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HomeMy WebLinkAbout10-25-04 Regular Meeting of La Porte Audit Committee2. MINUTES OF THE LA PORTE AUDIT COMMITTEE October 25, 2004 1. Call to Order The meeting was called to order by Chairperson Chuck Engelken at 5:00 p.m. Members of Committee Present: Chairperson Chuck Engelken, Mayor Pro Tem Barry Beasley and Councilmember Peter Griffiths Members of Committee Absent: Howard Ebow Members of City Executive Staff and City Employees Present: City Manager Debra Feazelle, Assistant City Manager Cynthia Alexander, Assistant Finance Director Michael Dolby, Assistant City Secretary Sharon Harris, Susan Kelley and Kathy Powell 2. Consider approval of Minutes of Regular Meeting of La Porte Audit Committee Minutes held on October 11, 2004. Motion was made by Committee Member Beasley to approve the minutes as presented. A second by Committee Member Peter Griffiths. The motion carried unanimously. 3. Discussion Items o City Manager Debra Feazelle discussed an administrative fraud policy that would be signed by all city employees. Purchasing Manager Susan Kelley provided the Committee with a procurement card presentation and a flow chart. A pilot program of using the cards was started at the beginning of the year with the Parks and Recreation Department. The program was successful, with a few more cards to be issued. Ms. Kelley provided guidelines for usage of the procurement cards. Committee Member Beasley questioned if the City would receive a rebate for utilizing the cards. Ms. Kelley informed him the City would receive a check at the end of the year, with the rebate going back into the general fund. Assistant City Manager Cynthia Alexander reminded the Committee that the name of the Committee will be changing to "Fiscal Affairs Committee". 4. Tax Resale Property • • Minutes of the La Porte Audit Committee — October 25, 2004 • Tax Manager Kathy Powell presented two bids for tax resale property to the Committee for approval. Ms. Powell recommended that one of the bids be approved and the other be rejected. Motion was made by Committee Member Beasley to approve recommendation as presented by Ms. Powell. A second by Committee Member Griffiths. The motion carried unanimously. 5. Assistant Finance Director Michael Dolby presented the Committee with the Fourth Quarter (FY 2004) Investment Report. 6. Assistant City Manager Cynthia Alexander presented the Committee with the Credit Card Report. 7. The Committee had comments 8. Adjournment There being no further business to come before the Committee, the meeting was adjourned at 5:36 p.m. Respectfully submitted, ��M&&4a Martha A. Gillett, TRMC City Secretary Approved this Tday of �, 2006' Chairperson Chuck Engelken 0 • 3. DRAFT 1 1 ' CITY OF LA PORTE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT ' For the fiscal year ended September 30, 2004 1 vil Prepared by: ' Department of Finance 1 1 i 1 City of La Porte Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2004 TABLE OF CONTENTS B198— INTRODUCTORY SECTION Letter of Transmittal 3 ' GFOA Certificate of Achievement 9 Organization Chart 10 List of Elected and Appointed Officials 11 FINANCIAL SECTION Independent Auditors' Report 15 ' Management's Discussion and Analysis 17 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets 27 ' Statement of Activities 28 Fund Financial Statements: Balance Sheet — Governmental Funds 30 Reconciliation of the Governmental Funds Balance Sheet to Statement of Net Assets 33 Statement of Revenues, Expenditures and Changes in 1 Fund Balances — Governmental Funds 34 Reconciliation of the Statement of Revenues, Expenditures, and Changes In Fund Balances of Governmental Funds to the Statement of Activities 36 ' Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual — General Fund 37 Statement of Net Assets — Proprietary Funds 38 Statement of Revenues, Expenses and Changes in Fund Net Assets — Proprietary Funds 40 Statement of Cash Flows — Proprietary Funds 42 Notes to the Financial Statements 45 ' Required Supplementary Information 69 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet — Nonmajor Governmental Funds 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds 74 Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual: Debt Service Fund 78 Grant Special Revenue Fund 79 ' Community Investment Special Revenue Fund 80 Hotel/Motel Occupancy Tax Sales Tax Special Revenue Fund 81 Tax Increment Reinvestment Zone One Special Revenue Fund 82 ' Capital Projects Fund 83 Transportation and Other Infrastructure Fund 84 1998 General Obligation Bonds Fund 85 2000 Certificate of Obligation Bonds Fund 86 2000 General Obligation Bonds Fund 87 2002 General Obligation Bonds Fund 88 i� City of La Porte Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2004 TABLE OF CONTENTS Supplementary Individual Fund Financial Statements and Schedules — General Fund Schedule of Revenues — Budget and Actual 90 Schedule of Expenditures — Budget and Actual 91 Combining Financial Statements — Internal Service Funds: Combining Statement of Net Assets 98 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 99 Combining Statement of Cash Flows 100 Capital Assets Used in the Operation of Governmental Funds: Schedule by Source 103 104 Schedule by Function and Activity Schedule of Changes by Function and Activity 106 STATISTICAL SECTION Government -wide information: Government -wide Expenses by Function 108 Government -wide Revenues 108 Fund information General Governmental Expenditures by Function 110 General Governmental Revenues by Source 112 Property Tax Levies and Collections 114 Property Tax Rates - Direct and Overlapping Governments 116 Ratio of Gross General Bonded Debt to Assessed Value and Gross Bonded Debt Per Capita 119 Computation of Direct and Overlapping Debt 120 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Expenditures 121 Revenue Bond Coverage - Water and Sewer Bonds 122 Assessed and Estimated Actual Value of Taxable Property 124 Principal Taxpayers 126 Demographic Statistics 127 Property Value, Construction and Bank Deposits 128 Miscellaneous Statistical Data 129 iv 1 0 • iJ 1 1 INTRODUCTORY SECTION 1 H 1 1 1 1 1 L OF .A A _l oLa Porte Established 1892 January 18, 2005 To the Honorable Mayor, Members of the- Governing Council, and Citizens of the City of La Porte, Texas: ' The Finance Department and City Manager's Office is pleased to submit the Comprehensive Annual Financial . Report for the City of La Porte, Texas for the fiscal year ended September 30, 2004. This report is published 'to provide the City Council, City staff, our citizens, our bondholders and other interested parties with detailed information concerning the financial condition and activities of the City government. This report consists of management's representations concerning the finances of the City of La Porte. ' Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to 'protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of La Porte's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh. their benefits, the City of La Porte's comprehensive framework of internal controls 'has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. ill 1 The City of La Porte's financial statements have been audited by Null-Lairson, a firm of licensed certified public accountants. The goal ' of the independent audit was to provide reasonable assurance that the financial statements of the City of La Porte for the fiscal year ended September 30, 2004 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amount and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of La Porte's financial statements for fiscal year ended September 30, 2004, are fairly presented in conformity with GAAP. The independent auditor's report is presented as a component of the financial section of this report. '. - 604 W. Fairmont Pkwy. • La Porte, Texas 77571 • (281) 471-5020 The independent audit of the financial statements of the City of La Porte included a federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of La Porte's separately issued Single Audit Report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A).. This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of La Porte's MD&A can be found immediately following the report of the independent auditors. Profile of the City The City of La Porte, incorporated in 1892, is located in the southeast quadrant of Harris County and is bounded on the north by the Houston ship channel, on the east by Galveston Bay, and the south by the Bayport channel. The City of La Porte currently encompasses 19 square miles and serves a population of 33,712. The City is a home rule city operating under the Council -Manager form of government. Policy - making and legislative authority are vested in a governing council consisting of the mayor and eight other members. The city council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring both the City's Manager and Attorney. The City's Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing the heads of various departments. The Council is elected on a non -partisan basis. The Mayor and Council members serve three-year staggered terms. Six of the council members are elected by district. The Mayor and the two remaining council members are elected at large. The City of La Porte provides a full range- of services, including police and fire protection, the - construction and maintenance of streets and other infrastructure, and recreational activities and cultural events. Certain services are provided through a legally separate Water Authority, which functions, as a blended component unit and in essence, is a department of the City of La Porte, and therefore has been included as an integral part of the City of La Porte's financial statements. Additional information on the Water Authority can be found in Note 1.B. of the notes to the financial statements. The City's accounting records for general governmental operations are maintained on a modified accrual basis, with the revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred. Accounting records for the City's utilities and other proprietary activities .are -maintained on the accrual basis. The annual budget serves as the foundation for the City of La Porte's financial planning and control. Budgetary control has been established at the individual department level. All agencies of the City of La Porte are required to submit requests for appropriation to the City's Manager on or before August the 15'h of each year. The City's Manager uses these requests as the starting point 4 ' for developing a proposed budget. The City's manager then presents this proposed budget to council for review prior to September 30. The council is required to hold a public hearing on the proposed budget and to adopt a final budget by no later than September 30, the close of the City of La Porte's fiscal year. The appropriated budget is prepared by fund, function (e.g., public safety), and department (e.g., police). The City Manager must approve transfers of appropriations within a department. Transfers of appropriations between departments, however require the special approval of the city council. Budget -to -actual comparisons are provided in financial reports for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page 37 as part of the basic financial statements for the governmental funds. For governmental funds, other than the general fund, with ' appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report, which starts on page 78. IFactors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of La Porte operates. Local economy. The City of La Porte is located in the southeast quadrant of Harris County, which is a 1,723 square mile county is a leading oil, gas and petrochemical areas. It has more than 3,200 manufacturing plants, the nation's largest concentration of petrochemical plants, the third largest United States seaport, and is a corporation management center. A significant part of the County's major employers, manufacturers, education and financial institutions are located in Houston, the County seat. The Texas Medical Center, located in Harris County, is one of the ' nation's largest, providing medical care and educational opportunities. The county's 64 hospitals have over 17,000 beds of which 4,600 are in the Texas Medical Center. Higher education facilities includes: University of Houston, Rice University, Texas Southern University, St. Thomas University I and Houston Baptist College, all offering full four-year as well as postgraduate programs. The Lyndon B. Johnson Space Center is also located here. Located some 20 miles southeast of Houston on Galveston Bay in Harris County are the three communities that make up the La Porte Bayshore Area: La Porte, Morgan's Point and Shoreacres. The area has a combined population of approximately 40,000. Though much of the image of this ' area is industrial, the La Porte-Bayshore area is still characterized by an expanse of resort homes. Because of this, and the metropolitan advantages of Houston, La Porte is one of the few communities in the Gulf Coast area that offers this favorable combination. 11 1 1 Future planning. The La Porte 2020 Comprehensive Plan is a 20-year master plan adopted by the City Council to guide policy decisions relating to the physical and economic development of the community. In general, the plan indicates how the community desires to develop and redevelop over the course of the next twenty years. The comprehensive plan is a physical plan; it is long- range, comprehensive, and states the goals, objectives and policies of the local government. The comprehensive plan provides clear direction through specific statements of action to achieve the desired results envisioned by citizens and the leadership of the community. 5 The essential objectives of the comprehensive plan are as follows: ❖ It is a plan to guide the future physical development and redevelopment of the community; ❖ The time frame is long, extending over a twenty-year horizon; ❖ It encompasses a large geographic area including the corporate limits and ETJ of the community; ❖ It is general in nature, allowing some issues to be resolved and many decisions to be made; ❖ It articulates ideas in a framework of goals and objectives, policies and actions, and plans and projects; ❖ Itis intended foremost, to serve as a continuing guide to decision -making, to provide a common direction, and to provide stability as issues are addressed and future decisions are made. Residential Development. Neighborhoods are one of La Porte's greatest assets as they form a foundation for a sound quality of life. The City is made up of several distinct neighborhood areas, each with somewhat different physical characteristics such as the age of housing, street configuration, and the sizes of structures and lots. Much of the City's overall image and identity is due to the unique character of its neighborhoods, and these distinguishing features should therefore be preserved. Neighborhoods that are safe, well maintained and have character will maintain property values and thus maintain a sound neighborhood environment and a stable residential tax base. The attractive appearance and environmental quality of existing and future low -density residential neighborhoods should be protected and improvements made where necessary to maintain the value of properties and enhance the quality of life. As the city continues to develop it is important that the integrity of the neighborhoods is preserved and the value and enjoyment of property is maintained and enhanced. Goals for residential development: ❖ Consider programs to revitalize and rehabilitate existing housing where needed. ❖ Meet the future housing needs by providing fora variety of housing options. ❖ Encourage the rehabilitation or replacement of substandard housing. ❖ Promote a standard of home ownership encouraging well -maintained residential properties. ❖ Preserve the integrity of existing neighborhoods and create livable and safe neighborhood environments. ❖ Protect the attractive appearance and environmental quality of existing neighborhoods and make necessary improvements to maintain the value of properties and enhance the quality of life. Beautification and Conservation. Citizens have expressed great interest for enhancing the visual appearance of La Porte and the redevelopment and reinvestment in Downtown, along major corridors, and in nonresidential areas.- Through public involvement it is apparent that citizens visualize attractive shopping centers, livable neighborhoods, landscaped roadways, pleasant places to walk, and an enhanced quality of life. They want successful shopping areas that appeal to shoppers. They see the opportunities in the downtown to create a destination that combines a lively entertainment district in a historically significant area, retail stores interspersed with restaurants and professional offices and a blend of residential units as well. 0 I� IGoals for Beautification: ❖ Improve the community character to make it a more desirable place to live, work, and visit. ❖ Improve the aesthetic visual environment through enhancement of site design, signage, roadways,parking areas, open space, and landscaping. ❖ Invest in Downtown to establish a vibrant mix of places to work, live, and visit, with shops, restaurants, entertainment, and a variety of dwelling units. Redevelopment Strategy. Urban redevelopment efforts require cooperative action to encourage ' new and sustained private investment and to provide supporting rehabilitation of public infrastructure. A key part of the process is determining what strategic actions the community should take to achieve its redevelopment goals and objectives. Successful redevelopment will often require cooperation and coordination between agencies at different levels of government as well as non-profit community organizations. This should include coordination of physical improvements with social service programs, which aim to enhance the health and economic capacity of residents in targeted neighborhoods. Redevelopment Goals: ❖ Stabilize and improve the quality of neighborhoods and other areas in decline by attracting renewed private investment activity. ❖ Revitalize the City's historic downtown area. Cash management policies and practices. Cash temporarily idle during the year was invested in demand deposits and obligations of the U.S. Treasury. The maturities of the investments range from 30 days to 2 years, with an average maturity of 8 months. The average yield on investments was 1.35% for the government. Investment income includes appreciation in the fair value of investments. Increases in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments that the City intends to hold to maturity. Pension and other post employment benefits. The City of La Porte sponsors a cost sharing multiple employer pension plan for its emergency services personnel. Each year, an independent actuary engaged by the pension plan calculates the amount of the annual contribution that the City ' of La Porte must make to the pension plan to ensure that the plan will be able to fully meets its obligations to retired employees on a timely basis. 1 The City of La Porte also provides pension benefits for its non emergency services employees. These benefits are provided through a state-wide plan managed by Texas Municipal Retirement System (TMRS). The City of La Porte has no obligation in connection with employee benefits offered through this plan beyond its annual contractual payment to TMRS. The City of La Porte also provides postretirement health and dental care benefits for certain retirees and their dependents. As of the end of the current fiscal year, there were 49 retired employees receiving these benefits. Additional information on the City of La Porte's pension arrangements and post employment benefits can be found in Notes 6 and 11 in the notes to the financial statements. 1 VA Awards and Acknowledgements I The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended September ' 30, 2003. This was the twenty-third consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and are ' submitting it to the GFOA to determine its eligibility for another certificate. In addition, the government also received the GFOA's Distinguished Budget Award for its annual budget document. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance and administration department. We would like to express our appreciation to ail members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the mayor and city council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of La Porte's finances. Respectfully submitted, Debra Brooks Feazelle Cynthia Alexander City Manager Assistant City Manager 1 1 1 Certificate of achievement 1 1 F, Assistant City Manager Public Works III Parks & *Interim Golf Course CITY OF LA PORTE ORGANIZATION CHART City Manager 11 FirdEMS III Police III Human Resources III Planning re xps j Assistant City Manager Finance Utility Billing MIS BJ%c w Date: 091OL2003 Purchasing -imI = = = = i = i M = r = = M = M ! M • 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF LA PORTE LIST OF ELECTED OFFICIALS PETER GRIFFITHS COUNCIL PERSON 'f ' AT LARGE A MICHAEL MOSTEIT COUNCIL PERSON DISTRICT 1 HOWARD EBOW COUNCIL PERSON DISTRICT 3 LOUIS RIGBY COUNCIL PERSON DISTRICT 5 ALTON PORTER MAYOR 11 BARRY BEASLEY MAYOR PRO TEM AT LARGE B CHUCK ENGELKEN COUNCIL PERSON DISTRICT 2 TOMMY MOSER COUNCIL PERSON DISTRICT 4 a; MIKE CLAUSEN COUNCIL PERSON DISTRICT 6 12 1 1 FINANCIAL SECTION 13 14 1 • AL ' 11 Greenway Plaza, Suite 1515 Null s Urson Houston, TX 77046 (713) 621-1515 CERTIFIED PUBIICACCOUNTANTS ' Fax: (713) 621-1570 PROFESSIONAL CORPORATION Draft Independent Auditors' Report To the Honorable Mayor and Members ' of the City Council City of LaPorte, Texas 11 One Sugar Creek Blvd., Suite 1150 Sugar Land, TX 77478 (281)242-8600 Fax: (281) 242-7333 ' We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of La Porte, Texas (the City), as of and for the year ended September 30, 2004, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is ' to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United ' States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by ' management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. ' In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of La Porte, Texas, as of September 30, 2004, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 1 ' MEMBERS: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, TEXAS SOCIETY OF CERTIFIM PUBLIC ACCOUNTANTS, CPA ASSOCIATES INTERNATIONAL, INC. WITH ASSOCIATED OFFICES IN PRINCIPAL U.S. AND INTERNATIONAL CITIES 1 To the Honorable Mayor and Members of the City Council City of LaPorte, Texas In accordance with Government Auditing Standards, we have also issued our report dated January 19, 2005, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions or laws, regulations, contracts, and grants. That report, which has been issued separately from this document, is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The Management's Discussion and Analysis, budgetary comparison information, and pension information located in the Financial Section of this document are not a required part of the basic- financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding. the methods of measurement and. presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual find statements and schedules and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual find statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no- opinion on them. 2 1 • • CITY OF LA PORTE, TEXAS 1 1 Management's Discussion and Analysis For the Year Ended September 30, 2004 As management of the City of La Porte, we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2004. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3-8 of this report. FINANCIAL HIGHLIGHTS • The assets of the City of La Porte exceeded its liabilities at the close of the most recent fiscal year by $87,019,858 (net assets). Of this amount, $28,662,825 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors in accordance with the City's fund designation and fiscal policies. • The government's total net assets decreased by $1,105,883. ' • As of the close of the current fiscal year, the City of La Porte's governmental funds reported combined ending fund balances of $23,143,855. Of this amount, $15,471,748 (67%) is unreserved and available for use within the City's designation and policies. ' • At the end of the current fiscal year, unreserved fund balance for the general fund was $6,632,833 (28%) of the total general fund expenditures. ' OVERVIEW OF THE FINANCIAL STATEMENTS 1 1 1 1 This discussion and analysis are intended to serve as an introduction of the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements — The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net assets changed during the fiscal year. All changes in net assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). Both of the government -wide financial statements report functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, health and sanitation and culture and recreation. The business -type activities of the City include the Water and Sewer Utilities, Airport, La Porte Area Water Authority, Sylvan Beach Convention Center and Bay Forest Golf Course operations. The government -wide financial statements can be found on pages 27-29 of this report. 17 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2004 Fund financial statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into two categories - governmental funds and proprietary funds. Governmental funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government - wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing decisions. Both the governmental funds balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 13 governmental funds. Information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General, Debt Service and Section 413 Sales Tax, all of which are considered to be major funds. Data from the other 10 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 30-37 of this report. Proprietary funds - The City maintains two types of proprietary funds. Proprietary funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses proprietary funds to account for its utilities, airport, water authority, convention center and golf course. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses its internal service funds to account for its motor pool services, technology services and employee health insurance program. Because these services predominantly benefit governmental rather than- business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Utility and La Porte Area Water Authority funds since they are considered to be major funds of the City. Because the Airport, Bay Forest Golf Course and Sylvan Beach Convention Center are the only remaining proprietary funds, they are being presented as major funds even though they do not meet the criteria of a major fund established in Government Accounting Standard Board (GASB) Statement No. 34. All internal service funds are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 38-43 of this report. Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 45-68 of this report. Ii K CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2004 ' Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on page 69 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. ' Combining fund statements and schedules can be found on pages 72-88 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of La Porte, assets exceeded liabilities by $87,019,858 at the close of the fiscal year. By far the largest portion of the City's net assets $49,509,884 (57%) reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, improvements, construction in progress, and infrastructure), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets ' themselves cannot be used to liquidate these liabilities. City of La Porte's Net Assets 1 Governmental Activities Business -Type Activities Total 2004 2003 2004 2003 2004 2003 Current and other assets $ 26,149,467 $ 33,982,205 $ 7,806,711 $ 9,172,756 $ 33,956,178 $ 43,154,961 Capital assets 39,705,979 34,110,595 35,193,134 34,110,595 74,899,113 Total Assets 26,149,467 73,688,184 41,917,306 44,365,890 68,066,773 118,054,074 ' Long term liabilities - 15,775,718 7,507,468 8,500,496 7,507,468 24,276,214 Other liabilities 6,822,322 4,754,482 2,108,756 2,003,520 8,929,078 6,758,002 Total Liabilities 6,822,322 20,530,200 9,614,224 10,504,016 16,436,546 31,034,216 Net Assets: n 1 Invested in capital assets, net of related debt Restricted Unrestricted Total Net Assets 23,400,108 3,268,462 26,109,776 3,268,462 49,509,884 5,804,419 3,662,800 3,042,730 3,662,800 8,847,149 19,327,145 23,953,457 25,375,044 4,709,368 44,702,189 28,882,825 $ 19,327,145 $ 53,157,984 $ 32,306,308 $ 33,881,874 $ 51,633,451 $ 87,019,858 An additional portion of the City's net assets $8,847,149 (10%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets of $28,662,825 (33%) may be used to meet the government's ongoing obligations to citizens and creditors. As of September 30, 2004, the City is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate categories - governmental and business -type activities. 19 • 0 1 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2004 Analysis of the City's Operations — the following table provides a summary of the City's operations for the year ended September 30, 2004, with comparative totals for year ended September 30, 2003. Governmental activities decreased the City of La Porte's net assets by $256,003, accounting for 23% of the total decline in net assets. Business -type activities decreased the City's net assets by $849,880, accounting for 77% of the total decline in net assets. City of La Porte's Changes in Not Assets Governmental Business -Type ' Activities Activities Total 2004 2003 2004 2003 2004 2003 Revenues: Program Revenues: Charges for Services $ 3,697,062 $ 5,320,571 $ 7,884,198 $ 7,785,689 $11,581.258 $ 13.106,280 operating grants and contributions 576,262 480,037 - - 576,282 480,037 General revenues: Properly taxes, levied for general purposes 9,139,422 8,797,888 - - 9,139,422 8,797,886 Property taxes, levied for debt service 1,922,117 2,070,120 - 1,922.117 2,070,120 Industrial payments 6,898,112 7,276,821 - - 8,896,112 7,276,821 Franchise taxes 1,718,875 1,682,849 - - 1,718,875 1,682,849 Sales tax 3,283,459 3,037,574 - - 3,263.459 3,037,574 unrestricted investment earnings 376,359 542,254 88,602 121,174 464,961 663,428 Miscellaneous 495,102 704,886 914,943 889,298 1,410,045 1,594,184 Gain (loss) on saletretirement of capital assets (119,204) (260,545) (5,784) - (124,988) (260,546) Total revenues $ 27.965,568 29,652,453 8,881,957 8,796,161 36,847,523 38.448,614 Expenses: General Government 10,428.287 8,625,554 - - 10,428.287 8.625,654 Public Safety 11,648,075 10,771,423 - - 11.648,075 10,771,423 Public Works 1,267,829 3,638,063 - 1,267,829 3,638,063 Health and Sanitation 1,906,519 1,823,462 - - 1,908,519 1.823,462 Culture and Recreation 4,106,491 4,048,974 - - 4,106,491 4,048,974 Interest on Long-term debt 689,644 747,351 - - 689,644 747,351 Water Services - - 6.686,457 6,339.238 6,686,457 6,339,238 Sewer Services - 1,895,709 1,913,284 1,895,709 1,913,284 Airport - - 142,765 149,472 142,765 149,472 Bay Forest Golf Course - 1,222,819 1,284,729 1,222,819 1,284,729 Sylvan Beach Convention Center - - 194.314 212,947 194,314 212,947 Total Expenses 30.046,845 29,654,827 10,142,064 9,899.070 40,188,909 39,554,497 Change In net assets before transfers (2,081,279) (2,374) (1,260,107) (1.103,609) (3,341.386) (1,105,883) Transfers 884,697 (253,629) (254,664) 263,629 430,033 - Change in net assets (1,398,582) (256,003) (1.514,771) (849.880) (2,911,353) (1,105,883) Netassets- beginning 53,157,984 53,413,987 33,861,874 34,711,754 87,019,858 88,125,741 Netassets- ending $ 51,761,402 $ 53,157,984 $ 32,347,103 $ 33,861,874 $ 84,108,505 $ 87,019.858 20 CITY OF LA PORTE, TEXAS Managements Discussion and Analysis For the Year Ended September 30, 2004 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS Governmental funds — The focus of the City of La Porte's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. ' At of the end of the current fiscal year, the City of La Porte's governmental funds reported combined ending fund balances of $23,143,855. Approximately 67% of this total amount ($15,471,748) constitutes unreserved fund balance. The remainder of the fund balance is reserved to indicate that it is not available for new ' spending because it has already been committed 1) to pay for encumbrances ($255,876), 2) to provide for inventories ($69,136), . 3) to pay for debt service ($1,797,213) and 4) to provide for capital projects construction ($5,549,882). 1 In the general fund, the City budgeted for a decrease in the fund balance of $3,126,590, which was the result of a shortfall in budgeted revenues and other resources. Due to actual revenues being more than budgeted and actual expenses being less than budgeted, the actual fund balance decrease for fiscal year 2004 was $285,895. Debt Service fund balance increased in 2004 by $207,603 and was primarily due to higher than planned property tax revenue. Capital Improvements fund balance decreased in 2004 by $1,228,062 due to capital outlay expenditures and transfers to other funds. The 2002 General Obligation Bonds fund balance decreased in 2004 by $1,452,432 for capital projects expenditures and Other Governmental fund balances ' decreased in 2004 by $444,553. Proprietary funds — The City's proprietary fund statements provide the same type of information found in ' the government -wide financial statements, but in more detail. Unrestricted net assets of the respective proprietary funds are Utility - - $4,114,918, Airport $367,874, La Porte Area Water Authority - $193,959, Sylvan Beach Convention Center - $110,116, and Bay Forest Golf ' Course - $(77,499). The change (decrease) in net assets of the proprietary funds in 2004 was as follows: Utility - $(319,008), Airport - $(114,109), La Porte Area Water Authority - $(98,722), Sylvan Beach Convention Center- $(19,285), and Bay Forest Golf Course - $(298,756). ' General Fund Budgetary Highlights — The City made revisions to the original appropriations approved by the City Council. Overall these changes resulted in an increase from the original budget of 0.3% or $73,162. ' The City's budgeted revenue increased .2% as a result of revised revenue projections for interest and miscellaneous revenue. However, interest earnings were down because of a slow economy and declining interest rates. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets - The City of La Porte's investment in capital assets for its governmental and business -type activities as of September 30, 200 amounts to $74,899,113 (net of accumulated depreciation). This investment in capital assets includes land, building, equipment, improvements, infrastructure and construction in progress. rMajor capital asset events during the current fiscal year included the following: e Construction in Progress for improvements to the wastewater treatment plant. • Infiltration and inflow reduction program for the public works department. • Approximately $650,000 in fleet replacement. 1 21 • CITY OF LA PORTE, TEXAS • Management's Discussion and Analysis For the Year Ended September 30, 2004 Capital Assets at Year-end Net of Accumulated Depreciation Land Buildings Equipment Improvements Infrastructure Construction in Progress Total Governmental Activities 2004 $ 7,674,926 9,435,606 4,992,023 3,053,101 10, 887,474 Business -type Activities 2004 $ 2,350,478 499,453 165,631 30,112,057 Total $ 10,025,404 9,935,059 5,157,654 33,165,158 10,887,474 4,146,625 1,315,218 5,461,843 $ 40,189,755 $ 34,442,837 $ 74,632,592 Additional information of the City of La Porte's capital assets can be found in note 4 on pages 56-58 of this report. Debt Administration — At the end of the current fiscal year, the City of La Porte had bonded debt payable of $21,344,178. Of this amount, $13,230,000 comprises bonded debt backed by the full faith and credit of the government and $8,114,178 represents bonds secured solely by water and sewer revenues. General Obligations Revenue Bonds Payable Certificate of Obligations Total Outstanding Debt at Year End Bonds Payable Governmental Activities 2004 $ 10,830,000 Business -type Activities 2004 - 8,114,178 2,400,000 - $ 13,230,000 $ 8,114,178 Totals $ 10,830,000 8,114,178 2,400,000 $ 21, 344,178 The City of La Porte maintains an "AA" rating from the Standard & Poor's and Fitch and an "Aa" rating from Moody's for general obligation debt. The revenue bonds have been rated "A" by all three of these rating agencies. Additional information on the City of La Porte's long-term debt can be found in note 5 on pages 59-63 of this report. CITY OF LA PORTE, TEXAS ' Management's Discussion and Analysis For the Year Ended September 30, 2004 ECONOMIC FACTS AND NEXT YEAR'S BUDGETS AND RATES The unemployment rate for the Houston metropolitan area is currently 6.0 percent, which is a decrease from a rate of 7.0 percent a year ago. This compares identical to the state's average unemployment rate of 5.5 percent which is comparable to the national average rate of 5.4 percent. The City's budgets for all funds have benefited from a strong and expanding economy from the past several years, but in this coming fiscal year, the City's budget has been impacted by the slow down in economic growth. Total assessed property value for all residential and commercial property in the City of La Porte exceeded $1.8 billion for fiscal year 2004 which is 3.28% higher than last year. The trend for total assessed property values has been steadily increasing each year with an average annual increase of 11.7% over the past 5 years. Sales tax receipts ' have grown slightly this fiscal year due to an increase in the economy. This revenue source is the most volatile and subject to decline if an economic slowdown occurs. J 1.9 1.8 1.8 1.7 1.7 1.6 1.6 1.5 1 ASSESSED PROPERTY VALUATIONS SALES TAX COLLECTIONS (in billions) (in millions) 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 REQUEST FOR INFORMATION This financial report is designed to provide our citizens, customers and creditors a general overview of the City's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Assistant Director of Finance, 604 West Fairmont Parkway, La Porte, Texas, 77571. 1 1 23 • 0 24 7 F, 1 1 1 I 1 BASIC FINANCIAL STATEMENTS 25 CITY OF LA PORTE, TEXAS Statement of Net Assets ' September 30, 2004 Primary Govemment Govemmental Business -type ' Activities Activities Total ASSETS ' Cash and cash equivalents Investments $ 19,013,897 $ 6,952,943 1,795,120 $ 2,436,526 20,809,017 9,389,469 Receivables, net of allowance for uncollectibles Accounts receivable 3,333,060 959,226 4,292,286 Taxes receivable 1,327,767 1,327,767 Due from other governments 4,716 - 4,716 Accrued interest receivable 39,402 12,545 51,947 ' Materials and supplies inventories at cost 105,671 4,540 110,211 Restricted Assets: Cash and cash equivalents restricted for customer service deposits 437,913 437,913 ' Investments restricted for debt service 565,000 565,000 Other 1,595,841 1,595,841- Capital assets: Land 7,681,339 2,739,850 10,421,189 Buildings and improvements 17,844,812 1,052,882 18,897,694 Improvements other than buildings 7,191,272 62,200,573 69,391,845 ' Infrastructure Machinery and equipment 23,390,331 12,191,599 - 463,060 23,390,331- 12,654,659 Construction in progress 4,834,424 623,632 5,458,056 Accumulated depreciation (32,005,155) (32,969,402) (64,974,557) ' Total assets 71,906,078 41,917,306 113,823,384 LIABILITIES Accounts payable 3,589,932 . 396,957 3,986,889. ' Accrued salaries payable 632,484 142,095 774-1579 Deferred revenue 90,043 42,637' 132,680 Other current liabilities 18,281 18,281 Current portion of bonds payable 1,330,000 985,000 2,315,000 Accrued interest payable 28,760 17,030 45,790 Customer deposits 501,532 501,532 Noncurrent liabilities Bonds payable, net of current portion 11,900,000 7,129,179 19,029;179 Accrued separation pay 2,573,457 378,289 2,951,746 Total liabilities 20,144,676 9,611, 000 29,755,676 ' NET ASSETS Invested in capital assets, net of related debt 22,294,484 3,268,462 25,562,946 Restricted for. Debt service 1,797,213 3,662,800 5,460,013 Capital projects 7,083,521 7,083,521 Other purposes 4,002,670 - 4,002,670 Unrestricted 16,583,514 25,415,841 41,999,355 Total net assets $ 51,761,402 $ 32,306,306 $ 84,067,708 See accompanying notes to financial statements. 1 1 27 • • CITY OF LA PORTE, TEXAS Statement of Activities For the Year Ended September 30, 2004 Program Activities Governmental activities: General Government Public Safety Public Works Health & Sanitation Culture and recreation Interest on Long Term Debt Total governmental activities Business -type activities: Water Services Sewer Services Airport Golf Course Sylvan Beach Convention Ctr Total business -type activities Total government Expenses $ 10,428,287 11,648,075 1,267,829 1,906,519 4,106,491 689,644 30,046,845 6,686,457 1,895,709 142,765 1,222,819 194,314 10,142,064 $ 40,188,909 Program Revenues Fees, Fines and Operating Charges for Grants and Services Contributions $ 528,296 1,441,662 106,026 463,629 1,157,449 3,697,062 4,155,589 2,493,134 32,728 1,022,103 180,642 7,884,196 $ 11,581,258 $ 238,566 279,596 58,100 576,262 $ 576,262 General revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service Industrial payments Franchise taxes Public service taxes Proceeds from sale of bonds Investment earnings Gain (loss) on sale/retirement of capital assets Miscellaneous Loss on sale of assets Transfers Total general revenues and transfers Change in net assets Net assets —beginning Net assets —ending See accompanying notes to basic financial statements. 28 1 Not(Expenses)Revenues and Changes in Net Assets Governmental Business -type Activities Activities Total $ (9,661,425) $ _ $ (9,661,425) ' (9,926,817) (9,926,817) (1,161,803) - (1,161,803) (1,442,890) _ (1,442,890) (2,890,942) . (2,890,942) (689,644) - (689,644) (25,773,521) - (25,773,521) ' = (2,530,868) (2,530,868) 597,425 597,425 (110,037) (110,037) _ (200,716) (200,716) (13,672) (13,672) (2,257,868) (2,257,868) ' $ (25,773,521) $ (2,257,868) $ (28,031,389) 9,139,422 - 9,139,422 1,922,117 - 1,922,117 ' 6,896,112 6,896,112 1,718,875 - 1,718,875 3,263,459 - 3,263,459 376,359 88,602 464,961 495,102 914,943 1,410,045 ' (119,204) (5,784) (124,988) 684,697 (254,664) 430,033 24,376,939 743,097 25,120,036 ' (1,396,582) (1,514,771) (2,911,353) 53,157,984 33,861,874 87,019,858 $ 51,761,402 $ 32,347,103 $ 84,108,505 1 1 29 CITY OF LA PORTE, TEXAS Balance Sheet Governmental Funds September 30, 2004 ASSETS Cash and cash equivalents Investments Receivables, net of allowance for uncollectibles: Accounts receivable Taxes receivable Due from other governments Property taxes, delinquent Grant receivable Other accounts receivables Accrued interest receivable Construction in Progress Materials and supplies inventories, at cost Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued salaries payable Retainage payable Deferred revenue Accrued employee separation pay Total liabilities Fund balances: Reserved for: Inventories Encumbrances Municipal Court Building Security Municipal Court Technology Fee Park Zone Debt service Capital projects U n reserved/U n designated Unreserved, reported in nonmajor: Special revenue funds Capital projects funds Total fund balances Total liabilities and fund balances General $ 6,203,691 2,522,822 3,542,132 566,070 14,218 68,055 12,916,988 2,009,532 483,801 2,873,701 100,000 5,467,034 69,136 140,055 79,058 49,902 102,775 7,009,028 7,449,954 $ 12,916,988 See accompanying notes to basic financial statements. Debt Service $ 1,123,082 458,812 132,846 2,603 1,717,343 132,846 132,846 1,584,497 1,584,497 $ 1,717,343 Section 46 Sales Tax $ 2,348,419 959,400 209,617 5,441 685,800 4,208,677 677,514 677,514 2,845,363 2,845,363 $ 3,522,877 11 I 0i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Other Total Governmental Governmental Funds Funds $ 6,133,489 $ 15,808,681 1,713,869 5,654,903 - 3,542,132 - 698,916 4,716 4,716 130,451 340,068 9,734 31,996 - 685,800 - 68,055 7,992,259 26,835,267 447,589 7,128 168.00 90,043 544,928 3,134,635 490,929 168 3,096,590 100,000 6,822,322 69,136 140,055 79,058 49,902 102,775 1,584,497 - 9,854,391 1,005,159 1,005,159 6,442,172 6,442,172 7,447,331 19,327,145 $ 7,992,259 $ 26,149,467 31 • 0 32 ' CITY OF LA PORTE, TEXAS Reconciliation of the Governmental Funds Balance Sheet to Statement of Net Assets September 30, 2004 1 Amounts reported for governmental activities in the statement of net assets are different because: Total fund balances - total governmental funds $ 19,327,145 ' Capital assets used in governmental activities are not current financial resources and therefore are not reported in this fund financial statement, but are reported in the governmental activities of the ' statement of net assets. 36,645,414 Certain other long-term assets are not available to pay current period expenditures and therefore are not reported in this fund financial statement, but are reported in the governmental activities of the statement of net assets. 3,006,547 rInterest payable on long-term debt does not require current financial resources. Therefore, interest payable is not recorded as a liability in ' governmental funds balance sheets. (28,760) The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are included in the governmental activities of the statement of net assets. 8,506,004 Some liabilities, (such as notes payable, capital lease contract ' payable, long-term compensated absences, and bonds payable), are not due and payable in the current period and are not included in the fund financial statement, but are included in the governmental activities ' of the statement of net assets: Bonds Payable (13,230,000) Compensated Absences Payable (2,464,948) F� 1 1 Net assets of governmental activities $ 51,761,402 See accompanying notes to basic financial statements. (0) 33 0 0 CITY OF LA PORTE, TEXAS Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2004 REVENUES Property taxes Franchise taxes Sales taxes Industrial payments Other taxes Licenses and permits Fines and forfeits Charges for services Intergovernmental Interest Miscellaneous Total revenues EXPENDITURES Current: General Government Public Safety Public Works Health and Sanitation Culture and Recreation Debt service: Principal retirements interest and fiscal charges Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances —beginning Fund balances ending Debt Section 413 General Service Sales Tax $ 9,101,667 $ 1,952,758 $ - 1,718,875 - - 1,995,654 - 997,827 6,896,112 - - 37,955 - - 320,405 - - 554,559 - - 2,948,580 - - 7,586.00 - 149,347 24,360 34,118 32,605 - - 23,763,345 1,977,118 1,031,945 5,606,562 - - 10,414,544 - - 2,361,192 - - 1,758,964 - - 3,245,144 - - 1,490,000 - 699,834 - 685,800 23,386,406 2,189,834 685,800 376,939 (212,716) 346,145 1,393,757 - - 1,162,766 - - 230,991 - - 607,930 (212,716) 346,145 6,842,024 1,797,213 2,499,218 $ 7,449,954 $ 1,584,497 $ 2,845,363 See accompanying notes to basic financial statements. 34 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Other Total Governmental Governmental Funds Funds $ 15,764 $ 11,070,189 - 1,718,875 - 2,993,481 - 6,896,112 232,023 269,978 - 320,405 - 554,559 (1,240) 2,947,340 568,676 576,262 117,593 325,418 - 32,605 9321816 27,705,224 2,364,722 7,971,284 - 10,414,544 - 2,361,192 - 1,758,964 - 3,245,144 1,490,000 - 699,834 2,573,341 3,259,141 4,938,063 31,200,103 (4,005,247) (3,494,879) 2,075,269 3,469,026 (2,628,091) (1,465,325) (552,822) (321,831) (4,558,069) (3,816,710) 12,005,400 23,143,855 $ 7,447,331 $ 19,327,145 35 • CITY OF LA PORTE, TEXAS Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended September 30, 2004 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances —total governmental funds: $ (3,729,254) Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources. In contrast, the statement of activities reports only a portion of the outlay as expense. The outlay is allocated over the assets' estimated useful lives as depreciation expense for the period. This is the amount by which capital outlays $3,992,881 exceeded depreciation $2,346,058 in the current period. 1,646,823 Governmental funds do not present revenues that are not available to pay current obligations. In contrast, such revenues are reported in the statement of activities when earned. 328,605 Governmental funds report bond proceeds as current financial resources. In contrast, the statement of activities treats such issuance of debt as a liability. Governmental funds report repayment of bond principal as an expenditure. In contrast, the statement of activities treats such repayments as a reduction in long-term liabilities. This is the amount by which proceeds exceeded repayments. 1,490,000 Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds: Accrued interest not reflected in governmental funds 10,190 Additional compensated absences not reflected in governmental funds (124,125) Internal service funds are used by management to charge the costs of certain activities, such as fleet maintenance and information technology, to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities. (1,018,821) Change in net assets of governmental activities $ (1,396,582) See accompanying notes to basic financial statements. 36 r � � r CITY OF LA PORTE, TEXAS ' General Fund Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2004 ' Variance with Final Budget Budgeted Amounts Positive Original Final Actual Amounts (Negative) REVENUES Property taxes $ 8,805,771 $ 8,805,771 $ 9,101,667 $ 295,896 Franchise taxes 1,605,000 1,605,000 1,718,875 113.875 r Sales taxes 1,859,760 1,859,760 1,995,654 135,894 - Industrial payments 7,179,487 7,179,487 6,896,112 (283,375) Other taxes 35,000 35,000 37,955 2,955 Licenses and permits 216,950 569,769 320,405 (249,364) ' Fines and forfeits 653,950 653,950 554,559 (99,391) Charges for services 3,322,217 2,969,398 2,948,580 (20,818) Intergovernmental 350,000 - 7,586 7,586 Interest 226,770 226,770 149,347 (77,423) r Miscellaneous 30,000 30,000.= 32,605 2,605 Total revenues 24,284,905 23,934,905 23,763,345 (171,560) EXPENDITURES ' General Government: Administration 2,267,170 2,431,101 2,266,850 69,727 Finance 2,112,889 2,232,525 1,987,528 244,997 Planning & Engineering 1,436,761 1,477,150 1,352,184 124,966 ' Public Safety: Fire 3,344,305 3,241,561 3,174,851 66,710 Police 7,570,253 7,423,977 7,239,693 184,284 Public Works: ' Public Works Administration 340,318 340,318 337,312 3,006 Streets 2,156,867 2,156,867 2,023,880 132,987 Health and Sanitation: Solidwaste 1,772,709 1,772,709 1,758,964 13,7.45 ' Culture and Recreation 3,458,884 3,397,958 3,245,144 152,814 Total expenditures 24,460,156 24,474,166 23,386,406 993,236 Excess (deficiency) of revenues over expenditures (175,251) (539,261) 376,939 821,676 OTHER FINANCING SOURCES (USES) Transfers in 383,243 1,393,757 1,393,757 - ' Transfers out Total other financing sources (uses) (862,766) (479,523) (1,162,766) 230,991 (1,162,766) 230,991 Net change in fund balances (654,774) (308,270) 607,930 821,676 ' Fund balances -beginning Fund balances -ending 6,842,024 $ 6,187,250 6,842,024 $ 6,533,754 6,842,024 $ 7,449,954 - $ 821,676 I See accompanying notes to basic financial statements 1 1 37 • 7 CITY OF LA PORTE, TEXAS Statement of Net Assets Proprietary Funds September 30, 2004 Business -type Activities - Enterprise Funds La Porte Area Utility Airport Water Authority ASSETS Current assets: Cash and cash equivalents Investments Receivables, net of allowance for uncollectibles Accrued interest receivable Miscellaneous receivables Material and supplies inventories, at cost Restricted cash, cash equivalents, and investments: Customer service deposits Current debt service Total current assets Noncurrent assets: Capital assets: Land Buildings and improvements Improvements other than buildings Vehicles and equipment Construction in progress Less accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable Accrued salaries payable Unearned Revenue Other current liabilities Accrued interest payable Payable from restricted assets: Current portion of revenue bonds Customer deposits Total current liabilities Noncurrent liabilities: Revenue bonds, net of current portion Accrued separation pay Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for debt service Unrestricted (deficit) Total net assets 11 11 it $ 1,261,884 $ 268,980 $ 115,330 2,218,583 109,886 47,663 775,915 7,665 174,841 8,684 623 2,896 4,540 - - 392,052 565,000 5,226,658 266,009 331,014 40,697,877 327,595 588,727 (24,108,052) 18,303,170 23,529,828 293,301 98,967 2,381 565,000 407,312 1,366,961 629,179 246,271 875,450 2,242,411 387,154 209,290 4,036,174 (2,148,120) 2,097,344 2,484,498 1,711 1,500 3,211 3,211 1,595,841 1,936,571 14,725,570 (4,537,108) 10,188,462 12,125,033 83,005 14,649 420,000 517,654 6,500,000 6,500,000 7,017,654 - - 3,268,462 2,066,959 - 1,595,841 19,220,458 2,481,287 243,076 $ 21,287,417 $ 2,481,287 $ 5,107,379 See accompanying notes to basic financial statements. 1 I ' Business -type Activities - Governmental Enterprise Funds Activities - ' Sylvan Beach Convention Center Bay Forest Golf Course Totals Internal Service Funds ' $ 143,030 $ 5,896 $ 1,795,120 $ 3,205,216 58,432 1,962 2,436,526 1,298,040 805 - 959,226 - ' 331 11 12,545 7,406 - - - 79,711 ' - - 4,540 37,616 45,861 - 437,913 - ' - - 2,160,841 - 248,459 7,869 7,806,711 .4,627,989 ' - 1,880,965 2,356,264 - 383,586 721,868 1,436,468 - - 2,540,952 62,200,573 - ' 135,465 463,060 10,800,404 34,905 - 623,632 - ' (277,564) 140,927 (1,898,558) 3,380,692 (32,969,402) (6,317,196) 34,110,595 4,483,208 389,386 3,388,561 41,917,306 9,111,197 2,973 15,967 396,957 455,129 6,628 36,500 142,095 41,555 42,637 - 42,637 - ' 16,781 18,281 - - 17,030 - ' - - 985,000 - 94,220 - 501,532 - ' 146,458 69,248 2,103,532 496,684 - - 7,129,179 - 4,438 127,580 378,289 108,419 ' 4,438 127,580 7,507,468 108,419 150,896 196,828 9,611,000 605,103 - - 3,268,462 4,483,208 ' 3,662,800 238,490 3,191,733 25,375,044 4,022,885 $ 238,490 $ 3,191,733 $ 32,306,306 $ 8,506,093 ' 39 • Ei CITY OF LA PORTE, TEXAS Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the Year Ended September 30, 2004 Operating revenues: Userfees Operating expenses: Personal services Supplies Other services and charges Depreciation Total operating expenses Operating income (loss) Business -type Activities - EnterDrise Funds La Porte Area Utility Airport Water Authority $ 5,775,929 $ 32,728 $ 878,880 2,255,709 - - 186,266 - 109 2,683,660 14,222 892,297 1,231,926 128,543 441,913 6,357,561 142,765 1,334,319 (581,632) (110,037) (455,439) Nonoperating revenues (expenses): Interest income 60,292 4,422 21,014 Interest expense and fiscal charges (85,935) - (374,318) Gain (loss) on sale of equipment (2,465) - - Total nonoperating revenue (expenses) (28,108) 4,422 (353,304) Income (loss) before contributions and transfers (609,740) (105,615) (808,743) Capital contributions - - 866,879 Transfers in 1,250,000 - - Transfers out (1,892,725) (1,073) (54,650) Change in net assets (1,252,465) (106,688) 3,486 Total net assets —beginning 22,539,882 2,587,975 5,103,893 Total net assets —ending $ 21,287,417 $ 2,481.287 $ 5,107,379 40 1 r- U Business -type Activities — Governmental Enterprise Funds Activities — Sylvan Beach Bay Forest Internal Convention Center Golf Course Totals Service Funds $ 182,694 $ 1,022,232 $ 7,892,463 $ 5,526,713 132,297 769,776 3,157,782 1,467,194 4,900 123,008 314,283 355,502 40,891 183,421 3,814,491 4,596,671 16,226 146,614 1,965,222 1,064,432 194,314 1,222,819 9,251,778 7,483,799 (11,620) (200,587) (1,359,315) (1,957,086) 2,351 523 (4,319) 2,351 (3,796) (9,269) (204,383) 20,000 35,000 (4,605) (36,644) 6,126 (206,027) 232,364 3,397,760 $ 238,490 $ 3,191,733 88,602 50,941 (460,253)- - (6,784) (119,204) (378,435) (68,263) (1,737,750) (2,025,349) 866,879 - 1,305,000 1,034,797 (1,989,697) (28,269) (1,555,568) (1,018,821) 33,861,874 9,524,911 $ 32,306,306 $ 8,506,090 1 41 • CITY OF LA PORTE, TEXAS Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2004 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from user fees Cash payments to suppliers Cash payments for personal services Net cash provided by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Business -type Activities - Enterprise Funds La Porte Area Utility Airport Water Authority $ 5,682,988 $ 25,181 $ 986,748 (2,831,342) (21,386) (883,676) (2,260,403) - 591,243 3,795 103,072 Advance to primary government - - (902) Operating transfers in from other funds 1,250,000 - - Operating transfers out to other funds (1,892,725) - (54,650) Net cash from noncapital financing activies (642,725) (1,073) (55,552) CASH FLOWS FROM CAPITAL AND RELATED FINANCIANG ACTIVITIES Payments received from participants for debt service - - 789,024 Payments received from participants for capital recovery - - 86,574 Payments for capital acquisitions (792,520) - - Proceeds from sale of assets - - - Principal payments on revenue bonds (580,000) - (405,000) Interest paid on debt (71,182) - (375,307) Net cash (used) by capital and related financing activies (1,443,702) - 95,291 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 59,030 4,277 21,014 Net Investments (purchased) sold 10,580 (43,420) (831) Net cash provided by investing activities 69,610 (39,143) 20,183 Net increase (decrease) in cash and cash equivalents (1,425,574) (36,421) 162,994 Balances -beginning of the year 3,745,554 303,852 - Balances -end of the year $ 2,319,980 $ 267,431 $ 162,994 Reconciliation of operating Income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (581,632) $ (110,037) $ (13,526) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense 1,231,926 128,543 - (Increase) decrease in accounts receivable (92,941) (7,547) 107,868 (Increase) decrease in inventories - - - Increase (decrease) in accrued salaries payable 19,229 - - Increase (decrease) in accounts payable 23,324 (1,378) 8,730 Increase (decrease) in other current liabilities - - - Increase (decrease) in customer utility deposits 15,260 - - Increase (decrease) in accrued employee separation (23,923) - - Total adjustments 1,172,875 119,618 116,598 Net cash provided by operating activities $ 591,243 $ 9,581 $ 103,072 Reconciliation of total cash and cash Investments: Current Assets - cash and cash equivalents $ 1,261,884 $ 268,980 $ 115,330 Restricted Assets - cash and cash equivalents 392,052 - - Total cash and cash equivalents $ 1,653,936 $ 268,980 $ 115,330 See accompanying notes to basic financial statements. 42 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Business -type Activities - Governmental Enterprise Funds Activities - Sylvan Beach Bay Forest Internal Convention Center Golf Course Totals Service Funds $ 183,794 $ 1,022,232 $ 7,900,943 $ 5,447,002 (42,789) (316,756) (4,095,949) (4,657,291) (130,058) (761,602) (3,152,063) (608,373) 10,947 (56,126) 652,931 (654,042) - - (902) - 15,395 - 1,265,395 - - - (1,947,375) (877) 15,395 (1,644) (685,599) 1,033,920 - - 789,024 - - - 86,574 - - (56,367) (848,887) (964,281) - - 81,131 - - (985,000) - - - (446,489) - - (56,367) (1,404,778) (871,915) 2,296 660 87,277 49,922 (19,257) 20,170 (32,758) (409,070) (16,961) 20,830 54,519 (359,148) 9,381 (93,307) (1,382,927) (878,577) 178,687 99,176 4,327,269 4,065,502 $ 188,068 $ 5,869 $ 2,944,342 $ 3,186,925 $ (11,620) $ (200.587) $ (917,402) $ (1,957,086) 16,226 146,614 1,523,309 1,064,432 1,100 - 8,480 - - - - 64,569 1,773 8,566 29,568 7,999 (9,020) (11,656) 10,000 230,313 (1,434) 1,329 (105) - 48,359 - 63,619 - 466 (392) (23,849) 3,524 57,470 144,461 1,611,022 1,370,837 $ 45,850 $ (56,126) $ 693,620 $ (654,041) $ 143,030 $ 5,896 $ 1,795,120 $ 3,205,216 - - 392,052 - $ 143,030 $ 5,896 $ 2,187,172 $ 3,205,216 43 44 r • • CITY OF LA PORTE, TEXAS r Notes to the Financial Statements - Continued September 30, 2004 1. Summary of significant accounting policies ' A. General Statement The City of La Porte, Texas (the City), was incorporated on August 10, 1892, and operates under a "Council r — Manager" form of government and provides the following services as authorized by its charter: public safety, development services, public health and welfare, culture and recreation, and waterworks. r The accounting and reporting policies of the City relating to the funds included in the accompanying basic financial statements conform to U.S. Generally Accepted Accounting Principles (GAAP) applicable to state and local governments which include those principles prescribed by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants and the Financial rAccounting Standards Board. The more significant accounting policies of the City are described below. B. Financial Reoortina Entity r The City's basic financial statements include the accounts of all City operations. The City, with its elected governing body of mayor and eight council members, is considered a primary government. As required by generally accepted accounting principles, the basic financial statements include the City and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations. All component units have been included as blended component units because of the significance of their roperational and financial relationships with the City. The La Porte Area Water Authority (the Authority) is governed by a five- member board appointed by the City Council. Although it is a legally separate entity, the Authority provides services almost exclusively for the r City's water operations, and is in substance a part of the City's primary operations. The Authority was created by the City to finance the operations involved in obtaining surface water supplies and converting these supplies to potable water. This water is sold primarily to the City of La Porte (86%) with the remainder being sold to other neighboring political subdivisions. The operations of the Authority are reported as a rproprietary fund type. The Tax Increment Reinvestment Zone One (the Zone) is governed by a nine -member board appointed by r the City Council. The Zone provides benefits exclusively for the City through reinvestment financing of ad valorem taxes, which are utilized for capital improvements for the City of La Porte. The Zone is presented as a governmental fund type. r The Section 4B Sales Tax corporation is governed by a seven -member board appointed by City Council and was organized to undertake projects that the board determines to promote new or expanded business enterprises and various projects as described in Section 4B of Article 5190.6. The Section 4B Sales Tax rCorporation is presented as a governmental fund type. Complete financial statements for each of the individual component units may be obtained through the City r of La Porte. C. Basis of Presentation rGovernment Wide Statements: The government -wide financial statements (i.e. the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the City, including the component units. ' The effect of interfund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely significantly on fees and charges for support. Likewise, the primary government is ' reported separately from certain legally separate component units for which the primary government is financially accountable. 1 45 7 CITY OF IA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 1. Summary of significant accounting policies - Continued The statement of activities demonstrates the degree to which the direct expenses of a given program or function is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific program or function. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given program or function and 2) operating or capital grants and contributions -that are restricted to meeting the operational or capital requirements of a particular program or function. Taxes and other items not properly included among program revenues are reported instead as general revenues. The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. Individual funds and account groups summarized in the accompanying financial statements are classified below. Fund Financial Statements: The City segregates transactions related to certain functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Separate statements are presented for governmental and proprietary activities. These statements present each major fund as a separate column on the fund financial statements; all non -major funds are aggregated and presented in a single column with the exception of the non -major proprietary funds which are presented separately even thought they do not meet the criteria of a major fund established in Government Accounting Standard Board Statement No. 34. Governmental funds are those through which most governmental functions typically are financed. The measurement focus of governmental funds is on the sources, uses and balance of current financial resources. The City has presented the following major governmental funds: (a) General Fund - is the main operating fund of the City. This fund is used to account for all financial resources not accounted for in other funds. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. (b) Debt Service Fund - is used to account for the accumulation of resources for, and the payment of, principal, interest and related costs on general long-term debt paid primarily from taxes levied by the City. The fund balance of the Debt Service Fund is reserved to signify the amounts that are restricted exclusively for debt service expenditures. (c) Section 48 Sales Tax Fund - is used to account for funds received from the % cent sales tax 1 dedicated to certain economic and infrastructure projects. 1 1 1 46 1 CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued ' September 30, 2004 1. Summary of significant accounting policies - Continued Proprietary Funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. The accounting objectives are determinations of net income, financial position and cash flow. All assets and liabilities are included on the Statement of Net Assets. Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for the proprietary funds include the cost of personal and contractual services, supplies and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses. The City reports the following major proprietary funds: (a) Utility Fund - is used to account for the provision of water and sewer services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but ' not limited to administration, operations and maintenance of the water and sewer system and billing and collection activities. The fund also accounts for the accumulation of resources for, and the payment of, long-term debt principal and interest for water and sewer debt. All costs are financed through charges to utility customers with rates reviewed regularly and adjusted if necessary to ' ensure integrity of the fund. (b) La Porte Area Water Authority Fund - is used to account for revenues and expenses related to ' obtaining raw surface water and converting it to potable water to be sold to La Porte and neighboring cities. (c) Bay Forest Golf Course - is used to account for the revenues and expenses relative to the administration, operation and maintenance of the public golf course. All costs are financed through fees charged to patrons. ' (d) Airport - is used to account for the operation of the City's airport. (e) Sylvan Beach - is used to account for activity surrounding the City's operation of the Sylvan Beach Pavilion and Convention Center ' The Bay Forest Golf Course, Airport and Sylvan Beach Convention Center are the three non -major proprietary funds that are reported as major funds. ' Additionally, the City reports the Internal Service Funds which are used to account for the Motor Pool, Technology and Insurance services provided to departments of the City. ' D. Measurement Focus and Basis of Accounting Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The government -wide financial statements and fund financial statements for proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. The economic resources measurement focus means all assets and liabilities (whether current or non -current) are included on the statement of net assets. The operating statements present increases (revenues) and decreases (expenses) in net total assets. Under the accrual basis of accounting, revenues are recognized when they ' are earned. Expenses are recognized at the time the liability is incurred. Unbilled water and wastewater utility service receivables are accrued as revenues and reflected in the financial statements. r] 1 47 • CJ CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 1. Summary of significant accounting policies - Continued Governmental fund financial statements are reported using the current financial resources measurement focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual; i.e., when they become both measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the current fiscal period. Most revenue sources are recorded as revenues when received in cash because they are generally not measurable until actually received. The revenues susceptible to accrual are property and sales taxes, franchise fees, interest income and intergovernmental revenues. A one-year availability period is used for recognition of all other Governmental Fund revenues. Expenditures are recorded when the related fund liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences are recorded only when payment is due. E. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, special revenue funds and debt service funds. All annual appropriations lapse at fiscal year-end. Project length financial plans are adopted for all capital projects funds. The City uses the following procedures in establishing the budgets reflected in the financial statements: 1. Prior to August 15, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing on the following October 1. The operating budget includes proposed expenditures and the means of financing them. 2. A public hearing is conducted to obtain taxpayer comments. 3. Prior to September 30, the budget is legally enacted through passage of an ordinance. 4. The City Manager must approve changes within a department, which is the legal level of control. City Council approves changes between departments as well as amendments to the budget during the year as may be required. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund and Proprietary Funds. Formal budgetary integration is not employed for the Debt Service Fund and Capital Projects Funds because. effective budgetary control is alternatively achieved through bond indenture provisions and legally binding construction contracts, respectively. 6. The budget for the General Fund and Special Revenue Funds are adopted on a basis consistent with GAAP. Budgets for the Proprietary Funds are utilized for planning, control and evaluation purposes. They are adopted on a basis consistent with GAAP except that bond principal payments and fixed asset acquisitions are treated as expenditures. 7. Budgeted amounts are amended by the City Council during the year. Individual amendments were not material in relation to the original appropriations, which were amended. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting - under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation - is utilized in the governmental funds throughout. the. year.. Encumbered amounts lapse at year-end. However, encumbrances generally are reappropriated as part of the following year's budget. 48 • 0 CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 1. Summary of significant accounting policies - Continued ' F. Cash and Investments Cash includes amounts in demand deposits, short-term investments, which mature within ninety days of the fiscal year end, and various petty cash funds. The short-term investments are stated at cost or amortized cost, which approximate fair value. The short-term investments consist of U.S. Treasury Bills, and deposits in the Texas Local Government Investment Pool (TexPool) and the Local Government Investment ' Cooperative (LOGIC), both of which have the general characteristics of a demand deposit account. For purpose of the statement of cash flows, Proprietary Fund types consider temporary investments with a maturity of three months or less when purchased to be cash equivalents. ' In accordance with Statement No. 31, the City reports all investments at fair value, except for "money market investments" and "20-like pools". Money market investments, which are short-term highly liquid ' debt instruments that may include U.S. Treasury and agency obligations, are reported at amortized costs. Investment positions in external investment pools that are operated in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940, such as TexPool and LOGIC, are reported using the pools' share price. G. Prepaid Items Prepaid balances are for payments made by the City in the current year to provide services occurring in the ' subsequent fiscal year, and the reserve for prepaid items has been recognized to signify that a portion of fund balance is not available for other subsequent expenditures. ' H. Receivables Receivables as of year-end of the government's individual major and non -major funds, and internal service funds, including the applicable allowances for uncollectible accounts, are as follows: Fund Taxes Interest Other Accounts General $1,240,011 $13,135 $ 3,591,930 Total $ 4,845,076 _ Debt Service 326,837 2,309 329,146 Capital Improvements - 4,842 4,716 - 9,558 ' 2002 G.O. Bonds - 26 - - 26 Utility 7,422 717,606 725,028 Water Authority - 2,065 - 282,709 284,774 Golf Course 148 - - 148 - Non -major and Other 16,198 154,972 2,023 173,193 Gross Receivables 1,566,848 46,145 159,688 4,594,268 6,366,949 Less: allowance for - (787,553) uncollectibles (859,282) - (1,646,835) Net total receivables $ 707,566 $ 46,145_ $ 159,688 $ 3,806,715 $ 4,720,114 J 1 1 49 CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 1. Summary of significant accounting policies - Continued Governmental funds reported deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Revenue recognition is also deferred in connection with resources that have been received, but not yet earned in the proprietary funds. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental and proprietary funds were as follows: Unavailable Unearned General Debt Service Proprietary Total Delinquent property taxes receivable 566,070 132,846 $ - $ 698,916 Charges for services and customer deposits 2,307,631 - 42,637 2,350,268 Total deferred / unearned revenue $ 2,873,701 $ 132,846 $ 42,637 $ 3,049,184 I. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results may differ from those estimates. J. Indirect Expense Allocations It is the policy of the City not to allocate indirect expenses to various functions in the Government -wide Statement of Activities. K. Restricted Assets The City applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. L. Inventories Inventories consist of material and supplies and are valued at cost (first -in, first -out). Inventories for all funds consist of expendable supplies held for consumption and the cost thereof is recorded as an expenditure at the time individual inventory items are issued. Reported inventories in the Governmental Funds are offset by a fund balance reserve, which indicates they are unavailable for appropriation even though they are a component of net current assets. M. Interfund Transactions Transactions Between Funds Transactions between funds that would be treated as revenues, expenditures or expenses if they involved organizations external to the governmental unit are accounted for as revenues, expenditures or expenses in the funds involved. Transactions, which constitute reimbursement to a fund for expenditures or expenses initially made from that fund,.which are properly attributable to another fund, are recorded as expenditures or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is reimbursed. Nonrecurring or nonroutine transfers of equity between funds are reported as additions to, or reductions of, the fund balance of Governmental Funds. Transfers of equity to Proprietary Funds are treated as contributed capital and such transfers from Proprietary Funds are reported as reductions of retained earnings or contributed capital, as is appropriate in the circumstances. All other legally authorized transfers are treated as operating transfers and are included in the results of operations of both Governmental and Proprietary Funds. 50 CITY OF LA PORTE, TEXAS ' Notes to the Financial Statements - Continued September 30, 2004 7. Summary of significant accounting policies - Continued ' N. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental or business -type activities columns in the government -wide financial statements and in the fund financial statements for proprietary funds. Capital assets are defined by the government as assets with an initial unit cost of $5,000 or more and an estimated useful life exceeding two years. Such ' assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at their fair market value on the date donated. Repairs and maintenance that do not add to the value of the asset or extend assets lives are recorded as expenses. Interest cost during construction is capitalized when the effect of capitalization materially impact the financial statements. During the year ended September 30, 2004, no interest costs were capitalized. Property, plant, and equipment of the primary government, as well as the component units, are depreciated ' using the straight line method over the following estimated useful lives: Buildings 20 years Water and Sewer System 20 - 40 years Infrastructure 20 - 30 years Machinery and Equipment 4 -10 years Improvements 20 years 1 O. Comg_ensated Absences The City's employees earn vacation and sick leave, which may either be taken or accumulated, up to certain amounts, until paid upon termination or retirement. For all funds, this liability reflects amounts attributable to cumulative employee services already rendered, where the payment is probable and can be reasonably estimated. The current and long-term portions of the governmental fund type liabilities are recorded in the Government -Wide Statement of Net Assets. The proprietary fund type liability is recorded as a liability in the individual proprietary funds since payment of this liability will be made from resources of these funds. Policies relating to the accrual and payment of these benefits are as follows: M■ Vacation - Employees earn from 10 to 25 days of vacation per year. Upon separation, employees are paid for all accumulated vacation leave (up to one and one half times their annual accrual rate). ' ■ Sick Leave - Employees earn an average of 10 sick hours per month of service. Non -civil service employees hired after November 19, 1991, and who have completed 10 consecutive years of service with the City, are paid for accumulated sick leave, subject to a limit of 480 hours. Civil ' service employees are subject to a limit of 720 hours. The liability for compensated absences at September 30, 2004 is comprised of the following: Governmental Business Type Total Vacation $ 636,859 $ 137,153 $ 774,011 Sick Leave 1,505,239 269,318 1,774,558 ' Total All Funds $ 2,142,098 $ 406,471 $ 2,548,569 51 CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 1. Summary of significant accounting policies - Continued P. Long-term Obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type. statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Q. Reservations of Fund Balances The fund balance reserves for revenue bond retirement and construction, prepaid items, inventory, and debt service are discussed in notes 5, 1(G), 1(L), and 1(C) respectively. R. Net Assets Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciations, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets, and adding back unspent proceeds. Net assets are reported as restricted when there are limitations imposed on their use either through the enabling legislations adopted by the city or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. 2. Cash, Cash Equivalents and Investments Cash and Cash Equivalents The carrying amount of the City's deposits with financial institutions as of September 30, 2004, was $1,261,934 and the bank balance was $1,522,503. All of the bank balance was fully covered by federal depository insurance or collateral held by the City's agent -held in -the City's name. Short term deposits in the Texas Local Government Investment Pool (TexPool), the Local Government Investment Cooperative (LOGIC), and Tex Star were $18,456,886 at September 30, 2004. Credit Risk Collateral is required for all bank deposits at 100% of deposits not covered by federal depository insurance. Obligations that may be pledged as such collateral are obligations of the United States and its agencies and obligations of the State and its municipalities and school districts. Collateral pledged to cover the City's deposits is required to be held in the City's name by the trust department of a bank other than the pledging bank (the City's agent). Collateral securities must bear a Baa-1 or better rating to qualify for use in securing uninsured depository balances. Deposits at year-end are -representative of the types of deposits maintained by the City during the year. 52 CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 2. Cash, Cash Equivalents and Investments - Continued ' Investments Under provisions of state and local statutes, the City's investment policies, and provisions of the City's depository contracts with the area financial institutions, the City is authorized to place available deposits and investments in the following: ❖ Obligations of the U.S., its agencies, and instrumentalities. ' ❖ Direct obligations of the State of Texas or its agencies. ❖ Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the ' United States. ❖ Other obligations, the principal and interest on which are unconditionally guaranteed or insured by, or backed by full faith and credit of the State of Texas or the United States or their agencies and ' instrumentalities. ❖ Obligations of states, agencies, counties, cities and other political subdivisions of any state having been rated as to the investment quality by a nationally recognized investment firm and having received a rating of not less than A or its equivalent. 66 Certificates of Deposit issued by state and national banks or savings and on associations domiciled in this state that are: - guaranteed or insured by the Federal Deposit Insurance Corporation; or 1 - secured by obligations that are described in 1-5 above, which are intended to include all direct federal agency or instrumentality issued mortgage backed securities that have a market value of not less than the principal amount of the certificates or in any other manner and amount provided by law for deposit of the investing entities. ' ❖ Certificates of Deposit and share certificates issued by a state or federal credit union domiciled in the State of Texas that are guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, or are secured as to principal by obligations ' described in 1 through 5 above in any other manner and amount provided by law for the City deposits. Fully collateralized repurchase agreements having a defined termination date, secured by obligations of the United States, its agencies or instrumentalities, pledged with a third party selected ' or approved by the political entity, and placed through a primary government securities dealer, as by the Federal Reserve, or through a financial institution domiciled in the State of Texas. •, Prime domestic banker's acceptances, defined as a banker's acceptance with a remaining term of 270 days or less, if the short-term obligations of the accepting bank or its parent are rated at least A-1 or P-1 or equivalent by at least one nationally recognized credit rating agency. ❖ Commercial paper that is rated at least A-1 or P 1 or the equivalent by either (a) two nationally recognized credit agencies or (b) one nationally recognized credit rating agency if the paper is fully ' secured by an irrevocable letter of credit issued by a U.S. or State bank. ❖ SEC -registered no-load money market mutual fund (MMMF), with a dollar weighted average portfolio maturity of 90 days or less, includes in their investment objectives the maintenance of a stable net asset value of $1 for each share. ❖ SEC -registered, no-load money market mutual funds (MMMF) that have an average weighted maturity of less than two years, invests exclusively in obligations described above and are continuously rated as to investment quality by at least one nationally recognized investment rating ' firm of no less than AAA or its equivalent. ❖ Authorized government investment pools that invest solely in obligations of any of the above investments provided that the pools are rated no lower than Aaa or AAA or an equivalent by at least one nationally recognized rating service. All significant legal and contractual provisions for investments were complied with during the fiscal year. Investments at year-end are representative of the types of investments maintained by the City during the ' year. 1 53 11) CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 2. Cash, Cash Equivalents and Investments - Continued The City's investments at year-end are summarized below and have been classified in credit risk categories. Credit risk categories are as follows: (1) Insured or registered, or securities are held by the City or its agent in the City's name, (2) Uninsured and unregistered, with securities held by the counter-party's trust department or agent in the City's name or (3) Uninsured and unregistered, with securities held by counter -party, or by its trust department or agent but not in the City's name. U.S. Government Agency Notes Investments not Subject to Categorization: TEXPOOL LOGIC TexStar Total Investments Investments Classified as Cash Equivalents Total Investments per Balance Sheet Credit Risk Carrying Fair Category Amount Value 1 $ 10,985,310 $ 10,985,310 N/A 11,582,913 11,582,913 N/A 3,848,296 3,848,296 3,025,677 3,025,677 29,442,196 $ 29,442,196 18,456,866 $ 10,285,310 The U.S. government securities were purchased through a broker/dealer and are held for safekeeping by the City's depository bank (independent agent), registered for the account of City of La Porte. The City generally holds all investments to maturity date. The City had no derivative investment products during the current year. The City did not have any reverse repurchase or repurchase agreement transactions. Fair values of investments are based on quoted market prices. The investments are reported by the City at fair values determined by quoted market prices. All realized gains/losses are reported in the financial statements. These calculations are independent of calculations of the net change in fair value of investments. The City has unrealized gains of $138 reported in the financial statements as of September 30, 2004. Investment balances in public investment pools are not evidenced by underlying securities that exist in physical or book entry form and, therefore, are not subject to credit risk categorization. The City utilizes the pooled investment concept to maximize interest earnings. Interest earned on investments is distributed to each participating fund based on each individual fund's proportionate share of the pool and is done on a monthly basis. In accordance with GASB Statement No. 31, the City reports all investments at fair value, except for "money market investments" and "20-like pools". Pursuant to investment agreements approved by each participant with each pool, the business and affairs of the pools are required to be managed by each pool's Board of Trustees (the Board). The Board consists of members representing entities that have adopted the investment agreements. The duties of the boards include, but are not limited to, adopting investment policies, appointing investment officers, overseeing the selection of investment managers, custodian banks, investments consultants, and other service providers, monitoring compliance with the pools' investment policy, monitoring performance, and revising the investment policies to reflect changing conditions affecting the pools or the needs of the participants. Money - market investments, which are short-term highly liquid debt instruments that may include U.S. Treasury and agency obligations, are reported at amortized costs. Investment positions in external investment pools that are operated in a manner consistent with SEC's Rule 2a7 of the Investment Company Act of 1940, such as TexPool and LOGIC are reported using pool's share price. 54 CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 3. Property tax ' The appraisal of property within the City is the responsibility of the Harris County Appraisal District (the Appraisal District). The Appraisal District is required under the Property Tax Code to appraise all property within the county on the basis of 100% of its market value. The value of real property within the Appraisal I District must be reviewed every five years; however, the City may, at its own expense, require annual reviews of appraised values. The City may challenge appraised values established by the Appraisal District through various appeals and, if necessary, take legal action. Under this legislation, the City continues to set ' tax rates on City property. However, if the effective tax rate, excluding tax rates for repayment of general obligation bonds and other contractual obligations, adjusted for new improvements, exceeds the rate for the previous year by more than 8%, qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than 8% above the effective tax rate. The City's property taxes are levied annually in October on the basis of the Appraisal District's assessed values as of January 1 of that calendar year. Appraised values are established by the Appraisal District at ' market value, assessed at 100% of appraised value and certified by the Harris County Appraisal District Board of Review. The City's property taxes are billed and collected by the City's Tax Assessor/Collector. Such taxes are applicable to the fiscal year in which they are levied and become delinquent with an enforceable lien on property on January 1 of the current calendar year. The City is permitted, by Article XI, Section 5, of the State of Texas Constitution and the City Charter, to levy property taxes up to $2.50 per $100 of assessed valuation for general governmental services. Within the $2.50 maximum levy, there is no legal limit upon the amount of property taxes, which can be levied for debt service. The property tax rates to finance general governmental services and debt service for the 2003-04 tax year were $0.575 and $0.135 respectively, per $100 of assessed valuation. The 2005 assessed value and total tax levy as adjusted through September 30, 2004 were $1,560,406,910 and $11,078,891 respectively. The City has enacted an ordinance providing for the exemption of twenty percent (20%) of the assessed value of residential homesteads plus and additional $60,000 for persons 65 years of age or older for ' property taxes. An exemption of $60,000 is allowed for disabled persons on homesteads and up to $12,000 is allowed for disabled veterans on any one piece of property. Additionally, the market value of agricultural land is reduced to agricultural value for purposes of the City's tax levy calculation. 1 1 55 CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 4. Capital Assets Capital asset activity for the year ended September 30, 2004 was as follows: Beginning Ending Balance Retirements & Balance 10/01/03 Additions Adjustments 09/30/04 Governmental activities: Capital assets, not being depreciated: Land $ 7,128,945 $ 552,394 $ - $ 7,681,339 Construction in progress 1,900,979 2,955,199 (21,754) 4,834,424 Total capital assets, not being depreciated 9,029,924 3,507,593 (21,754) 12,515,763 Capital assets, being depreciated: Buildings and improvements 17,889,014 - (44,202) 17,844,812 Improvements other than buildings 7,174,952 16,320 - 7,191,272 Infrastructure 23,069,816 320,514 - 23,390,330 Machinery and equipment 12,177,344 1,361,484 (1,347,229) 12,191,599 Total capital assets being depreciated 60,311,126 1,698,318 (1,391,431) 60,618,013 Less accumulated depreciation for: Buildings 7,516,476 892,731 (2,668) 8,406,539 Improvements other than buildings 3,779,703 358,468 - 4,138,171 Machinery and equipment 6,830,709 1,164,641 (1,037,759) 6,957,591 Infrastructure 11,508,183 994,671 - 12,502,854 , Total accumulated depreciation 29,635,071 3,410,511 (1,040,427) 32,005,155 Total capital assets, being depreciated, net 30,676,055 (1,712,193) (351,004) 28,612,858 , Governmental activities capital assets, net $ 39,705,979 $ 1,795,400 $ (372,758) $ 41,128,621 56 CITY OF LA PORTE, TEXAS • Notes to the Financial Statements - Continued September 30, 2004 4. Capital Assets - Continued Beginning Ending Balance Retirements & Balance 10/01/03 Additions Adjustments 09/30/04 Business -type activities: Capital assets, not being depreciated: Land $ 2,350,478 $ 389,372 $ - $ 2,739,850 Construction in progress 165,981 457,651 = 623,632 Total capital assets, not being depreciated 2,516,459 847,023 3,363,482 Capital assets, being depreciated Buildings and improvements 1,157,184 - (104,302) 1,052,882 Improvements other than buildings 62,085,457 121,303 (6,187) 62,200,573 Machinery and equipment 499,049 19,769 (55,758) 463,060 Total capital assets, being depreciated 63,741,690 141,072 (166,247) 63,716,515 Less accumulated depreciation for: Buildings and improvements 606,569 51,162 - 657,731 Improvements other than buildings 30,084,389 1,889,011 - 31,973,400 Machinery and equipment 374,056 25,127 (60,912) 338,271 Total accumulated depreciation 31,065,014 1,965,301 (60,912) 32,969,403 Total capital assets, being depreciated net 32,676,676 (1,824,229) (105,335) 30,747,112 Business -type activities capital assets, net $ 35,193,135 $ (977,206) $ (105,335) $ 34,110,594 1 .1 ii 1 57 • CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 4. Capital Assets - Continued Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 311,383 Public safety 294,343 Public works 1,082,052 Culture and Recreation 573,086 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 1,147,524 Total depreciation expense - governmental activities $ 3,408,388 Business -type activities: Water & Sewer Services $1,702,281 Airport 128,543 Golf Course 159,880 Sylvan Beach Pavillion 17,858 Total depreciation expense - business -type activities $ 2,008,562 The City has active construction projects as of September 30, 2004. Total accumulated commitments for ongoing capital projects are composed of the following: Utility Capital Projects Fund Sylvan'Beach Fund Airport Fund Hotel/Motel Occupancy Tax Fund Section 4B Sales Tax TIRZ Fund General CIP S1998 General Obligation Bonds S2000 General Obligation Bonds S2002 General Obligation Bonds Total Remaining Construction Contract In Progress Balance $ 526,082 $ 10,622 34,905 - 5,786 - 33,765 - 748,445 - 20,491 - 678,315 105,900 128,153 114,444 195,747 - 3,090,153 - $ 5,461,842 $ 230,966 58 • CITY OF LA PORTE, TEXAS • Notes to the Financial Statements - Continued September 30, 2004 5. Long Term Liabilities At September 30, 2004, bonds payable consisted of the following individual issues: Governmental Business -type 1994 General Obligation Refunding Serial Bonds, due in annual installments of $680,000 to $1,090,000 through February 15, 2005; interest at 4.30% to 5.1% 1994 Waterworks and Sewer System Refunding Revenue Bonds, due in annual installments of $95,000 to $455,000 through March 16, 2006; interest at 4.4% to 5.25% 1998 General Obligation Serial Bonds; due in annual installments of $125,000 through March 15, 2019; interest at 4.25% to 6.25% 1998 Waterworks and Sewer System Revenue Bonds due in annual installments of $125,000 through March 15, 2009; interest at 4.35% to 6.2% 1999 La Porte Area Water Authority Contract Revenue Refunding Bonds due in annual payments through March 15, 2017; interest at 7% to 7.5% 2000 General Obligation Serial Bonds due in annual installments of $150,000 through March 15, 2010, changing to $175,000 through March 15, 2020; interest at 5% to 7% 2000 Certificates of Obligation due in annual installments of $150,000 through March 15, 2020; interest at 5% to 7% 2002 Limited Tax Bonds due in annual installments of $270,000 through March 15, 2025; interest at 4.25% to 5% Total Bonds Payable 11 $ 905,000 $ 585,000 1,875,000 625,000 6,904,178 2,650,000 2,400,000 5,400,000 $13,230,000 $ 8,114,178 1 59 r-I L7 CITY OF LA PORTE, TEXAS — Notes to the Financial Statements - Continued September 30, 2004 6. Long Term Liabilities - Continued Changes in Outstanding Debt - Transactions for the year ended September 30, 2004 are summarized as follows: Balance Issues Balance October 1, or Payments or September 30, Due within 2002 Additions Expenditures 2003 one year Governmental Type Activities General Obligation Bonds $ 12,170,000 - $ 1,340,000 $ 10,830,000 $ 1,671,536 Certificates of Obligation 2,550,000 - 150,000 2,400,000 280,050 Total governmental fund types 14,720,000 - 1,490,000 13,230,000 1,951,586 Business Type Activities Revenue Bonds Payable 9,115,000 - 985,000 8,130,000 1,379,750 Less: Unamortized Refunding Loss (31,642) - (15,821) (15,821) (15,822) Total business fund types 9,083,358 - 969,179 8,114,179 1,363,928 Total of all fund types $ 23,803,358 $ - $ 2,459,179 $ 21,344,179 $ 3,315,514 General Obligation Bonds and Certificates of Obligation - General Obligation Bonds are direct obligations issued on a pledge of the general taxing power for the payment of the debt obligations of the City. General Obligations Bonds and Certificates of Obligation require the City to compute, at the time other taxes are levied, the rate of tax required to provide (in each years bonds are outstanding) a fund to pay interest and principal at maturity. The City is in compliance with this requirement. Arbitrage provisions of the Internal Revenue Tax Act of 1986 require the City to rebate excess arbitrage earnings from bond proceeds to the federal government. As provided for by the bond indentures, this amount has been recorded as a liability in the General Fund for the benefit of the federal government and will be paid as required by applicable regulations. Certain General Obligation Bonds and Certificate of Obligations Bonds are to be repaid by revenues of the proprietary funds. .E CITY OF LA PORTE, TEXAS ' Notes to the Financial Statements - Continued September 30, 2004 5. Long Term Liabilities - Continued Revenue Bonds - ' Water and Sewer Revenue Bonds constitute special obligations of the City solely secured by a lien on and pledge of the net revenues of the water and sewer system. The Revenue Bonds are collateralized by the revenue of the water and sewer system and the various special funds established by the bond ordinances. The ordinances provide that the revenue of the system is to be used first to pay operating and maintenance expenses of the system and second to establish and maintain the Revenue Bond funds. Remaining revenues may then be used for any lawful purpose. The ' ordinances also contain provisions, which, among other items, restrict the issuance of additional Revenue Bonds unless the special funds noted above contain the required amounts and certain financial ratios are met. The City is in compliance with all significant financial requirements as of September 30, 2003. ' Below is a reconciliation of the various restricted cash and cash investments: Current Maturities of Revenue Bonds, $ 985,000. Reserve for Revenue Bond Retirement 1,199,560 ' Total Reserve for Revenue Bond Retirement 2,184,560 ' Customer Deposits Payable Total Restricted Cash and Cash Investments 368,730. as of September 30, 2002 $ 2,553,290 1 1 1 1 61 0 CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 5. Long Term Liabilities - Continued Annual Requirements to Retire Debt Obligations - The annual aggregate maturities for each bond type for the years subsequent to September 30, 2004, are as follows: General Obligation Bonds Governmental Activities Business -type Activities Year Ending September 30 Principal Interest Principal Interest Total 2005 $ 1,180,000 $ 491,535 $ - $ - $ 1,671,535 2006 545,000 444,408 - - 989,408 2007 545,000 414,620 - - 959,620 2008-2012 2,775,000 1,663,122 - - 4,438,122 2013-2017 2,850,000 1,023,009 - - 3,873,009 2018-2022 2,125,000 411,868 - - 2,536,868 2023-2026 810,000 60,615 - - 870,615 Total $10,830,000 $ 4,509,177 $ - $ - $15,332,177 Certificate of Obligations Governmental Activities Business -type Activities Year Ending September 30 Principal Interest Principal Interest Total 2005 $ 150,000 $ 130,050 $ - $ - $ 280,050 2006 150,000 119,550 - - 269,550 2007 150,000 109,050 - - 259,050 2008-2012 750,000 400,500 - - 1,150,500 2013-2017 750,000 206,250 - - 956,250 2018-2020 450,000 33,750 - - 483,750 Total $ 2,400,000 $ 999,150 $ - $ - $ 3,399,150 Revenue Bonds Governmental Activities Business -type Activities Year Ending September 30 Principal Interest Principal Interest Total 2005 $ - $ - $ 985,000 $ 394,749 $ 1,379,749 2006 - - 715,000 349,431 1,064,431 2007 - - 585,000 314,263 899,263 2008-2012 - - 2,895,000 1,086,606 3,981,606 2013-2017 - - 2,950,000 326,144 3,276,144 Total - - $ 8,130, 000 $ 2,471,193 $10,601,193 1 11 62 F 1 1 1 CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 5. Long Term Liabilities - Continued Bonds Authorized and Unissued - At September 30, 2004, the City had $2,900,000 in Certificate of Obligations Bonds which were authorized and unissued. Defeased Bonds Outstanding - In 1994, the City defeased certain general obligation and revenue bonds by placing the proceeds of the new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. In the 1994 refunding of the revenue bonds, the difference between the reacquisition price and the net carrying amount of the old debt was $189,855 and is being amortized over the life of the new debt, which was 12 years. The unamortized balance at September 30, 2004 is $15,822. On September 30, 2000, $2.45 million of general obligation bonds .and $900 thousand of revenue bonds outstanding are considered defeased. -On October 6, 1999, the La Porte Area Water Authority issued $8.08 million in Contract Revenue Refunding Bonds, Series 1999, with an average interest rate of 5.159 percent to refund $8.08 million in outstanding Water Supply Contract Revenue Bonds, Series I and II, 1998 with an average interest rate of 6.94 percent. The Authority completed the current refunding to reduce its total debt service payments over the next 18 years by $1.476 million and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $1.048 million. The bonds are payable from the net revenues of the Authority. The bonds are in $5,000 denominations. The Authority is in compliance with all significant requirements and restrictions contained in the bond resolution. S. Pension Benefits Plan Descriptions The City provides pension benefits for all of its full-time employees through a non-traditional, joint contributory, hybrid defined benefit plan (the Plan) in the statewide Texas Municipal Retirement System (TMRS), one of 794 administered by TMRS, an agent multiple -employer public employee retirement system. A copy of the 2003 TMRS Comprehensive Annual Financial Report may be obtained by writing to P.O. Box 149153, Austin, Texas 78714. In addition, the city provides pension benefits to its volunteer firemen through the Texas Statewide, Emergency Services Personnel Retirement Fund, one of 150 administered by the Fire Fighters' Pension Commissioner, a cost sharing multiple employer pension system. That report may be obtained by writing to Firefighters Pension Commission, P.O. Box 12577, Austin, Texas 78711. Both Plans are more fully described below. Texas Municipal Retirement System Benefits depend upon the sum of the employee's contributions to the Plan, with interest, and the City financed monetary credits, with interest. At the date the Plan began, the city granted monetary credits for service rendered before the Plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to the establishment of the Plan. Monetary credits for service since the Plan began are a percentage (100%, 150%, or 200%) of the employee's accumulated contributions. In addition, the City can grant annually another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the Plan began, would be the total monetary credits and employee's contributions accumulated with interest if the employee's contribution rate and City's matching percentage had always been in existence and if the employee's salary had always been the average of his salary in the last three years and that are one year before the effective date. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer -finance monetary credits with interest were used to purchase an annuity. 63 i CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 6. Pension Benefits - Continued Members can retire at ages 60 and above with 10 or more years of service or with 20 years of service regardless of age. The Plan also provides death and disability benefits. A member is vested after 10 years. The Plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing the TMRS and within the actuarial constraints also in the statutes. Contributions The contribution rate for employees is 7 percent and the City's matching ratio is currently 2 to 1, both as adopted by the governing body of the City. Under the state law governing TMRS, the actuary annually determines the City's contribution rate. This rate consists of the normal cost contribution rate and the prior service contribution rate, both of which are calculated to be a level percentage of payroll from year to year. The normal cost contribution rate financing the currently accruing monetary credits is due to the City's matching percentage, which is the obligation of the City as of an employee's retirement date, not at the time the employee's contributions are made. The normal cost contribution rate is the actuarially determined percentage of payroll necessary to satisfy the obligation of the City to each employee at the time his retirement becomes effective. The prior service contribution rate amortizes the unfounded (over funded) actuarial liability (asset) over the Plan's 25-year amortization period. When the City periodically adopts updated service credits and increases in annuities, in effect, the increased unfounded actuarial liability is to be amortized over a new 25-year period. Currently, the unfounded actuarial liability is being amortized over the 25-year period, which began January 1998. The unit credit actuarial cost method is used for determining the City's contribution rate. Both the employees and the City make contributions monthly. Since the City needs to know its contribution rate in advance for budgetary purposes, there is a one-year delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. A summary of actuarial assumptions is presented below: Actuarial Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Investment Rate of Return Projected Salary Increases Inflation Rate Cost of Living Adjustment Annual Fiscal Pension Year Cost (APC) 2001 $ 1,668,836 2002 1,665,210 2003 1,802,728 December 30, 2003 Unit Credit Level Percent of Payroll 25 Years - Open Period Amortized Cost 7% None None None Percentage of APC Net Pension Contribution Obligation 100% 100% - 100% - Additional supplementary three-year trend information may be found on page 69. 64 CITY OF LA PORTE, TEXAS r Notes to the Financial Statements - Continued September 30, 2004 6. Pension Benefits - Continued Texas Statewide Emergency Services Personnel Retirement Fund rSummary of Significant Accounting Policies and Plan Asset Matters The Texas Statewide Emergency Services Personnel Retirement Fund financial statements are prepared using the accrual basis of accounting. The Fund's fiscal year is from September 1 through the following r August 31. Contributions are recognized as revenues in the period in which they are due to the Fund. No contributions applicable to the H.B. 258 Texas Local Fire Fighters Retirement Act (TLFFRA) are included herein. ' The Texas Statewide Emergency Services Personnel Retirement Fund investments are reported at a smoothed market -related value. rPlan Description The Fire Fighters' Pension Commission is the administrator of the Texas Statewide Emergency Services Personnel Retirement Fund, a cost sharing multiple employer pension system established and administered by the State of Texas to provide pension benefits for emergency services personnel who serve without monetary - remuneration. The Texas Statewide Emergency Services Personnel Retirement Fund is considered a component unit of the State of Texas financial reporting entity and is included in the State's financial reports as a pension trust fund. At August 31, 2002 there were 173 member departments participating in the pension system. The following table summarizes the pension system membership as of August 31, 2002: r Retirees and beneficiaries currently receiving benefits 1,422 Terminated members entitled to benefits but not yet receiving those 1,629 Current active members (vested and non -vested) 4,618 rThe pension system was created by Senate Bill 411, 65th Legislature, Regular Session (1977). Benefit provisions include retirements benefits as well and death and disability benefits. Members are vested at the beginning of the fifth year of service, at 5% per year of service for the first ten years and 10% for each of the next five years of service. Upon reaching age 55, a vested member may retire and receive a monthly pension equal to his vested percentage multiplied by six times the governing body's average monthly contribution over the member's years of qualified service. For years of service in excess of 15 years, this monthly benefit is increased at the rate of 7% compounded annually. ' Death and disability benefits are dependent on whether or not the member was engaged in the performance of duties at the time of death or disability. Death benefits include a lump -sum amount and continuing monthly payments to a member's surviving spouse and/or dependents. rContribution requirements were established by S.B. 411, 65th Legislative, Regular Session (1977) and no contributions are required by members. The governing bodies of participating department members are required to contribute at least $12 per month for each member. Additional contributions may be necessary ' to pay for unfunded prior service costs and "buybacks" of vested benefits. The State may also be required to make a limited amount of annual contributions to make the fund actuarially sound. ' Contributions Required and Contributions Made As previously stated the required contribution of at least $12 per member per month is not actuarially determined. The minimum contribution amount was established by S.B. 411, 65th Legislature, Regular r Session (1977). For the fiscal year ending August 31, 2002, contributions totaling $1,768,059 for dues and prior service were paid into the fund by the governing bodies sponsoring the member participating departments. The contributions made were equal to the contributions required. 65 CITY OF LA PORTE, TEXAS Ir Notes to the Financial Statements - Continued September 30, 2004 S. Pension Benefits - Continued The purpose for the biennial actuarial valuations is to test the adequacy of the monthly contributions and determine if they are adequate to fund the benefits that are promised. The actuarial valuation at August 31, 2002 revealed for the first time an inadequacy of the expected contributions. The total contributions expected from the governing bodies sponsoring the members for the fiscal year ending August 31, 2003 are $946,388 less than the minimum required contributions for that fiscal year, based on amortizing the unfunded actuarial accrued liability over 30 years. 7. Interfund Transfers Interfund transfers during the year ended September 30, 2004 were as follows: General Fund Non -Major Governmental Internal Service Debt Service Capital Projects utility La Porte Area Water Authority Golf Sylvan Beach 2000 GO Bond Hotel/Motel Airport Total Transfers In Transfers Out $ 383,243 $ 862,766 1,034,797 28,269 - 862,577 1,250,000 1,680,033 - 54,650 35,000 36,644 20,000 4,605 862,577 - - 55,000 - 1,073 $ 3,585,817 $ 3,585,617 C� CITY OF LA PORTE, TEXAS ' Notes to the Financial Statements - Continued September 30, 2004 8. Risk Management ' The City is exposed to various risks related to torts: theft, damage to, and destruction of assets; errors and omissions; and natural disasters. The City's risk management program encompasses various means of protecting the City against loss by obtaining property, casualty, and liability coverage from participation in a risk pool. The participation of the City in the risk pool is limited to the payment of premiums. Further information regarding the pool is provided below. Settled claims have not exceeded insurance coverage in any of the previous three fiscal years. There has not been any significant reduction in insurance coverage ' from that of the previous year. Health Insurance Benefits ' The City self -insures a portion of health insurance benefits provided to employees. The City records revenues and expenses for providing employee health coverage in an Internal Service Fund and accrues the estimated incurred but not reported claims. Charges are assessed to various City divisions based on ' their full-time employee count. Activity during the year included: Revenues: Charges to divisions $ 2,094,734 Charges to employees 278,764 ' Charges to retirees 26,994 Charges to COBRA participants 4,009 Total revenues 2,404,501 ' Expenses: Claims administration 53,371 Claimes incurred 3,304,198 Re -insurance premiums 190,227 Other benefits - Consulting fees 4,787 Total health services expenses $ 3,552,583 Included in the claims paid amount is $226,387 for incurred but not reported claims. Settled claims have not exceeded insurance coverage in any of the previous four fiscal years. Estimates of claims payable and of claims incurred but not reported at September 30, 2003 are reflected as liabilities of the Internal Service Fund. Because actual claims liabilities depend on such complex factors as inflation, changes in legal requirements, and damage awards, the process used in computing claims liability is an estimate based on historical claims. Analysis of claims liability for the fiscal years 2001, 2002 and 2003 are ' as follows: Beginning Current Payment End of ' of Year Year for Year Accrual Estimates Claims Accrual Fiscal Year 2002 $ 218,609 $ 2,043,304 $ 2,077,832 $184,081 ' Fiscal Year 2003 184,081 2,194,142 2,214,771 163,452 Fiscal Year 2004 163,452 3,304,198 3,241,263 226,387 67 0 CITY OF LA PORTE, TEXAS Notes to the Financial Statements - Continued September 30, 2004 8. Risk Management - Continued Risk Pool The City is a member of the Texas Municipal League Intergovernmental Risk Pool, an unincorporated association of 1,860 political subdivisions of the State of Texas. The Pool contracts with a third party administrator for administration, investigation and adjustment services in the handling of claims. All loss contingencies, including claims incurred but not reported, if any, are recorded and accounted for by the Pool. 9. Commitments and Contingent Liabilities From time to time, the City is a defendant in legal proceedings relating to its operations as a municipality. In the best judgment of the City's management, the outcome of any pending legal proceedings will not have an adverse effect on the accompanying general purpose financial statements. The City participates in certain federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as the result of these audits is not believed to be material. 10. Post -Employment Benefits In addition to pension benefits described in Note 6, employees who retire from the City and are eligible for pension benefits shall be provided medical coverage by the City to the extent and subject to the conditions of such coverage that is provided to current employees of the City. This coverage for retired employees is provided at the option of City council through adoption of the annual budget. The City funds these premiums in the same manner as it funds similar premiums for current employees. Employees, who retired from the City before October 1, 1992, have 100% of their coverage paid for by the City. Employees who retired from the City in 1993 and up to December 31, 1999, with 20 or more years of service have 100% of their coverage paid for by the City. Prior to January 1, 2000, employees who have 15 years but less than 20 years of service are required to pay for 10% of the cost and employees who have 10 years but less than 15 years of service are required to pay for 20% of their costs. For employees who retire after January 1, 2000 the following applies: Years of Service with City Retiree Cost CRY Cost Retiree Cost Per Year At least 10 but less than 15 years 55% 45% $2,750 At least 15 but less than 20 years 25% 75% 1,250 At least 20 years 0% 100% 0 The costs of providing these benefits and number of retired employees are as follows: Dependent Number of Total Cost City's Cost Coverage Cost Retired Employees $197,750 $175,250 $22,500 43 Retirees who are entitled to receive retirement benefits under the City's retirement plan may purchase continued health benefits for the retiree and the retiree's dependents. The person must inform the City no later than the day on which the person retires that the person elects to continue coverage. If the retiree elects to continue coverage for himself and/or his dependents, once he decides to drop either type of coverage, the person and/or his dependents become eligible for coverage at the next open enrollment period. The level of coverage provided is the same level of coverage provided to current employees. The City's coverage is secondary to Medicare when the person becomes eligible for those benefits. Payment for dependent coverage will be at the same rate as payments for current employees. m ' Required Supplementary Information Texas Municipal Retirement System Schedule of Funding Progress For the Last Three Fiscal Years ' Actuarial Accrued UAAL as a ' Actuarial Liability Unfunded Covered Percentage of Covered Actuarial Value of (AAL) - AAL Funded Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c) ((b-a)/c] ' 2000 $ 37,940,360 $ 44,026,509 $ 6,085,549 86.2% $13,756,651 44.2 2002 39,061,267 45,901,424 6,840,157 85.1 14,198,959 48.2 ' 2003 42,858,965 52,192,452 9,333,487 82.1 14,457,226 64.6 1 L I! 1 1 69 LJ 0 (A re wo 70 ' COMBINING FINANCIAL STATEMENTS ' NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds ' Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. ' Grant Fund — This fund is used to account for funds received from another government or organization to be used for a specific purpose, activity or facility. ' Community Investment Fund — This fund is used to account for funds received and expended on community beautification and revitalization programs. t Hotel / Motel Occupancy Tax Fund — This fund is used to account for the accumulation of resources from the Hotel/Motel Tax assessment levied by the City. These monies are to be spent to promote the development or progress of the City within the guidelines set forth on disposition of revenues collected under the authority of the Texas Hotel Occupancy Act (Article 1269; Vernon's Texas Civil Statutes). Tax Increment Reinvestment Zone One Fund (TIRZ) — This fund is used to account for the disposition of property taxes collected on specific parcels within the boundaries of the TIRZ for the exclusive benefit of the ' City's capital improvement programs. Capital Projects Funds ' Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. ' Capital Improvements Fund — This fund is used to account for capital projects that are normally small in nature and effect the general operation of the City. Transportation and Other Infrastructure Fund — This fund is used to account for the construction and expansion ' of roads, bridges, sidewalks and other major infrastructure capital improvements. 1998 General Obligation Bonds Fund — This fund is used to account for the proceeds and expenditures related to drainage and street improvements throughout the City. ' 2000 Certificate of Obligation Bonds Fund — This fund is used to account for the proceeds and expenditures for construction of the community library. 2000 General Obligation Bonds Fund — This fund is used to account for the proceeds and expenditures for construction to renovate the city hall building, public swimming pool and two fire stations. ' 2002 General Obligation Bonds Fund — This fund is used to account for the proceeds and expenditures for the construction of a wastewater treatment plant. 1 71 CITY OF LA PORTE, TEXAS Combining Balance Sheet Nonmajor Governmental Funds 1 September 30, 2004 1 Special Revenue Funds Hotel/Motel Tax Increment Community Occupancy Reinvestment Capital Grant Investment Tax Zone One (TIRZ) Totals Projects ASSETS Cash and cash equivalents $ (26,245) $ 59,603 $ 562,904 $ 96,361 $ 692,623 $ 733,3 Investments - 24,349 229,963 39,366 293,678 302, Taxes receivable Grant receivable - - - - - - - ' 4,711 Other receivables 130.451 - - - 130,451 Accrued interest receivable 12 139 1,304 242 1,697 1,695 Total assets 104,218 84,091 794,171 135,969 1,118,449 1,041, LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued salaries payable 5,281 55 7,128 - 8,608 - 2,175 - 16,119 7,128 205,9 3 Retainage payable - - 1 Deferred Revenue Total liabilities 90,043.00 - 102,452 55 - - 90,043 206,1 113,290 2,175 8,608 Fund Balances: Reserved for. Capital projects - - - J Unreserved 1,766 84,036 785,563 133,794 1,005,159 835, Total fund balances 1,766 64,036 785,563 133,794 1,005,159 835,720 Total liabilities and fund balances $ 104,218 $ 84,091 $ 794,171 $ 135,969 $ 1,118,449 J 11 1 1 u 72 1 Capital Projects Funds Transportation 1998 General 2000 Certificate 2000 General 2002 General Total Nonmajor B Other Obligation of Obligation Obligation Obligation Governmental Infrastructure Bonds Bonds Bonds Bonds Totals Funds ' $ 533,022 $ 1,071,481 $ 340,284 $ 908,018 $ 1,854,692 $ 5,440,866 $ 6,133,489 217,756 437,733 1,855 339,726 121,059 1,420,191 1,713,869 - 4,716 4,716 ' 130,451451 1,236 2,483 11 1,926 686 8,037 9,734 752,014 1,511,697 342,150 1,249,670 1,976,437 6,873,810 7,992,259 ' 24,028 25,720 25,714 150,054 431,470 447,589 7,128 168 168 _ _ - _ _ _ 90,043 ' - 24,028 25,720 25,714 150,054 431,638 544,928 ' 752,014 1,487,669 316,430 1,223,956 1,826,383 6,442,172 7,447,331 752,014 1,487,669 316,430 1,223,956 1,826,383 6,442,172 7,447,331 $ 752,014 $ 1,511,697 $ 342,150 $ 1,249,670 $ 1,176,437 $ 6,1173,810 $ 7,992,259 ' 1 73 • ® 1 CITY OF LA PORTE, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds 1 For the Year Ended September 30, 2004 1 Special Revenue Funds Hotel/Motel Tax Increment Community Occupancy Reinvestment Capital Grant Investment Tax Zone One (TIRZ) Totals Projects REVENUES Property taxes $ - $ - $ - $ 15,764 $ 15,764 $ - 1 Intergovemmental 562,576 - - - 562,576 6,100 Sales taxes Other taxes 0 0 - - 232,023 - 232,023 - - 1 Interest 0 2,788 9,111 1,625 13,524 29,246 Charges for services - - - - (1,240) Total revenues 562,576 2,788 241,134 17,389 823,887 34,106 1 EXPENDITURES Current: Administration 560,810 82,158 117,231 32,066 792,265 1,400,457 Capital Outlay - 540,729 2,482 (31) 543,180 1 Total expenditures 560,810 622,887 119,713 32,035 1,335,445 1,400,457 Excess (deficiency) of revenues over expenditures 1,766 (620,099) 121,421 (14,646) (511,558) (1,366,351) OTHER FINANCING SOURCES (USES) - - - " Transfers in - 300,000 - - 300,000 500,000 Transfers out - - (55,000) - (55,000) (1,948,091) Total other financing sources (uses) - 300,000 (55,000) - 245,000 (1,448,091) Net change in fund balances 1,766 (320,099) 66,421 (14,646) (266,558) (2,814,442)' Fund balances -beginning - 404,135 719,142 148,"0 1,271,717 3,650,162 Fund balances ending $ 1,766 $ 84,036 $ 785,563 $ 133,794 $ 1,005,159 $ 835,720 . 1 7 I 7 74 1 F L 1 1 1 k 1 1 Capital Projects Funds Transportation 1998 General 2000 Certificate 2000 General 2002 General Total Nonmajor & Other Obligation of Obligation Obligation Obligation Governmental Infrastructure Bonds Bonds Bonds Bonds Totals Funds $ - $ - $ - $ - $ - $ - $ 15,764 - - - - - 6,100 568,676 - - - - - - 232,023 15,375 17,876 4,075 11,057 26,440 104,069 117,593 - - - - - (1,240) (1,240) 15,375 17,876 4,075 11,057 26,440 108,929 932,816 172,000 - - - 1,572,457 2,364,722 - 114,284 - 2,525 1,913,352 2,030,161 2,573,341 172,000 114,284 - 2,525 1,913,352 3,602,618 4,938,063 (156,625) (96,408) 4,075 8,532 (1,886,912) (3,493,689) (4,005,247) 862,577 412,692 1,775,269 2,075,269 (625,000) - - - - (2,573,091) (2,628,091) (625,000) - - 862,577 412,692 (797,822) (552,822) (781,625) (96,408) 4,075 871,109 (1,474,220) (4,291,511) (4,558,069) 1,533,639 1,584,077 312,355 352,847 3,300,603 10,733,683 12,005,400 $ 752,014 $ 1,487,669 $ 316,430 $ 1,223,956 $ 1,826,383 $ 6,442,172 $ 7,447,331 ev, EW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 • • SCHEDULE OF REVENUES, EXPENDITURES and CHANGES IN FUND BALANCE — BUDGET and ACTUAL Debt Service Fund Special Revenue Funds Capital Projects Funds 77 • ® 1 CITY OF LA PORTE, TEXAS Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2004 Variance with Final Budget 1 Budgeted Amounts Positive Original Final Actual Amounts (Negative) REVENUES Property taxes $1,866,361 $1,866,361 $ 1,952,758 $ 86,397 Industrial payments Interest - 28,090 28,090 24,360 ' (3,730) Total revenues 1,894,451 1,894,451 1,977,118 82,667 1 EXPENDITURES Debt Service: 1 Principal 1,490,000 1,490,000 1,490,000 - Interest 699,834 699,834 699,834 - Total expenditures 2,189,834 2,189,834 2,189,834 - 1 Excess (deficiency) of revenues over expenditures (295,383) (295,383) (212,716) 82,667 OTHER FINANCING SOURCES (USES) Transfers in - - Net change in fund balances (295,383) (295,383) (212,716) 82,667 1 Fund balances —beginning 1,797,213 1,797,213 1,797,213 - Fund balances —ending 1,501,830 $1,501,830 $ 1,584,497 $ 82,667 78 1 1 1 1 • CITY OF LA PORTE, TEXAS • Grant Special Revenue Fund Schedule of Revenues, Expenditures and Changes ih Fund Balance Budget and Actual For the Year Ended September 30, 2004 Budgeted Amounts Original Final REVENUES Actual Amounts Variance with Final Budget Positive (Negative) Intergovernmental - $ 352,136 562,576 $ 210,440 Interest - - - - EXPENDITURES Current: Administration - 225,044 560,610. (335,766) Capital Outlay - - - - Total expenditures - 225,044 560,810 (335,766) Excess (deficiency) of revenues over . expenditures - 127,092 1,766 (125,326) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances - 127,092 1,766 (125,326) Fund balances —beginning - - - - Fund balances —ending $ - $ 127,092 $ 1,766 $ (125,326) 79 • 0 1 CITY OF LA PORTE, TEXAS Community Investment Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For the Year Ended September 30, 2004 Variance with Final Budget Budgeted Amounts Positive Original Final Actual Amounts (Negative) REVENUES Interest $ 8,390 $ 8,390 $ 2,788 $ (5,602) EXPENDITURES Current: Administration 110,000 120,000 82,158 37,842 Capital Outlay 10,000 550,000 540,729 9,271 Total expenditures 120,000 670,000 622,887 47,113 Excess (deficiency) of revenues over expenditures (111,610) (661,610) OTHER FINANCING SOURCES (USES) Transfers in - 300,000 Transfers out - - 620,099 41,511 1 Total other financing sources (uses) - 300,000 300,000 - Net change in fund balances (111,610) (361,610) (320,099) 41,511 Fund balances —beginning 404,135 404,135 404,135 - Fund balances —ending 292,525 $ 42,525 $ 84,036 $ 41,511 Del 1 1 I� 1 1 • CITY OF LA PORTE, TEXAS • Hotel/Motel Occupancy Tax Special Revenue Fund Schedule of Revenues, Expenditures and Changes ih Fund Balances Budget and Actual For the Year Ended September 30, 2004 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Other taxes $ 250,000 $ 250,000 $ 232,023 $ (17,977) Interest 10,100 10,100 9,111 (989) Total revenues 260,100 260,100 241,134 (18,966) EXPENDITURES Current: Administration 144,100 169,100 117,231 51,869 Capital Outlay 25,000 - 2,482 (2,482) Total expenditures 169,100 169,100 119,713 49,387 Excess (deficiency) of revenues over expenditures 91,000 91,000 121,421 30,421 OTHER FINANCING SOURCES (USES) Transfers out (55,000) (55,000) (55,000) - Net change in fund balances 36,000 36,000 66,421 30,421 Fund balances -beginning 713,142 719,142 719,142 - Fund balances -ending $ 749,142 $ 755,142 $ 785,563 $ 30,421 81 • 11 CITY OF LA PORTE, TEXAS Tax Increment Reinvestment Zone One Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2004 REVENUES Property taxes Interest Total revenues EXPENDITURES Current: Administration Capital Outlay Total expenditures Excess (deficiency) of revenues over . expenditures Net change in fund balances Fund Balances —beginning Fund Balances riding Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 14,000 $ 14,000 $ 15,764 $ 1,764 2,090 2,090 1,625 (465) 16,090 16,090 17,389 1,299 30,000 30,000 32,066 (2,066) - 486,435 (31) 486,466 30,000 516,435 32,035 484,400 (13,910) (500,345) (14,646) 485,699 (13,910) ,.(500,345) (14,646) 485,699 148,440 .148,440 148,440 - $ 134,530 $ (351,905) $ 133,794 $ 485,699 82 ' • • CITY OF LA PORTE, TEXAS Capital Projects Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2004 ' Variance with Final Budget ' Budgeted Amounts Original Final Actual Amounts Positive (Negative) REVENUES Charges for Services $ - $ - $ (1,240) $ - ' Intergovernmental - - 6,100 6,100 Interest 65,180 65,180 29,246 (35,934) Total revenues 65,180 65,180 34,106 (29,834) ' EXPENDITURES Current: ' Administration Capital Outlay - - 95 1,190,400 1,993,5457 - 1,400, - 593,138 Total expenditures 1,190,400 1,993,595 1,400,457 593,138 Excess (deficiency) of revenues over ' expenditures (1,125,220) (1,928,415) (1,366,351) 563,304 OTHER FINANCING SOURCES (USES) Transfers in - 500,000 500,000 Transfers out (862,577) (1,948,091) (1,948,091) Net change in fund balances (1,987,797) (3,376,506) (2,814,442) 562,064 ' Fund balances —beginning 3,650,162 3,650,162 3,650,162 Fund balances —ending $ 1,662,365 $ 273,656 $ 835,720 $ 562,064 J 83 CITY OF LA PORTE, TEXAS Transportation and Other Infrastructure Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2004 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 24,630 $ 24,630 $ 15,375 $ (9,255) EXPENDITURES Current: Administration 125,000 125,000 172,000 (47,000) Total expenditures 125,000 125,000 172,000 (47,000) Excess (deficiency) of revenues over expenditures (100,370) (100,370) (156,625) (56,255) OTHER FINANCING SOURCES (USES) Transfers out - (625,000) (625,000) - Net change in fund balances (100,370) (725,370) (781,625) (56,255) Fund balances —beginning 1,533,639 1,533,639 1,533,639 - Fund balances —ending $ 1,433,269 $ 808,269 $ 752,014 $ (56,255) 84 • CITY OF LA PORTE, TEXAS 1998 General Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2004 Variance with Final Budget Budgeted Amounts Original Final Actual Amounts Positive (Negative) REVENUES Interest $ 5,000 $ 5,000 $ 17,876 $ 12,876 EXPENDITURES Current: Capital Outlay 217,291 217,291 114,284 103,007 Excess (deficiency) of revenues over expenditures (212,291) (212,291) (96,408) 115,883 Net change in fund balances (212,291) (212,291) (96,408) 115,883 Fund balances —beginning 1,584,077 1,584,077 1,584,077 - ' Fund balances —ending $ 1,371,786 $ 1,371,786 $ 1,487,669 $ 115,883 11 1 1 85 CITY OF LA PORTE, TEXAS 2000 Certificate of Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2004 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ - $ - $ 4,075 $ 4,075 EXPENDITURES Current: Capital Outlay - - Excess (deficiency) of revenues over - 4,075 4,075 expenditures - OTHER FINANCING SOURCES (USES) Transfers out Net change in fund balances - 4,075 4,075 Fund balances —beginning 312,355 312,355 312,355 - Fund balances —ending $ 312,355 $ 312,355 $ 316,430 $ 4,075 86 ' • CITY OF LA PORTE, TEXAS 2000 General Obligation Bonds Fund Schedule of Revenues; Expenditures and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2004 Variance with Final Budget 1 Budgeted Amounts Original Final Actual Amounts Positive (Negative) REVENUES Interest $ 5,000 $ 5,000 $ 11,057 $ 6,057 EXPENDITURES Current: ' Capital Outlay 950,000 200,000 2,525 197,475 Excess (deficiency) of revenues over expenditures (945,000) (195,000) 8,532 203,532 ' OTHER FINANCING SOURCES (USES) Transfers in 862,577 862,577 862,577 - ' Net change in fund balances (82,423) 667,577 871,109 203,532 Fund balances —beginning 352,847 352,847 352,847 - Fund balances —ending $ 270,424 $ 1,020,424 $ 1,223,956 $ 203,532 1 1 1 1 87 • CITY OF LA PORTE, TEXAS 2002 General Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2004 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 50,000 $ 50,000 $ 26,440 $ (23,560) EXPENDITURES Current: Capital Outlay 120,000 120,000 1,913,352 (1,793,352) Excess (deficiency) of revenues over expenditures (70,000) (70,000) (1,886,912) (1,816,912) OTHER FINANCING SOURCES (USES) Transfers in - 412,692 412,692 - Net change in fund balances (70,000) 342,692 (1,474,220) (1,816,912) Fund balances —beginning 3,300,603 3,300,603 3,300,603 - Fund balances —ending $ 3,230,603 $ 3,643,295 $ 1,826,383 $ (1,816,912) 88 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 SUPPLEMENTARY INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES General Fund These supplementary statements and schedules are included to provide management additional information for financial analysis. 89 0 0 CITY OF LA PORTE, TEXAS General Fund Schedule of Revenues - Budget and Actual Year Ended September 30, 2004 Taxes: Ad valorem: Current Delinquent Industrial Payments Total ad valorem Penalty and interest Sales Taxes Other Taxes Franchise Fees: Electrical Gas Telephone Cable Commercial Solidwaste Total Franchise Fees Charges for Services: Public safety service fees Health and sanitation service fees Culture and recreation fees Other service fees Total Charges for Services Intergovernmental Licenses and permits: Building permits Licenses Total Licenses and permits Investment income Fines and forfeitures Miscellaneous Total revenues Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 8,570,771 $ 8,570,771 140,000 140,000 7,179,487 7,179,487 15, 890, 258 15, 890, 258 95,000 95,000 1,859,760 1,859,760 35,000 35,000 $ 8,917,871 $ 347,100 62,602 (77,398) 6,896,112 (283, 375) 15,876,585 (13,673) 121,194 28,194 1,995,654 135,894 37,955 2,955 1,100,000 1,100,000 1,158,284 58,284 110,000 110,000 147,202 37,202 265,000 265,000 230,287 (34,713) 110,000 110,000 188,548 58,548 20,000 20,000 18,554 (3,446) 1,605,000 1,605,000 1,718,875 113,875 850,829 1,000,829 908,000 1,208,000 414,100 525,179 1,149,288 235,390 3,322,217 2,969,398 350,000 - 899,949 (100,880) 1,157,449 (50,551) 484,320 (40,859) 301,924 66,534 304,285 (2,665,113) 7,586 7,586 190,700 539,499 250,850 (288,649) 26,250 30,270 69,555 39,285 216,950 569,769 320,405 (249,364) 226,770 226,770 149,347 (77,423) 653,950 653,950 554,559 (99,391) 30,000 30,000 $ 24,284,905 $ 23,934,905 32,605 2,605 $ 21,119,050 $ (2,815,655) I 90 1 11 1 J CITY OF LA PORTE, TEXAS0 General Fund Schedule of Expenditures - Budget and Actual Year Ended September 30, 2004 GENERAL GOVERNMENT Administration: 1 Emergency Management: Personal services Supplies ' Other services and charges Capital Outlay Total Emergency Management General Administration: ' Personal services Supplies Other services and charges ' Total General Administration Community Investment: ' Personal services Supplies Other services and charges Total Community Investment ' Human Resources: Personal services Supplies ' Other services and charges Total Human Resources 1 1 Municipal Court: Personal services Supplies and materials Other services -and charges Total Municipal Court Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ 44,361 $ 32,170 $ 12,191 - 2,309 524 1,785 - 29,620 10,315 19,305, 19,639 (19,639) - 76,290 62,648 13,642 399,968 399,968 412,508 (12,540) 8,110 8,110 7,578 532 101,823 126,823 107,298 19,525 509,901 534,901 527,384 7,517 - 28,085 16,373 11,712 - 4,850 2,157 2,693 - 67,065 588 66,477 - 100,000 19,118 80,882 164,888 149,888 182,651 (32, 763) 8,900 8,900 4,626 4,274 138,098 155,082 113,857 41,225 311,886 313,870 301,134 12,736 329,632 332,632 321,652 10,980 14,000 11,930 11,093 837 186,022 185,092 194,508 (9,416) 529,654 529,654 527,253 2,401 Purchasing: Personal services 194,826 Supplies 3,105 Other services and charges 35,017 Total Purchasing 232,948 Management Information Services: Personal services - Supplies - Other services and charges - Total Management Information Svcs - City Secretary: Personal services Supplies and materials Other services and charges Total City Secretary 194,826 186,956 7,870 2,894 2,696 198 35,228 35,023 205 232,948 224,675 8,273 - 45 (45) - 121 (121) - (2,566) 2,566 - (2,400) 2,400 239,195 206,752 9,036 9,038 98,113 91,213 346,344 307,001 214,153 (7,401) 3,154 5,882 97,286 (6,073) 314,593 (7,592) 91 Legal: Personal services Other services and charges Total Legal City Council: Personal services Supplies and materials Other services and charges Total City Council Total Administration Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) 5,000 5,000 208,969 208,969 213,969 213,969 5,000 - 201,066 7,903 206,066 7,903 26,400 26,400 24,488 1,912 10,500 10,500 10,027 473 85,568 85,568 51,864 33,704 122,468 122,468 86,379 36,089 2,267,170 2,431,101 2,266,850 69,727 Finance: Accounting: Personal services 585,204 625,497 624,692 805 Supplies 20,000 20,000 26,284 (6,284) Other services and charges 153,874 153,874 203,321 (49,447) Total Accounting 759,078 799,371 854,297 (54,926) Nondepartmental: Personal services Supplies Other services and charges Capital Outlay Total Nondepartmental Tax Office: Personal services Supplies and materials Other services and charges Total Tax Office Total Finance Planning and Engineering: Planning and Engineering: Personal services Supplies Other services and charges Capital Outlay Total Planning and Engineering Inspection: Personal services Supplies Other services and charges Total Inspection Total Planning and Engineering TOTAL GENERAL GOVERNMENT 210,497 210,497 - 5,000 809,040 850,840 5,000 5,000 1,024,537 1,071,137 346,581 (136,084) 1,910 3,090 433,797 416,843 - 5,000 782,288 288,849 142,627 175,070 172,476 2,594 11,300 11,300 10,088 1,212 175,347 175,647 168,379 7,268 329,274 362,017 350,943 11,074 2,112,889 2,232,525 1,987,528 244,997 626,281 626,281 16,150 19,350 116,380 130,280 758,811 775,911 640,808 (14,527) 14,471 4,879 121,144 9,136 776,423 (512) 495,222 495,222 442,971 52,251 18,995 19,795 14,974 4,821 163,733 186,222 117,816 68,406 677,950 701,239 575,761 125,478 1,436,761 1,477,160 1,352,184 124,966 5,816,820 6,140,776 5,606,662 439,690 92 ' PUBLIC SAFETY: ' ' Fire ' Fire Prevention: Personal services Supplies Other services and charges Capital Outlay Total Fire Prevention ' Emergency medical services: Personal services Supplies Other services and charges ' Capital Outlay Total Emergency Services ' Total Fire Police Police Administration: Personal services ' Supplies Other services and charges Capital Outlay Total Police Administration Police Patrol: ' Personal services Supplies Other services and charges ' Capital Outlay Total Police Patrol Criminal Investigation: Personal services Supplies Other services and charges Capital Outlay Total Criminal Investigation II �I Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) 155,516 155,516 135,119 20,397 10,250 12,750 12,207 543 47,930 45,430 39,803 5,627 213,696 213,696 167,129 26,567 1,123,406 1,080,653 1,116,474 (35,821) 151,270 146,270 116,043 30,227 356,687 368,662 333,607 35,055 20,000 20,000 - 20,000 1,651,363 1,615,585 1,566,124 49,461 1,180,235 1,147,334 1,188,006 (40,672) 120,935 115,001 84,050 30,951 178,076 149,945 149,542 403 1,479,246 1,412,280 1,421,598 (9,318) 3,344,305 3,241,561 3,174,851 66,710 472,770 20,672 210,854 27.431 731,727 3,684,449 148,528 554,277 6,000 4,393,254 1,260,555 47,240 276,294 1,584,089 472,770 20,672 212,962 47.026 753,450 3,629,651 143,349 553,577 6,000 4,332,577 1,165,873 47,240 271,294 1,484,407 472,339 22,494 214,217 25.472 734,522 3,615,300 118,089 504,977 (14,380) 4,223,986 1,182,273 33,452 249,153 1,464,878 431 (1,822) (1,235) 21,554 18,928 14,351 25,260 48,600 20,380 108,591 (16,400) 13,788 22,141 19,529 93 CJ 11 Support Services: Personal services Supplies Other services and charges Total Support Services Total Police TOTAL PUBLIC SAFETY PUBLIC WORKS: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) 699,603 699,603 696,507 3,096 61,230 53,706 32,877 20,829 100,350 100,234 86,923 13,311 861,183 853,543 816,307 37,236 7,570,253 7,423,977 7,239,593 184,284 10,914,558 10,665,538 10,414,5" 250,994 Public Works Administration: Personal services 242,622 242,622 247,369 (4,747) Supplies and materials 4,610 4,610 3,345 1,265 Other services and charges 93,086 93,086 86,598 6,488 Capital outlay - - Total Public Works Administration 340,318 340,318 337,312 3,006 Streets: Personal services Supplies Other services and charges Capital Outlay Total Streets TOTAL PUBLIC WORKS HEALTH AND SANITATION: Residential Solidwaste: Personal services Supplies Other services and charges Capital Outlay Total Residential Solidwaste 1,351,058 1,351,058 1,345,490 110,600 110,600 86,334 625,209 625,209 565,216 70,000 70,000 26,840 2,156,867 2,156,867 2,023,880 2,497,185 2,497,185 2,361,192 5,568 24,266 59,993 43,160 132,987 135,993 889,405 889,405 882,493 6,912 193,539 193,539 184,279 9,260 674,765 674,765 678,195 (3,430) 1,757,709 1,757,709 1,744,967 12,742 Commercial solidwaste: Other services and charges 15,000 15,000 13,997 1,003 TOTAL HEALTH AND SANITATION 1,772,709 1,772,709 1,758,964 13,745 CULTURE & RECREATION: Park Maintenance: Personal services 923,357 923,357 891,822 31,535 Supplies and materials 69,600 71,125 77,905 (6,780) Other services and charges 620,874 621,870 597,480 24,390 Capital outlay 23,500 21,975 6,320 15,655 Total Park Maintenance 1,637,331 1,638,327 1,573,527 64,800 M 1 a • Variance with Final Budget Budgeted Amounts Actual Positive ' Original Final Amounts (Negative) Recreation: Personal services 673,684 673,684 641,297 32,387 Supplies 43,573 44,200 34,103 10,097 Other services and charges 89,334 89,334 81,464 7,870 Capital Outlay - - - - Total Recreation 806,591 807,218 756,864 50,354 Special Services: Personal services 396,205 375,475 372,964 2,511 ' Supplies 29,200 26,600 17,345 9,255 Other services and charges 104,313 65,463 68,378 (2,915) Total Special Services 529,718 467,538 458,687 8,851 ' Parks Administration: Personal Services 407,117 407,117 387,415 19,702 ' Supplies Other Services and Charges 13,350 64,777 12,981 64,777 8,824 59,827 4,157 4,950 Total Parks Administration 485,244 484,875 456,066 28,809 TOTAL CULTURE AND RECREATION 3,458,884 3,397,958 3,245,144 152,814 TOTAL GENERAL FUND $ 24,460,156 $ 24,474,166 $ 23,386,406 $ 993,236 n 1 95 �m 11 1 [I I COMBINING FINANCIAL STATEMENTS IInternal Service Funds ' Internal Service Funds account for the financing of goods or services provided by one City department for another. Motor Pool Fund — This fund is used to account for the cost of operating and maintaining automotive and other equipment used by City departments and the purchase of general government vehicles (those not used by proprietary fund activities). Service charges are billed to departments on a monthly basis to cover all expenses of the fund. ' Technology Fund — This fund is used to account for the cost of operating and maintaining computer software and equipment used by City departments. Service charges are billed to departments on a monthly basis to 1 cover all expenses of the fund. Insurance Fund — This fund is used to account for the provision of group health coverage for all City employees and others eligible under the City's plan, including employee dependents and retirees. I 1 1 1 97 CITY OF LA PORTE, TEXAS Internal Service Funds Combining Statement of Net Assets September 30, 2004 ASSETS Current assets: Cash and cash equivalents Investments Accrued interest receivable Miscellaneous Receivable Material and supplies inventories, at cost Prepaid Expenses Total current assets Noncurrent assets: Capital assets Vehicles and equipment Less accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable Accrued salaries payable Total current liabilities Noncurrent liabilities: Accrued employee separation pay Total noncurrent liabilities Total liabilities Motor Pool Technology Insurance Totals $ 1,514,550 $ 519.393 $ 1,171,273 $ 3,205,216 618,740 212,187 467,113 1,298,040 3,543 1,203 2,660 7,406 79,711 - - 79,711 37,616 - - 37,616 2,254,160 732,783 1,641,046 4,627,989 9,692,920 1,107,484 - 10,800,404 (5,430,888) (886,308) - (6,317,196) 4,262,032 221,176 - 4,483,208 6,516,192 953,959 1,641,046 9,111,197 159,631 51,831 243,667 455,129 29,636 11,919 - 41,555 189,267 63,750 243,667 496,684 108,419 - - 108,419 108,419 - - 108,419 297,686 63,750 243,667 605,103 NET ASSETS Invested in capital assets, net of related debt 4,262,032 221,176 - 4,483,208 Unrestricted (deficit) 1,956,473 669,033 1,397,379 4,022,885 Total net assets $ 6,218,505 $ 890,209 $ 1,397,379 $ 8,506,093 98 CITY OF LA PORTE, TEXAS ' Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Assets September 30, 2004 I Operating revenues: User Fees Operating expenses: Personal services Supplies Other sevices and charges ' Depreciation Total operating expenses ' Operating income (loss) Nonoperating revenues (expenses): Interest income Gain (loss) on sale of equipment Total nonoperating revenues (expenses) Income before contributions and transfers Transfers in Transfers out ' Change in net assets Net assets —beginning Net assets —ending 1 1 Motor Pool Technology Insurance Totals $ 1,900,447 $ 1,221,531 $ 2,404,735 $ 5,526,713 619,896 309,883 537,415 1,467,194 208,563 146,939. - 355,502 158,197 536,771 3,901,703 4,596,671 965,588 98,844 - 1,064,432 1,952,244 1,092,437 4,439,118 7,483,799 (51,797) 129,094 (2,034,383) (1,957,086) 23,074 . 7,029 20,838 50,941 (119,208) 4 - (119,204) (96,134) 7,033 20,838 (68,263) (147,931) 136,127 (2,013,545) (2,025,349) 1,034,797 1,034,797 (27,392) (877) - (28,269) (175,323) 135,250 (978,748) (1,018,821) 6,393,826 754,959 2,376,126 9,524,911 $ 6,218,503 $ 890,209 $ 1,397,378 $ 8,506,090 ' 99 CITY OF LA PORTE, TEXAS Internal Service Funds Combining Statement of Cash Flows September 30, 2004 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from user fees Cash payments to suppliers Cash payments for personal services Net cash provided by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers out to other funds CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Payments for capital acquisitions Proceeds from sale of assets . . Net cash (used) by capital and and related financing activies CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments Investments purchased Investments sold Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Balances -beginning of the year Balances -end of the year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense (Increase) decrease in inventories & prepaid expenses Increase (decrease) in accrued salaries payable Increase (decrease) in accounts payable Increase (decrease) in accrued employee separation Total adjustments Net cash provided by operating activities Motor Pool Technology Insurance Totals $1,820,736 $ 1,221,531 $ 2,404,735 $ 5,447,002 (208,974) (619,352) (3,828,965) (4,657,291) 608,373 - - (608,373) 1,003,389 304,215 (1,961,646) (654,042) 877 - (877) (932,821) (31,460) - (964,281) 81,131 - - 81,131 840,455 31,460 - (871,915) 22,073 6,413 21,436 49,922 - (132,270) (10,695) (142,965) 266,105 - - (266,105) 244,032 125,857 10,741 (359,148) (108,490) 146,021 (916,108) (878,577) 1,614,322 370,382 2,080,798 4,065,502 $1,505,832 $ 516,403 $ 1,164,690 $ 3,186,925 $ 51,797 $ 129,094 $ 2,034,383 $(1,957,086) 965,588 98,844 - 1,064,432 6,594 57,975 - 64,569 7,999 - - 7,999 151,192 6,383 72,738 230,313 3,524 - - 3,524 1,134,897 163,202 72,738 1,370,837 $1,003,389 $ 304,215 $(1,961,645) 100 0 i 1 1 1 1 1 1 1 1 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS These schedules present the capital asset balances related to governmental funds. A capital asset is presented in this schedule when it has been purchased using general governmental resources and is used for general governmental purposes. Assets are recorded at historical cost if purchased, or if historical cost is not available, estimated historical cost, or fair market value on the date donated, if donated. 101 0 0 102 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 is i CITY OF LA PORTE, TEXAS Capital Assets Used in the Operation of Governmental Funds Schedule by Source September 30, 2004 Governmental funds capital assets Land 7,681,339 Buildings 17,844,812 Equipment 1,149,586 Improvements 7,191,272 Infrastructure 23,390,330 Construction in progress 4,148,624 Total governmental funds capital assets $ 61,405,963 . Investment in governmental funds capital assets by source Current Operations $ 13,975,774 Capital Projects 44,430,673 Total governmental funds capital assets $ 58,406,447 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 103 0 0 CITY OF LA PORTE, TEXAS Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activity September 30, 2004 Function and Activity Land Buildings Equipment Improvements General government Administration $ 858,364 $ 6,377,917 $ 292,578 $ 372,917 Finance - - - - Planning 217,002 - 19,922 - Total general government 1,075,366 6,377,917 312,500 372,917 Public safety Fire 563,413 3,784,847 314,437 28,422 Police 43,844 1,032,387 278,972 - Total public safety 607,257 4,817,234 593,409 28,422 Public works Administration 2,760,405 2,032,362 92,676 74,823 Streets - - - - Total public works 2,760,405 2,032,362 92,676 74,823 Cultural and Recreational Parks and recreation 3,238,311 4,617,299 153,001 6,715,109 Total governmental funds capital assets $ 7,681,339 $ 17,844,812 $ 1,151,586 $ 7,191,271 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 104 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Construction Infrastructure in Progress Total $ - $ 42,170 $ 7,943,946 190,488 300,056 727,468 190,488 342,226 8,671,414 - 295,648 4,986,767 - 35,734 1,390,937 - 331,382 6,3771704 6,599,658 3,192,507 14,752,431 16,515,353 - 16,515,353 23,115,011 3,192, 007 31,267,784 15, 089, 060 280,509 84,831 $ 23,390,330 $ 4,146,624 $ 61,405,962 105 • CITY OF LA PORTE, TEXAS Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity For the Year Ended September 30, 2004 Governmental Governmental Fund Capital Fund Capital Assets Assets October 1, Additions/ Retirements/ September 30, Function and Activity 2003 Adjustments Adjustments 2004 General government Administration $ 7,301,096 $ 642,850 $ - $ 7,943,946 Finance 14,583 - (14,583) - Planning 539,495 187,973 - 727,468 Total general government 7,855,174 830,823 (14,583) 8,671,414 Public safety Fire 5,188,618 77,790 (279,640) 4,986,768 Police 1,335,166 55,771 - 1,390,937 Total public safety 6,523,784 133,561 (279,640) 6,377,705 Public works Administration 12,566,348 2,186,083 - 14,752,431 Streets 16,515,353 - - 16,515,353 Total public works 29,081,701 2,186,083 - 31,267,784 Cultural and Recreational Parks and recreation 14,945,786 156,615 (13,340) 15,089,061 Total governmental funds capital assets $ 58,406,445 $ 3,307,082 $ (307,563) $ 61,405,964 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. M2 1 1 1 STATISTICAL SECTION 1 107 • City of La Porte, Texas Government -wide Expenses by Function Last Ten Fiscal Years (Unaudited) Fiscal General Public Public Health & Year Government Safety Works Sanitation 2003 $ 8,625,554 $ 10,771,423 $ 3,638,063 $ 1,823,462 2004 10,428,287 11,648,075 1,267,829 1,906,519 Interest on Culture & Long Term Recreation Debt $ 4,048,974 $ 747,351 4,106,491 689,644 Note: City of La Porte first applied GASB Statement No. 34 in fiscal year 2003; therefore, government -wide financial information for years prior to fiscal year 2003 is not available. City of La Porte, Texas Govemment-wide Revenues Last Ten Fiscal Years (Unaudited) PROGRAM REVENUES GENERAL REVENUES Operating Fiscal Charges for Grants and Investment Loss on Sale Year Services Contributions Taxes Earnings Miscellaneous of Assets 2003 $ 13,106,260 $ 480,037 $ 22,865,250 $ 663,428 $ 1,594,184 $ (260,545) 2004 11,581,258 576,262 22,939,985 464,961 1,410,045 - 124,988 Note: City of La Porte first applied GASB Statement No. 34 in fiscal year 2003; therefore, government -wide financial information for years prior to fiscal year 2003 is not available. 108 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Water Sewer Golf Convention Services Services Airport Course Center $ 6,339,238 $ 1,913,284 $ 149,472 $ 1,284,729 $ 212,947 6,686,457 1,895,709 142,765 1,222,819 194,314 Total $ 38,448,814 36,847,523 109 Total $ 39,554,497 • City of La Porte, Texas General Governmental Expenditures by Function' Last Ten Fiscal Years (Unaudited) Fiscal General Public Public Health and Parks and Year Government Safety Works Sanitation Recreation 1995 $ 5,852,031 $ 5,915,849 $ 1,979,267 $ 1,622,361 $ 2,005,982 1996 4,472,650 6,355,939 1,985,548 1,815,140 2,093,166 1997 4,495,678 6,889,530 2,070,686 1,873,746 2,331,312 1998 4,537,921 7,472,289 2,144,846 2,225,835 2,560,069 1999 5,056,127 7,842,420 2,204,287 2,413,218 2,697,886 2000 5,030,071 8,644,309 2,304,829 2,411,767 2,944,296 2001 5,232,112 9,364,320 2,487,825 2,278,761 3,058,199 '2002 5,295,157 10,165,683 2,422,522 1,764,906 3,297,865 2003 5,625,003 10,477,080 2,556,011 1,823,462 3,475,888 2004 7,971,284 10,414,544 2,361,192 1,758,964 3,245,144 ' This table includes General, Special Revenue and Debt Service Funds. 110 • 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $ 2,525,842 2,424,211 2,212,278 2,061,420 2,054,379 2,145, 841 2,504,933 2,319,535 2,385,199 2,189,834 Total $ 19,901,332 19,146,654 19,873,230 21,002,380 22,268,317 23,481,113 24,926,150 25,265,668 26,342,643 27,940,962 111 City of La Porte, Texas General Governmental Revenues by Source' Last Ten Fiscal Years (Unaudited) Fiscal Licenses Fines and Charges for Inter - Year Taxes 2 and Permits Forfeits Services governmental 1995 $ 15,843,519 $ 169,962 $ 271,308 $ 2,346,812 $ 154,339 1996 16,181,649 218,946 353,837 2,439,161 142,600 1997 17,148,601 243,632 427,305 2,567,400 187,333 1998 18,841,950 303,890 617,432 2,552,849 192,821 1999 19,400,416 357,694 479,363 2,996,774 170,044 2000 20,231,824 337,259 407,459 3,147,031 313,261 2001 21,685,552 262,010 561,547 2,923,504 673,105 2002 22,535,013 238,535 614,534 2,108,739 385,722 2003 22,921,623 199,970 847,250 2,275,333 302,912 2004 21,950,808 320,405 554,559 304,285 576,262 ' This table includes General, Special Revenue and Debt Service Funds. 2 Includes ad valorem, franchise, sales, industrial payments, and other taxes. 112 • ' Interest Miscellaneous Total $ 509,292 $ 100,183 $ 19,395,415 589,499 85,202 20,010,894 ' 589,971 28,470 21,192,712 694,129 14,791 23,217,862 627,387 88,508. 24,120,186 836,115 71,417 25,344,366 926,656 112,389 27,144,763 444,248 143,668 26,470,459 295,069 88,970 26,931,127 ' 291,300 32,605 24,030,224 1 113 Pi City of La Porte, Texas Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) Delinquent Fiscal Total Current Tax Percent of Tax Total Tax Year Tax Levy Collections Levy Collected Collections Collections' 1995 $ 7,688,390 $ 7,475,963 97.24% $ 96,555 $ 7,572,516 1996 7,874,567 7,693,553 97.70% 152,106 7,845,659 1997 8,310,963 8,100,624 97.47% 358,575 8,459,199 1998 8,598,632 8,437,322 98.12% 220,553 8,657,875 1999 8,939,428 8,795,498 98.39% 206,154 9,001,652 2000 9,175,689 9,006,072 98.15% 184,584 9,190,656 2001 10,102,074 9,831,981 97.33% 247,977 10,079,958 2002 10,683,102 10,515,098 98.43% 207,508 10,722,606 2003 10,740,051 10,539,796 98.14% 300,131 10,839,927 2004 11,078,891 10,924,697 98.61% 263,540 11,188,237 ' Excludes penalties and interest. 114 Percentage Percent of of Total Tax Outstanding Delinquent Collections Delinquent Taxes to to Tax Levy Taxes Tax Levy 98.49% 1,162,317 15.12% 99.63% 1,101,197 '13.98% 101.78% 1,108,770 13.34% 100.69% 1,036,304 12.05% 100.70% 901,832 10.09% 100.16% 830,979 9.06% 99.78% 619,890 6.14% 100.37% 864,736 8.09% 100.93% 854,559 7.96% 100.99% 808,145 7.29% 1 1 1 1 115 • City of La Porte, Texas Property Tax Rates - Direct and Overlapping Govemments (Per $100 of Assessed Value) Last Ten Fiscal Years (Unaudited) City of La Porte Hams County Port of Fiscal General Debt Service Flood Control Harris Houston Year Fund Fund Total District 2 County2 Authority z 1995 0.55 0.16 0.71 0.0760 0.4068 0.0129 1996 0.55 0.16 0.71 0.0760 0.4070 0.0130 1997 0.57 0.14 0.71 0.0742 0.4276 0.0160 1998 0.57 0.14 0.71 0.0800 0.4166 0.0213 1999 0.57 -0.14 0.71 0.0800 0.3948 0.0204 2000 0.57 0.14 0.71 0.0617 0.3590 0.0183 2001 0.57 0.14 0.71 0.0476 0.3839 0.0183 2002 0.57 0.14 0.71 0.0476 0.3839 0.0183 2003 0.58 0.14 0.71 0.04174 0.3881 0.0199 2004 0.61 0.10 0.71 0.03318 0.3999 0.0167 Source: 1 City of La Porte records 2 Office of Hams County 3 Office of La Porte Independence School District 4 Office of San Jacinto Jr. College District 116 1 1 1 1 1 1 1 1 1 1 1 1 Harris County San Jacinto Board of Hospital La Porte Jr. College Education 2 District 2 I.S.D. 3 District 4 Total 0.0052 0.1835 1.560 0.1000 3.0544 0.0050 0.1240 1.560 0.1100 3.0050 0.0056 0.1238 1.560 0.1100 3.0272 0.0061 0.1238 1.610 0.1100 3.0778 0.0063 0.1465 1.610 0.1100 3.1180 0.0063 0.2027 1.650 0.1260 3.1340 0.0063 0.1902 1.630 0.1307 3.1170 0.0063 0.1902 1.630 0.1307 3.1170 0.0063 0.1902 1.680 0.1307 3.1670 0.0063 0.1902 1.734 0.1391 3.2289 117 • 118 1 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 • City of La Porte, Texas Ratio of Gross General Bonded Debt to Assessed Value and Gross Bonded Debt Per Capita Last Ten Fiscal Years (Unaudited) Gross Taxable Bonded Fiscal Value Debt' Year Population (in thousands) (in thousands) 1995 30,464 $ 1,076,592 $ 13,555 1996 31,045 1,135,711 11,835 1997 31,859 1,191,363 10,255 1998 32,658 1,231,486 11,170 1999 34,191 1,277,210 9,675 2000 31,880 1,525,166 11,370 2001 32,356 1,422,739 9,745 2002 32,910 1,504,631 13,610 2003 33,789 1,512,665 12,170 2004 33,712 1,560,406 10,830 Ratio of Gross Bonded Gross Debt to Bonded Debt Taxable Value Per Capita 1.26% $ 445 1.04% 381 0.86% 321 0.91 % 342 0.76% 283 0.75% 324 0.68% 311 0.90% 425 0.80% 360 0.69% 320 ' Included long-term general obligation debt but not liability for employees separation pay. 119 City of La Porte, Texas Computation of Direct and Overlapping Debt September 30, 2004 (Unaudited) La Porte Independent School District Harris County Flood Control District Harris County (includes toll roads and bridges) Port of Houston Authority San Jacinto Jr. College District Total Overlapping Debt City of La Porte Total Direct and Overlapping Debt Total Direct and Overlapping Debt Per Capita 1 Percentage Amount Net Debt Applicable to Applicable to Outstanding City of La Porte Cityof LaPorte $ 76,950,000 35.71 % $ 27,478,845' 91,774,985 0.88% 807,620 11,888,198 1 1,350,931,590 0.88% 324,595,000 0.88% 2,856,4361 59,495,000 5.97% 3,551,852 46,582,950, 1,903,746,575 14,720,000 100.00% 12,922,787 $ 1,918,466,575 $ 59-505-737 1,761 1 Source: Moroney, Beissner & Co., Inc., Financial Advisors 120 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 • City of La Porte, Texas Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Expenditures Last Ten Fiscal Years (Unaudited) Fiscal Year Principal Interest 1995 $ 1,715,000 $ 810,842 1996 1,720,000 704,211 1997 1,610,000 602,278 1998 1,555,000 506,420 1999 1,495,000 559,379 2000 1,555,000 590,841 2001 1,775,000 729,932 2002 1,685,000 634,535 2003 1,590,000 795,199 2004 1,490,000 699,834 Ratio of Debt Total Service to Total General Total General Debt Service Expenditures Expenditures $ 2,525,842 $ 19,901,332 12.69% 2,424,211 19,146,634 12.66% 2,212,278 19,873,230 11.13% 2,061,420 21,002,380 9.82% 2,054,379 22,089,712 9.30% 2,145,841 23,481,113 9.14% 2,504,932 24,926,150 10.05% 2,319,535 25,119,686 9.23% 2,385,199 26,130,052 9.13% 2,189,834 25,576,240 8.56% ' Includes all General Fund and Debt Service Fund Expenditures. 121 • City of La Porte, Texas Water and Sewer Revenue Bond Coverage Last Ten Fiscal Years (Unaudited) Net Revenue Fiscal Operating Operating Available for Year Revenue' Expenses 2 Debt Service 1995 $ 6,000,898 $ 3,802,082 $ 2,198,816 1996 6,260,721 3,908,378 2,352,343 1997 6,106,337 4,081,712 2,024,625 1998 6,368,938 4,177,982 2,190,956 1999 6,445,231 4,386,479 2,058,752 2000 6,844,236 5,626,662 1,217,574 2001 6,094,735 4,347,508 1,747,227 2002 5,988,595 4,814,158 1,174,437 2003 5,837,448 5,025,158 812,290 2004 5,836,221 5,125,635 710,586 ' Includes interest income. 2 Excludes depreciation and loss on uncollectible accounts. 122 1 r Debt Service Requirements Interest Total Coverage Principal $ 485,000 $ 324,061 $ 809,061 2.72 ' 570,000 290,100 860,100 2.73 540,000 256,603 796,603 2.54 535,000 263,547 798,547 2.74 660,000 211,328 871,328 2.36 660,000 170,483 830,483 1.47 660,000 168,781 828,781 2.11 ' 625,000 132,418 757,418 1.55 580,000 115,948 695,948 1.17 580,000 71,293 651,293 1.09 I= 1 1 1 1 123 • City of La Porte, Texas Assessed and Estimated Actual Value of Taxable Property' Last Ten Fiscal Years (Unaudited) Real Property Personal Property Year Actual Value 1995 $ 930,863,730 1996 1,088,617,760 1997 1,107,091,700 1998 1,132,150,100 1999 1,200,942,090 2000 1,348,881,240 2001 1,346,611,820 2002 1,461,368,400 2003 1,498,049,850 2004 1,546,560,410 Taxable Value Actual Value Taxable Value $ 905,935,390 $ 199,850,740 $ 170,656,790 963,946,080 197,177,710 171,765,840 991,682,852 222,428,561 199,680,490 1,030,030,350 239,361,192 201,455,980 1,073,849,843 231,352,908 203,361,040 1,288,197,300 258,255,710 236,968,760 1,128,777,060 295,183,470 293,962,150 1,212,042,880 295,213,550 292,588,100 1,246,480,840 270,257,240 266,183,680 1,288,266,880 279,687,470 272,140,030 Source: City of La Porte records, local financial and the Harris County Appraisal District ' Properly values shown are appraised values, which represent estimated actual value. Ratio of total appraised value to estimated actual value for all years is 100%. 124 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Exemptions Real Property Personal Property Actual Value $ 141,138,650 $ 450,650 $ 1,130,714,470 145,406,130 419,590 1,285,795,470 146,950,580 522,210 1,329,520,261 151,108,330 129,520 1,371,511,292 169,445,710 809,240 1,432,294,998 186,962,500 956,290 1,607,136,950 217,834,760 1,221,320 1,641,795,290 249,325,520 2,625,450 1,756,581,950 251,569,010 4,073,560 1,768,307,090 258,293,530 7,547,440 1,826,247,880 125 Total Ratio of Actual Value to Taxable Value Taxable Value $ 1,076,592,180 105.03% 1,135,711,920 113.21 % 1,191,363,342 111.60% 1,231,486,330 111.37% 1,277,210,883 112.14% 1,525,166,060 105.37% 1,422,739,210 115.40% 1,504,630,980 116.75% 1,512,664,520 116.90% 1,560,406,910 117.04% • 0 1 City of La Porte, Texas Principal Taxpayers 1 September 30, 2004 (Unaudited) 1 Percentage 2003 of Total Assessed Assessed 1 Taxpayer Type of Business Valuation Valuation 1 Oxy Vinyls LP Plant Chemical$ 49, 186,150 2.78% Conoco Phillips Inc Chemical Plant 48,612,640 2.75% Equistar Chemicals LP Chemical Plant 45,125,300 2.55% 1 BP Solvay Chemical Plant 38,054,910 2.15% Centerpoint Energy utility 23,824,970 1.35% PPG Industries Chemical Plant 23,585,660 1.33% 1 Attofina Petrochemicals Chemical Plant 22,293,400 1.26% Dow Chemicals Chemical Plant 20,710,190 1.17% Dupont Dow Elastomers Chemical Plant 17,664,140 1.00% 1 PPG Industries Chemical Plant 13,445,270 0.76% $ 302,502,630 17.11 % Source: City of La Porte Tax records. 1 r . 1 1 1 1 1 1 1 126 n 1 1 1 1 1 1 1 1 1 Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 PODUlation (1 30,464 31,045 31,859 32,658 34,191 31,880 32,356 32,910 33,789 33,712 City of La Porte, Texas Demographic Statistics September 30, 2004 (Unaudited) School Enrollment (2 7,427 7,458 7,353 7,415 7,477 7,645 7,772 7,732 7,648 7,629 Unemployment Rate (3) 6.1 % 4.0% 5.3% 4.3% 4.4% 3.9% 4.6% 5.6% 7.0% 6.0% Sources: (1) Based on building permits issued by the City's Inspection Division and information obtained from the U. S. Census Bureau. (2) La Porte Independent School District for the school year ending August 31. (3) Texas Workforce Commission rates for Harris County, as of September 2004 127 City of La Porte, Texas Property Value, Construction and Bank Deposits Last Ten Fiscal Years (Unaud►ted) Commercial Residential Construction Construction Fiscal Number Number Year of Units Value of Units Value 1995 25 $ 6,024,751 152 $ 12,889,457 1996 21 6,443,359 181 15,166,761 1997 52 9,189,192 199 17,910,021 1998 24 10,682,637 258 32,216,337 1999 46 20,944,265 282 33,741,959 2000 25 8,255,364 290 17,891,727 2001 31 9,679,778 155 20,037,910 2002 31 7,149,145 146 21,222,481 2003 21 4,077,913 164 21,337,646 2004 22 6,270,391 112 12,917,657 Bank Deposits Number Property of Units Amount Value' 3 $ 185,050,239 1,076,592,180 2 176,891,604 1,135,711,920 3 220,345,717 1,191,363,342 3 293,810,442 1,231,486,330 2 275,951,399 1,277,210,883 2 304,034,393 1,525,166,060 2 328,478,701 1,422,739,210 2 325,832,577 1,504,630,980 1 280,362,658 1,512,664,520 1,560,406,910 Source: City of La Porte records, local financial institutions and the Harris County Appraisal District. ' Property values shown are appraised values, which represent taxable value. Ratio of total appraised value to estimated actual value for all years is 100%. State law requires the Appraisal District to report current values. MI —I 1 1 1 1 1 1 1 1 1 Date of Incorporation Form of Government Area Miles of Streets Number of Street Lights Fire Protection: Number of stations Number of paid personnel Number of volunteer firefighters Police Protection: Number of stations Number of police officers Number of reserve officers Municipal Water Department: Number of meters Average daily consumption Miles of water mains Sewers: Sanitary sewers Storm sewers Recreation and Culture Number of parks Acreage Employees: Full-time Part-time Education: Attendance centers Number of teachers Number of students City of La Porte, Texas Miscellaneous Statistical Data September 30, 2004 (Unaudited) 129 August 10, 1892 Council/Manager 19 Square miles 164 1,665 13 90 1 72 5 10,987 Meters 3.2 Million gallons 231 Miles 187 Miles 89 Miles 19 463 352 45 11 483 7,629 0 0 130 • 4. U 0 A/1. Recommendation to Audit Committee OFFORECLOS ACTIVITY. . HCAD ACCOUNT NO: 023-206-084-0026 Property Struck off for: CAUSE NO: 1991-31131 PLAINTIFF(S): City of La Porte & La Porte. Independent School District JUDGMENT AGAINST: Scott, Claudell E.-& Heirs .. JUDGMENT DATE: December 16, 1992 STRUCK OFF DATE:. December 2, 1997 ORDER OF SALE: November 11, 1997 DEED RECORDED DATE: January 21;. 1998. . STRUCK OFF TO: City of La Porte CONSTABLE:. Bill Bailey, Constable Precint'No 8 PROPERTY ADDRESS: 300 Block of North Broadway . LEGAL DESCRIPTION:. Lots 26-32 Block 84 La Porte ADJUDGED VALUE (IN JUDGMENT): $54,940.00 SQUARE FOOTAGE:. 21,875. SUMMARY OF SALE ACTIVITY BIDDER: Dennis McClung/Bruce Meismer BIDDER'S ADDRESS: 631 Baywood AMOUNT OF BID:. $21,000.00 : Shoreacres, TX 77571 AMOUNT"OF DEPOSIT:.. $2,100.00 AMOUNT DUE: $18,900.00 .' BIDDER'S PHONE NO: 281-867-1338 PRORATED PERCENTAGED OF TAXES DUE TO'EACH JURISDICTION BASED UPON JUDGMENT - JUDGMENT TO COUNTY, ET AL. % SCHOOL. % CITY % TOTAL AMOUNT DUE $11,297.85 41.31% $9,967.00 36.45% $6,082.26 22.24% - $27,347.11. ASSOCIATED COSTS ON ORIGINAL AND SEALED BID SALES CONSTABLE/ ESTIMATED AMOUNT AMOUNT OF COURT' PUBLICATION FEE AD LITEM RESEARCH FEE & TO BE PRORATED T BID ' COST (TISD). FEE DEED RECORDING FEE TAXES $21,000.00 ' $665.00 $4,130.80 Ad.00 . $250.00 $15,954.20 . PRORATED TAX AMOUNTS TO EACH JURISDICTION OWED TO COUNTY '/o .. ' . SCHOOL % CITY % TOTAL PRORATED .. AMOUNT $6,591.12' 41.31% $5,814.7I 36.45% $3,548.37 22.24% $15,954.20 Amount of Bid: : $21,060.00 Costs: -District Clerk.. .. $615.00.: -Tax Master $50.00 :.. :. -Liens $3,955.80 . -Publication:.. :... $175.00 ..' . . -Abstract Fee $.250.00 . -Cost $0.00..::. -Ad Litem Fee . $0.00 Total: - : $15,954.20 - Taxing Jurisdictions: Amount in Judgment:. % Amount Received City of La Porte; $6,082.26 22.24% $3,548.37 . . La Porte ISD '$9,967.00 `' ... 36.45% $5,814.71. Harris County $11;297:85 . ' : 41.31% $6,591.12 San Jacinto CCD $0.00 ' . 0.00% $0.00 State of Texas. $0.00 0.00% $0.00 .' $27,347.11 100.00% $15,954.20 Costs + Taxes $32,892.91 Adjudged Value $ 54,940.00 P006 STATE CLASS CODE: X1 - Governmental Exempt OWNER INFORMATION _ LOCATION INFORMATION. Owner Name: CITY OF L'APORTE Property Address: 317 BROADWAY Owner Address: CAUSE #91-31131 LA PORTS TX : 77571 PO BOK1115 Legal Description : LTS 26 THRU 32 BLK 04; LA PORTE TX 77572-1115 .' LA PORTE ' . ' EXEMPTIONS INFORMATION JURISDICTION INFORMATION ; Homestead Exemption : E -Total Exemption :: Code Jurisdiction/Taxing Unit 2000 : 2001= Special Exemption : '—.Rate Disabled Veteran Exemption(s) 020 LA PORTE..ISD 1.63000 1.63000 .: 040 HARRIS COUNTY + RELATED. ENTITIES 0.64802 0.64627 _ 047 SAN JACINTO JR COLLEGE DISTRICT 0.12600-0.13071 . : 071 ' LA PORTE.. CITY OF 0.71000'0.71000 VALUE STATUS INFORMATION Notice Date: 4/26/2001 . : , Value Status:: All Values Certified Capped Account: No : ARB Approved : 8/10/2001 VALUATION INFORMATION ' Valuation.. 2000 Appraised.. Change' . ' 2001'Appraised '- 2001 Market Value Land: - $20,900 ' $0 $20,900 Improvement: $45,670 : $0 : $45,670 A9/Tmbr/Spc : $0 .0 $0 Total Value: $66,570 $0 $66,570 $66,570 RESIDENTIAL IMPROVED DATA: . •Parcel ID-: 20 - 00921.3 - 07.0 - 004.6 - 0 / 000 - 004 7 . `Card ••' • • � `- • . .. Land Use.: 101 —Residential 1:Family . .. _ Land Area : 0 sq. ft: CAMA Class: R11 —Residential Improved Map Facet: 6254D Total Living Units: 1 'Key Map Year.Built : 1940.. Neighborhood : 2164 _ Style: Bungalow : Exterior Wall.: Frame or Concrete Block Stories: 7 Foundation: Crawl Space• '=;• Living Area* : 360 sq, ft. :. Heating / Air : None - Bed. /Bath : 2 11 full, 0 half. Attic : None Rec /Total Rooms..: 0 / 4 ' " Physical Condition .:.Poor •= . : Wood Fireplace : 0 Grade: Metal Fireplace: 0 . : :. Status: Dwelling Other: Carport . * The Living Area for residential properties is calculated by=measuring the outside:perimeter of the structure and includes -only finished, habitable residential space. Lower level living area and finished attic space are included in the living area calculation, but unfinished attic space and attached or detached building features such. -as open porches, garages, 'and other. minor buildings are calculated separately. 8--« n9-0009 _n « . ---- ti---- «10 '"--- - - -- -- 22_ L3 � --a- 12 21 'n� „ 12. 1O ixs «11 ---�A�...21 «21-0042_20_0-320._N_ _ „13_Ott:«2--- ■- -- 2_i_-0013._^ «Z2- --- 20----'" 1_40_ 19._0_ „l$ ,4 „ 1Hams- 2 1xs . « «,3�« RJ 19 --- 18 „7R°14 o _ -� « ----- 19 -c--« --^- 18 --- 17 us « t5 --- l6 ,n 17 ,n « 18 In«1-18 COuny 916 1n 161 17 + ,ifi « �.1 « Appraisal NORTH E STREET- 1. 32_,_- 2--•--.4 31----.-« 2_- -„ ■ ■ «32125 -« -Z---_.« 31.:---« �-=--- 30----- 30. h 3 « •.30 QOZB _ � 4 600 112-- 6« 29 0025 _'�6 4:Qn01_ �01 _it 5 -- « Z8 � - - 5 - - Q E-W20 •0027 - „ « 5 « 2_----«zs 627 «6----- - T__zs----APPtxs..« r6 1�-« «27 6_« 7 uuy _« �----.« 7__4,9y_A 26,:--- e ----« 8--�V �---� _•_« 8 ,n 25 1n 8 ., 25 1xfi 9_ « 24 280034 « ..7_----- -" „ 24 __ �___ 10. 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V� 13 :0011 .' « 20 9016 '__ 14 a r «a14W--� « 20.47 « 13..-- 14 �2 ..19.• _--� 14 « 15 0 _ S 0�19 =-16.-- -« 15'_a« «20 . « 19 .1ifi « �. d 15 ,n ...« 19 1n 14,__ « Z'. 15 ----1: IB _� « - «. 16 7 180IBy7^ Q28_•_ !617 «' 'F•• ... STREET " EAST 'TYLER _ ,xb.: .�32�n::�: 1. �•FACET�� TYLER . STREET , . :z ,n « 32 in _ - - - - - - «2 Z_ 1_^ 31�029__ 2-'-- 32_._:._�... --_ - 3-435--- -.---- 625'4D i, 331.: g 2_--=-« 31.- -� �. « 90_ _ 3--=--� 30-:-.-- 4_ 291n 4 30 « 30 29 _... 29125 5 _ _ _ N 28= - - - - 5 3 N� 4---� 1+ 5--=--« 6 a 1 _-� W ----« 27_'•'27_ 25 _« 26 .ix B - -I=s « 26 N 8 -BOOS - - - 2 - 2 - - 26 „ - „ 0021 9__, �23--'n. 0 25 8 . us « 2 x 9 - « 24 m' 23 ,n - - =-'� F 8 4oln! _ 24. 29 _ 1n.:-� az , Nunn ///uun no®® 01 • U A/20 �MMARY.OF • FORECLOSURE ACTIVITY.,' HCAD ACCOUNT NO: 100=523-000-0006-:.... ; CAUSE NO: 1998-58659- PLAINTIFF(S):: ' . City of La Porte & La Porte Independent School District JUDGMENT AGAINST:.. Connie S. William Karpiak JUDGMENT DATE: October.27, 1;999 '-.STRUCK- OFF DATE:'':.. March 7, 2000 - ORDER.OF SALE:. January 6, 2000, :.. DEED RECORDED DATE: March 21; 2000.: STRUCK OFF TO: . ' . City of La Porte - CONSTABLE: Bill Bailey,. Constable Precint.No 8. • : PROPERTY ADDRESS:_ 8423 Avington Rd ' .LEGAL DESCRIPTION.: : Lot 6 Block 6 Brookglen Sec 1 R/P ADJUDGED VALUE (IN JUDGMENT): $56,000.00- : SQUARE FOOTAGE:. . • 7,035 _' SUMMARY.OF SALE -ACTIVITY .' . BIDDER: Tyrone D. Jones .. BIDDER'S ADDRESS. 6338 N FM 565 : AMOUNT OF BID:::.. $11,400.00... Baytown;.TX 77.520 - AMOUNT OF DEPOSIT: $1,140.00 :. :AMOUNT DUE: .$10,260.00. BIDDER'S PHONE NO: 281-630-7301 PRORATED PERCENTAGED.OF TAXES'DU5TO EACH JURISDICTION BASED UPON JUDGMENT .. JUDGMENT TO COUNTY, ET AL. .. %. SCHOOL ... . % � - CITY ' % .. •. TOTAL AMOUNT DUE $9,648.19 �26.80% � $16;611'13 .46.14% :$9,744,83 ESTIMATED AMOUNT AMOUNT'OF COURT .� CO.NSTABL"E/PUBLICATI AD LITEM : ,RESEARCH FEE TO BE PRORATED TO • BID COST ON FEE TIED ' FEE . DEED RECORDING FEE = TAXES • $11,400.00 - $784.00 ' $175.00 $0.00 •$250.00 . $10,191.00 . : . ' • .PRORATED TAX AMOUNTS TO EACH JURISDICTION OWED TO COUNTY % CITY �• % TOTAL PRORATED AMOUNT '.$2,730.93 26.80%. - $4,701.79 46.14% ' ' $2,758.28 27.07% 310,191.00 Amount of. Bid:.' � � . � • � .' $1,1,400.00; .Costs: .' � :. . � � - . �.. � � � .. - � • � - . • . '-District'Clerk. $734.00 -Tax Master � •� . � � :: $50.00 Chris Stacy � . • � ::. .. " . , .: � . � ... •. -Constable Fee • $0.00 . � .. _. • . _ - ... � � � . .:Publication: � • $175.00' . ', • ��� � -Abstract Fee : � � • : $250.00 .:. _ � � .� � .. ... . � • -Cost .. .; .�- .. $0:00 , . .. ..::- . • .. •. � ..- .. - . . -Ad� Litem Fe . $0.00 Total:.$10,191.00 :.Taxing: _ � :- .... •.��� � � �'� • .: .. :.- . Jurisdictions: � Amount in Judgment: �'� % �� Amount Received:.." - • .. City of. La .Porte _, ; $9,744.83 .. 27.07% $2,758.28 La Porte ISD $16,611.13 .46.14%: $4,701.79 •.' • � .�. ... • . - • Harris County $8;341.12 so .21266 77.79 66 eo eo eo 66 5 4 . 3 2 1 g n -0040 /. F a . • ' .12288 ' 1401 tangy ... t bm .. 0 9. 8 7. 6 g g g 2al.x eS saes rax ma° `� 3$ g o'^g = g m . 39 / 8 lxiss a.x 1 6 5 7ps ■ . . eog g -^ �^ �� a •� ; zN Harms P' .ul = . ^ 10 eaSH Count . COLLINGDALE. ROAD as 7aa� 8^a" /�?/ d''� eas eas eas o f / U0/0. ,a b��aee eas u5 eas. 5 4 3 ::----- 0 LINCDALE ROAD:.: CO`, ■ 9 8 : 7 8 ao7g ?mNg 1 g3T 31 A leas: $ 5a se. sx5aoe ee ee. Appr-a Sa �,, g om^ c 8 0 8 4`il(34 ^ ° ry 6. ' 5 • 4 3 : 2 ■ ■" .a6 ea6 !a 615 eae. 7nex D.i str 1 ct. 71.e9 ea5 ea6 - 3 � ON � 1 5 14 .g W• 18 �,.• ,eo td nm mtl a n `nY Oo15 z IO 1 12 t . 8 Wm 7e es a.az g m5 g 35 3� g 12 ' 3�1 o ee q +e M a° ° I as a7 al.oa 1� �a a 00'6 3 ,sow z 8 9 : 910 0 i1 1. y2 2. 7a" APpp l8-0Ol6 zo st�,eeGas^ �',�a0t4.7 1$8 •o ';FQ.so .. eae 2 g _,Bm� 'g .�Os eNg,eae' g e.ao�us 7�� ,• .g 2e7a�s .g .•.m^ut�1mN� 14 3300. ,37 e490 13 I e1�ai3�4S s 'BEECROAD 160 v21 Nat at. 7ae 14I.' yQ ' 26 -28' 03 CHA2223 24 $VENROAD 20 . 21 170 0 �.b ' �® a 19�img g `u1Q^ mR mi p°4 ` 15 •� 1! 726�, S ' S7 �g eax' :ea: e`1Y� 'eax eu eas 32g2p �..:: fix low 17. 19 19 zo 21 t szH '• 77%4^ � eax .. ea: &1B ..:°le , 7,.Is a : .�3� w eae eae eae. ; eae '• ese 17 ^•J �D 34 . U $' a 7t 5 n r TEXAS 9 38' 37 .: `. 38 ` g g • i�er g ulo ig o N . 31' ' . W 30 . • 1a2e seas a.se a en 7.65 . 67 r01 •'n u/mg omg ' aW_ .. iv. .'^. g m o 211 � .' U . I ':- . ; . , atl . 5a/i ai Be Tale 79 ,•�� �.>e g g m e � .�45 28 25 , sag m n./�s g • 0 28 28 27 24: e5.. e5 eae ele sae eae e. cal 20 Q��1�7 ..23 . ` � Fla BANDRIDGE ROAD' "'e,, Tm�$' oN nm$._ m-sz Scale 0' eu "a eae,.• .:eas xe eas els 7naa !e1e 196 se s5 ' et22 aa��" 'PUBLICATION DATE:. .. 85 . 88 87 88• • • g69 9 .ass 9 " March Ira, 2000 .. 59 ' 60'. - 6l ' • 62 63 ' 64 _ o_m 13 mmg -0069 O 19 eoN$ ' 1VP1 g �. 170 s .. rg mg • 72 mmg Cos -Nmse8 lnuig'. ''a" '�- .' : o5.a1 . BROOKGN R.P ,see �1 nua - V^ _ & m as GAS GAS °id^ sx"eT as ^ �" �aa W oe. �028 o T - 100-518 3�2%� �.0, .. ,ae Ones • 87, e7 e7 a7 y OU I ^ e n0 4� 8 2.. 1 I : N.. U� 23 : • n mg g 0,1p: g . 1 np°g note g g - ' 87 32 7 . I RES .L OZ `a4` 'mY ^ ''m - m' ^ .. 6 . W7 �: ' . m „o . '$ .14 e7 °7 Ise/ 170 g 100.525-000.0070 , . H 3302 67 e7 . e7 e7 .. .. S ..0011. �. 2 4710 AG N ? 3' , . AVINGTON. ROAD a e6 2 ^q .. .3bd v �8 � yas.,_ - to W E --178 I o �3 pp,8� 3�3�pp33 11176 i /a.27 , C i'w 63 �� 14 8 ea : L8 ea 7mn 9 18u 2 nog 21a�gaR 1 g . a o� -0086 ^0 35.74 v< mm g Nmg Na�8 o ` W 170 �. " 7 8 5 4 : 43 5 S w33310 .o oR^ Oj 7nse . t' 8463 3.�U; 0013 Snea a $ ,os a as. ea 5 • ' 170 14 1 1 mrg gl 0 m�`8' g_ $� 3 $ •� ..1 ..%... �9 _. 109 ' "'] �I � e07e FACET. .m4 - ea-8 . �,. ��aaeel 5e .� ° , , „sz AS tla 8 45 �. B8 N ASHWYNE LANE: e$ °.6053 A • L rst yj eae 61 _ 77e12a • et ANC' ! 16 •e d e ao g so so eo 21 '. 22.' eo60 23 27 $ -00�� la ep 10 •eau .„ l2 3'°�t2oo - .. .. .. fits 1u 19 17 �►� g 20 a mr &44 mQ oiv g8 upg4 ' am8 _ 1$ .. x 25 �•aa ASyW. • 485 p a 1 `. 90. 29 ea52 28. ' 13 : e 59 3329 - 2s Mee .. ,�y7���,8 7 J �4 : " B . ' .. ' W.58 ' ..'. a OOKGLEN '-R P "' •' •,:• ". 31aaa2 ' ffi Fi .> 8 e�1'1 F S . ' a- 17na•.: I 26 3.a•,3 0 . .. R ,: p ; I . ®UUMU// Pill PREPARED 6/12/63, 8:48:31 CUSTOMER ACTIVITY LIST FAGS.. 1. PROGRAM MR4301, CITY OF LA PORTS FROM DATE'................00/00/00 ' TO DATE ,.:..:..-00/00/------- CUSTOMER ID.'.....:'.' .178 NAME: .KARPEAK,/BRKGLEN I B-6 L 6 LAST STATEMENT...: 12/23/02. :ADDR: .100 523 000 0006 •.pgND " ON ING TRANSACTI CURRENT BALANCE..: ,.:...5,084.10,'. BROOKGLEN'I B '6 L 6 .., PENDING......::...:. .00 . • LA PORTS,' TX 77571 „ PREVIOUS -'BALANCE.: S,084&70 STAT: .A ACTIVE.• MOWING/DEMOLITION ----------------- ----------------- • TRANS:': .' :' :.. 'DESCRIPTION ORIGINAL AMOUNT ----- --------------- -' LAST CHG ." AMOUNT PYMT DATE, .. CODE- ''-INV # -------------------'--'=.---'=---'-'---=---=------- AMOUNT UNPAID OVSRDUS•' AGE . BILL TYPE UNAPPLISD TYPE 4/25/00 LM01' LOT MOWING/DEMO ---150.00--�--------------------150.00---090. 12/23/02--- ------ 7/28/99 ..LM01.. LOT MOWING/DEMO• 140.00 .. '140.00 090 12/23/02•'. 9/18/98' LN01' LOT MOWING/DEMO 70.00 "- 70.00 .• 090 -12121/92 12/16/97 LM01-` LOT. MOWING/DEMO 70..00 70.00. 090 12/23/02 10/01/96. '.:LM01 • :: LOT. MON_ ING/MONI . .. 4,'654.70, .; ' ', - •4,654 70 Q 12/23/02 TOTAL CHAR .: GSS• S.084.70.00 :5,0.84.70,. TOTAL PAYMENTS: • ' •'-' r •'� . • .,. REPORT TOTAL CHARGES':. ' ,5;084.70 - .00 :5,084•:70 • ;•<. REPORT TOTAL PAYMENTS: :... 00. _-- --- A/30 OMMARY'OF FORECLOSURE ACTIVITY • HCAD ACCOUNT NO: •1023-255-078-0003 Property Struck'off for: CAUSE. NO: 1999-00951 . PLAINTIFF(S):. City of La Porte & La Porte Independent School District JUDGMENT AGAINST: Gordon Baumbach JUDGMENT DATE:..... October 5, 2000. STRUCK OFF DATE: March 6, 2001 ORDER OF SALE: ..January 11, 2001 DEED RECORDED DATE: March 23, 2001 STRUCK OFF TO: City of La .Porte CONSTABLE: _' Bill Bailey,. Constable Precint No 8... PROPERTY ADDRESS:: 1003 S Third Street LEGAL DESCRIPTION: Lot 4 & S 18ft of Lot 3 & N' 14ft'of Lot 5. Block 178.La Porte ADJUDGED VALUE (IN JUDGMENT):'.. $22,500.00, SQUARE FOOTAGE:. 7,125 , ... SUMMARY OF SALE ACTIVITY .BIDDER: Agile Homes; Inc BIDDER'S ADDRESS:. 1003 S Third. Street-.' AMOUNT OF BID: : $7,900.00 .:. La Porte; TX 77571 . . .AMOUNT OF DEPOSIT: $790.00 AMOUNT.DUE: $7,110.00 BIDDER'S PHONE NO: 281-331-6001, PRORATED PERCENTAGED OF TAXES DUE TO EACH JURISDICTION BASED UPON JUDGMENT'' JUDGMENT TO COUNTY, ET AL. '/o. SCHOOL' % CITY : '- % TOTAL - AMOUNT DUE: ' . $5,029.98 26.82% . $8,229.08 43.87% $5.498.61 : 29.31% .. $18-757-67 ASSOCIATED COSTS ON ORIGINAL AND SEALED. BID SALES. CONSTABLE/' : • .. ESTIMATED AMOUNT AMOUNT OF COURT. ' PUBLICATION FEE AD'LITEM RESEARCH FEE & TO BE PRORATED TO BID. COST (TISD) FEE DEED RECORDING FEE • TAXES $7,900.00 $662.00 $175.00 $0.60 $250.00 $6,813.00 PRORATED TAX AMOUNTS TO EACH JURISDICTION . OWED TO COUNTY % . SCHOOL % CITY % " TOTAL PRORATED .. . AMOUNT .' $1,826.95 26.82% $2,988.90 • 43.8- f $1,997.16 '29.31% $6,813.00 Amount of Bid: - $7,900.00 Costs: . -District.clerk. $612.00 ... , -Tax Master $50.00 Y :. -Constable °Fee" $0.00 . -Publication $175.00 :. . -Abstract Fee $250.00 ... -Cost $3,890.00 Asbestos & Dangerous. Building Removal on, 10/17/01 -Ad Litem Fee-.. .' $0.00 Total: .$2,923100....' . Taxing . Jurisdictions:, 'Amount in Judgment: '/o Amount Received' :. City of La Porte . $5,498.61 29.31 % :.:.. $856.85 . La Porte ISO $8,229.08 .: ' ' 43.87% $1,282.33 Harris County ` : $4,289.18.. 22.87%.:. $668.38 San Jacinto CCD $740.80 3,95% $115.44 - State of Texas _ $0.00: 0.00% •: $0.00 $18,757.67 :100.00% .. .$2,923.00 Costs + Taxes . $23,734.67 Adjudged Value $ 22,500.00 ::. ' ` ; - P118• • . . ill.tflJ. tlyjJlL115i1a 1�GGVau LVKua -. .- .. _ a a�v a va a . Eras Real:. Account Number'- Address :' Owner Name: - Advanced .: . Personal: Account Number. Address: Owner Name Advanced proved: Residential ,Property.Data 7-Ac umber: 02325S0780003 :' Tax Year :. 2001cation : 1003 S. 3RD ST View Main Screen.. = ' Parcel 20. - 00921.6. - .22.0 - 002.0 .- 0 / 000 -. 001 9. ., .., . .. Card ID . Land 161 -- Residential. .- Land Area 7,125.sq. ft. : Use : 1 Family CAMA RI1 -- Residential Map Facet : 6253A'..'•. Class :Improved .::. Total Uviggf Units : 1....:.: :. ::. ::.:. .. `' : Key Map :'540X Year Built / .Remodeled : 1950 /.'.1981 .. Neighborhood : 2158 Stjile :Traditional- Exterior Wall ; Shake . :.: Shingle .. Stories : 1 Foundation":: Slab Living Area : 1,582• "sq. ft. Heating / Air :' None - Bed'/. Bath :.4. / 4 full,. 1 half ; • Attic :None :- .:. Rec / Total Rooms : 0 / T • . ,. ... Physical . .. . Poor.. • :: Condition Wood Fireplace : 0' Grade- :�.D+ - .. Metal Fireplace : 0 Status : Dwelling Other Carport 'Shed For any pro or questions .with' any account, please email. u§ with the account number (if you have it).and the nature of the problem or question.:. Home Records:: Maps. - Forms ` : .."Links' Index. " ' . N :: http://www.hcad.org/cgi-bin/CAMA/ResImprpved.asp?acct=0232550780003&card=l ' ..;.':::; :: 4/10/01 253A8 . 9. :« « 9_' 23 _R 0.__t„:_r 23 __ 1- ___ txs R �___--nE 1e_ 1: 0_-717 _- 23 -- - - _« 2l_.____R tx5 . ?� t_0_A 22 _SC .:. t__Z_�1':':_�Z 4�- l2_-7Y3.-R 21_9_?. 2 73 R Zp_ _R.'`.•«�3_.__-_p. 21 .' « Z_ +a+lt - - .p020- - . 0008 _ 11- - q -Harris . 1x5 R ZO R 3_ �xs _ _ « ZO_ _i q : R 9: @ _ R 4 7-729'.�-R 18'Q:_ _�7_2y7�R 5 0014R 18t07 - 17 t R 8 County . . 5- W4 - - 17 - R 17 t « R 16 R 7 s _ Al�pra�s:al. WEST G STREET .. .: ' . :•.;.,,. .., .. «32 , -« . • R1. � - ■ ■ .: . ,x5 R Rl R31 D'stric' -.`.. zs } • «32 _ _ - - - -� - = - - R P-4 03 -A 3 �g-C�24 0031_ vi2 13 _s- 0f22 _ « •' 3 ----� _ 1 R 21_ _ 20 2 0029 _ 19 R _ - - ' ' a 20 Ix5 R R20 Txx 9 •-q-�q-- - -- 5 •Otn4 R 19:_,_:� ------ - - . -- R17 g��l5 x ------ 16. , 8_R 18_[IOU__ 18-'--- 17. -- o R 1 «. IB. 17 R •..p . 200. ` ~, 12 «32 N P BUCATION DATE: :. ... N WEST- ..H . STREET : us al ,m : «32. ; _ 1x5 R 32 ,gxO�Z� o ,.� «_z_Qggl_ : _ 91 W s.Pxatnbar 26. 2000 t: t0 1x5 R n1 R32 2-- -.R 1 �ozs_.._ _ 1G �:..., R ..•' «I___._-- R32•----'- .. « «31---`-� 2--- ---- R.'-' _ R 30..;„ R 1. ---- „�9 --- 4 �DL-- « 4 - -0001 2_8 R R 27 -002p _ ., _ _ - 8 '" - g' ---= R5' ------- --------- - R _ 27 « 7 2 R 26 R R ., RB__---� ---- R � .' R 7:�fl_« 28 g R 7._ : _ _ _ 28 .. R li 8 7_-0001-« 28__'--xi 9 �xs im': 79.,' 8 ,:5 R 8�. 3_R Zq __ - _ 8 txe 25 ,x5 g_ �_ 23 2 W E RZink 0 _ 9 - -• - - _ g jg :•' 0 - R 23 0023 _ « s 9 _ - - - - « 23 AOOa_ ,; « 22 ,xs .-0001:S ` « 71 18-----r 5----- R i �o o-Z-- -- :.. • A : .:'• If.• a : 1 �� R . FACET"' WEST I STREET « d x A3E -- �Q1 "'. a•32_'---- R1' :----- ---- A,�----- a n9l -0o2a_ A 2 --R n l>.. a.,: •� _---- - «z 6253A a2-�--- it 1i31 --- a2==--- a a ,_ '� 30__---R- a31 - a .:------t. �'--- �''�a_304'7 a:' -- R Aa---'--'p q29- a3 _q- 2_S -: A a30 a ----- R_ :..A�----.-.A A28_'y�/��,�8. a----- 7 2 3 q ® ae2298`':_:'____'_;x `aaa458--- ---.------ n,l.C1r 2-8-�_iO�w..-_p � •• °5----- aaa aaa22Z5 56=---7 -.-----�' it's- 7 AA'f )- - R 8 0 7 -a- 25 S 6. a27 1 1 ■. A7 « pp a ., a7_:---'a1 ra.7�--�-_. -_---' .a25 N a 8_'�-.R. _-_-� -9-__'__ A 4 A' 9 Jxe::« 10 Al 6253C4 P. O. Box 58249 Houston; Texas 77258-8249.-' Respeftly Submitted- a..-Y 1 Any alteration or deviation from above apecKxatbns involving extra' coals. wW be executed only upon wruMn ordem and will biome an Par Xm ' An. SM -rtd ' P. E extmdurgeoverindabmlheesdmte.ASagreementsconiingeM...- r.i w to l . upon strikes, aeeklents or delays beyond our control. Owner to carry. - .. - rim, tornado and other necessary :hiuran ce upon above work Workmenb Compensatkxi and Public Liability Insurance on above ` work carried by ALL TEXAS DEMOLISHING. Environmental .. 'NDta -Tait pmpDsld.may be withdrawn by us d rlDt, axepted . " . remediallon. ti required. not induded'unless.spsdaed above MMhie'^ `days A/40 SQUAKE SUMMARY OF FORECLOSURE ACTIVITY., HCAD ACCOUNT NO: 006-114-000-0042 Property Struck off for: Taxes. . :. CAUSE NO- 2002-38833 ,. PLAINTIFF(S):.:. City of La Porte &'La Porte Independent School District JUDGMENT AGAINST: Madenwald, Marceldine JUDGMENT DATE: December 20, 2002 STRUCK OFF DATE:..June 3, 2003 ORDER OF SALE: 'April .1.0, 2003 . DEED RECORDED DATE: June 18, 2003 STRUCK OFF TO: -City of La Porte - CONSTABLE:: Bill Bailey, Constable Precint No 8' PROPERTY ADDRESS:'. 734 S Blackwell -Street LEGAL DESCRIPTION: Lot 42.&. Tr.43 Block 24 (15ft of Lot 43) Block 24 Bay -front to La Porte ADJUDGED VALUE (IN JUDGMENT): • . $15,100.00: FOOTAGE 5 000 - SUMMARY OF SALE ACTIVITY BIDDER:' Hummingbird Homes, Inc BIDDER'S ADDRESS: 722 Garden Oaks Blvd. ..:: . AMOUNT OF BID: $4,500:00 Houston, TX 77018 AMOUNT OF DEPOSIT: . $450.00 AMOUNT DUE: '$4,050.00 BIDDER'S PHONE NO: 713-699-5775-: DRnRATGn 01=0rGNTA(:Gn nF TAXFti nl IF Tr) FArH .II IRmnirTInN RASFn I IPnN :II ln(;MFNT JUDGMENT TO COUNTY, ET AL. .. % SCHOOL % CITY' % TOTAL•. AMOUNT DUE $1,1.72.68 37.87% $1,340.65 43.29% $583.63 18.85% $3,096.96 ASSOCIATED COSTS ON ORIGINAL AND SEALED BID SALES. ESTIMATED AMOUNT AMOUNT OF- "COURT CONSTABLE/PUBLICATI AD LITEM RESEARCH FEE &• TO BE PRORATED TO BID COST ON FEE TISD FEE DEED RECORDING FEE :• TAXES $4,500.00. $863.00 $175.00 ' $0.00 $250:00 . $3,212.00 PRnRATFn TAX AM011NTR TO FACH .It1RISDICTI()N OWED TO COUNTY % SCHOOL % CITY %. TOTAL . PRORATED .. AMOUNT. $1'1216.24 37.87% . $1,390.45 43.29% $605.31 18.85% $3,212.00 ..� Amount of Bid: - $4,500.00 Costs: -District Clerk . $813.00 -Tax.Master : $50.00 Michael Landrum -Constable Fee $0.00 -Publication $175.00 . . -Abstract Fee . . $250.00... -Cost $11.00 :. -Ad Litem Fee: $0..00 Total:.: $3,201.00- Taxing Jurisdictions: Amount in Judgment: % ' Amount Received City of La Porte.. , .. .. $583.63 : , ... 18.85% $603.24, 'La Porte.ISD :. $1,340.65 : 43.29% $1,385.69 Harris County $1,172.68 37.87% $1,212.08: San Jacinto CCD .:... ;.. $0.00 .:... 0.00%.: .; .. : $0.00'.-, :, ...... State of Texas $0.00 .0.00% $3,096.96- 100.00% $3,201.00 Costs + Taxes $4,395.96 ; Adjudged Value. $ 15,100.00 . ' P196 ; Real: Account NLWr Address Owner Name Advanced Personal: Account Number Address Owner Name Advar Real Property Account Preliminary Values HCAD Account # : 0061140000042 Tax Year : 2003 In Owner Name: MADENWALD MARCELDINE Ownership History... Owner Address: 734 S BLACKWELL ST LA PORTE TX 77571-5827 Property Address : 734 S BLACKWELL ST LA PORTE TX 77571 Legal Description : LT 42 & TR 43 BLK 24 15FTOFLT43 BAY FRONT TO LAPORTE State Class Code : Al -- Real, Residential, Single -Family �. Homestead Exemption : -- Special Exemption : -- Disabled Veteran Exemption(s) : -- Jurisdiction Codes : 020 040 047 071 Overlapping/Shared CAD : No Notice Date : 5/1/2003 Capped Account : No ARB Approved Value Status : Noticed, Not Certified Your taxes will be based on Appraised Value, less applicable exemptions, if any. Use market value for comparison with your neighbors. The appraised value below will reflect the homestead cap if applicable. Valuation : TY2003Pre vious Change Appraised Value Market Value Land : 7,500 0 7,500 Improvement : 8,200 0 8,200 Ag/Tmbr/Spc : 0 0 0 Total Value : 15,700 0 15,700 15,700 5-Year Value History... Similar Owner Name Nearby Addresses Related Maps 1 Residential Improved Data Harris County Tax Bill Note: Year 2003 (current year) values are still preliminary and not all values are available. They are subject to change as a result of protests, corrections, and ARB review. Values should be final by late summer. Also, if a preliminary value has yet to be determined, values for the current year will be blank. For any problems or questions with any account, please email us with the account number 6254D12 6ig� b 5 �' 'S49$'$ . 17' iL .$ 2G ' O �; 4i 8 �� i . 2E j A' 16' S';. $ ' /q $'cl ?°idp°'2Q'. ; o,N : Har.ris "t4- 47 SIP,' $+e �V �xj '.• o '° :lot' .$ k 2F A raosal _. .n`}O'^'' � •�i /r,13�$ ' •�.nr1�,' 14 r �7, 2.. A D,str .C'`' iL�'168 ,' AL q/ ' ,'' '�(/ 59 / -'V '$' i i 'mil ' / �i i , ,'i \? p ,�0,4 49� �.•. •$ . �. i �..1'yr , ' ,(� •�.., i'31 2A-l•�' ' • • . 1,5.E A P1pa _ , 47' '$ /� , �i° 724.' $3j' , , ,�T •�s.� -74 . �i ��i i 9i i i� /�/4g' .,' ,'. / fig• / $ ` 3 4?' 1 7 'Y'"`fi�' A4' i ' 49.i" 57� r '. 7/38, ,h' Sl, 9p�,.. / .19,`� / ,$ ,g �4' 4 TBSA$ i'23r m , e $.� 44' $i / r'27.; r a` `23 OF ' w . Scala T" _..200' M ',� •'10 tl .'+Y , / 43' $, $ / �. ..� i28' '. •, ` 2), _ • .-.r��.'r _ .. ' .` C .PUBLICATION DATE: . In . t2. /, . 4z /. '�'" ? a w Jwyot, 2003 .�-.i.'.,.'...:. N ^p "i .,13 /�$ /, ., ., i41i4 i i ,'•,'30 2d'. I. .. .. 4 ` 39, ,4 .... r1S . .17 16 3% 4 R �4' sP i 14 i $ i �' 'v ' ' ' ' �4 $ r � ' {� '28A $ aty 7 .,2 41 1,4 A ' ,ye,'1 ,.� r si � 4' /'34'. 3 A . 2 � . � O , .: •' Q '21/\- "' �$ A' '8 �- I FACET;'3937, 3734,Bunn 5. t ?` a, • B/le HCAD Account # Taxes + Costs Adjudged Value Offer Name: Bid Amount: Recommendation: Reviewed By: Recommendation to Audit Committee 023-209-000-0027 $5,664.77 $5,000 Tyrone Jones $3,500.00 Approve Reason: Resale P028 Reject XBid is not sufficient to cover the costs associated Reason: the judgment nor equal to the adjudged value. Kathy Powell At any time any jurisdiction that was party to the original tax suit can sell the property being held in trust for the lesser of: the taxes + costs or the adjudged value set out in the tax suit. 1 /17/2005 9MMARY OF FORECLOSURE ACTIVITY • HCAD ACCOUNT NO: 023-209-000-0027 Property Struck off for: CAUSE NO: 1998-29647 PLAINTIFF(S): City of La Porte & La Porte Independent School District JUDGMENT AGAINST: Corbin, Elizabeth K JUDGMENT DATE: December 11, 1998 STRUCK OFF DATE: ORDER OF SALE: January 4, 1999 DEED RECORDED DATE: STRUCK OFF TO: CONSTABLE: Bill Bailey, Constable Precint No 8 PROPERTY ADDRESS: 423 N Fifth Street LEGAL DESCRIPTION: Lots 27 & 28 Block 90 Town of La Porte ADJUDGED VALUE (IN JUDGMENT): $ 5,000.00 SQUARE FOOTAGE: 6,250 SUMMARY OF SALE ACTIVITY Value City of La Porte BIDDER: Tyrone Jones BIDDER'S ADDRESS: 6338 N FM 565 AMOUNT OF BID: $3,500.00 Baytown, TX 77520 AMOUNT OF DEPOSIT: $350.00 AMOUNT DUE: $3,150.00 BIDDER'S PHONE NO: 281-630-7301 PRORATED PERCENTAGED OF TAXES DUE TO EACH AIRISDICTION RASFn I IPnK1 -n InMAPKIT JUDGMENT TO COUNTY, ET AL. % I SCHOOL I % CITY % TOTAL AMOUNT DUE $1,048.54 24.93% $2,051.46 48.77% $1,106.77 26.31% $4,206.77 ASSOCIATED COSTS ON nRlr;INAI ANn cFA1 Rn Pin cn1 Rc CONSTABLE/ ESTIMATED AMOUNT AMOUNT OF COURT PUBLICATION FEE AD LITEM RESEARCH FEE & TO BE PRORATED TO BID COST (TISD) FEE DEED RECORDING FEE TAXES $3,500.00 $283.00 $175.00 $750.00 $250.00 $2,042.00 PRORATED TAX AMOUNTS Tn FACN .n IRIcnIr.T1nn1 OWED TO COUNTY % SCHOOL % CITY % TOTAL PRORATED AMOUNT $508.97 24.93% $995.80 48.77% $537.24 1 26.31% $2,042.00 Amount of Bid: $3,500.00 Costs: -District Clerk $233.00 -Tax Master $50.00 Michael Landrum -Constable Fee $0.00 -Publication $175.00 -Abstract Fee $250.00 -Cost $0.00 -Ad Litem Fee $750.00 Fred Bosse Total: $2,042.00 Taxing Jurisdictions: Amount in Judgment: % Amount Received City of La Porte $1,106.77 26.31% $537.24 La Porte ISD $2,051.46 48.77% $995.80 Harris County $902.81 21.46% $438.23 San Jacinto CCD $145.73 3.46% $70.74 State of Texas $0.00 0.00% $0.00 $4,206.77 100.00% $2,042.00 Costs + Taxes $5,664.77 Adjudged Value $ 5,000.00 P028 •t\ �1'A V HARRIS COUNTY APPRAISAL DIsT& ?r REAL PROPERTY ACCOUNT 0232090000027 y 2004 ACCOUNT INFORMATION STATE CLASS CODE: X1 -- Governmental Exempt OWNER INFORMATION LOCATION INFORMATION Owner Name: CITY OF LA PORTE Property Address : 423 N 5TH ST Owner Address: CAUSE NO 98-29647 LA PORTE TX 77571 PO BOX 1115 Legal Description : LTS 27 & 28 BILK 90 LA PORTE TX 77572-1115 LA PORTE EXEMPTIONS INFORMATION JURISDICTION INFORMATION Homestead Exemption: E --Total Exemption Code Jurisdiction/Taxing Unit 2003 2004 Special Exemption : -- Rate Rate Disabled Veteran Exemption(s) : -- 020 LA PORTE ISD 1.68000 1.73350 040 HARRIS COUNTY + RELATED ENTITIES 0.64627 0.64627 047 SAN JACINTO JR COLLEGE DISTRICT 0.13913 0.13913 071 LA PORTE, CITY OF 0.71000 0.71000 VALUE STATUS INFORMATION Notice Date : Value Status : All Values Certified Capped Account: No ARB Approved : 8/6/2004 VALUATION INFORMATION Valuation 2003 Appraised Change 2004 Appraised 2004 Market Value Land : $0 $0 $0 Improvement: $0 $0 $0 Ag/Tmbr/Spc : $0 $0 $0 Total Value: $0 $0 $0 $0 RESIDENTIAL VACANT DATA Card Parcel ID : 20 - 00921.3 - 05.0 - 053.0 - 0 / 000 - 001 4 1 Land Use: 100 -- Residential Vacant Land Land Area : 6,250 sq. ft. CAMA Class: RVO --Residential Vacant Map Facet: 6254C Key Map: 540X Neighborhood : 2164.1 « « 29-------- " ---------- „5 - - - A « ------- A- F26------xi ry---- A7 —« a27 « F26_o- -- "6 ,xs R A a27- - - F25------- A 25 o n A S_ _ C;' 25 5?U - a 9 «229 4 - - „ A23?tO "------ -ry " A22-0w FllA22- " A22r All _ rev- n A IN a21 « ------- „ «I- " A -------- ry18 " „la " A „ F18__---_-_ " F ---- F17 ,zs A „ " "16 +ss NORTH E STREET (UNIMPROVED) 125 A32_125 A. A - 20s2 -,n2 3 004" 46 - - AFA=A"«33 — -------- 58 1 27F2- g-ssi A22222222-0864-352 - F...... 621 j- z- 2g28 A8 W 9 «23 �^24 °' O ___ A22 N ' I 21 A - A123 ------ 20 "18 Us „ AI9 IN „ rL _ „14 „ " F19 - - - _ "14_0073--- - " ]7 " «17 « --- -- 6 „ O A1,zs „ F17 ,zs " O F16 us " ,zs Z WEST MADDISON STREET Z (UNIMPROVED) «-27 - - -- - --- R--------- 2 8 « 25 ,zs — „ 9 -002Z _ _ _ " 24 A11 ------.T A 22_OM_ CL F 14 13„ F 19 ,xs F15 00a5- � 18-00a7-= iR�... «17 . 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O A . • JUDGMENT DATE:: September 13, '1999 STRUCK OFF DATE: January 4, 2000 . ORDER OF SALE: ' October 27, 1999; DEED RECORDED DATE: January 14, 2000 STRUCK OFF TO: City of La Porte CONSTABLE: Bill Bailey, Constable Precint No 8 . " PROPERTY ADDRESS: Lobit . . LEGAL DESCRIPTION: Lots 5, 6, 7 & 8 Block 988 La Porte + ADJUDGED VALUE (IN JUDGMENT): $ 6,300:00 SQUARE FOOTAGE: 12.,500 :.' SUMMARY OF SALE ACTIVITY BIDDER:.. Jessica McGlothlin BIDDER'S ADDRESS: 1422 Magnolia_ Bend West AMOUNT OF BID: � - - $5,000.00 AMOUNT OF DEPOSIT::. $500.00 ' AMOUNT DUE: $4,500.00 "BIDDER'S PHONE NO: 281-573-4684 -" PRORATED PERCENTAGED OF TAXES DUE TO EACH JURISDICTION BASED UPON JUDGMENT. COUNTY, ET " ASSOCIATED COSTS ON ORIGINAL:AND SEALED BID SALES " JUDGMENT TO ' AL: "% ' � SCHOOL -• %� CITY % � .TOTAL AMOUNT -DUE $1,418.34 20.95°% $3,402.33 50.25% $1,950.62 . 28.81% $6,771.29 ESTIMATED AMOUNT. AMOUNT OF. COURT CONSTABLE/PUBLICATI AD LITEM . RESEARCH FEE & TO.BE PRORATED. TO :BID -COST ON FEE (TISD) 'FEE '." DEED RECORDING FEE TAXES . $5,000.00 : $1,054.00 $175.00. $406.25 $250.00 $3,114.75 PRORATED TAX AMOUNTS TO EACH JURISDICTION OWED TO COUNTY % SCHOOL % CITY 0/6TOTAL " PRORATED.- AMOUNT• $652.43 : 20.95% $1,565.05 50.25% $897.27 28.81% $3,114.75 :. Amount.of Bid: $5 000.00. Costs: -District Clerk .. $1,004.00 -Tax Master $50.00 _ -Constable Fee ::.. $0.00 -Publication $175.00 -Abstract Fee : $250.00. '. -Cost $0.00: - ..-Ad Litem :Fee $406.25 Lavonne Brunt " Total:,. $3,114.$3,114.75- Taxing Jurisdictions: Amount in Judgment: ' % ' Amount Received City of La Porte. $1,950.62 -. ..28.81% $897.27 .. La Porte ISD $3.,402.33 50.25% -• $1,565.05 ' Harris .County $1,214.55 ' • 17'.94% $558.69 ' San Jacinto CCD: ; ;' $203,79 • :... 3.01%. :: $93.74 • . :: ; State of Texas $0.00 , " 0.00% $0.00. : $6.71.29 : 100.00% . -.$3,114.75... Costs + Taxes $8,656.54 Adjudged Value.' $ . 6,300.00 . :.. .. P040. 1,16 125 g2 Harri's 4, 29 Va.. 25% 3 Z6 %t % % 4 7 2 W ;5040029 4,j' - % % % Cou'' nty 4 4 .0042 ZQ 126 bk@N% % 32,125 fbg�q — 2 a % al. - 3 R1.1n pprais 5 5 % % A 13 30 !Q Z *00 7 District. 26-OW. 14 7 Is 5-OM5 - 59 "W 84 -0043 kp % 9029 12-16 v % A 24 :D - 9 -3.`titie 0 A - - - - - - - z sin 288 11 2 �24 tie - Z I % A. z 3. W 0 23 it 03 % > 125 26 .:-W. X 22 it > I t-4m- Fo -QD4:k' 0' ftl ga-« od 1�2 W 14 0 Is 19 . 17 % U E- .% 6 -43 O. Vrdw.% 1. %I % 0 % .% % b 04 -------- STREET.. 0 z dTLPX hs 20 0 ' % % 4 4R 7 81 3 6 law, b :f4O' 5 96 V7` scale. I i0o PUBUCA rioN DATE 0 9 86 117 Dotobei,06,199 CAI' �4 33' 40, -39 ro v 4 X. 2 36, 2 40 76 25 3,' v 12 7 7, % ' POO." %4 %% %% 47, 40 4.. 49 UZI 25, 7 FACET:T 6 40, '31 �24 116 -V .62 JV to 13. 25, 0- 7 V, ;24, 2 17 .0 IVY Munn MIN MIN Tax Statement ... .. - - .Page 1 of 1 . .1999 Property Tax Statement Statement Date March 23, 2000 Account Number' . ..024-157-000-0048 • • B/30 Recommendation to Audit Committee 4LMA,R'Y OF FORECLOSURE ACTIVITY..... HCAD ACCOUNT NO: 023-185-000-0001 &' 023-185-000-0029 CAUSE NO:. 2000-35440 . PLAINTIFF(S): -.'City of La Porte & La Porte Independent School District -JUDGMENT AGAINST:: White, Edward JUDGMENT DATE: September 14, 2001 STRUCK OFF DATE: June 4, 2002... ORDER OF SALE:.. April 16, 2002 DEED RECORDED DATE':' July 1, 2002 STRUCK OFF TO:' City of La Porte : CONSTABLE: Bill Bailey, Constable.Precint No 8' PROPERTY ADDRESS: State Highway 146 LEGAL DESCRIPTION: Lot 1. & 34 Block 52 La Porte ADJUDGED VALUE( IN JUDGMENT): . $14,000.0.0 • SQUARE FOOTAGE: 6,250.: SUMMARY OF SALE ACTIVITY BIDDER:. - Dennis R.,.McClung BIDDER'S ADDRESS: 631 Baywood . AMOUNT OF BID: $12;000.00 Shoreacres, TX 77571'` . AMOUNT OF DEPOSIT:. $1,200.00 AMOUNT DUE: - $1.0,800.00 BIDDER'S PHONE NO:. 281-861-1338 : PRORATED PERCENTAGED OF TAXES DUE TO EACH JURISDICTION BASED UPON JUDGMENT JUDGMENT TO COUNTY, ET" AL. % SCHOOL %' , CITY % TOTAL . . AMOUNT DUE - $3,841.20 . • 24.90% $7,533:731. 48.83% $4,053.32 26.27% $15,428.25 ASSOCIATED COSTS ON ORIGINAL AND SEALED RID SAI FS ESTIMATED AMOUNT AMOUNT OF COURT' CONSTABLE/PUBLICATI AD LITEM RESEARCH FEE & TO BE PRORATED.TO BID COST ON FEE (TISD) FEE - : DEED RECORDING FEE 'TAXES $12,000.00 $842.00 .. . $350.00. $1,000.00 $250.00 $9,558.00 PRORATED TAX AMOUNTS TO EACH JURISDICTION . OWED TO . COUNTY % SCHOOL % CITY % TOTAL PRORATED AMOUNT $2,379.67 .24.90% $4,667.24 48.83% $2,511.08 26.27% $9,558.00 Amount of Bid: $12,000:00 Costs: -District Clerk ' $792.00 -Tax Master $50.00 Chris Stacey -Constable Fee.. $t):00 -Publication $350.00 -Abstract'.Fee $250.00 ". -Cost $0.00... -Ad Litem Fee. $1,000.00 Thelma Elizalde , Total: $9,558.00. . Taxing Jurisdictions: Amount in Judgment: ' % Amount Received . City of La Porte .$4.,053.32- 'V,533.73 2Q.27%. . $2,511.08 . La Porte ISD'. - 48.83%' - $4,667.24 : Harris County. $3,290.64 . •21.33%• $2,038.59 San Jacinto CCD .- $550.56'. 3.570% $341.68 State of Texas - . $0.00 0:00% : $0.00 $15,428.25.. 100.00% .. $9,558.00.. •.. , Costs + Taxes ` $17,870.25.. .. Adjudged Value $. 14,000.00 P147 •_ _ -�_._:_« �_.,=s--- 8 e-� ;._r: Harms .: 25 ,65- ��Q__� s--- Z-=.=- �p =-� --=- 1= County.-. 0----- --- 1232_- «. l2:'_--- 21_D018_ .'. _2 ,.: 22_�019_ 2------n 21 A. 3 'txs «' - „ 3 ■ . 12--'---� 21-' '�------ z0-00N-- 4 __ p_.�5- _° 4-g[, 2- �« 21_0_.--- „ 20 .. 4 19. _ ---= a 15_•0014 :a At „ _ 5---- « 4_-0011:n 19 « 17 , 18 ix5 1os = ---= District • 17 « 17 „ g 4« 17 1 - �; _ « 2 �N APP l� ,_ -« ., F7.---« -----« 30_,_is_•.- 3---• V�, d 31'.- -- 1 3--30 4 « 29. « 3 fA «..1 « 29 J>003- - - - �i 30v002� - n 4' -4 '. R ' 229 -- _.:R 26 - - - - « 5 ' 'ns « 2B.Op27- = g us a n zs _ _ _ : _ - - 01 _ - �0027 _2.2a _ _ N - p 2 .1as _�y1 ti. 27' •' 2t7 28 1�G 7 _pOBB-'- -6 „ 27.. 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A�oa s"'_ 1 1 .1 1 .1 ' �' FACET ��•.� 41241241x11zel xs x.12 12 341N -. ,62.54C` . -- - .. 1 4124124 21131124 24 24 26 - y ' 26 25 25 • 25 25 25 25 1 _ -- xs 5>� 25 26a2 1,2,6,26'625 27 g �5 :3 iy'.1 I1�10'�29� g ': -_ I..J':• 6.15 41 12 1• 1 8 6 25 25 25 25 ad Zd 25 25 1 I 1 '1 «; » 4i �` p1j ar 1•� 1 1.413*1 1 9F� p I 11 1 "151 1�.1x62525 25� 25 5 VLV V/'�V Enum Bunn U®i/® B/440 Recommendation to Audit Committee *MMARY OF FORECLOSURE ACTIVITY • HCAD ACCOUNT NO: 056-263-001-0011.. CAUSE NO: 2002-00654 PLAINTIFF(S): City of La Porte & LaPorte Independent School District . � JUDGMENT AGAINST: Storm, Donna Mae Kennedy, et al JUDGMENT DATE:. September 6, 2002 STRUCK OFF DATE: March 4, 2003 " -ORDER OF SALE: • December 5, 2002 DEED RECORDED DATE: May 9, 2003 STRUCK OFF TO: City of LaPorte CONSTABLE: Bill Bailey, Constable.Precint No 8 PROPERTY- ADDRESS: - S Y Street LEGAL DESCRIPTION: Lot 11 Block 1 Oakhurst Addition ADJUDGED VALUE ( IN JUDGMENT): • $ 6,200.00 " SQUARE FOOTAGE: 4,000 ' SUMMARY OF SALE ACTIVITY BIDDER. H. Micah Christian BIDDER'S ADDRESS: PO Box 1601 = : . AMOUNT OF BID: '$4,000:00' . La Porte, TX 77572 . AMOUNT OF DEPOSIT:. $400.00 _ AMOUNT DUE: . $3,600.00 BIDDER'S PHONE NO: 281-867-9346 PRORATED PERCENTAGED OF TAXES DUE TO EACH JURISDICTION BASED UPON JUDGMENT. . ASSOCIATED COSTS ON ORIGINAL AND SEALED BID SALES • JUDGMENT TO COUNTY, ET I -.SCHOOL 1%.. CITY % - TOTAL ' AMOUNT DUE $1,388.28 . 29.64% $2,076.43 " .44.33% $.1,218.85 26.02% . $4,683.56 ' ESTIMATED AMOUNT AMOUNT OF' COURT . CONSTABLE/PUBLICATI AD LITEM RESEARCH FEE &-.'- TO BE. PRORATED TO BID COST -ON FEE (TIS.D) FEE DEED RECORDING FEE '-TAXES $4,000.00 $1,168.00 $175.00 $325.00 $250.00 $2,082.00 PRORATED TAX AMOUNTS TO EACH JURISDICTION : OWED TO COUNTY % SCHOOL % CITY % TOTAL PRORATED AMOUNT $617.1.4 29.64% $923.04 .. 44.33% $54.1.82 26.02% ' • $2,082.00 Amount of Bid: $4,000.00 Costs: -District Clerk :. $1;118100 -Tax Master • . $50.00 Mike Landrum ... -Constable Fee $0.00 -Publication $175.00 -Abstract Fee $250.00. -Cost $0.00.'...'.. -Ad Litem Fee $325:00 Nina J. Taylor Total: $2,082:00 :.. Taxing .. Jurisdictions: Amount in Judgment: % Amount Received " City of La Porte . $1,218.85 26.02% $541..82 La Porte ISD $2;07fi.43 : , . 44.33% : ' $923.04 Harris County $1,192.02 25.45%. . $529.89 . ". San'Jacinto CCD .: $196.26 :.' .: .' 4.19%'.:, _$87.24 State of Texas - :. : '. ' ... $0.00 0.00% , $0.00 - • $4 683.56 � 0 00% 10 , - $2.,082.00 - Costs + Taxes • $6,601.56 ' Adjudged Value $ : 6,200:00P193 • 625265 --- i'':IB B 7 B 6 t4 13 6252B6 96..!s 7 _ . t R p Q all w.. ... .. .. .aom _. t — .. ]61exIQ 'im s • 1 $ X` 8e � •' WIN 1 B \ 1 .. \ 4 N gg RES A Zm• if - ` 3 • ( 1 x .' .. • ' •• ' _ Of2.Bf2.0ppO01f g aoo . � _ • 'S. =AC d WOODS. 8AY .T R t _ °woaoom . I15-460 '-(b11RON AREA aa066 AC' . ON TIE BAY 1 . . .. _.'.. .. 9 = WOODS O 6839N Y T 115_460 .. m 1 •1 ' '4oa 2 .. .262 � �.1 T I DEW00 x 3 1 6 kA SEC. 1 -lab° 11 p � �uol iu+auimm .. i am 1.BBBOAC .. _ - . .. - .. .. .A 26x �.-A.t_m 7 . • � RES. B 1•• ISO '.ly IBA if E0 >h EB i� 21 Ofiifl-0000020 n _�317 t e '$ '1 A B y� - - • .. 7.11b S's AC..lop M b ♦ N Y p I p M b IA 3' CRrEShCTOmno .. no LL S_ oie\ CRESCENT AVENUE RES BI 1 o o 17B '1 0 617p 17 1818 16 11 �13 12 ,1 1 �0 0�9 B 17 B 2 ••` 'a• e fQ7 n6.1(q n0 ' 4p40 p N. li um pl w p-7• 2•" e 1 �bg�g � m x 1 12 S m ♦)001 _ g .. $ - -_ 1 im . 3 m H I¢lQ �mg - • - . ,•r r$r 34A 1- 6 . 6. zn7 B `Blfli4�—B 5A 3�44B 8 33�p2 f 6 s.� a 6- _� ; 6 .obi- w� - NBI° ao•t1l.aaaoaf c 34D••1' 4e16f _ H 8 7 B g17 jlB3 H B H 7 s 1 a�• �' �H ba BAYSHORE AVENUE 05B-009 B 7 B 9 10 !l 12 3 �1 6. I�IB 7 B f 4� \ miz 5K rAYSHORE AVE. N ;2 i3 ' 1 _ 6 r I 5B �\ • 4fno • A 95 Slo 1 X 4 $ 8 I ;� tF N M a b 3 3 SBIO if07 -0DOS f t°_�Y ' W .' - 12 I 4 �C9 @2 QI 016x44-00141007 �.._ 41136 ]OB y� �31 I33 192 191 30 �Bf 125 >W a 1--1 12x00AC SJ r aofs .. ! 1�e� t ■� t, .1 a Ig 4 1� a al t ASoa ry� .,« PINE BLUFF ST ' 6252D7 6252D2 B/50 Recommendation'to.Audit Committee SUMMARY OF FORECLOSURE ACTIVITY. HCAD ACCOUNT NO:, 023-208-089-0003 . ; . .: Property Struck off for:' Value.. . CAUSE NO:: :. • 1999-12071:.:.'.:: . PLAINTIFF(S):," City of La Porte & La Porte In ependent.School District ."JUDGMENT AGAINST:.: Young, Lucille etal JUDGMENT DATE:- April 11:1 2000 STRUCK OFF DATE: .October 3, 2000 - ORDER .OF SALE: ' • June •22, 2000 DEED RECORDED, DATE:. October 17; 2000- .STRUCK OFF TO: :. City of La Porte'.''. •: CONSTABLE:. Bill Bailey, Constable.Precint No 8 PROPERTY ADDRESS:: 428 North Fifth Street LEGAL DESCRIPTION:. Lots 3 & 4 Block 89 La Porte" ." ADJUDGED VALUE ( IN JUDGMENT):'• $14,300.00 SQUARE FOOTAGE:. 6,250 .' ' SUMMARY OF SALE ACTIVITY BIDDER:. Tyrone Jones BIDDER'S ADDRESS:.-, 6338 N FM 565 AMOUNT OF BID:. .: . $3,500.00 `. Baytown, TX 7752G- AMOUNT OF DEPOSIT: $350.00 : -AMOUNT DUE.:. .. - $3,150.00 BIDDER'S PHONE NO: 281-630-7301' : PRORATED PERCENTAGED OF TAXES DUE TO EACH JURISDICTION BASED UPON JUDGMENT JUDGMENT TO COUNTY, ET AL-. 1 % SCHOOL % CITY % TOTAL AMOUNT DUE $4,482.01. 24.01% 1604.85 47.49% . $5,31.8.981 28.50% . $18,665.84 ASSOCIATED COSTS ON ORIGINAL AND SEALED BID SALES ESTIMATED AMOUNT AMOUNT OF COURT CONSTABLE/PUBLICATI AD LITEM ' RESEARCH FEE & TO BE PRORATED TO BID COST ON FEE (TISD) ''FEE DEED RECORDING FEE TAXES 13,500.00 $690.00 $175.00 $1,070.00 $250.00'. $1,315.00 PRORATED TAX AMOUNTS TO EACH JURISDICTION. OWED TO ` COUNTY % SCHOOL %. a CITY % TOTAL . PRORATED AMOUNT. $315.76' 24.01%' $624.52 47.49% $374.72 28.50% $1.,315:00 Amount of Bid: : '... $3,500.00 .Costs:: -District Clerk . $640.00.. '.,. =Tax.Master $50.00 Chris Stacey. -Constable Fee, . $0.00•.1 - . wPublication ; -Abstract Fee . $250.00 _ -Cost $0.00 :. •. -Ad Litem Fee'.; - ...• : $1 '070.00 .Ronald Nelson', Brown .. Total: $1,315.00 • -Taxing • .. Jurisdictions: Amount -in Judgment:--.: '•.' %'. , - Amount Received: City of,La Porte $5,31.8.98 .. ' 28.50% :: $374.72 La Porte ISD ' $8,864:85. . 47.49% . : $624.52 Harris County- ..�..: � • .. � ...:.. :_ - • _$3,810.66.;;•:. `• ' :..'20.42%, ..�= ;. $268.46•., -.... •. .. . San Jacinto CCD.:. $671.35 :`•. .• 3.60%0 $47.30`. State of Texas::. •.::. .,.: $0.00 ::0:00% $0.00.' . $18,665.84 _ .:100.00%... $1.,315.00, ,:. Costs +..Taxes..: $20,856.84 Adjudged Value $ 14,300.00 .: -; : ,.. : ''; •: .'', P198 Real: Account Nu1W Address Owner Name Advanced Personal: Account Number Address Owner Name Advar Real Property Account HCAD Account # : 0232080890003 Tax Year : 2000 Owner Name : CURRENT PROPERTY ONWER Ownership t History... Owner Address : 428 5TH ST HOUSTON TX 77044-0000 Property Address : 428 5TH ST LA PORTE TX 77571 Legal Description : LTS 3 & 4 BILK 89 LA PORTE State Class Code : Al -- Real, Residential, Single -Family Homestead Exemption : -- Special Exemption : C -- Prorated Exemption Disabled Veteran Exemption(s) : -- Jurisdiction Codes : 020 040 047 071 Overlapping/Shared CAD : No Notice Date Capped Account : No ARB Approved : 8/4/2000 Value Status : All Values Certified Your taxes will be based on Appraised Value, less applicable exemptions, if any. Use market value for comparison with your neighbors. The appraised value below will reflect the homestead cap if applicable. Valuation : TY2000Pre vious Change Appraised Value Market Value Land : 5,000 0 5,000 Improvement : 9,300 0 9,300 Ag/Tmbr/Spc : 0 0 0 Total Value : 14,300 0 14,300 14,300 5-Year Value History... Similar Owner Name Nearby Addresses Related Maps Data Harris County Tax Bill Note: For any problems or questions with any account, please email us with the account number (if you have it) and the nature of the problem or question. Home Records Maps Forms HCAD Info Links News Munn an M �,. a®®® B/60 Recommendation to Audit Committee • SUMMARY OF FORECLOSURE ACTIVITY HCAD ACCOUNT NO: .. 023-197-066-0003 & -0033 . Property. Struck off for:. Value CAUSE NO:.. 200.1-65458 PLAINTIFF(Sy: :City of. La Porte & La Porte Independent School District .'. JUDGMENT AGAINST: Johnny -Joe Evans & Heirs'-. JUDGMENT DATE: :May 28, 2002 :.STRUCK OFF DATE::. March 4; 2003. ORDER OF SALE:..' November 26, 2002 DEED RECORDED DATE: May 9,- 2003. .. STRUCK - OFF TO:- : City of La Porte: CONSTABLE: •: , Bill Bailey, Constable Precint No 8 PROPERTY ADDRESS:: 224 North -Sixth Street.: . LEGAL DESCRIPTION: .:. Lots 3 & 4 Block.66 La Porte ADJUDGED VALUE (IN JUDGMENT): SQUARE FOOTAGE: 61250 SUMMARY OF SALE ACTIVITY BIDDER:-:': Clenell.Carter BIDDER'S ADDRESS: 3865 Pecan Circle" AMOUNT OF BID: $4,500.00';_ LaPorte,' TX.77571-. AMOUNT OF DEPOSIT: .$450.00 AMOUNT DUE:. - ' ` . :, $4,050.00 - .. BIDDER'S PHONE NO: ..281.-470=6734. :. PRORATED PERCENTAGED OF TAXES DUE TO EACH'JURISDICTION BASED UPON JUDGMENT JUDGMENT TO COUNTY, ET . AL.. % .• .: SCHOOL .% :` % CITY:. % TOTAL AMOUNT DUE $2,976.431 26.58% $4,757.69 , 42.:49% .$3,462,971 30.93% _ $11,197.09 ASSOCIATED COSTS ON ORIGINAL AND SEALED BID SALES :• ESTIMATED AMOUNT AMOUNT OF' :' COURT'% CONSTABLE/PUBLICATI ADIITEM RESEARCH FEE & TO BE PRORATED TO BID COST ` ON FEE (TISD) FEE' DEED RECORDING FEE TAXES: $4,500.00 $781:00 $175.00'-- $750.00 $250.00 $2,544.00' PRORATED TAX AMOUNTS TO -EACH JURISDICTION OWED TO COUNTY % SCHOOL % CITY '/o TOTAL PRORATED. AMOUNT $676.25 26.58% . $1,080.96 42.490 $786:79 1'30.93'%' $2,544.00 Amount of Bid: $4,500.00 Costs:. -District Clerk. ..: $731.00. -Tax Master :." $50.00 Chris Stacy- . .-Constable nstable Fee p $0.00 :Publication ;.. $1.75.00: " t.:. -AbstracFee :. .$250.00 . , -Cost $0.00.. -Ad Litem Fee $750:00 Samantha Yolanda Davis Total:; $2,544.00 Taxing-.. Jurisdictions: Amount in -Judgment: % .. . Amount Received : City of La Porte $3,462.97: :30.93%..... $786..79 ..., .. .. La Porte.ISD. , :--' -$4,7.57:69 42.49%., Harris County -':,$2,562.86 = 22.89% : $582.29 San Jacinto CCD :. : • :. $413:57. :.: : '3:69'. :.. .:.$93.96 '.:..::.•; . ... :.:.: State of Texas .. . ; : $0.00 0.00% .. , . $0.00 $11,197.09 100.00% $2,544.00 Costs + Taxes.- $13,153.09 : .. _ Adjudged Value $ 6,000.00 - P200 Munn ®®®®' ®®®vvo,t , B/70 OMMARY OF FORECLOSURE ACTIVITY'. HCAD ACCOUNT NO: 023-197-066-0009.:. •.: Property Struck off for: Value'. ' • CAUSE NO: 2001-65458 .:::. PLAINTIFF(S): Cityof La Porte & La Porte Independent School District JUDGMENT AGAINST: -. Johnny'Joe Evans & Heirs"". JUDGMENT DATE:: .. .. May 28, 2002 STRUCK OFF (DATE: ;." , _ March 4; 2003. ' ORDER OF SALE: ' . : November 26; 2002. DEED RECORDED DATE: May 9, 2003 : STRUCK OFF. TO:.,: City of La Porte ` CONSTABLE:.. Bill Bailey, Constable Precint No 8 .. PROPERTY ADDRESS:... 210 North Sixth Street LEGAL DESCRIPTION: Lots % 10 & 1.1 Block 66 La Porte . ADJUDGED VALUE IN. JUDGMENT):".... $ 7,500:00 .. ' SQUARE FOOTAGE:.. , : :.:.9,375 - SUMMARY OF SALE ACTIVITY '.. BIDDER:` . Clenell. Carter :. BIDDER'S ADDRESS:. 3865 Pecan Circle:. . AMOUNT OF BID: ...:.-.$6,400.00_ :..:. > .. ;. = ..La Porte, TX77571.- AMOUNT OF DEPOSIT:.. ' - $640.00 AMOUNT DUE: $5,760.00 . - BIDDER'S PHONE NO:. 281-470=6734 .. - PRORATFD PFRCFNTAGFD OF TAXES DUE TO EACH JURISDICTION BASED UPON JUDGMENT'-:, JUDGMENT TO COUNTY, ET AL: % SCHOOL:' - W CITY' % TOTAL . AMOUNT DUE . $3,011.12 . 26.68%1 K168,58 -: '45.80% $3;104.45 27.51% $11,284.15 ASSOCIATED COSTS ONORIGINAL AND SEALED BID SALES ESTIMATED AMOUNT AMOUNT OF COURT' 'CONSTABLE%PUBLICATI AD LITEM RESEARCH FEE & ' TO BE PRORATED TO BID' ..COST ON FEE (TISD) FEE- " DEED RECORDING FEE - TAXES' $6,400.00 •..$0.00 $175.00 $0.00 $250.00 $5,975:00' PRORATED TAX AMOUNTS TO EACH JURISDICTION : '- OWED TO .. COUNTY % ' SCHOOL•1" % CITY % TOTAL :. PRORATED. .... AMOUNT' $1,594.40" 26.68% $2,736.78 45.80% $1,643.82.• 27.51% $5,975.00 ' Amount of Bid: .$6,400.00 . Costs: -District Clerk .: " : -$0.00.. = -Tax Master .:.. -Constable Fee. :. .. :.. $0.00 -Publication $1.75.00 -Abstract Fee :... $250.00 -Cost $0.00. ' ...-Ad Litem Fee : :. $0.00.. :. Total: $5,975.00: . Taxing.: Jurisdictions: Amount in Judgment: % Amount Received'. City of La Porte : $3,104.45 27.51°h . ". $1.;643.82 . La Porte ISD :. $5,168.58 . .. `45.80% ... $2,736.78 Harris County ' $2,591..04 - 22.96% : $1,371.97' '-San Jacinto-CCD :. '. .:. :°:.... - . $420.08 3.72%. .:.., .-$222,43- State of Texas, .' : $0.00 0:00% $0:00 $11,284.15 . .. -100.00% .. . $5,975.00 Costs + Taxes $11;709.15 Adjudged Value. $.:, 7,500:00 P201 • ., : _ i • B/80 IMARY • OF FORECLOSURE ACTIVITY • HCAD ACCOUNT NO: 023-1.97-066-0034 .° Property Struck off for: Value . CAUSE NO:: 2001-65458 PLAINTIFF(S):- City of La Porte & La Porte Independent School District JUDGMENT AGAINST: Johnny Joe Evans & Heirs , JUDGMENT DATE: May 28, 2002 :: ` . STRUCK OFF DATE:- : March 4, 2003 ORDER OF.SALE: -November 26, 2002 , DEED RECORDED DATE: May 9, 2003 STRUCK OFF TO: City of La Porte CONSTABLE:. Bill Bailey, Constable Precint No 8 PROPERTY ADDRESS': 209 North Fifth Street LEGAL DESCRIPTION: Lots 21 & 22 Block 66 La Porte ADJUDGED VALUE (IN JUDGMENT): $ 5;000.00 SQUARE. FOOTAGE: , 6,250 SUMMARY OF SALE ACTIVITY BIDDER: Clenell Carter BIDDER'S ADDRESS: 3865 Pecan Circle . . AMOUNT OF - BID: - $4,500.00 La Porte, TX 77571, AMOUNT OF DEPOSIT: • $450.00 AMOUNT DUE: 14,050.00.... .. : : ' BIDDER'S PHONE NO: : 281-470-6734.: ' PRORATED PERCENTAGED OF TAXES DUE TO EACH JURISDICTION BASED UPON JUDGMENT JUDGMENT TO COUNTY, ET AL'. % SCHOOL. CITY % - � TOTAL _ AMOUNT DUE $2,242.59 '13.29% ' $11,38-1.40 67..46%1. $3,247.78 19.25% .$16,871:77 .. ' •. ' . ESTIMATED AMOUNT AMOUNT OF � COURT CONSTABLE/PUBLICATI AD LITEM RESEARCH FEE & TO.BE PRORATED TO BID 'COST ': ON FEE.(TISD) FEE DEED RECORDING FEE • -TAXES ' $4,500.00 $0.00 $175:00 $0.00 $250.00 $4,075.00 - •' .PRORATED TAX AMOUNTS TO EACH JURISDICTION OWED TO' COUNTY % SCHOOL-1 CITY 6/6 TOTAL • PRORATED AMOUNT: .. $541.65 � ' 13.29%• $2,748.92. 67.46% :$784.43 19.25% • $4,075.00 ' Amount of Bid: � • � � � �� ' $4.;500:00. �� � � � � � � � � • Costs: District Clerk $0.00 . �. • . � -Tax Master � ... • ` . $0.00 � .... . -Constable Fee. .. - $0.00... •..:• • :.. � .. .. ... � .. -Publication $17500 �. . •• -Abstract Fee $250:00 : �. _ _ •: � � � . . . -Cost $0.00 .. � _Ad Litem�Fee .$0.00 . _' . .. � . :. .. ' � . ..�. ,. • • � Total:.. $4,075..00. , • � � Taxing` � � � � .. :. � � • . � :.. �: Jurisdictions:' Amount'in Judgment: % : Amount Received . City of La Porte ,•.. - $3,247.78• � 19.25% $784.43 ... � .. � • •. � . La Porte ISD • �• � � � � . $1.4,381.40 ' .�• � : , � 67:46%... $2,748:92 � • • - � �� . • • Harris County � , • � :. � ,: $1,909.08:. • . .. �-. 11.32% �• � $461.10 San Jacinto CCD1 $333.51 � � .. 1.98% �•:. .' $80.55.: �: • _. � .: -. � • . • �� State of Texas. •,�,:� '$0.00 � '• � � 0.00°/u : $0.00 :' .... :. ;• : ; .:.. $16,871.:77100.00%. $4,075.00 ... .. Costs +Taxes.• f $17,296.77 .. .. .: . �. � � � � .. � • • .. , _ � .. � �... Adjudged Value $ 5,000.00.' . ` .� • -� •• � � ::P202 Munn Bunn 0 0 5. CITY OF LA PORTE Interoffice Memorandum TO: Bang Beasley, Councilman Howard Ebow, Councilman Chuck Engelken, Councilman Peter Griffiths, Councilman Debra Brooks Feazelle, City Manager FROM: Cynthia Alexander, Assistant City M ager Shelley Wolny, Investment OfficeK7U) DATE: January 17, 2005 SUBJECT: Quarterly Investment Report For the first quarter of the 2005 fiscal year, the City's investment portfolio yield has been between 2.14% and 2.45%. The average return on the portfolio for the first quarter of the fiscal year was 2.33%, which is 8 basis point above the average yield of our benchmark, which was 2.22% (see graph below). The current year to date interest earned for the 2005 fiscal year is $163,088. City vs. Benchmark 3.00% 2.50% 2.00% 1.50% 1.00% ` of �s� Voa,Ao` Portfolio Yield Benchmark At December 31"' the City's portfolio consisted of 52% in Agency Notes, 25% in Texpool, 10% in TexSTAR and 13% in Logic (see pie chart below). 52% By Investment Type 25% 10% 13% 0 Texpool E TexSTAR 13Logic 13Agency Notes Over the past few months, the Fed has raised the overnight target rate several times, which has caused yields to slowly rise on the short end. Our main focus is to continue to ladder the portfolio. • i At the end of the first quarter, the City's portfolio consisted of 47% of the portfolio maturing overnight (see graph below). 10% of the City's portfolio matures in one year and 43% of the City's portfolio matures in 12-24 months. By Investment Maturity 43% 1 47% 10% Overnight N 1-12 Months E3 12-24 Months Currently, the 3-month T-Bill is at 2.22%; 2 year, at 3.01%; 5 year, at 3.60%; and, the 20-year is at 4.88% (see yield curve below). Yield Curve 5.50% 4.50% 3.50% 2.50% 1.50% 0.50% 0 5 10 15 20 3 Months Ago —Current The overnight rate is currently at 2.25%. We will continue to focus on laddering the portfolio to maintain a constant cash flow and a liquid position. 2 Year T-Note 12.00% 10.00% s.00% 6.00% 4.00% 2.00% 0.00% 19` SO 0' CP old' C)" CO 0 6' Off' Qk In summary, we will continue to invest the City's funds in conservative investments, as authorized by the Public Funds Investment Act, always keeping in mind Safety first, and then Liquidity and lastly Yield. 2 • 0 Portfolio Composition and Value as of December 31, 2004 100.00% 80.00% Par Book Market Days to Value Value Value Maturity 60.00% Investment Pools 14,346,958 14,346,958 14,346,958 1 Agencies 15,992,472 15,982,472 15,916,900 459 40.00% Total 30,329,430 30,329,430 30,263.858 242 20.00% 0.00% Investment Pools Agencies 47.30% 52.70% ®Dec-04 1.3un-04-*-Dec-03 Investment Maturity Schedule as of December 31, 2004 Book Value Percent 1.2 years 0-3 months 14,346,958 47.30% 9-12 months 2,996,618 9.88% 1-2 years 12,985,854 42.82% 9-12 2 or more years - 0.009A moot "Moab Total 30�3294�30 100.00% Portfolio Performance for the mouth of December 2004 Weighted 2.90% Portfolio Benchmark Average 2.49% Yield Yield* Maturity 2.07% Pooled Funds 2.45% 2.50% 9.26 months Bond Funds 2.07% 2.22% 1 day 1.66% 1.24% Total 2.26% 236% 6.24 months 0.83% 0.41% *Thelled funds benchmark is based on the a Semonth)Y yield ofa 6-month Treasury. '• 0.00% Pooled Funds Bond Funds Total The bond fiords benchmark yield is based on the average monthly yield of a 3-month Treasury. The total is based on weighted average monthly benchmark yields. 13 PonfWio Yiek1 ■ Benchmark Yield• Portfolio Earnings for months ended December 31, 2004 250,000 Budget Actual Percent 200.000 General 236,410 38,373 16.23% Enterprise 41,540 5,437 13.09% 150,000 a Internal Service 64,200 16,936 26.22% 100.00D00 Total 342,150 o 60,646 17.73% 50,0 General Enterprise Internal Service OBudget ■Actual Yield Curve 4.00% 350% 3.00% 2.50% 2.00% 1.50% 1.07% 0.50% 0.00% 3 mo 6 mo t 1T 2yr Syr tOet-04-b-Nov04-Ig-De00t Average for December % of funds invested in: 2004 2003 Securities & Pools 95.96% 97.79% Bank Depository 4.04% 2.21% Total % of funds invested 100.00% 100.00% Operating Accotint Balance f 1,278,446 S 799,969 0 0 Monthly Summary Report of Cash Management for December 2004 L Purchases and Associated Interest Rates 2. Calculation of Purchasing Effectiveness START END INVESTMENT DAYS INVESTMENT DAYS RATIO OF ADJ 6 MONTH ADJ TYPE DATE DATE COST RATE HELD COST * COST TOTAL RATE RATE T-BILL T-BILL AGY * 12 1 04 12 31 04 2,000,000.00 3.080% 31 2,000,000.00 62,000,000.00 7.124% 3.080% 0.219% 2.400% 0.171% AGY * 12 1 04 12 31 04 2,000,000.00 3.050% 31 2,000,000.00 62,000,000.00 7.124% 3.050% 0.217% 2.400% 0.171% AGY * 12 1 04 12 31 04 2,000,000.00 3.020% 31 2,000,000.00 62,000,000.00 7.124% 3.020% 0.215% 2.400% 0.171% AGY * 12 1 04 12 31 04 998,652.61 3.000% 31 998,652.61 30,958,230.91 3.557% 3.000% 0.107% 2.400% 0.085% AGY * 12 1 04 12 31 04 996,959.55 2.680% 31 996,959.55 30,905,746.05 3.551% 2.680% 0.095% 2.400% 0.085% AGY * 12 1 04 12 31 04 1,000,000.00 2.640% 31 1,000,000.00 31,000,000.00 3.562% 2.640% 0.094% 2.400% 0.085% AGY * 12 13 04 12 31 04 11997,986.39 2.625% 18 1,997,986.39 35,963,755.02 4.133% 2.625% 0.108% 2.500% 0.103%- AGY * 12 1 04 12 31 04 998,631.46 2.500% 31 998,631.46 30,957,575.26 3.557% 2.500% 0.089% 2.400% 0.0850/C AGY * 12 1 04 12 31 04 2,000,000.00 2.435% 31 2,000,000.00 62,000,000.00 7.124% 2.435% 0.173% 2.400% 0.171%� AGY * 12 1 04 12 31 04 990,241.94 2.375% 31 990,241.94 30,697,500.14 3.527% 2.375% 0.084% 2.400% 0.085% AGY * 12 1 04 12 31 04 1,000,000.00 2.300% 31 1,000,000.00 31,000,000.00 3.562% 2.300% 0.082% 2.400% 0.085% TEXSTAR 12 1 04 12 31 04 3,034,601.09 2.067% 30 3,034,601.09 91,038,032.70 10.461% 2.067% 0.216% 2.400% 0.251% TEXSTAR 12 31 04 12 31 04 3,039,934.23 2.191% 1 3,039,934.23 3,039,934.23 0.349% 2.191% 0.008% 2.590% 0.009% TEXPOOL 12 1 04 12 9 04 6,197,583.84 1.943% 8 6,197,583.84 49,580,670.72 5.697% 1.943% 0.111% 2.400% 0.137% TEXPOOL 12 9 04 12 10 04 5,897,583.84 1.982% 1 5,897,583.84 5,897,583.84 0.678% 1.982% 0.013% 2.420% 0.016% TEXPOOL 12 10 04 12 13 04 6,129,358.60 1.998% 3 6,129,358.60 18,388,075.80 2.113% 1.998% 0.042% 2.440% 0.052% TEXPOOL 12 13 04 12 21 04 3,929,358.60 2.107% 8 3,929,358.60 31,434,868.80 3.612% 2.107% 0.076% 2.500% 0.090% TEXPOOL 12 21 04 12 31 04 7,429,358.60 2.157% 10 7,429,358.60 74,293,586.00 8.537% 2.157% 0.184% 2.540% 0.217% TEXPOOL 12 31 04 12 31 04 7,439,973.23 2.178% 1 7,439,973.23 7,439,973.23 0.855% 2.178% 0.019% 2.590% 0.022% LOGIC 12 1 04 12 31 04 3,860,056.86 2.130% 30 3,860,056.86 115,801,705.80 13.306% 2.130% 0.283% 2.400% 0.319% LOGIC 12 31 04 12 31 04 3,867,050.31 2.237% 1 3,867,050.31 . 3,867,050.31 .0.444% 2.237% 0.010% 2.590% 0.012% 2.42% TOTALS 66,807,331.15 TOTALS 66,807,331.15 870,264,288.81 100.000/0 2.45% T-BILL = U.S. TREASURY BILL; T-NOTE = U.S. TREASURY NOTE; T-BOND = U.S. TREASURY BOND; CMO = COLLATERALIZED MORTGAGE OBLIGATION; TEXPOOL = TEXAS LOCAL GOVERNMENT 2 Monthly Summary Report of Cash Management, Continued 3. Comparison to Performance Indicator 7. Diversification of Investments 2 Year T-Bill This Months Adjusted Rate 2.45% - Measurement Rate 2.42% A. By Investment Type +/- Adjustment for Past Performance History 0.03% = Performance Rate for the Month (Basis Points) 0.00% This Months Performance Rate Applied Logic to Interest Earned Formula to arrive 13% at Impact for the Month (127.87) Agency Not 52% 4. Effectiveness to Date (Since October 1, 2004) Texpool 25% Interest: TexSTAR Summation Through Beginning of Month 3,070.12 100/0 +/- impact of Investment Purchases (127.87) Summation Through End of Month 2,942.25 Gain (Loss) on Investments: Summation Through Beginning of Month 0.00 B. By Stated Maturity +/- impact of Investment Purchases 0.00 Summation Through End of Month 0.00 12-24 Months Total Impact Through End of Month 2,942.25 d10/ I Interest Earnings to Date Interest Earned this Month plus Gain or (Loss) 58,339 Total budgeted 620,030 1-12 Months Interest Earned Year to Date 1639088 1000 Overnight Yet to be earned 456,942 47% Percentage Earned 26.30% 6. Market Value and Weighted Average Maturity Summary Beginning Book Value Beginning Market Value Ending Book Value Ending Market Value 29,373,740.81 29,317,311.79 30,329,429.72 30,263,857.77 Beginning Weighted Average Maturity (Mths) Ending Weighted Average Maturity (Mths) Change in Market Value from Prior Month Unrealized Gain/(Loss) on Portfolio Net Asset Value 9.9 9.3 (8,170.00) (65,571.95) 99.8% • TOTAL RETURN CALCULATION REPORT FOR DECEMBER A 31 DAY MONTH PURCHASE MATURITY DAYS INVESTMENT INTEREST INTEREST DAYS DATE DATE HELD COST RATE EARNED COST 10/19/04 10/19/06 31 2,000,000.00 3.080% 5,231.78 62,000,000.00 09/29/04 09/29/06 31 2,000,000.00 3.050% 5,180.82 62,000,000.00 09/08/04 09/08/06 31 2,000,000.00 3.020% 5,129.86 62,000,000.00 11/15/04 11/15/06 31 998,652.61 3.000% 2,544.51 30,958,230.91 07/08/04 06/29/06 31 996,959.55 2.680% 2,269.24 30,905,746.05 05/26/04 05/26/06 31 1,000,000.00 2.640% 2,242.19 31,000,000.00 12/13/04 12/15/05 18 1,997,986.39 2.625% 2,586.43 35,963,755.02 11/16/04 12/15/05 31 998,631.46 2.500% 2,120.38 30,957,575.26 04/28/04 04/28/06 31 2,000,000.00 2.435% 4,136.16 62,000,000.00 07/02/04 08/15/06 31 990,241.94 2.375% 1,997.44 30,697,500.14 01/20/04 01/20/06 31 1,000,000.00 2.300% 1,953.42 31,000,000.00 12/01/04 12/31/04 30 3,034,601.09 2.067% 5,154.75 91,038,032.70 12/31/04 12/31/04 1 3,039,934.23 2.191% 182.48 3,039,934.23 12/01/04 12/09/04 8 6,197,583.84 1.943% 2,639.32 49,580,670.72 12/09/04 12/10/04 1 5,897,583.84 1.982% 320.23 5,897,583.84 12/10/04 12/13/04 3 6,129,358.60 1.998% 1,006.76 18,388,075.80 12/13/04 12/21/04 8 3,929,358.60 2.107% 1,814.18 31,434,868.80 12/21/04 12/31/04 10 7,429,358.60 2.157% 4,391.06 74,293,586.00 12/31/04 12/31/04 1 7,439,973.23 2.178% 443.95 7,439,973.23 12/01/04 12/31/04 30 3,860,056.86 2.130% 6,756.79 115,801,705.80 12/31/04 12/31/04 1 3,867,050.31 2.237% 237.00 3,867,050.31 TOTALS: INTEREST EARNED 58,338.78 870,264,288.81 GAIN (LOSS) ON INVESTMENT ACTIVITY 0.00 686,892.09 TOTAL RETURN 58,338.78 28,073,041.57 TOTAL RETURN ON AVERAGE DAILY INVESTED BALANCE 2.45% • INVENTORY REPORT INVESTMENT PORTFOLIO AT DECEMBER 31.2004 PURCHASE MATURITY INTEREST BEGINNING BEGINNING ENDING ENDING CHANGEIN MONTHS TO INVESTMENT ACCRUED FUND TYPE DATE DATE RATE BOOK VALUE MARKET VALUE BOOK VALUE MARKET VALUE MARKET VALUE MATURITY PARITACE INTEREST AGENCIES FHLB 10/19/04 10/19/06 3.080% 2,000,000.00 1,995,000.00 2,000,000.00 1,994,380.00 (620.00) 22 2,000,000.00 5,133.33 POOLED FHLB 09/29/04 09/29/06 3.050% 2,000,000.00 1,9959000.00 2,000,000.00 1,994,380.00 (620.00) 21 2,000,000.00 5,083.33 POOLED FHLB 09/08/04 09/08/06 3.020% 2,000,000.00 1,994,380.00 2,000,000.00 1,994,380.00 0.00 20 2,000,000.00 5,033.33 POOLED FHLB 11/15/04 11/15/06 3.000% 998,591.55 995,940.00 998,652.61 995,940.00 0.00 22 1,000,000.00 2,500.00 POOLED FNMA 07/08/04 06/29/06 2.680% 996,786.61 993,750.00 996,959.55 993,440.00 (310.00) 18 1,000,000.00 2,233.33 POOLED FHLB 05/26/04 05/26/06 2.640°/o 1,000,000.00 993,750.00 1,000,000.00 993,130.00 (620.00) 17 1,000,000.00 2,200.00 POOLED FFCB 12/13/04 12/15/05 2.625% 1,997,880.00 1,997,880.00 1,997,986.39 1,993,120.00 (4,760.00) 11 2,000,000.00 2,333.33 POOLED FHLB 11/16/04 12/15/05 2.500% 998,509.90 995,940.00 998,631.46 995,630.00 (310.00) 11 1,000,000.00 1,111.11 POOLED FHLB 04/28/04 04/28/06 2.435% 2,000,000.00 1,983,120.00 2,000,000.00 1,982,500.00 (620.00) 16 2,000,000.00 4,058.33 POOLED FHLB 07/02/04 08/15/06 2.375% 989,730.96 987,500.00 990,241.94 987,500.00 0.00 19 1,000,000.00 1,979.17 POOLED FNMA 01/20/04 01/20/06 2.300% 1,000,000.00 992,810.00 1,000,000.00 992,500.00 (310.00) 13 1,000,000.00 1,916.67 POOLED 15,981,499.02 15,925,070.00 15,982,471.95 15,916,900.00 8,170.00 16,000000.00 33,581.93 POOLS TEXPOOL 12/31/04 2.069% 6,497,583.84 6,497,583.84 7,439,973.23 7,439,973.23 0.00 0 7,439,973.23 POOLED TEXSTAR 12/31/04 2.071% 3,034,601.09 3,034,601.09 3,039,934.23 3,039,934.23 0.00 0 3,039,934.23 POOLED LOGIC 12/31/04 2.133% 3,860,056.86 3,860,056.86 3,867,050.31 3,867,050.31 0.00 0 3,867,050.31 POOLED 13,392,241.79 13 392,241.79 14,346,957.77 14,346,957.77 0.00 14 346,957.77 0.00 TOTAL: 29,373,740.81 29,317,311.79 30,329,429.72 30,263,857.77 (8,170.00) 9 30,346,957.77 33,581.93 PORTFOLIO DETAIL TRANSACTION REPORT FOR PERIOD ENDING DECEMBER 31, 2004 PURCHASES TYPE PAR COUPON YIELD MATURITY PRICE PRINCIPAL PREM/(DISC) ACCRUED TOTAL FUND FFCB SALES 2,000,000.00 2.625% 2.625% 12/15/05 99.8941 1,997,882.54 2,117.46 25,958.33 2,023,840.87 POOLED TYPE PAR COUPON YIELD MATURITY PRICE PRINCIPAL PREM/(DISC) ACCRUED TOTAL FUND CALLED TYPE PAR COUPON YIELD MATURITY PRICE PRINCIPAL PREM/(DISC) ACCRUED TOTAL FUND MATURED TYPE PAR COUPON YIELD MATURITY PRICE PRINCIPAL PREM/(DISC) ACCRUED TOTAL FUND 40 • Portfolio Yield vs Benchmark U Additional Earnings 0 Investment Maturity & Cashflow (excluding Texpool & Logic) 4,000,000.00 • 3,000,000.00 2,000,000.00 1,000,000.00 oh Oh oh Oh oh O� db db db OHO db OHO O^ o^ o^ o^ O^ O^ SO 14�1 40 ��. 41 moo,. S4o 40 40 ��, CO �o�, �� 41 40 %--> 10,000 - (10,000) (20,000) (30,000) (40,000) (50,000) (60,000) (70,000) AGENCIES Market Gain (Loss) by Month OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP 724 (56,429) (65,572) 10 40 Monthly Portfolio Division ❑ 12% ❑ 19% ❑ 13% 111iiiiiii ■ 56% ❑ First SW ■ Coastal Securities ❑ Southwest Securities ❑ Duncan Williams Average Return on Investments 3.00% 2.00% 1.00% 0.00% First SW Coastal Southwest Duncan ❑Average Yields 2.87% 2.66% 2.63% 2.69% 11 • ,• December 31, 2004 This report is in full compliance with the investment strategy as established for the pooled investment fund and the Public Funds Investment Act (Chanter 2256). ij0/ • . Cyn lexander Michael olby Assistant ity Manager Assistant Finance Director gd&�Jmiil Shelley WolnyU Investment Officer 12 C� 6. City of LaPorte, Texas Investment Policy Adopted by the City;Council / �Of%the City of Ia Pbrte` O\ On January 13,1992, by C� Ordinance No.1802: Amended November`1995N it ?� \Amended — August 1997' K! ende/d. .November 2000` i ended.'- February, 2003 " City of La Porte, Texas Cynthia B. Alexander Director of Finance Shelley Wolny Investment Officer I. POLICY It is the policy of the City of La Porte, Texas (the "City") to administer and invest its funds in a manner which will preserve the principal and maintain the liquidity through limitations and diversification while meeting the daily cash flow requirements of the City. The City will invest all available funds in conformance to all ..t ,t..te. geva g the esit.«e.,t .,r dhe City's fi « :. ineludinRf W4 not by way ef «f the f tff , Gove1-- me«t Coe (the " A eV) with legal and administrative guidelines, seeking to optimize interest earnings to the maximum extent possible. II. PURPOSE The purpose of this investment policy is to comply with all statutes governing the investment of the City's funds and Chapter 2256 of the Government Code ("Public Funds Investment Act'), which requires the City to adopt a written investment policy regarding the investment of its funds and funds under its control. The Investment Policy addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of the City's funds. III. SCOPE The City will strive to earn a return on funds invested at the highest investment return possible after taking in consideration the primary goals of preservation of principal and liquidity of funds invested, consistent with the policy objectives described below. This investment policy applies to the investment activities of the government of the City of LaPorte, Texas. FUNDS INCLUDED All financial assets of all funds managed by the City, including but not limited to receipts of Tax Revenues, Charges for Services, Bond Proceeds, Interest Incomes, Loans and Funds received by the City where the City performs a custodial function. IV. OBJECTIVES SAFETY The primary objective of the City's investment activity is the preservation of capital in the overall portfolio. Each investment transaction shall seek first to ensure that capital losses are avoided, whether they are from securities defaults or erosion of market value. The City will strive to minimize credit risk by limiting investments to the safest types of investments, prequalifying the financial institutions and broker/dealers with which the City conducts business, and diversify the investment portfolio so that potential losses on individual issuers will be minimized. To minimize interest rate risk, the City will ladder the portfolio and match investments with future cash requirements and invest operating funds in shorter, more liquid securities and investments. LIQUIDITY The City's investment portfolio will remain sufficiently liquid to enable the City to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. Because all possible cash demands cannot be anticipated, a portion of the portfolio will be invested in shares of money market mutual funds or local government investment pools that offer same day liquidity. RIP%X-Q9 I Q99 PUBLIC TRUST All participants in the investment process shall seek to act responsibly as custodians of the public trust. Investment Officials shall avoid any transaction that 0 • might impair public confidence in the City's ability to govern effectively. The governing body recognizes that in a diversified portfolio, occasional measured losses due to market volatility are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented. YIELD (Optimization of Interest Earnings The City's cash management portfolio shall be designed with the objective of regularly meeting or exceeding the average rate of return on the fl,&ee-me k U.S. Treasury Bills at a maturity level comparable to the City's weighted average maturity in days. The investment program shall seek to augment returns above this threshold consistent with risk limitations identified herein and prudent investment principles. V. OVERSIGHT RESPONSIBILITY Oversight Responsibility for the investment activity of the City of La Porte shall rest with the wit Fiscal Affairs Committee and the City Manager. VI. RESPONSIBILITY AND CONTROL DELEGATION Management responsibility for the investment program is hereby delegated to the Director of Finance, who shall establish written procedures for the operation of the investment program, consistent with this investment policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. SUBORDINATES All persons involved in investment activities will be referred to as "Investment Offieials Officers." No person shall engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Finance. The Director of Finance shall be responsible for all transactions undertaken, and shall establish a system of controls to regulate the activities of Subordinate Investment O'f€sials Officers. QUARTERLY REPORTS The Director of Finance shall submit quarterly an investment report that summarizes recent market conditions, economic developments and anticipated investment conditions. The report shall summarize the investment strategies employed in the most recent quarter and describe the portfolio in terms of investment securities, maturities, risk characteristics, book values, market values and other features. The report shall explain the quarter's total investment return and compare the return to budgetary expectations. The report shall include an appendix that discloses all transactions during the quarter. ANNUAL REPORTS Within 90 days of the end of the fiscal year, the Director of Finance shall present a comprehensive annual report on the investment program and investment activity. The annual report shall include twelve-month and quarterly comparison of returns, and shall suggest improvements that might be made in the investment program. PRUDENCE Investments shall be made with the exercise of due care, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment considering the probable safety of their own capital as well as the probable income to be derived. Investment Of€ieials Officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy. 3 IlVIDEMNIFICATION The Investment Officer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific investment's credit risk or market price changes, provided that these deviations are reported immediately and the appropriate action is taken to control adverse developments. ETHICS DISCLOSURE AND CONFLICTS OF INTEREST Af€richs Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution and management of the investment program, or which could impair their ability to make impartial investment decisions. Employees and Investment Offisials Officers shall disclose to the City Manager any material finansial interests in financial institutions that conduct business with the City of La Porte, and shall further disclose any large personal financial or investment positions that could be related to the performance of the City's investment portfolio. Employees and Investment Of sials Officers shall sales refrain from undertaking personal investment transactions with the same individual with which business is conducted on behalf of the City of La Porte. An Investment Officer of the City of La Porte who has a personal business relationship with an organization seeking to sell an investment to the City of La Porte shall file a statement disclosing that personal business interest. An Investment Officer who is related within the second degree by affinity or consanguinity to an individual seeking to sell an investment to the City of La Porte shall file a statement disclosing that relationship. A statement required under subsection 2256.005(i) of the PFIA must be filed with the Texas Ethics Commission and the governing body of the City of LaPorte. TRAINING Investment Officers shall attend at least one investment training session within 12 months after taking office or assuming duties, and shall attend an investment training session not less than once in a two-year period and receive not less than 10 hours of instruction relating to investment responsibilities from an independent source approved by the ae& Fiscal Affairs Committee. For the purposes of this policy, an "independent source" is defined as a professional organization, an institute of higher learning or any other sponsor other than a Business Organization with whom the City may engage in investment transactions. Independent sources that may provide investment training include the Government Treasurer's Organization of Texas, the University of North Texas, the Government Finance Officers Association of Texas, or the Texas Municipal League. Training shall be in accordance with the Public Funds Investment Act and shall include education in investment controls, security risks, market risks, and compliance with statutes governing the investment of public funds. VII. E'gWSTMiENTS ACTIVE PORTFOLIO MANAGEMENT The City intends to pursue active versus passive portfolio management philosophy. That is, securities may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. E r�fl AUTHORIZED INVESTMENTS Assets of funds of the government of the City of La Porte may be invested in the following as authorized by the Public Funds Investment Act: A. Obligations of, or Guaranteed by Governmental Entities 1. Except as provided by Subsection 2 (b), the following are authorized investments under this section: a) obligations of the United States or its agencies and instrumentalities; b) direct obligations of this state or its agencies and instrumentalities; c) collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States; d) other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this state or the United States or their respective agencies and instrumentalities; and e) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent. 2. The following are not authorized investments under this section: a) obligations whose payment represents the coupon payment on the outstanding principal balance of the underlying mortgage -backed security collateral and pays not principal (Interest only bonded); b) obligations whose payment represents the principal stream of cash from the underlying mortgage -backed security collateral and pays no interest (Principal only bonds); c) collateralized mortgage obligations that have a final stated maturity date of greater that 10 years; and d) collateralized mortgage obligations, the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. B. Certificates of Deposit and Share Certificates A certificate of deposit is an authorized investment under this Subchapter if the certificate is issued by a state or national bank domiciled in this state, a savings bank domiciled in this state, or a state or federal credit union domiciled in this state and is: a) guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; b) secured by obligations that are described by Subsection 2256.009 (a), including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage backed securities of the nature described by Subsection 2256.009 (b); or c) secured in any other manner and amount provided by law for deposits of the investing entity. C. Repurchase Agreements 1. A fully collateralized repurchase agreement is an authorized investment under this Subsection if the repurchase agreement: a) has a defined termination date; b) is secured by obligations described by Subsection 2256.009 (a)(1); and c) requires the securities being purchased by the entity to be pledged to the entity, held in the entity's name, and deposited at the time the investment is made with the entity or with a third party selected and approved by the entity; and d) is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state. e) repurchase agreements and reverse repurchase agreements shall be entered into only with dealers who have executed a Master Repurchase Agreement with the City. 2. In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for a specified time, and sell back at a future date obligations described by Subsection A, l,a), at a market value at the time the funds are disbursed of not less than the principal amount of the funds disbursed. The term includes a direct security repurchase agreement and a reverse security repurchase agreement. 3. Notwithstanding any other law, the term of any reverse security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. 4. Money received by an entity under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized investments, but the term of the authorized investments acquired must mature no later than the expiration date stated in the reverse security repurchase agreement. D. Banker's Acceptances 1. A banker's acceptance is an authorized investment under this subchapter if the banker's acceptance: a) has a stated maturity of 270 days or fewer from the date of its issuance; b) will be, in accordance with its terms, liquidated in full at maturity; c) is eligible for collateral for borrowing from a Federal Reserve Bank; and d) is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less that A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency. E. Commercial Paper 1. Commercial paper is an authorized investment under this subchapter if the commercial paper; a) has a stated maturity of 270 days or fewer from the date of its issuance; and b) is rated not less than A-1 or P-1 or an equivalent rating by at least; c) two nationally recognized credit rating agencies; or d) one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state. F. Mutual Funds 1. A no-load money market mutual fund is an authorized investment under this subchapter if the mutual fund: a) is registered with and regulated by the Securities and Exchange Commission; b) provides the investing entity with a prospectus and other information required by the Securities and Exchange Act of 1934 (15 U.S.C. Section 80a-1 et seq.); c) has a dollar -weighted average stated maturity of 90 days or fewer; and d) includes in its investment objectives the maintenance of a stable net asset value of $1 for each share. 2. In addition to a no-load money market mutual fund permitted as an authorized investment in Subsection 4� (a), a no-load mutual fund is an authorized investment under this Section if the mutual fund: a) is registered with the Securities and Exchange Commission; b) has an average weighted maturity of less than two years; c) is invested exclusively in obligations approved by this subchapter; d) is continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or it equivalent; and e) conforms to the requirements set forth in Sections r'v, 2 and 3 2256.016 (b) and (c) relating to the eligibility of investment pools to receive and invest funds of investing entities. 3. An entity is not authorized by this section to: ; b) invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and reserves in other funds held for debt service, in mutual funds described in Subsection 2 (b); c) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in Subsection -2; (b); or d) invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, in any one mutual fund described in 9-3b6e6tlen. I EW 2 Subsection (a) or (b) in an amount that exceeds 10 percent of the total assets of the mutual fund. G. Investment Pools 1. An entity may invest its funds and funds under its control through an eligible investment pool if the governing body of the entity by rule, order, ordinance, or resolution, as appropriate, authorizes investment in the particular pool. An investment pool shall invest the funds it receives from entities in authorized investments permitted by this subchapter. 2. To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, an investment officer or other authorized representative of the entity an offering circular or other similar disclosure instrument that contains, at a minimum, the following information: a) the types of investments in which money is allowed to be invested; b) the maximum average dollar -weighted maturity allowed, based on the stated maturity date, of the pool; c) the maximum stated maturity date any investment security within the portfolio has; d) the objectives of the pool; e) the size of the pool; f) the names of the members of the advisory board of the pool and the dates their terms expire; g) the custodian bank that will safekeep the pool's assets; h) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; i) whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; j) the name and address of the independent auditor of the pool; k) the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other operating policies required for the entity to invest funds in and withdraw funds from the pool; and 1) the performance history of the pool, including yield average dollar -weighted maturities, and expense ratios. 3. To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity: a) investment transaction confirmations; and b) a monthly report that contains, at a minimum, the following information: i. the types and percentage breakdown of securities in which the pool is invested; ii. the current average dollar -weighted maturity, based on the stated maturity date, of the pool; iii. the current percentage of the pool's portfolio in investments that have stated maturities of more than one year; iv. the book value versus the market value of the pool's portfolio, using the amortized cost valuation; V. the size of the pool; vi. the number of participants in the pool; vii. the custodian bank that is safekeeping the assets of the pool; viii. a listing of daily transaction activity of the entity participating in the pool; ix. the yield and expense ratio of the pool; X. the portfolio managers of the pool; and xi. any changes or addenda to the offering circular. 4. An entity by contract may delegate to an investment pool the authority to hold legal title as custodian of investments purchased with its local funds. 5. In this section, "yield" shall be calculated in accordance with regulations governing the registration of open-end management investment companies under the Investment Company Act of 1940, as promulgated from time to time by the Federal Securities and Exchange Commission. 6. To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds investment pool created to function as a money market mutual fund must mark its portfolio to market daily, and, to the extent reasonably possible, stabilize a $1 net asset value. If the ratio of the market value of the portfolio divided by the book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holdings shall be sold as necessary to maintain the ratio between 0.995 and 1.005. .11 7. To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds investment pool must have an advisory board composed: a) equally of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for a public funds investment pool created under Chapter 791 and managed by a state agency; or b) of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for other investment pools. 8. To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must be continuously rated no lower that AAA or AAA - in or at an equivalent rating by at least one nationally recognized rating service. EXISTING INVESTMENTS Any investments currently held that do not meet the guidelines of this policy shall be reviewed to determine the ability to liquidate. If the investment cannot be liquidated because of material adverse change in the value since the time of purchase, and holding the investment to maturity does not negatively affect disbursements or cash flow, a recommendation of holding said investment to maturity is acceptable. PROCUREMENT Investments of subsections A-G of this section, exeluding now issues, may be made only after competitive bids are solicited from at least three sources, with the exception of a) transactions with money market mutual funds and local government investment pools, and b) treasury and agency securities purchased at issue through an approved broker/dealer or financial institution. MONITORING The market value of each investment shall be obtained monthly from a source such as the Wall Street Journal newspaper, a reputable brokerage firm or security pricing service and reported on the monthly investment reports. LENGTH OF INVESTMENTS The maximum stated maturity, from the date of purchase, for any individual investment may not exceed 5 years and the maximum dollar -weighted average maturity for the pooled fund group (investment portfolio) may not exceed 2 years. DIVERSIFICATION It is the policy of the City of La Porte to diversify its investment portfolios. Assets held in the common investment portfolio shall be diversified to eliminate the risk of loss resulting from one concentration of assets in a specific maturity, a specific issuer or a specific class of securities. Diversification strategies shall be determined and revised periodically by the A it Fiscal Affairs Committee. In establishing specific diversification strategies, the following general policies and constraints shall apply: A. Portfolio maturities shall be staggered in a way that protects interest income from the volatility of interest rates and that avoids undue concentration of assets in a specific maturity sector. Securities shall be selected which provide for stability of income and reasonable liquidity. The City shall continually invest a portion of the portfolio in readily available funds such as local government investment pools (LGIPs), money market funds or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. 10 B. The Atmh Fiscal Affairs Committee shall establish strategies and guidelines for the percentage of the total portfolio that may be invested in securities other than repurchase agreements, Treasury bill and notes, or insured and collateralized certificates of deposits. The Audit Fiscal Affairs Committee shall conduct a semi-annual review of these guidelines, and shall evaluate the probability of market and default risk in various investment sectors as part of its considerations. VIII. SELECTION OF BANKS AND DEALERS BIDDING PROCESS Depositories shall be selected through the City's banking services procurement process, which shall include a formal request for proposal (RFP) issued every two (2) three (3) years. In selecting depositories, the credit worthiness of institutions shall be considered, and the Director of Finance shall conduct a comprehensive review of prospective depositories credit characteristics and financial history. INSURABILITY Banks and Savings & Loans Associations seeking to establish eligibility for the City's competitive certificate of deposit purchase program, shall submit financial statements, evidence of Federal insurance and other information as required by the Director of Finance. PRIMARY DEALERS AND APPROVED LIST For brokers and dealers of government securities, Investment Officers shall select only those dealers reporting to the Market Reports Division of the Federal Reserve Bank of New York, also known as "primary government securities dealers," unless a comprehensive credit and capitalization analysis reveals that other firms are adequately financed to conduct public business. Before engaging in investment transactions with a broker/dealer, the Investment Officer shall have received, from a Qualified Representative of said firm, a signed Certification Form. (Exhibit B) This form shall attest that the individual responsible for the City's account with that firm hasCity's the Gity and the bfekemge (1) received and reviewed the investment policy of the entity; and (2) acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the entity and the organization that are not authorized by the entity's investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the entity's entire portfolio or requires an interpretation of subjective investment standards. Investment Officers of the City may not acquire or otherwise obtain any authorized investment described in the investment policy from a person who has not delivered a signed Certification Form. The au& Fiscal Affairs Committee shall at least annually review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. (Exhibit A) IX. SAFEKEEPING AND CUSTODY INSURANCE OR COLLATERAL All bank deposits, certificates of deposit, and repurchase agreements shall be secured by pledged collateral. Bank deposits and certificates of deposit shall be collateralized with a market value equal to no less than 102% of the deposits plus accrued interest less than an amount insured by FDIC. Repurchase agreements shall be monitored daily. Evidence of the pledged collateral shall be maintained by the Director of Finance or a third party financial institution. Repurchase agreements shall be documented by specific agreement noting the collateral pledged in each agreement. Collateral shall be reviewed monthly to assure the market value of the securities pledged equals or exceeds the related bank balances. 11 SAFEKEEPING AGREEMENT All safekeeping arrangements shall be in accordance with a Safekeeping Agreement approved by the Audis Fiscal Affairs Committee which clearly defines the procedural steps for gaining access to the collateral should the City of La Porte determine that the City's funds are in jeopardy. The safekeeping institution, or Trustee, shall be the Federal Reserve Bank or an institution not affiliated with the firm pledging the collateral. The safekeeping agreement shall include the signatures of the City of La Porte, the firm pledging the collateral, and the Trustee. COLLATERAL DEFINED The City of La Porte shall accept only the following securities as collateral: A. FDIC insurance coverage; B. United States Treasuries and Agencies; C. Texas State, City, County, School or Road District bonds with a remaining maturity of ten (10) years or less with rating from a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; D. Other securities as approved by the Audi Fiscal Affairs Committee. SUBJECT TO AUDIT All collateral shall be subject to inspection and audit by the Director of Finance or the City's independent auditors. DELIVERY VERSUS PAYMENT ' seeur-ities All investment transactions, with the exception of local government investment pools and mutual fund transactions, shall be purchased using the delivery versus payment method. That is, funds shall not be wired or paid until verification has been made that the collateral was received by the Trustee. The collateral shall be held in the name of the City or held on behalf of the City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to the City. X. MANAGEMENT AND INTERNAL CONTROLS The Director of Finance shall establish a system of internal controls, which shall be reviewed by an independent auditor. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officers of the City. Controls and managerial emphasis deemed most important that shall be employed where practical are: A. Control of collusion. B. Separation of duties. C. Separation of transaction authority from accounting and record keeping. D. Custodian safekeeping receipts records management. 12 • 0 E. Avoidance of beam physical delivery securities. F. Clear delegation of authority. G. Documentation on investment bidding events. H. Written conformation of telephone transactions. I. Reconcilement and comparisons of security receipts with the investment subsidiary records. J. Compliance with investment policies. K. Accurate and timely reports. L. Validation of investment maturity decisions with supporting cash flow data. M. Adequate training and development of Investment Officers. N. Verification of all interest income and security purchase as sell computations. O. Review of financial condition of all brokers, dealers and depository institutions. P. Staying informed about market conditions, changes, and trends that require adjustments in investment strategies. COMPLIANCE AUDIT The City of La Porte shall perform, in conjunction with its annual financial audit, a compliance audit of management controls on investments and adherence to the entity's established investment policies. The audit shall include a formal review of the quarterly investment reports by an independent auditor and the results reported to the governing body by the independent auditor. Also, the governing body shall review its investment policy and investment strategy not less than annually and adopt a written instrument by rule, order, ordinance, or resolution stating that it has reviewed the investment policy and strategy, and recorded any changes made to them. 13 0 • Exhibit A City of La Porte Approved List of Brokers/Dealers and Investment Pools Brokers/Dealers Coastal Securities First Southwest Company Duncan Williams, Inc. Southwest Securities, Inc. Investment Pools TexPool LOGIC Investment Pool TexSTAR i • Exhibit B BROKER/DEALER CERTIFICATION FORM As required by Texas Government Code 2256.005 (k-1) CITY OF LA PORTE, TEXAS This certification is executed on behalf of (the Investor) and (the Dealer) pursuant to the Public Funds Investment Act, Chapter 2256, Government Code, Texas Codes Annotated (the Act) in connection with investment transactions conducted between the Investor and Dealer. The Undersigned Qualified Representative of the Dealer hereby certifies on behalf of the Dealer that: The Dealer Qualified Representative is duly authorized to execute this Certification on behalf of the Dealer, and 2. The Dealer Qualified Representative has received and reviewed the Investment Policy furnished by the Investor, and 3. The Dealer has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Dealer and the Investor that are not authorized by the entity's investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the entity's entire portfolio or requires an interpretation of subjective investment standards. Dealer Qualified Representative Signature Name (Printed): Title: Date: 0 • City of La Porte, Texas Investment Strategy Statement Exhibit C The City of La Porte, Texas (the "City") will strive to administer and invest its pooled funds at the highest investment return possible while always taking into account the primary goals of preservation of principal and liquidity of funds invested consistent with the City's investment policy. The City's funds, which are pooled together and constitute the investment portfolio, include all financial assets of all funds managed by the City, including but not limited to receipts of tax revenues, charges for services, bond proceeds, interest incomes, loans and funds received by the City where the City performs a custodial function. The City will never invest its funds in a security that is deemed unsuitable to the financial requirements of the City. Maturities will be staggered in a manner that meets the cash flow needs of the City. The primary investment objective is the preservation and safety of principal. Each investment transaction shall seek first to ensure that principal losses are avoided, whether they are from security defaults or erosion of market value. The City's investment portfolio will remain sufficiently liquid to enable the City to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. The City shall always maintain a highly diversified investment portfolio in order to reduce the amount of credit and market risk exposed to the City's portfolio. After first considering safety and liquidity, the City's investment portfolio shall be designed with the objective of regularly exceeding the average rate of return on U.S. Treasury Bills at a maturity level comparable to the City's weighted average maturity in days. The City shall seek to augment returns above this threshold consistent with risk limitations identified in the City's investment policy and prudent investment principles. • • 70 City of La Porte, Texas Quarterly Report of Credit Card Expenditures First Quarter FY 2006 Report of Credit Card Expenditures Quarter Ending December 31, 2004 Check Payee Date Number Amount Elan Financial Services 11/04/04 213714 850.68 Elan Financial Services 12/10/04 214619 170.98 Elan Financial Services 01/07/04 215254 750.09 $ 1,771.75 Amount Debra Feazelle, City Manager 1,143.34 John Joerns, Assistant City Manager 250.00 Cynthia Alexander, Assistant City Manager 1,340.81 Martha Gillett, City Secretary (1,023.40) Richard Reff, Police Chief 61.00 Total Expenditures $ 1,771.75 NOTE: This report reflects all PAYMENTS made during the First Quarter of FY 2005 (October, November, December 2004) • • City of La Porte, Texas Quarterly Report of Credit Card Expenditures First Quarter FY 2005 Cardholder Position: City Manager Expense Payee Date Amount Type Purpose The Innovation Groups 09/22/04 44.00 Registration for Luncheon Innovation Groups Program Debra Feazelle Ernie's Restaurant 09/27/04 42.47 Lunch Discuss a possible Fall Festival Debra Feazelle, Stephen Barr, Jayo Washington Monument Inn Restaurant 09/29/04 185.51 Lunch Bond Presentation D. Feazelle, B. Beasley, J. Joerns, C. Alexander Drew Masterson, Moody's Reps., Standards & Poors Greater Houston Partners 10/01/04 40.00 Registration Greater Houston Partnership Meeting Intersontinental Houston Hotel Debra Feazelle - Houston, TX PBD*ICMA Publications 10/25/04 335.57 Educational Material A Guide for Elected & Appointed Official Debra Feazelle Antonios Grill & Pizza 10/25/04 50.18 Lunch Employee of the Quarter Lunch D. Feazelle, Sherry Jennings, D. Wilmore, W. Sabo • Greater Houston Partners 10/29/04 40.00 Registration Greater Houston Partnership Luncheon Debra Feazelle - George R. Brown Convention Ctr Urban Land Institute 11/03/04 75.95 Educational Material Urban Land Institute Debra Feazelle Paypal*Small Cities 11/11/04 35.00 Educational Material Small Cities Publishing Debra Feazelle Monument Inn 11/22/04 90.16 Lunch Employee of the Quarter D. Feazelle, J. Joerns, C. Alexander, M. Dolby & Lee Ann Williams City of La Porte, Texas Quarterly Report of Credit Card Expenditures First Quarter FY 2006 Cardholder Position: City Manager Expense Payee Date Amount Type Purpose PBD*ICMA Publications 12/09/04 54.50 Educational Material Effective Local Government Debra Feazelle Texas Municipal League 12/10/04 95.00 Registration Legislative Briefing Debra Feazelle - Austin, TX Greater Houston Partners 12/14/04 55.00 Registration Greater Houston Partnership Meeting Debra Feazelle - Hilton Americas - Houston, TX Total Quarterly Charges $ 1,143.34 Check # 213714 214619 215254 NOTE: This report reflects all PAYMENTS made during the First Quarter of FY 2005 (October, November, December 2004) • • City of La Porte, Texas Quarterly Report of Credit Card Expenditures First Quarter FY 2005 Cardholder Position: Assistant City Manager, John Joerns Expense Payee Date Amount Type Purpose Amer Soc of Civil Engineer 10/14/04 250.00 Monthly Charges Membership Renewal John Joerns Check # Total Quarterly Charges $ 250.00 213714 NOTE: This report reflects all PAYMENTS made during the First Quarter of FY 2005 (October, November, December 2004) City of La Porte, Texas Quarterly Report of Credit Card Expenditures First Quarter FY 2005 Cardholder Position: Assistant City Manager, Cynthia Alexander Expense Payee Date Amount Type Purpose Southwest Airlines 09/21/04 152.70 Travel TML Annual Conference Cynthia Alexander - Corpus Christi, TX Texas Municipal League 09/28/04 250.00 Registration GFOAT Fall Conference 2004 Cynthia Alexander - Galveston, TX Texas Municipal League 09/28/04 210.00 Registration GFOAT Fall Conference 2004 Michael Dolby - Galveston, TX Dollar RAC 10/29/04 17.18 Airport Parking TML 92nd Annual Conference Cynthia Alexander - Corpus Christi, TX Ramada Inn Bayfront Hotel 10/29/04 102.35 Lodging TML 92nd Annual Conference Cynthia Alexander - Corpus Christi, TX Moody Gardens Hotel 11/19/04 289.90 Lodging GFOAT-Fall Conference Cynthia Alexander - Galveston, TX Southwest Airlines 12/02/04 203.70 Travel TCMA-William "King: Cole Series Cynthia Alexander - Austin, TX • Dollar RAC 12/03/04 5.73 Airport Parking TCMA-William "King: Cole Series Cynthia Alexander - Austin, TX Double Tree Hotel 12/03/04 109.25 Lodging TCMA-William "King: Cole Series Cynthia Alexander - Austin, TX Check # Total Quarterly Charges $ 1,340.81 213714 214619 215254 NOTE: This report reflects all PAYMENTS made during the First Quarter of FY 2005 (October, November, December 2004) City of La Porte, Texas Quarterly Report of Credit Card Expenditures First Quarter FY 2005 Cardholder Position: City Secretary Expense Payee Date Amount Type Texas Municipal League 09/24/04 (205.00) Credit Texas Municipal League 09/22/04 (180.00) Credit Ramada Inns Bayfront 10/28/04 102.35 Lodging National League of Cities 11/11/04 (380.00) Credit National League of Cities 11/11/04 (380.00) Credit National League of Cities 11/11/04 (380.00) Credit Continental Airlines 11/11/04 271.20 Travel Continental Airlines 11/10/04 271.20 Travel Continental Airlines 11/11/04 5.00 Travel Security Service Fee Continental Airlines 11/11/04 5.00 Travel Security Service Fee National League of Cities 11/22/04 (380.00) Credit Purpose TML Conference - September 2004 Councilman Moser - Austin, TX TML Conference - October 2004 Councilman Rigby - Corpus Christi, TX TML Conference Mayor Porter - Corpus Christi, TX NLC Conference Councilman Ebow - Indianapolis, IN NLC Conference Mayor Malone - Indianapolis, IN NLC Conference Councilman Engelken - Indianapolis, IN NLC Conference Councilman Mosteit - Indianapolis, IN NLC Conference Councilman Beasley - Indianapolis, IN NLC Conference Councilman Mosteit - Indianapolis, IN NLC Conference Councilman Beasley - Indianapolis, IN NLC Conference - 2004 Congress of Cities Councilman Griffith - Washington, DC 0 • City of La Porte, Texas Quarterly Report of Credit Card Expenditures First Quarter FY 2005 Cardholder Position: City Secretary Expense Payee Date Amount Type National League of Cities 11/22/04 (380.00) Credit National League of Cities 11/22/04 (295.00) Credit National League of Cities 11/22/04 (295.00) Credit Westin Hotels 12/02/04 649.60 Lodging Westin Hotels 12/02/04 649.60 Lodging Ramada Inns Bayfront 12/07/04 (102.35) Lodging Purpose NLC Conference - 2004 Congress of Cities Councilman Meismer - Washington, DC NLC Conference - 2004 Congress of Cities Councilman Moser - Washington, DC NLC Conference Councilman Rigby - Indianapolis, IN NLC Conference Councilman Mosteit - Indianapolis, IN NLC - 2004 Congress of Cities Councilman Beasley - Indianapolis, IN TML Conference Mayor Porter - Corpus Christi, TX Check # Total Quarterly Charges $ (1,023.40) 213714 214619 215254 NOTE: This report reflects all PAYMENTS made during the First Quarter of FY 2005 (October, November, December 2004) 0 0 City of La Porte, Texas Quarterly Report of Credit Card Expenditures First Quarter FY 2005 Cardholder Position: Police Chief Expense Payee Date Amount Type Purpose Harris County Toll Road 10/05/04 61.00 EZ Tag Task Force & SOP Vehicles 0 • Check # Total Quarterly Charges $ 61.00 213714 NOTE: This report reflects all PAYMENTS made during the First Quarter of FY 2005 (October, November, December 2004) December 31, 2004 This report is in full compliance with the credit card policy as established by the City of La Porte's Audit Committee. 1)4�gva. J44 10igfiael Dolby, CPA Assistant Finance Director Green, Shannon From: Alexander, Cynthia Sent: Monday, January 17, 2005 9:47 AM To: Green, Shannon Subject: FW: San Antonio: tax freeze support outweighs benefits For fiscal affairs committee. c Original Message Sent: Sunday, January 16, 2005 3:15 PM Subject: San Antonio: tax freeze support outweighs benefits Tax freeze support outweighs benefits Web Posted: 011161200512:00 AM CST Greg Jefferson San Antonio Express -News Voters across San Antonio and throughout Texas tripped over one another 16 months ago to cast ballots for Proposition 13. The amendment to the state Constitution gave cities, counties and junior college districts the option to freeze property taxes for senior citizens and the disabled. And it won emphatically, garnering 88 percent of the vote in Bexar County and 81 percent statewide. But its benefits in San Antonio wouldn't be as widespread as its support at the polls. A tax freeze would deliver relief to many homeowners on the North Side —where property values generally are higher _ but it would mean far less to the rest of San Antonio, according to a city analysis. In only four of the city's 10 council districts would more than half of elderly homeowners get relief from Proposition 13. At the same time, some local officials worry that a freeze would put more of the tax burden on younger property owners and eventually could force cuts in city services or higher fees. The City Council will decide Thursday whether to place the measure on the May 7 ballot. If voters settle the matter, they undoubtedly will have to do a gut check: If adopted, the freeze can't be repealed — regardless of economic conditions —and it applies equally to poor and wealthy homeowners. "Our concerns are that it's permanent and it's not means -teed in any way, "said Frank Sturzl, executive director of the Texas Municipal League. "If (billionaire) Red McCombs lives within San Antonio's city limits, he would be eligible." He said the freeze would shift the burden 'from those over 65, regardless of their ability to pay, to younger property owners, regardless of their ability to pay." Mayor Ed Garza said he wants voters to weigh in because of the sheer magnitude of electoral support for the measure. But he won't vote for it if it gets on the ballot. "If I had my way, based on its current language, I would vote against it because I don't think it's targeted to people who need it most," Garza said. 'But we can't ignore that an election took place, and it was overwhelmingly passed." Meanwhile, the needs of many homeowners on fixed incomes are growing acute. "Property values have been skyrocketing all across the city," Garza said. "There's a definite concern in this community that property values, because of the growth of our city, have far exceeded the income capacity, particularly of senior citizens. I hear it from my neighbors. I hear it from my family." San Antonio already has a homestead exemption for seniors that shields the first $65,000 of a home's appraised value from taxation. It also has a new exemption for the disabled covering $12,500 of their homes' value. Citywide, senior citizens' home values average $83,500, according to the Bexar Appraisal District. Tax freeze vs. squeeze Ismael and Maria Hernandez, who live on West Mulberry Avenue near downtown in a modest white house with light green trim, can attest to the difficulties retirees have making ends meet. Their home's appraised value climbed to $67,500 from $65,086 two years ago. The couple, who moved into the house with four kids in 1965, receive San Antonio's exemption for seniors, meaning they pay almost nothing in property taxes to the city. But the county and school district taxes they pay do take a significant bite. "The $500 we pay is still a lot," 74 year -old Ismael Hernandez said as he folded a string of Christmas lights on his front porch recently. "If I don't have to pay any more, that's good." The county provides its own $50,000 exemption for senior homeowners, and they receive a state -mandated cap on property taxes dedicated to school districts. With a tax freeze, a tax bill wouldn't go above what the homeowner paid the year the taxing entity adopted the measure. But if the tax rate drops, so would the tax bill. 0 • If a strong majority of San Antonio voters approve a freeze, County Judge Nelson Wolff said, the county probably would put it on the books as well. That's because about 85 percent of county residents live in San Antonio. But Wolff hopes it doesn't come to that. His major objection is that wealthy property owners would be treated the same as those with meager incomes. A split Commissioners Court in November put off a decision on the tax freeze to ask the state Legislature to consider a "clean-up" amendment adding a means test and removing the measure's permanency. But Wolff doesn't hold much hope for a legislative fix. "I never have been very confident of this," Wolff said, "but we thought we'd give it a run." Property taxes are by far the county's biggest source of funds. For San Antonio, property taxes make up 24.7 percent of the city Is general fund, second only to revenue from City Public Service. Last summer, then -City Manager Terry Brechtel proposed an alternative to a tax freeze that would have raised the city's exemption for seniors by $5,000 until 2011, when the first $90,000 of a home's value would be blocked from taxation. The exemption for the disabled would have gone up to $85,000 in 2011. Backers say the so-called "stair -stepped" exemption plan would help owners of modest homes without shielding rich homeowners, and it would mean less lost revenue to the city. With the higher exemption seniors could, over several years, save more money than with a tax freeze, according to an analysis in Business Express, a publication of the San Antonio Express -News. Currently, nearly half of the 67,754 homesteads receiving San Antonio's over-65 exemption pay no property taxes to the city, because they're worth $65,000 or less, according to the Bexar Appraisal District. Another 18,575 of those homes are valued at $65,000 to $100,000; 14,938 at $100,000 to $250,000; 1,290 at $250,000 to $500,000; 203 at $500,000 to $1 million; and 15 at more than $1 million. Fanning political winds Councilman Richard Perez, who represents the Southwest Side, warns of a stormy election season if a tax freeze goes to voters in May, when the mayoral and council races also will be on the ballot. Looking across Districts 2 through 5 —sweeping from the East Side to the South Side and over to the West Side —Perez sees little benefit from Proposition 13. "The majority of our homes are less than $65,000,11Perez saicZ. "I think it could potentially be pretty divisive." Still, Homer Lear, speaker emeritus of the Texas Silver -Haired Legislature, a senior activist group, believes voters again would back the tax freeze, even though its benefits wouldn't be evenly spread around San Antonio. "Yes, there might be some who get more tax benefit," Lear said. 'But when you look at it across the board, it was overwhelmingly supported by voters. All this was hashed when the Legislature debated this two years ago." And he said voters understood the issue clearly. "I think it was well -documented — a tax freeze is a tax freeze, "Lear said. Many cities and counties surrounding San Antonio already have fallen in behind Proposition 13: Bulverde, Boerne, Selma, Seguin, Schertz, Marion, Fredericksburg and New Braunfels; and Comal, Gillespie and Guadalupe counties. Across Texas, 76 government bodies have locked in property taxes, according to the Silver -Haired Legislature's Web site. The largest city to adopt the freeze so far is Corpus Christi, with a population of 277,454 —about one fifth the size of San Antonio. There, a taxpayer group gathered enough signatures to force a vote on the measure in November. The port city expects to lose $11.7 million over the next 10 years as a result. "I think we're going to have to do one of two things — increase revenues or cut services," Assistant City Manager Oscar Martinez said. "We could absorb it, but for how long, I don't know." San Antonio would lose an estimated $64.5 million over 10 years under the tax freeze. But as more baby boomers hit 65 and become eligible for the break, the tally is likely to grow. If Proposition 13 prevails at the polls, Budget Director Peter Zanoni foresees San Antonio in the same belt -tightening mode as Corpus Christi —that is, if the council here continues expanding services or revenue remains tight. "It's something we can do,"Zanoni said. 'But we'd have to trim services or increase (revenue) somewhere. Something would have to give." San Antonio's main mayoral candidates — Councilmen Julian Castro and Carroll Schubert and retired judge Phil Hardberger —are undaunted in their support. Hardberger noted that the cost of Proposition 13 over its first 10 years —$64.5 million — would represent less than 0.5 percent of the total of all city budgets in that period, even if officeholders held spending steady. And ongoing economic expansion and a major annexation in city's growing southern sector would easily offset losses stemming from a tax freeze, said Castro, whose Northwest Side district would be one of the bigger beneficiaries. "It will provide relief for senior citizens and the disabled without hurting the budget in the long run," Castro said. "I think we're on the brink of tremendous growth." Nor does Schubert buy into fears that the measure would mean scaling back services. "It is a small percentage of the overall budget," Schubert said of the lost revenue. "I don't believe we'd need to make cuts. I certainly think we can find the money." San Antonio's budgets have steadily increased, he said, and that indicates the city could afford the freeze. Indeed, the city Is spending has jumped 31.4 percent to $1.5 billion since fiscal year 2001, despite a series of shortfalls that city budget -writers have had to overcome. Schubert's North Central district would see one of the biggest benefits. There, 93 percent of its senior citizens own homes worth more than $65,000, and the average value of homes owned by seniors is $150,811 —the highest in San Antonio. Charles Cottrell, a Southwestern Bell retiree, lives on Brandenburg Drive in Schubert's district. He bought his three -bedroom house for $57,000 in 1972; it's now valued at $111,820. The property tax increases Cottrell, 70, has seen haven't been dramatic, but they have been steady, at about 3 percent per year. Still, he considers a tax freeze unnecessary, given the tax breaks he already gets on the property. "You get an exemption on quite a few things," Cottrell said. "I feel like it's fair." Freeze fast The City Council could adopt the tax freeze on its own, without a referendum. But officeholders have spent more than a year wrestling with it, and they still found themselves split mostly along sectional lines in December last month when they delayed the decision on putting the measure on the ballot. Councilman Joel Williams said he'll vote against putting the tax freeze on the May 7 ballot, calling it bad policy to bind future councils to Proposition 18. "I think that we have got a very, very politically charged issue," Williams said. 'When you put Prop 13 in the same perspective as any major issue that comes before this council, we need to be very careful with ordinances we create that are irreversible." The measure, he noted, would have little effect in his East Side district, where only 28 percent of senior homeowners receiving the city exemption have homes worth more than $65, 000. J Instead of a freeze, he favors Brechtel's plan to gradually expand the city's exemption, the "stair -step" approach. Hardberger said that alternative was a step in the right direction. But he noted that, taking the long view, the differences in estimated revenue loss between the two plans would be ' fairly minor." He said he would support the freeze even though the amendment did not provide a means test and it's irreversible. "I intend to vote for it,"Hardberger said. "It's like a lot of other things in politics: You have to take it all or nothing." As the debate continues, tax freeze supporters are losing their patience. "I don't know how many times we have to vote on it," Lear said. Putting it to a vote in May, he said, "is kind of ludicrous because it's already been voted on." Green, Shannon From: Alexander, Cynthia Sent: Thursday, January 13, 2005 8:47 AM To: Green, Shannon Subject: FW: Richardson: council talks projects, tax relief; members may be more open to new debt and break for seniors For fiscal affairs committee Original Message Sent: Thursday, January 13, 2005 7.15 AM To: Alexander, Cynthia Subject: Richardson: council talks projects, tax relief; members may be more open to new debt and break for seniors Council talks projects, tax relief Members may be more open to new debt and break for seniors 08:44 PM CST on Wednesday, January 12, 2005 By WEND HUNDLEY/ The Dallas Morning News After several years of belt -tightening, the City Council is discussing capital improvement projects and economic relief for seniors. No action has been taken, but the discussions come at a time when the council is beginning to think about the 2005-06 budget. The possibility of issuing new debt for bond projects suggests that members are ready to loosen their grip on the city's purse strings. The city has had to restrict spending and cut back on improvement projects to balance the budget because property tax and sales tax revenues have been down. "We've come through three or so years of economic challenges, "Assistant City Manager Dan Johnson said. "While we're not at the end, it's a conducive time to restructure our debt plan." In 1997, voters approved four bond propositions totaling $78 million for parks, public buildings, streets and sidewalks, drainage and other infrastructure improvements. A total of $27 5 million of the $78 million authorized by voters remains as unsold debt. At the council Is request, Mr. Johnson recently described three debt -restructuring options. They could allow the city to proceed with plans that could provide up to $12 million for parks and more than $15 million for streets, alleys, drainage and other improvements. The council has also begun discussions about providing property tax relief for disabled homeowners and those age 65 and older. In the last legislative session, Texas lawmakers made it possible for cities to freeze taxes for these residents. While Richardson officials took no action on the optional cap last year, City Council members wanted more information about its revenue implication for the next budget. If the cap is approved this year, taxes would be frozen at 2005 levels. The cost to the city in lost revenue would be about $190,000 in the 2006-07 budget, Mr. Johnson said. Plano, Mesquite and Grand Prairie have adopted a tax cap for disabled homeowners and seniors. Frisco and Allen have taken a different route to helping seniors by raising the amount of the homestead exemption. Council members recently discussed raising the city's $30,000 homestead exemption by $10,000 for seniors.This month, Mayor Gary Slagel asked staff to compute the impact of freezing property taxes and increasing the homestead exemption to $40,000. About 10 percent of Richardson's 91,802 residents are 65 and older, according to the 2000 U.S. census. Since 1990, the city's median age has risen from 34 to 85.8. Mr. Johnson will be coming back to the council with information about the long-range fiscal impact of the tax cap. 0 Fw Galveston seniors seek freeze on property taxes From: Alexander, Cynthia Sent: Tuesday, January 11, 2005 8:34 AM To: Green, Shannon Subject: Fw: Galveston: seniors seek freeze on property taxes For fiscal affairs committee -----Original message ----- sent: Tuesday, January 11, 2005 8:05 AM To: Alexander, Cynthia Subject: Galveston: seniors seek freeze on property taxes Seniors seek freeze on property taxes 6y Carter Thompson The Daily News Published January 11, 2005 GALVESTON — Senior citizens on Monday continued their call for a freeze on their property taxes, while county leaders worried about the long-term effects of granting their request. No action was taken. But County Tax Assessor -Collector Cheryl Johnson said she would report back to the commissioners court with an estimate of how much revenue would be lost to the county budget under a senior tax freeze. Last year, Texas voters overwhelmingly approved a constitutional amendment that gives local governments the option to freeze property taxes paid by residents that are at least 65 or disabled. County leaders in June declined to enact it, saying a freeze could limit the county's financial flexibility and seniors already were granted tax relief in the form of a $60,000 exemption on their homes. Jack Blankenship, a senior citizen who lives in Santa Fe, said tax increases — whether passed down by the county government or the central appraisal district in the form of higher property values — could force retirees on fixed incomes to sell their homes. "This would give some tax -bill relief to the people least able to pay constant raises," he said of the proposed freeze. Monday's discussion was put on the agenda by Commissioner Eddie Janek. County leaders again seemed cool on granting the freeze, which could not later be revoked. They seemed more inclined to increase the senior citizen tax exemption. Janek, himself a senior citizen, said he supported some type of relief but did not want to hurt the county government. Ivan Arceneaux, Galveston County's representative on the Silver -Haired Legislature, a senior advocacy group, said he would circulate petitions to compel the county to enact the freeze. Page 1 • Fw Arlington columnist says before voting know the tax -freeze details From: Alexander, Cynthia Sent: Monday, January 10, 2005 1:47 PM To: Green, Shannon Subject: Fw: Arlington: columnist says before voting, know the tax -freeze details For fiscal affairs committee -----original message ----- sent: Sunday, January 09, 2005 8:05 AM To: Alexander, Cynthia Subject: Arlington: columnist says before voting, know the tax -freeze details Posted on Sun, Jan. 09, 2005 Before voting, know the tax -freeze details By O.K. Carter Star -Telegram Staff writer with the Feb. 5 election approaching on whether to freeze city property taxes for disabled homeowners or those 65 and older, some confusion has surfaced about who gets what in the way of exemptions. The thing to remember is this: Don't mistake the city property tax and the school tax. The state requires that school districts have a $15,000 homestead exemption for every homeowner, plus an additional $10,000 exemption when that homeowner reaches 65. Also, school property taxes are frozen when the homeowner reaches 65. So a 65-year-old with a home appraised at $100,000 pays school taxes on $75,000 of that. Further, the dollar amount of the taxes cannot increase even if the property tax rate increases or the valuation increases, or both. where property taxes are concerned, cities are allowed but not required to make exemptions. Arlington provides two, but they're not guaranteed to be permanent: • A 20 percent exemption for all homeowners. • An additional $60,000 for homeowners 65 or older or those who are disabled. And no, a disabled 65-year-old cannot claim two exemptions. Thus our senior citizen in his $100,000 home gets the 20 percent exemption, or $20,000, plus the $60,000 exemption. He pays city property taxes on only the remaining $20,000 in valuation -- $129.60 annually based on the current tax rate of 64.8 cents per $100 valuation. This city tax rate is not frozen for the disabled or for 65-and-older homeowners. Those who circulated the petition forcing the February election want it to be frozen. virtually every such tax freeze election conducted in Texas has passed easily. Likely the same thing will happen in Arlington. If so, expect a battle of wills and political nerve because the city is not required to keep its two optional exemptions. The council could end both the 20 percent exemption and the $60,000 exemption for seniors, and some council members have threatened to do exactly that. why? Because if the city maintains its average annual growth in assessed values, the loss of property tax revenue because of the freeze will grow every year. Currently, Page 1 LI • Fw Arlington columnist says before voting know the tax -freeze details almost 19 percent of city households receive the $60,000 exemption, with the number increasing steadily as the baby boomers mature. By 2016, the damage would be $6.076 million lost annually, and the cumulative loss would exceed $30 million. Those dollars would have to be made up either with higher taxes on other residents or with diminished services. Or the city could simply end or change the amount of the $60,000 exemption for seniors, though with a proviso: in order to affect those already receiving the $60,000 exemption, the change needs to be made before the next tax bill is levied in September. Those Feb. 5 voters, then, need to be alert to the consequences. Do they opt for the freeze and take a chance, or do they stick with the $60,000 sure -thing exemption? Once again, we learn an old truth: There's no such thing as a free lunch. Page 2 C� Green, Shannon From: Alexander, Cynthia Sent: Thursday, December 16, 2004 10:42 AM To: Green, Shannon Subject: FW: League City: council nixes tax break for seniors For fiscal affairs committee. C Original Message Sent: Thursday, December 16, 200410:28 AM To: Alexander, Cynthia Subject: League City: council nixes tax break for seniors Council nixes tax break for seniors By Sarah Viren The Galveston County Daily News Published December 16, 2004 LEAGUE CITY — City Councilman Jim Nelson said he was disappointed that he didn't get backing on a proposed property tax freeze for senior and disabled residents. Nelson ran his election campaign this spring on promises to help seniors with everything from taxes to transportation. He put the proposed freeze on Tuesday night's city council agenda — but only Councilman Thomas Cones voted with him for the measure, he said. The city council directed staff members to consider other tax relief options for seniors, though. As an alternative, Finance Director Monica Kohlenberg had suggested raising tax exemptions for senior and disabled residents, saying that other cities had taken that route. Seniors in League City don't have to pay taxes on the first $45,000 worth of property value for their homes. In a memo to the city council, Kohlenberg showed that it would cost about $1.1 million by 2008 if exemptions were increased to $60,000, the exemption level allowed by Galveston County. Nelson said he would keep pushing for the freeze, which is permanent once passed by the city council. Last year, Texas residents overwhelmingly approved a constitutional amendment that gives cities the option to freeze property taxes paid by residents that are 65 or older or disabled. "We will try again next year," Nelson said. "We will keep trying until they do something 4 • besides sit on their thumbs." 0 0 Fw League City council nixes tax break for seniors From: Alexander, Cynthia Sent: Thursday, December 16, 2004 10:42 AM To: Green, Shannon Subject: FW: League City: council nixes tax break for seniors For fiscal affairs committee. C ---Original message ----- sent: Thursday, December 16, 2004 10:28 AM To: Alexander, Cynthia Subject: League City: council nixes tax break for seniors Council nixes tax break for seniors Bg Sarah viren The Galveston County Daily News Published December 16, 2004 LEAGUE CITY — City Councilman Jim Nelson said he was disappointed that he didn't get backing on a proposed property tax freeze for senior and disabled residents. Nelson ran his election campaign this spring on promises to help seniors with everything from taxes to transportation. He put the proposed freeze on Tuesday night's city council agenda — but only Councilman Thomas Cones voted with him for the measure, he said. The city council directed staff members to consider other tax relief options for seniors, though. As an alternative, Finance Director Monica Kohlenberg had suggested raising tax exemptions for senior and disabled residents, saying that other cities had taken that route. Seniors in League City don't have to pay taxes on the first $45,000 worth of property value for their homes. In a memo to the city council, Kohlenberg showed that it would cost about $1.1 million by 2008 if exemptions were increased to $60,000, the exemption level allowed by Galveston County. Nelson said he would keep pushing for the freeze, which is permanent once passed by the city council. Last year, Texas residents overwhelmingly approved a constitutional amendment that gives cities the option to freeze property taxes paid by residents that are 65 or older or disabled. "we will try again next year," Nelson said. "we will keep trying until they do something besides sit on their thumbs." Page 1 Fw League City follows others in considering tax break From: Alexander, Cynthia sent: Tuesday, December 14, 2004 11:18 AM To• Green, Shannon Subject: Fw: League City follows others in considering tax break For fiscal affairs committee. c ---Original message ----- Sent: Tuesday, December 14, 2004 9:06 AM To: Alexander, Cynthia Subject: League City follows others in considering tax break City follows others in considering tax break BY Sarah viren The Galveston County Daily News Published December 14, 2004 LEAGUE CITY — Campaigning for council this spring, Jim Nelson, 67, pledged to help senior citizens in with everything from taxes to transportation. Today the new councilman will get a chance to fulfill at least one of those campaign promises. Nelson is pushing for a property tax freeze for senior and disabled residents, an option considered by many local cities and counties but passed by just a handful. Dickinson and Santa Fe both voted to freeze senior taxes. Last year, Texas residents overwhelmingly approved a constitutional amendment that gives cities the option to freeze property taxes paid by residents that are 65 or older or disabled. League City staff members are recommending against the freeze. Finance Director Monica Kohlenberg said she instead supports increasing tax exemptions for seniors and disabled residents. Those residents have $45,000 worth of exemptions, meaning that only $55,000 of a $100,000 house is taxable. Sugar Land recently raised its exemption level after scrapping plans for a senior tax freeze. One of the biggest arguments against the tax freeze is cost to the city. Many seniors are survivinon a fixed income, though, and argue that they need a limit on g taxes to keep their homes and lifestyles. According to financial projections, Nelson's proposed tax freeze would constitute about $1.1 million in lost tax dollars by 2008. League City already is struggling with a growing budget that some say will require higher tax rates in future years. with just the current exemptions, League City will lose about $2.9 million in potential property tax dollars, according to financial projections. If this exemption is increased by $15,000 per homeowner, the city would see an additional $1.1 million during the next four years. That is about the same as losses under a tax freeze. The only difference is that the city council can vote to change exemption levels — a freeze is permanent. Galveston County offers $60,000 in exemptions for homes owned by senior citizens. Mayor Jeff Harrison said he prefers the idea of increased exemptions. Nelson could not be reached for comment Monday. Projections show that League City's 65-and-older population will increase by 132 residents each year; the number of disabled residents should grow by 18 annually. Page 1 n • Fw League City follows others in considering tax break what: League city City Council meeting. when: 6:30 p.m. today. where: 200 W. walker St. Page 2 • • Fw Allen council may okay tax break for seniors disabled From: Alexander, Cynthia Sent: Tuesday, December 14, 2004 10:33 AM To: Green, Shannon Subject: Fw: Allen: council may okay tax break for seniors, disabled For Fiscal Affairs committee. c ---Original message ----- Sent: Tuesday, December 14, 2004 8:45 AM To: Alexander, Cynthia subject: Allen: council may okay tax break for seniors, disabled Council may OK tax break for Allen seniors, disabled 12:39 AM CST on Tuesday, December 14, 2004 By STELLA M. CHAVEZ / The Dallas Morning News The Allen City Council is expected tonight to increase the property tax exemption for seniors and disabled residents by $5,000. A proposal calls for amending the city's ordinance by raising the tax exemption for property owners age 65 and older to $40,000. It also would increase the exemption for disabled residents from to $20,000. City staff would review the exemptions every two years and recommend adjustments if necessary. If approved, the changes would take effect jan. 1 and affect the tax bills mailed next fall. Texas voters approved a constitutional amendment last year that allows cities to freeze property taxes for seniors and the disabled. Since then, several cities have discussed the issue or implemented changes to provide tax relief. Plano adopted a tax freeze for seniors and the disabled in May. Frisco raised its tax exemption for seniors and the disabled from $10,000 to $30,000 in November. Allen officials said they favored an exemption increase to freezing property taxes. They estimate that the exemptions would reduce property tax revenues by $35,000 in 2006 and save senior and disabled homeowners $27.95 per year. City Manager Peter vargas said the change would not significantly affect city operations. Page 1 • FW San Antonio council delays senior tax freeze decision From: Alexander, Cynthia Sent: Friday, December 10, 2004 12:11 PM To: Green, Shannon Subject: FW: San Antonio: council delays senior tax freeze decision For fiscal affairs committee. c ---original Message----- Sent: Friday, December 10, 2004 9:40 AM To: Alexander, Cynthia subject: San Antonio: council delays senior tax freeze decision Council delays senior tax freeze decision web Posted: 12/10/2004 12:00 AM CST Greg Jefferson San Antonio Express -News A torn City Council on Thursday scrapped plans to decide next week whether to put a property tax freeze for senior citizens and the disabled on next May's ballot. The council voted 6-4 to delay the decision until mid -January to allow time for more analysis of the sweeping measure. Members from districts with lower property valuations argued that the measure would bring no relief to most of their elderly homeowners. Most already benefit from the city s current homestead exemption. "I'm very leery about movin forward with Proposition 13," Councilman Richard Perez said. "I think the (current $65,000 exemption makes a lot more sense for my district." councilman Carroll Schubert acknowledged that some senior homeowners in his North Side district would get relief that they wouldn't need. But he noted: "I think we need to look at this from a citywide standpoint." voters statewide overwhelmingly supported Proposition 13, an amendment to the state Constitution, in an election 14 months ago. Officials had estimated the measure would cost San Antonio $68 million over 10 years. But budget director Peter zanoni on Wednesday trimmed that projection to $64.5 million, basing it on more up-to-date property valuation numbers. Mayor Ed Garza and Councilman Chip Haass won support in early November for a vote on whether to place the freeze on the May ballot. But city officials struggled for months over the tax freeze because once it's passed, it can't be repealed. For some members, the struggle continued Thursday. "under saner conditions," Councilman Joel Williams, "my colleagues would never support a measure they couldn't repeal." Councilman Julian Castro said he supports placing the measure on the May 7 ballot - on which he and Schubert will be mayoral candidates. But he backed the one -month delay put forth by Councilman Roger Flores "in the interest of analysis and thorough decision -making." councilman Enrique Barrera worried about a tax freeze's impact on the budget. "One of the things we really need to be concerned about is the cost of running this City," Barrera said. Page 1 0 Fw San Antonio council delays senior tax freeze decision In the meantime, frustration has built up among proponents such as Bob Martin, president of the Homeowner -Taxpayer Association. "we would ask that you go ahead and implement it tonight," Martin told council members Thursday. "If you can't pass it, at least let 'em vote again." Earlier Thursday, council members focussed on potential tax increases. They again kicked around proposals for the May 7 ballot that would bank on sales tax increases. city council will decide within weeks whether to ask voters for 1/8-cent per dollar increase to buy property for linear parks and back improvements along the Salado and Leon creeks and the Medina and San Antonio rivers. The deadline for placing initiatives on the ballot is Feb. 17. just last month, voters OK'd a 1/4-cent sales tax increase for transportation improvements. That leaves San Antonio with a capacity to raise the tax another quarter -cent; the city can't exceed 8.25 cents per dollar. As it now stands, voters will decide whether to raise taxes 1/8-cent to continue buying property or conservation guarantees over the Edwards Aquifer recharge zone. Page 2 0 • Fw Allen council favors tax break for seniors disabled From: Alexander, Cynthia sent: Wednesday, November 24, 2004 8:25 AM To: Green, Shannon Subject: FW: Allen: council favors tax break for seniors, disabled For fiscal affairs committee. c ---original message ----- sent: Wednesday, November 24, 2004 2:54 AM To: Alexander, Cynthia subject: Allen: council favors tax break for seniors, disabled Allen favors tax break for seniors, disabled 12:40 AM CST on Wednesday, November 24, 2004 By STELLA M. CHAVEZ / The Dallas Morning News ALLEN - Allen city officials want to give senior citizens a break. on Tuesday, the Allen City Council directed staff members to prepare an ordinance that would raise the tax exemption $5,000 for homeowners who are age 65 and older or disabled. The council would review the issue every two years and consider the possibility of raising the exemption by an additional $5,000. In fall 2002, the city doubled its exemption for seniors to $30,000 and created a $15,000 exemption for disabled residents. In general, council members agreed that senior citizens should receive additional relief, but they differed on whether they should increase the tax exemption every two years or -impose a cap when the exemption reaches a certain level. City Manager Peter Vargas explained that increasing the tax exemption is a better alternative to freezing taxes because once a city freezes the taxes on a particular group, it cannot rescind the action. He also cited uncertainty about school financing and other state tax issues as reasons to favor a tax exemption over a freeze. "we don't know what's going to happen to the whole property -tax arena," he said. Proposing to change the tax exemption for seniors and disabled residents "was more appropriate until we know what the impact will be," he said. If approved before the end of this year, the measure will take effect Jan. 1 and affect the fiscal 2006 budget and tax bills mailed next fall. under the proposal, the city would lose $35,000 in fiscal 2006 over what it now loses in exemptions and an additional $200,000 by 2012. Page 1 • • Fw Commerce city manager advises council against tax freeze From: Alexander, Cynthia Sent: Monday, November 22, 2004 9:41 AM To: Green, Shannon subject: Fw: Commerce: city manager advises council against tax freeze For fiscal affairs committee. c ---original message ----- sent: Friday, November 19, 2004 12:30 AM To: Alexander, Cynthia Subject: Commerce: city manager advises council against tax freeze Commerce advised against tax freeze By jay Strickland/Greenville Herald -Banner Staff Thursday, November 18, 2004 1:06 AM CST COMMERCE -- City Manager Bill Shipp advised the Commerce City Council it was not the time to enact a tax freeze on the homesteads of disabled residents and those 65 and older. Shipp made the comments at a Council workshop session Thursday, citing uncertainty about whether state lawmakers would change the legislation that allowed the tax freeze during the next session and the need to keep the tax base as broad as possible while the city is trying to grow. "In my mind, there are two issues here," Shipp said. "One issue is certainly whether or not the Council should consider this tax freeze. But I think the other issue is whether this is the time to consider this tax freeze. There are many things happening right now that z think make this not a particularly good time to consider a limiting of your revenue." According to figures compiled by city staff, there are currently 1,049 homesteads in Commerce. of those, 448, or 42.7 percent, are owned by those 65 or older or disabled. A tax freeze would cap the taxes at the current dollar amount. The amount could go down, but not up. If the city raised taxes by one cent, Commerce would lose a little over $2,500 the first year, according to city estimates. If the valuation went up $3,000, the city would lose $9,309. Shipp also said that the tax freeze could very likely be looked at again during the next session of the State Legislature. Changes could be made to the legislation which allowed it. Another factor in holding off on a tax freeze at the current time is the uncertainty over valuations by the Hunt county Appraisal District, according to Shipp. The HCAD has come under fire from school districts in the county which continue to receive state value on property rather than the local value. If the A praisal District comes more in line with state values, property valuations will likely increase. About 10 residents showed up at the meeting to voice opinions in favor of a tax freeze. Richard Roe, a former physician in the Commerce area, said about 80 percent of people over 65 depend almost entirely on Social security for their income. "The promise of higher increases in the future, significantly higher because Hunt Countyproperties are undervalued, would put a strain on people, Roe said. "I was in business here a long time and z became very familiar with people. It was pretty much a geriatric practice. A lot of these people are living pretty much on the edge now.,, The Council still wasn't willing to put the issue to rest. Mayor Sheryl zelhart said Page 1 U • Fw commerce city manager advises council against tax freeze she would like some more comprehensive projections from city staff about the effect any tax freeze would have. Page 2 FW Frisco council votes for senior tax break From: Alexander, Cynthia Sent: Wednesday, November 17, 2004 10:10 AM To: Green, Shannon Subject: FW: Frisco: council votes for senior tax break For fiscal Affairs Committee. c ---Original message ----- Sent: Wednesday, November 17, 2004 6:35 AM To: Alexander, Cynthia Subject: Frisco: council votes for senior tax break Frisco votes for senior tax break Disabled residents also aided by homestead exemption increase 01:58 AM CST on Wednesday, November 17, 2004 By STELLA M. CHAVEZ / The Dallas Morning News FRISCO - Frisco seniors and disabled residents are getting some tax relief. By a 4-2 vote, Frisco City Council members on Tuesday approved an ordinance to raise the homestead exemption from $10,000 to $30,000 for homeowners age 65 and older and residents with disabilities. Council member Jim Joyner and Mayor Pro Tem Maher Maso voted against the measure. Moments before Mr. Joyner had proposed increasing the exemption to $50,000, but only Deputy Mayor Pro Tem Matt Lafata supported that idea. Mr. Maso said he had wanted to propose a $60,000 tax exemption spread out over four years. A number of seniors who turned out for the meeting asked the council to act quickly and pass a resolution that would give seniors a tax break. "I was hoping they would at least give us $50,000, but we'll take what we can get," said Vi Beamer Clark, 78, who attended the meeting with her husband, Paul. The city has 1,052 accounts that qualify for the exemption. It will take effect on taxes paid in January 2006 and cost the city $135,708 based on the current tax rate. The property tax bill on a house valued at $235,000, the city's average, would drop by about $86. The tax -relief plan had been discussed during the last year. Council members said they wanted to do something to help seniors, but most believed freezing taxes was not a viable option because they could not rescind such action once it was adopted. Only Mayor Mike Simpson said he supported freezing taxes. He said raising the tax exemption would provide less relief for seniors in the long run than a tax break. "I know seniors that are spending $400 in medical expenses," he said. Last year, Texas voters approved a constitutional amendment that allows cities to freeze property taxes for those 65 and older as well as disabled homeowners. Plano adopted a tax freeze measure in May. Prosper, Collin County and the Frisco Independent School District also have freezes in place. other cities had such measures on the ballot in the recent election. Some Frisco council members, however, say there are too many uncertainties to Page 1 • • Fw Frisco council votes for senior tax break approve a tax freeze. They say possible changes to school financing and the sales tax could severely impact the city's finances. "To do so now, while we might be looking out for one group, we might not be for another group," said council member Tony Felker. That's not to say a tax freeze is completely out of the picture. After the vote, Mr. Allen told seniors that the city would continue to study the issue. Page 2 Fw Baytown tax cap for seniors disabled approved From: Alexander, Cynthia Sent: Monday, November 15, 2004 5:40 PM TO: Green, Shannon Subject: Fw: Baytown: tax cap for seniors, disabled approved For fiscal affairs committee. c ---original Message----- Sent: Friday, November 12, 2004 5:54 AM To: Alexander, Cynthia Subject: Baytown: tax cap for seniors, disabled approved Tax cap for seniors, disabled approved By Kristopher Banks Baytown Sun Published November 12, 2004 BAYTOWN — Senior citizens and the disabled will never pay more than what they pay on their next property tax bill for the city of Baytown. City Council unanimously passed a cap on the taxes for those 65 and older and the disabled Thursdayy. The tax cap means the dollar amount of the taxes that those who qualify pay tothe city cannot go up, regardless of rising property values or tax hikes by the city. It can, however, go down. The cap cannot be reversed by any action of the city. The effects will not be seen until seniors and the disabled pay their tax bills in spring 2006. The tax cap was enabled by a state constitutional amendment that passed with about 81 percent of the vote in 2003. Roughly 84 percent of people in Baytown voted for it. Seniors lined up to speak for the tax cap. "The seniors and disabled have made Baytown what it is today, and they deserve a break," said Steve Coycault, regional representative of the silver -Haired Legislature, a statewide group that advocates for senior citizens. Lee LeBouf said seniors face increasing tax bills with decreasing means to pay them. "Our income doesn't increase, and the pensions just shrink," he said. Carolyn Brumley said raising exemptions would not be a permanent help. "An exemption would help short term, but a freeze would help forever," she said. Councilman Scott Sheley presented some information about the possibility of raising exemptions. Seniors and the disabled receive a $50,000 reduction on the value of their property for consideration of city property taxes. According to Sheley's figures, if the city raised the exemption $3,500, those with homes valued at $140,000 or less would actually pay less even after an expected 3 percent jump in property values next year. Sheley said that since the tax cap is permanent, Council should consider what other options are available. "if we take the time, we have until the 31st of December to look at this possible option," he said. But councilman Don Murray said an overwhelming number of people voted for the tax Page 1 • Fw Baytown tax cap for seniors disabled approved cap because it was permanent. "Eighty -something percent of the citizens of Baytown and 80-something percent of Texans did not vote for council to diddle with tax exemptions; they voted to freeze taxes," he said. In the end, all of council voted for the tax cap. The city of Baytown has estimated the tax cap would cost the city about $152,679 in the first year,.which would consist of about 0.36 percent of this year's general fund revenue. city officials have acknowledged that number will go up. In 2003, 3,880 households qualified for the senior citizen or disabled exemption in Baytown. The average home value in Baytown is $76,000. According to the city's figures, 56 percent of those with senior and disabled accounts pay less than $100 per year in property taxes. After the exemptions the city offers and a standard homestead exemption, a house would have to be worth more than about $80,000 for someone to pay more than $100 per year. According to the city, 38 percent of those with senior and disabled exemptions pay no taxes at all. Page 2 FW Baytown paper reports TML and other city positions on tax freeze From: Alexander, Cynthia sent: Monday, November 08, 2004 10:51 AM To: Green, Shannon subject: FW: Baytown: paper reports TML and other city positions on tax freeze For fiscal affairs committee. c ---Original Message----- sent: Sunday, November 07, 2004 5:04 PM To: Alexander, Cynthia Subject: Baytown: paper reports TML and other city positions on tax freeze Senior tax freeze not supported by all cities By Kristopher Banks Baytown Sun Published November 07, 2004 There has been widespread support for the idea of capping taxes for senior citizens and the disabled in Baytown - and that was to be expected. Roughly 84 percent of Baytonians voted to allow it in a 2003 election for state constitutional amendments. Council may enact the cap as early as Thursday. in the few times Council addressed the matter, the audience has been filled with supporters for the measure. If there were any opponents, they sat silently. In the last city election, almost every candidate in a contested race promised to vote for the tax cap - every winner, at least. Statewide, the story is pretty much the same. More than 80 percent voted for the cap, often called a freeze, which allows cities and other taxing districts to keep property values and tax rates at a set amount for those 65 or older and the legally disabled. City councils that turn down the tax cap have been overturned with a referendum vote of the public without fail - except in one city. The City of windcrest, on the northeast border of San Antonio, is about as small as a home -rule city can get. it has just 5,300 residents living on 1.82 square miles. About 56 percent of households include one or more senior citizens. And last September, a majority of them said "No, thank you" to the seniors/disabled tax cap. The process went the same as in many other cities: City Council considered and rejected the cap. senior citizens collected signatures from the necessary 5 percent of registered voters to force the tax cap onto the ballot. Council called a special election. But when Election Day came, about 56 percent voted the cap down. so far, according to both the Texas Municipal League, an organization that assists and represents cities, and the Texas Silver -Haired Legislature, a senior activist group that has been the lead proponent of the cap, windcrest is the only city that has rejected the freeze in an election. City leaders, who opposed the measure, attributed the loss to a few factors: an informed electorate, an aggressive political campaign and some unique characteristics of the city - characteristics that may make it a difficult comparison to Baytown. windcrest Mayor jack Leonhardt said the tax cap is a good idea for some cities, but not for windcrest. According to informational material distributed by the city, the tax cap would cost the city an average of about $132,641 per year for the next nine years,currently about 4 percent of the city's annual revenue. Residents recognized that kind of impact, Leonhardt said. Page 1 Fw Baytown paper reports TML and other city positions on tax freeze "bur residents love this city," he said. "They want to keep home values up and keep a high quality of streets. They're very demanding and exRect a very high quality of service, and those things just don't come without money.' The city of Baytown has estimated the tax cap would cost the city about $152,679 in the first year, which would consist of about 0.36 percent of this years general fund revenue. Leonhardt said the informational materials, which did not explicitly endorse a position, put doubts in many residents' minds, but when they saw political advertising opposing the tax cap, it confirmed their doubts because they knew other people had them. "No one wants to be the Lone Ranger," he said. Mayor Pro Tem Jim Tremblay was responsible for the political campaign opposing the cap. Tremblay, himself both a senior citizen and a disabled person, began a political action committee that sent mail -outs opposing the tax cap. "The fundamental principle was fairness," he said. "If I am 65 and I am disabled, I would qualify for the tax freeze. That means my 60-year-old neighbor to the west and my 557year-old neighbor to the east would have to pay for my share. ... it would be treating my neighbors unfairly." The election was particularly remarkable because windcrest has such a high percentage of senior citizens, he said. "There were a large number (of citizens), many of whom could have qualified but said, 'No, we want to pay our fair share., " But both Tremblay and Leonhardt said windcrest may be an unusual situation. Many differences stand out between windcrest and Baytown. About 56 percent of households in windcrest would qualify for the tax cap based on the senior qualification alone. Less than half that number, 21 percent, would qualify for the cap in Baytown, meaning the cap would have a greater effect in windcrest. windcrest also has little chance of ever growing beyond 1.82 square miles. It's landlocked — surrounded on all sides by San Antonio and other municipalities. This means it has little hope of increasing its property tax revenues, particularly if most of its homes' values are locked in place. Baytown, on the other hand, is a city of 33 to 34 square miles, and can annex property to its north and east. it has annexed several acres this year. one of the most significant differences is wealth. windcrest is largely populated by retirees from San Antonio's military installations with healthy pensions and retired professionals, Tremblay said. The average home value is $124,000. "I know a lot of people on just social Security," said Jane Roberts, a retired Baytown teacher who is pushing for the tax cap. "They need a break somewhere from somebody." About one in 11 Baytonians 65 or older live below the poverty line, according to the 2000 census. The average home value in Baytown is $76,000, although figures from the city indicate more than 44 percent of seniors and the disabled live in homes worth more than the average. According to the figures, 56 percent of those with senior and disabled accounts pay less than $100 per year in property taxes. After the exemptions the city offers and a standard homestead exemption, a house would have to be worth more than about $80,000 for someone to pay more than $100 per year. Page 2 FW Baytown paper reports TML and other city positions on tax freeze Exemptions are something Baytown offers that windcrest does not. The city offers a $50,000 reduction on the value of property for seniors and the disabled. About 38 percent of senior citizen and disabled accounts pay no property taxes to the city at all. If Council chooses to enact the tax freeze, they can reduce the exemption, which may have a greater effect on some seniors than rising property values. "It would be better for them to not pass the tax freeze than to lower the exemptions," Roberts said. The TML, which usually advises cities on such matters, has kept its opinion on this matter but urges cities to be cautious. Baytown Councilman Scott Sheley, a regional vice president for TML, expressed the same caution Thursday, saying he did not believe Council was ready to vote on the issue. Council should look at other options like raising the exemptions, he said. once the cap passes, it becomes permanent and no action of the city can reverse it. "It's just important now to get a better perspective on which way to go," he said. At least two Council members, Mayor Calvin Mundinger and Councilman Mercedes Renteria III, said they supported the cap, and Roberts said she heard from four Councilmen who will vote for it — enough to pass it. If they do not approve the cap, Roberts said she has the petition and workers are already lined up to gather signatures. They need about 1,650, according to the last count of registered voters. Not that Council should feel pressured, she said. "we want to give them the opportunity to do what they said they would do," she said. Council meets at 6:30 p.m. Thursday at City Hall. Those wishing to speak on the tax cap may sign up before the meeting. Page 3 • 0 FW Rowlett tax freeze will not leave From: Alexander, Cynthia Sent: Monday, November 08, 2004 10:56 AM To: Green, Shannon Subject: FW: Rowlett: tax freeze will not leave For fiscal affairs committee. c -----Original message ----- sent: Saturday, November 06, 2004 10:02 PM To: Alexander, Cynthia Subject: Rowlett: tax freeze will not leave Senior tax freeze won't leave By: Wendy Kay Strain, Rowlett Lakeshore Times 11/04/2004 The discussion during the work session was mostly to consider the various options available to seniors and council in establishing some kind of tax freeze for the seniors of the area. According to the City Attorney Bob Hagar, there are three options still open in establishing a senior tax freeze. Two of the methods would become binding decisions, which is what the council has been working to avoid to date in recent discussions. one of those options would also require more work on the part of the seniors in the city currentlypobbying to get the ordinance passed, again creating a situation most of the councilors wish to avoid. one option remains viable, though, that remains non -binding and requires little additional effort from the community's seniors. According to Hagar, the option of a non -binding referendum would give the councilors the input they are requesting from a wide sampging of the city 's residents while remaining non -committal in the actions to be carried out as a result of that vote. Although they did not decide whether to pursue the referendum at this time, the rate of discussion had to be established to be sure the issue was brought before voters within required time parameters established by the state. To keep the issue non -political, the council discussed the idea of holding a vote at the next possible date the machines would be available from Dallas County sometime in February, but a special election of this sort would cost the city approximately $5,000. if the council instead decided to put the issue on the next general election ballot in May, the addition would only cost the city an additional $1,000. Depending on which date the council were to decide to put the issue before the public, information would have to be released at least 60 days prior to the election. Had they decided on the February date, the council would need to decide whether to pursue the option or not within the next month. Only one council member expressed dissatisfaction with the proposed idea because of the additional expense. Al Alberts insisted that the senior tax freeze should not require the expense and extra step of asking residents to vote on the issue. "The voters have already told us what they want and they want the tax freeze," he said. Page 1 0 • Fw Rowlett tax freeze will not leave However, should the council determine that seeking a non -binding referendum is the only way agreement can be obtained on the issue, it should appear on the May election ballot. The regular session agenda item was to increase the amount of the senior tax exemption from the current rate of $60,000 to an adjusted rate of $67,000 as a means of keeping up with increases in property taxes. A motion on the item was made immediately by Al Alberts and seconded by David Bryan to approve the increased exemption rate, but Steve Ma giotto argued for the council to wait until the results are in from the state legislative talks regarding school financing. "z would like to see us wait out the process of the state legislature for school financing," he said. "There may be a lot of relief in that area that would make this increase unnecessary." After further discussion on both sides, the council voted to approve the item on a vote of 4-3, with Cindy Rushing, Becky Sebastian and Steve Maggiotto voting against the issue. Page 2 0 Fw Frisco council discusses tax breaks for seniors From: Alexander, Cynthia Sent: Monday, November 08, 2004 10:58 AM To: Green, Shannon Subject: Fw:.Frisco: council discusses tax breaks for seniors For fiscal affairs committee. c ---Original message ----- sent: Saturday, November 06, 2004 9:57 PM To: Alexander, Cynthia subject: Frisco: council discusses tax breaks for seniors Council discusses tax breaks for seniors By mike Raye, staff writer Frisco Enterprise 11/05/2004 Easing the taxpaying burden on the city's senior citizens was a topic of lively discussion Tuesday night, as the City Council and staff sought ways to provide continuing relief for generations without setting a solution in stone. In September 2003 Texas voters approved Proposition 13 by an overwhelming 91 percent, creating a constitutional amendment that empowers local governments to institute a property tax ceiling for the elderlX and disabled. The rub is, once the freeze is set into place, it is "grandfathered,meaning it can never be repealed. That was the fact that tripped the council. "I understand why so many people are for this tax freeze, but realistically, they won't feel the benefits of it for another 10 to 20 years," council member Bob Allen said. "I am not in favor of this freeze because we owe it to the generations ahead of us to think this through." Allen said freezing seniors' tax bills would put an undue burden on other citizens, as the percentage of over-65 members of the population rises. "The increases in population show that we're going to have a lot more people over 60 than under 60 in the years to come, which then means the people under 60 are the ones that are going to carry that burden," he said. According to the Texas Municipal League, 20 percent of Texas cities have implemented the freeze, including Lewisville, which adopted it in June, and Plano, which put on a freeze in May. Collin County and the Frisco Independent School District also have over-65 property tax freezes in place. Currently, Frisco allows a tax exemption of $10,000 for both over-65 residents and the disabled. Assistant City manager Jason Gray presented several directions the council could go, from putting on a tax freeze to raising the amount of exemption. Although re]ecting the tax freeze outright because of its inherent restrictions, council members said they would entertain the idea of raising the level of exemption to as much as $30,000. only Mayor Mike Simpson spoke in favor of a tax freeze. "I'm the only one up here that would be in favor of a tax freeze," he said. "Senior citizens really took a hit (financially) in 2000 and they've never recovered from it. social security continues to go up and the cost of drugs continue to go up," he said, explaining that most seniors live on a fixed income and need help paying the bills. "Some kind of tax relief is needed for our seniors," Mayor Pro Tem Maher Maso said. "if we raise the exemption it would have an immediate effect." Page 1 • 0 FW Frisco council discusses tax breaks for seniors Council member Joy west agreed that something should be done, but said a tax freeze was not an answer. Council members Tony Felker and Matt Lafata said no to the freeze, but suggested raising the exemption from the current $10,000 to $30,000, citing that the area average is $31,000. Lewisville has a $60,000 exemption -and Dallas' exemption is $64,000. Frisco resident Ernie Eggleston said raising the exemption to $50,000 would help seniors like himself and his neighbors. "I'm here tonight asking you to move forward on this," he told the council. To do nothing would e an option, but seniors need a special tax consideration because so many of us are on a fixed income." Allen said while making a decision, the city and council should keep its sights on the future. "An exemption would benefit people more than a tax freeze will," he said. "People in their 40s now will be impacted when they become over 65 by a tax freeze we put in today.' The council directed city staff to further investigate the options, and return an ordinance for approval soon. Page 2 0 0 :w corpus Christi lost revenues from tax freeze force city college to adjust spending tax rates From: Alexander, Cynthia Sent: Monday, November 08, 2004 4:00 PM To: Green, Shannon subject: Fw: corpus Christi: lost revenues from tax freeze force city, college to adjust spending, tax rates For fiscal affairs committee. c --original message ----- sent: Thursday, November 04, 2004 7:17 AM To: Alexander, Cynthia Subject: Corpus Christi: lost revenues from tax freeze force city, college to adjust spending, tax rates Officials start totaling freezes' costs Lost revenues force city, college to adjust spending, tax rates By Neal Falgoust and Icess Fernandez Caller -Times November 4, 2004 The day after voters agreed to freeze the tax bills of many Del Mar College and city taxpayers, officials began trying to figure out what effect that freeze would have on their ability to provide services. At City Hall, senior administrators began studying what effect the freeze would have on the city's financial future. They also were preparing for a presentation they soon will have to make to City Council. Del Mar College officials prepared for a similar presentation to their Board of Regents. Both City Hall and the college said they would be looking at cutting services, finding alternative sources of income and increasing taxes to cover the projected shortfall the freezes will have on their budgets. "we have to make it up somewhere," Del Mar College President Carlos Garcia said. City Manager Skip Noe said city staff would be looking at all possibilities, but "at this point there are no planned cuts." Approval of the tax freezes came with an overwhelming margin, with more than 70 percent of Del Mar College and city voters approving the measures. The freeze permanently limits the tax bills of seniors and the disabled to the amount of this year's bill. Del Mar's Proposition 1 passed with 71 percent of the vote, or 59,020 to 23553, according to complete unofficial returns with 111 of 111 precincts reporting. City Proposition 6 passed by 72 percent, or 59,125 to 22977, according to complete unofficial returns with 107 of 107 precincts reporting. The two propositions were placed on the ballot by the Corpus Christi Taxpayers' Association, which circulated a petition on the matter months before the election. They were an outgrowth of the state's Proposition 13, a constitutional amendment that allowed government bodies to freeze the tax bills of elderly and disabled homeowners. Projections by both City Hall and the college indicate they will lose hundreds of thousands of dollars in the next few years because of the freeze, and will lose millions of dollars in a decade as the Baby Boomer generation begins to retire. Assistant City Manager Oscar Martinez, who oversees the city's financial Page 1 0 0 =w Corpus Christi lost revenues from tax freeze force city college to adjust spending tax rates departments, said his staff would be working this week to develop an updated projection on the tax freeze's effect. Previous projections, which showed a $3.1 million shortfall by the year 2013, were based on last year's tax roll. That roll grew 7 percent between 2003 and 2004, according to the Nueces County appraisal District. The new figures should be ready by Friday, and will be presented to the City Council at a subsequent meeting. 'Someone has to pay' The next step for college officials also will be deciding how to make up the difference in income. officials predict the college will lose $150,000 in tax revenue each year. options for making up the difference include raising tuition, requesting more state money and cutting services. But raising taxes is not being considered at this time, Garcia said. He said the college is looking at raising private money for scholarships, equipment and professional development. Del Mar also will ask through a state college coalition for the legislature to increase funding. "Even if they increase credit hour reimbursement (to) where we were four years ago, it would be OK," Garcia said. College departments have been asked to trim their budgets, Garcia said. Board of Regents President Gabe Rivas said board policy allows the regents to increase tuition each year, with the minimum increase set at $1 per credit hour. "Someone has,to pay," Rivas said. "I hate to put it that way. we'll see what we can do not to raise tuition." Too early to slash services City Councilman Rex Kinnison, a certified public accountant, said it still was too early for City Hall to talk about cutting services to save money. He said a council committee would be meeting in the coming weeks to begin talking about next year's budget. The process for drafting that plan, which will be presented to the full council -by summer, begins in February. Kinnison said the council would be looking at the staff's five-year forecast of the city's financial health during the next two weeks and would make decisions about spending based on that analysis. Page 2 • Fw Guadalupe county all three cities in county with Prop 13 elections pass From: Alexander, Cynthia sent: wednesday, November 03, 2004 8:22 AM To: Green, Shannon Subject: FW: Guadalupe County: all three cities in county with Prop 13 elections pass For fiscal affairs committee. c ---Original message ----- sent: wednesday, November 03, 2004 8:19 AM To: Alexander, Cynthia Subject: Guadalupe County: all three cities in county with Prop 13 elections pass Cities approve tax freeze Chris Hawkes Seguin Gazette Published November 03, 2004 GUADALUPE COUNTY — A tax freeze for seniors got the thumbs up from voters Tuesday night. Harvey Hild, who spearheaded an effort to get Proposition 13 passed, is happy with the results. Proposition 13 — a state constitutional amendment approved by 89 percent of Texas voters and 81 percent of Guadalupe county voters in September 2003 — permits counties, cities and towns, and junior college districts to establish an ad valorem tax freeze on residence homesteads of the disabled and of the elderly. Seguin, Marion and Schertz voters each approved tax freezes in their respective cities. Proposition 13 passed with a vote for 75 percent to 13 percent against in Seguin. Marion's race was a little closer with a 70 to 42 percent win. The most contested race was in Schertz where voters approved the tax freeze 4,900-1,114. School property taxes on a home cannot be increased once a homeowner reaches the age of 65. Proposition 13 lets counties, cities, towns and junior college districts extend this tax freeze to the property taxes paid to those governmental bodies as well. Page 1 0 • FW New Braunfels property tax freeze passes From: Alexander, Cynthia sent: Wednesday, November 03, 2004 8:22 AM To: Green, Shannon Subject: FW: New Braunfels: property tax freeze passes For fiscal affairs committee. c ---original message ----- Sent: Wednesday, November 03, 2004 8:18 AM To: Alexander, Cynthia Subject: New Braunfels: property tax freeze passes Property tax freeze passes By Scott Mahon The Herald-zeitung Published November 03, 2004 Although the city's early vote count wasn't completed until early this morning, unofficial results Tuesday night showed 2,078 voters in six voting districts voted for Proposition 1 to freeze city property taxes, and 1,003 voted against it. Called Proposition 1 on Tuesday's ballot, the measure was passed last year by 80 percent of the voters across the state, and provided that local residents could petition the city and/or county to force a vote on the issue. A group New Braunfels seniors, led by Wayne Rudolph, led a petition drive early this summer to force the New Braunfels City Council to put the measure up for election. However, council voted unanimously in June to put the measure on the Nov. 2 ballot. Mayor Adam Cork said the general election would allow more voters to vote on the issue. "I think we should have as many people in the community as possible vote on the issue," Cork said in June. Cork said Tuesday night, before the early vote count, it would now be up to council to minimize the impact of the property tax freeze. "It'll be our job to bring in as much economic development as possible to minimize the impact of Proposition 1," he said. Cork argued this summer that freezing property taxes for senior citizens would shift the burden of paying for services to younger property owners. "If we were to freeze property taxes for seniors, an extreme example would be if seniors petitioned for a $100 million swimming pool and tennis court, and it passed because of the senior vote," he said. "But seniors wouldn't pay for it. The same for street improvements. So we have to be clear about what the impact would be." Cork said the measure would cost the city approximately $70,000 in lost tax revenues in 2005, when it takes effect. The measure passed overwhelmingly in the county election. Rudolph said there was less opposition to the measure in rural areas of the county. "There was some opposition to it in the city, especially by some of the city council," he said. "But when we were gathering signatures for the county petition, we didn't find a lot of opposition." Page 1 0 • FW New Braunfels property tax freeze passes District 6 Councilman Ken valentine, who supported the tax freeze, said Tuesday's unofficial results showed that elected officials were out -of -step with their constituents. "While not all seniors need tax relief, many seniors really need help," valentine said. "Proposition 1 is a way to offer that relief." City Manager Chuck Pinto said if property taxes had been frozen for seniors over the last 10 years, the city would have lost $575,000 in tax revenues. The freeze goes into effect for the 2005 tax year and locks in property taxes for those over age 65 and disabled homeowners. Page 2 0 • FW Frisco council is exploring options in proposal that aids seniors disabled From: Alexander, Cynthia Sent: Tuesday, November 02, 2004 1:14 PM To: Green, Shannon Subject: Fw: Frisco: council is exploring options in proposal that aids seniors, disabled For fiscal affairs committee. c ---Original Message----- Sent: Tuesday, November 02, 2004 8:06 AM To: Alexander, Cynthia Subject: Frisco: council is exploring options in proposal that aids seniors, disabled City to address tax -freeze queries Council is exploring options in proposal that aids seniors, disabled 02:39 AM CST on Tuesday, November 2, 2004 By STELLA M. CHAVEZ / The Dallas Morning News Eight months ago, Frisco City Council members discussed a proposal to freeze taxes on properties owned by senior citizens and disabled residents, but the idea was met With many questions about long-term costs to the city. Tonight, city staffers will answer some of those questions. The council has a few options from which to choose, from doing nothing to capping the tax amount to raising the current tax -exemption level. The potential impact of a freeze is difficult to gauge because of several factors, including the tax rate, home values and the senior population, said Assistant City Manager Jason Gray. "we're trying not to focus too much on specific numbers," he said. "what we tried to do is to give the council an idea across a spectrum of homes." Frisco currently grants a $10,000 homestead exemption for disabled residents and seniors 65 and older. Each scenario to be presented to the council tonight shows the financial impact over 15 years. City staff examined what would happen if taxes were frozen on a $235,551 home - the average home value in Frisco - up to a $300,000 home. The examples also take into account the $10,000 exemption and pose scenarios in which the exemption level is raised to $50,000. one example shows what would happen if taxes were frozen on a $235,551 house. If home values rose 4 percent the first five years and 3 percent after that, the city would lose roughly $5,827.40 per household over a 15-year period. A constitutional amendment approved by Texas voters last year allows cities to freeze property taxes for residents 65 and older as well as the disabled. Plano adopted a tax freeze measure in May. Prosper, Collin County and the Frisco Independent School District also have freezes. voters in other cities, such as Fredericksburg, Texas, will be voting on a freeze today. Some seniors, however, say a freeze is not enough. City officials "don't realize that it's just going to be a few dollars," said Nancy D. Foster, a four -term member of the Texas Silver -Haired Legislature, which lobbies for seniors. Page 1 • Fw Frisco council is exploring options in proposal that aids seniors disabled Ms. Foster, a Frisco resident, said a freeze is necessary because many seniors live on fixed incomes. "If they've been taxed out of their house, they won't have any place to live," she said. "If we dangle all of these people out, we're going to have to build long-term health care facilities." Some council members say they favor measures that help seniors but feel the tax freeze legislation is too limiting. Once such a measure is passed, the council cannot reverse it or make changes, said Mayor Fro Tem Maher Maso. "I'm not convinced that the tax freeze is the way to go yet," Mr. Maso said. "I don't think anyone disagrees or questions the need for seniors to have special tax considerations due to their fixed income, but it needs to be fair." Council member Bob Allen said he's worried about the long-term impact if a freeze is adopted, and he has suggested in the past that the city raise the homestead exemption amount instead. He added that he has not made up his mind on the matter. "The increases in population show that we're going to have a lot more people over 60 than under 60, which then means the people under 60 are the ones that are going to carry that burden," he said. "It's a challenging situation." E-mail schavez@dallasnews.com SEVERAL TAX SCENARIOS Frisco grants a $10,000 exemption for disabled residents city staff examined what would occur to property taxes on average value - under various scenarios. Year Appraised property value Annual city taxes, with a $10,000 exemption, no tax freeze Annual city taxes, with a $10,000 exemption and tax freeze Annual city taxes, with a $50,000 exemption, no tax freeze 2004 $235,551 2005 $244,973 2006 $254,772 2007 $264,963 2008 $275,561 2009 $289,339 $1,049.02 2011 $306,960 2012 $316,169 2013 $325,654 2014 $335,424 2015 $345,486 2016 $355,851 and those 65 and older. a $235,551 home - Frisco's $953.99 $953.99 $953.99 $993.84 $953.99 $824.66 $1,035.29 $953.99 $866.10 $1,078.39 $953.99 $909.21 $1,123.22 $953.99 $954.03 $1,181.49 $953.99 $1,012.31 2010 $298,020 $1,218.21 $953.99 $1,256.02 $953.99 $1,086.84 $1,294.97 $953.99 $1,125.79 $1,335.09 $953.99 $1,165.91 $1,376.41 $953.99 $1,207.23 $1,418.97 $953.99 $1,249.79 $1,462.81 $953.99 $1,293.63 Page 2 Fw Frisco council is exploring options in 2017 $366,527 $1,507.96 $953.99 $1,338.78 2018 $377,522 $1,554.47 $953.99 $1,385.29 2019 $388,848 $1,602.38 $953.99 $1,433.19 $1,482.53 SOURCE: City of Frisco Page 3 proposal that aids seniors disabled 2020 $400,513 $1,651.72 $953.99 • Fw Baytown paper says to freeze taxes for seniors disabled From: Alexander, Cynthia Sent: Monday, November 01, 2004 11:06 AM To: Green, Shannon Subject: Fw: Baytown: paper says to freeze taxes for seniors, disabled For fiscal affairs committee. c ---original message ----- sent: Friday, October 29, 2004 12:13 AM To: Alexander, Cynthia subject: Baytown: paper says to freeze taxes for seniors, disabled Freeze taxes for seniors, disabled By David Bloom Baytown Sun Published October 29, 2004 Living to be 65 earns 10 percent discounts on fast food, movie tickets and other items with an averagesavings of less than a dollar. Meanwhile the door is kept shut by Baytown City Council to allow those seniors and disabled on low and fixed incomes to get a break from one of the biggest bills they face annually, property tax. Most Baytown seniors would no doubt be happy to give up that 10 percent discount on a cup of coffee knowing their property taxes won t skyrocket while their incomes remain fixed. To that end, Baytown Mayor Calvin Mundinger said this week a vote to grant or deny a property tax freeze for senior and disabled homeowners will be on City council's agenda Nov. 11. That's great ... but we wonder what took so long? Baytown City Council has been discussing the property tax freeze since October 2003. For more than a year, it's been all talk and no walk. This inaction does not reflect well on three members of Baytown City Council — Mundinger, and councilmen Mercedes Renteria III and Sammy Mahan — who each vowed to support the tax freeze during their campaigns for office earlier this year. Moreover, council's inaction has mobilized some Baytown seniors to organize a petition drive to put the matter before voters in a special election. Such an initiative — which voters would clearly support — would require about 1,650 signatures. we hope City Council does not let it come to that, especially with three members who are already on the record supporting the measure. In September 2003, Texas voters overwhelmingly approved a constitutional amendment to allow cities and counties to freeze property taxes for disabled and elderly residents. The amendment is simply designed to alleviate some of the tax burdens faced by the elderly and the disabled on fixed incomes that have been adversely impacted by rising property taxes. In our area, the cities of Anahuac, Conroe, Deer Park, Dickinson, Jamaica Beach, Morgan's Point, Pasadena, Santa Fe, Seabrook and South Houston have already enacted the tax freeze. The exemption would cost the city of Baytown about $153,000 in the first year, and an estimated $1 million in five years and around $2.8 million in 10 years. The freeze cannot be revoked unless the state law is changed. Council has until Dec. 31 to pass the freeze on property taxes for senior citizens Page 1 Fw Baytown paper says to freeze taxes for seniors disabled and the disabled if it is to affect the tax bills those homeowners will pay in early 2006. Critics, which apparently includes a few councilmen, believe such a move restricts the city from raising much -needed revenue when property taxes rise and shifts the burden on to remaining taxpayers, who might also have tough times making ends meet. That may be true, but the tax freeze could also prevent senior or disabled homeowners from having to leave their homes because they cannot pay property taxes. we believe the city of Baytown would do well standing by those who have worked all their lives to make it a better place. City Council should approve the tax freeze as soon as possible. Today's editorial was written by David Bloom, managing editor of The Baytown sun, on behalf of the newspaper's editorial board. Page 2 0 • FW Montgomery County considers more fees for using credit and debt cards From: Alexander, Cynthia Sent: Monday, November 01, 2004 2:06 PM To: Dolby, Michael; wolny, Shelley; williams, LeAnn Cc: Green, Shannon Subject: FW: Montgomery County considers more fees for using credit and debt cards For research and discussion. c ---Original message ----- sent: Thursday, October 28, 2004 1:16 AM To: Alexander, Cynthia Subject: Montgomery County considers more fees for using credit and debt cards Oct. 26, 2004, 7:54PM Montgomery County considers more credit fees Residents may see another 5 % charge for service By BETH KUHLES Chronicle Correspondent RESOURCES CHARGE CARD FEES The existing credit card payment system for Montgomery County is managed by official Payments Corp., and includes a convenience fee, which is a percentage based on the amount charged. County officials have approved installing a new credit card terminal system for the collections department, which will charge a 4 percent fee on top of the percentage -based fee for transactions handled by that department. County officials also are studying whether to charge an additional 5 percent surcharge in the future. The following is a breakdown of existing fees: •$4.95 charge for services up to $99 •$8.95 charge for services of $100-199 •$23.95 charge of services of $400-599 Source: Montgomery County Montgomery County is investigating whether it should tack on its own user fee for those who pay for county services with a credit or debit card. People who pay court costs, traffic fines, alarm fees or county taxes with a credit card may face up to an additional $5 or 5 percent surcharge per transaction if the proposal is adopted. If approved, the surcharge has the potential to generate up to $800,000 a year for county coffers, said Mark Bosma, purchasing agent for Montgomery County. "It's worth the research," County judge Alan B. Sadler told Montgomery County Commissioners Court. More credit charges The surcharge proposal was raised after Montgomery County approved the first credit card terminal system for the collections department at a recent meeting. The system will be installed by state Metropolitan county Services. other county departments are being asked if they would like to start a similar card swipe system for customer payments. Credit cards have been accepted for county payments since the 1990s, but it is now done over the phone using a code system. About 35 percent of the people processing Page 1 • FW Montgomery County considers more fees for using credit and debt cards court and alarm payments through the county's collections department are using credit cards, said Nadine Jenkins, director of collections for the county. The existing credit card payment system, managed by official Payments Corp., includes a convenience fee, which is a percentage based on the amount charged. For example, for a transaction of up to $99.99, the fee is $4.95; up to $199.99, the fee is $8.95; and between $400 and $599.99, the fee is $23.95. Customers are told about these fees before the transaction is processed, Jenkins said. Time savings The system is time consuming because it requires county staff to enter data in the computer and to get verification from the credit card company, Jenkins said. The new system will expedite the process and will eliminate paperwork for the county workers. "This will help speed up the pprocess," Jenkins said. "our goal is to assist the customer as quickly as possible and to assist with the efficiency of the office. By swiping the card, it will improve the overall use of credit cards." under the new system, the county has negotiated a flat 4 percent convenience fee that the processing company can collect from those who pay through the collections department. In exchange, the county collections department will get the terminal system free of charge. The county's proposed surcharge would be added on top of the existing convenience fee. Generating revenue Bosma is doing research on the proposed surcharge, which will be presented to Montgomery County Commissioners Court in the future for consideration. Bosma estimates there are about 178,000 customer transactions, including credit cards, checks and cash, in the county every year. Proposed charges Based on the proposed charges, this could generate up to $800,000 in funds for the county annually if everyone used a credit card to pay for services. Bosma said the state law allows county governments to add a $5 or 5 percent surcharge to county transactions and several cities in the area have added these fees. Page 2 • • Fw Baytown council pressured to enact tax freeze From: Alexander, Cynthia sent: Monday, November 01, 2004 2:05 PM To: Green, Shannon Subject: FW: Baytown: council pressured to enact tax freeze For fiscal affairs committee. c ---Original message ----- Sent: Wednesday, October 27, 2004 11:27 PM To: Alexander, Cynthia Subject: Baytown: council pressured to enact tax freeze Council pressured to enact tax freeze By Kristopher Banks Baytown Sun Published October 27, 2004 BAYTOWN — City Council has until Dec. 31 to pass a freeze on property taxes for senior citizens and the disabled if it is to affect the tax bills those homeowners will pay in early 2006. If they don't pass it, some citizens are threatening to take the matter into their own hands. several senior citizens showed up Tuesday because Council was scheduled to discuss the freeze. In response, Mayor Calvin Mundinger said the matter would be on the council's agenda to pass or defeat at their next meeting, Nov. 11. The tax freeze was enabled by a state constitutional amendment approved by voters in 2003 with more than 80 percent of the vote. The freeze would set property tax values and rates for those 65 and older and the disabled on properties with a homestead exemption. The freeze cannot be revoked once enacted. Council first examined the freeze earlier this year, but if enacted, the freeze would not go into effect until the beginning of the next year. Council has until the end of the year to pass the freeze on values at the beginning of 2005, the tax bills for which are paid in early 2006. if Council does not enact the freeze soon, some citizens may force the matter to a vote of the public. Carolyn Brumley and other area senior citizens are in the midst of organizing a petition for an initiative, which would take the power away from Council and put the matter before voters in a special election. "we wish (Council) would pass it," she said. "It would make things easier." The organizers are getting help from Steve Coycault, area representative for the Silver Haired Legislature. The Silver Haired Legislature is a statewide or anization that promotes senior issues. Coycault has been behind efforts to pass the freeze in nearby cities, such as Pasadena and Seabrook, whose city councils passed the freeze. "They should give the people who made the city what it is a break," said Coycault, who attended Tuesday's meeting. when Deer Park City Council would not pass the tax freeze, citizens passed an initiative with 74 percent of the vote, Coycault said. An initiative would require 5 percent of registered voters to sign a petition. The city had about 33,000 registered voters in the last city election, although that number could have gone up because of voter registration drives relating to the Page 1 • FW Baytown council presidential election. If it has not, signatures. pressured to enact tax freeze a petition would require about 1,650 An initiative for the tax freeze is not invincible. In.the city of windcrest, near San Antonio, voters defeated an initiative with about 56 percent of the vote, according to a city newsletter. So far, though, windcrest is alone, Jackson said. There has not been organized opposition to the freeze within the city. The Texas Municipal League, which assists city governments, does not take a side but urges governments to use caution when approaching the matter. According to some figures city administration gave to Council, the freeze might not have much of an effect on most senior citizens. The city offers a $50,000 property value exemption for seniors and the disabled already. According to the city, 56 percent of those receiving that exemption pay less than $100 in taxes. To pay $100 with a homestead exemption and a senior citizen exemption, a home must be worth about $80,000. The average home in Baytown is worth about $76,000. According to the city, 38 percent of homeowners with the senior citizen or disabled exemption pay no property taxes to the city at all. The exemption would cost the city about $153,000 in the first year, a number Mundinger noted is likely to grow. But Mundinger said that he would support the measure. "While campaigning, I said I would adopt (the tax freeze), and I plan on honoring that statement," e said. Councilman Mercedes Renteria III, who made the same statement while running for mayor earlier this year, also said he would support the measure. Page 2 • Fw Rowlett senior tax freeze issue fails again From: Alexander, Cynthia sent: Friday, October 22, 2004 8:36 AM To: Green, Shannon Subject: Fw: Rowlett: Senior tax freeze issue fails again For audit committee. c ---original message ----- sent: Friday, October 22, 2004 1:03 AM To: Alexander, Cynthia Subject: Rowlett: senior tax freeze issue fails again senior tax freeze issue fails again By: wendy Kay strain , Rowlett Lakeshore Times 10/21/2004 The issue was first brought before council in late July, as the council was going into budget discussions and working to catch new councilmembers up on the CIP (Capital Improvements Plan) process and reprioritize projects mentioned in the plan. At that time, the issue was tabled until this week's meeting to give the council a chance to focus on the budget, which had to be completed within a specific time frame. Because a decision on the tax freeze for seniors wouldn't have gone into effect until next year anyway, regardless if the decision was made in July or in May 2005, it was deemed to have less priority. once again, the council chambers were full of seniors and others wishing to speak on both sides of the issue. Those speaking in favor of the issue listed such factors as fixed incomes of seniors, rising costs of healthcare, medicines, groceries and other general living expenses. "My wife and I have lived in Rowlett for a long time," said one retired gentleman. "we had social security and had CDs and felt our retirement was well taken care of. we were fine for about ten years or so, but then we started to need doctors, taking medications and going on supplemental insurance. -Our rates rose, our medical bills rose and our CDs were bringing in less income than they were when we retired. "My wife still volunteers for the city. The jobs she does saves the city the cost of a full-time minimum wage worker. we're not asking for a salary for her, we're just asking for a little help where we need it most." Those speaking against the issue seemed to fall into two categories. Some were against the issue simply because it was impossible to estimate how the numbers will look in 10-20 years and therefore estimate the impact such a freeze might have to the overall city budget. "I'm not against a senior tax freeze," another man said. "I Just think we need to be careful about how much of a freeze we give them. I realize they're on a fixed income, but I still have to watch out for myself and the people who are younger than I am. If the freeze is too large, we may get to a point where our younger people can't afford it." Others felt it was improper to ask younger families to shoulder the tax burdens of older residents. "I can't see putting the tax burden onto my children and their new baby," one man said, not quite at the age of qualifying for any kind of senior relief. "I don't see the logic in that." Page 1 0 • Fw Rowlett senior tax freeze issue fails again After much similar comments from audience members, the council also took a turn at speaking out on the issue. Al Alberts, David Bryan and Shane Johnson spoke in favor of a freeze while Becky Sebastian, Bruce Mahnken and Cindy Rushing spoke against the idea. "Social security is not being fixed at the national level, so we should be able to do something to help," Johnson said. "I am not in favor of a tax freeze, but I would be interested in exploring other options," Rushing said. In the end, the council decided to go with Rushing's suggestion and explore other options. The tax freeze itself failed, but the motion to table the issue for another two weeks while city staff explores options such as offsetting valuation increases with matching senior tax breaks within the city passed by a vote of 7-0. The next city council meeting will be held on Nov. 9. Page 2 • • New Braunfels county notes tax freeze could have larger impact - younger voters and business peo From: Alexander, Cynthia Sent: Friday, October 22, 2004 8:43 AM To: Green, Shannon Subject: Fw: New Braunfels: county notes tax freeze could have larger impact - younger voters and business people For audit committee. c ---Original message ----- Sent: Friday, October 22, 2004 2:25 AM To: Alexander, Cynthia Subject: New Braunfels: county notes tax freeze could have larger impact - younger voters and business people Tax freeze could have larger impact By Ron Maloney The Herald-zeitung Published October 22, 2004 If voters enact a tax freeze for seniors, county officials learned Thursday younger voters and businesspeople will absorb even more of the impact than previously thought. And Precinct 2 Commissioner Jay Millikin, who has taken the point in opposing the freeze, warned it could cut seriously into vital services if the county is to avoid a potential rollback election. under tax laws, voters can petition for a ballot to "rollback" a tax hike if it increases the effective tax rate by more than 8 percent. During the "comments" portion of the agenda, County Clerk Joy Streater noted heavy voter turnout for the first three days of early voting. "We've seen 4,940 voters so far — more than 800 from Garden Ridge Tuesday," Streater said. "we're exceeding 1,300 every day." In the 2000 presidential election, turnout was heavy on the first and last day of early voting. what is different so far this year, streater said, is it hasn't trailed off from a fast start. "It's just unheard of," streater said. Millikin noted heavy early voting turnout. "Something is afoot if we have that many voters in one day in Garden Ridge," said Millikin, former mayor of that city. "I grow increasingly concerned about Proposition B ." Proposition 13 was the constitutional amendment that would allow local governments to freeze property taxes for seniors and disabled homeowners — or force them to do it following a petitioned vote. That question is this year Proposition 1 on both the city and county ballots. Millikin said county counsel Geoff Barr warned him this week that, if passed, not only property taxes would freeze, but the tax abatements now in place would be locked in as well. Comal county offers a 20 percent homestead abatement to all homeowners and an additional $11,110 abatement to homeowners over age 65. Page 1 �7 • New Braunfels county notes tax freeze could have larger impact - younger voters and business peo Reducing the abatements had been considered as a place to defray some of the lost revenue. Millikin expressed surprise to learn that even if the county did that, the result would still fall heavily on younger voters. "we still have the opportunity to adjust the exemption for everyone else," county Auditor David Renken said. "That's true," Millikin agreed. "But the whole issue is tax equity." County Judge Danny Scheel, who also opposes the freeze, said fairness is one of the problems he has with it. "If this exemption is taken from younger people, it just increases the inequity," Scheel said. "There are those who surmise that if we can't pass it on to someone else, we can Just freeze our budget," Millikin said. "Those people haven't sat here during a budget hearing to see what that would mean. You say we can cut the budget. Tell me, where do you want me to cut? Do we cut the road department? It will take longer to get roads fixed. Do we cut public health? Is that acceptable? Do we cut the sheriff's office? Less deputies mean longer response times. Do we want to close the jail?" Page 2 • 0 Green, Shannon From: Alexander, Cynthia Sent: Wednesday, September 15, 2004 3:40 PM To: Green, Shannon Cc: Feazelle, Debra; Joerns, John; Scott, Crystal Subject: FW: Friendswood: council approves plan for town center For 4B Board next meeting (informational purposes only). C Original Message Sent: Wednesday, September 15, 200412:51 AM To: alexanderc@ci.la-porte.tx.us Subject: Friendswood: council approves plan for town center Council approves plan for town center By Carolina Amengual The Galveston County Daily News Published September 15, 2004 FRIENDSWOOD — Members of the Main Street Steering Committee will soon start putting a plan to redevelop downtown into action. The city council unanimously approved Monday the committee's recommendations and strategies to create a town center, an area expected to become the civic, cultural and commercial hub. Next, the committee will work to secure seed funding and establish a nonprofit entity that will coordinate fund-raising and public relations. The town center, which will be along South Friendswood Drive, bounded by Shadowbend Avenue, Morningside Drive, Spreading Oaks Avenue and Laurel Drive, will be comprised of homes, offices, restaurants, boutiques and public facilities. The area will be marketed as a district and the town center as a specific site within that district. PageSoutherlandPage, the consultant, has determined that the best way to promote redevelopment will be through a public private partnership. While the private sector is expected to play a key role in the project, the city will make an initial investment of $50,000. The report prepared by PageSoutherlandPage also recommends using funds raised by residents to make improvements to the future town center area. Enhancements could include landscaping, sidewalks, fountains and signs. • In the mid- to long-term, the project may require additional sources of funding, such as the 4B Economic Development Sales Tax. FUNDING Potential funding needs and costs (estimate). Year 1 Low: $150,000 High: $428, 500 Year 2 Low: $175, 000 High: $456, 000 Year 3 Low: $308,900 High: 936,000 Year 4 Low: $238,900 High: $1.5 million Year 5 Low: $628,900 High: $1.8 million — Source: City of Friendswood FW Audit Fees From: Alexander, Cynthia Sent: Wednesday, January 05, 2005 3:59 PM To: Dolby, Michael; Green, Shannon subject: FW: Audit Fees Let's keep this so that we can make comparisons (after RFP is issued and proposals received). C ---Original message ----- From: Glenn Windsor [mailto:gwindsor@deerparktx.org] Sent: Friday, May 16, 2003 9:12 AM To: Alexander, Cynthia subject: Audit Fees Good Morning Cynthia: Thank you for your response the other day! oh, I will not be going to New York, but thanks for the offer on the entertainment side. I love New York! I have run the NYC marathon 3 times and have been up there on several other occasions. If you want some hints on good places to eat let me know, but I'm sure you know the city pretty well too. If you are there on a Sunday, you might want to catch the subway and make the Brooklyn Tabernacle service. It is totally AWESOME! You have to get there early to get a seat. On the audit fees ................ .Sugar Land is $ 56,500 for 2003. They implemented GASB 34 last year with a base audit fee of $ 47,725 and an additional fee of $ 5,000 for GASB 34. Rosenberg has a fee of $ 27,500 for each of the next three years; $ 21,000 for the financial statements - including preparation, $ 3,750 for single audit., if needed, and $ 2,750 for the Rosenberg Development Corporation audit. I had Roger's and managed to delete it. I have attempted to e-mail him i this morning but the e-mail s not going through. I have yet to hear back from Webster or Missouri City. would you happen to have Monica's e-mail address? It is not listed in the directory. Thanks! Glenn Page 1 FW Audit Fee for This Year From: Alexander, Cynthia Sent: Wednesday, January 05, 2005 4:00 PM To: Dolby, Michael; Green, Shannon subject: Fw: Audit Fee for This Year For audit folder. c ---Original message ----- From: Glenn Windsor[mailto:gwindsor@deerparktx.org] Sent: Tuesday, May 13, 2003 11:01 PM To: Alexander, Cynthia Subject: Audit Fee for This Year Hi Cynthia! 41450 8300 we are -looking at the proposal from Null-Lairson for this next year and would like to compare it to other cities. They are proposing a fee of $ 41,450 and $ 8,300 for additional work due to GASB 34. Is that comparable to your fee this next year and how much additional are y'all looking at due to GASB 34? Thank You! Hope all is well with you! Glenn Windsor Director of Finance City of Deer Park, Texas 281.478.7225 gwindsor@deerparktx.org Page 1