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HomeMy WebLinkAbout2003-03-24 Regular Meeting of La Porte City CouncilMINUTES OF THE REGULAR MEETING OF LA PORTE CITY COUNCIL March 24, 2003 1. CALL TO ORDER The meeting was called to order by Mayor Norman Malone at 6:00 p.m. Members of City Council Present: Councilmembers Mike Mosteit, Chuck Engelken, Howard Ebow, Peter Griffiths, Barry Beasley, James Warren, Charlie Young and Norman Malone Members of Council Absent: Bruce Meismer Members of City Executive Staff and City Employees Present: City Attorney Knox Askins, City Manager Debra Feazelle, City Secretary Martha Gillett, Director of Administrative Services Carol Buttler, Director of Parks and Recreation Stephen Barr, Director of Public Works Steve Gillett, Purchasing Manager Susan Kelley, Director of Emergency Services Joe Sease, Fire Chief Mike Boaze, Assistant Fire Chief Champ Dunham, Assistant to the City Manager Crystal Scott, Lieutenant Carl Crisp, Human Resource Specialist Cindy Gates, Assistant City Secretary Sharon Harris, Assistant Director of Finance Michael Dolby, Dispatcher II Carol Scott, Police Chief Richard Reff. Others Present: J. B. Williamson, Mrs. Williamson, Dave Turnquist, Neal Welch, Spero Pomonis, Mary Gay, Mary Ann Trainer, Keith Trainer, Rusty Shepherd, Sue Gail Kooken, Carlos Smith, Fran Strong, Roy Myers, Karen Lapeyre, Darlene Human, Mr. & Mrs. Chris Gottus, Tyler Swenson, Sophia & Michelle Marquez, David Addison, Thomas Helton, Amy Lopez, Barrett Fontenot, Cristen Lauck, James A. Miller, Anna Tones, Vanessa Zapata, Amanda de Gracia, Scott McDonald and Fran Strong 2. Mayor Norman Malone delivered the invocation. 3. Mayor Norman Malone led the Pledge of Allegiance. 4. Council considered approving the minutes of the Special Called Meeting held on February 23, 2003 and the Regular Meeting held on February 24, 2003. Motion was made by Councilmember Beasley to approve the Minutes of the Special Called Meeting held on February.23, 2003 and the Regular Meeting held on February 24, 2003. Second by Councilmember Griffiths. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 5. PRESENTATIONS Chief Richard Reff, Wendy Gottus and Carl Crisp presented Carol Scott with the Employee of the 4`h Quarter 2002 award. City Council Minutes — 3/2413 — Page 2 • Councilmembers Chuck Engelken and James Warren presented an award of recognition to J. B. Williamson, Municipal Judge for his services with the City of La Porte. 6. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAXPAYERS WISHING TO ADDRESS CITY COUNCIL There were no citizens or taxpayers wishing to address City Council. 7. Council considered approval or other action regarding a resolution establishing a Youth Commission for La Porte, Texas. City Manager Debra B. Feazelle presented summary and recommendation and answered Council's questions. The City Attorney read: RESOLUTION 2003-05 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, ESTABLISHING A YOUTH COMMISSION FOR LA PORTE, TEXAS. Motion was made by Councilmember Griffiths to approve Resolution 2003-05 as presented by Ms. Feazelle, with agreement to defer the number of people assigned for the Commission until a later date: when they have more feedback from the schools and know which direction they are going with the Commission. Second by Councilmember Warren. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 8. Council considered approval or other action regarding a resolution of the City of the City of La Porte, Texas Adopting a Legislative Omnibus for the 78`h State Legislative Session. City Manager, Debra B. Feazelle, presented summary and answered Council's questions. The City Attorney read: RESOLUTION 2003-06: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS ADOPTING A LEGISLATIVE OMNIBUS FOR THE 78TH STATE LEGISLATIVE SESSION FOR THE PURPOSE OF DEFINING THE POSITION OF THE CITY OF LA PORTE. Motion was made by Councilmember Griffiths to approve Resolution 2003-06 as presented by Ms. Feazelle. Second by Councilmember Ebow. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 9. Council considered adopting a resolution replacing the zoning map with a new "official " zoning map. Director of Planning, Doug Kneupper, presented the summary and answered Council's questions. The City Attorney read: RESOLUTION 2003-07: A RESOLUTION ADOPTING A NEW OFFICIAL ZONING MAP FOR THE CITY OF LA PORTE, HARRIS COUNTY, TEXAS; City Council Minutes — 3/293 — Page 3 is REPLACING THE PREVIOUS OFFICIAL ZONING MAP DATED JANUARY 26, 1987; MAKING CERTAIN FINDINGS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE. Motion was made by Councilmember Beasley to approve Resolution 2003-07 as presented by Mr. Kneupper. Second by Councilmember Engelken. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 10. Council considered approving a resolution temporarily transferring North 4`h Street and North 5"' Street (within the limits described) to the Harris County Road Log. Director of Public Works, Steve Gillett, presented the summary and answered Council's questions. The City Attorney read: RESOLUTION 2003-08: RESOLUTION AUTHORZING THE TEMPORARY TRANSFER OF THE SECTIONS OF TWO STREETS TO THE HARRIS COUNTY ROAD LOG. Motion. was made by Councilmember Ebow to approve Resolution 2003-08 as presented by Mr. Gillett. Second by Councilmember Warren. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 11. Council considered adopting an ordinance for the policy contract that offers the most benefit to the City at the most reasonable cost and authorize the City Manager to execute the final policy contract for April 1, 2003 through March 31, 2004. Director of Administrative Services, Carol Buttler, presented the summary and answered Council's questions. The City Attorney read: ORDINANCE 2003-2617 — AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND STANDARD SECURITY LIFE INSURANCE COMPANY OF NEW YORK FOR A STOP LOSS MEDICAL INSURANCE CONTRACT EFFECTIVE APRIL 1, 2003; APPROPRIATING NOT TO EXCEED $210.858.00, TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Engelken to approve Ordinance 2003-2617 as presented by Ms. Buttler. Second by Councilmember Mosteit. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 12. Council considered passing the Truck Lane Restriction Ordinance, which places restrictions on City Council Minutes — 3143 — Page 4 • truck lane usage during peak hours of portions of Hwy 225 within the City limits. Police Chief, Richard Reff, presented the summary and answered Council's questions. The City Attorney read: ORDINANCE 2003-2618: AN ORDINANCE ESTABLISING LANE USE RESTRICTIONS FOR TRUCKS UPON A PORTION OF STATE HIGHWAY 225; PROVIDING THAT ANY PERSON VIOLATING THE TERMS OF THIS ORDINANCE SHALL BE DEEMED GUILTY OF A MISDEMEANOR AND UPON CONVICTION SHALL BE FINED IN ANY SUM NOT MORE THAN TWO HUNDRED DOLLARS ($200.00); PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS ACT; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Young to approve Ordinance 2003-2618 as presented by Chief Reff. Second by Councilmember Ebow. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 13. Council considered approving an ordinance authorizing the City Manager to execute an Amended Agreement with Harris County for the Pedestrian Bridge Project. Director of Parks and Recreation, Stephen Barr, presented the summary and answered Council's questions. The City Attorney read: ORDINANCE 2003-2619: AN ORDINANCE AUTHORIZING AND APPROVING AN AMENDED AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY, REGARDING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING OF A PEDESTRIAN BRIDGE OVER LITTLE CEDAR BAYOU; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Ebow to approve Ordinance 2003-2619 as presented by Mr. Barr. Second by Councilmember Warren. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 14. Council considered approving an ordinance amendment amending the rental fee policy and schedule for Sylvan Beach Pavilion to include Sunday morning rentals for non-profit organizations, if there is no Saturday rental in place. Director of Parks and Recreation, Stephen Barr, presented the summary and answered Council's questions. The City Attorney read: ORDINANCE 1783-B: AN ORDINANCE AMENDING CHAPTER 50, "PARKS AND RECREATION", ARTICLE VI, "SYLVAN BEACH", OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, AND APPENDIX A THERETO, City Council Minutes — 3A — Page 5 0 ESTABLISHING A RENTAL FEE POLICY AND FEE SCHEDULE FOR SYLVAN BEACH PAVILION, CONTAINING A SEVERABILITY CLAUSE, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Griffiths to approve Ordinance 1783-B as presented by Mr. Barr. Second by Councilmember Warren. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 15. Council considered approval or other action regarding an ordinance amending Ordinance 2000- 2385, "An ordinance approving and authorizing an agreement of lease between the City of La Porte and the La Porte Heritage Society, for a twenty year term commencing May 1, 2000". City Manager, Debra B. Feazelle, presented the summary and answered Council's questions. The City Attorney read: ORDINANCE 2000-2385-B: AN ORDINANCE AMENDING ORDINANCE NO.2000-2385, "AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT OF LEASE BETWEEN THE CITY OF LA PORTE AND THE LA PORTE- BAY AREA HERITAGE SOCIETY, FOR A TWENTY YEAR TERM COMMENCING MAY 1, 2000", MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Beasley to approve Ordinance 2000-2385-B as presented by Ms. Feazelle. Second by Councilmember Warren. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 16. Council considered approval of an ordinance authorizing the City Manager to execute an Agreement for Professional Services with Dansby & Miller AIA Architects for design of new Fire Station #2 and allocating $90,000 to fund said agreement. Director of Planning, Doug Kneupper, presented the summary and answered Council's questions. The City Attorney read: ORDINANCE 2003-2620: AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND DANSBY & MILLER AIA ARCHITECTS FOR PROVIDING ARCHITECTURAL SERVICES FOR FIRE STATION 2; APPROPRIATING $90,000.00 TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Engelken to approve Ordinance 2003-2620 as presented by Mr. Kneupper. Second by Councilmember Mosteit. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None City Council Minutes — 3/203 — Page 6 • Abstain: None 17. Council considered approving an ordinance authorizing the City Manager to execute a contract with Brooks Concrete, Inc. in the amount of $50,000 for annual sidewalk replacement. Director of Planning, Doug Kneupper, presented the summary and answered Council's questions. City Manager Debra Feazelle questioned, if Council approves $50,000 to start the sidewalk replacement, and plans to have additional funds ($10,855.50) to have the remaining sufficient wheelchair ramps, revising the total cost to $60,855.50. The City Attorney read: ORDINANCE 2003-2621 - AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND BROOKS CONCRETE, INC. FOR CONSTRUCTION OF 2003 CITY-WIDE SIDEWALK IMPROVEMENT PROJECT; APPROPRIATING $60,855.50 TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Griffiths to approve Ordinance 2003-2621 as presented by Mr. Kneupper, with agreement to amend cost to 60,855.50. Second by Councilmember Ebow. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None Motion was made by Councilmember Griffiths to approve Ordinance 2003-2621 as amended by Council. Second by Councilmember Ebow. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young and Malone Nays: None Abstain: None 18. Doug Kneupper asked Council to consider awarding bid for GIS software and related items. Stephen Ban asked Council to consider awarding bid for lifeguard services. Joe Sease asked Council to consider awarding bid for firefighter protective clothing. Joe Sease asked Council to consider awarding bid for EMS medical supplies. Steve Gillett asked Council to consider awarding bid for automatic vacuum chlorination system. Motion was made by Councilmember Warren to approve all as presented. Second by Councilmember Young. The motion carried. 19. Administrative Reports Ms. Feazelle informed Council of the L.P.I.S.D. Board Meeting, City Employees Recognition on City Council Minutes — 3/293 — Page 7 March 25, 2003 at the District Administration Building, the City Manager's Reception to be held March 28, 2003 at the Sylvan Beach Pavilion, the La Porte Fire Department Appreciation Dinner to be held March 28, 2003 at the La Porte Recreation Center and the Mystery Dinner Theater to be held on April 10, 2003 at the Evelyn Kennedy Civic Center. 20. Council Comments Councilmembers Engelken, Ebow, Beasley, Warren, Young and Mayor had comments. 21. EXECUTIVE SESSION — PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW, CHAPTER 551.071 THROUGH 551.076, AND 551.086, TEXAS GOVERNMENT CODE, - (CONSULTATION WITH ATTORNEY, DELIBERATION REGARDING REAL PROPERTY, DELIBERATION REGARDING PROSPECTIVE GIFT OR DONATION, PERSONNEL MATTERS, DELIBERATION REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGATION, DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS) Council retired into Executive Session at 7:15 p.m. Council reconvened the Council Meeting at 8:46 p.m. 22. Consideration and possible action on items considered in Executive Session There was no action taken during Executive Session. 23. ADJOURNMENT There being no further business to come before Council, the Regular Meeting was duly adjourned at 8:47 p.m. Respectfully submitted, 1--fto4�14zW Martha Gillett City Secretary Passed and approved on this 14`h day of April 2003. � i1�10147 O"IA No an Malone, Mayor CITY CELEBRATES TWENTY-ONE YEARS OF FINANCIAL EXCELLENCE The Certificate of Achievement for Excellence in Financial Reporting has been awarded to the City of La Porte, Texas, by the Government Finance Officers Association of the United States and Canada for its comprehensive annual financial report for the year ending September 30, 2001. This is the twenty-first (21 st) consecutive year that the city has received this prestigious award. The Certificate of Achievement for Excellence in Financial Reporting is an award designed to recognize and encourage excellence in financial reporting by state and local governments. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. The Certificate of Achievement for Excellence in Financial Reporting Program (Certificate Program) was established by the Government Finance Officers Association (GFOA) in 1945. The GFOA instituted the program to encourage all government units to prepare and publish an easily readable and understandable compreheensive a nnual f inancial report (CAFR) c overing a II f unds and financial transactions of the government during the fiscal year. The GFOA believes that governments have a special responsibility to provide the public with a fair presentation of their financial affairs. CAFRs go beyond the requirements of generally accepted accounting principles (GAAP) to provide the many users of government financial statements with a wide variety of information useful in evaluating the financial condition of a government. Requested Photo for Newspaper. . City Manager; Director of Finance; and Assistant Finance Director � �', � � x �.�+r �._ s # �' Yr� z q � e-u��;;��F--`;i� - �"J'� y 3'T"i; ti•4y-, �y ♦ � � t �- _ t E _ _ »- -s 1 +,'"'t -d F P^" 9 �c-, � a, �a.8- +, U p a"a5 { i d--?may mot' -•{ 3� r-S' , t_t3� F �r F -- ,r. -ir^ - "k- A : z. � ; - - r'' - :. _ - y ' _ s s^'r _ r -<v+.a a� '�tr.•y.,i �y,sas`�' } -� '�� �'v4� w" - a , , tr G t - r' r x y - ' r _ � c� c s.� .� � ,<' °s�'a - �., y - a 4 � �„ d �, _ _ _ �-,•ram"-'` _ _ _ -.n"`<� _ sr-i%;�'„ ,e•`rt ��- - F�' �„�- ,x• i- +ti'•-.a-�„�. -�.- � [ - .- -E i 000 I.- Jw Nit •r.� .k a "� ,t,kK �� ,•ae- 'fix �� �;� K & �ror,,. a'r rL 7 -� ' a. sk x a- K f s e tj \ �, ' •''.e,• °f--:g.ta_ bs 'r y 'q "'a.� �. qt5 t: :c"y' 3 a• ��\ Z3 {a W`,,,at ,a 'aw Tc ,. x ` �- c-c,>•. ,4, _- •~ 9- �- - - *e 1- - t£a -.4• lam{ �_ - i - - _ '::s' -�: .1' r�s,tfG �x-,."$r ,�' `3ik'4�'�e•fzT 21`..xer +o.ry3.t�� 7i rG� �x ,z u.H r > _ " ra i - °'�, fti s,.n %..r ° `'t 'S..i a,y. sap,-��"yt i.•kK• -"r" +y rR -r-Y -'?J - t' "4 -fir k '�• e-� ��'� �'-tsa'' - FStrx'>,q i- ya.v� _ '�_ -�s _ w' �' - - s - - .. \ �`�.l +'� w t � .4 .'t ice: ,. - dy'^ - t' •'-[.;".,., '�' �. fi i �',� a KFCi - - t 5 v� .q a -'�,S ¢ 'w ry x •£s Nss +h. .4,�6„ ._ f �{< ` -� t- �4 t � t %; ,.. .._ ., _ ._ . 1 �1 1 �1 1 1 1 CITY OF LA PORTE, TEXAS 1 Comprehensive Annual Financial Report P p 1 For the fiscal year ended 1 1 September 30, 2002 � . 1 1 Prepared by: Department of Finance 1 Cynthia B. Alexander 1 Director of Finance Michael G. Dolby, CPA 1 1 Assistant Finance Director I CITY OF LA PORTE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2002 TABLE OF CONTENTS Exhibit Page INTRODUCTORY SECTION Letter of Transmittal I GFOA Certificate of Achievement 11 ■ Principal City Officials 12 City Organization Chart 13 ' FINANCIAL SECTION Independent Auditors' Report 16 ' General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups A-1 18 ' Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types A-2 22 ' Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual — General, Special Revenues and Debt Service Funds A-3 24 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types A-4 27 Combined Statement of Cash Flows - All Proprietary Fund Types A-5 28 ' Notes to General Purpose Financial Statements 31 Combining and Individual Fund and Account Group ' Financial Statements and Schedules: Governmental Fund Types: General Fund: ' Comparative Balance Sheet B-1 53 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual B-2 54 ' Schedule of Revenues — Budget and Actual B-3 55 Schedule of Expenditures — Budget and Actual B-4 56 Special Revenue Funds: Combining Balance Sheet C-1 64 ' Combining Statement of Revenues, Expenditures and Changes in Fund Balance C-2 66 Statement of Revenues, Expenditures ' and Changes in Fund Balance — Budget and Actual C-3 68 Debt Service Fund: Comparative Balance Sheet D-1 73 Statement of Revenues, Expenditures ■ and Changes in Fund Balance — Budget and Actual D-2 74 CITY OF LA PORTE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEM 3ER 30, 2002 -- TABLE OF CONTENTS (CONTINUED) Exhibit Page Capital Projects Funds: — Combining Balance Sheet E-1 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balance E-2 78 - Proprietary Fund Types: Enterprise Funds: Combining Balance Sheet F-1 81 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 85 - Combining Statement of Cash Flows F-3 87 Internal Service Funds: Combining Balance Sheet G-1 92 Combining Statement of Revenues, Expenses and Changes. in Retained Earnings G-2 93 - Combining Statement of Cash Flows G-3 94 Account Groups: General Fixed Assets: Schedule of General Fixed Assets — By Source H-1 97 Schedule of Changes in General Fixed Assets - By Function and Activity H-2 98 Schedule of General Fixed Assets- By Function and Activity H-3 99 General Long -Term Debt: Schedule of General Long -Term Debt I-1 102 Table Page STATISTICAL SECTION (Unaudited) - General Governmental Expenditures by Function 1 103 General Governmental Revenues by Source 2 105 'Property Tax Levies and Collections 3 107 Property Tax Rates - Direct and Overlapping Governments 4 109 Ratio of Gross General Bonded Debt to Assessed Value and Gross Bonded Debt Per Capita 5 112 Computation of Direct and Overlapping Debt 6 113 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Expenditures 7 .114 Revenue Bond Coverage - Water and Sewer Bonds 8 115 Assessed and Estimated Actual Value_ Property 9 117 Principal Taxpayers 10 119 Demographic Statistics 11 120 Property Value, Construction and Bank Deposits 12 121 Miscellaneous Statistical Data ii 13 122. - ' Z m0 00 I On z0 L F - OLLLL LL A LLLLL LLLL LLLLLLLL LLLLLL O LLLLLLLLL LLLLLLL LLLLLLLLLL LLLLLLLL LLLLLLLLL LLLLLLLLL LLLLLL LLLLLLLLLL LLLLLL � LLLL LLLLL r LLLLL LL LLLL LLLLLLLLL r r m r r r r r r r r r r r r r r rr r ^+ rrr r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r TEXAS 1 11 1 E INTRODUCTORY SECTION 11 City o La Porte Established 1892 ME To the Honorable Mayor, City Council Members and Citizens of the City of La Porte, Texas: The comprehensive annual financial report of the City of La Porte, Texas (the City) for the fiscal year ended September 30, 2002, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position of all funds and the results of operations of the various funds, account groups and component units of the City. All disclosures necessary to enable the reader to gain an understanding of the financial activities have been included. The comprehensive annual financial report is presented, in three sections: introductory, financial and statistical. The introductory section includes this transmittal letter, the City's organizational chart and a list of principal officials. The financial section includes general purpose financial statements and combining and individual fund and account group financial statements- and schedules, as well as the auditors' report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi -year basis. This report is prepared in accordance with generally accepted accounting principles (GAAP) for local governments, as prescribed by the Governmental Accounting Standards Board (GASB), and other professional standards as applicable. In addition, this report is intended to represent a comprehensive summary of the significant City financial data expected to meet the needs of the City's citizens, employees, financial institutions, intergovernmental agencies and other interested readers. This report includes all funds and account groups of the City of La Porte. The City of La Porte provides a full range of services. These services include police and fire protection, emergency medical services, commercial and residential solid waste collection and disposal, parks and recreational activities and construction and maintenance of street and drainage systems. In addition to general government activities, the City owns and operates enterprise activities providing water and wastewater service, a community convention center, municipal golf course, and an airport. This report also contains the activities of its component units, the La Porte Area Water Authority (the ' Authority), the Tax Increment Reinvestment Zone (TIRZ) and the La Porte Development Corporation (Section 4B Sales Tax). A component unit is a legally separate entity for which the City (the primary government) is financially accountable. The Authority is a blended component unit and although legally separate from the ' City, it is in substance part of the City's primary operations, providing surface water for the primary benefit of the City's water and wastewater activities. Accordingly, the Authority is reported as an enterprise fund of the City. The Tax Increment Zone provides benefits exclusively for the City through reinvestment financing of ' ad valorem taxes. The (TIRZ) is also a blended component unit and it is reported as a Special Revenue Fund of the City. The La Porte Development Corporation (Section 4B Sales Tax) is governed by a seven member board appointed by City Council and it 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 operations of the La Porte Development Corporation (Section 4B Sales Tax) are reported in the Special Revenue Funds of the City. 604 W. Fairmont Pkwy. o La Porte, Texas 77571 a (281) 471-5020 11 ECONOMIC CONDITION AND OUTLOOK The City 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 is flanked on the north ' and south sides by the nation's largest concentration of petrochemical plants. It is located approximately 25 miles from downtown Houston. ' State Highway 225 provides access to the City on its north side and connects on the west with Interstate 610. State Highway 146, which extends into northeast Texas, allows access from the south through the City. An eight -lane suspension bridge spans the Houston Ship Channel and provides access to the La Porte Bayshore ' Area. In 1958 the City created an Industrial District adjacent to the City, which presently encompasses approximately 5,500 acres of land between the City and the Houston ship channel. In 1970, another district was created which presently encompasses approximately 2,500 acres. The City's Industrial Districts are protected from annexation by other municipalities in that they are ' encompassed by annexed land, which completely encircles the districts. The City enters into formal contracts with the industries in the districts, whereby a certain portion of each plant's value is annexed by the City. The remaining plant's value constitutes the protected Industrial District area on which the industries make payments ' to the City each year in lieu of taxes. These annual in lieu payments are an amount which, when added to the full City taxes on the annexed portion, equal 53% of what the City's taxes on the industry would be if 100% of the industry were annexed by the City. The contracts also contain a new construction incentive clause that ' allows new construction in the industrial district area to be assessed in lieu of taxes at a 30% rate, instead of the 53% rate. Since January 1, 2000, these plants have added physical improvements in excess of 491 million dollars. These in lieu of tax payments are reported as industrial payments in the financial section of this report. ' Under the City Charter and State Statutes, the City has the authority to annex additional areas. Harris County is a 1,788 square mile county leading in oil, gas and petrochemical areas, having over $230 ' million average annual production of petroleum, natural gas and natural liquid gas. It has more than 3,000 manufacturing plants, the nation's largest concentration of petrochemical plants, the second largest United States seaport; and is a corporation management center. The Texas Medical Center is one of the nation's ' largest, providing medical care and educational opportunities. The c ounty's 5 7 acute care hospitals have 14,914 beds of which 7,000 are in the Texas Medical Center. Higher education facilities includes: University of Houston, Rice University, Texas Southern University, St. Thomas University and Houston Baptist College, all offer full four year as well as postgraduate programs. The LBJ Manned Spacecraft 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. FUTURE 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. 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; ■ It is 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. It is important as the city continues to develop that the integrity of these 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 for a 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 created 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. Goals 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. 4 • ■ 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. FINANCIAL INFORMATION ' Management of the City is responsible for establishing and maintaining internal controls designed to ensure the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. Such controls were designed to provide reasonable, but not absolute, assurance regarding: (1) The safekeeping of assets against loss from unauthorized use or disposition; and (2) The reliability of financial records for preparing the financial statements and maintaining accountability for assets. IThe concept of reasonable assurance recognizes that: (1) The cost of a control should not exceed the benefits likely to be derived; and (2) The evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluation occurs within the above framework. We believe that the City's current internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of ' financial transactions. Budgeting Controls. In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund and debt service fund are included in the annual appropriated budget. Project -length financial plans are adopted for the capital project funds. The level of budgetary control (that i s, the 1 evel at which expenditures can not legally exceed the appropriated amount) is established by department, within an individual fund. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end. However, encumbrances generally are re -appropriated as part of the following year's budget. As demonstrated by the statements and schedules included in the financial section of this report, the City continues meeting its responsibility for sound financial management. General Government Functions. The following schedule presents a summary of general fund, special revenue fund and debt service fund revenues for the fiscal year ended September 30, 2002 and the amount and percentage of increases in relation to prior year revenues. _ Percent Amount Percent Increase of Increase Revenues of Total . from 2002 Decrease(Decrease) Property taxes $ 10,819,784. $ 40.90% $ 633,02r 6.21% Franchise taxes 1,650,349 6.23 (184,772) (10.07) Sales taxes ' . 2,862,391 10.82 (4,105). (.14) Industrial payments 6,892,542 26.06 405,888 6.26 Other taxes 309,948 - 1.18 (570) (.18) Licenses and permits 238,535 0.90 (23,475) (8.96) Fines and forfeits 614,534 2.32 52,987 9.44 Charges for services 2,108,739_ 7.97 (814,761) (27.87) Intergovernmental 385,722 1.46 (287,383) (42.70) interest 444,248 1.68 (482,408) (52.03) 1ltiscellaneous 143,668 0.55 31,279 ' 27.83 Total revenues $ Z 470 4 0 $ Ol w/0 $ 9 (2.48)% O Charges for services ■ Intergovemmerrtal 8d 1% REVENUES. ■ Fines and forfeits 2% ■ Interest p Miscellaneous © Licenses and permits 20A 1% 1% 0 Property Taxes 41 % m Older taxes :ta:-�. `:fib. • i. '..�...`:.,"'i"�:;ri`..,M=: -- :.. , E •N4._ ._;:..:: • r: _-•:;:. :. ;.;...: _ Olndustrial Payments 26% O Sales Taxes 11% ■ Franchise Taxes . 6% Franchise tax collections were down 10.07% due to a decrease in fees paid by HL&P and Entex. Sales tax collections were down .14%0, which is attributed to the current- downturn in consumer spending. The .18% decrease in other taxes is due to lower collections of mixed drink taxes. Industrial payments increase 6.26% due to new construction from prior years paying the full 53%. Licenses and permits showed a 8.96% decrease, which was caused by decreased construction activity in the City. Fines and Forfeits showed a 9.44% increase, due.to municipal court collections. Charges for services is down by 27.87% due to outsourcing commercial garbage to Browning Ferris Industries. 6 1 • � i 1 1 1 11 11 L Interest income is down 52.03%9- This decrease is due to fluctuating interest rates. During 2001, the police department received a one time grant for mobile computers. Therefore, Intergovernmental decreased 42.7%. Miscellaneous revenue, by nature, does not lend itself to historical comparison, the 27.8j% increase is indicative of this. The following schedule presents a summary of general fund, special revenue fund and debt service. fund expenditures for the fiscal year ended September 30, 2002 and the percentage of increases and decreases in relation to prior year amounts. Percent Amount Percent Increase of Increase Expenditures of Total from 2002(Decrease) Decrease Current: Fire $ 3,198,856 $ 12.67% $ .244,986 8.29% Police 6,966,827 24.60% 556,377 8.68% Administration 2,456,929 9.64% (29,685) (2.13)% Finance 1,614,026 6.39% (16,781) (1.03)% Public works 4,187,428 16.59% (579,158) (12.15)% Parks and recreation 3,297,865 13.06% 239,666 7.84% Planning 1,224,022 4.85% 109,333 9.81% Debt Service: Principal I,685,000 6.68% (90,000) (5.07)% Interest and fiscal charges 634,535 2.51% (95,398 (13.07)% Total expenditures $ 25.2 55.488 100.00% $ 33 1.36% EXPENDITURE'S ■ Interest and fiscal charge O Principal 3% 0 Planning 7% J O Fire 5% .1 L / 13% O Parks and recreation ' :r ■ Police 27% •®Public Works 16% OFinance OAdministration 6% 10% The increase in the fire department is primarily caused by increases in personal services, which were up 8.17%, or $241,206. Part of this increase was the result of an increased contribution to the Texas Statewide Emergency Services Retirement Fund and increased medical cost and protective clothing increases. The increase in the police department is also fueled by personal services, general salary adjustments and increased computer lease fees. 7 The Planning Department 9.68% increase is due -to personal services general salary.adjustments. Public Works 12% decrease is due to outsourcing commercial garbage. General Fund Balance. The planned and budgeted decrease in fund balance is $539,501 leaving an ending fund balance of $7,127,919., The current fund balance is equivalent to 99 days of working expenditures and is within the targeted goal of 90 to 120 days of working expenditures established for this fund. Special Revenue Funds. The City has four (4) special revenue funds. Each will be discussed below.. Economic Development Fund - The economic development fund accounts for funds specifically set aside to encourage development in the . area. The fund balance decreased by $298,637 leaving an ending balance of $723,474. Hotel Tax Fund - The hotel tax fund accounts for revenues from the Hotel/Motel Occupancy Tax and related expenses. The fund balance at year-end was $637,279, an increase of $124,014 from the previous year. Section 4B Sales Tax Fund - This fund accounts for the '/2 cent sales tax dedicated to certain economic and infrastructure projects. The fund balance increased by $692,616 with a year-end balance of $2,349,529. Tax Increment Reinvestment Zone - The fund accounts for revenues and related expenditures that benefit the City of La Porte. The fund balance increased by $24,912 with a year-end fund balance of $140,505. Debt Service Fund Balance. The fund balance of the debt service increased by $286,542 leaving an ending fund balance of $1,589,610. The current fund balance is equivalent to 240 days of working expenditures and is also well above the targeted goal of 60 to 90 days of working expenditures established for this fund. Enterprise Operations. The City has four (4) enterprise operations over which the City has direct control and one (1), which they oversee. Each will be discussed below. Utility Fund - The utility fund accounts for the provision of water and treatment of wastewater for its customers. Working capital decreased by $489,349 to $5,565,623. The projected end of year working capital balance is approximately 82.41/o or 300 days of budgeted expenses. This is above our targeted working capital balance of 90 to 120 days. ,Airport Fund - The City owns and operates a municipal airport. The only normal expenses of the airport are routine maintenance and they are recovered through fees charged to fixed base operators located at the airport. Under Federal Aviation Administration (FAA) requirements, excess revenues -of the airport are to remain in the Airport Fund for future improvements. Sylvan Beach Fund - The City leased the Sylvan Beach Convention Center from the county for a 40-year term starting in 1983. The City proceeded to make approximately $300,000 in capital improvements. The City has been very pleased with this operation, which -now has a working capital balance of $168,966. Golf Course Fund - The City owns and operates a municipal golf course, which was built with general obligation bond proceeds in 1988. The working capital in the fund decreased $32,931 to $173,511. 8 La Porte Area Water Authority Fund - The La Porte Area Water Authority was created by the Texas State ' Legislature in 1981 to assist the Bayshore Area in its conversion to surface water, which was mandated by the Harris Galveston County Subsidence District: The purpose of the Authority is to provide potable surface water to three customers; the cities of La Porte, Shoreacres and Morgan's Point. The Authority accomplished its ' mission b y p articipating i n t he c onstruction o f a w ater p urification p lant a nd the c onstruction o f'a 17-mile transmission system. The City of La Porte started receiving water from the Authority in 1991 and is its largest customer, utilizing 85.66% of its production. The Authority ended the year with a working capital balance of ' $254,073. The Authority has contracted its managerial and operational services to the City of La Porte. Internal Service Funds. The City has three internal service funds, which it utilizes to provide services to its internal operations. Each will be discussed below. Motor Pool Fund - The motor pool fund is used to account for the revenues and cost of providing vehicles of all types to City departments. This fund provides for maintenance, fuel, lubrication and replacement for these vehicles. The working capital for this fund at the end of the year was $2,080,218. Because this fund contains amounts necessary to replace vehicles, the goal of the working capital balance is to have sufficient funds to replace vehicles once they have reached their expected useful life. The City believes this goal is being met. Computer Fund - The computer fund is used to account for the maintenance and replacement of computer systems, including personal computers and specialized systems such as meter reading devices and fleet fueling. ' The City recently replaced its financial and administrative systems and has replaced its police system hardware/software. This fund is designed to gather sufficient funds to replace these systems once they have reached their expected useful life. The fund ended the year with a working capital of $293,296. Employee Health Services Fund — At October 1, 1997, the City created this fund to account for the cost of providing health insurance to employees, employee dependents, retirees and others eligible under the plan. ' This fund ended the year with a working capital balance of $1,421,200. Debt A dministration. T he debt issues outstanding at the end of t he year included $16,310,000 in general obligation bonds and $10,125,001 in revenue bonds. The City currently has an Aa3 rating from Moody's 1 Investor Service and an A+ from Standard & Poor's Corporation on its general obligation bond issues. Current state statutes limit total tax rate, including general obligation bond indebtedness to $2.50 per $100 appraised valuation. Debt per capita at September 30, 2002 was $495. ' Cash Management. Cash temporarily idle during the year was invested in demand deposits and obligations of the U. S. Treasury. For the fiscal year the City earned interest revenue of $1,096,700 on all investments. The ' average yield on investments was 2.63% for the fiscal year. The City's policy is to minimize credit'and market risks while maintaining a competitive yield on its portfolio. ' Accordingly, deposits were either insured by federal depository insurance or collateralized. All collateral on deposits was held either by the City; its agent or a financial institution's trust department in the City's name. 9 OTHER INFORMATION Independent Audit. State statutes require an' annual audit by independent certified public accountants. The ■ accounting firm of Null, Lairson, P.C. was selected by the City's audit committee. The auditors' report on the general purpose financial statements and combining and individual fund statements and schedules are included ' in the financial section of this report. Awards. 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, 2001. This was the twenty-first 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 cur -rent 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. — Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the efficient and dedicated services of the staff of the finance department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the Mayor and CityCouncil, preparation of this report would not have been possible. Sincerely,. Debra Brooks Feazelle 4thixander City Manager Director of Finance 10 1 � � 1 . Certificate of 1 • Achievement i for Excellence in Financial. Reporting i Presented to 1 City of La Porte, 1 Texas ' For its Comprehensive Annual Financial Report 1 for the Fiscal Year Ended September 30, 2001 A Certificate of Achievement for Excellence in Financial 1 Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement 1 systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. 44" ta� President ' Executive Director . • Mayor Mayor Pro Tem Councilperson Councilperson Councilperson Councilperson Councilperson Councilperson Councilperson City Manager Assistant City Manager City Secretary City Attorney Director of Finance Director of Public Works Director of Parks and Recreation Director of Planning Director of Administrative Services Chief of Police Director of Emergency Services CITY OF LA PORTE, TEXAS Principal City Officials March 10, 2003 . Norman L. Malone Howard Ebow Chuck Engelken Barry Beasley Peter Griffiths Michael Mosteit James Warren Charlie Young Bruce Meismer Debra Brooks Feazelle John Joerns Martha Gillett Knox Askins Cynthia B. Alexander Steve Gillett Stephen Barr Doug Kneupper Carol Buttler Richard Reff Joe Sease 12 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 • 0 CITY OF LA PORTE ORGANIZATION CHART VOTERS MAYOR & COUNCIL CITY SECRETARY CITY MANAGER MUNICIPAL JUDGE I I I CITY ATTORNEY ASSISTANT CITY MAIWAGFX f'?f'!%!='jf f f, EMERGENCY SERVICES )f19�[flf.ff�S6SfffS` fyfj�r; f /dflf!/ff�/rff�/fljf}! ffJff�(�f�rf/r�ft r•• `i!J jrt? � �tlfs lrf fff��l�'f CAI IMPR trf f POLICE PL ` rJ ....R. NISTRATIVE ERVICES PUBLIC V�"� ' �. $� s� 4- FINANCE PARKS AND RECREATION GOLF COURSE 13 t F O L LLL LLLLL LLLLLLL LLLLLLLL LLLLLLLLL LLLLLLLLL LLLLLL LLLLLL Ift LLLLL LLLLL LL LLLLLLLLLMom LLLLLLLLL L OLL , LLLL LLLLLL O LLLLLLL LLLLLLLL LLLLLLLLL LLLLLLLLLL LLLL r r r rr m r r r r r r r rr r r r r r r r r r r r r r r r r r r r r r r r r I _ � r r r r r r r r r r r r r r r r f TEXAS / 77777771 11 1 -1 1 ii 1 FINANCIAL SECTION i •� ' 11 Greenway Plaza, Suite 1515 Null lairsol 402 20* Street Houston, TX 77046 I Galveston, TX 77550 (713) 621-1515 CERI KZWACCDLNLAJVTS (409)762.8380 Fax: (713) 621-1570 PROFE5S1 I&C ATION Fax: (409) 762-1749 1 Independent Auditors' Report 11 1 To the Honorable Mayor and Members of the City Council City of La Porte, Texas 1 We have audited the accompanying general purpose financial statements of the City of La Porte, Texas, as of and for the year ended September 30, 2002. These general purpose financial 1 statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 1 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 general purpose -financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our ' opinion. In our opinion, the general purpose financial statements referred to above.present fairly, in all 1 material respects, the financial position of the City of La Porte, Texas, as of September 30, 2002, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of 1 America. In accordance with Government Auditing Standards, we have also issued our report dated ' February 19, 2003, on our consideration of City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report 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. 16 To the Honorable Mayor and Members of the City Council City of LaPorte, Texas Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial ' statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the City's general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general ' purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. The Required Pension System Supplementary Information is not a required part of the general ' purpose financial statements but is supplementary information required by the Government Accounting Standards Board. We have applied certain limited procedures, which consisted ' principally of inquiries of management regarding the methods of measurement and presentation of the additional information. However, we did not audit the information and express no opinion on it. Houston, Texas _ February 19, 2003 17 • GENERAL PURPOSE FINANCIAL STATEMENTS • City of LaPorte, Texas • Combined Balance Sheet All Fund Types and Account Groups September 30, 2002 (With comparative totals for 2001) Assets: Cash and cash equivalents Investments Receivables, net of allowance for uncollectibles . Property taxes, delinquent Utilities Accrued Interest Other Due from other funds Materials and supplies inventories, at cost Restricted assets: Cash and cash equivalents restricted for customer utilities deposits Other Investments restricted for: Other Current debt service Deposits with others Land, buildings and equipment, net of accumulated depreciation Other Debits: Amount available in Debt Service Fund Amount to be provided for retirement of of general long-term debt and other long-term liabilities Total Assets and Other Debits Governmental Fund Types Special Debt Capital General Revenue Service Projects Fund Funds Fund Funds $ 6,789,643 $ 2,994,033 $ 1,302;011 $ 13,013,293 1,669,419 716,446 312,178 1,667,993 590,850 174,135 22,816 9,791 4,267 22,797 2,360,276 150,821 203,421. 74;843 $ 11,711,268 $ 3,871;091 $ 1,792,591 $ 14,704,083 See Notes to Financial Statements. 18 Exhibit A-] Page 1 of 2 1 ' Proprietary Fund Types Account Groups Totals (Memorandum Only) General General Enterprise Internal Service Fixed Long -Term ' Fund Funds Assets Debt 2002 2001 ' $ 5,129,594 $ 3,201,350 $ $ $ 32,429,924 $ 26,293,720 1,317,030 764,389 6,447,455 10,619,853 764,985 940,895 ' 939,335 939,335 742,447 22,775 10,447 92,893 63,994 2,511,097 2,831,225 ' 269,527 472,948 164,982 4,540 46,904 126,287 112,370 ' 368,730 368,730 - 419,120 6,253 1,607,272 1,607,272 1,613,978 ' 625,000 625,000 625,000 ' 36,443,495 5,237,142 39,332,989 81,013,626 78,656,128 ' 1,589,610 1,589,610 1,303,068 ' 16,932,387 16,932,387 13,442,189 $ 46,727,298 $ 9,260,232 $ 39,332,989 $ 18,521,997 $ 145,921,549 $ 137,835,222 ' 19 .• City of LaPorte, Texas • Liabilities, Fund Equity, and Other Credits Liabilities: Combined Balance Sheet All Fund Types and Account Groups September 30, 2002 Accounts payable Accrued payroll Other current liabilities Due to others Due to other Funds Retainage payable Current liabilities payable from restricted assets: _ Allowance for Restricted Cash Current portion of revenue bonds Accrued interest Customer utilities deposits Deferred revenues General obligation bonds Revenue bonds, net of current portion Certificate of Obligations Accrued employee separation pay Total Liabilities Governmental Fund Types Special - Debt Capital General Revenue Service Projects $ 1,879,073 586,580 2,017;696 $ 20,304 $ $ 732,037 45,795 147,374 28,846 174,135 100,000 4,583,349 20,304 202,981 925,206 Fund Equity and Other Credits Investment in general fixed assets Contributed capital Retained earnings Reserved fund balances: Investments in inventory 74,843' Retirement of long-term debt 1,589,610 Reserved for encumbrances 29,810 Unreserved fund balances: Designated for construction 13,778,877 Undesignated, unreserved fund balance 7,023,266 3,850,787 Total Fund Equity and Other Credits 7,127,919 3,850,787 1,589,610 13,778,877 Total Liabilities, Fund Equity, and Other Credits . $ 11,711,268 $ 3,871,091 $ 1,792,591 $ 14,704,083 See Notes to Financial Statements. 20 Exhibit A-1 ' Page 2 of 2 . Totals Proprietary Fund Types Account Groups (Memorandum Only) '. General General Enterprise Internal Service Fixed Long -Term ' Funds Funds Assets Debt 2002 2001 ' $ 505,817 $ 206,449 $ $ $ 3,343,680 $ 2,273,450 108,320 21,927 716,827 661,485 80,103 80,103 55,481 ' 45,795 45,795 472,948 472,948 164,982 147,374 274,068 ' 1,010,000 1,010,000 995,000 21,479 50,325 23,741 416,847 416,847 419,120 ' 2,191,831 2,081,385 13,610,000 13,610,000 9,745,000 9,067,536 9,067,536 10,061,715 ' 2,700,000 2,700,000 2,850,000 332,494 98,745 2,211,997 2,743,236 2,677,489 18,521,997 36,596,502 32,328,711 12,015,544 327,121 39,332,989 39,332,989 36,994,253 ' 12,345,100 336,658 12,681,758 13,490,992 22,366,655 8,596,453 30,963,108 30,977,681 74,843 58,827 13589,610 1,303,068 29,810 69,518 13,778,877 11,765,217 10,874,053 10,846,955 ' 34,711,755 8,933,111 39,332,989 •109,325,048 105,506,511 ' $ 46,727,298 $ 9,260,232 $ 39,332,989 $ 18,521,997 $ 145,921,549 $ 137,835,222 ' 21 • City of La Porte, Texas • Combined Statement of Revenues, Expenditures, and Changes in Fund Balance All Governmental Fund Types Year Ended September 30, 2002 (With comparative totals for 2001) 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 Fire Police Administration Finance Public Works Parks and recreation Planning Debt Service: Principal retirements Interest and fiscal charges Capital Outlay. Total Expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds from Bond Sale Total other financing_ sources (uses) Excess (deficiency) of revenues and other financing General Special Fund Revenue Funds $ 8,721,564 1,650,349 1,908,261 6,701,082 41,322 238,535 . 614,534 2,108,739 385,722 301,538 143,668 22,815,314 3,198,856 6,966,827 2,311,125 1614,026 4,187,428 3,297,865 1,224,022 22,800,149 15,165 1,350,000 (1,904,664) (554,664) sources over expenditures and other uses (539,499) Fund balances, beginning of year (As restated) 7,667,418 Fund balances, end of year $ 7,127,919 See Notes to Financial Statements. $ 41,443 954,130 268,626 96,419 1,360,618 145,804 145,804 1,214,814 8,641 (680,550) (671,909) 542,905 3,307,882 $ 3,850,787 22 • Exhibit A-2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Debt Service Capital Fund Projects Funds $ 2,056,777 $ 191,459 46,291 2,294,527 1,685,000 634,535 2,319,535 (25,008) 311,550 311,550 286,542 1,303,068 $ 1,589,610 765,838 20,748 304,550 1,091,136 4,077,477 4,077,477 (2,986,341) 200,000 (600,000) 5,400,000 5,000,000 2,013,659 11,765,218 $ 13,778,877 23 Totals (Memorandum Only) 2002 2001 $ 10,819,784 $ 10,186,763 1,650,349 1,835,121 2,862,391 2,866,496 7,658,379 7,207,393 309,948 310,518 238,535 262,010 614,534 561,547 2,129,487 2,923,504 385,722 673,105 748,798 1,626,693 143,668 119,228 27,561,595 28,572,178 3,198,856 6,966,827 2,456,929 1,614,026 4,187,428 3,297,865 1,224,022 1,685,000 634,535 4,077,477 29,342,965 (1,781,370) 1,870,191 (3,185,214) 5,400,000 4,084,977 2,303,607 24,043,586 $ 26,347,193 2,953,870 6,410,450 2,486,614 1,630,809 4,766,586 3,058,199 1,114,689 1,775,000 729,932 3,032,461 27,958,611 613,767 1,974,671 (1,849,671) 125,000 738,767 23,304,818 $ 24,043,585 0 City of La Porte, Texas • Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget.(GAAP Basis) and Actual General, Special Revenue, and Debt Service Funds Year Ended September 30, 2002 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: Fire Police r Administration Finance Public Works Parks and recreation Planning Debt Service: Principal retirements Interest and fiscal charges Capital Outlay Total Expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other uses Fund balances, beginning of year (As Restated) Fund balances, end of year : General Fund Variance Favorable Budget Actual (Unfavorable) $ 8,330,000 $ 8,721,564 $ 391,564 1,645,000 1,650,349 5,349 1,775,000 1,908,261 133,261 6,431,250 6,701,082 269,832 44,000 41,322 (2,678) 298,375 238,535 (59,840) 465,000 614,534 149,534 2,156,650 2,108,739 (47,911) 305,000 385,722 80,722 600,000 301,538 (298,462) 31,073 143,668 112,595 22,081,348 22,815,314 733,966 3,249,604 3,198,856 50,748 6,984,881 6,966,827 18,054 2,373,929 2,311,125 .62,804 1,722,503 1,614,026 108,477 4,234,213 4,187,428 46,785 3,328,719 3,297,865 30,854 1,243,619 1,224,022 19,596 23,137,468 22,800,149 337,318 (1,056,120) 15,165 1,071,285 1,350,000 1,350,000 (1,709,274) (1,904,664) (195,390) (359,274) (554,664) (195,390) (1,415,394) (539,499) 875,895 7,667,418 7,667,418 $ 6,252,024 $ 7,127,919 $ 875,895 See Notes to Financial Statements.. 24 Exhibit A-3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Annually Budgeted Special Revenue Funds Debt Service Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 20,000 $ 41,443 $ 21,443 $ 1,964,950 $ 2,056,777 $ 91,827 900,000 954,130 54,130 250,000 268,626 18,626 183,750 191,459 144,000 96,419 (47,581) 47,754 46,291 1,314,000 1,360,618 46,618 2,196,454 2,294,527 417,990 145,804 272,186 7,709 (1,463) 98,072 1,685,000 1,685,000 634,538 634,535 3 272,186 2,319,535 3 2,319,538 145,804 417,990 896,010 1,214,814 318,805 (123,084) (25,008) 98,075 8,641 8,641 311,550 311,550 (680,550) (680,550) (680,550) (671,909) 8,641 311,550 311,550 215,460 542,905 327,445 188,466 286,542 98,075 3,307,882 3,307,882 1,303,068 1,303,068 $ 3,523,342 $ 3,850,787 $ 327,445 $ 1,491,534 $ 1,589,610 $ 98,075 25 1 IOperating Revenues: User Fees • City of La Porte, Texas • Exhibit A-4 Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types For the Year Ended September 30, 2002 (With comparative totals for 2001) Totals Proprietary Fund Types Memorandum Only Internal Enterprise Service 2002 2001 $ 7,997,508 $ 4,157,523 $ 12,155,031 11,176,329 Operating expenses: Personal Services 3,101,303 636,800 3,738,103 3,617,448 Supplies 291,252 194,136 485,388 521,952 Other Services and Charges 3,750,244 3,089,972 6,840,216 6,666,119 ' Depreciation 1,963,462 1,007,932 2,971,394 2,670,512 Total Operating Expense 9,106,261 4,928,840 14,035,101 13,476,030 ' Operating Income (Loss) (1,108,753) (771,317) (1,880,070) (2,299,701) Nonoperating Income: ' Contribution from Participant Interest Revenue 258,434 89,468 347,902 1,069,790 Debt Service Billings 780,288 780,288 317,627 ' Sale of Capacity Rights (197,791) . (197,791) Interest Expense and Fiscal Charges (551,239) (551,239) (601,153) ' Interest Billings to Participants 432,372 Loss on sale of equipment (284,061) (231,297) (515,358) (7,321) Net nonoperating revenues 5,631 (141,829) (136,198) 1,211,315 Income (Loss) before operating transfers (1,103,122) (913,146) (2,016,268) (1,088,386) 'Operating transfers in 1,941,027 1,896,023 3,837,050 2,749,913 Operating transfers out (1,500,000) (1,022,027) (2,522,027) (2,874,913) ' Net Income (Loss) (662,095) (39,150) (701,245) (1,213,386) ' Add depreciation on buildings, vehicle and equipment acquired with contributions 999,661 48,478 1,048,139 843,096 Less fixed assets acquired by contributions (361,467) (361,467) (317,627) 1 Increase (Decrease) in Retained Earnings (23,901) 9,328 (14,573) (687,917) ' Retained Earnings, Beginning of Year, as restated 22,390,555 8,587,125 30,977,680 31,665,597 Retained Earnings, End of Year $ 22,366,654 $ 8,596,453 $ 30,963,107 30,977,680 ' See Notes to Financial Statements. 27 • City of La Porte, Texas Combined Statements of Cash Flows All Proprietary Fund Types For the Years Ended September 30, 2002 (With comparative totals for 2001) Cash Flows from Operating Activities: Cash received from user fees Cash payments to suppliers for goods and services Cash payments for personal services Net Cash provided by Operating Activities Cash Flows from noncapital financing activities: Contribution from Participant Due from other Funds Operating transfers in from other funds Rebate to member cities Operating transfers out to other funds Net cash provided (used) by noncapital financing activities Cash flows from capital and related activities: Accrued interest on bonds received at date of sale Payments received from participants Payments for capital acquisitions Proceeds from sale of assets - Contributions from participants Principal payments on revenue bonds Interest paid on debt Net cash used for capital and related financing activities Cash flows from Investing Activities: Interest on Investments Investment purchased Investments Sold Net Cash Provided (used) by Investing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year -Proprietary Fund Types Internal Enterprise Service Exhibit A-5 Page 1 of 2 Totals Memorandum Only 2002 2001 $ 7,800,620 $ 4,157,523 $ 11,958,143 $ 11,505,432 (3,726,658) (3,136,778) (6,863,436) (7,341,079) (3,100,187) (636,448) (3,736,635) (3,614,746) — 973,775 384,297 1,358,072 549,607 34,216 . (64,660) (30,444) 64,660 1,941,027 1,941,027 2,749,913 (197,791) (197,791) (1,500,000) 873,996 (626,004) (2,874,913) 277,452 809,336 1,086,788 (60,340) 780,288 780,288 750,000 (2,397,409) (1,214,174) (3,611,583) (2,268,981) (35,793) (2,912,700) (995,000) (995,000) (660,000) (554,858) (554,858) (602,854) (3,166,979) (1,214,174) (4,381,153) (5,730,328) 254,981 86,986 341,967 1,209,485 (170,803) (170,803) 1,268,433 716,609 1,985,042 8,097,060 1,523,414 632,792 2,156,206 9,306,545 (392,338) 612,251 219,913 4,065,484 5,890,662 2,589,099 8,479,761 4,414,276 $ 5,498,324 $-3,20.1,350 $ 8,699,674 $ 8,479,761 28 City of La Porte, Texas Combined Statements of Cash Flows All Proprietary Fund Types For the Years Ended September 30, 2002 (With comparative totals for 2001) Reconciliation of cash and cash equivalents to amounts reported on balance sheet Cash and Cash equivalents Cash and Cash equivalents- restricted Total cash and cash equivalents Reconciliation of Operating Income to Net Cash Provided by operating activities Operating income (loss) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in accrued payroll (Increase) decrease in accounts payable (Increase) decrease in current liabilities (Increase) decrease in customer utility deposits (Increase) decrease in inventories (Increase)decrease in accrued interest Increase (decrease) in due to componet unit (Increase) decrease in accrued employee separation pay Total adjustments Net cash provided by operating activities Fair value change in investments Proprietary Fund Types Internal Enterprise Service Exhibit A-5 Page 2 of 2 Totals Memorandum Only 2002 2001 $ 5;129,594 $ 3,201,350 $ 8,330,944 $ 8,054,388 368,730 368,730 425,373 $ 5,498,324 $ 3,201,350 $ 8,699,674 $ 8,479,761 (1,108,753) $ (771,317) $ (1,890,070) $ (2,498,160) 1,963,462 1,007,932 2,971,394 2,670,512 (196,888) 198,460 1,572 329,104 (1,189) (1,350) (2,539) 10,652 123,285 (53,230) 70,055 36,640 24,622 24,622 11,306 (2,273) (2,273) 37,902 2,100 2,100 6,491 169,205 2,305 1,702 4,007 (7,950) 2,082,529 1,155,614 3,068,938 3,047,767 $ 973,776 $ 384,297 $ 1,358,073 $ 549,607 Noncash capital and investing activities $ (24,739) $ See Notes to Financial Statements. (7,864) $ (32,603) $ 138,297 29 N F L O LLLLL LL A LLLLL LLLL O LLLLLLLL LLLLLL LLLLLLLLL LLLLLLL LLLLLLLLLL LLLLLLLL LLLLLLLLLLLLLLLLLL LLLLLL LLLLLLLLLL LLLLLLLLL Ift LLLLL r r LLLLL LL LLLLLLLLLL _ LLLLLLLLL r r r r r r r r r r r r r r r r rr r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r rrrrrr r r r r r r r r r r r r TEX AS. z D zz 00 �O m� mm z cn ' NO& TO FINANCIAL STATEMENTS (Coed) ' Note 1 Summary of Significant Accounting Policies The City of La Porte, Texas (the City), was incorporated on August 10, 1892, and operates under a Council - Manager form of government. -The major operations of the City are police and fire protection, emergency medical services, operation of parks and library, maintenance of streets and drainage systems, and commercial and residential solid waste collection and disposal. In addition, the City owns ' and operates enterprise activities providing water and wastewater service, a community pavilion, municipal golf course, and an airport. The accounting and reporting policies of the City, as reflected in the accompanying general purpose ' financial statements, conform tq 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 ' Accounting Standards Board, The following represent the more significant accounting and reporting policies and practices used by the City. ' (a) Reporting Entity The combined financial statements of the City include all funds and operations, which are controlled by ' or dependent upon the City. The City, with its elected governing body, is considered a primary government. As required by generally accepted accounting principles, the general purpose financial statements present the City and its component units, the La Porte Area Water Authority (the Authority), the Tax Increment Reinvestment Zone (T1RZ) and Section 4B Sales Tax. All component units have ' been included as blended component units in the City's reporting entity because of the significance of their operational and financial relationships with the City. The Authority is governed by a five -member board appointed by the City. Council. Although it is a legally separate entity, the Authority provides services almost exclusively for the City's water operations, and is in substance a part of the City's primary operations. The Authority was created by the ' City to finance the operations involved in obtaining surface water supplies and converting these supplies to potable water. This water is sold primarily to the City of La Porte (86%) with the remainder being sold to other neighboring political subdivisions. The operations of the Authority are reported as an Enterprise Fund of the City. Complete financial statements of the La Porte Area Water Authority can ' be obtained through the City of La Porte. ' The Taxing Increment Reinvestment Zone (the zone) is governed by a nine -member board appointed by the City Council. The zone provides benefits exclusively for the City through reinvestment financing of ad valorem taxes, which are utilized for capital improvements for the City of La Porte. The operations of the zone are reported in the Special Revenue Funds of the City. ' The Section B Sales Tax is governed by a seven member board appointed by City Council and it 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 operations of the Section 4B Sales Tax are reported in the Special Revenue Funds of the City. (b) Fund Accounting 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 as shown on the following page. 31 NOOTO FINANCIAL STATEMENTS (Conl&d) Governmental Fund Types Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use and balances of the City's expendable financial resources and the related liabilities (except those accounted for in Proprietary Funds) are accounted for through Governmental Funds. The measurement focus is based upon determination of changes in financial position, rather than upon net income determination. The following are the City's governmental fund types: General Fund - The General Fund is used to account for all financial resources applicable to the general operations of the City except those required to be accounted for in another fund. SRecial Revenue Fund — The Special Revenue Fund is used to account for revenue sources that are legally restricted to expenditure for specific purposes (not including expendable trusts or major capital projects). , Debt Service Fund - The Debt Service.Fund is used to account for the accumulation of resources for, and the payment of, general. long-term debt principal, interest and related costs. Capital Projects Funds - The Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). Proprietary Fund Types Proprietary Funds are used to account for the City's ongoing activities, which are similar to those of organizations in the private sector. The measurement focus is based upon determination of net income. The following are the City's proprietary fund types: Enterprise Funds - The.Enterprise Funds are used to account for operations that provide water and wastewater services, airport services, and recreation to citizens. These services are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs ( expenses, including depreciation) .o f providing goods or services to the general public on a continuing basis will be financed or recovered primarily through user charges. Internal Service Funds - The Internal Service. Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City or to other governments on a cost -reimbursement basis. Account Groups , Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term debt: The following are the City's account groups: General Fixed Assets - This -account group is established to account for all fixed assets of the City, except those accounted for in the Proprietary Funds. General Long -Term Debt - This account group -is established to account for all long-term debt of the City except long-term debt accounted for in the Proprietary, Funds, including general obligation bonds and certificates of obligation. Further, this account group is used to account for accrued liabilities for vacation and personal leave of Governmental Funds, which are not expected to be liquidated -with expendable, available financial resources. 32 ' NO* TO FINANCIAL STATEMENTS (Coined) 11 ' (c) Basis of Accounting ' The basis of accounting is the method by which revenues and expenditures or expenses are recognized in the accounting system and reported in the financial statements. ' The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental fund types are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on ' the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets. ' All proprietary fund types are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e. total net assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (e.g. ' revenues) and decreases (e.g. expenses) in total net assets. The m odified a ccrual b asis o f a ccounting i s u sed f or g ovemmental fund t ypes. Under t he modified ' accrual basis of accounting, revenues are recognized when they become susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter t o b e u sed t o p ay 1 iabilities o f t he c urrent p eriod. M ost revenue s ources a re r ecorded a s ' revenues when received in cash because they are generally not measurable until actually received. Interest earnings are accrued because they are measurable and available. (See Note 3 for property tax revenue recognition policy.) Deferred revenues are amounts, which have been deemed measurable but not available. Under the modified accrual basis of accounting, expenditures (other than interest on long-term debt) are ' recorded when the related fund liability is incurred, if measurable. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are ' recognized when the .obligations are expected to be liquidated with expendable available financial resources. All proprietary funds are accounted for using the accrual basis of accounting. Revenues are recognized ' when t hey a re a arned a nd a xpenses w hen t hey a re i ncurred. U nbilled w ater a nd w astewater u tility service receivables are accrued as revenues and reflected in the financial statements. Proprietary fund types follow GAAP prescribed by the Governmental Accounting Standards Board (GASB) and all ' Financial Accounting Standards Board's standards issued prior to November 30, 1989. 33 NbVTO FINANCIAL STATEMENTS (Con*d) (d) Budget 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 project funds. 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. The City used 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 amends 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 Enterprise 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 Enterprise 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. T . 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. 34 ' NCV TO FINANCIAL STATEMENTS (Coed) (e) Materials and Supplies Inventories ' Inventories 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. ' (1) Cash and Cash Equivalents Cash includes amounts in demand deposits, short-term investments, which mature within ninety days of ' the fiscal year end, and various petty cash funds. The short-term investments are stated at cost or amortized cost, which approximate fair value. The short-term investments consist of U.S. Treasury Bills, and deposits in the Texas Local Government 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 maturity of three months or less when purchased to be cash equivalents. ' The City has implemented GASB Statement No. 31, which establishes accounting and reporting standards for all of the City's investments. Implementation of this statement had no material effect on the results of operations of the City. 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) 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 fiords are reported as additions to, or reductions of, the fund balance of Governmental Funds. Transfers of equity to Proprietary Funds are treated as t contributed c apital a nd s uch t ransfers from P roprietary F unds a re r eported a s r eductions o f r etained 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. 1 35 NOTom FINANCIAL STATEMENTS (Conted) • (h) Restricted Assets Funds set aside for payment of Enterprise Fund revenue bonds are classified as restricted assets since their use is limited by applicable bond indentures. (i) Land, Buildings and Equipment ' General Fixed Assets General fixed assets have been acquired or constructed for general governmental purposes. Assets are recorded as expenditures in the Governmental Funds and capitalized at cost in the General Fixed Assets Account Group. Gifts or contributions of general fixed assets are recorded at estimated fair market value upon receipt. Public domain (infrastructure) general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs_ -and gutters, streets and sidewalks, _ drainage systems, and lighting systems are capitalized as general fixed assets. No depreciation has been, provided on general fixed assets nor has interest been capitalized. - Land, buildings and equipment which are paid for with general obligation bond proceeds (capital projects) for ultimate use by a proprietary fund are reported in the General Fixed Assets Account Group during construction. When such assets are placed in service, they are removed from the General Fixed Assets Account Group and recorded in the appropriate Proprietary Fund as contributions from the municipality. Proprietary Funds The land, buildings and equipment owned by the proprietary funds are recorded at cost or at estimated fair market value for contributed assets. Interest cost during construction is capitalized when the effects of capitalization materially impact the financial statements. During the year ended September 30, 2002, no interest costs were capitalized in the proprietary funds. Depreciation of buildings and equipment is provided by the straight-line method over the following estimated useful lives: Buildings and improvements 20 years Utility system 20 - 40 years Equipment 4 - 10 years Contributions of funds from Federal, State or local grants for the purpose of purchasing or improving land, buildings and equipment are recorded as contributed capital when they are earned and become measurable. Depreciation on contributed assets is recorded as an expense in the statement of operations and then applied against the related contributed capital. The costs of normal maintenance and repairs are charged to operations as incurred. Improvements which extend the useful lives of the assets are capitalized. 36 ' NC& TO FINANCIAL STATEMENTS (Co*ed) CIS 1 a) Long-term Liabilities ' Long-term liabilities that will be financed from governmental funds are accounted for in the General Long -Term Debt A ccount Group. T he g eneral 1 ong-term d ebt i s s ecured b y t he g eneral c redit a nd taxing powers of the City. Long-term liabilities of all Proprietary Funds consist of bonds, notes and other long-term liabilities directly related to and expected to be paid entirely by the proprietary funds. These liabilities are included in the accounts of such funds. (k) Accrued Employee Separation Pay 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 portion of the governmental fund type liability is recorded in the ' governmental fund type with the remaining liability being recorded in the General Long -Term Debt Account Group because payment of this liability will not be made with expendable available financial resources. 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: o Vacation - Employees eam 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) ' if they have completed 12 consecutive months of service with the City. o Sick Leave - Employees earn .1.25 days of sick leave for each month of service. Upon separation, employees hired prior to November 19, 1991 are paid for accumulated sick leave, ' subject to a limit of 480 hours for regular employees and 720 hours for civil service employees. 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 60 days. 0) Fund Balance Reserved Fund Balance ' Reserved fund balance is that portion of fund equity, which has been legally segregated for specific purposes. The City has provided the following reserves: ' Invento - Segregates a ortion of fund balance to indicate that inventory does not represent rvp ry eP available, expendable resources even though they are components of current assets. 1 37 NOAkO FINANCIAL STATEMENTS (Contod) ' Debt Service - Segregates a portion of fund balance for debt service resources legally restricted to the payment of long-term debt principal and interest amounts maturing in future years. Designated Fund Balance Designated fund balance is that portion of fund equity for which the City has made tentative plans. Undesignated Fund Balance ' Undesignated fund balance is that portion of fund equity, which is available for budgeting in future periods.. (m) Total Columns on Combined Statements Total columns presented in the Combined Financial Statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not represent financial position, results of operations, or changes in cash flows in conformity with generally accepted -accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2 Cash, Cash Equivalents and Investments Cash and Cash Equivalents The carrying amount of the City's deposits with financial institutions at September 30, 2002, was $378,811 and the bank balance was $936,385. All of the bank balance was covered by federal depository insurance or by collateral held by the City's agent held in the City's name. Short-term deposits in the Texas Local Government Investment Pool (TexPool), and the Local Government Investment Cooperative (LOGIC) were $32,390,987 at September 30, 2002 Investments The City's deposits are categorized as (1) either insured or registered or for which the securities are held by the City or its agent in the City's name, (2) uninsured and unregistered for which the securities are held by the counterparty's trust department or agent in the City's name or (3) uninsured and unregistered for which the securities are held by the counterparty, or by its trust department or agent but not in the City's name. 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's investments consist of U.S. Government securities held in safekeeping by the City's agent bank in the City's name. The amortized cost of the City's temporary investments at September 30, 2002 was $8,633,074 and fair value was $8,679,731. Investments are normally held to maturity. A summary of the portfolio is as shown on the following page. 38 INCO TO FINANCIAL STATEMENTS (Cowed) ' Can�nng Amount U.S. Agencies $8,535,895 ' Derivative financial instruments 143,836 ' 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. The City has adopted GASB Statement No. 31 which establishes accounting and reporting standards for all the City's investments. In accordance statement No. 31, the City reports all investments at fair value, except for "money market investments" and 2a7- 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 1 imited to, adopting investment policies, ' appointing investment officers, overseeing the selection of investment managers, custodian banks, investment 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. ' Statutes of the State of Texas and policies mandated by the City Council authorize investment in obligations of the United States or its agencies and instrumentalities, certificates of deposit issued by local depository banks, direct obligations of the State of Texas or its agencies, prime domestic banker's acceptances, local government investment funds and other obligations that are authorized by the State's ' Public Funds Investment Act. ' Included within the City's portfolio are derivative financial instruments that were purchased in 1993 and 1994. These i nvestments are authorized by state law under a grandfather exemption. While these investments are subject to additional market risk, management believes the additional risk in light of the percentage of the entire investment portfolio (1.5%) does not expose the City to unreasonable risk. Note 3 Property Taxes ' The appraisal of property within the City is the responsibility of the Harris County Appraisal District (the Appraisal District). The Appraisal District is required under the Property Tax Code to appraise all property within the county on the basis of 100% of its market value. The value of real property within ' the Appraisal District must be reviewed every five years; however, the City may, at its own expense, require annual reviews of appraised values. The City may challenge appraised values established by the Appraisal District through various appeals and, if necessary, take legal action. Under this legislation, the City continues to set tax rates on City property. However, if the 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 a t 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 ' 39 NO*O FINANCIAL STATEMENTS (Contled) Assessor/Collector. Such taxes are applicable to the fiscal year in which they are levied and become delinquent with an enforceable lien on property on February 1 of the -subsequent calendar year. Property taxes, which are measurable (quantifiable) and available (collectible within the current period or soon enough thereafter to finance expenditures of the current period, which the City has defined as sixty. days after the fiscal year-end), are recognized as revenue in the year of levy. Property taxes, which are measurable but not available, are* recorded, net of estimated uncollectible amounts, as deferred revenues in the year of levy. Such deferred revenues are recognized as revenue in the fiscal year in which they become available. Property tax assessments included in deferred revenues at September 30, 2002 are as follows: General Fund $ 590,850 Debt Service Fund 174,135 Note 4 Accounts Receivable Accounts receivable with related allowances for doubtful accounts were as follows: General Debt Service Enterprise Accounts receivable $ 1,201,020 $ 353,414 $ 714,402 Less allowance for doubtful accounts 610170 (179,279) (38,979) $ UZI $ 4" Note 5 Land, Buildings and Equipment (a) General Fixed Assets A. suinmary of changes in the General Fixed Assets Account Group for the fiscal year ended September 30, 2002 follows: Transfers Transfers Balance or or Balance 10/01/01 additions diMositions 09/30/02 General fixed assets: Land $ 6,888,164 $ 296,180 $ 88,028 $ 7,096,316 Buildings 10,019,766 3,008,966 121,787 12,906,945 Improvements other than buildings 14,936,497 1,255,543 368,432 15,823,608 Equipment 1,992,832 100,261 1,088,767 1,004,326 Construction in progress 3,156,994 2,410,469 3,065,669 2,501,794 Total $36,22�2 $Z 47 2 $ $ 40 N* TO FINANCIAL STATEMENTS (Co*Zed) 1 1 1 1 1 1 1 1 1 f 1 1 1 1 1 (b) Proprietary Fund Type Fixed Assets A summary of land, buildings and equipment in the proprietary fund types at September 30, 2002, follows: - Internal Enterprise Service Land $ 2,350,478 $ Buildings and improvements 773,598 Improvements other than buildings 61,699,084 Vehicles and equipment 460,510 12,010,143 Construction in progress 216,277 65,499,947 12,010,143 Less accumulated depreciation (,29,056,452) (6,773,001) $ .443.495 $-23�7.142 Note 6 Summary of Long -Term Debt The following is a summary of changes in the General Long -Term Debt Account Group for the year ended September 30, 2002: Balance at 10/1/01 Additions General obligation bonds $ 12,595,000 $5,400,000 Accrued employee separation pay 2,150,257 61,740 Notes Payable Retirements $ 1,685,000 Balance at 9/30/02 $ 16,310,000 2,211,997 General obligation bonds consist of the following individual issues at September 30, 2002: 1990 General Obligation serial bonds, due in annual installments of $75,000 through March 15, 2003; interest at 7.0% to 8.5% 75,000 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% 3,060,000 41 N041TO FINANCIAL STATEMENTS (Cont*d) 1998 General Obligation serial bonds, due in annual installments of $125,000 through March 15, 2019; interest at 4.25% to 6.25% 2,125,000 2000 General Obligation serial bonds, due in annual installments of $150,060 through March 15, 2010, changing to $175,000 through March 15, 2020, interest at 5.00% to 7.00% 2,950,000 Certificates of Obligation, due in annual installments of $150,000 through March 15, 2020, interest at 5.00% to 7.00% . 2,700,000 Certificates of Obligation, due in annual installments Of $270,000 through March 15, 2025, interest at 4.25% to 5.00% - 5,400,000 16,310,000 The following is a summary of changes in the Proprietary Funds revenue bonds payable for the year ended September 30, 2002: - . Balance at October 1, 2001 $ 11,120,000 Deletions - debt retired (995,000) Balance at September 30, 2002 $ 10,125,000 Revenue bonds consist of the following individual issues at September 30, 2002: Waterworks and Sewer System Revenue Bonds, Series.1990, due in annual installments of $100,000 through March 15, 2003; interest at 7% to 7.5% $ 100,000 La Porte Area Water Authority Contract Revenue Refunding Bonds, Series 1999 due in annual payments through March 15, 2017; interest at 4.75% 5.75% 7,710,000 Waterworks and Sewer System Refunding Revenue Bonds, Series 1994, due in annual installments of $95,000 to $455,000 through March 15, 2006; interest at 4.4% to 5.25% 1,440,000 Waterworks and Sewer System Revenue Bonds, Series 1998, due in annual installments of $125,000 through March 15, 2009, interest at 4.35% to 6.2% 875,000 Total Revenue Bonds 10,125,000 Less unamortized difference between reacquisition price and net carrying amount 47 464 Total carrying amount 10,077,536 Current portion ( 1,010,000) Long-term $ il NO& TO FINANCIAL STATEMENTS (Coed) General obligation bonds recorded in the General Long -Term Debt Account Group are direct obligations of ' the City for which its full faith and credit are pledged. Such obligations are payable from taxes levied on all taxable property located within the City. Revenue. bonds recorded in Proprietary Funds are generally payable from revenues generated by the respective funds. The Debt Service Fund has available $1,588,266 to service general obligation bonds and certificates of obligation recorded in the General Long -Term Debt Account Group. ' The annual Debt Service requirements to maturity for all bonded debt outstanding as of September 30, 2002 are as follows: ' General Long -Term Enterprise Funds Debt Account Group Revenue Bonds ' La Porte Year ending General Area Water September 30 Obligation Bonds Utili Authori Total 2003 2,414,045 726,463 783,019 3,923,527 2004 2,189,834 651,292 780,306 3,621,432 2005 1,951,585 608,162 .771,588 3,331,335 ' 2006-2010 5,903,520 692,150 3,781,475 10,377,145 2011-2015 5,159,397 0 3,683,277 8,842,674 2016-2020 4,206,625 0 1,064,544 5,271,169 2021-2025 1,517,198 0 0 1,517,198 Less Interest 7,032,202 263,066 3,154,207 10,449,475 Principal Balance $1 LQQ. $ •41�5.001 $ -7= $ 4 1 ' The various bond indentures contain significant limitations and restrictions on annual debt service requirements, maintenance and flow of monies through various restricted accounts, and minimum revenue bond coverages. The City is in compliance with all such significant limitations and restrictions. At September 30, 2002, authorized and unissued bonds ' consisted of general obligation bonds in the ' amount of $12,900,000. 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, 2002, is $47,465. 43 NOIWO FINANCIAL STATEMENTS (Contled) 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 1I, 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. Authority is in compliance with all significant requirements and restrictions contained in the bond resolution. Note 7 Interfund Receivables/Payables consisted of: Due To LPAWA Fund General Fund Due From Utility Fund LPAWA 269,527 Operating transfers between funds during the year were as follows: Operating transfers in 203,421 Operating transfers out General Fund $ 1,350,000 $ 1,904,664 Special Revenue Funds: Economic Development 300,000 Hotel Tax 69,000 Section 4B Sales.Tax 311,550 Tax Increment Reinvest 8,642 Internal Services Funds Employee Health Services 1,500,000 Computer 209,274 Motorpool 186,749 1,022,027 Debt Service Fund 311,550 Capital Project Funds: 20%000 600,000 Enterprise Funds: Utility Fund 1,850,000 1,450,000 Golf 22,027 Sylvan Beach Fund 69,000 La Porte Area Water Authority Fund 50,000 Note 8 Commitments and Contingencies _ 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. 44 INO* TO FINANCIAL STATEMENTS (Cored) 1 Note 9 La Porte Area Water Authority La Porte Area Water Authority (the Authority), a conservation and reclamation district created by an act of the 67th State Legislature in 1981, is a component unit of the City. As a component unit, the operations of the Authority are included in the City's operations. The A uthority p rovides s urface w ater a lmost a ntirely t o t he C ity w ith t he r emainder going t o o ther ' municipalities in order for these entities to comply with certain requirements imposed by the Harris County Subsidence District. The City retains the rights to approximately 86% of the water capacity of the Authority with the other municipalities retaining the rights to the remaining 14%. The City and the ' other municipalities have agreed to service the debt on the Authority's contract revenue bonds and to fund o perations o f t he A uthority i n r elation t o t heir c apacity r ights a nd to p urchase w ater b ased o n actual consumption. ' As part of the debt service requirements, the participants are billed to build a reserve for future debt service requirements as set forth in the contract revenue bonds of the Authority. During the year, the ' Authority's billings were applied as follows: Water supplied and operating cost (user fees) $ 895,831 Debt service and reserve billings 780,288 Total Billings $ .6 ' Note 10 Post -employment BeneSts In addition to pension benefits described in Note 14, 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 prior 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 are required to pay for 10% of the cost and employees who have 10 years but less than 15 years are required to pay for 20% of their costs. For employees who ' retire after January 1, 2000 the following applies. Years of Service with La Porte Retiree City Cost Retiree Cost per Year ' At least 10 but less than 15 years 55% 45% $ 1925.00 At least 15 but less than 20 years 25% 75% $ 875.00 At least 20 years 0% 100% ' 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 Employes $149,768 $127,386 . $22,382 39 45 NO*TO FINANCIAL STATEMENTS (Con&d) Retirees who are entitled to receive retirement benefits under -the City's retirement plan may purchase continued health benefits coverage 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. Note 11 Segment Information for City Enterprise Fund The following table presents condensed financial data for the City's Enterprise Funds for the year ended September 30, 2002 Operating revenues Depreciation Operating income (loss) Operating transfers in Operating transfers out Net income (loss) Acquisition of fixed assets Net working capital . Total asset Bond payable Total fund equity Note 12 Fund Equity Contributed Capital La Porte Area Water Sylvan Golf Utility Airport Authority Beach Course Total $ 5,828,633 $ 49,323 $ 895,831 $ 177,436 $ 1,046,285 $ 7,997,508 1,163,728 190,665 426,755 23,384 158,930 1,963,462 (295,627) (159,301) (510,585) (141,489) (235,899) (1,342,901) 1,850;000 0 0 69,01)0 22,027 1,941,027 (1,450,000) 0 50,000 0 0 (1,500,000) 104,373 (159,301) (328,141) (72,489) (213,872) (669,430) 1,308,853 13,022 1,009,457 0 66,077 2,397,409 5,560,124 353,147 252,935 168,778 173,295 6,508,279 26,574,794 2,706,458 13,204,758 360,222 3,874,870 46,721,102 2,367,536 0 7,710,000 0 0 10,077,536 22,853,390 2,701,791 5,201,477 251,461 3,696,300 34,704,418 During the year, changes in contributed capital were: Depreciation Contributions Charged to October 1 from Contributed September 30 Balance Municipalities Capital Balance Enterprise Funds: Utility $ 7,184,530 $ 0 $ (313,716) $ 6,870,814 Airport 2,359,888 0 (154,624) 2,205,264 Water Authority 411,753 361,467 (549,317) 223,903 Sylvan Beach 142,179 0 (13,377) 128,801 Golf Course 3,007,507 0 (91,189) 2,916,318 Internal Service Funds: Motor Pool 62,454 0 (8,355) 54,099 Computer 322,682 0 (40,123) 282,559 Totals $ 13,490,992 $ . 361,467 $ (1,170,701) $ 12,681,758 46 INO* TO FINANCIAL STATEMENTS (Cor*ed) ' Note 13 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 coverages 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 $1,822,500 Charges to employees 149,832 Charges to retirees 18,040 ' Charges to COBRA participants 24,091 Total revenues $2,014,463 Expenses: ' Claims administration $ 84,243 Claims incurred 2,241,764 Re -insurance premiums 179,598 ' Total health services $2,505,605 ' Included in the claims paid amount is $184,081 for incurred but not reported claims. Settled claims have not exceeded insurance coverages in any of the previous four fiscal years. ' Estimates of claims payable and of claims incurred but not reported at September 30, 2002 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 2000,2001 and 2002 is as follows: 47 NO*TO FINANCIAL STATEMENTS (Coned) Beginning Current of Year Year Accrual Estimates Fiscal Year 2000 $ 121,127 $ 1,317,425 Fiscal Year 2001 105,683 2,835,856 Fiscal Year 2002 218,609 2,043,304 Risk Pool Payments End of For Year Claims Accrual $ 1,332,869 $ 105,683 2,722,930 218,609 2,077,832 184,081 The City is a member of the Texas Municipal League Intergovernmental Risk Pool, an unincorporated association of 1,860 political subdivisions of the State of Texas. The Pool contracts with a third party administrator for administration, investigation and adjustment services in the handling of claims. All loss contingencies, including claims incurred but not reported, if any, are recorded and accounted for by the Pool. Note 14 Pension Benefits Plan Descriptions The City provides pension benefits for all of its full-time employees. through a non-traditional, joint contributory, d efined b enefit p Ian ( the P Ian) i n the s tatewide Texas M unicipal Retirement S ystem (TMRS), one of 758 administered by TMRS, an agent multiple -employer public employee retirement system. A copy of the 2000 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 c redits, w ith i nterest. A t t he d ate the P Ian b egan, t he C ity g ranted monetary c redits f or 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 -financed monetary credits with interest were used to purchase an annuity. 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. 48 ' NO'* TO FINANCIAL STATEMENTS (Coried) ' 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 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 unfunded (overfunded) 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 unfunded actuarial liability is to be amortized over a new 25-year period. Currently, the unfunded 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 to budget it, 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. Actuarial liabilities and funding progress for the past six years is as follows: ' Actuarial valuation date (12/31) 2001 2000. 1999 1998 1997 1996 ' Funding progress: Actuarial value of assets $37,940,960 $34,380,561 $32,068,181 $29,083,504 $25,901,522 $23,056,581 ' Actuarial accrued liability (AAL) 44,026,509 39,902,925 37,730,679 34,223,376 3.1,600,701. 27,903,076 Unfunded (over) AAL (UAAL) 6,085,549 5,522,364 5,662,498 5,139,872 5,699,179 4,846,581 Percentage funded 86.20% 86.20% 85.00% 85.00% 81.97% 82.63% ' Annual covered payroll 13,756,651 12,835,378 11,740.997 11,477,852 10,255,266 9,646,892 UAAL as a percentage of covered payroll 44.2% 43.00% 48.02% 44.80% 55.57% 50.24% Net pension obligation (NPO) at the beginning of the period 0 0 0 0 0 0 Annual Pension Cost: ' Annual required contribution 1,668,836 1,662,499 1,513,869 1,455,004 1,309,841 1,011,959 Contribution made. 1,668,836 1,662,499 1,513,869 1,455,004 1,309,841- 1,011,959 ' NPO at end of period 0 0 0 0 0 0 Actuarial assumptions: ' Actuarial cost method - unit credit Amortization method — level percent of payroll Remaining amortization period — 25 years, open period Asset valuation method — amortized cost Investment rate of return — 8% Projected salary increase — none ' Includes inflation — none Cost of living adjustment - none ' 49 NO* TO FINANCIAL STATEMENTS (Con ed) M Texas Statewide Emergency Services Personnel Retirement Fund Summary of Significant Accounting Policies and Plan Asset Matters The Texas Statewide Emergency Services Personnel Retirement Fund financial statements are prepared using the accrual basis of accounting. The Fund's fiscal year is from September 1 through the following August 31. Contributions are recognized as revenues in the period in which they are due to the Fund. No contributions applicable to the H.B. 258 Texas Local Fire Fighters Retirement Act (TLFFRA) are included herein. The Texas Statewide Emergency Services Personnel Retirement Fund investments are reported at a smoothed market -related value. Net assets available for benefits, as computed by the Fund's actuary, included the total of the principal and interest due on contracts with member governing bodies for the purchase of buybacks and unfunded prior service costs. The present value of these contracts was $636,185 at August 31, 2002. Plan Description and Contribution Information The Fire Fighters' Pension Commission is the administrator of the Texas Statewide Emergency Services P ersonnel R etirement F und, a c ost-sharing multiple a mployer p ension s yytem a stablished 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, 200 there were 171 member departments participating in the pension system. The following table summarizes the pension system membership as of August. 31, 2002: Retirees and beneficiaries currently receiving benefits* 1,395 Terminated members entitled to benefits but not yet receiving them 1,639 Current active members (vested and non -vested) 4,630 *Excludes 9 active retired members who are included in the .total of current active members. The above membership count does not include retirees and beneficiaries that have been in the H.B. 258 Texas Local Fire Fighters Retirement Act (TLFFRA) fund before merging into S. B. 411. Of the 4,621 current active members, 72 were covered by the City. The pension system was created by Senate Bill 411, 65`h Legislature, Regular Session (1977), and was most recently revised in the 77`h Legislature, Regular Session 2001. hi addition to providing pension benefits the System also provides death and disability benefits. Eligible members include emergency services personnel who provide services related to fire, rescue, and emergency medical services and who serve without remuneration while members in good standing of a participating department. In addition, eligible members include auxiliary employees who receive limited compensation from a political subdivision of Texas and who is certified by the political subdivision as being regularly engaged in the performance of duties for a participating department. Members are vested beginning with 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. 50 INO* TO FINANCIAL STATEMENTS (Cored) 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. Contribution requirements were'established by S.B. 411, 65`h 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. To date, no contributions have been required from the State. Contribution Required and Contribution Made ' As previously noted, the required contribution of at least $12 per member per.month is not actuarially determined. The contribution amount was established by S.B. 411, 65"' Legislature, Regular Session (1977). ' The purpose of the actuarial valuation is to test the adequacy of the monthly contributions to determine if they fund the benefits that are promised. The actuarial valuation as of August 31, 2002 substantiates the adequacy of the statutory monthly contributions. 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. For fiscal years, 2000, $28,080, 2001, $30,620, 2002, $14,067, which'is approximately .82 percent of the contribution for dues and prior service was contributed -by the City. These contributions for dues and prior service did not meet the minimum required contributions that are based. on amortizing any unfunded actuarial accrued ' liability over 30 years. In addition to the contributions for dues and prior service made to the Texas Statewide Emergency Services Personnel Retirement Fund, some cities are required to make additional deposits. These ' additional deposits are for retirees and beneficiaries that have been in the H.B. 258 Texas Local Fire Fighters Retirement Act (TLFFRA) fund before merging into S.B. 411. The City's additional deposit was $2,100. 1 51 I COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP ' FINANCIAL STATEMENTS AND SCHEDULES 1 f L O LL LLL LL LLLLL LLLL O LLLLLLLL LLLLLL LLLLLLLLL LLLLLLL LLLLLLLLLL LLLLLLLL LLLLLLLLL LLLLLLLLL LLLLLL LLLLLLLLLL LLLLLL LLLL LLLLL LLLL LL r r LLLLLLLLLL _ LLLLLLLLL LLLLLL r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r TEXAS 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 GENERAL FUND The General Fund is used to account for most of the current day-to-day operations of the City, which are financed, from property taxes and other general revenues. Activities financed by the General Fund include those of all line and staff departments within the City, except for activities of the Proprietary Fund Types. 01 City of LaPorte, Texas General Fund Comparative Balance Sheet September 30, 2002 and 2001 Assets Cash and cash equivalents Investments Receivables, net of allowance for uncollectibles Due from other funds Property taxes, deliquent Accrued interest Other accounts receivable Materials and supplies inventories at cost Total Assets Liabilities and Fund Balances Liabilities Accounts payable Accrued payroll Deferred revenues Accrued employee separation pay Total Liabilities Fund Balances Reserved fund balances: Investments in inventory Designated, unreserved fund balances: Reserved for Encumbrances Undesignated, unreserved fund balance Total Fund Balances Total Liabilities and Fund Balances 2002 $ 6,789,643 1,669,419 203,421 590,850 22,816 2,360,276 74,843 $ 11,711,268 $ 1,879,073 586,580 2,017,696 100,000 4,583,349 74,843 29,810 7,023,266 7,127,919 $ 11,711,268 Exhibit B-1 2001 $ 5,637,274 2,629,279 64,660 736,665 14,606 2,452,605 58,827 $ 11,593,916 $ 1,420,644 528,698 1,877,156 100,000 3,926,498 58,827 69,518 7,539,073 7,667,418 $ 11,593,916 53 1 City of LaPorte, Texas Exhibit B-2 General Fund Statement of Revenues, Expenditures, and ' Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended September 30, 2002 with comparative actual balances for the Year Ended September 30, 2001 2002 Variance ' Favorable 2001 Budget Actual (Unfavorable) Actual Revenues ' Property taxes $ 8,330,000 $ 8,721,564 $ 391,564 $ 8,221,996 Franchise Taxes 1,645,.000 1,650,349 5,349 1,835,121 Sales taxes 1,775,000 1,908,261 133,261 1,910,997 Industrial payments 6,431,250 6,701,082 269,832 6,306,469 Other taxes 44,000 41,322 (2,678) 51,266 Licenses and permits 298,375 238,535 (59,840) 262,010 Fines and forfeits 465,000 614,534 149,534- 561,547 Charges for services 2,156,650 2,108,739 (47,911) 2,923,504 Intergovernmental 305,000 385,722 80,722 673,105 Interest 600,000 301,538 (298,462) 663,706 Miscellaneous 31,073 143,668 112,595 112,389 'Total Revenues 22,081,348 22,815,314 733,966 23,522,110 Expenditures Fire 3,240,604 3,198,856 50,748 2,953,870 ' Police 6,984,881 6,966,827 18,054 6,410,450 Administration 2,373,929 2,311,125 62,804 2,333,994 Finance 1,722,503 1,614,026 108,477 1,630,809 Public Works 4,234,213 4,187,428 46,785 4,766,586 Parks and recreation 3,328,719 3,297;865 30,854 3,058,199 Planning 1,243,619 1,224,022 19,596 1,114,689 ' Total Expenditures 23,137,468 22,800,149 337,318 22,268,598 Excess (deficiency) of revenues over expenditures (1,056,120) 15,165 1,071,285 1,253,512 Other financing sources (uses) Operating transfers in 1,350,000 1,350,000 1,052,621 Operating transfers out (1,709,274) (1,904,664) -(195,390) (635,000) ' Total other financing sources (uses) (359,274) (554,664) (195,390) 417,621 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (1,415,394) (539,499) 875,895 1,671,133 Fund balances, beginning of year, as restated 7,667,418 7,667,418 5,996,285 Fund balances, end of year $ 6,252,024 $ 7,127,919 $ 875,895 $ 7,667,418 54 City of La Porte, Texas General Fund Schedule of Revenues - Budget (GAAP Basis) and Actual Year Ended September 30, 2002 with comparative actual balances for the Year Ended September 30, 2001 Budget Revenues 2002 Actual Exhibit B-3 Variance Favorable 2001 (Unfavorable) Actual Property taxes $ 8,330,000 $ 8,721,564 $ 391,564 $ 8,221,996 Franchise Taxes 1,645,000 1,650,349 5,349 1,835,121 Sales taxes 1,775,000 1,908,261 133,261 1,910,997 Industrial payments 6,431,250 6,701,082 269,832 6,306,469 Other taxes 44,000 41,322 (2,678) 51,266 Licenses and permits 298,375 238,535 (59,840) 262,010 Fines and forfeits 465,000 614,534 149,534 561,547 Charges for services 2,156,650 2,108,739 (47,911) 2,923,504 Intergovernmental 305,000 385,722 80,722 673,105 Interest 600,000 301,538 (298,462) 663,706 Miscellaneous 31,073 143,668 112,595 112,389 Total Revenues $ 22,081,348 $ 22,815,314 $ 733,966 $ 23,522,110 55 • • ' Fire Fire Prevention: ' Personal services Supplies Other services and charges ' Capital Outlay Total Fire Prevention Fire suppression: Personal services Supplies ' Other services and charges Capital Outlay Total Fire Suppression Emergency medical services: Personal services ' Supplies Other services and charges Capital Outlay Total Emergency Services Total Fire City of LaPorte, Texas Exhibit B-4 Page 1 of 8 General Fund Schedule of Expenditures - Budget (GAAP Basis) and Actual Year Ended September 30, 2002 with comparative actual balances for the Year Ended September 30, 2001 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual $ 151,978 $ 151,905 $ 73 $ 146,703 16,300 16,237 63 11,180 40,836 40,662 174 39,550 1,700 985 715 210,814 209,789 1,025 197,433 1,150,447 1,150,342 105 1,100,024 109,104 108,808 296 64,141 346,191 327,570 18,621 332,435 10,178 4,628 5,550 11,251 1,615,920 1,591,348 24,572 1,507,850 1,123,343 1,123,154 189 998,351 92,550 92,500 50 82,832 183,355 164,275 19,080 141,825 23,622 17,790 5,832 25,579 1,422,870 1,397,719 25,151 1,248,587 $ 3,249,604 $ 3,198,856 $ 50,749 $ 2,953,870 56 City of LaPorte, Texas General Fund Schedule of Expenditures - Budget (GAAP Basis) and Actual Year Ended September 30, 2002 with comparative actual balances for the Year Ended September 30, 2001 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 2002 Variance Favorable Budget Actual (Unfavorable) Exhibit B-4 Page 2 of 8 2001 Actual $ 391,998 $ 391,938, _ $ 60 $ 375,800 32,075 32,073 2 21,580 221,397 221,260 137 212,860 1,500 1,500 646,970 645,271 1,699 610,240 3,327,670 3,327,269 401 3,043,357 _ 140,262 138,539 . 1,723 157,483 403,272 401,662 1,610 365,587 56,167 56,159 8 13,305 3,927,371 3,923,629 3,742 3,579,732 1,246,229 1,245,328 901 1,124,425. 40,811 39,327 1,484 29,931 133,634 133,321 313 127,524 587 587 17,722 1,421,261 1,417,976 3,285 1,299,601 0 • • 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 City of LaPorte, Texas General Fund Schedule of Expenditures - Budget (GAAP Basis) and Actual Year Ended September 30, 2002 with comparative actual balances for the Year Ended September 30, 2001 Support Services: Personal services Supplies Other services and charges Capital Outlay Total Support Services Total Police Administration General Administration: Personal services Supplies Other services and charges Capital Outlay Total General Administration Human Resources: Personal services Supplies Other services and charges Total Human Resources Municipal Court: Personal services Supplies and materials Other services and charges Total Municipal Court Exhibit B-4 Page 3 of 8 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual $ 836,388 $ 836,336 $ 52 $ 758,085 53,575 50,188 3,387 53,023 97,716 93,427 4,289 93,971 1,600 1,600 15,797 989,279 979,951 9,328 920,876 6,984,881 6,966,827 18,053 6,410,450 402,926 401,189 1,737 390,389 13,564 13,434 130 8,029 98,746 98,558 188 137,968 6,380 6,380 521,616 513,181 8,435 536,385 182,879 179,214 3,665 183,822 8,650 7,685 965 4,248 82,405 67,615 14,790 77,939 273,934 254,514 19,420 266,009 270,969 270,340 629 249,175 15,050 14,170 880, 9,421 173,938 162,954 10,984 190,076 $ 459,957 $ 447,464 $ 12,493 $ 448,672 58 City of LaPorte, Texas Exhibit B-4 ' Page 4 of 8 General Fund Schedule of Expenditures - Budget (GAAP Basis) and Actual ' Year Ended September 30, 2002 with comparative actual balances for the Year Ended September 30, 2001 ' 2002 Variance Favorable 2001 ' Budget Actual (Unfavorable) Actual Purchasing: , Personal services $ 205,675 $ 205,606 $ 69 $ 224,490 Supplies 3,675 3,357 318 3,293 Other services and charges 26,116 23,142 2,974 27,115 ' Capital Outlay 2,764 Total Purchasing 235,466 232,105 3,361 257,662 Management Information Services: ' Personal services 247,759 244,192 3,567 237,660 Supplies 3,280 2,819 461 1,021 = Other services and charges 47,958 47,758 200 43,093 Capital Outlay 1,140 1,140 . Total Mgmt Information Svcs 300,137 294,769 5,368 281,774 - City Secretary: Personal services 206,054 204,360 1,694 161,322 Supplies and materials 6,200 3,271 2,929 3,742 Other services and charges 70,968 62,733 8,235 77,595 - Capital outlay 12,116 Total City Secretary 283,222 270,364 12,858 254,775 Legal: Personal services 4,500 4,500 3,500 Other services and charges 195,692 195,648 44 200,085 Total Legal 200,192 200,148 44 203,585 City Council: Personal services 4,800 4,800 6,757 Supplies and materials 9,200 8,674 526 7,816 Other services and charges 85,405 85,106 299 70,559 Total City Council 99,405 98,580 825 85,132 Total Administration $ 2,373,929 $ 2,311,125 $ 62,806 $ 2,333,994 7 59 City of La Porte, Texas Exhibit B-4 Page S of 8 General Fund ' Schedule of Expenditures - Budget (GAAP Basis) and Actual Year Ended September 30, 2002 with comparative actual balances for the Year Ended September 30, 2001 2002 ' Variance Favorable 2001 Budget Actual (Unfavorable) Actual Finance Accounting: _ Personal services $ 535,426 $ 530,176 $ 5,250 $ 511,431 ' Supplies 21,700 20,328 1,372 17,923 Other services and charges 155,510 155,316 194 121,533 ' Total Accounting 712,636 705,820 6,816 650,888 Nondepartmental: Personal services 279,800 278,596 1,204 181,299- t Other services and charges 424,404 343,267 81,137 524,039 Total Nondepartmental 704,204 621,863 82,341 705,338 ' Tax Office: Personal services 133,723 121,239 12,484 124,695 Supplies and materials 10,800 7,531 3,269 8,013 ' Other services and charges 161,140 157,573 3,567 141,876 Capital outlay Total Tax Office 305,663 286,343 19,321 274,583 Total Finance 1,722,503 1,614,026 108,477 1,630,809 ' Public Works Public Works Administration: ' Personal services 221,511 221,474 37 217,883 Supplies and materials 4,300 4,269 31 3,023 Other services and charges 125,259 125,193 66 133,365 ' Capital outlay 2,500 2,500 8,632 Total Public Works Administration $ 353,570 $ 350,936 $ 2,634 $ 362,902 ' 60 City of La Porte, Texas Exhibit B-4 Page 6 of 8 - General Fund - Schedule of Expenditures - Budget (GAAP Basis) and Actual Year Ended September 30, 2002 with comparative actual balances for the Year Ended September 30, 2001 ' 2002 Variance ' Favorable 2001 Budget Actual (Unfavorable) Actual ' Streets: Personal services $ 1,410,742 $ 1,410,541 $ 201 $ 1,388,904 Supplies 100,015 91,247 8,768 102,405 ' Other services and charges 524,286 510,608 13,678 498,879 Capital Outlay 69,500 59,190 10,310 134,735 Total Streets 2,104,543 2,071,586 32,957 2,124,923 ' Residential Solidwaste: Personal services 897,944 897,905 39 869:598 Supplies 182,609 179,215 3,394 187266 ' Other services and charges 676,263 674,324 1,939 571,247 Capital Outlay 5,284 5,284 5,016 Total Residential Solidwaste 1,762,100 1,751,444 10,656 1,633,127 Commercial solidwaste: Other services and charges 14,000 13,462 538 645,634 Total Commercial Solidwaste 14,000 13,462 538 645,634 Total Public Works 4,234,213 4,187,428 46,784 4,766,586 Parks and Recreation Park Maintenance: Personal services Supplies and materials Other services and charges Capital outlay Total Park Maintenance 876,263 875,118 1,145 848,348 79,700 - 78,594 1,106 62,697 634,007 630,404 3,603 574,771 59,304 39,957 19,347 24,522 $ 1,649,274 $ 1,624,073 $ 25,201 $ 1,510,339 61 • • City of LaPorte, Texas Exhibit B-4 Page 7 of 8 General Fund Schedule of Expenditures - Budget (GAAP Basis) and Actual Year Ended September 30, 2002 with comparative actual balances for the Year Ended September 30, 2001 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual Recreation: Personal services $ 619,872 $ 618,400 $ 1,472 $ 571,130 Supplies 54,798 54,317 481 38,612- Other services and charges 64,985 64,707 278 77,333 Capital Outlay 950 950 13,651 Total Recreation 740,605 737,424 3,181 700,727 Special Services: Personal services 376,243 375,913 330 325,910 Other services and charges 90,598 89,540 1,058 91,351 Supplies 25,750 25,403 347 29,311 Capital Outlay 10,074 Total Special Services 492,591 490,856 1,735 456,645 Parks Administration: Personal Services 376,597 376,537 60 340,547 Supplies 27,324 26,691 633 12,073 Other Services and Charges 42,328 42,284 44 37,868 Capital Outlay Total Parks Administration 446,249 445,512 737 390,488 Total Parks $ 3,328,719 $ 3,297,865 $ 30,853 $ 3,058,199 62 City of LaPorte, Texas ' Exhibit B-4 Page 8 of 8 General Fund ' Schedule of Expenditures - Budget (GAAP Basis) and Actual Year Ended September 30, 2002 with comparative actual balances for the Year Ended September 30, 2001 ' Planning Planning and Engineering: Personal services Supplies Other services and charges Capital Outlay Total Planning and Engineering Inspection: 2002 Variance ' Favorable 2001 Budget Actual (Unfavorable) Actual $ 580,665 $ 580,494 $ 171 $ 524:453 ' 18,188 18,133 55 13117 67,720 67,586 - 134 69,330 3,665 3,.665 2,297 ' 670,238 666,213 4,025 609,196 _ Personal services 458,830 458,543 - 287 424,979; Other services and charges 98,801 87,991 10,810 68,089 Supplies 14,150 11,275 2,875 12,425 Capital Outlay 1,600 1,600 Total Inspection 573,381 557,809 15,572 505,493 Total Planning and Engineering 1,243,619 1,224,022 19,597 1,114,689 Total General Fund $ 23,137,468 $ 22,800,149 $ -337,319 $ 22,268,598 63 L_ O LLLLL LL A LLLLL LLLL LLLLLLLL LLLLLL LLLLLLLLL LLLLLLL LLLLLLLLLL LLLLLLLL LLLLLLLLL LLLLLLLLL LLLLLL LLLLLLLLLL LLLLLL LLLL LLLLL r r LLLLL LL LLLLLLLLLIBML r r v LLL LLLLLLr r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r ~ r r r r r r r r r r r r r r TEXAS SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. A brief description of each fund reported in the Special Revenue Funds follows: Economic Development Fund — to account for funds specially set aside to encourage development in the area of economic development. Hotel Tax Fund — to account for revenues from the Hotel/Motel Occupancy Tax and related expenditures. Section 4B Sales Tax Fund — to account for the % cent sales tax dedicated to certain economic and infrastructure projects. Tax Increment Reinvestment Zone. — to account for revenues and related expenditures that benefit. 2 City of La Porte, Texas Combining Balance Sheet All Special Revenue Funds September 30, 2002 with comparative totals for 2001 Assets: Cash and cash equivalents Investments Accounts receivable Accrued interest Total Assets Liabilities and Fund Balances Liabilities: Accounts. payable Total Liabilities Fund Balances: Unreserved/undesignated Total Fund Balances Total Liabilities and Fund Balances Economic Hotel Development Tax $ 583,270 $ 513,976 139,778 - 123,009 1,910 1,682 $ 724,958 $ 638,667 $ 1,484 $ 1,388 1,484 1,388 723,474 637,279 723,474 637,279 $ 724,958 $ 638,667 M 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Section 4B Tax Increment Sales Tax Reinvestment Zone $ .1,769,667 $ 127,120 423,257 30,402 150,821 5,784 415 $ 2,349,529 $ 157,937 Exhibit C-1 Totals . 2002 2001 $ 2,994,033 $ 2,117,999 716,446 1,018,827 150,821 180,160 9,791 5,662 $ 3,871,091 $ 3,322,648 $ $ 17,432 $ 20,304 $ 14,766 17,432 20,304 14,766 2,349,529 140,505 2,349,529 140,505 $ 2,349,529 $ 157,937 3,850,787 3,307,882 3,850,787 3,307,882 $ 3,871,091 $ - 3,322,648 65 City of LaPorte, Texas Combining Statement of Revenues, Expenditures, and Changes in_ Fund Balance - All Special Revenue Funds For the Year End September 30, 2002 with comparative totals for 2001 Economic Hotel Development Tax Revenues: Property Taxes $ $ Sales taxes - Other taxes 268,626 .Interest 26,082 16,722 Total Revenues 26,082 285,348 - Expenditures:_ Current Administration 24,719 92,334 Total Expenditures 24,719 92,334 Excess (deficiency) of revenues over expenditures 1,363 193,014 Other financing sources (uses): Operating transfers out (300,000) (69,000) Operating transfers in Total Other Financing Sources (uses) (300,000) (69,000) Excess of revenues and other financing - sources over expenditures -and other financing uses (298,637) 124,014 Fund balances, beginning of year 1,022,111 513,265 Fund balances, end of year $ 723,474 $ 637,279 66 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Exhibit C-2 Section 4B Tax Increment Totals Sales Tax Reinvestment Zone 2002 2001 $ $ 41,443 $ 41,443 $ 19,616 954,130 954,130 955,499 268,626 - 259,252 50,079 3,536 96,419 165,819 1,004,209 44,979 1,360,6A 1,400,186 43 28,708 145,804 207,161 43 28,708 145,804 207,161 1,004,166 16,271 1,214,814 1,193,025 (311,550) (680,550) (892,050) 8,641 8,641 (311,550) 8,641 (671,909) (892,050) 692,616 24,912 542,905 300,975 1,656,913 115,593 3,307,882 3,006,907 $ 2,349,529 $ 140,505 $ 3,850,787 $ 3,307,882 67 City of La Porte, Texas Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual for Special Revenue Funds For the Year End September 30, 2002 Revenues:. Sales taxes Property Taxes Other taxes Interest Miscellaneous Total Revenues Expenditures: Current Administration Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers out ' - Total Other Financing Sources (uses) Excess of revenues and other financing sources over expenditures and other financing uses Fund balances, beginning of year Fund. balances, end of year Economic Development Variance favorable Budget Actual (unfavorable) 70,000 26,082 (43,918) 70,000 26,082 (43,918) 100,000 24,719 75,281 100,000 24,719 75,281 (30,000) 1,363 31,363 (300,000) (300,000) (300,000) (300,000) (330,000) (298,637) 31,363 1,022,111 1,022,111 $ 692,111 $ 723,474 $ 31,363 68 Exhibit C-3 Page 1 of 2 Hotel Tax Variance favorable Budget Actual (unfavorable) 250,000 268,626 18,626 20,000 16,722 (3,278) 285,348 15,348 270,000 284,282 92,334 191,948 284,282 92,334 191,948 (14,282) 193,014 (69,000) (69,000) (69,000) (69,000) (83,282) 513,265 124,014 513,265 207,296 207,296 $ 429,983 $ 637,279 $ 207,296 69 • • City of La Porte, Texas Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual for Special Revenue Funds For the Year End September 30, 2002 Revenues: Sales taxes Property taxes Othertaxes Interest Total Revenues Expenditures: Current Administration Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total Other Financing Sources (uses) Excess of revenues and other financing sources over expenditures and other financing uses Fund balances, beginning of year Fund balances, end of year Section 4B Sales Tax Variance favorable Budget Actual (unfavorable) $ 900,000 $ 954,130 $ 54,130 50,000 50,079 79 950,000 1,004,209 54,209 5,000 .43 4,957 5,000 43 4,957 945,000 1,004,166 59,166 (311,550) (311,550) (311,550) (311,550) 633,450 692,616 59,166 1,656,913 1,656,913 $ 2,290,363 $ 2,349,529 $ 59,166 70 •. • 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Exhibit C-3, Cont Page 2 of 2 Tax Increment Reinvestment Zone Variance favorable Budget Actual (unfavorable) 20,000 41,443 21,443 4,000 3,536 (464) 24,000 44,979 20,979 28,708 28,708 28,708 28,708 (4,708) 16,271 20,979 8,641 8,641 8,641 8,641 (4,708) 24,912 29,620 115,593 115,593 $ 110,885 $ 140,505 $ 29,620 71 e L__ ® LLLL LL LLLLL LLLL LLLLLLLL LLLLLL LLLLLLLLL LLLLLLL LLLLLLLLLL LLLLLLLL LLLLLLLLL' LLLLLLLLL LLLLLL - LLLLLLLLLL LLLLLL LLLL LLLLL LLLLL LL LLLLLLLLLL ® LLLLLLLLL k`•,, LLLLLL _ r r r r r r r r rrr r r r r� r r r r r r r r r r r r r r r r r r r r r r r r r r r r f E X A 0 m W m 0 m m c z 0 1 1 1 1 1 1 1 1 1 11 DEBT SERVICE FUND The Debt Service Fund is used to account for the accumulation of resources and payment of general obligation bond principal and interest from government resources where the government is obligated for payment. City of La Porte, Texas Debt Service Fund Comparative Balance Sheet September 30, 2002 and 2001 2002 Assets Cash and cash equivalents $ 1,302,011 Investments _ 312,178 Taxes Receivable 174,135 Accrued Interest 4,267 Total Assets $ 1,792,591 Liabilities and Fund Balance Liabilities Accrued Interest Deferred Revenue Total Liabilities Fund Balance Reserved for Debt Service' Total Fund Balance Total Liabilities and Fund Balance 73 $ 28,846 174,135 202,981 1,589,610 1,589,610 $ 1;792,591 Exhibit D-1 1 2001 ' $ 878,253 , 422,468 214,393 , 2,347 $ 1,517,461 , 214,393 214,393 _ 1,303,068 1,303,068 $ 1,517,461 0 0 City of LaPorte, Texas Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year End September 30, 2002 Revenues: Property taxes Industrial payments Interest Total Revenues Expenditures: Debt service: Principal Interest Total Expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources: Operating transfers in Total Other Financing Sources Excess revenues and other financing sources over expenditures Fund balance, beginning of year Fund balance, end of year Exhibit D-2 Variance favorable Budget Actual (unfavorable) $ 1,964,950 $ 2,056,777 $ 91,827 183,750 191,459 7,709 47,754 46,291 (1,463) 2,196,454 2,294,527 98,073 1,685,000 1,685,000 634,538 634,535 3 2,319,538 2,319,535 3 (123,084) (25,008) 98,076 311,550 311,550 311,550 311,550 188,466 286,542 98,076 1,303,068 1,303,068 $ 1,491,534 $ 1,589,610 $ 98,075 74 • Oroe�LL LLLLLLLL LLLLLLLLL LLLLLLLLL LLLLLL I LLLLLLLL LLLL LLLL LLLLLILLLrI r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r LLLL LLLLLL O LLLLLLL LLLLLLLL LLLLLLLLL LLLLLLLLLL LLLL r r r r r r r r r r rr rr r r r r r r r r r r r r r r r rrr.-�rrr r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r rrr.--�rrrr r r r r TEXAS / • D C� Z� v;a cno m • Ll 1 1 1 1 1 1 1 1 1 1 1 1 CAPITAL PROJECT FUNDS 0 The Capital Projects Funds account for all resources received and used for the acquisition or construction of capital facilities by the City, except those financed by Enterprise Funds. A brief description of each fund reported in the Capital Projects Funds follows: Capital Improvements Fund — to account for planned capital improvement needs of the City. . Other Infrastructure Fund — to account for special capital improvements in the City. 1998 General Obligation Bond Fund — to account for projects funded by general obligation bonds sold in 1998. 2000 Certificate of Obligation Fund — to account for the construction of the community library. 2000 General Obligation Fund — to account for the construction of City Hall renovation, public swimming pool and new firehouse. 2002 General Obligation Fund — to account for the construction of the wastewater treatment plant and fire station renovation. 14 • City of La Porte, Texas Capital Projects Funds Combining Balance Sheet September 30, 2002 Capital Other Improvements Infrastructure Assets Cash and cash equivalents $ 4,207,313 $ 1,455,812 Investments 1,007,256 348,564 Accrued interest receivable 13,766 4,764 Total Assets $ 5,228,335 $ 1,809,140 Liabilities and Fund Balances Liabilities: Accounts payable $ 350,111 $ - Retainage payable Due to others Total Liabilities 350,111 Fund Balances: Unreserved Designated for construction 4,878,224 1,809,140 Total fund balances 4,878,224 1,809,140 Total liabilities and fund balances $ 5,228,335 $ 1,8091140 76 1 1 1 1 1 1 Exhibit E-1 2000 1998 Certificate of 2000 2002 G O Bond Obligation GO Bond G O Bond Total $ 1,285,434 $ 343,694 $ 968,005 $ 4,753,035 $ 13,013,293 307,848 1,219 3,106 1,667,993 4,207 17 43 22,797 $ 1,597,489 $ 344,930 $ 971,154 $ 4,753,035 $ 14,704,083 $ - $ 5,639 $ 376,287 $ - $ 732,037 11,928 135,446 147,374 20,081 25,714 45,795 11,928 25,720 537,447 925,206 1,585,561 319,210 433,707 4,753,035 1,585,561 319,210 $ 1,597,489 $ 344,930 13,778,877 433,707 4,753,035 13,778,877 $ 971,154 $ 4,753,035 $ 14,704,083 77 City of LaPorte, Texas Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes it: Fund Balance For the Year End September 30, 2002 Revenues Industrial payments Charges for Services Interest Total Revenues Expenditures: Capital outlay Total Expenditures Excess (deficiency) of revenues - Other Financing Sources (uses): Operating transfers in Operating transfers out Proceeds from sale of bonds Total Other Financing Sources Revenues and other financing sources over (under)expenditures Fund balances, beginning of year Fund balances, end of year . Capital Other Improvements Infrastructure $ 765,838 $ 20,748 140,265 46,166 926,851 46,166 910,948 910,948 15,903 46,166 200,000 200,000 215,903. 46,166 4,662,321 1,762,974 $ 4,878,224 $ 1,809,140 78 ' Exhibit E-2 2000 1998 Certificate of 2000 2002 ' G O Bond Obligation G O Bond G O Bond Total $ $ $ $ $ 765,838 20,748 41,749 10,944 56,772 8,654 304,550 ' 41,749 10,944 56,772 8,654 1,091,136 ' 172,661 22,282 2,915,967 55,619 4,077,477 172,661 22,282 2,915,967 55,619 4,077,477 (130,912) (11,338) (2,859,195) .(46,965) (2,986,341) 200,000 (600,000) (600,000) t 5,400,000 5,400,000 4,800,000 5,000,000 (130,912) (11,338) (2,859,195) 4,753,035 2,013,659 1,716,473 330,548 3,292,902 11,765,218 $ 1,585,561 $ 319,210 $ 433,70.7 $ 4,753,035 $ 13,778,877 1 79 0 0 / L F O LL LLLLL LLLLLLLL LLLLLLLLL LLLLLLLLLL LLLLLLLLL' LLLLLL LLLLLL LLLLL LLLLL LL LLLLLLLLL LLLLLLLL _ I LLLL O LLLLLL LLLLLLL LLLLLLLL � r r r r r r r r r r r r r r r r r r r r r r r r r r r r TEXAS m Z m Z1 Cn m Z 0 • 1 1 1 ENTERPRISE FUNDS Enterprise Funds are used to account for the acquisition, operation and maintenance of governmental facilities and services, which are entirely or predominantly self- supporting, by user charges. The operations of Enterprise Funds are accounted for in such a manner as to show. a profit or loss similar to comparable private enterprises. A brief description of each fund reported in the Enterprise Funds follows: Utility Fund — to account for revenues and expenses related to the operation and maintenance of the water and wastewater systems of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collections. Airport Fund — to account for financial activities of the airport, which include rentals, grants and other revenues. La Porte Area Water Authority Fund — 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. Sylvan Beach Fund — to account for revenues and expenses related to the operations of Sylvan Beach Convention Center. Golf Course Fund — to account for revenues and expenses related to the operation of an eighteen -hole municipal golf course. City of LaPorte, Texas Enterprise Funds Combining Balance Sheet September 30, 2002 Assets Current Assets: Cash and cash equivalents Investments Accounts receivables, net of allowance for uncollectible Accrued interest receivable Due from other funds Materials and supplies inventories,.,at cost Total Current Assets Restricted Assets: Cash and cash equivalents restricted for customer service deposits Investments restricted for: Current debt service Other Total Restricted Assets Land, Buildings and Equipment: Land Buildings and improvements Improvements other than buildings Vehicles and equipment Construction in progress Less accumulated depreciation Net Land, Buildings and Equipment Total Assets Utility Airport $ 4,455,676 1,155,890 675,423 17,442- 4,540 6,308,971 368,730 625,000 993,730 266,009 51,730 40,073,153 329,170 216,277 40,936,339 (21,658,747) 19,277,592 $ 26,580,293 $ 284,045 68,002 5,132 928 358,107 203,504 4,036,173 4,239,677 (1,891,033) 2,348,644 $ 2,706,751 81 • • 1 1 1 i 1 1 1 1 1 1 1 Exhibit F-1 Page I of 2 La Porte Area Water Sylvan Golf Authority Beach Course Total $ - $ 183,170 $ 206,703 $ 5,129,594 43,712 49,426 1,317,030 256,375 2,405 939,335 3,730 675 22,775 269,527 269,527 4,540 529,632 229,287 256,804 7,682,801 368,730 1625,000 1,607,272 1,607,272 1,607,272 2,601,002 1,880,965 2,350,478 721,868 773,598 14,725,570 374,603 2,489,585 61,699,084 131,340 460,510 216,277 14,725,570 374,603 5,223,758 65,499,947 (3,657,716) (243,480) (1,605,476) (29,056,452) 11,067,854 131,123 3,618,282 36,443,495 $ 13,204,758 $ 360,410 $ 3,875,086 $ 46,727,298 82 City of La Porte, Texas Enterprise Funds Combining Balance Sheet September 30, 2002 Liabilities and Equity Liabilities: Current liabilities: Accrued payroll Accounts payable Due to other funds Other current liabilities Total Current Liabilities Current liabilities (payable from restricted assets): Current portion of revenue bonds Accrued interest Customer deposits Total Current Liabilities (Payable from Restricted Assets Long -Term Liabilities: Revenue bond, net of current portion Accrued separation pay Total Long -Term Liabilities Total Liabilities Equity: Contributed capital: Municipalities Property owners Government agencies Total contributed capital Retained earnings Total Equity Total Liabilities and Equity Utility Airport $ 76,716 368,813 269,527 28,292 743,348 625,000 4,895 371,307 1,001,202 1,742,536 234,317 1,076,853 3,721,403 5,967,626 300,929 602,259 6,870,814 15,988,076 22,858,890 $ 26,580,293 3,167 1,500 4,667 4,667 20,950 2,184,314 2,205,264 496,820 23702,084 $ 2,706,751 83 1 1 1 1 1 1 1 1 1 La Porte Area Water Sylvan Authority Beach Exhibit F-1 Page 2 of 2 Golf Course Total $ - $ 5,193 $ 26,411 $ 108,320 72,138 19,024 42,675 505,817 203,421 472,948 36" 104 14,207 80,103 275,559 60,321 83,293 1,167,188 385,000 1,010,000 16,584 21,479 45,540 416,847 401,584 45,540 1,448,325 7,325,000 9,067,536 2,900 95,277 332,494 7,325,000 2,900. 95,277 9,400,030 8,002,143 .108,761 178,570 12,015,543 203,598 128,801 2,916,318 9,237,293 20,305 2,505,548 602,259 223,903 128,801 2,916,318 12,345,100 4,978,712 122,848 780,198 22,366,655 5,202,615 251,649 3,696,516 34,711,755 $ 13,204,758 $ 360,410 $ 3,875,086 $ 46,727,298 84 City of LaPorte, Texas Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings For the Year End September 30, 2002 Operating Revenues: User fees Intergovernmental Total Operating Expenses: Personal services Supplies Other services and charges Depreciation - Total Operating Expenses Total Income (loss) Nonoperating Revenues (Expenses) Contribution from participant Interest income Debt Service Billings Rebate to Member Cities Interest expense and fiscal charges Gain (loss) on sale of equipment Net Nonoperating Revenues (Expenses) Income (Loss before Operating Transfers) Operating Transfers: Operating transfers in Operating transfers out Net Income (Loss) Add Depreciation on Building and Equipment Acquired with Contribution_ Less fixed assets acquired by contributions Increase (decrease) in retained earnings Retained Earnings, beginning of Year - Retained Earnings, End of Year Utility $ 5,828,633 5,828,633 2,200,788 143,094 2,470,276 1,163,728 5,977,886 (149,253) 165,462 (132,418) (173,918) (140,874) (290,127) 1,850,000 (1,450,000) 109,873 Airport $ 33,544 15,779 49,323 2,090 19,055 190,665 211,810 (162,487) 8,655 (5,176) 3,479 (159,008) (159,008) 313,716 154,624 423,589 15,564,487 $ 15,988,076 (4,384) 501,204 $ 496,820 85 • 1 1 1 1 1 1 1 1 1 1 1 1 La Porte Area Water Authority $ 895,831 895,831 231 979,430 426,755 1,406,416. (510,585) 72,121 780,288 (197,791) (418,821) (2,215) 233,582 (277,003) (50,000) (327,003) 426,755 (361,467) (261,715) 5,240,427 $ 4,978,712 Sylvan Beach $ 177,436 177,436 136,033 9,439 129,664 23,384 298,520 (121,084) 5,669 (25,886) (20,217) (141,301) Exhibit F-2 Golf Course Total $ 1,046,285 1,046,285 764,482 136,398 151,819 158,930 1,211,629 (165,344) 6,527 (76,866) (70,339) (235,683) 69,000 22,027 (72,301) (213,656) 13,377- (58,924) 181,7t $ 122,848 86 91,189 (122,467) 902,665 $ 780,198 $ 7,981,729 15,779 7,997,508 3,101,303 291,252 3,750,244 1,963,462 9,106,261 (1,108,753) 258,434 780,288 (197,791) (551,239) (284,061) 5,631 (1,103,122) 1,941,027 (1,500,000) (662,095) 999,661 (361,467) (23,901) 22,390,555 $ 22,366,654 • City of La Porte, Texas Enterprise Funds Combining Statement of Cash Flows For the Year End September 30, 2002 Utility Airport Cash Flows from Operating Activities: Cash received from user fees $ 5,872,689 Cash payments to suppliers (2,342,947) Cash payments to personal services (2,211,785) Net Cash Provided(used) by Operating Activities 1,317,957 Cash Flows from Noncapital Financing Activities: Contributions from participants Due To/From Other Funds Operating transfers in from other funds 1,850,000 Rebate to Member Cities Operating transfers out to other funds (1,450,000) Net Cash Provided (used) by Noncapital Financing Activities 400,000 Cash Flow from Capital and Related Activities: Payments received from participants Payments for capital acquisitions (1,308,853) Principal payments on revenue bonds (625,000) Interest paid on debt (135,133) Net Cash used for Capital and Related Financing Activities . (2,068,986) Cash Flows from Investing Activities: Interest on investments 160,281 Net Investments sold 676,090 Net Cash provided by Investing Activities 836,371 Net Increase (Decrease) in Cash and Cash Equivalents 485,342 Cash and Cash Equivalents at Beginning of Year 4,339,064 Cash and Cash Equivalents at End of Year $ 4,824,406 $ 45,814 (17,138) 28,676 (13,022) (13,022) 8,319 38,556 46,875 62,529 221,516 $ 284,045 87 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 La Porte Area Water Sylvan Authority Beach Exhibit F-3 Page I of 2 Golf Course Total $ 658,571 $ 177,261 $ 1,046,285 $ 7,800,620 (979,170) (137,676) (249,727) (3,726,658) (134,874) (753,528) (3,100,187) (320,599) (95,289) 43,030 973,775 34,216 . 34,216 69,000 22,027 1,941,627 (197,791) (197,791) (50,000) (1,500,000) (213,575) 69,000 22,027 277,452 780,288 780,288 (1,009,457) (66,077) (2,397,409) (370,000) (995,000) (419,725) (554,858) (1,018,894) (66,077) (3,166,979) 73,963 6,114 6,304 254,981 485,371 36,531 31,885 1,268,433 559,334 42,645 38,189 1,523,414 (993,734) 16,356 37,169 (392,338) 993,734 166,814 169,534 5,890,662 $ - $ 183,170 $ 206,703 $ 5,498,324 88 City of LaPorte, Texas Enterprise Funds Combining Statement of Cash Flows For the Year End September 30, 2002 Operating Income (Loss) Adjustments to reconcile operating income to net cash provided (used). by operating activities Depreciation (Increase) decrease in accounts receivable Increase (decrease) in accrued payroll Increase (decrease) in accounts payable Increase (decrease) in other current liabilities Increase (decrease) in customer utility deposits Increase (decrease) in due to component unit Increase (decrease) in accrued employee separation Total Adjustments Net Cash Provided(Used) by Operating Activities Market Value of Change in Investments Reconciliation to Balance Sheet: Cash & Cash Equivalents Restricted Cash & Cash Equivalents Utility $ (149,253) 1,163,728 44,056 (1,869) 70,350 28,292 2,577 169,205 (9,128) 1,467,211 $ 1,317,958 $ (12,419) $ 4,455,676 368,730 $ 4,824,406 Airport $ (162,487) 190,665 (3,509) 2,507 1,500 191,163 $ 28,676 $ (562) $ 284,045 $ 284,045 89 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Exhibit F-3 'Page 2 of 2 La Porte Area Water Sylvan Golf Authority Beach Course Total $ (510,585) $ (121,084) $ (165,344) $ (1,108,753) 426,755 23,384 158,930 1,963,462 (237,260) (175) (196,888) 732 (52) (1,189) 491 12,527 " 37,410 123,285 (6,250) 1,080 24,622 (4,850) (2,273) 169,205 427 11,006 2,305 189,986 25,795 208,374 2,082,529 $ (320,599) $ (95,289) $ 43,030 $ 973,776 $ (11,206) $ (339) $ (213) $ (24,739) $ - $ 183,170. $ 206,703 $ 5,129,594 368,730 $ - $ 183,170 $ 206,703 $ 5,498,324 90 / F L O LL LLL LLLLL LLLLLLLL LLLLLLLLL LLLLLLLLLL LLLLLLLLL .LLLLLL .LLLL- .LLLL_ .LLLLLL LLLLLLLL .LLLLLLL .LLLL - A L9 0 LL LLLL LLLLLL LLLLLLL LLLLLLLL r r r r r r r r r r rr -- r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r - rrr rrrr r r r r r r r r TEXAS 77777A �7 Z --I X CD Z r- 0 cn m n m 1 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 • INTERNAL SERVICE FUNDS • Internal Service Funds are used to account for the financing of goods or services by one department to other departments of the City on a cost reimbursement basis. A brief description of each fund reported in the Internal Service Funds follows: Motor Pool Fund — to account for the revenues and cost of providing vehicles of all types to City departments. This fund provides for maintenance, fuel, lubrication and replacement for these vehicles. Computer Fund — to account for the revenues and cost of providing computers of all types to City departments. This fund provide for maintenance, repair and replacement for these computers. Employee Health Services Fund — to account for the revenues and cost of providing health care coverage to employees and others eligible under the City's p Ian, including employee dependents and retirees. • Assets .Current assets: Cash and cash equivalents Investments Accrued interest receivable Materials and supplies inventories, at cost Total Current Assets Vehicles and equipment Less accumulated depreciation Net vehicles and equipment Total Assets Liability and Equity Liabilities: Current liabilities: Due to other funds Accrued payroll Accounts payable Total Current Liabilities Accrued Employee Separation Pay Total Liabilities Equity: Contributed capital Retained earnings Total Equity Total Liabilities and Equity City of La Porte, Texas Internal Service Funds Combining Balance,Sheet September 30, 2002 • Exhibit G-1 Employee Health Motor Pool Computer Services Total $ 1,661,376 398,562 5,447 46,904 $ 245,007 $ 1,294,967 $ 3,201,350 58,594 307,233 764,389 801 4,199 10,447 46,904 2,112,289 304,402 1,606,399 4,023,090 10,158,477 1,851,666 12,010,143 (5,621,608) (1,151,393) (6,773,001) 4,536,869 700,273 5,237,142 $ 6,649,158 $ 1,004,675 $ 1,606,399 $ 9,260,232 21,927 21,927 10,144 11,106 185,199 206,449 32,071 11,106 185,199 228,376 98,745 98,745 130,816 11,106 185,199 327,121 54,099 282,559 336,658 6,464,243 711,010 1,421,200 8,596,453 6,518,342 993,569 1,421,200 8,933,111 $ 6,649,158 $ 1,004,675 $ 1,606,399 $ 9,260,232 92 1 1 1 1 1 1 1 1 1 1 • • City of LaPorte, Texas Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings For the Year End September 30, 2002 Operating revenues - user fees Operating expenses: Personal services Supplies Other services and charges Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating revenues: Interest revenue Gain (loss) on sale of equipment Net nonoperating revenues Income (loss) before operating transfers Operating transfers in Operating transfers out Net income Add depreciation on vehicles and equipment acquired with contributions Increase in Retained Earnings Retained Earnings, as restated Retained Earnings, end of year Exhibit G-2 Employee Health Motor Pool Computer Services Total $ 1,822,453 $ 320,607 $ 2,014,463 $ 4,157,523 636,800 636,800 186,527 7,609 194,136 397,964 186,403 2,505,605 3,089,972 834,359 173,573 1,007,932 2,055,650 367,585 2,505,605 4,928,840 (233,197) (46,978) (491,142) (771,317) 80,643 4,760 4,065 89,468 ' (75,569) (155,728) (231,297) 5,074 (150,968) .4,065 (141,829) (228,123) (197,946) (487,077) (913,146) 186,749 209,274 1,500,000 1,896,023 (1,022,027) (1,022,027) (1,063,401) 11,328 1,012,923 (39,150) 8,355 40,123 48,478 (1,055,046) 51,451 1,012,923 9,328 7,519,289 659,559 408,277 8,587,125 $ 6,464,243 $ 711,010 $ 1,421,200 $ 8,596,453 93 • City of La Porte, Texas Internal Service Funds Combining Statement of Cash Flows For the Year End September 30, 2002 Cash Flows from Operating Activities: Cash received from user fees Cash payments to suppliers for goods and services Cash payments to personal services Net Cash Provided(Used) by Operating Activities Cash Flows from Noncapital Financing Activities Due to other funds Operating transfers out to other funds Net Cash Provided(Used) by Noncapital Financing Activities Cash Flow from Capital and Related Activities Payments for capital acquisitions Net Cash Provided (used) for Capital and Related Financing Activities Cash Flows from Investing Activities: Interest on investments Investments purchased Net Investments sold Net Cash Provided(Used) by Investing Activities Net Increase (decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Exlsibit G-3 Page 1 of 2 Employee Health Motor Pool Computer Service Total $ 1,822,453 $ 320,607 $ 2,014,463 $ 4,157,523 (580,062) (213,780) (2,342,936) (3,136,778) (636,448) - (636,448) 605,943 106,827 (328,473) 384,297 (64,660) (64,660) (835,278) 209,274 1,500,000 873,996 (835,278) 144,614 1,500,000 809,336 (1,192,425) (21,749) (1,214,174) (1,192,425) (21,749) (1,214,174) 82,017 4,345 705,639 10,970 624 86,986 (170,803) (170,803) 716,609 787,656 15,315 (170,179) 632,792 (634,104) 245,007 1,001,348 612,251 2,295,480 - 293,619 2,589,099 $ 1,661,376 $ 245,007 $ 1,294,967 $ 3,201,350 94 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 • • City of La Porte, Texas Exhibit G-3 Page 2 of 2 Internal Service Funds Combining Statement of Cash Flows For the Year End September 30, 2002 Employee Health Motor Pool Computer Service Total Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income (Loss) Adjustments to reconcile operating income to $ (233,197) $ (46,978) $ -(491,142) $ (771,317) net cash provided (used) by operating activities Depreciation 834,359 173,573 1,007,932 (Increase) decrease in accounts receivable 198,460 198,460 (Increase) decrease in inventories 2,100 2,100 Increase (decrease) in accrued payroll (1,350) (1,350) Increase (decrease) in accounts payable 2,329 (19,768) (35,791) (53,230) Increase (decrease) in accrued employee separation pay 1,702 1,702 Total Adjustments 839,140 153,805 162,669 1,155,614 Net Cash Provided by Operating Activities 605,943 $ 106,827 (328,473) 384,297 Noncash Capital and Investing Activities Market Value Change in Investments $ (6,751) $ (230) $ (883) $ (7,864) 95 /a Ift� uaft F L O LL LLL LLLLL LLLLLLLL LLLLLLLLL LLLLLLLLLL LLLLLLLLL LLLLLL LLLLLL LLLLL LLLLL LL LLLLLLLLL LLLLLLLLL "\ LL LLLL LLLLL LLLLLL LLLLLLL r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r+r rr r r r r r r r r r r rrrrrr.-+ r r r r r r r i TEX AS 1 1 i i 1 i GENERAL FIXED ASSETS ACCOUNT GROUP . The General Fixed Assets Account Group is an independent, self -balancing account group set up to account for fixed assets of the City, which are not accounted for in Proprietary Fund Types. • . i City of LaPorte, Texas Schedule of General Fixed Assets - By Source September 30, 2002 General Fixed Assets: Land Buildings Improvements other than buildings Equipment Construction in progress Total General Fixed Assets Investment in General Fixed Assets: Investment in property acquired prior 10/01/80 Investment in property acquired after 10/01/80 General fund revenues Capital project fund revenues Total Investment in General Fixed Assets Exhibit H-1 7,096,316 12,906,945 15,823,608 1,004,326 2,501,794 39,332,989 2,019,147 11,829 13,744,914 23,557,099 $ 39,332,989 97 0 . • 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 City of La Porte, Texas Exhibit H-2 Schedule of Changes in General Assets - by Function and Activity For the Year End September 30, 2002 General Fixed Assets General Fixed Assets Function and Activity October 1, 2001 Additions Deductions September 30, 2002 Fire $ 4,122,501 $ 1,132,688 $ (376,616) $ 4,878,573 Police 1,528,479 53,681 (280,862) 1,301,298 Administration 5,472,803 4,687,087 (3,188,740) 6,971,150 Finance 45,727 (31,144) 14,583 Public Works 10,820,840 109,394 (128,591) 10,801,643 Parks and Recreation 14,567,146 697,332 (629,256) 14,635,222 Planning 436,757 , 391,237 (97,474) 730,520 Total General Fixed Assets $ 36,994,253 $ 7,071,419 $ (4,732,683) $ 39,332,989 98 N City of La Porte, Texas Schedule of General Fixed Assets - by Function and Activity September 30, 2002 Function and Activity Land Building Fire $ 562,963 $ 2,781,314 Police 836,963 Administration 317,635 4,038,505 Finance Public Works 2,760,405 1,498,593 Parks and Recreation 3,238,311 3,751,570 Planning 217,002 Total General Fixed Assets $ 7,096,316 $ 12,906,945 99 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Improvements other than buildings . $ 320,177 195,424 864,853 6,474,619 7,474,939 493,596 $ 15,823,608 _ 0 Equipment $ 471,242 241,003 85,560 14,583 68,026 103,990 19,922. $ 1,004,326 100 Construction in progress $ 742,877 27,908 1,664,597 66,412 $ 2,501,794 Exhibit H-3 Total. $ 4,878,573 1,301,298 6,971,150 14,583 10,801,643 14,635,222 730,520 $ 39,332,989 /� L OLL LLLLLLL LLLLLLLL LLLLLLLL LLLLLL 1 LLLLLL LLLLL LLLLLLLLLLLL LLLLL LLLLLLLLLL..id LL LLLL O LLLLL LLLLLL LLLLLLL �-r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r TEXAS 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Fj GENERAL LONG-TERM DEBT ACCOUNT GROUP The General Long -Term Debt Account Group is an independent self -balancing account group set up to account for long-term debt and other noncurrent obligations of the City legally payable from general revenues secured by a pledge of the limited ad valorem property tax under the provisions of the City Charter. City of LaPorte, Texas Schedule of General Long -Term Debt September 30, 2002 Amount Available and to be Provided for the Payment of General Long -Term Debt General obligation bonds and notes payable: Amount available in Debt Service Fund Amount to be provided Total Amounts Available and to be Provided General Long -Term Debt Payable General obligation bonds Certificate of Obligation Accrued employee separation pay Total General Long -Term Debt Payable Exhibit I -I $ 1,589,610 16,932,387 $ 18,521,997 $ 13,610000 2,700,000 2,211,997 $ 18,521,997 102 L ® LL LLL LL LLLLL LLL L LLLLLL O LLLLLLLLLL LLLLLLLLL LLLLLLL LLLLLLLLLL LLLLLLLL LLLLLLLLL LLLLLLLLL LLLLLL LLLLLLLLL LLLLLL LLLL LLLLL LLLLL LL LLLLLLLLLL LLLLLLLLL _ r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r TEXAS F P-.P.dpd- EW FF 1 1 1 1 1 1 1 1 1 1 1 1 1 STATISTICAL SECTION . (unaudited) City of LaPorte, Texas General Governmental Expenditures by Function Last Ten Fiscal Years Fiscal Year Fire 1993 $ 1,952,024 1994 2,002,392 1995 1,922,431 1996 2,129,996 1997 2,274,380 1998 2,427,804 1999 2,561,745 2000 2,758,001 2001 . 2,953,870 2002 3,198,856 Police Administration Finance $. 3,601,471 $ 1,894,040 $ 1,242,884 3,813,515 1,505,045 1,608,984 3,993,418 1,554,052- 3,610,918 4,225,943 1,687,565 2,028,493 4,615,150 1,897,385 1,782,840 5,044,485 1,996,976 1,665,665 5,280,675 2,321,041 1,709,615 5,886,308 2,232,576 1,769,497 6,410,450 2,486,614 1,630,809 6,966,827 2,456,929 1,614,026 Source: City of La Porte records. This table includes General, Special Revenue and Debt Service Funds. 103 Public Parks and Works Recreation Planning Debt Service $ 2,918,889 $ 1,862,816 $ 687,591 $ 2,638,311 3,453,743 1,970,702 680,357 2,447,590 3,601,628 2,005,982 687,061 2,525,842 3,800,688 2,093,166 756,592 2,424,211 3,944,432 2,331,312 815,453 2,212,278 4,370,681 2,560,069 875,280 2,061,420 4,617,505 2,697,886 1,025,471 2,054,379 .4,716,596 2,944,296 1,027,998 2,145,841 4,766,586 3,058,199 1,114,689 2,504,933 4,187,428 3,297,865 1,224,022 2,319,535 Table 1 Total $ 16,798,026 17,482,328 19,901,332 19,146,654 19,873,230 21,002,380 22,268,317 23,481,113 24,926,150 25,265,488 104 City of LaPorte, Texas General Governmental Revenues by Source Last Ten Fiscal Years Fiscal Licenses Fines and Charges for Year Taxes (1) and Permits Forfeits Services 1993 $ 14,502,452 $ 196,776 $ 264,577 $ 1,504,317 1994 14,771,577 187,485 256,729 2,079,366 1995 15,843,519 169,962 271,308 2,346,812 1996 16,181,649 218,946 353,837 2,439,161 1997 17,148,601 243,632 427,305 2,567,400 1998 18,841,950 303,890 617,432 2,552,849 1999 19,400,416 357,694 4.79,363 2,996,774 2000 20,231,824 337,259 407,459 3,147,031 2001 21,685,552 262,010 561,547 2,923,504 2002 22,535,013 238,535 614,534 2,108,739 Source: City of LaPorte records. This table includes General, Special Revenue and Debt Service Funds. Note: (1) Includes ad valorem, franchise, sales, industrial payments, and other taxes. 105 • • 1 1 1 k Intergovernmental Interest $ 168,561 $ 465,777 $ 145,647 419,719 154,339 509,292 142,600 589,499 187,333 589,971 192,821 694,129 170,044 627,387 313,261 836,115 673,105 926,656 385,722 444,248 106 Miscellaneous Table 2 Total 26,116 $ 17,1.28,576 43,070 17,903,593 100,183 19,395,415 85,202 20,010,894 28,470 21,192,712 14,791 23,217,862 88,508 24,120,186 71,417 25,344,366 112,389 27,144,763 143,668 26,470,459 City of La Porte, Texas Property Tax Levies and Collections Last Ten Fiscal Years Delinquent Fiscal Total Current Tax Percent of Tax Year Tax Levy Collections - Levy Collected Collections 1993 7,221,999 7,054,966 97.69% 311,875 1994. 7,569,807 7,388,454 97.60% 149,294 1995 7,688,390 7,475,963 97.24% 96,555 1996 7,874,567 7,693,553 97.70% 152,106 1997 8,310,963 8,100,624 97.47% 358,575 1998 8,598,632 8,437,322 98.12% 220,553 1999 8,939,428 8,795,498 98.39% 206,154 2000 9,175,689 9,006,072 98.15% 184,584 2001 10,102,074 9,831,981 97.33% 247,977 2002 10,683,102 10,515,098 98.43% 207,508 Note: (1) excludes penalties and interest 107 0, 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Total Tax Collections (1) 7,366,841 7,537,748 7,572,518 7,845,659 8,459,199 8,657,875 9,001,652 9,190,656 10,079,958 10,722,606 Percentage of Total Tax Collections to Tax Levy 102.01 % 99.58% 98.49% 99.63% 101.78% 100.69% 100.70% 100.16% 99.78% 100.37% 108 Outstanding Delinquent Taxes 1,018,890 "1,051,993 1,162,317 1,101,197 1,108,770 1,036,304 901,832 830,979 619,890 864,736 Table 3 Percent of Delinquent Taxes to Tax Levy 14.11% 13.90% 15.12% 13.98% 13.34% 12.05% 10.09% 9.06% 6.14% 8.09% 0 0 City of La Porte, Texas Property Tax Rates'- Direct and Overlapping Governments (Per $100 of Assessed Value) Last Ten Fiscal Years 1 City of La Porte (1) Harris County Fiscal General Debt Service Flood Control Harris Year Fund Fund Total District (2) County (2) 1993 0.53 0.21 . 0.71 0.0559 0.3291 1994 0.55 0.18 0.71 0.0625 0.3628 1995 0.55 0.16 0.71 0.0760 0.4068 1996 0.55 0.16 0.71 0.0760 0.4070 1997 0.57 0.14 0.71 0.0742 0.4276 1998 0.57 0.14 0.71 0.0800 0.4166 1999 0.57 0.14 0.71 0.0800 0.3948 2000 0.57 .0.14 0.71 0.0617 0.3590 '2001 0.57 0.14 0.71 0.0476 0.3839 2002 0.57 0.14 0.71 0.0476 0.3839 Source: (1) City of La Porte records (2) Office of Harris County (3) Office of La Porte Independence School District (4) Office of San Jacinto Jr. College District 109 a. 0 1 i 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 Table 4 Port of Harris County San Jacinto Houston Board of Hospital La Porte Jr. College Authority (2) Education (2) District (2) I.S.D. (3) District (4) Total 0.0150 0.0042 0.1962 1.540 0.1000 2.9504 0.0132 0.0047 0.1962 1.540 0.1000 2.9894 0.0129 0.0052 0.1835 1.560 0.1000 3.0544 0.0130 0-.0050 0.1240 1.560 0.1100 3.0050 0.0160 0.0056 • '0.1238 1.560 0.1100 3.0272 0.0213 0.0061 0.1238 1.610 0.1100 3.0778 0.0204 0.0063 0.1465 1.610 0.1100 3.1180 0.0183 0.0063 0.2027 1.650 0.1260 3.1340 0.0183 . 0.0063 0.1902 1.630 0.1307 3.1170 0.0183 0.0063 0.1902 1.630 0.1307 3.1170 110 -0 b ill t 1 1 1 i 1 1 1 1 1 1 1 1 1 1 i 1 1 1 • City of La Porte, Texas • Table S Ratio of Gross General Bonded Debt to Assessed Value and Gross Bonded Debt Per Capita Last Ten Fiscal Years Gross Ratio of Taxable Bonded Gross Bonded Gross Fiscal Value (in Debt (1) (in Debt to - Bonded Debt Year Population Thousands) Thousands) Taxable Value Per Capita 1993 29,293 $ 1,055,973 $ 16,010 1.52% 547 1994 29,707 1,050,687 15,270 1.45% 514 1995 30,464 1,076,592 13,555 1.26% 445 1996 31,045 1,135,711 11,835 1.04% 381 1997 31,859 1,191,363 10,255 0.86% 321 1998 32,658 1231,486 11,170 0.91% 342 1999 34,191 1,277,210 9,675 0.76% 283 2000 31,880 1,525,166 11370 0.75% 324 2001 32,356 1,422,739 9,745 ,0.68% _ 311 2002 32,910 1,504,631 13,610 0.90% 425 Source: City of La Porte records Note: (1) Included long-term general obligation debt but not liability for employees separation pay or notes payable. 112 • 0 City of La Porte, Texas Computation of Direct and Overlapping Debt September 30, 2002 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 Table 6 Percentage Amount Net Debt Applicable to Applicable to Outstanding City of La Porte City of La Porte $ 83,370,000 33.51% $ 27,937,287 107,779,153 0.90% 970,012 195,546,590 221,295,000 53,000,000 660,990,743 16,310,000 $ 677,300,743 Total Direct and Overlapping Debt Per Capita Source: Moroney, Beissner & Co., Inc., Financial Advisors 0.90% 1,759,919 0.90% 1,991,655 6.02% 3,190,600 35,849,474 100.00% 16,310,000 $ 52,159,474 $ 1,585 113 1 • • 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 City of LaPorte, Texas Ratio of Annual Debt Service Expenditures For General Obligation Debt to Total General Expenditures Last Ten Fiscal Years Fiscal Year Principal Interest 1993 $ 1,490,000 $ 1,148,311 1994 1,527,725 919,865 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 Total Debt Service $ 2,638,311 2,447,590 2,525,842 2,424,211 1,212,278 2,061,420 2,054,379 2,145,841 2,504,932 2,319,535 This table includes all General Fund and Debt Service Fund Expenditures. 114 Table 7 Ration of Debt Total Service to Total General General Expenditures Expenditures $ 16,798,026 15.71 % 17,482,328 14.00% 19,901,332 12.69% 19,146,634 12.66% 19,873,230 11.13% 21,002,380 9.82% 22,089,712 9.30% 23,481,113 9.14% 24,926,150 10.05% 25,119,686 9.23% Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 City of La Porte, Texas Revenue Bond Coverage - Water and Sewer Bonds Last Ten Fiscal Years Operating Revenue(l) $ 5,535,862 5,646,694 6,000,898 6,260,721 6,106,337 6,368,938 6,445,231 6,844,236 6,094,735 5,988,595 Operating Expenses (2) $ 3,768,620 3,737,240 3,802,082 3,908,378 4,081,712 4,177,982 4,386,479 5,626,662 4,347,508 4,814,158 (1) Includes interest income (2) Excludes depreciation and loss on uncollectible accounts. Net Revenue Available for Debt Service $ 1,767,242 1,909,454 2,198,816 2,352,343 2,024,625 2,190,956 2,058,752 1,217,574 1,747,227 1,174,437 115 Table 8 Debt Service Requirements ' Principal Interest Total Coverage $ 415,000 $ 431,980 $ 846,980 2.09' 415,000 353,916 768,916 2.48 485,000 324,061 809,061 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 ' 66U,000 168,781 828,781 2.11 625,000 132,418 757,418 1.55 f ' 116 City of La Porte, Texas Asssessed and Estimated Actual Value Property Last Tee: Fiscal Years Real Property Fiscal Year Actual Value Taxable Value 1993 $ 953,835,030 $ 862,562,240 1994 .999,026,450 879,673,220 1995 930,863,730 905,935,390 1996 1,088,617,760 963,946,080 1997 1,107,091,700 991,682,852 1998 1,132,150,100 1,030,030,350 1999 1,200,942,090 1,073,849,843 2000 1,348,881,240 1,288,197,300 2001 . 1,346,611,820 1,128,777,060 2002 1,461,368,400 1,212,042,880 Personal Property Actual Value Taxable Value $ 215,827,400 $ 193,411,370 203,254,030 171,013,980 199,850,740 170,656,790 197,177,710 171,765,840 222,428,561 199,680,490 239,361,192 201,455,980 231,352,908 203,361,040 258,255,710 236,968,760 295,183,470 293,962,150 295,213,550 292,588,100 Source: City of La Porte records, local financial and the Harris County Appraisal District Property values shown are appraised values, which represent estimated actual value. Ratio of total appraised value to estimated actual value for years is 100%. t 117 t Exemptions Real Property Personal Property $ .124,525,090 $ 432,700 129,730370 372,460 141,138,650 450,650 145,406,130 419,590 . 146,950,580 '522,210 151,108,330 129,520 169,445,710 809,240 186,962,500 956,290. 217,834,760 1,221,320 249,325,520 2,625,450 Total Actual Value Taxable Value $ 1,169,662,430 $ 1,055,973,610 1,202,280,480 1,050,687,200 1,130,714,470 1,076,592,180 1,285,795,470 1,135,711,920 1,329,520,261 1,191,363,342 1,371,511,292 1,231,486,330 1,4321294,998 1,277,210, 883 1,607,136,950 1;525,166,060 1,641,795,290 1,422,739,210 .1,756,581,950 1,504,630,980 Table 9 Ratio of Assed/Actual 110.77% 114.43% 105.03% 113.21% 111.60% 111.37% 112.14% 105.37% 115.40% 11635% 118 City of LaPorte, Texas Table 10 Principal Taxpayers September 30, 2002 Percentage 2001 Total Assessed Assessed Taxpayers Type of Business Valuation Valuation PPG Industries, Inc. Chemical Plant $ 63,253,500 4.89% Conoco Inc Chemical Plant 48,464,430 3.75% Equistar Chemicals LP Chemical Plant 45,240,940 3.50% Houston Light & Power Utility 44,673,030 3.46% Solvay Polymers Corp. Chemical Plant 37,068,510 2.87% Occidental Electrochemical Chemical Plant 32,582,120 2.52% Dow Chemical Co. Chemical Plant 20,689,240 1.60% Atofma Petrochemicals Inc. Chemical Plant 20,215,320 1.56% Oxy Vinyls LP Chemical Plant 19,717,000 1.53% Dupont Dow Elastomers Chemical Plant 15,954,160 1.23% $ 347,858,250 26.92% Source: City of La Porte Tax records. 119 0. 0 Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Sources: City of La Porte, Texas Demographic Statistics Last Ten Fiscal Years Population (1) 29,293. 29,707 30,464 31,045 31,859 32,658 34,191 31,880 32,356 32,910 School Enrollment (2) 7,591 7,384 7,427 7,458 7,353 7,415 7,477 7,645 7,772 7,732 Table 11 Unemployment Rate (3) 7.2% 6.6% 6.1% 4.0% 5.3% 4.3% 4.4% 3.9% 4.6% 5.6% (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) Harris County unemployment rate by calendar year from the Texas Employment Commission. note: The Census information is based on estimates provided by the Census Bureau. The Census was performed in 2000 that is why there is a disparity between 1999 & 2000. 120 City of La Porte, Texas Property Value, Construction and Bank Deposits Last Ten Fiscal Years (Unaudited) Commercial Residential Construction Construction _ Bank Deposits . Fiscal Number Number Number Year of Units Value of Units Value of Units Amount 1993 20 6,544,482 206 15,855,170 2 164,882,129 1994 16 1,768,068 143 15,064,828 2 181,829,440 1995 25 6,024,751 152 12,889,457 3 185,050,239 1996 21 6,443,359 181 15,166,761 2 176,891,604 1997 52 9,189,192 199 17,910,021 3 220,345,717 1998 24 10,682,637 258 _ 32,216,337 3 293,810,442 1999 46 20,944,265 282 33,741,959. 2 275,951,399 2000 25 8,255,364 290 17,891,727 2 304,034,393 2001 31 9,679,778 155 200-037,910 2 328,478,701 2002 31 7,149,145 146 21,222,481 2 325,832,577 Source: City of La Porte records, local financial institutions and the Harris County Appraisal District. Note: (1) 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. 0 Table 12 Property Value(l) 1,055,973,610 1,050,687,200 1,076,592,180 1,135,711,920 1,191,363,342 1,231,486,330 1,277,210,883 1,525,166,060 1,422,739,210 1,504,630,980 121 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 • City of La Porte, Texas Miscellaneous Statistical Data September 30, 2002 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 • Table 13 August 10, 1892 Council/Manager 19 Square miles 164 2,109 . 4 12 82 1 75 10,957 Meters 3.1 Million gallons 231 Miles 186 Miles 88 Miles 18 463 377 76 11 501 7,732 122 0 THE STATE OF TEXAS COUNTY OF HARRIS CITY OF LA PORTE NOTICE OF PUBLIC HEARING In accordance with the provisions in Section 106-171 of the City of La Porte's Code of Ordinances, and the provisions of the Texas Local Government Code, notice is hereby given that the La Porte City Council will conduct a public hearing at 6:00 P.M. on the 14a` day of April, 2003, in the Council Chambers of City Hall, 604 West Fairmont Parkway, La Porte, Texas. The purpose of this hearing is to consider Rezone Request #R03-001, submitted by Mr. Eddie Gray, Trustee for Fairmont Park, JV., for property located along Myrtle Creek Drive and Spencer Highway and further described as TR 8A, 9A, 9A-7, & 9A 8; approximately 19.3576 acres situated in the W.J. Payne Subdivision, La Porte, Harris County, Texas. Applicant seeks to have this property rezoned from High Density Residential ' (R 3), Neighborhood Commercial (NC) and General Commercial (GC) to Low -Density Residential (R 1), to provide for single-family dwellings. A regular meeting of the City Council will follow the public hearing to act upon the public hearing items and to conduct other matters pertaining to the Council. Citizens wishing to address the Council pro or con during the public hearing are required to sign in before the meeting is convened. CITY OF LA PORTE Martha Gillett City Secretary This facility has disability accommodations available. Requests for accommodations or interpretive services at meetings should be made 48 hours prior to the meeting. Please contact City Secretary's office at (281) 471-5020 or TDD Line (281) 471-5030 for further information. i rHE STAT OEXAS COUNTY OF HARRIS CITY OF LA PORTE NOTICE OF PUBLIC HEARING . In accordance with 'the provisions in Section 106- 171 of the City of .La Porte's Code of Ordinan- ces and the provisions of the Texas Local Govern- ment Code, notice is here- by given that the La Porte City,, -pun will conduct a publi h' a, g at 6:00 P . on the.714 d f ri 2003j in the Chambers�of Cityl, West Fairmont 4 arkway, La Porte, Texas. The pur- pose of this hearing is to consider Rezone Request #R03-001, submitted 'by Mr. Eddie Gray, Trustee for Fairmont Park, JV., of property located along Myrtle Creek Drive and Spencer Highway and fur- ther described as .TR 8A, 9A, 9A-7, $ 9A-8; approxi-. mately 19.3576 acres situ- ated in the W.J. Payne Subdivision, LaPorte, Har- ris County, Texas. Appli- cant seeks to' have this property rezoned from High -Density . Residential (R-3), Neighborhood Com- mercial (NC) and General Commercial (GC) to Low - Density Residential (R-1), to provide for single-family dwellings. A regular meeting of the City Council will follow the public hearing to act upon the public hearing items and to conduct other mat- ters pertaining to the Council. Citizens wishing to ad- dress the Council proor con during the public hear- ing are required to sign in before the meeting is con- vened. CITY OF,LA PORTE . Martha Gillett - City Secretary This facility has disability accommodations availa- ble. Request for accom- modations or interpretive services at meetings should be made 48 hours prior to the meeting. Please contact City Secre- tary's office at (281)471- 5020 or TOD Line (281)471-5030 for further uth Sth Strep e, Texas 77571 2S1-471-1234 Fax:2S1-471-5763 'Seri-hic, Tice Bayshore Area Sbice 1947' rte rlis 3 e undersigned authority, on this date )eared Karolyn Kellogg, a duly authorized I of The Bayshore Sun, a semi-v;eekly :blished and generally distributed in the te, Harris County, Texas and who ,'y sworn, swears the attached notice was ,-ie Bayshore Sun dated f:;'3130 Karolyn Kellogg Authorized Representative scribed before me tni_ 3 �` ° day of C , 2003 S-,nJ,_. E. Bumciarner f`Iot_ V Pub:'ic H_ rri_ County, Texas e� SANDRA E. BUMGARNER l�l a�PaY' lllllll ^A t� NOTARY PUBLIC. STATE OF TEXAS 1 P 'TFOFA MY COMMISSION EXPIRES `lull APRIL tltiltlll 30, 2006 1 le*11-I �!'T 1 . 0 0 THE STATE OF TEXAS COUNTY OF HARRIS CITY OF LA PORTE NOTICE OF PUBLIC HEARING (Correction) On March Z 2003, a notice of public hearing was published for a Rezone Request #R 03-001. This notice erroneously stated the zoning of the subject tract as General Commercial (GC) & High -Density Residential (R-3). This public notice seeks to correct this error and state the proper zoning as R-3, NC, and GC. In accordance with the provisions in Section 106-171 of the City of La Porte's Code of Ordinances, and the provisions of the Texas Local Government Code, notice is hereby given that the La Porte Planning and Zoning Commission will conduct a public hearing at 6:00 P.M. on the 201' day of March, 2003, in the Council Chambers of City Hall, 604 West Fairmont Parkway, LaPorte, Texas. The purpose of this hearing is to consider rezone requests, submitted by Mr. Eddie Gray, Trustee for Fairmont Park, JV. Rezone Request #R03-001, for property located along Myrtle Creek Drive and Spencer Highway and further described as TR 8A, 9A, 9A-7, & 9A-8; approximately 19.3576 acres situated in the W.J. Payne Subdivision, La Porte, Harris County, Texas. Applicant seeks to have this property rezoned from High -Density Residential (R-3), Neighborhood Commercial (NC) and General Commercial (GC) to Low -Density Residential (R 1), to provide for single-family dwellings. A regular meeting of the Planning and Zoning Commission will follow the public hearing to act upon the public hearing items and to conduct other matters pertaining to the Commission. Citizens wishing to address the Commission pro or con during the public hearing are required to sign in before the meeting is convened. CITY OF LA PORTE Martha Gillett City Secretary This facility has disability accommodations available. Requests for accommodations or interpretive services at meetings should be made 48 hours prior to the meeting. Please contact City Secretary's office at (281) 471-5020 or TDD Line (281) 471-5030 for further information. conduct otner matter per- taining to the Commission. THE STATE OF TEXAS . Citizenswishing ad- s'the Commission pro COUNTY OF HARRIS or con during the public, hearing arerequired sign CITY OF LA PORTE in before '.the meeting is . _. convened. NOTICE OF PUBLIC HEARING CITY OF LA PORTE (Correction). -"; Martha Gillett City Secretary On March 2, 2003, a no- tice of public hearing was 'This` /acility has disability published for a Rezone - ' accommodation available. . Request ,#R 03-001. This. Requests for accommoda- notice erroneously stated. !ions or interprelive-'serv- the zoning of the subject ices at meetings should be tract as General Commer- made 48 hours prior to the cial (GC) & High -Density meeting. - Please contact Residential (R-3).. , • This City Secretary's office at. public notice seeks to cor- (281)471-5020.'. or TDD rect this error and state the Line (281)471, 5030 for fur - proper zoning as R-3, NC, - . ther information. and GC. I� The BaYshore Area Sifice 1947' .16 Sao rdance with the arse• •� provt i s in Section 106- le undersigned authority, on this date 17 t of : La- )peared Karolyn Kellogg, a duly authorized Pdtte' C , e . O nan- ces, a d . ons'of 'e of The Bayshore Sun, a semi -weekly the T oval Govern ment Code,•notice Is here- geraubllshed and enlly distributed in the ode, by given that the La. Porte ;fte, Harris County, Texas and who Planning.and Zoning Corn-' ' mission will conduct,a pub=: UIy sworn, swears the attached notice was lic hearing at 6:06 P.M. on.; The Bayshore Sun dated U 3 -3 the 20th. day of ;March_, 2003, • in. . the Council Chambers, of City Hall, q04 West Fairmont Parkway, La Porte, Texas. The pui pose of. this, hearin4 js -.to consider rezone requests,' ` submitted by Mr. Eddie . Gray, Trustee for Fairmont. Park, JV. Rezone Request 41403- 001, fore property located alone. Myrtle Creek. Drive and Spencer Highway and further described as TR BA, 9A, 9A-7, & 9A-8; ap- proximately 19.3576 acres situated in the W.J._ Payne Subdivision,. La Porte', Har- ris 'County, .Texas: Appli- cant seeks to have this property rezoned "from High -Density Residential (R-3), Neighborhood Com- mercial (NC) and General Commercial (GC) to Low - Density (R-1), to provide for single-family dwellings. A regular meeting of the Planning and Zoning Com- mission will follow the pub- lic hearing to act upon'the public hearing items and to J J J Authorized Representative 2S1471-1234 Fay: 251-471-5763 ibscribed before me this / day of?r-2003 S-,- iJ = E. Bu,rngarner r`i1t=: y Public H=rri_s County, Texas (�1P!✓1111111✓,/lll!!!✓�CiCY„I./",/,ip ill r p�8� SANDRA E. BUMGARNER llS NOTARY PUBLIC, STATE OF TEXAS'S MY COMMISSION EXPIRES `tl p0F1�c APRIL 30, 2006 X O�ll,�llllllll✓l,/llll.IJlll-1 11 6 Staff Report March 20, 2003 Zone Change Request #R 03-001 Requested by: Eddie V. Gray, Trustee Fairmont Park, JV. Requested for: TRS 8A, 9A, 9A-7 & 9A-8, W. J. Payne Subdivision. Locations: Spencer Highway; Myrtle Creek Drive Present Zoning: Neighborhood Commercial (NC), General Commercial (GC), & High - Density Residential (R 3) Requested Zoning: Low -Density Residential (R 1) Background: The subject tracts comprise approximately 20 acres of land out of W. J. Payne Subdivision, LaPorte, Harris County, Texas. The 17-acre tract is bound on the north by the Creekmont Subdivision, on the south by Spencer Highway and the Harbour Bay apartments, on the east by the Big Island Slough, and on the west by Myrtle Creek Drive. The 2-acre tract is bound on the north by the Creekmont Baptist Church, on the south by Southtrust Bank, on the east by Myrtle Creek Drive, and on the west by vacant land. The applicant seeks a rezone from Neighborhood Commercial (NC), General Commercial (GC) and High -Density Residential (R 3) to Low -Density Residential (R 1) for single-family dwellings. Analysis: In considering this reques Plan elements: Land Use, Utility Infrastructure, and considered are as follows: t, Staff reviewed the following Comprehensive Thoroughfare System, Parks and Recreation, Residential Development. The specific issues Land Use -- Review of the City's Land Use Plan shows the subject'tracts developing as mid -to -high density residential with some commercial uses. Currently, the adjacent properties are a mixture of mid -density and single- fainily residential and commercial uses. The proposed rezone is appropriate with these uses. Transportation — The tracts in question gain access along Myrtle Creek Drive and Spencer Highway. Spencer Highway, a primary arterial with 100' ROW, can accommodate the additional traffic generated by future residential development. Myrtle Creek Drive, with a 60' ROW, is considered a minor arterial but can also accommodate additional traffic. AIN Zone Change Request #R 03-001 P & Z (3/20/03) Page 2 of 2 Parks and Recreation — Recreation facilities include three City parks located in the Creekmont, Glen Meadows, and Fairmont Park Central Section 2 subdivisions. While facility availability seems adequate, accessing these parks may prove challenging as all require travel on major thoroughfares i.e. Myrtle Creek Drive and Spencer Highway. In addition, future development plans should address pedestrian connectivity. The City's pedestrian plan incorporates Big Island Slough and Valley Brook Drive as components of the trail system that would connect the subject tracts to the Glen Meadows subdivision and park. Utilities — The infrastructure was not analyzed in detail to ensure that sufficient capacity exists. This analysis will occur when subdivision plats are submitted. In addition, the developer must provide any structures or improvements necessary to serve future development. Storm water drainage and detention is also an issue that will be carefully reviewed as a project develops. Staff recommends on -site detention for any future development. Residential Development — One of the Comprehensive Plan's goals is to promote attractive low -density residential neighborhoods. This could be achieved by applying neighborhood protection standards like screening, increased setbacks, and added open space. In addition, increased residential lot widths and increased building setbacks of adjacent nonresidential land uses along Spencer Highway could also minimize adverse impacts to the residential property. Additional conditions should be discussed during the platting process. Conclusion: Staff recommends that the Planning and Zoning Commission approve this rezone request, which represents the highest and best use, of the property. Granting the requested change would not be contrary to the goals and objectives of the Comprehensive Plan. Actions available to the Commission are listed below: • recommend approval of the zone change as requested;. • recommend denial of the zone change as requested; or • recommend approval of a modified version of the zone change. M a � .gyp �.: � : r�r .2� f�fr •.i�"� + yfy,�p'yd � '+ r .4 ,,g�•l\ ��•',�,. ,.t,,f:�'ti. � s^c FEE ..t �SJ ' �..' �a ,��e` ,' ♦ y_ S"�, � � '� .vi Ti I 1 x !i f r. t , .� ■ tr Fi ; •f.:c r, s `�•. x .r* � t_-,,.L�"�t' ' 1. �F .y�, '�,.4. �': a�A � "+s. 4 �,�};c �t � �.,��.�7� � Z _'�-+'TTt • "� i ;w�`�j•..e tl.• -� � vt i .t. pt i :.5�»`3 t , �' c �Ej j�` / it � !�r"y�■�y�,t` � `�' s j'�t � ;` � 1 t � -, g, ,.f. � .. r`� � 'PF� '» i . �J.b�:i• r�rf Y' ` Ay_ Xr�i.`r.t..y..�.y,� t���j��„�� 3 �,.�� i *,c J /r,.. J Li �� fey �,. � r° '1■�I ��T}{�f #r�s4 r �'tr""� fr��n:,,.�+�'c. Y»>� � F•: �. -.. fi-, 'a. ■ t- _5•,ems. -c. ,ram-�•..+ F �-c•,J � .� t� tit L,rPRQPO$EQ r, � Syr x' '`. / � y `� ., r+�,: ,: ,. :.. i -. c - : 1 � � L � � ..-:.. r'� 'rj� . .:. :..� . a'ti�v '"�. - • rn•�,i":_�t�:-�'5.."�fa�S�ii6iiy E .-�"a'.r-e:'kt�,� d` ' ij� 3.,• •..a �tr+�,-, `5 tsp°4 -4r- �r33�r 3 r �'. . { �rol •��, d"t F � � 'F73�¢f � R'C- :tir tl .,� 1rh„ a 7 f a a J�j. rid. !�-+�� -•zL '7t .:.-i. ..o!' KgrE-• •c a ve � . "�� -�! � �oef �° �' � •"Ga.., �q,t ' � ' F'i' � r 4 !lam`' a � E+,.'k+6. ,yi. s f :�`�'. -�+'C� i� Ej Y,��'-�= •�, ••t�.�j. Vz "i � • t (�+ ems. � < ,`�r`'�! `�'h s`r j�' n' • ■ . slot IIV. .. r1 u4 City- of La Porte Established 1892 "PLICATION FOR - ZONE CHANGE REQUEST Application No.: o3 — G' 01 OFFICE USE ONLY: FEE: 1100.00 Date Received:_ /�� _. �•� Receipt No.: �. 7//,•9 -7 () Site Plan - () Minor Development Site Plan ()1b1* r Development Site Plan () General Plan () Site Plans Submitted on Appliant's Name: EdkGt%P, - V. Address: 11'3 vC Ph: 41 677 f LoL Date: � 65 Signature: Owner's Name: i `E . _ - 61- C1-L-t . Address: ' - - . ) - Ph: Property Legal Description: `7A, is Attached P c. I AM THE OWNER OF THE HEREIN DESCRMED PROPERTY AND IS AUTHORIZED TO FILE THIS APPLICATION ON MY: EHALF. Date: 02 — D.61 S e ✓, — ignature• -- � 1 Zone: 12`� -+' G'-'CR-equested Zone Change: I SIC No: Proposed Usage: :.G L( -- +`'� 1-- �Z-�„Sc C=-V11 LPL; OFFICE USE ONLY 1) Planning & Zoning: (a) Preliminary hleeting - (b) Public HearinglNg. - Recommendation: Applicant Notified of Date(s): ( ) Ist Ibltg. () 2nd Mtg. Adjoining Property Owners Notified: 2) City Council.:. (a) Regular Meeting - (b) Public Hearing/hitg. - Approved () Adopted by Amendment Ord. #1501 - Denied ( ) p" B,1x►tt', 4t..�r,�..T.�.��.'s;:•itt;-t��,;t.;�„o 0 0 A Meeting of the La Porte Planning & Zoning Commission (Type of Meeting) Scheduled for March 20, 2003 (Date of Meeting) to Consider Rezone Request #R 03-001 (Type of Request) I have received notice of the above referenced public hearing. I am in FAVOR of granting this request for the following reasons; I am OPPOSED to granting this request for the following reasons: RECEIVED MAR 1 9 "nm PLANNING �LPT, e ease t Address LAO > Sire City, State, Zip A Meeting of the La Porte Planning & Zoning Commission (Type of Meeting Scheduled for MAR 1 9 2003 March 20, 2003 (Date of Meeting) to Consider Rezone Request #R 03-001 (Type of Request) I have. received notice of the above referenced public hearing. I am in FAVOR of granting this request for the following reasons: I am OPPOSED to granting this request for the following reasons: 5,i�i4i� Ad dress ZZS City, State, Zip ' 0 • A Meeting of the La Porte Planning & Zoning Commission (Type of Meeting) Scheduled for March 20, 2003 (Date of Meeting) to Consider. Rezone Request #R 03-001 (Type of Request) I have received notice of the above referenced public hearing. I am in FAVOR of granting this request for the following reasons: ilentS I am OPPOSED to granting this request for the following reasons: Z., N e(pl ase print) d Signature RECEIVED MAR 17 2003 PLANNING DEPT. 2 0 ,�,/ Address City, State, Zip A Meeting of the La Porte Planning & Zoning Commission RECEIVED (Type of Meeting) MAR 17 7Q�.. Scheduled for March 20, 2003 PLANNING DEPT. (Date of Meeting) to Consider Rezone Request #R 03-001 (Type of Request) I have received notice of the above referenced public hearing. I am in FAVOR of granting this request for the following reasons: 10 .l n_ . . . c1% IYA P,#" I am OPPOSED to granting this request for the following reasons: Name (please print) Sigma . 1.1 #%j1.4r ?b��� Ov�PSLL Address n ,z && I . City, State, Zip • A Meeting of the La Porte Fanning & zoning Commission RECEIVE (Type of Meeting) Scheduled for MAR 17 2003 Much zo, 2003 PLANNING DEPT. (Date of Meeting) to Consider Rezone Request #R 03-001 (Type of Request) I have received notice ofthe above referenced public hearing. I am OPPOSED to granting this request for the following reasons: City, S14C, Zip • is City of La Porte Established 1892 TEXAS March 21, 2003 Honorable Mayor Norman Malone and City Council City of La Porte Re: Rezone Request #R03-001 Dear Mayor Malone: The La Porte Planning and Zoning Commission, during its March 20, 2003, meeting, held a public hearing to consider Rezone Request #R03-001. The applicant, Eddie V. Gray, Trustee, Fairmont Park, JV. seeks to rezone approx. 20 acres of land just north of Spencer Highway and along Myrtle Creek Drive. The property is described as TRS 8A, 9A, 9A-7 & 9A-8, W. J. Payne Subdivision, LaPorte, Harris County, Texas. The applicant seeks to have the property rezoned from Neighborhood Commercial (NC), General Commercial (GC), and High -Density Residential (R-3) to Low -Density Residential (R-1). The Planning and Zoning Commission has recommended approval of Rezone Request #R03-001. Respectfully submitted, Betty T. Waters Chairperson, Planning and Zoning Commission 604 W. Fairmont Pkwy. a U Porte, Texas 77571 a (281) 471-5020 ��iS1�1f[1f _yr EXHIBIT NO. 1 Ordinance 0 • REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested A ril 14 2 Requested By: M. Gillett Department: CSO Q — Report: Resolution: Ordinance: X Exhibits: Letter Exhibits: Appropriation Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: YES NO SUMMARY & RECOMMENDATION Due to no candidates filing in opposition of Mayor Norman L. Malone, District 2 Council Member Chuck Engelken and District 3 Council Member Howard Ebow, the City of La Porte will be canceling the General Election scheduled for May 3, 2003. The attached ordinance and letter meets all the Election Code requirements for canceling the election. Action Required by Council: Approved the attached Ordinance canceling the City of La Porte General Election scheduled for May 3, 2003. Approved for City Council Agenda �13 - �3 ebra B. Feazel e, City Mojger Date 0 City of La Porte Established 1892 March 25, 2003 Hon. Mayor & City Council City of La Porte City Hall La Porte, Texas Re: 2003 Election Gentlemen: As the authority responsible for having the official ballot prepared, I hereby certify that the following candidates are unopposed for election to the offices shown opposite their names, to be held on May 3, 2003: Norman Malone, Mayor Chuck Engelken, Jr., Councilperson -- District 2 Howard R. Ebow, Councilperson -- District 3 I further certify that no proposition is to appear on the ballot. I further certify that no declaration of write-in candidacy for any of the above positions have been filed with my office. MAG:sw Yours very truly; Martha A. Gillett City Secretary City of La Porte EXHIBIT "A" P.O. Box 1115 o La Porte, Texas 77572-1115 0 (281) 471-5020 110 . 0 COUNCIL AGENDA ITEM Agenda Date Requested: April 14, 20W Lou Appropriation Requested By: Stephen I.. Barry of Funds: Fund 015 Department: Parks & Rrcreation Account Number: 0154892.81 a R lution• r ' X Amount Budgeted: $100,000 Exhibits: Ordinance No. 2003- Amount Requested: $30,820.46 Exhibits: Agreement (available CS Office) Budgeted Item: YES NO X Exhibits: SUMMARY & RECOMMENDATION In 2002 the City of La Porte was awarded a project by the Texas Department of Transportation, Statewide Transportation Program (TxDOT STEP) for beautification of SH 225 at it intersection with Sens Road, and subsequently entered into an Advance Funding Agreement with TxDOT on June 24, 2002. The agreement with TxDOT requires the City to hire an Architect to design the project and perform all the preliminary steps necessary to get the project design in line with TxDOT requirements. After the project is designed, TxDOT will hire and administer the actual construction contract portion,of the project. On September 23, 2002 the City opened Requests for Qualifications from four engineering firms for design of the project. After review and consultation with TxDOT representatives, negotiations began with Halff Associates, Inc. A contract has been prepared design of the project, and it is being presented tonight for your consideration. The agreement with Halff Associates, Inc. for $30,820.46 establishes a scope of work and specific requirements for the preparation and project design. The cost of design is shared, with the City paying for the design and TxDOT reimbursing the City for 80% of the total; the City's share for design will be $6,164. The agreement has been approved by TxDOT in principle, with confirmation of minority participation by Halff Associates, Inc. to be provided prior to execution of the contract. The City's share of funding is provided through Fund 015 monies as approved by Council on June 24, 2002. Action Required by Council: Consider approval of an ordinance authorizing the City Manager to execute an Agreement with Halff Associates for design of Beautification of State Highway 225 @ Sens Road pursuant to the City of La Porte's Advance. Funding Agreement with the Texas Department of Transportation, Statewide Transportation Enhancement Program, and authorizing $30,820.46 to fund the Agreement, with future reimbursement for the Texas Department of Transportation share of the Agreement. Approved for City Council Agenda Debra B. Feazelle, City Afoager Date City of Le Peale Interoffice Memeralndwm Toll 1111" Me Knox W. Askins, City Attorney Z April 2003 � A�f Stephen L. Barr, Director of Parks and Recreation SUBJECTe Ord2nance Authorizing Contract Between COLP and Halff Associates, Inc. — Professlan& Services Agmment Beftmen Ou mr and Lan&cape Architect for Design of Beautification of SH225 @ Sens Road, & Or+dinanceAuthorizing Agreement Betumen COLP and Quest Vouch Soccer Club for Use of Youth Soccer Facilities in La Porte Attached please find a proposed Ordtnance authorizing a contract as well as an Agreement Between OunieranclArchitectwith the above -mentioned firm for design of the State Highway 225 @ Sens Road Beautification Project. The contract is based on a City of Houston Contract provided to us by TxDOT as meeting their requirements for expenditure of federal funds. As usual I am requesting your assistance to review the ordinance and agreement so as to be ready to present to City Council at its meeting on 14 April 2003. There are three original executed copies of the agreement (one for TxDOT). Also attached please find a proposed ChAnance authorizing an agreement with Quest Youth Soccer Club, as well as the Agreement itself. The agreement is essentially the same as our past. agreement with minor changes to accommodate changing circumstances. . Should you require further information or have any questions, please contact me at (2e1) 470- 7275. Thank you in advance for -your assistance. SB/SH225 @ Sens Road Beautification, kwa, 0403 c: John Joems, Assistant City Manager 10 /ZC?Z�- A W. 6. OEM MEN Halff Associates, Inc. ENGINEERS • ARCHITECTS • SCIENTISTS • PLANNERS • SURVEYOR LETTER OF TRANSMITTAL TO: Mr. Stephen Barr DATE: City of La Porte 1322 S. Broadway AVO: LaPorte, TX 77572 FROM: Chip Perry PROJECT: Email: cperry @halff.com 3701 Kirby Drive, Ste. 1290 Houston, Texas 77098 (713)523-7161 EL ax 713)523 373 AR29M PARKS & RECREATION DEPT. April2 , WE ARE SENDING YOU ❑ ATTACHED ❑ Under separate cover via _ the following: ❑ Shop Drawings ❑ Prints ❑ Plans ❑ Drawings ❑ Specifications ❑ Copy of letter ❑ Change order ❑ Other: THESE ARE TRANSMITTED as checked below: ❑ For approval ❑ Approval as submitted ® For your use ❑ Approved as noted ❑ As requested ❑ Returned for corrections ❑ For review/comment ❑ Other: ❑ Resubmit _ copies for approval ❑ Submit _ copies for distribution ❑ Return _ corrected prints ITEMS SENT: Hi Steve, Here are the Certificates of Insurance and Lower Tier Participant Debarment Certification for the Contract. Let me know if you need anything else. COMMENTS: SIGNED: chip(Perry COPIES: ® FILE 0 OWNER 0 CONTRACTOR CCO-17 Form CCO 17 Lower Tier LOWER TIER PARTICIPANT DEBARMENT CERTIFICATION page I o 1 (ARCHITECTURAL, ENGINEERING AND SURVEYING CONTRACTS) OfTrompanuftn This certification is to be used by providers pursuant to 49CFR29 when any of the following occur: • any transaction between the provider and a subprovider (other than a procurement contract for goods and services), regardless of type, under a primary covered transaction. • Any procurement contract for goods or services when the estimated cost is $25,000 or more • Any procurement contract for goods or services between a provider and a subprovider, regardless of the amount, under which the subprovider will have a critical influence on or substantive control over that covered transaction. Such subproviders include principal investigators and providers of federally required audit services. A "procurement transaction" is the process of acquiring goods and services. A "nonprocurement transaction" is the granting of financial assistance to entities to assist in meeting objectives that are mutually beneficial to the provider and subprovider. A copy of this certification is to be furnished to authorized representatives of the State Or the U.S. Department of Transportation upon request. -00-- 41 4�¢ e_e_ #- , being duly sworn or under penalty of Name of Subprovider Representative— ,pedury under the laws of the United States, certifies that neither 4of-x OScApE Name of Firm 'nor its principals are presently • debarred, suspended, proposed for debarment • declared ineligible • voluntarily excluded from participation in this transaction by any federal department or agency Where the above -identified subprovider is unable to certify to any of the above statements in this certification, such prospective subprovider shall indicate below to whom the exception applies, the initiating agency, and dates of action. Exceptions will not necessarily result in denial of award but will be considered in determining contractor responsibility. Providing false information may result in criminal prosecution or administrative sanctions. Exceptions: �gn re of Certifyi Su rovider Representative ' • ' � � • • . _�. .... � •. _ ....... Title 6.t�� ` •3 zDo� Date aMertification BDCERTIFICA OF LIABILITY INSUR E 04/0312o 3 PRODUCER 281-448-3040 COMPANY BENEFIT SERVICES, INC. THIS CERTIFICATE IS ISSUED AS A. MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 507 NORTH SAM HOUSTON PARKWAY SUITE 260 ' HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES- BELOW. HOUSTON, TX 77060 INSURERS AFFORDING COVERAGE INSURED INSURER A: THE HARTFORD -JOANN JAREAU LANDSCAPE ARCHITECHTS INSURER B: 2111 LAMONTE LANE INSURER C: HOUSTON, TX 77018 INSURER D: INSURER E: COVERAGES - THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. BISR TYPE OF INSURANCE POLICY NUMBER POLICY EFFEATEILUMCTIVE POLICY EXPIRATION LIMITS A GENERAL LIABILITY X COMMERCIAL GENERAL LIABILITY CLAIMS MADE FX] OCCUR 57 SBM AT6995 12/3102 ' 12/3t03 EACH OCCURRENCE $ 500,000 FIRE DAMAGE (Any one fire) . $ 300,000 MED EXP (Any one person) $ 10,000 PERSONAL 8 ADV INJURY $ 500,000 GENERAL AGGREGATE $ 1,000,000. GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO LOC PRODUCTS - COMPA012 AGG $ 1,000,000 AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS COMBINED SINGLE LIMIT (Ea accident) $ BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC AUTO ONLY: AGG $ $ EXCESS LIABILITY OCCUR CLAIMS MADE ' DEDUCTIBLE RETENTION $ - EACH OCCURRENCE $ AGGREGATE $ S $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY • TWC STATU- OTH- ORY LIMITS ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ E.L. DISEASE - POLICY LIMIT S OTHER DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS ADDITIONAL HALFF 3701 KIRBY STREET SUITE 1290 HOUSTON, TX 77098 ATT: CHIP PERRY 713-523-4373 (7/97) SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR ® ACORD CORPORATION 1999 s CCO-17 Form CCO-17 Lower Tier LOWER TIER PARTICIPANT DEBARMENT CERTIFICATION Page 1 of11 r.,ra (ARCHITECTURAL, ENGINEERING AND SURVEYING CONTRACTS) o!T ion . This certification is to be used by providers pursuant to 49CFR29 when any of the following occur: • any transaction between the provider and a subprovider (other than a procurement contract for goods and services), regardless of type, under a primary covered transaction. • Any procurement contract for goods or services when the estimated cost is $25,000 or more • Any procurement contract for goods or services between a provider and a subprovider, regardless of the amount, under which the subprovider will have a critical influence on or substantive control over that covered transaction. Such subproviders include principal investigators and providers of federally required audit services. A "procurement transaction" is the process of acquiring goods and services. A "nonprocurement transaction" is the granting of financial assistance to entities to assist in meeting objectives that are mutually beneficial to the provider and subprovider. A copy of this certification is to be furnished to authorized representatives of the State Or the U.S. Department of Transportation upon request. ker-eGEGNE TesrA ye , being duly sworn or under penalty of Name of Subprovider Representative perjury under the laws of the United States, certifies that neither �/ Gr�PJtd 1rIG - me of Finn nor its principals are presently • debarred, suspended, proposed for debarment • declared ineligible • voluntarily excluded from participation in this transaction by any federal department or agency Where the above -identified subprovider is unable to certify to any of the above statements in this certification, such prospective subprovider shall indicate below to whom the exception applies, the initiating agency, and dates of action. Exceptions will not necessarily result in denial of res..ponsibility_Providing false information may re Exceptions: but will be considered in determining contractor criminal prosecution or administrative sanctions. Titi /31 1673 Date of Certification Client#: 16489 UNITEENG ACORD- CERTIFIC/SE OF LIABILITY INSUSANCE • I 0ATE(MM/ Dom) PRODUCER USI Insurance Services of TX P.O. Box 218060 Houston, TX 77218-8060 281 496-3400, THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE - -NAIC # - INSURED _..._ United Engineers, Inc. : 8303 Southwest Frwy. Ste.#600 Houston, TX 77074 i ' — INSURER A: Hartford Lloyds InSuianCe Company -16535 INSURERB: Hartford Underwriters Insurance Comp INSURERC: Zurich American Insurance Company -- INSURER D { INSURER E: ,COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR NSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE IMMIDDIYYI POLICY EXPIRATION DATE MMIDD LIMITS A GENERAL LIABILITY 61 SBALD6770 03/08/03 03/08/04 EACH OCCURRENCE $1 000 000 X . COMMERCIAL GENERAL LIABILITY CLAIMS-MADET ]-OCCUR DAMAGE TO RENTED irrencel $300 000 MED EXP (Any one person) $10 000 PERSONAL & ADV INJURY $1 000 000 GENERAL AGGREGATE s2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG s2,000,000 POLICY SECT LOC AUTOMOBILE LIABILITY ANY AUTO COMBINED SINGLE LIMIT (Ea accident) $ BODILY INJURY (Per person) $ ALL OWNED AUTOS SCHEDULED AUTOS _.... _ BODILY INJURY (Per accident) HIRED AUTOS • NON -OWNED AUTOS — •' ; - • - .__...._ PROPERTY DAMAGE (Per accident) ... $ - GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ ANY AUTO $ AUTO ONLY: AGG A EXCESSIUMBRELLA LIABILITY 61 SBALD6770 03/08/03 03/08/04 EACH OCCURRENCE $1 000 000 Xi OCCUR CLAIMS MADE AGGREGATE $1 000 000 $ $ DEDUCTIBLE $ X RETENTION $ 10000. B WORKERS.COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE 61 WECDU4477 "' 03/08103 -- 03/08/04 WC STATu- OTH- TnRY LIMITS ER E.L. EACH ACCIDENT $1 000,000 E.L. DISEASE - EA EMPLOYEE $1,000,000 OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT $1.000,000 C OTHER Professional EOC398360500 04/01/03 04/01/04 $2,000,000 per claim Liability $2,000,000 annl aggr. DESCRIPTION OF OPERATIONS / LOCATIONS I VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS *except in the event of non-payment of premium Prof Liab: The aggregate limit is the total insurance available for claims presented within the policy period for all operations of insured. The limit will be reduced by payment of indemnity and expense. (See Attached Descriptions) Halff Associates, Inc. Attn: Chip Perry 3701 Kirby Drive, Ste. 1290 Houston, TX 77098 ,*.pr-N/Z5PD4 l7_121" a R Wa\ 1 Lei � I LO ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL -IQ* DAYS WRITTEN ;E TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR AUTHORIZED I1liVRY iu %Auu "WO) •1 OT 4 $,T 331i30/M73UL64 727 'V• FIVVKIJ L UKrVKAI IVIY INGO 04/14/2003 13:25 7135411002 ALLSTATE INSLRANCE PAGE 02 CERTIFICATE OF INSURANC PAGE 1 OF 5 ALLSTATE INSURANCE COMPANY HOME OFFICE—NORTHBROOK, ILLINOIS mome and Address d "m Name and Addrm of Insured wbom tAb 1'rcrtNkmft is hlwd UNITED ENGINEERS, INC. HALFF ASSOCIATES S.W.FRWX.,#600 3701 KIRBY DRIVE .8303 HOUSTON, TX 77074 STE.1290 HOUSTON, TX 77098 INSURANCE ATTN:CHIP PERRY IN FORCE TMCW IKWRANCA POLICY MINIS UMns OR L111muw PoLICV NUIRMR EXPIMTION oATra MID MAZAM . Nastnlett'e Caaapas oven STATUTORY 0 Basphyars' Liom y STANDARD 5 PER ACCIDENT (6raplot WI Li*rdY any) *Applies only in following 60te(s)! AYmme6Na uals8Raft IrtJ u Bach I PrWw Da 01NNEo ONLY 9ASIC : PERSON .� ;; ;N . °;' ; ;,: . , .MI . 0480 7093 03/08/03 0 110114 MINED ONLY cls ACCIDENT'>i TO HEMISIVE 0 3 / 08 / 04 0 N INO ONLY two : OCCURRENCE t illM and propet vp pammoo enot Limit) ® OWNED. NON -OWNED ❑ s 1, 000, 000.00 I= ACCIDENT AND HIRED EACH OCCURRENCE o nerd Usbft Rea my Domes PREMISES—O.l.&L ❑SCHEDULE # EACH riWn f •iR �.�• PERSON w�i :7::1: y?;•4r OMATIONS—M.BC. i EACH ACCIDENT s ELEVATOR ❑ CONR'BE- ; EACH OCCURRENCE S PRODUCTS/ HENSIVE $ A6BM M10O. COMP.OpTNL $ COMPLETED OPERATIONS A 61MATE Pl10TEUM (Inde- ❑ SPECIAL OPERATIONS S nt conbwAorr) Endorsed to eaere• la LT1-PEa1L AQNtWTE PROTECTIVE s pimjwyd aoN ind between A29MTE Insured end CONTRAOTUAL 'ngle Limb S EACH ACCIDENT $ EACH OCCURRENCE THE DIRECTOR MA APPROVE HE FORM OF THE INSURANCE PI ES, BUT MOTH NG THE DIRECTOR DOES 0 FAILS TOIS DO RELIEVES LANSCAPE ARTCHITEC FROM ITS DUT ES TO PROVIDE THE REQ IRED COVEAGE UNDER THIS CONTRACT. THE ZRECTOR'S ACT ONS OR INACTIONS DO NO WAIVE TH CtTY;S RIGHT UNDER THIS CONT T. EACH POL CY MUST NAME THE C TY (AND I OFFICERS, AGENTS, AND EMPLO ES) AND THE XAS The pollcks klaslitied stave by Ilumber era in force on the dabs indicted batau. IlEtth respatl m a number eMOnd under pePicy number, the pa of insurance shown at its Id t is 10 fora, but uay with respod to such cif Otis heserds, and under sneh Qoliry loons, far vdikh as "X" is entand, wA�'ed howewar, to ell the terms the pots having reterenoe thereto. The Haut: d liabi y 1or sneh iasoraatt ire oey as shawo atavo. Th�a Cetliflada of Inwrona aeithar affiniistively a0r nsstivey amends, estends, iwr aRers the wvera aMordad by the poUey � pRob' 'ace iwmbel'Od io tbis CerliR�e. Is fhe cant of radadiea of average or mioNlatisn d said ovlioas. the Alhtale Imarmss Compasy will make aq raaasaabte ellart tv seed aotiae of such reduction or canoellaboa bo the artate holder N tM address shown above. THIS CERTIFICATE tS ISSUED AS A MATTER OF INFORMATIOf(O�tLY AND CONFERS NO RIGllT3 UPON THE CERTtfICATE HOLDER. D& APRIL 11, 2003 I9- 04/14/2003 13:25 7135411002 CERTIFICATE ALLSTATE INSURANCE COMPANY Nsaue and Address of POVtrod t%v§M�l�S,, INC. 3701 KIRBY DRIVE STE 1290 HOUSTON, TX 71098 ATTN:CHIP PERRY rIN ALLSTATE INSURANCE 4F INSU RANC? PAGE 03 PAGE 2 OF 5 HOME OFFICE--NORTHBROOK, ILLINOIS Name and Address Of I Itlured UNITED ENGINEERS, INC. 8303 S.W.FRWY., # 600 HOUSTON, TX. 77074 TYPE OF INISURAM POLICY FORMS UIIIY$ OF UABIUYY POUC'Y NUMBER UNRAWON DATE AND NA:ARDS W4 amttew'a C, paliMRlas STATUTORY m 610ploFers' LIel10N: STANDARD ; PER ACCIDENT (Rnpioyees Usb ty o dy) *Applip arty in following staWs): AabasltsbN@ U&N ❑BASIC Badib b**Y EaeADann" I ❑ OWNED ONLY s PERSON ps 048027093 03/08/03 NO114 M M ONLY ❑ COMPRE- ; ACCIDENT TO HENSIYE 03 / 08 / 04 HIRED ONLY ❑81IIASE S OCCURRENCE , flfedft bsw► and (Sin a UrnI6 ❑ oYY m Now-MED ❑ S , 00 , a 0. 0 RACH ACGDENT AND NIRED s EACH OCCUMIENCE ago" Lkdd tt ❑ SCHEDULE 0oft hd Deane ❑ PREMISEES-41.&T. S EACH PERSON ' " +�, ; EACH ACCIDENT ❑ OPERATIONS-RI.&L ; ; EACH RBE OCCURoom S ❑ RLEYATOR ❑ COMPRE• ASIMELPOK ❑ PRODUCTS/ ; em. OpTfti AGGRIZATE OOMPLUED OPERATIONS ❑ PRNECTIVE (Inds. [] SPEgAL a . I OPERATIONS $ '� ant OoubecrmrU Endorsed to CGyer ^LTI-PgNL L..1 ! AGGREGATE ' 4 PROTR:YIVE ; contract betemn 10 AGNISIATE i* Inslnod and .! .. • CONTRACTUAL lkdffl Imjvq amd Ussu a UmM i EACH ACCIDENT i EACH OCCURRENCE doted i AQGMWA'TE POLICY AND ALIT ENEWAL O R PLA MENTS.L SCAP IT T SHALL BE SPONSIBLE FOR AND BEAR AN CLAIMS O LOSSES TO THE EXTENT OF ANY DE UCTIBLE AMO TS AND WAIVES ANY CLAI IT MAY HIVE FOR THE SAME AGAINST THE CIT , ITS OFFICE" S, AGENTS: OR EMPLOYEES. E CH POLICY UST STATE THAT IT MAY NOT B8 C CELED, MATE IALLX MODIFIED, OR NO -RENEWED NLESS THE INSURANCE COMPANY GIV S THE DIRECT R 30 D YS ADVANCE WR TTEN NOTI E. EACH POLICY MUST CONTAIN AN ENDORSEMENT O THE TMg idtntiliedown A its left is infant with mnneethereto. Tht lishil�allsrded by y or Iapldtaed hI this In the evetd of rsduriisn coverfge or wnoelbtion of acid poliaet; the AYstate Inaersnw Company will iaske all retaoaaWs eRoR to seed nottoe of sash radudion or wncellslion N the ee Icde holder st the address shown:tiwe. THIS CERTIFICATE IS ISSUED AS A 1JA7T1R OF INFORMATIONJONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE MOLDER Oaln APRIL 11, 2003 19— Due to the volume of this contract, a copy is available for your review in the City Secretary's Office ATTACHED You will find ATTACHMENT IIC" outlining the scheduled activities and implementation dates Attachment C Preliminary Project Design Schedule of Activities SH 225 @ Sens Road Landscape Improvement N O N O M O M O M O M O M O M O M O M-qr O O I. O `t O t!' O 'Cr O O r O r N r- N O r N •- O O O r N r TAS K,�?8�i 6 r 4 4 to O w O w O 00 O w O N T r o N 0 Ct 0 Ct 0 et 0 to 0 Gr4�. (+ "`�:4'�� 1Gaa ' �' (r 1R �.'x'it—b ) $ i • .S }..i yi 1ish+4 gg L tt. 17 ��ujf7J�,SQQ/InteSr�rie,,w,s/SyeleMct fjp4 �v2 ,',,SPL�t£�ME^N irsf>Ci��A-a�4I E°6�ti kC9 ;S�Contract Ne /CounC1IA „ roVal3,, h; �; 3 {�� �{[�T k�Yj�l� �9 rn��{� U,,� E �`� ij �• P .(�d?R E ,;S "ft �� s y�R���r 'V R r�, i� i DESIGNPHAS,E'�,�-€,:;4as._IF,.k, >' .',;:Eu,, .�„i ,. o �a �;1 Kickoff Meeting! E' SUBSurve' Halff E Desi n Committee Mtgs /Bi, Weekl �. Conce tuaL..Planting Desi n .r Kal Preliminar %Desi n,TxDOT M/ a=' Irngat�on Design'and Desi n.;Corrections Final Design Review ..90 %' I F"fib" Cl ri anion and CD's CorrecI.tions ina1 Clon�ce tuaiDest' n Review °i{3i3°lo ; `� �• ���n�al �C�esi n Reviews-��,,exasDOT Weekl, Bi Coa�struc'tionRe�orts,r',� E ,z `�C�'af � ect=�Pun�ch�last� ���P, •,,,'�;i $ � r s'Ym,w3y?f1'. Pro ;ct Com I,�ton. • 0 ,C I III UG •- CITY OF LA PORTE RETIREE MEDICAL COVERAGE Retiree medical coverage outlined below shall have an effective date of May 22, 2000. ELIGIBILITY Medical Plan shall be changed as follows: You may also participate in this plan if you are a retiree of the City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System, have completed at least ten (10) years of service with La Porte and currently employed -by the City at the time of retirement, and do not work for another employer after retiring from the City. Disability retirement requires at least five (5) years of service. . The retiree and retiree dependent coverage will be primary for those participants not yet qualified for Medicare. The coverage will be secondary for those retirees and retirees' dependents who are Medicare eligible. Retiree paid premiums shall be reduced by 50% at the time the retiree becomes Medicare eligible. If a covered retiree dies, dependents may continue coverage until the earliest of .the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare. 'Surviving dependents shall pay the same dependent coverage rate that they paid, prior to death. For those retirees who are actively employed and have employer sponsored health care coverage available through their employer, the retiree health benefit through the City shall cease. For those retirees who are self-employed, occupational illnesses or -injuries shall not be covered. Employees retiring from the City, and who work for another employer offering health care coverage, shall not be eligible for retiree health coverage from the City after their subsequent employment ends, regardless of the length of service with the subsequent employer. Employees retiring from the City who delay their retirement annuity shall not be eligible for retiree health coverage from the City. Employees who retire with veteran benefits from the federal government, and otherwise meet the requirements for retiree coverage with 'the City, may waive their coverage with the City and choose.to cover their dependent only. The cost for this dependent coverage shall be the same as the active employee rate. The City of La Porte utilizes a self -funded medical plan so there are no formal premiums paid for health insurance. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. Cost to the retiree shall be based on a two-tier plan: • 0 Tier 1 The percentage paid by the retiree shall be based on the budgeted amount discussed in paragraph one of this section. Years of Service with La Porte Retiree Cost City Cost At least 10 but less than 15 55% 45% At least 15 but less than 20 25% 75% At least 20 0% 100% Dependent coverage shall be charged at the active employee rate for dependents. Tier 2 Any employee meeting the eligibility requirements for disability retirement under the Texas Municipal Retirement System Act shall be eligible for medical benefits, provided they have worked for the City of La Porte for five (5) continuous years. Costs associated with retirement under this tier shall be the same as Tier 1, with the addition of: At least 5 but less than 10, retiree cost shall be 75%. Dependent coverage shall be charged at the active employee rate for dependents. Eligible dependents include: your lawful spouse who is legally married to and living with you; natural children; stepchildren; children who, before reaching the age of 18 -are either adopted by you or placed in your home for adoption; or other children for whom you have care, custody and control under court decree. A dependent child must be unmarried and rely on you for primary support and maintenance. Dependent children remain eligible until age 19, or until age 25 if enrolled as a full-time student in a university, college, vocational or secondary school. A dependent child under the age 25 who has graduated from a university,- college, vocational or secondary school but has not become gainfully employed will be covered for an additional 2 months from graduation. ORDINANCE .NO. 2 0 0 0- A 4 d 1 AN ORDINANCE ADOPTING AN AMENDMENT TO THE CITY OF LA PORTE MEDICAL PLAN; BY PROVIDING FOR THE TERMS AND CONDITIONS OF RETIREE MEDICAL COVERAGE; PROVIDING AN EFFECTIVE DATE OF SAID AMENDMENT; PROVIDING A SEVERABILITY CLAUSE;, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED .BY THE CITY COUNCIL.OF THE CITY OF LA PORTE:. Section 1. The City of Medical Plan is hereby amended, by adding the terms and conditions of "Retiree Medical Coverage" in form attached hereto as Exhibit "A", incorporated by reference herein, and made a part hereof for all purposes. Section 2. The "Retiree Medical Coverage" provisions, as contained in this Ordinance, shall be effective January 1, 2000. Section 3. If any section, sentence, phrase, clause, or any part. of any section, sentence, phrase, or clause, of this ordinance 1 . or amendment of the City of La Porte Personnel Policy Manual hereby adopted, shall for any reason,. be held invalid, such invalidity shall not -affect the remaining portions of this Ordinance, or said Personnel Policy Manual, and it is hereby, declared to be the intention of this city council to have passed each section, sentence, phrase or clause, or - part thereof, irrespective of the fact that -any other section, sentence, phrase or clause, or part thereof, may be declared invalid. Section 4. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at.a place convenient to the public at the City Hall of the City. for the time required by law preceding this meeting., as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject I ' matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section S. Ordinance No. 99-2369, is repealed on the effective date of this Ordinance. Section 6. This Ordinance shall be effective January i, 2600, and'it is so ordered. PASSED AND APPROVED, this 22nd of May., 2000. CI OF LA PORTE By: orman L. Ma one,. Mayor ATTEST: Mar a Gillett, City Secretary APP Knox W. Askins, City Attorney 2 EXHIBIT "A" 0- RETIREE MEDICAL COVERAGE Retiree medical coverage outlined below shall have an effective date of January 01, 2000. ELIGIBILITY Medical Plan shall be changed as follows: Disability retirement requires at least five (5) years of service. The retiree and retiree dependent coverage will be primary for those participants not yet qualified for Medicare. The coverage will be secondary for those retirees and retirees' dependents who are Medicare eligible°.Ret�reeri=iaidEnem�utns_sialt Ie:cecFfc �cf`E(l°f If a covered retiree dies, dependents may continue coverage until the earliest of the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare Su�kv�ircce; SaIpa ie,sa e:rtclent.dveaae.t`t For those retirees who are actively employed and have employer sponsored health care coverage available through their employer, the retiree health benefit through the City shall cease. For those retirees who are self-employed, occupational illnesses or injuries shall not be covered. .1� jgck I ".�ef� PREMIUMS The City of La Porte utilizes a self -funded medical plan so there are no formal premiums paid for health insurance. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. Costs to the retiree shall be based on a two tier plan: r• c Tier 1 The percentages paid by the retiree shall be based on the budgeted amount discussed in paragraph one of this section. Years of Service with La Porte Retiree Cost City Cost Dependent coverage shall be charged at the active dependent rate. Tier 2 Any employee meeting the eligibility requirements for disability retirement under the Texas Municipal Retirement System Act shall be eligible for medical benefits, provided they have worked for the City of La Porte for five (5) continuous years. Costs associated with retirement under this tier shall be the same as Tier 1, with the addition of: At least 5 but less than 10, retiree cost shall be 75%. Dependent coverage shall be charged at the active employee rate. ♦ Eligible dependents include: your lawful spouse who is legally married to and living with you; natural children; stepchildren; children who, before reaching the age of 18, are either adopted by your or placed in your home for adoption; or other children for whom you have care, custody and control under court decree. A dependent child must be unmarried and rely on you for primary support and maintenance. Dependent children remain eligible until age 19, or until age 25 if enrolled as a full- time student in a university, college, vocational or secondary school. A dependent child under the age of 25 who has graduated from a university, college, vocational or secondary school but has not become gainfully employed will be covered for an additional 2 months from graduation. ORDINANCE NO. 99-23�1 AN ORDINANCE ADOPTING AN AMENDMENT TO THE CITY OF LA PORTE MEDICAL PLAN; BY PROVIDING FOR THE TERMS, AND CONDITIONS OF RETIREE MEDICAL COVERAGE; PROVIDING AN EFFECTIVE DATE OF SAID AMENDMENT; PROVIDING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF.. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:- Section 1. The City of Medical Plan is hereby amended, by adding the terms and conditions of "Retiree Medical Coverage" in form attached hereto as Exhibit "A", incorporated by reference herein, and made a part hereof for all purposes. Section 2. The "Retiree Medical Coverage" provisions, as contained in this -Ordinance, shall be effective January 1, 2*001. Section 3. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this ordinance or amendment of the City of La Porte Personnel Policy Manual hereby adopted, shall for any.reaso'n,..be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, or said Personnel Policy Manual, and it is hereby declared to be the intention of this city council to have passed each section, sentence, phrase or clause,..or part thereof, irrespective of . the fact that any other section, sentence, phrase or clause, or part thereof, may be declared invalid. Section 4. The City Council officially finds, determines,. recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a -place convenient to the public at the City Hall of the C3 ty. for the time required by law preceding this meeting,. as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required ,. 99-z 369 by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 5. This Ordinance shall be effective January 1, 2061, and it is so ordered. PASSED AND APPROVED, this 13th day of December, 1999. CI OF LA PORTE By: Norman L. alo e, Mayor ATTEST: a tha A. Gillett, City Secretary .Knox W. Askins, City Attorney y 2 €XHIBIT A RETIREE MEDICAL COVERAGE ELIGIBILITY Medical Plan shall be changed as follows: "You may also participate in this plan if you are a retiree of the City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System and have .......::::....:...: . completed at least consecutive years of service with La Porte immediate) .prior to retirement. PREMIUMS The City of La Porte utilizes a self funded medical plan so there. are no formal premiums paid for health insurance. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. The current amount is $4,500 per employee. Costs to the retiree shall be based on a three tier plan: The first tier shall be based on a point system consisting of a combination of age and continuous years of service with the City of La Porte. Qualification for this coverage requires age and years of service to total at least 80. The City will pay 100% of coverage for eligible retirees. The retiree shall be responsible for paying for dependent coverage at the active employee rate r,Q, Example: New hire at 20 years of age - Qualifies at age 50 h 30 years o service. New hire at 40 years of age - Qualifies at age 60 with 20 years of service. r` Retiree Medical Coverage Page 2 r•- The second tier will be utilized for retirees not meeting the eligibility of the first tier. The percentages paid by the retiree shall be based on the budgeted amount discussed in paragraph one of this section. Continuous Years of Service with La' Porte At least 10 but less than 15 At least 15 but less than 20 At least 20 but less than 25 At least 25 but less than 30 At least 30 Retiree Cost . City Cost 70% 30% 60% 40% 50%0 50% 25% 75% 0 100% Dependent coverage shall be charged at the actives rate.--a�� P Any employee meeting the eligibility requirements for disability retirement under the Texas Municipal Retirement System Act shall be eligible for' medical benefits, provided they have worked for the City of La .Porte for five (5) continuous years. Costs associated with retirement under this tier shall be the same as Tier 2; with the addition of: At least 5 but less than 10, retiree cost shall be 75%. eA Dependent coverage shall be charged at the activee. � 4 �4'1*- employee rate Eligible dependents include: your lawful spouse who, is legally married to and living with you; natural children; stepchildren; children who, before reaching the age of 18, are either adopted by your or placed in your home for adoption; or other children for whom you have care, custody and control under court decree: A'dependent child must be unmarried and rely on you for primary support and maintenance. Dependent children remain eligible until age 19, or until age 25 if enrolled as a full- time student in a university; college, vocational or secondary school. A dependent child under the age of 25 who has graduated from a university, college,. vocational or -secondary school but has not become gainfully employed will be covered for an additional 2 months from graduation. REQDEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: it 14 2 3 Requested By: Carol Buttler &:::�: Department: Administrative Services Report: Resolution: Ordinance: X Exhibit Ordinance Exhibit Ordinance No. 2000-2407 Exhibit Ordinance No. 99-2369 Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: YES NO SUMMARY & RECOMMENDATION Previously, Council was briefed about the need to amend the effective date stated in Ordinance No.2000-2407, affecting retiree medical coverage provisions. This item was approved retroactively. A new ordinance amending the effective date of retiree medical coverage changes to May 22, 2000, (the date of passage) is attached in addition to previous relevant ordinances. Staff Recommendation Consider approving an ordinance to amend the effective date of retiree medical coverage changes to May 22, 2000. Action Required by Council: Adopt an ordinance to amend the effective date of retiree medical coverage changes. Approved for City Council Agenda Debra Brooks Feazelle, CiWmanager Date 03/04/2003 12:18 FAX • • 10 001 Date: 3/3/03 Coastal Pump Servicesi Inc. Repair Quote S.O. #: 2773 Cust.P.O. #: Customer: City of LaPorte Customer Address: Contact: Andy Long 604 W. Fairmont Parkway LaPorte, TX 77571 Phone: 281-470-8140 Repair Location: W.W.T.P. Sewage Fax: 281-867-0892 Lift Pump #7 We are pleased to quote the following: ONE HYDROMATIC 30HP 12- MODEL S12L3000 INCLUDING: Disassemble and Inspection. Clean, dip, bake stator, new lower mechanical seal (silicon carbide vs. tungsten), new upper mechanical seal, o'ring kit, repair impeller, bronze build up and machine cut down, new bearings, new power and sensor cord, balance impeller to shaft, volute wear ring (bronze), sandblast, prime and paint. Factory recommended lubricants. EXCLUSIONS: WARRANTY Rebuilt equipment will be warranted for one year based on workmanship, parts and labor. Manufacturer's: one year warranty on parts. TERMS: Net 30 days t TOTAL QUOTED PRICE: Service to Remove: S 250.00 Pump Rebuild: $ 4.990.00 Impeller Repair: $ 4625.00 Installation: $ 250.0-0 S 7,115.00 Ouoted price does not include any app 'cable VM. To expedite service, please sign form, include purchase order number, and fax back to Coastal Pump Services. Thank you for your consideration. Please feel' free to contact us with any questions. Customer 15010 Hwy 6, Rosharon, TX 77583 Office: 281-431-6193 Fax: 281-431-6134 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 14, 2003 Requested By: Steve Gillett Department: Public Works Report: X Resolution: Ordinance: Exhibits: Repair Ouote — Coastal Pump Services Exhibits: Exhibits: Appropriation Source of Funds: Utility Fund Account Number: 002-7087-5324002 Amount Budgeted: $40,000.00 Amount Requested: $7,115.00 Budgeted Item: X YES NO SUMMARY & RECOMMENDATION The #7 Lift Pump at the Wastewater Treatment Plant has failed. Coastal Pump Services, Inc. was requested to pull, inspect, and quote the cost of repairs. The repairs to the pump are quoted at $7,115.00. This includes cost of pulling, inspection, rebuilding the pump, repairing the impeller, and replacing the pump into service. Due to repairs to other pumps and equipment in the plant over a 12 month period, this expenditure would exceed the $15,000.00 limitation of expenditures without City Council approval. Formal bidding of this type of repair is not possible because the equipment must be removed from service and inspected for the type of repairs needed and the equipment cannot be easily transported to other vendors for quotations. Staff recommends authorization be given to proceed with the necessary repairs as quoted by Coastal Pump Services, Inc. at a cost of $7,115.00. Funds for the repairs of plant equipment is budgeted in the Wastewater Treatment Division's FY 2002/03 Operating Budget. Action Required by Council: Authorize repairs to Lift Pump #7 by Coastal Pump Services, Inc as recommended by Staff Approved for City Council A enda Debra Feazelle, City Manager Date REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Regeusted: April 14 2QO3 Requested By: M. Gillett Department: C ity Secretar Report: X Resolution: Ordinance: Exhibits: Boards and Commissions List Exhibits: Exhibits: Appropriation Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: YES NO SUMMARY & RECOMMENDATION This item is being placed on the Council Agenda as requested by Mayor Malone, Council Member Charlie Young and Council Member Chuck Engelken. The following appointments and positions need to be discussed: Civil Service: Lindsay Pfeiffer Chairman and position vacated by Barry Beasley. La Porte Area Water Authority: Position 2 vacated by Al Fields. Planning and Zoning : District 2, District 4 and District 5 Appointments. Local 172: Action Required by Council: Discuss appointments and vacancies as outlined above and provide staff with direction. Approved for City Council A enda rAj fi'6a6',1/ -- - -- 9,6,3 eb a B. Feazel e, City Man r Date 0 AIRPORT ADVISORY BOARD POSITION REPRESENTATIVE TERM EXPIRATION 1 Deborah Rihn *Aug. 31, 2004 2 Nick Hooke *Aug. 31, 2004 3 Hector Villarreal Aug. 31, 2003 4 Tucker Grant Aug 31, 2003 5 Steve Gillett Aug. 31, 2004 6 Position 6 Eliminated by City Ord. 98-2265 Council on 7-13-98 FAA Representative William Gray No Expiration Date Airline Representative Dan Myhaver No Expiration Date Ordinance 1852 Staff Liaison: Director of Public Works Steve Gillett *Council Changed Expiration Date with Ord. 98-2265 on 7-13-98 SACSOShareMARDS AND COMMISSIONSUscomm2003.doc Revised: 4/7/2003 POSITION 1 2 3 4 E Alternate 1 Alternate 2 BOARD OF ADJUSTMENT REPRESENTATIVE Sidney Grant Bob Capen Rod Rothermel Willie Walker Ruben L. Salinas Charles Schoppe George (Bill) W. Maltsberger Staff Liaison: Director of Planning Doug Kneupper *Council changed expiration date on 7-13-98 with Ordinance 98-2265. TERM EXPIRATION (2 yr term) *Aug. 31, 2003 Aug. 31, 2003 *Aug. 31, 2003 *Aug. 31, 2003 Aug. 31, 2003 Aug. 31, 2004 Aug. 31, 2004 • CIVIL SERVICE COMMISSION REPRESENTATIVE Lindsay R. Pfeiffer (Chairman) Vacant — Barry Beasley Resigned 6/1/03 Bobby Powell Director of Civil Service TERM EXPIRATION Aug. 31, 2002 Aug. 31, 2004 Aug. 31, 2003 APPOINTED BY CITY MANAGER Staff Liaison: Director of Administrative Services Carol Buttler FIRE CODE REVIEW COMMITTEE POSITION REPRESENTATIVE TERM EXPIRATION District I Louis Heintschel Aug. 31, 2005 District 2 Richard Browder Aug. 31, 2003 District 3 Tom Hayes Aug. 31, 2003 District 4 Floyd Craft Aug. 31, 2003 District 5 Rick Luna Aug. 31, 2003 District 6 Emery Farkas Aug. 31, 2005 AL -A Bryan Moore Aug. 31, 2003 AL-B Tom Handy Aug. 31, 2005 Mayor Sam Brechtel Aug. 31, 2003 Staff Liaison: Director of Emergency Joe Sease Paul Hickenbottom, Fire Marshal Debbie Wilmore, Chief Building Official LA PORTE DEVELOPMENT CORPORATION BOARD REPRESENTATIVE Chuck Engelken Bruce Meismer Peter Griffiths Bill Love Ed Matuszak Pat Muston Deborah Johnson TERM EXPIRATION Aug. 31, 2003 Aug. 31, 2004 Aug. 31, 2003 Aug. 31, 2004 Aug. 31, 2003 Aug. 31, 2004 Aug. 31, 2003 Staff Liaison: Director of Finance Cynthia Alexander 0 • POSITION Health Authority LA PORTE HEALTH AUTHORITY REPRESENTATIVE Abdul R. Moosa., M.D. La Porte Medical Clinic 410 E. Fairmont Parksay La Porte, Texas 77571 (281) 470-4740 Alternate Robert D. Johnston, M.D. 1309 L West Fairmont Parkway LaPorte, Texas 77571 (281)470-2100 Medical Advisor/EMS Oscar Boultinghouse University of Texas Medical Branch Division or Emergency Medicine 301 University Blvd. Galveston, Texas 77555-1173 Staff Liaison: Director of Emergency Management Joe Sease TERM EXPIRATION Aug. 31, 2003 Aug. 31, 2003 Contract POSITION 2 LA PORTE WATER AUTHORITY REPRESENTATIVE TERM EXPIRATION (2yr term) George Robert Roy Aug. 31, 2003 Vacant — Al Fields Resigned Aug. 31, 2003 12/16/02 Robert T. Herrera Aug. 31, 2003 Chester Pool Aug. 31, 2004 Paul Berner Aug. 31, 2004 Staff Liaison: Director of Public Works Steve Gillett 0 PLANNING AND ZONING COMMISSION POSITION REPRESENTATIVE TERM EXPIRATION Chairman Betty Waters Aug. 31, 2003 District 1 Doretta Finch Aug. 31, 2005 District 2 Pamela Baldwin Aug. 31, 2003 District 3 Ross T. Morris Aug. 31, 2003 District 4 Hal Lawler *Aug. 31, 2004 District 5 Dottie Kaminski Aug. 31, 2004 District 6 Ralph S. Dorsett Aug. 31, 2005 Staff Liaison: Director of Planning Doug Kneupper 0 POSITION Director SOUTHEAST TEXAS HOUSING FINANCE CORPORATION BOARD REPRESENTATIVE TERM EXPIRATION Patricia Muston Aug 31, 2003 • • BOARD OF DIRECTORS CITY OF LA PORTE REINVESTMENT ZONE NUMBER ONE Created by Ordinance 99-2325 POSITION REPRESENTATIVE 1 Peggy Antone 2 Paul Larson 3 Alton Porter, Chairman 4 Horace Leopard 5 Norman S. Cook 6 Lindsay R. Pfeiffer 7 David W. Webb 8 Chester Pool TERM EXPIRATION APPOINTED BY Aug. 31, 2003 City of La Porte Aug. 31, 2004 City of La Porte Aug. 31, 2003 City of La Porte Aug. 31, 2004 City of La Porte Aug. 31, 2003 City of La Porte Aug. 31, 2004 City of La Porte Aug. 31, 2003 La Porte ISD Aug. 31, 2004 City of La Porte Board of Directors — City of La Porte Reinvestment Zone Page 2 John Black Aug. 31, 2003 Harris County Staff Liaison: Assistant City Manager John Joerns * Mayor shall annually nominate and appoint, subject to Council approval, a member to serve as Chair for a term of 1 year. LA PORTE REDEVELOPMENT AUTHORITY Articles of Incorporation and Bylaws Approved by Resolution 2000-19 POSITION REPRESENTATIVE TERM EXPIRATION APPOINTED BY 1 Peggy Antone Aug. 31, 2003 City of La Porte 2 Paul Larson Aug. 31, 2004 City of La Porte 3 Alton Porter, Chairman Aug. 31, 2003 City of La Porte 4. Horace Leopard Aug. 31, 2004 City of La Porte 5 Norman S. Cook Aug. 31, 2003 City of La Porte 6 Lindsay R. Pfeiffer Aug. 31, 2004 City of La Porte 7 David Webb Aug. 31, 2003 La Porte ISD 8 Chester Pool Aug. 31, 2004 City of La Porte Page 2 of La Porte Redevelopment Authority John Black Aug. 31, 2003 Harris County Staff Liaison: Assistant City Manager John Joems Per Articles of Incorporation and the Bylaws of the La Porte Redevelopment Authority, an appointment of a Director to the Reinvestment Zone #1, City of La Porte, Texas constitutes an appointment to serve as a Director of the La Porte Redevelopment Authority. Directors of the Authority shall be appointed by the Mayor of the City with the consent and approval of the City Council and shall be the same persons appointed to the corresponding position of the Board of the La Porte Reinvestment Zone. Each taxing unit appointment as a Director to the La Porte Reinvestment Zone shall also constitute a nomination of such person to the Redevelopment Authority. The term of each Redevelopment Authority position shall be coternunous with the corresponding position on the Board of the La Porte Reinvestment Zone. The Mayor of the City shall always appoint the Chairman of the Redevelopment Board for the term designated by the City. CITY OF LA PORTE AUDIT COMMITTEE Chairman, Councilmember Chuck Engelken, District2 Committee Member, James Warren Committee Member, Howard Ebow Staff Liaison: Director of Finance Cynthia Alexander 0 0 NO ]BACK UP • •