofSeptember30 Function20172018201920202021 Generalgovernment8990899092 Publicsafety154155155156161 Publicworks3335353441 Healthandsanitation2323232323 Cultureandrecreation4242424236 Waterservices2525252525 Sewerservices2020202020 Total 386390389390398 Source:CityofLaPorteHumanResourceDepartment 145CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table15 OPERATINGINDICATORSBYFUNCTION/PROGRAMPage1of2 LastTenFiscalYears Function20122013201420152016 Police Physicalarrests2,3112,2052,0322,1522,399 Ticketsprocessed13,22113,86114,15114,31613,231 Fire Numberofcallsanswered1,1951,2191,2621,3781,356 Inspections8129501,0203831,025 Highwaysandstreets Streetresurfacing(linearfeet)69,58013,52011,18311,17222,172 Potholesrepaired1,173271165342236 Sanitation Cubicyardsofgarbagecollected42,58930,62554,81250,94526,458 Cubicyardsoftrashcollected54,64132,13740,70131,51840,569 Cultureandrecreation Fitnesscenteradmissions64,27964,58790,76567,794102,778 Water Numberofwatermeters12,12912,23412,32112,43112,523 Averagedailyconsumption4.343.83.93.8 (millionsofgallons)311379411200217 Watermainbreaks Wastewater Averagedailysewagetreatment3.32.72.63.83.8 (thousandsofgallons) GolfCourse Numberofpaidroundsplayed34,03832,25732,74129,96526,794 Source VariousCitydepartments. 146CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table15 OPERATINGINDICATORSBYFUNCTION/PROGRAMPage2of2 LastTenFiscalYears Function20172018201920202021 Police Physicalarrests1,8261,9682,0971,3971,364 Ticketsprocessed11,90015,60516,69510,41211,685 Fire Numberofcallsanswered1,5321,5361,6361,5462,024 Inspections8525501,1028501,226 Highwaysandstreets Streetresurfacing(linearfeet)18,60213,01520,3329,70014,050 Potholesrepaired118231134134135 Sanitation Cubicyardsofgarbagecollected48,71656,40655,92458,25355,330 Cubicyardsoftrashcollected44,73336,17437,61145,46253,187 Cultureandrecreation Fitnesscenteradmissions96,01190,58387,80453,03058,778 Water Numberofwatermeters12,59112,68212,87012,72914,000 Averagedailyconsumption3.73.83.5644.13.7 (millionsofgallons)1992201737774 Watermainbreaks Wastewater Averagedailysewagetreatment3.53.94.3984.53.6 (thousandsofgallons) GolfCourse Numberofpaidroundsplayed26,84026,00625,07533,91837,065 Source VariousCitydepartments. 147CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table16 CAPITALASSETSSTATISTICSBYFUNCTION/PROGRAMPage1of2 LastTenFiscalYears Function2012201320142015 Publicsafety Policestation1111 Policeofficers75747474 Reserveofficers2262 Firestations4444 Sanitation Collectiontrucks14121212 Highwaysandstreets Streets(miles)126125297297 Streetlights2,4152,4152,4152,415 Trafficsignals5666 Cultureandrecreation Parksacreage356188188188 Parksacreage21222222 Swimmingpools5555 Recreationcenters4332 Seniorcenter1111 Waterandsewer Watermains(miles)181182183184 Firehydrants1,1861,1991,2261,256 Sanitarysewers(miles)192192192192 Stormsewers(miles)9760112112 Source VariousCitydepartments. 148CityofLaPorte2021ACFR DRAFT 03.04.2022 CITYOFLAPORTE,TEXAS Table16 CAPITALASSETSSTATISTICSBYFUNCTION/PROGRAMPage2of2 LastTenFiscalYears Function20172018201920202021 Publicsafety Policestation11111 Policeofficers7578797982 Reserveofficers32411 Firestations44444 Sanitation Collectiontrucks1716161414 Highwaysandstreets Streets(miles)273273273274279 Streetlights2,4152,4152,9052,8843,004 Trafficsignals77777 Cultureandrecreation Parksacreage188188188188207 Parksacreage2222222324 Swimmingpools55555 Recreationcenters22222 Seniorcenter11111 Waterandsewer Watermains(miles)187187189192200 Firehydrants1,2761,2911,3141,3491,416 Sanitarysewers(miles)194194194195199 Stormsewers(miles)115116116118120 Source VariousCitydepartments. 149CityofLaPorte2021ACFR DRAFT 03.04.2022 150CityofLaPorte2021ACFR DRAFT 03.04.2022 REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested:March14, 2022 2019 CIP015 Requested By:Source of Funds: Carl Holley, Chief Department: Fire FD0002 Account Number: $110,118.00 Amount Budgeted: ReportResolutionOrdinance $110,118.00 Amount Requested: Exhibits: Vehicle Up-fit Equipment Quotes Budgeted Item:YesNo SUMMARY& RECOMMENDATIONS During the FY 2019-2020CIPprocess, the La Porte FireDepartment Staff coordinated approval to expand our training and prevention operations at our Fire Training Center. Along with a new burn building, the Fire Department requested mobile propane fire props which allows for additional realistic training at our fire field and at other locations. The mobile propane fire props firefightersfor some of the more common challenges seenon a fire scene today or in the future. The mobile fire training prop system comeswith a car fire simulator, a gas leak simulatorand a fire pan, all of which can be moved on the included trailer. A certified KFT technician will train fire department staff on proper operation and maintenance. We asked for mobile props to be able to move them anywhere on the fire field or to be able to take the props to public relations events throughout the city. The mobile fire training props will be used in conjunction with public relationsand events like the annual Safety Fair and FirePrevention week at each of the elementary schools. Staffhas chosen the KFT Fire Trainer 0-100 to be purchased through Municipal Emergency Services (MES). Fire Department Staff conducted extensive research on liquid propane gas fire training props and have not found another mobile prop system that meets the expectations for our training at the fire field or is adequate to take to public relations events. Department Staff believe the KFT Fire Trainer System to be the only such mobile live fire training system in production. These specifications through Sourcewell Contract #032620 were submitted and approved byPurchasing.Therefore, we would like to move forward with the purchase of the KFT Fire Training System. ACTION REQUIRED BY CITY COUNCIL Approve the CIP purchase of the KFT Fire Training portable props, trailer and training. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date Rvpuf Ebuf 1302103133 Rvpuf!$ RU2663:53 Fyqjsft 1303603133 Tbmft!Sfq Qpxfmm-!Spobme!N NFT!.!Ufybt 711!Dfouvsz!Qmb{b!Es/! QP!$ Kbsfe!Ifotpo Tvjuf!D.271! 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REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested:March 14, 2022 032 Grant Fund Requested By:Ray Mayo, Director Source of Funds: Department:Public Works 032-7085-533-1100 Account Number: $550,000.00 Amount Budgeted: ReportResolutionOrdinance $400,000.00 Amount Requested: Exhibits: Bid Tabulation22001, Notification and Budgeted Item:YesNo Access Report, Letter of Recommendation, Bid from WW Payton Corporation SUMMARY& RECOMMENDATION Responses to the City of La Porte Bid #22001,Water Plant 9 Ground Tank Replacement werereceivedon February 8, 2022. The notice to bidders wereadvertised in the Bay Area Observeron January 13th and January 20th. The notice wasalso posted on the City of La Porte website,Public Purchase and Dunham Engineering website. Sixty-sixvendors were notified with twenty-eightdownloading the bid documentsand two contractors returning bids. W.W. Payton Corporation submitted the lowest bid in the amount of $375,000.00.Staff is requesting a contingency amount of $25,000, for a total authorization of $400,000.00. Dunham Engineering, Inc. has submitted a letter of recommendationin favor of W.W. Payton. Staff recommends award of bid #220001 to W.W. Payton Corporation. The City has used this contractor in the past with excellent results. Benefits: Reduced maintenance is anticipated on the new structure. Liabilities: The existing tank is over 30 years old and the interior coating is failing. If tank is not replacedwater quality issues could arise. ACTION REQUIRED BY CITY COUNCIL Award Bid #22001to W.W. Payton Corporation and authorize the City Manager to execute a construction contract with W.W. Payton in the amount of $375,000.00 and approve aproject contingency of $25,000.00, for a total authorization of $400,000.00. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date Bid Tabulation to Sealed Bid #22001 - Water Tank 9 Replacement Project Gemini Contracting W.W. Payton Corp.Services, Inc. Estimated QuantityDescription Item No.Total PriceTotal Price Furnish material and labor to demolish and remove existing tank per the Technical Specifications 1Lump Sum15,00040,000 Furnish material and labor to erect new bolted steel tank per the Technical Specifications 2Lump Sum345,000348,000 Fuirnish material and labor to connect the new tank to existing piping and valves and place in service per the Technical Specifidcations 3Lump Sum15,00020,000 TOTAL BASE BID $375,000.00$408,000.00 Name of bolted steel tank sub-contractor: SuperiorSuperior Tank Company Calendar days to complete: 210 calendar days270 calendar days No Addenda Bid Tab ProvidedYesYes Sealed Bid #22001 Notifications & Access Report Notification Report: Vendor NameReason AAA Asphalt Paving Inc.Bid Notification All Pro General Construction, InBid Notification AVIATE ENTERPRISES, INC.Bid Notification Baukus ElectricBid Notification Blastco Texas, Inc.Bid Notification Boyer, Inc.Bid Notification Brizo ConstructionBid Notification Calco Contracting, Ltd.Bid Notification CDC NewsBid Notification Chief Solutions, Inc.Bid Notification CONSOR Engineers, LLC dba U Bid Notification Crescent Engineering Co IncBid Notification D DavilaBid Notification derk harmsen const. co incBid Notification F&L Coatings and Concrete, LLBid Notification Florida Traffic Control Devices, Bid Notification Granite InlinerBid Notification Greenlee Plumbing Services, In Bid Notification GULF STATES PROTECTIVE Bid Notification GW Phillips Construction, INC. Bid Notification HDR Engineering, Inc.Bid Notification Horseshoe Construction, IncBid Notification inCon-trol Water SystemsBid Notification IPR South Central LLCBid Notification ISI Contracting, Inc.Bid Notification J&G Concrete ProductsBid Notification J.T.B. Services IncBid Notification K2 Services, LLCBid Notification Kessler PaintingBid Notification KING SOLUTION SERVICES LBid Notification Maguire Iron, Inc.Bid Notification Monroe Pump Service Inc.Bid Notification National Works, Inc.Bid Notification NEC Construction, LtdBid Notification Paskey IncorporatedBid Notification Paskey IncorporatedBid Notification Pfeiffer & Son, Ltd.Bid Notification Pittsburg Tank & Tower Mainten Bid Notification PLW Waterworks, LLCBid Notification Polston Applied Technologies CBid Notification Precision Plant Services, LLC.Bid Notification QC Laboratoires, Inc.Bid Notification R J Construction Company, IncBid Notification R. L. UtilitiesBid Notification R.H. Shackelford, Inc.Bid Notification RAC Industries, LLCBid Notification Resinating LLCBid Notification SAK Construction, LLCBid Notification SJ&J CONSTRUCTION, LLCBid Notification Southern Road & BridgeBid Notification Stone Castle IndustriesBid Notification Synagro Bid Notification T & A Turf and Irrigation, LLC.Bid Notification Tank Pro, Inc.Bid Notification Tankez Coatings, Inc.Bid Notification TCH Directional DrillingBid Notification Texas Materials Group, Inc. dba Bid Notification texas pride utilities, llcBid Notification TLC Trucking & Contracting, IncBid Notification TMI Coatings, Inc.Bid Notification United Industries Group, Inc.Bid Notification Utility Service Co IncBid Notification Viking Painting LLCBid Notification Virtual Builders ExchangeBid Notification VistraticBid Notification W.W. Payton CorportionBid Notification Access Report: Vendor NameAccessedDocuments american tank company2022-01-13 09:54 AM CSTBid #22001 Water Tank 9 Replacement Proje BidClerk2022-01-18 09:41 AM CST Blastco Texas Inc2022-01-13 10:23 AM CSTBid #22001 Water Tank 9 Replacement Proje Caldwell Tanks, Inc.2022-01-13 09:39 AM CSTBid #22001 Water Tank 9 Replacement Proje CivilTech Engineering, Inc.2022-01-14 11:43 AM CST CMS2022-01-13 11:40 PM CST ConstructConnect2022-01-18 09:49 AM CSTBid #22001 Water Tank 9 Replacement Proje Construction Journal2022-01-17 03:22 AM CSTBid #22001 Water Tank 9 Replacement Proje D&M TANK LLC2022-01-17 08:14 AM CSTBid #22001 Water Tank 9 Replacement Proje Dale Dobbins2022-01-26 10:35 AM CSTBid #22001 Water Tank 9 Replacement Proje Dodge Data & Analytics2022-01-18 06:04 AM CSTBid #22001 Water Tank 9 Replacement Proje Gemini Contracting Services2022-02-02 10:30 AM CSTBid #22001 Water Tank 9 Replacement Proje Hearn Company2022-01-13 02:51 PM CSTBid #22001 Water Tank 9 Replacement Proje Heneco2022-01-13 10:00 AM CSTBid #22001 Water Tank 9 Replacement Proje HENECO ENGINEERING AND 2022-01-13 11:27 AM CSTBid #22001 Water Tank 9 Replacement Proje Hydrona2022-01-19 12:57 PM CSTBid #22001 Water Tank 9 Replacement Proje HySafe2022-01-14 08:58 AM CST IMS2022-01-14 03:55 AM CSTBid #22001 Water Tank 9 Replacement Proje Iseler Demolition, Inc2022-01-13 10:00 AM CSTBid #22001 Water Tank 9 Replacement Proje J.T.B. Services Inc2022-02-07 01:26 PM CSTBid #22001 Water Tank 9 Replacement Proje Maguire Iron, Inc.2022-01-13 09:42 AM CSTBid #22001 Water Tank 9 Replacement Proje North America Procurement Co2022-01-17 08:56 AM CSTBid #22001 Water Tank 9 Replacement Proje Onvia2022-01-13 01:04 PM CSTBid #22001 Water Tank 9 Replacement Proje Paso Robles Tank, Inc.2022-01-17 09:14 AM CSTBid #22001 Water Tank 9 Replacement Proje Perkens WS Corporation2022-01-16 09:09 PM CSTBid #22001 Water Tank 9 Replacement Proje Pittsburg Tank & Tower Mainten 2022-01-17 03:01 PM CST Pro Generator Services2022-01-13 07:10 PM CST PWXPress2022-01-19 08:45 AM CSTBid #22001 Water Tank 9 Replacement Proje RFx Analyst2022-01-13 11:47 AM CSTBid #22001 Water Tank 9 Replacement Proje SmartProcure2022-01-14 03:34 AM CSTBid #22001 Water Tank 9 Replacement Proje Superior Grouting2022-01-13 09:42 AM CSTBid #22001 Water Tank 9 Replacement Proje Tank Pro, Inc.2022-01-13 09:45 AM CST Tankez Coatings, Inc.2022-01-13 10:05 AM CST Tukmol General Contractor2022-01-21 12:37 AM CST United Industries Group, Inc.2022-01-13 04:46 PM CSTBid #22001 Water Tank 9 Replacement Proje Viking Painting LLC2022-01-13 09:21 AM CST W.W. Payton Corportion2022-01-13 09:45 AM CSTBid #22001 Water Tank 9 Replacement Proje Wayne Enterprises2022-01-13 12:13 PM CST Webtech2022-01-14 06:26 AM CSTBid #22001 Water Tank 9 Replacement Proje Winston Water Cooler2022-01-14 11:05 AM CST Dunham Engineering, LLC an HMT Company 6102 Imperial Loop College Station, TX 77845 Phone: (979) 690-6555 February , 2022 City of La Porte rd 2963 N 23Street La Porte, Texas 77571 Attn: Ray Mayo, Public Works Director Re: Recommendationof Contractor for Water Plant #9 Ground Storage Tank Replacement The purpose of this letter is to recommend a contractor for the above referenced project. A complete bid tabulation from the February 8, 2022, public bid opening is attached. This project involves the replacementofthe Bolted Steel Water Storage TankatWaterPlant#9for theCity of La Porte, Texas. 1.Bid Tabulation Sheet – Two (2) contractors participated in the bidding process. The bids were checked for mathematical errors and/or bid irregularities. The bids were found to have no mathematical errors and/or bid irregularities. The project was bid with a Base Bid and no Alternate Bid Items. Copy of Bid Tabulation is attached. 2.Qualifications and References – The lowest responsive and responsible bidder, W. W. Payton Corporation of Katy, Texas provided an acceptable list of qualifications and references. T he lowest, responsive and responsible bidder, W. W. Payton Corporation is recommended for award for a total contract price not to exceed $375,000. A copy of the Bidder’s Proposal is attached. Dunham Engineering has interviewed the Contractor’s Project Manager, and reviewed submitted references for similar projects, and has found all to be satisfactory. If you should have any questions regarding the above recommendations, please feel free to call anytime. Sincerely, Dalton Warren, E.I.T. REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested:March 14, 2022 Requested By:Teresa Evans, Director Source of Funds:Planning Department:Planning and Development ЉЉЊΏВЉВЉΏЎЊВΏЎЉЉА Account Number: Amount Budgeted:$175,000 ReportResolutionOrdinance Amount Requested:$262,000 Exhibits:Comprehensive Plan Update Professional Budgeted Item:YesNo ServicesAgreement(PSA); Scope of Services and Fee; Terms and Conditions; RFP 22500 Evaluation Summary SUMMARY& RECOMMENDATION The City of La Porte Code of Ordinances Section 86-4 defines a comprehensive plan to be -rangeplanadopted by the city council in accordance with Texas Local Government Code Chapter 213 and as suchplanis periodically amended or updated, which is intended to guide the development of the city and that includes analysis, recommendations and proposals for the community's population, economy, housing, . Theupdate is to effectively manage future development, protect neighborhoods, preserve sensitive appearance, provide for adequate municipal facilities and services including parks and trails, to make fiscally responsible decisions regarding future capital investments, and to preserve the special quality of life for the citizens of La Porte. The City of La Porte is scheduledfor a ten year/majorComprehensive Plan updatein 2022. The last major,comprehensive plan update was conducted and adoptedin 2012. Staffperformed a minor, five-year update in 2018. Request for Proposal #22500 for a Comprehensive Plan Update was advertised in the ndth Bay Area Observer onSeptember 2and 9of last year. It was also posted on Public PThe City received three (3) responses. An evaluation committee consisting of the Director of Planning, Assistant Director of PublicWorks, City Planner and thePlanning Technician scored the submittals on the following criteria:Methodology/Service Approach;Qualifications and Experience; Capacity to Perform; and Proposed Cost. The evaluation committee interviewed the top two (2) scoringfirms, Freese and Nichols andVerdunity. Freese and Nichols, Inc. was selected as theleading firm. The Freese and Nichols, Inc. proposed agreement for basic services shall not exceed $262,000. Additional services are available for an added fee. The cost proposal as presented exceeds the $175,000 budgeted amount in the current fiscal year. However, sufficient funds have been identified in the line item. Expenses will also roll over into the next fiscal year. The estimated time for plan completion and adoption is 15-18 months from the notice to proceed, depending on the availability of stakeholders involved. Staff recommends approval of the professional services agreement with Freese and Nichols, Inc. to complete the Comprehensive Plan update. ACTION REQUIRED BY CITY COUNCIL Approve or Deny the City Manager to execute the Professional Services Agreement with Freese and Nichols, Inc. to complete the Comprehensive Plan update. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date ATTACHMENT SC BASIC SERVICES: Freese and Nichols, Inc. (FNI) shall render the following professional services to the City of La Porte (Client) in connection with the development of the Project, described as: Comprehensive Plan Update. PROJECT UNDERSTANDING: The Comprehensive Plan will serve as the primary document for planning the City of La Porte's growth and will be the basis for various policies, initiatives, and funding priorities to be considered by the City. The Comprehensive Plan is intended to provide a comprehensive overview of the City presently, establish its long-term vision and develop recommendations to assist the City in planning for the future. The Comprehensive Plan will identify concerns of the community based on an assessment of the City's current condition, future growth and developmental issues, proposed policies, initiatives and implementation goals to accomplish the overall vision and direction of the City. The planning process will include participation of City leadership and all stakeholders in the community. The following is intended to provide, in more detail, the elements and tasks that would be involved in the Comprehensive Plan Update. PROJECT ASSUMPTIONS: 1. The City will appoint a Comprehensive Plan Advisory Committee (CPAC) to help guide FNI and the City throughout the comprehensive planning process. The City will determine composition of the CPAC. FNI will provide guidance and feedback on the potential Committee members. 2. The Planning Director of La Porte will serve as the City contact person to work with FNI and to act as an intermediary with FNI, the CPAC, and other city, county and state government staff persons as required. FNI will take direction from the City-appointed contact person. 3. The City will coordinate project contacts, meetings and the transfer of necessary information from the City and other organizations/entities as necessary for this effort. 4. The City will coordinate arrangements for locations, setup, refreshments, and notifications and advertising for all stakeholder, focus group and community outreach events. FNI will assist with flyers, e-mail blasts, advertisements and other electronic media used in advertising, including content creation. 5. The City will provide information from all previous and current studies and projects (as available) that may affect the outcome of the Comprehensive Plan. This information will be provided in digital format when possible and available. A list of previous and current studies and projects will be discussed at the project kickoff meeting. 6. The City will provide FNI with the most recently updated digital base map and aerial imagery of the planning area for use during the comprehensive plan preparation process. These files will be in the form of GIS file types native to ESRI ArcGIS. 7. Tasks prepared as part of this planning effort may occur concurrently or sequentially where appropriate, or in some cases may deviate from the sequence shown in this Scope of Services document. 8. This scope identifies a specific number of meetings. Any significant additions to that number of meetings will be considered a change in scope and may increase the project cost. 9. All deliverables will be provided electronically in the native format in which they were prepared as well as PDF format. The plan will be prepared using Adobe InDesign. Ten (10) bound copies of the final document will also be provided. Page 1 of 15 ATTACHMENT SC SCOPE OF SERVICES: Task A: Input, Engagement and Meetings A1. Project Kickoff Meeting and City Tour Prior to initiating work, FNI will facilitate a project kickoff meeting with City staff to review project scope, goals, project team members, schedule, issue identification, and project expectations. FNI will provide City staff with a data request memorandum identifying data needs for the Comprehensive Plan Update. Recommended attendees include City staff and others that will guide the process, findings and recommendations. We will discuss the following items: Project vision and goals Priorities of Comprehensive Plan elements Comprehensive Plan input, community engagement details and strategies Project expectations Following the project kickoff meeting, a staff-led tour will be conducted of the City of La Porte of key areas and sites that should be addressed in the Comprehensive Plan. The City will provide a meeting location and will notify attendees of the location and time for the meeting. A2. Staff Progress Meetings The Freese and Nichols Team will meet with City staff periodically throughout the project to discuss project progress, key action items and responsibilities, and project schedule. These meetings will take place through standing conference calls to be determined by the Client and the Freese and Nichols Team. monthly status updates will be submitted that summarize progress and document upcoming tasks. The monthly status updates will outline any upcoming key decisions which will require input from or discussion with the City. Outside of scoped project meetings, conference calls with City staff will be scheduled as needed. A3. Comprehensive Plan Advisory Committee (6 Meetings) The Comprehensive Plan Advisory Committee (CPAC) will be formed by the City of La Porte and facilitated by the Freese and Nichols Team. The CPAC will be composed of various stakeholders and has the primary responsibility of guiding the activities of the plan and providing input into the process. The Freese and Nichols team will meet with the CPAC at key points during the planning process to discuss existing conditions, community input, key issues related to the development, plan recommendations and implementation. The City will be responsible for providing a venue for the CPAC meetings and will notify committee members of meeting dates and times. The Freese and Nichols Team will provide agendas and materials for discussion at each meeting. The Freese and Nichols team will participate in six (6) CPAC meetings throughout the project to update the Committee and get feedback on the process, recommendations, and draft plan. Taking into consideration the fluid environment surrounding COVID- 19, FNI is prepared and has successfully led and managed virtual CPAC meetings. Meeting formats should be determined during Task A1. Project Kickoff Meeting and City Tour. Page 2 of 15 ATTACHMENT SC A4. Community Engagement Events The Freese and Nichols Team will facilitate two (2) community engagement events for the public to share information about the project, gather community input, and generate further support for the Comprehensive Plan Update. These events could be in the form of pop-ups (i.e., input table outside of City Hall, active community businesses, or another venue), a civic group luncheon, community event, virtual meeting or open house. The purpose will be to inform and engage the public in the planning process. Specifically, these events will explain the planning process, provide an update on the work completed to date, solicit input and feedback, and answer questions of concern and interest expressed by residents and business interests. A variety of engagement tools can be used during the process and will be discussed with City staff during the project kickoff. The community engagement events will occur near the beginning and end of the planning process. Due to current constraints on gathering in large numbers because of the COVID pandemic, FNI can structure opportunities for virtual engagement using websites, self-guided exhibits, online community surveys and virtual community meetings that may be broadcast live as well as recorded to ensure the project is accessible by as many people as possible and that engagement is broad and diverse. The Freese and Nichols team will facilitate community engagement events. Meeting space and locations to be determined and hosted by the Client. A5. Focus Groups Stakeholders have a personal stake in communities, and their input and insight are critical in a comprehensive planning process. FNI will facilitate up to five (5) focus group meetings with organizations/entities selected by the Client. These meetings will be held over a period of two days. Suggested stakeholders to engage should be determined during Task A1. Project Kickoff Meeting and City Tour. A6. Community Survey and Interactive Engagement The planning team will develop a community survey with the assistance of the Client. A non-traditional online survey tool will be utilized that uses interactive visual screens, accessible through the web and mobile devices. Online surveys combine education and data collection, allowing for a unique user experience. Interactive engagement tools can be used for priority ranking, budget allocations, tradeoffs and map markers just to name a few features. Data can be easily analyzed and quantified, helping to support the comprehensive plan's recommendations. The planning team can utilize engagement tools such as Social Pinpoint or MetroQuest to acquire specific input to assist in developing detailed recommendations. A7. Project Website, Social Media and Comprehensive Plan Branding A Comprehensive Plan Update project website will be created or hosted by the City to provide information on the process, a list of events, and information such as presentations and graphics as they are developed. The project website will be used to host the online community survey, advertised primarily during the beginning of the project, or as needed throughout the project. Hosting and post-study maintenance planning for the website will be determined in collaboration with the City. We will also utilize the City's Facebook and any other City social media accounts to keep the community informed of project updates, events, and to provide information on the importance of planning. A branding logo and tagline for the comprehensive plan will be developed with input from City. The logo will be used on all communications and materials to encourage excitement over the plan and future planning implementation. Page 3 of 15 ATTACHMENT SC A8. City Council and Planning Commission Engagement and Adoption It is important for City leadership to be engaged and informed during the planning process. The plan will develop recommendations that will inform policies City Council (CC) and the Planning and Zoning Commission (P&Z) will interact with in the future. Therefore, the planning team will receive input from these governmental groups in one (1) joint meeting during the planning process with City Council and P&Z. At the conclusion of the project, the planning team will attend and present the final comprehensive plan at up to two (2) recommendation/adoption meetings for City Council and P&Z. Summary of Task A Deliverables: Facilitate and develop materials for project kickoff meeting and attend staff-led city tour (1) Facilitate staff progress meetings (on-going during the project) Facilitate and develop materials for six (6) CPAC meetings Facilitate and develop materials for two (2) community events Facilitate and develop materials for up to five (5) focus groups over two days Develop and set up a community survey through an interactive engagement tool Facilitate and develop materials for one (1) joint input meeting with City Council and P&Z Attend and present comprehensive plan recommendations to both City Council and P&Z adoption meetings (two (2) meetings) Develop and maintain project website or provide content for city-hosted web page and social media Create comprehensive plan branding logo/tagline Task B: Community Snapshot and Existing Conditions B1. Baseline Analysis The Baseline Analysis is intended to provide background information about the City of La Porte. The components that are included within the Baseline Analysis will allow everyone involved in the planning process, including the planning team, City leadership, and residents, to have a clear understanding of the City and its existing social, economic, existing land use, and neighborhood characteristics. Historic trends, population growth and demographic profile will involve the following: FNI will study a historic timeline of La Porte, including major events impacting physical development of the community Historical population and related growth trends will be analyzed Demographic profile will consist of age, gender, ethnicity, income, and household type, as well as any other data identified by FNI as relevant to potential plan recommendations FNI will explain patterns and impacts of demographic information collected. Demographic data will be based upon the most recent U.S. Census American Community Survey data available at the time Notice to Proceed is given by the City. The population projections utilized within the Future Land Use Plan and the other components of the Comprehensive Plan will be derived from this information. Population projections will also be compared to those prepared for the area by other agencies such as the Texas Water Development Board and Houston-Galveston Area Council. Page 4 of 15 ATTACHMENT SC B2. Existing Land Use Analysis The relationship of existing and future land uses will shape the character and quality of life of the community. To assess the City's future land use needs, an analysis of past land use trends and present land use patterns are vital. The following are the specific elements to be documented to describe land use characteristics. An assessment of the land use characteristics will be evaluated once data gathering has been completed. The existing land use inventories (conducted using a base map of the City provided by the Client) will include: Analysis of types of land use (color-coded by category) quantified by acres Discussion of existing development patterns Discussion of existing land use relationships, both positive and negative B3. Planning Context An understanding of the planning context will help to set the framework for which general planning decisions can be made. The following are elements to be documented to establish the planning context: Evaluate existing planning documents; Review past and ongoing planning efforts conducted by the City; and Coordinate with ongoing updates to other plans. Summary of Task B Deliverables: The Community Snapshot Analysis Report will be a draft Plan element of written information, supported with charts, tables and other graphics depicting the above information, explaining the importance, patterns and meaning of the facts as they relate to La Porte and the Comprehensive Plan. This will include the following: Demographic snapshot Existing land use analysis Physical features assessment, including topography, floodplains, developed/undeveloped land, natural features, sensitive environmental areas and other physical implications that impact growth and development Planning context that addresses external issues, influences and past planning efforts which all impact the comprehensive planning efforts Task C: Market Analysis, Economic Development and Housing Strategy C1. Market Analysis The analysis of La Porte's overall development potential must be based on solid, factual market information so that the recommended projects and strategies are not just grounded in reality but are also credible and can be supported by the wide range of implementing partners. Utilizing existing information where available and assembling new research where necessary, the planning team will evaluate market conditions to understand demographic, economic, and real estate trends in La Porte Page 5 of 15 ATTACHMENT SC and the Houston region, to understand the differences and interrelationships of the various neighborhoods within La Porte, and to understand its competitive position within the region. Specifically, the market analysis will include the following steps: Local and Regional Real Estate Conditions and Trends: Review information about real estate performance throughout La Porte, including vacancy and rental rates for commercial and retail space, recent and proposed projects, retail concentrations and tenant mix, housing absorption trends, and summary information about competitive commercial areas. We will utilize a variety of data sources including CoStar, Redfin, Placer.ai, U.S. Census, HUD, and others as available. Historical/Projected Economic and Demographic Data: Review market indicators such as population, income, consumer spending, employment, and other relevant factors. National Trends: Summarize the latest information about how national trends in housing, employment, and retail will impact what is feasible and appropriate in the Area. Specifically evaluate long-term impacts to retail and employment resulting from online shopping and COVID-19 as well as opportunities for missing middle housing. Development Opportunities: From the above research, in combination with the community's vision for the Comp Plan, identify and quantify growth potential and characterize the type and location of employment, residential, and commercial uses throughout La Porte to serve as a basis for conceptual planning in subsequent steps. Stakeholder Interviews: We will conduct up to six (6) additional virtual or in-person one-on-one or small-group interviews to help identify the primary drivers of future development, barriers to development, and critical public interventions. Interviews should include, at least, major landowners and business owners, developers and brokers, and public works, economic development, and other public agency partners. These will also help inform the recommendations. City staff will enable these interviews by a) preparing a list of recommended attendees and b) managing invitations and scheduling for the interviews. Ideally, all interviews will be held over the course of two days. C2. Economic Development Applying the community vision to the market analysis, we will identify tangible and achievable opportunities to broaden La Porte's employment base. This will include the identification of opportunity sites, forecasts of employment growth by sector, and strategic recommendations regarding policies, programs, and funding that can accelerate implementation and leverage other elements of the Plan. C3. Housing Strategy Applying the market analysis to the community vision, we will identify tangible and achievable opportunities to meet the near- and long-term housing needs of the community. This will include the identification of opportunities to expand the existing housing stock into emerging categories that could serve currently underserved market opportunities (e.g., missing middle). We will also identify implementation actions that address the timing, phasing, and funding of programs and policies that could carry out the community's vision and accelerate the development of desired housing categories. Summary of Task C Deliverables: A Market Analysis report and PowerPoint presentation materials for use in community outreach and other project meetings Economic development content for the final plan document Page 6 of 15 ATTACHMENT SC Housing chapter content for the final plan document. Task D: Draft Community Vision and Guiding Principles D1. Community Vision Based on an assessment of the existing goals and objectives of La Porte, an understanding of existing community constraints, and a summary of public input and feedback, the community's vision will be developed. D2. Guiding Principles The foundation of the Comprehensive Plan will be defined through the guiding principles and goals. The plan recommendations and implementation result from the Comprehensive Plan's guiding principles and goals, which support the community's vision. FNI will develop guiding principles/goals based on analysis, community input and feedback received at the beginning of the process. Summary of Task D Deliverables: A draft Plan element of written information, supported with charts, tables and other graphics depicting the above information. This will include: Summary of community input and surveys Development of guiding principles to assist in recommendations and formation of implementation strategies Task E: Future Land Use E1. Future Land Use/Development Types and Projections A key component of the Future Land Use Plan is the definition and discussion of future land use types, including any new land use types that may be applicable within the City. Discussions of the types of land uses will include associated character guidelines and preferred locations. Land use projections will depict the acreage by land use type as reflected within the Future Land Use Plan Map described below. E2. Future Land Use Plan The Future Land Use Plan is a policy document which is intended to guide City staff and officials as they make decisions on where, when and how the City should grow and redevelop. The development of a future land use plan will ensure a cohesive and unified vision for La Porte is presented to developments and property owners as future development and redevelopment occurs within the community. FNI will develop a future land use plan that will consider existing land use information, neighborhood compatibility, current zoning regulations, economic development strategies, past development patterns, infill and redevelopment opportunities, and integrate them into a graphic depiction of the community's future. Page 7 of 15 ATTACHMENT SC E3. Population Projections FNI will develop a new projected growth rate and population projections for the City based upon historical growth patterns and future growth considerations. The population projections will help inform decisions pertaining to infrastructure, public facilities, parks and other Capital Improvement Program items. FNI will evaluate shifting population patterns and trends to increase understanding of La Porte's stage of growth and development relative to build-out. E4. Development/Redevelopment Opportunity Areas As the planning team assesses future land uses, we will identify two (2) opportunity areas for an assessment that may explore potential site development. Opportunity areas are unique places or having the potential to become a unique area through specific strategies, incentives or location. The existing conditions and factors to consider will be evaluated, and a vision for each area will be identified with general strategies to achieve the vision outlined. There might be the possibility of funding an opportunity area study through the Houston-Galveston Area Council. E5. Future Land Use Plan Map The Future Land Use Plan Map will depict color-coded land uses within the City's planning area. The map will consider the following: Location of future residential, non-residential, mixed uses, open space and institutional land uses along with associated intensities. Location of environmentally sensitive areas or barriers that should be considered when making future development decisions. Location of future land uses along major transportation corridors along with associated intensities. Economic productivity through development and redevelopment strategies. Compatibility of adjacent uses and contexts to provide thoughtful transitions and buffering. Alignment with current zoning designations and anticipated future zoning trends. Summary of Task E Deliverables: A draft Plan element of written information, supported with charts, tables and other graphics depicting the above information. This will include: Future Land Use Plan and land use categories Identification of planning trends that are applicable and suitable for La Porte Updated population projections Identification and evaluation of two (2) opportunity areas Open space and landscape opportunities Goal, policy and action items Recommendations for future zoning changes to ensure alignment with the future land use map Page 8 of 15 ATTACHMENT SC Task F: Transportation and Mobility FNI will evaluate consideration for all modes of travel, including bicycles, pedestrians and public transit, as appropriate. A primary focus of the transportation component will be the identification of corridors and facilities where multi-modal extensions, such as bike, pedestrian and transit facilities, may be incorporated. F1. Evaluation and Integration of Transportation Master Plan The City's existing Transportation Master Plan will be reviewed for coordination with other elements of this Comprehensive Plan, such as whether potential land use changes will prompt amendments to the existing network. The goals and recommendations of the Transportation Master Plan will be integrated into the new Comprehensive Plan Update, including any additional strategies on partnerships for transportation funding. F2. Land Use and Transportation Alignment Alignment of land use with transportation infrastructure will be particularly considered in a manner that seeks to leverage adjacent private development to result in a supportive and sustainable fiscal environment for transportation infrastructure. The FNI team will likewise review regional transportation networks for impacts that have not been accounted for in other planning efforts. Coordinating with regional and state plans and entities on planned and proposed improvements to the transportation network (roads, trails and transit) as needed. F3. Alternative Transportation Modes The current network of sidewalks, roadways and trails will be reviewed. Recommendations will be developed to improve connectivity and access for those choosing transportation modes that rely on off- street facilities and specialized on-street facilities, with consideration towards identifying logical connections and nodes in commercial/retail areas with potential to usefully connect with existing residential areas. Necessary connections between on- and off-street facilities that support pedestrian and bicycle routes for transportation as well as recreation will be identified. Transit alternatives will be discussed. F4. Transportation Sector Market Disruption and Innovation Market disruption through innovation in the transportation sector and overall economy will be discussed, such as transportation network companies, autonomous vehicles, subscriber-based ownership models and decentralized delivery models. Summary of Task F Deliverables: A draft Plan element of written information, supported with charts, tables and other graphics depicting the above information. This will include: Coordination with regional and state plans and entities on planned and proposed improvements to the transportation network (roads, trails and transit) Development of suggested recommendations for future updates to the transportation plan based on land use projections Page 9 of 15 ATTACHMENT SC Identification of appropriate multi-modal facilities, such as bike, pedestrian and transit enhancements, and how elements can be incorporated in La Porte Discussion of market disrupting technologies and approaches in transportation, and identification of strategies appropriate to La Porte to address them Integration of the Transportation Master Plan recommended goals, policies and actions, identifying and reconciling impacts of proposed land use and development intensity Task G: Draft Implementation Plan The implementation plan will be structured into a coordinated action program so that City leaders, staff and other decision-makers can easily identify the steps that are necessary to achieve the vision for the City that is described within the Comprehensive Plan. The implementation plan will outline priorities in a matrix format, primarily by: Reviewing the various policies and related recommendations from each plan element. Dividing the policies and related recommendations into applicable implementation techniques/actions, such as regulatory actions (e.g., possible zoning or subdivision ordinance updates), programs, and intergovernmental partnerships, to create an overall Action Plan. Prioritizing the implementation techniques/actions into appropriate time periods. Establishing appropriate metrics from which to gauge the effectiveness of the strategies implemented and progress toward plan implementation. Summary of Task G Deliverables: A draft plan element of written information, supported with charts, tables and other graphics depicting the above information. Actions will be organized by responsible party, time period and priority, and will include performance measures and metrics. Task H: Preparation of Final Documents H1. Draft Report Individual draft plan elements will be developed throughout the planning process. These elements will be provided in a format to ease review and commenting for the City to the extent possible. The City will consolidate comments from staff, steering committee and others and provide one set of consolidated comments per plan element to FNI. FNI will prepare a draft Comprehensive Plan Report (Draft 1) that will document the planning process and tasks. It will present a clear narrative with accompanying graphics and figures, as necessary, to describe the intentions of the community. The document will be designed with modern graphic design and narrative approaches to be approachable to technical and non-technical audiences. The draft will be provided to the City, CPAC, and other parties the City wishes to include for review and comments. The City will consolidate comments from staff, steering committee and others on Draft 1 and provide one set of consolidated comments. FNI will request a comment review meeting to clarify any comments, if necessary. FNI will prepare a revised draft Comprehensive Plan Report (Draft 2) to address the comments and revisions from Draft 1. This draft will serve as the draft for approval consideration by the Planning and Zoning Commission and City Council. Page 10 of 15 ATTACHMENT SC H2. Final Report and Deliverables FNI will produce an "as adopted" final report to incorporate any changes made during the adoption process by City Council. This document will be created in digital format, including both text and mapping, such that it will be easily reproducible. Electronic files of the final Comprehensive Plan will be provided to the City. H3. Plan Mapping Project mapping is vital to both dissemination of information at meetings and the Comprehensive Plan document. All mapping created by the Consultant will be prepared using ESRI's ArcGIS software and other necessary rendering software. It is assumed that the City will provide all necessary base mapping data in a compatible electronic format to generate the necessary mapping. Summary of Task H Deliverables: Plan element drafts as described above and throughout Draft report for review (Draft 1 and Draft 2) Final report and other plan deliverables The results of the Comprehensive Plan documentation will be digital files of the final Comprehensive Plan, including mapping data, photos, presentations, and any other material utilized during the planning process. Electronic files may also be provided through other digital file transfer systems mutually agreed to by the City and FNI. SUMMARY OF PROJECT MEETINGS: The planning team will facilitate meetings and prepare meeting presentations and materials throughout the project. These meetings will utilize various techniques, as well as rely on traditional meeting formats, in gathering vision data and input. The following is a summary of meetings to be conducted during the planning process: Project Kickoff Meeting and City Tour: Prior to initiating work, FNI will facilitate a project kickoff meeting with City staff to review project scope, goals, project team members, schedule, issue identification, and project expectations. Following the project kickoff meeting, a staff-led tour will be conducted of the City of La Porte of key areas and sites that should be addressed in the Comprehensive Plan. (See Task A1; One (1) meeting and one (1) city tour) Staff Progress Meetings: The Freese and Nichols Team will meet with City staff periodically throughout the project to discuss project progress, key action items and responsibilities, and project schedule. (See Task A2) CPAC Meetings: The planning team will participate in six (6) meetings with the CPAC. These meetings are envisioned as up to two (2) hour meetings to gather data, outline project progress, present plan chapter summaries, and to coordinate upcoming tasks. (See Task A3; Six (6) meetings) Community Engagement Events: FNI will facilitate two (2) community engagement events for the public to share information about the project, gather community input, and generate further support for the Comprehensive Plan Update. These events could be in the form of pop- ups (i.e., input table outside of City Hall, active community businesses, or another venue), a civic group luncheon, community event, virtual meeting or open house. (See Task A4; Two (2) community engagement events) Page 11 of 15 ATTACHMENT SC Focus Group Meetings: The planning team will facilitate up to five (5) focus group meetings, to be identified by the planning team and client, to help reach a broader group of individuals and organizations that have a personal stake in the city. These meetings will be scheduled back-to- back where possible in one or two days maximum. (See Task A5; Up to five (5) focus group meetings) City Council and Planning & Zoning Commission Engagement and Adoption: The plan will develop recommendations that will inform policies City Council (CC) and the Planning and Zoning Commission (P&Z) will interact with in the future. Therefore, the planning team will receive input from these governmental groups in one (1) joint meeting during the planning process with City Council and P&Z. At the conclusion of the project, the planning team will attend and present the final comprehensive plan at up to two (2) recommendation/adoption meetings for City Council and P&Z. (Task A8; Three (3) meetings) TIME OF COMPLETION: FNI is authorized to commence work on the Project upon execution of the contract agreement and will complete the services within 15 to 18 months from notice to proceed, depending on availability of stakeholders involved. If FNIs services are delayed through no fault of FNI, FNI shall be entitled to adjust contract schedule consistent with the number of days of delay. These delays may include but are not limited to delays in Client or regulatory reviews, delays on the flow of information to be provided to FNI, governmental approvals, etc. These delays may result in an adjustment to compensation as outlined on the face of the contract agreement. COMPENSATION: not-to-exceed fee of $262,000. All project expenses are included. La Porte Comprehensive Plan Update - Fee Breakdown A Input, Engagement and Meetings $96,091 B Community Snapshot and Existing Conditions $20,501 C Market Analysis, Economic Development and Housing Strategy $53,510 D Draft Community Vision and Guiding Principles $7,065 E Future Land Use $21,717 F Transportation and Mobility $11,820 G Draft Implementation Plan $5,434 H Preparation of Final Documents $45,862 Total $262,000 Page 12 of 15 ATTACHMENT SC ADDITIONAL SERVICES: Additional Services to be performed by FNI, if authorized by Client in writing, which are not included in the above-described basic services, are described as follows: Additional Comprehensive Plan Project Meetings If the Client determines an additional CPAC meeting, City Council/P&Z, Staff workshop or focus group, is needed during the process, such meetings can be added to the original contract agreement. Additional meetings include meeting preparation, materials, expenses and meeting facilitation. Fee: not-to-exceed $10,000 for each additional meeting Additional Community Engagement Events An additional community engagement event to share information about the project, gather community input and generate further support for the Comprehensive Plan Update can be added to the original contract agreement. Additional meetings include meeting preparation, materials, expenses and meeting facilitation. Fee: not-to-exceed $15,000 for each additional meeting Additional Development/Redevelopment Opportunity Areas An additional opportunity area can be added to explore potential site development. The existing conditions and factors to consider will be evaluated, and a vision for each area will be identified with general strategies to achieve the concept outlined. Fee: $15,000 for each additional opportunity area Development/Redevelopment Opportunity Area Visioning Renderings Architectural renderings are an excellent way to convey and market the vision for a particular area in the city that is ripe for or has the potential for development/redevelopment. Fee: $3,500 for each opportunity area vision rendering Infrastructure Assessment FNI will assess the existing water, wastewater, and stormwater utility infrastructure in La Porte to address the important responsibility of providing safe and reliable public infrastructure. The comprehensive plan, considering existing and recommended best practices for utility system planning, regulatory requirements, funding options, rehabilitation investment recommendations, and utility capacity assessments for new/redevelopment areas based on land use. staff to understand and address the key issues facing La Porte. From there, we will develop Page 13 of 15 ATTACHMENT SC goals and strategies to help City staff maintain and expand their infrastructure in the most efficient and cost-effective way possible. For each utility system (drinking water, wastewater, and stormwater) FNI will review and document the existing infrastructure and discuss regulatory requirements, future system planning/capacity assessment considerations, and industry best practices for efficient utility operation/optimization. o Water Analysis: FNI will examine the existing water system within La Porte. Based on this review and discussion with City Staff and consultants, we will identify program deficiencies and make recommendations for actions to consider during future water master planning efforts. o Wastewater Analysis: Based on a review of existing data/plans and discussion with City Staff and consultants, we will identify program deficiencies in the current wastewater system and recommend actions to consider during future water master planning efforts. o Stormwater Drainage Analysis: Based on a review of existing data/plans and discussion with City Staff and consultants, FNI will also identify deficiencies to consider for future stormwater/drainage efforts. Our team will provide recommendations on key areas where updating the existing drainage plan may be optimal and beneficial. o Identification of the top five priorities related to infrastructure within La Porte; each will be expanded upon in the Comprehensive Plan document. Fee: $16,000 Urban Design and Character Plan Element FNI will develop policies that address community gateways, community image, integration of major roadway corridors and the preservation of character-enhancing community elements, in addition to examining opportunities to maintain and enhance the overall quality of life. Recommendations will be made to address the following: o Street design enhancements o Pedestrian enhancements o Gateways and other key routes to and through La Porte to establish high-level goal, policy and action items o Overall community image o Screening and buffering techniques A map graphic will Identify locations and corridors that could enhance its character through gateway signage, street design and pedestrian enhancements, and other community character enhancements. Community gateway, community image and other character-enhancing recommendations will be developed, using example images to portray ideas, to maintain and enhance quality of life. Fee: $12,000 Capital Improvements Program Integration The comprehensive plan will identify future projects, based on future land uses, which should be integra appropriate fiscal years will be identified for project start and completion. High level ballpark cost Page 14 of 15 ATTACHMENT SC ranges for major projects to be integrated into the CIP will be identified. If desired as an additional service, identified projects can be placed in the form of CIP project and template sheets that have been created in the existing CIP. Task to include the following: o Meet with City staff to discuss ranking criteria and project scoring system of the CIP. Identified CIP projects will be prioritized according to these criteria. o Prepare project sheets showing each project location, description, drivers/justifications, and high-level cost estimates. o Produce maps showing proposed CIP projects identified in the Comprehensive Plan. Fee: $20,000 Zoning Diagnostic Evaluation memo will identify 1) suggested amendments to implement the comprehensive plan recommendations, and 2) general improvements to the existing ordinances regarding usability, modernization and updated legal requirements. Fee: $11,000 Page 15 of 15 07-20 ATTACHMENTTC TERMS AND CONDITIONS OF AGREEMENT City of La Porte, TX 1. DEFINITIONS: The term Client as used herein refers to the. The term FNI as used herein refers to Freese and Nichols, Inc., its employees and agents, and its subcontractors and their employees and agents. As used herein, Services refers to the professional services performed by FNI pursuant to the Agreement. 2. CHANGES: Client, without invalidating the Agreement, may order changes within the general scope of the work required by the Agreement by altering, adding to and/or deducting from the work to be performed. If any change under this clause causes an increase or decrease in FNI's cost of, or the time required for, the performance of any part of the Services, an equitable adjustment will be made by mutual agreement and the Agreement modified in writing accordingly. 3. TERMINATION: The obligation to provide Services under this Agreement may be terminated by either party upon 10 days' written notice. In the event of termination, FNI will be paid for all Services rendered and reimbursable expenses incurred to the date of termination and, in addition, all reimbursable expenses directly attributable to termination. 4. CONSEQUENTIAL DAMAGES: In no event shall FNI or its subcontractors be liable in contract, tort, strict liability, warranty, or otherwise for any special, indirect, incidental or consequential damages, such as loss of product, loss of use of the equipment or system, loss of anticipated profits or revenue, non-operation or increased expense of operation or other equipment or systems. 5. INFORMATION FURNISHED BY CLIENT: Client will assist FNI by placing at FNI's disposal all available information pertinent to the Project including previous reports and any other data relative to design or construction of the Project. FNI shall have no liability for defects or negligence in the Services attributable to FNI's reliance upon or use of data, design criteria, drawings, specifications or other information furnished by Client and Client agrees to indemnify and hold FNI harmless from any and all claims and judgments, and all losses, costs and expenses arising therefrom. FNI shall disclose to Client, prior to use thereof, defects or omissions in the data, design criteria, drawings, specifications or other information furnished by Client to FNI that FNI may reasonably discover in its review and inspection thereof. 6. INSURANCE: FNI shall provide Client with certificates of insurance with the following minimum coverage: Commercial General Liability Workers' Compensation General Aggregate $2,000,000 As required by Statute Automobile Liability (Any Auto) Professional Liability CSL $1,000,000 $3,000,000 Annual Aggregate 7. SUBCONTRACTS: If, for any reason and at any time during the progress of providing Services, Client determines that any subcontractor for FNI is incompetent or undesirable, Client will notify FNI accordingly and FNI shall take immediate steps for cancellation of such subcontract. Subletting by subcontractors shall be subject to the same regulations. Nothing contained in the Agreement shall create any contractual relation between any subcontractor and Client. 8. OWNERSHIP OF DOCUMENTS: All drawings, reports, data and other project information developed in the execution of the Services provided under this Agreement shall be the property of Client upon payment of FNI's fees for Services. FNI may retain copies for record purposes. Client agrees such documents are not intended or represented to be suitable for reuse by Client or others. Any reuse by Client or by those who obtained said documents from Client without written verification or adaptation by FNI, will be at Client's sole risk and without liability or legal exposure to FNI, or to FNI's independent associates or consultants, and Client shall indemnify and hold harmless FNI and FNI's independent associates and consultants from all claims, damages, losses and expenses including attorneys' fees arising out of or resulting therefrom. Any such verification or adaptation will entitle FNI to further reasonable compensation. FNI may reuse all drawings, report data and other project information in the execution of the Services provided under this Agreement in FNI's other activities. Any reuse by FNI will be at FNI's sole risk and without liability or legal exposure to Client, and FNI shall indemnify and hold harmless Client from all claims, damages, losses and expenses including attorneys' fees arising out of or resulting therefrom. 9. POLLUTANTS AND HAZARDOUS WASTES: It is understood and agreed that FNI has neither created nor contributed to the creation or existence of any hazardous, radioactive, toxic, irritant, pollutant, or otherwise dangerous substance or condition at the site, if any, and its compensation hereunder is in no way commensurate with the potential risk of injury or loss that may be caused by exposures to such substances or conditions. The parties agree that in performing the Services required by this Agreement, FNI does not take possession or control of the subject site, but acts as an invitee in performing the Services, and is not therefore responsible for the existence of any pollutant present on or migrating from Page 1 of 2 FNI CLIENT 07-20 ATTACHMENTTC the site. Further, FNI shall have no responsibility for any pollutant during clean-up, transportation, storage or disposal activities. 10. OPINION OF PROBABLE COSTS: FNI will furnish an opinion of probable project development cost based on present day cost, but does not guarantee the accuracy of such estimates. Opinions of probable cost, financial evaluations, feasibility studies, economic analyses of alternate solutions and utilitarian considerations of operations and maintenance costs prepared by FNI hereunder will be made on the basis of FNI's experience and qualifications and represent FNI's judgment as an experienced and qualified design professional. It is recognized, however, that FNI does not have control over the cost of labor, material, equipment or services furnished by others or over market conditions or contractors' methods of determining their prices. 11. CONSTRUCTION REPRESENTATION: If required by the Agreement, FNI will furnish construction representation according to the defined scope for these services. FNI will observe the progress and the quality of work to determine in general if the work is proceeding in accordance with the Contract Documents. In performing these services, FNI will report any observed deficiencies to Client, however, it is understood that FNI does not guarantee the Contractor's performance, nor is FNI responsible for the supervision of the Contractor's operation and employees. FNI shall not be responsible for the means, methods, techniques, sequences or procedures of construction selected by the Contractor, or the safety precautions and programs incident to the work of the Contractor. FNI shall not be responsible for the acts or omissions of any person (except its own employees or agents) at the Project site or otherwise performing any of the work of the Project. If Client designates a Resident Project Representative that is not an employee or agent of FNI, the duties, responsibilities and limitations of authority of such Resident Project Representative will be set forth in writing and made a part of this Agreement before the Construction Phase of the Project begins. 12. GENERAL CONDITIONS OF THE CONSTRUCTION CONTRACT: Client agrees to include provisions in the General Conditions of the Construction Contract that require Contractor to include FNI: (1) as an additional insured and in any waiver of subrogation rights with respect to such liability insurance purchased and maintained by Contractor for the Project (except wor an indemnified party in the indemnification provisions where the Owner is named as an indemnified party. 13. PAYMENT: Progress payments may be requested by FNI based on the amount of Services completed. Payment for the Services of FNI shall be due and payable upon submission of a statement for Services to CLIENT and in acceptance of the Services as satisfactory by the Client. Statements for Services shall not be submitted more frequently than monthly. Any applicable new taxes imposed upon Services, expenses and charges by any governmental body after the execution of this Agreement will be added to FNI's compensation. If Client fails to make any payment due FNI for services and expenses within 30 days after receipt of FNI's statement for services therefore, the amounts due FNI will be increased at the rate of 1 percent per month from said 30th day, and, in addition, FNI may, after giving 7 days' written notice to Client, suspend services under this Agreement until FNI has been paid in full, all amounts due for services, expenses and charges. 14. ARBITRATION: No arbitration, arising out of or relating to this Agreement, involving one party to this Agreement may include the other party to this Agreement without their approval. 15. SUCCESSORS AND ASSIGNMENTS: Client and FNI each are hereby bound and the partners, successors, executors, administrators and legal representatives of Client and FNI are hereby bound to the other party to this Agreement and to the partners, successors, executors, administrators and legal representatives (and said assigns) of such other party, in respect of all covenants, agreements and obligations of this Agreement. Neither Client nor FNI shall assign, sublet or transfer any rights under or interest in (including, but without limitation, moneys that may become due or moneys that are due) this Agreement without the written consent of the other, except to the extent that any assignment, subletting or transfer is mandated by law or the effect of this limitation may be restricted by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. Nothing contained in this paragraph shall prevent FNI from employing such independent associates and consultants as FNI may deem appropriate to assist in the performance of Services hereunder. 16. PURCHASE ORDERS: If a Purchase Order is used to authorize FNI's Services, only the terms, conditions/instructions typed on the face of the Purchase Order shall apply to this Agreement. Should there be any conflict between the Purchase Order and the terms of this Agreement, then this Agreement shall prevail and shall be determinative of the conflict. Page 2 of 2 FNI CLIENT RFP 22500 COMPREHENSIVE PLAN UPDATE EVALUATION SUMMARY LLEWELYN- FREESE AND DAVIES SAHNI ll, VERDUNITY Criteria NICHOLS LLC Methodology/Service Approach 40%151310 Qualifications and Experience 30%118.715 Capacity to Perform 20%645 Proposed Cost 10%232 Final Scores3428.732 Rev. 4/19