Loading...
HomeMy WebLinkAbout2007-02-12 Regular Meeting, Public Hearing and Workshop Meeting of the La Porte City Council Minutes 5 A MINUTES OF REGULAR MEETING, PUBLIC HEARING AND WORKSHOP MEETING OF THE LA PORTE CITY COUNCIL February 12, 2007 1. CALL TO ORDER The meeting was called to order by Mayor Alton Porter at 6:05 p.m, Members of City Council Present: Mayor Alton Porter, Council members Tommy Moser, Mike Clausen, Louis Rigby, Barry Beasley, Howard Ebow, and Chuck Engelken. Members of Council Absent: Mike Mosteit. Councilmember At Large A position was vacated by Councilmember Peter Griffiths. Members of City Executive Staff and City Emplovees Present: Interim City Manager John Joerns, City Secretary Martha Gillett, Assistant City Attorney Clark Askins, City Attorney Knox Askins, Planning Director Wayne Sabo, Assistant City Secretary Sharon Harris, Police Chief Richard Reff, Human Resources Manager Robert Swanagan, Interim Finance Director Michael Dolby, Lieutenant Steve Deardorff, Public Works Director Steve Gillett, EMS Chief Ray Nolen, Risk/Safety Officer Bill Rankin, Downtown Revitalization Coordinator Debra Dye, MIS Manager Al Owens, Patrolman Sherman Moore, Sergeant Matt Daumer, Fire Marshal Cliff Meekins, Fire Chief Mike Boaze, Assistant Fire Chief Champ Dunham, Equipment Services/Solid Waste Superintendent Lee Allen, Office Coordinator Peggy Lee, Golf Course Manager Alex and numerous city staff. Others Present: John Handy with the Houston Chronicle, Barbara Norwine, Sue Gail Kooken, Hugh Landrum, Dottie Kaminski, Anna Griffiths, Peter Griffiths, Russell Plank, Chester Pool, Georgia Malone, Jan Lawler, Colleen Hicks, Dave Turnquist, Rusty Smith, Deann Smith, Leslie Guzman, Lauren Barr, Reverend Dan Chappell, Amy Bird, Debbie Peres, Marcy Barr, Eddie Edge, Lore Rowhrick, Lane Roehrick, Andy Roehrick, Carrie Delicia Turner, Heather Wade, Vanessa Velazquez, Victoria Velazquez, Allen Rankin, Courtney Gore, Jacob Porter, Brian Adams, Lyndsay Reyes, Roehrick, Daniella Plaza, Carlos Martinez, Jonathan Arellano, Megan Murray, Michael Eaton, Tom Flanagan, Teresa Munlin, Vernon Johnson, Donna Lott, and other citizens. 2. Reverend Dan Chappell ofFairmont Park Baptist Church delivered the Invocation. 3. Mayor Porter led the Pledge of Allegiance. 4. PRESENTATIONS / PROCLAMATIONS A. Robert Swanagan, Human Resources Manager and Safety Committee Members recognized the EMS Department for highest attendance of monthly (September - December 2006) Safety Meetings. B. Robert Swanagan, Human Resources Manager and Wayne Sabo Planning Director presented a plaque to Employee of the 4th Quarter - Reagan Mc Phail. C. Robert Swanagan, Human Resources Manager and Public Works Director Steve Gillett presented a plaque to Employee of the Year (2006) Jesus Alfaro. Regular Meeting, Public Hearing and Workshop Meeting -February 12" 2007 Page 2 D, Mayor Porter presented an appreciation plaque to Councilman Griffiths for seven years of services to the City of La Porte. 5. Consent Agenda A. Consider approving Minutes of the Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council held on January 22, 2007. B. Council to consider approval or other action authorizing the execution of an agreement with HCCEDD in the amount of$196,950.00 for extending and paving with asphalt, North 7th Street from West Madison Street to the unimproved North "E" Street right-of-way and emplacing pedestrian improvements in the "E" Street right-of-way, connecting North ih Street to the recently extended North 2nd Street. C, Council to consider approval or other action regarding an ordinance amending Fiscal Year 2006-07 Budget for the Grant Fund by $51,950. ($6,950 for the Community Development Block Grant Award and $45,000 for the funds from Bayou Country Housing Trust Fund.), D. Council to consider approval or other action authorizing the City Manager to enter into a contract with Teamwork Construction Services, Inc in the amount of $43,726.20 and establish a construction contingency of$6,273.80. E. Council to consider approval or other action awarding a bid for the Water Tank Replacement Project at Water Plant #3 to Gulf States Protective Coatings, Inc. in the amount of$80,150, and authorizing an addition $4,007 for contingency. F. Council to consider approval or other action regarding an ordinance amending Chapter 2, "Administration" Article III, "Finance", Division 2, "Purchases and Contracts", Subdivision II, "Public Works Contracts" by amending sections 2-106 and 2-108 of the code of ordinances. Item F was pulled from consideration and will be placed on a future agenda. G. Council to consider approval or other action for utilization of an interlocal agreement and expenditure of computer funds through State of Texas Cooperative Purchasing. H. Council to consider approval or other action of an ordinance amending Chapter 38 of the Code of Ordinances of the City of La Porte by amending Chapter 38 "Fire Prevention and Protection", Article III "Standards", Division I "Generally", Section 38-101 "Fire Code Adopted" by adopting the 2003 Edition of the International Fire Code, together with all local amendments. Items D and G were pulled by Councilmember Moser for discussion. Motion was made bv Councilmember Moser to approve the consent agenda items as presented with the exception of Item F. Second by Councilmember Engelken. Motion carried. Ayes: Moser, Engelken, Ebow, Clausen, Beasley, Rigby, and Porter. Regular Meeting, Public Hearing and Workshop Meeting -February 12" 2007 Page 3 Nays: None Abstain: None. 6. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX PAYERS WISHING TO ADDRESS COUNCIL ON ANY ITEM POSTED ON THE AGENDA. James Flanagan addressed council in regards to past, present and future plans and operation in the Barbour's Cut area. Mr. Flanagan provided Council with a handout (see attached Exhibit A. Debbie Peres ofL.P.I.S.D, spoke to council about Project Graduation. Barbara Norwine advised Council she was not in favor of the Bayfront Hotel Project. 7. Public Hearing - Council to consider approval or other action on recommendation by Planning & Zoning Commission to approve Special Conditional Use Permit #SCU07-001 for FFA & 4-H projects site to be located at 11006 North Avenue P. Open Public Hearing - Mayor Porter opened the Public Hearing at 6:40 p.m. Director of Planning Wayne Sabo presented summary and recommendation and answered Council's questions, Public Input: The following people provided public input: Vernon Johnson - 11002 P. Street - spoke against passing the ordinance, Delecia Turner - 10105 N. P. Street - spoke in favor of passing the ordinance with limitations on the number of animals. Kay Scott - 1802 Lomax School Road - spoke against passing the ordinance. Allen Rankin - 11006 N. P. Street - spoke in favor of passing the ordinance. Donna Lott - 5518 Stone Creek - spoke in favor of passing the ordinance, Betty Cuccerer - 10601 North H - spoke in favor of passing the ordinance, Chester Pool- 1710 Alvy - spoke in favor of passing the ordinance, John Hightower - 9810 Brookview - spoke in favor of passing the ordinance. Mike Cobb - 109 Summerwind Dr. - spoke in favor of passing the ordinance, Larry Munlin - Bay town, Texas - spoke against passing the ordinance. Mayor Porter noted a letter was received from the Ybarra family opposing the approval of this ordinance. Regular Meeting, Public Hearing and Workshop Meeting -February 12" 2007 Page 4 Recommendation of Planning and Zoning Commission - Planning and Zoning Commission recommended City Council consider approval of Special Conditional Use Permit #SCU 07- 001 with the conditions as listed in the SCUP. The Public Hearing was closed at 7:32 p.m, 8. Council to consider approval or other action regarding Ordinance 1501-N5, Mayor Porter requested Council table this since it requires a super majority vote and Councilmember Mosteit was not present. Motion was made by Councilmember Clausen to table this item until the next meeting, Seconded by Councilmember Beasley, The motion carried unanimously. Ayes: Mayor Porter, Beasley, Engelken, Ebow, Moser, Rigby and Clausen. Nays: None Abstain: None 9. Council to consider approval or other action regarding an ordinance appointing a person to the vacant position on the Zoning Board of Adjustment. Mayor Porter presented summary and recommendation and answered Council's questions, Assistant City Attorney Clark Askins read: Ordinance 2782-Q an ordinance appointing members to various boards, commissions, and committee, of the City of La Porte. Motion was made by Councilmember Moser to approve Ordinance 2782-0 as presented by Mayor Porter and placing Chester Pool on the Zoning Board of Adjustment. Second by Council member Engelken. The motion carried Ayes: Moser, Engelken, Ebow, Beasley, Clausen, Rigby and Porter. Nays: None Abstain: None. Mr, Pool was in the audience and informed Council he is resigning his position on the Water Authority. The order of the agenda was changed and Council moved to Executive items at this time. See below. 10. Mayor closed the regular meeting and opened the workshop meeting at 11: 06 p,m. Council discussed the following workshop items: A. Council discussed the Golf Course rate ordinance and directed staff to bring to future meeting for approval. In addition, they requested staff consider including part-time employees for reduced fees. B. Council received a report from Main Street Coordinator, Debra Dye on Main Street. C Council discussed proposed resolution regarding Council position on legislative matters and directed staff to bring to future meeting for approval. Regular Meeting, Public Hearing and Workshop Meeting -February 12" 2007 Page 5 11. Mayor closed the workshop meeting and re-convened the regular meeting at 11 :35 p.m. 12. Interim City Manager, John Joems provided Council with the following administrative reports. Employee Service Award Breakfast, February 13,2007 at 8:00 a.m. at Sylvan Beach. Records Management Day, February 19,2007, City of La Porte Chili Cook-Off, February 16,2007,6:00 p.m. - 9:00 p.m, at Evelyn Kennedy Center, Heritage Society Meeting (presentation by Ed Matuszak on Battleship Texas) February 22, 2007 at 6:30 p.m. at the Depot and the Sylvia Garcia "Swing Thing" February 26,2007 Shotgun starting at 7:30 a.m, and 2:00 p.m. at Timber Creek Golf Club. 13. COUNCIL COMMENTS Engelken, Mosteit, Clausen, Rigby, Moser, Beasley, Ebow and Porter had comments. 14. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW, CHAPTER 551, SECTIONS 551.071 THROUGH 551.076, AND SECTIONS 551.087, 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) A. SECTION - 551,087 - (ECONOMIC DEVELOPMENT) B. SECTION - 551-072 (PROPERTY SALE OR EXCHANGE) C. SECTION - 551-072 (PROPERTY SALE OR EXCHANGE) MEET WITH INTERIM CITY MANAGER, ASSISTANT AND CITY ATTORNEY TO DISCUSS IDA NEGOTIATIONS MEET WITH INTERIM CITY MANAGER, CITY ATTORNEY, CITY CONSULTANT/ ADVISOR AND MAIN STREET COORDINATOR FOR THE PURPOSE OF DELIBERATING THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY FOR MAIN STREET PROJECT DEVELOPMENT AND PROJECT LYNCH MEET WITH INTERIM CITY MANAGER, CITY ATTORNEY, CITY ADVISOR AND FOR THE PURPOSE OF DELIBERATING THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY FOR PROJECT BONANZA D. SECTION -551-071 - (POTENTIAL OR PENDING LITIGATION) MEET WITH CITY CONSULTANT/ADVISOR, INTERIM CITY MANAGER AND CITY ATTORNEY TO DISCUSS FLANAGAN SHIPPING LEASE Regular Meeting, Public Hearing and Workshop Meeting -February 12" 2007 Page 6 E. SECTION - 551.071 - (POTENTIAL OR PENDING LITIGATION) MEET WITH INTERIM CITY MANAGER AND CITY ATTORNEY TO DISCUSS CITY CONTRACT WITH HUMANA CO, F. SECTION - 551.071 (POTENTIAL OR PENDING LITIGATION) MEET WITH INTERIM CITY MANAGER AND CITY ATTORNEY REGARDING FRONTIER LOGISTICS IN BLOCKS 349, 351, AND 352 G. SECTION - 551,074 - (PERSONNEL MATTER) MEET TO DISCUSS POSSIBLE PERSONNEL ACTION REGARDING INTERIM CITY MANAGER Council retired to Executive Session at 7:34 p.m. and returned to the Regular Meeting and reconvened at 10:52 p.m. 15, CONSIDERATIONS AND POSSIBLE ACTION ON ITEMS CONSIDERED IN EXECUTIVE SESSION There was no action taken. 16. Council to consider approval or other action regarding a resolution declaring intention to reimburse certain expenditures with borrowing proceeds for Main Street Building Project. Interim Finance Director Michael Dolby presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read: RESOLUTION 2007-03- a resolution declaring intention to reimburse project expenditures for Main Street Building Project. Motion was made by Councilmember Engelken to approve Resolution 2007-03 as presented bv Mr. Dolby, Second by Councilmember Ebow. The motion carried. Ayes: Engelken, Ebow, Clausen, Beasley, Rigby and Porter. Nays: Moser Abstain: None, 17. Council to consider approval or other action of items on agenda for (1) refunding resolution (2) purchase agreement and (3) lease agreement. City Consultant/Advisor Debra Feazelle and Main Street Coordinator Debra Dye presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read: Ordinance 2969- an ordinance approving a commercial contract - improved property agreement between New Life Christian Fellowship of La Porte, Seller, and the City of La Porte, as purchaser, on the office building and retail building located at 908 and 912 West Main Street in the City of La Porte, Harris County, Texas; 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 bv Councilmember Engelken to approve Ordinance as presented bv Ms, Feazelle and Ms. Dve. Second bv Councilmember Ebow, The motion carried. Ayes: Engelken, Ebow, Clausen, Beasley, Rigby and Porter. Regular Meeting, Public Hearing and Workshop Meeting -February 12" 2007 Page 7 Nays: Moser Abstain: None. 18, Council to consider approval or other action regarding an ordinance approving a lease agreement between the City of La Porte, as landlord, and Economic Alliance Houston Port Region, as tenant Debra Feazelle and Main Street Coordinator Debra Dye presented summary and recommendation and answered Council's questions, Assistant City Attorney Clark Askins read: Ordinance 2970 an ordinance approving a lease agreement between the City of La Porte, as landlord, and Economic Alliance Houston Port Region, as tenant, on the premises known as 908 West Main Street, in the City of La Porte, Harris County, Texas; 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 Clausen to approve Ordinance as presented by Ms. Feazelle and Ms. Dye. To approve the lease agreement subiect to the City closing its purchase of the property from New Life Christian Foundation and Alliance agreeing to floor plan as indicated in Exhibit A. Second by Councilmember Beasley, The motion carried. Ayes: Mosteit, Moser, Engelken, Ebow, Clausen, Rigby and Porter. Nays: None Abstain: None, 19, Council to consider approval or other action regarding an ordinance to vacate, abandon, and close the alleys in Blocks 349, 351, and 352, Town of La Porte and additionally the North 1 sl street Right-of-Way between North "H" Street and Barbour's Cut Boulevard, and the North "G" Street Right-Of-Way between North Broadway and North 2nd Street, Town of La Porte, Planning Director Wayne Sabo presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read: Ordinance 2971- an ordinance vacating, abandoning and closing the alleys in blocks 349,351, and 352 and portions of the North 1 sl street and North "G" street rights-of-way and abandoning in place existing public sanitary sewer line contained within said rights-of-way, to the north boundary line of Barbour's Cut Boulevard Motion was made by Councilmember Moser to approve Ordinance 2971 as presented by Mr. Sabo Second by Councilmember Engelken. The motion carried Ayes: Moser, Engelken, Ebow, Clausen, Beasley, Rigby and Porter. Nays: None Abstain: None. 20. Council to consider approval or other action regarding adoption of procedure for selection of City Manager and/or give direction to staff and city attorney regarding appointment of City Manager, Regular Meeting, Public Hearing and Workshop Meeting -February 12" 2007 Page 8 A consensus of Council directed staff to have the Purchasing Manager Susan Kelley identify search firms and prepare a Request for Proposal to be presented at the next Council Meeting for approval. 21. There being no further business to come before Council, the Regular Meeting was duly adjourned at 11 :41 p.m. Respectfully submi~~/ /f7'J ~4f&~t<<~C City Secretary PR~ and approve. d on this 26th day of February 2007, ~LP~-Q~___ Mayor Alton E. Porter Division of James J. Flanagan Shipping Corporation fY-h: b;i A ~ (713) 928-5683 arr~) FAX (713) 928-6976 ~ 1111 East Navigation Blvd. Houston, Texas 77012 James J. Flanagan Stevedores February 5, 2007 Debra Feazelle City Manager City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 Phone: 2814715020 Fax: 281 842 1259 Email: feazelled(tV,laportetx.gov Re: James J Flanagan Lease Dear Debra, It was good to meet with you and the mayor last week, we enjoyed the conversation and the opportunity to clarify ourselves. I am enclosing some information that you have requested regarding our business plan. Our business plan is as follows: 1. Repave and improve the surface of the yard at the cost of approximately $750,000.00. 2. Create a covered gate complex at the cost of approximately $200,000.00. 3. Add handheld computer capabilities to improve truck turn around times. 4. We have contracted for the construction and improvement of a temporary road (see map). 5. We are prepared to contribute approximately $83,000.00 for the construction of Avenue J (subject to negotiations with the city)(see permanent road on map). 6. We will provide security/traffic personnel for the temporary road. 7. We have already spent over $3,000,000.00 in new machineries, new container stacker, trucks and equipment in order to make our operation more efficient. We have added additional personnel and extended our work hours daily. 8. We have paid off duty police officers to direct traffic at the corner of Barbour's Cut Blvd and Broadway Street. 9. We have taken an unused property (city dump) and made it a productive piece of property. We have spent considerable sums over the years improving it and are about to do significantly more; additionally we are HOUSTON . GALVESTON . BEAUMONT . PORT ARTHUR . ORANGE. NEW ORLEANS. MOBILE. CORPUS CHRISTI. LAKE CHARLES paying for road constructions on city owned right aways to improve the situation. Our concerns about traffic have been brought up to the port and the city on numerous occasions in the past. Flanagan Shipping is in no way a cause of any kind of the traffic congestion that has been occurring at Barbour's Cut; the reason is the facility is over booked and officials have been unwilling to respond to the industry's and our concerns about growing traffic problems over the last several years until now. We believe that this plan will greatly enhance service to customers and the ports property. In order to do this we need a twenty five year lease. I look forward to talking to you tomorrow. Best regards, T-:t. Tom Flanagan President Cc: Jim Davin - Julian and Seele Law Firm Clark Askins - ctaskins(tV,swbell.net t~~ f'\ ~ , \\1 '1 d K~ 2:/ --' /Y-7/YK..v r~.d ~~ - - '" o o a 'g ~ B. 8: Q. ~ ~' 8- Er ~ !:r (JQ o s ! lj:j n en ~ ~. (1) ~ (1) t;r1~~ ~~~ .. ,.-... V. tl:l~\O (")\'OVl ~';;Q {='.' ld ff 6liil .~C'J'.l Y1l'"%j~ @~~ g-'-" 0 (JQ ~ t;p I~~ = ~' 0 !l ja ?<' ~ - ~ ~ - - B3 - - I>> (') o ~ ~ I>> ~ Q. n '" ~. 8- ~ s' (JCl (') a ] ~ () 00 t.r1 a ~ ~. rn ~ rn ~~~ ~~~ .. ,-... (Jl l:l:l~~ (") '-" ("l ~eii ~ ~ &l "8. ~ C/.l ~>,j~ @~~ g-"'"' <:5 (JCl ~ ~ f~~ ~~~ z?< ~ o - ~ ~ 02/09/07 flU 17: 02 FA.'( 113 926697$ A HOU r "^ nu. QU C\..A~ ~ PRElGHT UNES INC. 5129 Pin.e A~ P.o. Box: S250 ~ TD:U mION25O ~ (281) 4B7.3160 FAX (211)_"'13 U.s. WATS (800) U7.107a rl:,ai1: ~~~m Frida)!, hbrua1y ',2001 To Wh04l. It May Cont:iem: HI i\mapt'\ S~lI Talfie Ilouting R;T'N- n.. .....~,,~'4...!l..- W. optIl'Iltlt b'\.tdcsin ami out of hr 'Pert of ~ wh.ich....,utily indudee the facimil!8m . \.S. ~.~"'<1-' d. ~~\ andiittWM ~Cut .eeI. t'he both <::.~,i",''\,QTo, ~adfy at'\4.~ ofche..l'OMlwa: ~ We have in toudllhl md, .. .~.. SleY <Xli.. th!t~fltl!l to ttyimd.~> ma . cot . ..tfaM ~ WI. V~ of the portp :'ellS dem.nd loY~lOeyami any .. .\..,f'tt>p. Gi or- -.- _.........._..1IIMluod .."'....... _..._....... ... ~ <- produedon. u they atte1npt tu ttUlIYIIlN s.a0d6 that our society de,tuwuk. Perna". most ' " ttoublUlc is ht tlw ~ ~iIill of driwn.. .~.t.~lf low levell, cnarmc a myrlad-\;~ of other proble.trl& tmour nation. '-- leal"," of the m\l1tip1e )I'l\1'dJ in &be &IW and the ~o1 trBfIiG} wu .e t~)(i) \ ~ ._~con~..JrIlfflc~the'IhS"lliA"'~.wJl:ii "_ ",~~d.:>~'U~ ~_ ~e ~ this will R.ir11'iI'll.,tlJ.md.uca1:nlffi~i:lHtu~...J!~~,;;cre8;U1 a l1\~.~t liy&lGm. . ~ ~~2s-' We lUllw In&t\y opWonsto.~ ard we1r:ome l.heopporNnity tel \Je part of the solutiO'N. "'" Sinartuly, -~ P~ TIC . West Mmtphis., AR. BeZJ\,uncnl:, TIC USPOT ~ """"U;:;K$ .... roo" ...."l..t;t... Division of James J. Flanagan Shipping Corporation ~ (713) 928-5683 FAX (713) 928-6976 James J. Flanagan Stevedores 1111 East Navigation Blvd. Houston, Texas 77012 February 12, 2007 Mayor and City Council City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 Dear Mayor and City Council, In the way of background information, please see the photos on the following page highlighting some of the development projects that Flanagan has done in other locations in Texas. Sincerely, -r: -:p. Tom Flanagan President HOUSTON . GALVESTON . BEAUMONT . PORT ARTHUR . ORANGE. NEW ORLEANS. MOBILE. CORPUS CHRISTI. LAKE CHARLES ~ ~ (,) ~ ~. s. ~ ~ ~ 51 ~ ~ sa ~ I) ::iI m 5. 0: l B A REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Reqnested: 2-26-07 ~ Requested By: Ri('h9rcl R Reff A . Bude:et Source of Funds: Department: City CQUAl:il Account Number: Report: Resolution: XX Ordinance: Amount Budgeted: Exhibits: Resolution for Triathlon 4-22-07 Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION A Resolution recognizing the Second Battle of San Jacinto Triathlon to be held the morning of April 22, 2007 in conjunction with the ceremonies at the San Jacinto Monument. The triathlon will be held within the City limits, also encompassing parts of Baytown and Deer Park and will require street closure requests that must be submitted and approved by TX Dot. Action Required bv Council: Approve resolution to participate in triathlon and seek necessary street closures, .r.;0hr Date I RESOLUTION NO. 2007-~ A RESOLUTION AUTHORIZING THE BATTLE OF SAN JACINTO TRIATHLON AND AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH TEXAS DEPARTMENT OF TRANSPORTATION FOR THE TEMPORARY CLOSURE OF STATE RIGHTS-OF-WAY; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the Texas Department of Transportation requires the City of La Porte to enter into an agreement for the temporary closure of State right-of -way for closure of various streets for the purpose of the Battle of San Jacinto Triathlon. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. That the Battle of San Jacinto Triathlon in an event that serves a public purpose, This event is open to the public and will also attract visitors from outside the city limits of La Porte. Section 2. That the City of La Porte will fulfill all necessary requirements established by 43 TAC, Section 22.12 which establishes the rules and procedures for the temporary closure of a segment of the State highway system, Section 3. That the City Manager be designated to coordinate the event activities, Passed by the City Council this 26th day of February, 2007. ATTEST: J!I!zd~ i1 r4r, Mart a A. Gillett City Secretary CITYOF~LY~~ Alton E. Porter Mayor APPROVED: MM -r /I~ . ~r Knox W. Askins I City Attorney o REQUEST FOR CITY COUNCIL AGENDA ITEM ~ Agenda Date Requested: 02-26-07 Budl!et Requested By: Source of Funds: 06 VAS I Grant Department: Police Account Number: 032-5253-521-8021 Report: Resolution: Ordinance: Amount Budgeted: $ 257,732.00 Exhibits: Grant Award Amount Requested: $257,73199 Exhibits: Motorola Quote Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION The Police Department received an award of $257,732.00 under the Urban Area Security Initiative 06 (UASI 06) to upgrade our current dispatch consoles and expand the number of consoles we have in conjunction with the Department's move into its new facility. A budget adjustment was approved at the October 23,2006 City Council meeting to incorporate this grant into the 2006-2007 Budget. The Governor's Division of Emergency Management (GDEM) has just released the funds for the purpose of console upgrades consisting of expanding from two (2) "Motorola Gold Elite Cetra- Comm" existing positions utilizing Windows 2000, to four (4) Motorola Gold Elite Centra Comm dispatch positions using Windows XP, and all related equipment including antennas, transmission lines and filters. The Police Department consistent with the grant award will be purchasing the required equipment from Motorola for the sum of $257,731.99. This purchase will be made through existing purchasing cooperative agreements with the Houston/Galveston Area Council (H-GAC) as approved by the Governor's Division of Emergency Management. Action Required bv Council: Authorize the expenditure ofUASI 06 grant funds in the amount of $257,731.99 to Motorola for upgrading and expanding dispatch consoles and related equipment. A ~tJ/07 Date I -, Governor's Division of Emergency Management 2006 Sub-Recipient Agreement for City of La Porte Date. of Award .. 9/29/2006 1. Sub-Recipient NaJlle and Ad~ress GDEM/SAA 3. Award Number: 06-SR 41440-01 > Federal Grant InfOrmation Federal Grant Title: Homeland Security Grant program Mayor Alton Porter City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 Federal Grant Award Number: 2006-GE- T6-0068 Date Federal Grant Awarded to GDEM: June 30, 2006 Federal Granting Agency: Office of Grants and Training U.S. Department of Homeland Security s..> '>. ~ward Amount and, c;rant Breakdowns Note: Additional Budget Sheets (Attachment A): No Total Award Amount $347,732.00 CCP 97.053 $0.00 LETPP 97.074 MMRS 97.071 SHSP 97.073 UASI 97.008 Other $0.00 $0.00 $90,000,00 $257,732,00 $0.00 Performance Period: 7/1/2006 To 2/28/2008 6. Statutory Authority for Grant: This project is supported under Public Law 109-90, the Department of Homeland Security Appropriations Act of 2006. 7. Method of Payment: Primary method is reimbursement. See the enclosed instructions for the process to follow in the submission of invoices. 8. Debarment/Suspension Certification: The Sub-Recipient certifies that the jurisdiction and its' contractors/vendors are not presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded by any federal department or agency and do not appear in the Excluded Parties Ust System at http://www.epls,gov, 9. Agency Approval Signature of GDEM Official: Approving GDEM Official: Jack Colley, Chief Division of Emergency Management Office of the Governor cr~ 10. . Sub'-Redpient Acceptance I have read and understand the attached Terms and Conditions. Type name and title of Authorized Sub-Recipient official: Signature of Sub-Recipient Official: 11. Enter Employer Identification Number (EIN) / Federal Tax Identification Number: 12. Date Signed: 13. DUE DATE: ~ Signed award and Direct Deposit Form (if applicable) must be returned to GDEM on or before the above due date. 12/20/2006 City of La Porte Dispatch Console - 4 Positions I Antenna System HGAC Pricing Qty Model Number Description HGAC EXTENDED~ Position - OP 4 B1822B CENTRACOMGOLD ELITE INTERFACE ELECTRONICS, DESKTOP $10,120,00 $10,120.00 K704AE ADD: HEADSET JACK, #2 W/13 FOOT CABLE (FOR B1822) $192.00 $192.00 K570AE ADD: HEADSET JACK, W/13 FOOT CABLE (FOR B1822) $192.00 $192.00 K572AF ADD: FOOTSWITCH $76,80 $76,80 K703 ADD: MICROPHONE, GOOSENECK, 9 INCH (FOR B1822) $246.40 $246.40 K153M ALT: CABLE, 7-PAIR, 50 FOOT (DELETES 10 FOOT) $40,00 $40,00 Position - Op 3 1 B1822B CENTRACOM GOLD ELITE INTERFACE ELECTRONICS, DESKTOP $10,120,00 $10,120,00 1 K704AE ADD: HEADSET JACK, #2 W/13 FOOT CABLE (FOR B1822) $192,00 $192.00 1 K570AE ADD: HEADSET JACK, W/13 FOOT CABLE (FOR B1822) $192,00 $192.00 1 K572AF ADD: FOOTSWITCH $76.80 $76,80 1 K703 ADD: MICROPHONE, GOOSENECK, 9 INCH (FOR B1822) $246.40 $246.40 1 K153M ALT: CABLE, 7-PAIR, 50 FOOT (DELETES 10 FOOT) $40,00 $40.00 CEB Licenses 1 B1827 CENTRACOM GOLD SOF1WARE LICENSE MANAGER $132,00 $132,00 2 X472AB ADD:UPGR CRT OP TO ELITE $880.00 $1,760.00 2 X293 ADD: SOF1WARE LICENSE, ELITE OPERATOR POSITION $4,800,00 $9,600.00 1 B1879 CENTRACOM GOLD SOF1WARE REFRESH PACKAGE $0.00 $0.00 1 X77 ADD: SOF1WARE REFRESH, 16 I/O OR COMPARATOR $400.00 $400.00 2 X69 ADD: SOF1WARE REFRESH, COIM OR LOMI $640,00 $1,280,00 2 X58 ADD: SOF1WARE REFRESH, DRIM $160,00 $320,00 8 X49 ADD: SOF1WARE REFRESH, BIM $320.00 $2,560,00 Miscellaneous Items 1 B1819 CENTRACOM GOLD SPARES FOR CEBS WIO TRUNKING $2,650.40 $2,650.40 4 BLN1211B HEADSET JACK W/EXTENDED CBL $128,80 $515.20 1 B1442B CENTRACOM GOLD INTERFACE MODULE FOR AUXILIARY 16 I/O $1,196,00 $1,196.00 1 B1814 CENTRACOM GOLD SPARES FOR CLASSIC CRT OR ELITE OPERAl $2,392,80 $2,392,80 Dropship 1 DSJ4900B HP PROCURVE SWITCH 2626B $2,025,00 $2,025,00 7 DSE64286TS 19" LCD, DARK GRAY, WI TOUCH $2,222.10 $15,554,70 2 TDN9841 MOUSE PADS 5 PACK $63.00 $126,00 12 CDN6297 SUPRA MONAURAL HEADSET TOP $77 .40 $928,80 4 L3490 CERTIFIED ELITE INTERFACE WORKSTATION WITH WINDOWS XP $2,205,00 $8,820,00 4 ZA00268M ADD: DUAL IRR CARD & PC SPKER $171.00 $684,00 4 DDN6629 SOF1WARE BASED DUAL IRR $2,297,70 $9,190.80 1 L3508 CERTIFIED ELITE INTERFACE SERVER WITH WINDOWS 2003 SP1 $4,500.00 $4,500.00 4 BKN1000 200 CABLE, 7 PAIR, 200 FOOT $140,00 $560,00 2 DS9125T0700104E UPS, 9125 TOWER. 1KVA!700W, 48 MIN RUN $1,492,80 $2,985,60 1 1 st year 24 X 7 warranty $6,949.00 $6,949,00 1 Years Two - Five $51,830,00 $51,830.00 1 T5766 MTR2000 STATION AND REPEATER $816.00 $816,00 1 X330 132-174 MHz 40 WATT $952,00 $952,00 1 X597 CONVENTIONAL OPERATION $2,380,00 $2,380.00 1 TWO CHANNEL $80,00 $80.00 1 DC CONTROLLED $480,00 $480.00 1 X436 FIELD MANUAL $40,00 $40,00 1 HSN1000 EXTERNAL SPEAKER $87,20 $87,20 1 0185180U01 SPEAKER CABLE $13,80 $13.80 1 1 1 1 1 1 1 1 T5766 X330 X597 X436 HSN1000 0185180U01 MTR2000 STATION AND REPEATER 132-174 MHz 40 WATT CONVENTIONAL OPERATION TWO CHANNEL TONE CONTROLLED FIELD MANUAL EXTERNAL SPEAKER SPEAKER CABLE 2 TONE REMOTE PANELS 2 EXTRA SHELVES 2 PROGRAMING MTR2000 1 APEX IV 120 TMR TRANSTECTOR UNIT 3 4 1 1 1 1 2 1 1 1 8 20 14 LDF5-50A LDF4-50A 06US1046 Don Day Cell 832-215-8006 Fax 281-807-1275 ANTENNA SYSTEMS COM PROD 884-70HD MAXRAD MFB8135 COM PROD 782-70HD CIMA COM PROD 871 F-70 COMPROD 430-70HD COMPROD F3729HD COMET GP3 COMPROD 295-70 VHF TRANSMISSION LINE 7/8" 380 FEET TRANSMISSION LINE 1/2" 640 FEET CONNECTORS 7/8" NF CONNECTORS 1/2" NF POL YPHASER 1/2" COMPROD TXlRX MUL TICOUPLER VHF $816.00 $816.00 $952,00 $952.00 $2,380,00 $2,380,00 $80,00 $80,00 $480,00 $480,00 $40,00 $40.00 $87,20 $87,20 $15,23 $15,23 $360.00 $720.00 $90.00 $180,00 $100,00 $200.00 $1,800,00 $1,800,00 $1,716,92 $5,150.76 $707.76 $2,831.04 $931.50 $931,50 $262.80 $262.80 $186,30 $186,30 $864.72 $864.72 $270.00 $540.00 $340.20 $340,20 $1,521,90 $1,521.90 $1,065,60 $1,065.60 $32,90 $263.16 $18.68 $373,50 $15,484,50 $15,484.50 Equipment $191,110,11 Installation/Services $62,813.03 Sub-Total $253,923,14 HGAC Fee $3,808.85 Total $257,731.99 E REQUEST FOR CITY COUNCIL AGENDA ITEM Public Works Agenda Date Requested: Appropriation Requested By: S. Gillett Source of Funds: N/A Department: Account Number: N/A Report: Resolution: Ordinance: x Amount Budgeted: Nt A Exhibits: Ordinance Amount Requested: NIl\. Exhibits: Table A Budgeted Item: N/A Exhibits SUMMARY & RECOMMENDATION Chapter 2 of the Code of Ordinances includes the administration of Public Works Contracts. Section 2- 106 was codified in 1991. The original ordinance (Ord, 1476) was passed on October 28, 1985 to establish the prequalification of contractors for projects over $300,000. Since that time, the cost of construction projects has increased, mandating prequalification for more projects. The process of prequalification is costly for the city as well as contractors. Many contractors forgo bidding due to the need to prequalify. The attached Table A illustrates the effect of inflation on construction costs since 1985, using the U.S Army Corps of Engineers Index ($499,612) as well as the Consumer Price Index -All Urban Consumers - South ($551,446). It is recommended that Section 2-016 be amended to require prequalification for projects over $500,000. Action Required bv Council: Approve an ordinance amending Section 2-106 of the Code of Ordinances, A .~~J.7 D e { , ORDINANCE NO. 2007-~t:tt.,f AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA PORTE AMENDING CHAPTER 2, RADMINISTRATIONR, ARTICLE III, RFINANCER, DIVISION 2, RPURCHASES AND CONTRACTSR, SUBDIVISION II, RPUBLIC WORKS CONTRACTSR, BY AMENDING SECTION 2-106 OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, 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. Chapter 2, "Administration", Article III, "Finance", Division 2, "Purchases and Contracts", Subdivision II, "Public Works Contracts", Section 2 -106, "Prequalifications for bidding; filing of contractor's statement", is hereby amended and shall hereafter read as follows, to-wit: "Sec. 2-106. Prequalifications for bidding, filing of contractor's statement. The city council has determined, and does hereby find, determine, and declare that it is in the best interest of the city that all contractors desiring to bid on the city construction projects, having an owner's estimated construction cost of greater than $500,000.00, must prequalify by filing a satisfactory contractor's statement, on the forms attached hereto, with the city manager or his designee no later than 30 days prior to the date bids are to be opened, if a contractor is to be eligible to bid. For projects with an owner's estimated construction cost of less than $500,000.00, contractors may have to prequalify, if such is determined by the city manager. In making such determination, the city manager shall review the city's past experience with projects of similar nature; the recommendation of the project architect /engineer which considers the complexity of the project; and the uniqueness or novelty of the anticipated project which may require a high degree of contractor specialization, technical expertise and/or previous experience on similar proj ects. Once a contractor has successfully prequalified, in order for them to remain prequalified, a new contractor's statement shall be filed with the city annually. The financial information contained in such contractor's statement is deemed confidential; shall not be disclosed by the city to the public or to other contractors; and shall be deemed exempt from disclosure under the Open Records Act, V.T.C.A, Govern-" Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective upon its passage and approval. PASSED AND APPROVED, this;)lo~day of Pi? Is (lj r1 Iy , 2007. By: <jE\Y OF LA ~ L~ ~l /--;;d-~ Alton E. Porter Mayor ATTEST: ~1:. glltfdAJJJ? City Secretary AP~ r ~AA4 Cl: k . Askins Assistant City Attorney 2 TABLE A EXAMPLE COMPUTATION FOR CONSTRUCTION COST U.S. ARMY CORP OF ENGINEERS INDEX CALCULATION Cost Index-Year A Cost Index-Year B X Cost in Year B X State Adjustment Factor = Current Cost Example: Date of proposed Project is 2007 (Cost index for Year A) - Cost index is 662.55 Project Cost in 1985 is $300,000 (Cost Index Year B) - Cost index is 346.12 State Adjustment Factor (Texas) - 0.87 662.55 346.12 X $300,000 X 0.87 = $499,612 CONSUMER PRICE INDEX (All Urban Consumers - South) Cost Index-Year A Cost Index-Year B X Cost in Year B = Current Cost Example: Date of proposed Project is 2007 (Cost index for Year A) - Cost index is 194.3 Project Cost in 1985 is $300,000 (Cost Index Year B) - Cost index is 105.7 194.3 105.7 X $300,000 = $551,446 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Februarv 26, 2007 Requested By: Michael Dolby,Interim Director of Finan ~ Department: FINANCE Amount Bude:eted Source of Funds: Account Number: Report: xx Resolution: Ordinance: Amount Budgeted: Exhibits: Amount Requested: Exhibits: Budgeted Item: YES NO SUMMARY & RECOMMENDATION Receive 2006 Comprehensive Annual Financial Report, Document provided under separate cover. Action Required bv Council: A if? ate enda CITY OF LA PORTE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT F.or the fiscal year ended September 30, 2006 Prepared by: Department of Finance DRAFT 11 City of La Porte Comprehensive Annual Financial Report For the Fiscal Year Ended September 30,2006 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal Organization Chart GFOA Certificate of Achievement List of Elected Officials FINANCIAL SECTION I ndependent Auditors' Report Management's Discussion and Analysis Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds Reconciliation of the Governmental Funds Balance Sheet to Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes In Fund Balances of Governmental Funds to the Statement of Activities Statement of Net Assets - Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds Statement of Cash Flows - Proprietary Funds Notes to the Financial Statements Required Supplementary Information Notes to the Required Supplementary Information Combining Financial Statements - Nonmajor Governmental Funds: Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Grant Special Revenue Fund Community Investment Special Revenue Fund Hotel/Motel Occupancy Tax Special Revenue Fund Tax Increment Reinvestment Zone One Special Revenue Fund Capital Projects Fund Transportation and Other Infrastructure Fund 1998 General Obligation Bonds Fund 2000 Certificate of Obligation Bonds Fund 2000 General Obligation Bonds Fund 2002 General Obligation Bonds Fund 2004 General Obligation Bonds Fund ll1 Paoe 3 9 10 11 15 17 27 28 30 33 34 36 38 40 42 45 75 79 84 86 89 90 91 92 93 94 95 96 97 98 99 100 City of La Porte Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2006 TABLE OF CONTENTS 2005 Certificate of Obligation Bonds Fund 101 2006 Certificate of Obligation Bonds Fund 102 2006 General Obligation Bonds Fund 103 Debt Service Fund 104 Supplementary Individual Fund Financial Statements and Schedules - General Fund 105 Schedule of Revenues - Budget and Actual 106 Schedule of Expenditures - Budget and Actual 107 Combining Financial Statements - Nonmajor Enterprise Funds: 113 Combining Statement of Net Assets 114 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 115 Combining Statement of Cash Flows 116 Combining Financial Statements - Internal Service Funds: 117 Combining Statement of Net Assets 118 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 119 Combining Statement of Cash Flows 120 Capital Assets Used in the Operation of Governmental Funds: 121 Schedule by Source 123 Schedule by Function and Activity 124 Schedule of Changes by Function and Activity 126 STATISTICAL SECTiON Net Assets by Component 129 Changes in Net Assets 130 Governmental Activities Tax Revenues by Source 132 Fund Balances of Governmental Funds 133 Changes in Fund Balances of Governmental Funds 134 General Government Tax Revenues by Source 135 Assessed Value and Estimated Actual Value of Taxable Property 136 Property Tax Rates - Direct and Overlapping Governments 138 Principal Property Taxpayers 140 Property Tax Levies and Collections 141 Ratios of Outstanding Debt by Type 142 Ratios of General Bonded Debt Outstanding 144 Direct and Overlapping Governmental Activities Debt 145 Legal Debt Margin Information 146 Pledged Revenue Coverage 148 Demographic and Economic Statistics 149 Principal Employers 150 Full-time Equivalent City Government Employees by Function 151 Operating Indicators by Function 152 Capital Asset Statistics by Function 154 IV INTRODUCTORY SECTION 1 2 January 5, 2007 To the Honorable Mayor, Members of the Governing Council and Citizens of the City of La Porte, Texas: The Finance Department and City Manager's Office is pleased to submit the Comprehensive Annual Financial Report for the City of La Porte, Texas for the fiscal year ended September 30, 2006. This report is published to provide the City Council, City staff, our citizens, our bondholders and other interested parties with detailed information concerning the financial condition and activities of the City government. This report consists of management's representations concerning the finances of the City of La Porte. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the City of La Porte's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of La Porte's comprehensive framework of internal contro!s has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of La Porte's financial statements have been audited by Null-Lairson, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of La Porte for the fiscal year ended September 30, 2006 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amount and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of La Porte's financial statements for fiscal year ended September 30, 2006, are fairly presented in conformity with GAAP. The independent auditor's report is presented as a component of the financial section of this report. 3 The independent audit of the financial statements of the City of La Porte included a federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of La Porte's separately issued Single Audit Report, GMP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of La Porte's MD&A can be found immediately following the report of the independent auditors, Profile of the City The City of La Porte, incorporated in 1892, is located in the southeast quadrant of Harris County and is bounded on the north by the Houston ship channel, on the east by Galveston Bay and the south by the Bayport channel. The City of La Porte currently encompasses 19 square miles and serves a population of 34,825. The City is a home rule city operating under the Council-Manager form of government. Policy- making and legislative authority are vested in a governing council consisting of the mayor and eight other members. The city council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring both the City Manager and Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City and for appointing the heads of various departments. The Council is elected on a non-partisan basis, The Mayor and Council members serve three-year staggered terms. Six of the council members are elected by district. The Mayor and the two remaining council members are elected at large. The City of La Porte provides a full range of services, including police and fire protection, the construction and maintenance of streets and other infrastructure and recreational activities and cultural events. Certain services are provided through a legally separate Water Authority, which functions, as a blended component unit and in essence, is a department of the City of La Porte, and, therefore, has been included as an integral part of the City of La Porte's financial statements. Additional information on the Water Authority and other blended component units can be found in Note 1.B. of the notes to the financial statements. The City's accounting records for general governmental operations are maintained on a modified accrual basis, with the revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred. Accounting records for the City's utilities and other proprietary activities are maintained on the accrual basis. The annual budget serves as the foundation for the City of La Porte's financial planning and control. Budgetary control has been established at the individual department level. All agencies of the City of La Porte are required to submit requests for appropriation to the City Manager on or before May 26 of each year. The City Manager uses these requests as the starting point 4 for developing a proposed budget. The City Manager then presents this proposed budget to council for review prior to August. The council is required to hold a public hearing on the proposed budget and to adopt a final budget by no later than August. The appropriated budget is prepared by fund, function (e.g., public safety) and department (e.g., police). The City Manager must approve transfers of appropriations within a department. Transfers of appropriations between funds, however require the special approval of the city council. Budget-te-actual comparisons are provided in financial reports for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page 76 as part of the required supplementary information. For governmental funds, other than the general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report, which starts on page 81. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of La Porte operates. Local economy. The City of La Porte is located in the southeast quadrant of Harris County, which is a 1,723 square mile county is a leading oil, gas and petrochemical areas. It has more than 3,200 manufacturing plants, the nation's largest concentration of petrochemical plants, the third largest United States seaport and is a corporation management center. A significant part of the County's major employers, manufacturers, education and financial institutions are located in Houston, the County seat. The Texas Medical Center, located in Harris County, is one of the nation's largest, providing medical care and educational opportunities. The county's 64 hospitals have over 17,000 beds of which 4,600 are in the Texas Medical Center. Higher education facilities includes: University of Houston, Rice University, Texas Southern University, St. Thomas University and Houston Baptist College, all offering full four-year as well as postgraduate programs. The Lyndon B. Johnson Space Center is also located here. Located some 20 miles southeast of Houston on Galveston Bay in Harris County are the three communities that make up the La Porte Bayshore Area: La Porte, Morgan's Point and Shoreacres. The area has a combined population of approximately 40,000. Though much of the image of this area is industrial, the La Porte-Bayshore area is still characterized by an expanse of resort homes. Because of this, and the metropolitan advantages of Houston, La Porte is one of the few communities in the Gulf Coast area that offers this favorable combination, Future planning. The La Porte 2020 Comprehensive Plan is a 20-year master plan adopted by the City Council to guide policy decisions relating to the physical and economic development of the community. In general, the plan indicates how the community desires to develop and redevelop over the course of the next twenty years. The comprehensive plan is a physical plan; it is long- range, comprehensive and states the goals, objectives and policies of the local government. The comprehensive plan provides clear direction through specific statements of action to achieve the desired results envisioned by citizens and the leadership of the community. 5 The essential objectives of the comprehensive plan are as follows: ..:.. It is a plan to guide the future physical development and redevelopment of the community; ..:.. The time frame is long, extending over a twenty-year horizon; ..:.. It encompasses a large geographic area including the corporate limits and ET J 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. As the city continues to develop it is important that the integrity of the neighborhoods is preserved and the value and enjoyment of property is maintained and enhanced. Goals for residential development: ..:.. Consider programs to revitalize and rehabilitate existing housing where needed. ..:.. Meet the future housing needs by providing 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 create livable and safe neighborhood environments. ..:.. Protect the attractive appearance and environmental quality of existing neighborhoods and make necessary improvements to maintain the value of properties and enhance the quality of life. Beautification and Conservation. Citizens have expressed great interest for enhancing the visual appearance of La Porte and the redevelopment and reinvestment in Downtown, along major corridors and in nonresidential areas. Through public involvement it is apparent that citizens visualize attractive shopping centers, livable neighborhoods, landscaped roadways, pleasant places to walk and an enhanced quality of life. They want successful shopping areas that appeal to shoppers. They see the opportunities in 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. 6 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. .:. Invest in Downtown to establish a vibrant mix of places to work, live and visit, with shops, restaurants, entertainment and a variety of dwelling units. Redevelopment Strategy. Urban redevelopment efforts require cooperative action to encourage new and sustained private investment and to provide supporting rehabilitation of public infrastructure, A key part of the process is determining what strategic actions the community should take to achieve its redevelopment goals and objectives. Successful redevelopment will often require cooperation and coordination between agencies at different levels of government as well as non-profit community organizations. This should include coordination of physical improvements with social service programs, which aim to enhance the health and economic capacity of residents in targeted neighborhoods. Redevelopment Goals: .:. Stabilize and improve the quality of neighborhoods and other areas in decline by attracting renewed private investment activity. .:. Revitalize the City's historic downtown area. Cash management policies and practices. Cash temporarily idle during the year was invested in demand deposits and obligations of the U.S. Treasury. The maturities of the investments range from 30 days to 2 years, with an average maturity of 4.5 months. The average yield on investments was 3.67% for the government. Investment income includes appreciation in the fair value of investments. Increases in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments that the City intends to hold to maturity. Pension and other post employment benefits. The City of La Porte sponsors a single-employer defined benefit pension plan for its emergency services employees. Each year, an independent actuary engaged by the pension plan calculates the amount of the annual contribution that the City of La Porte must make to the pension plan to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis. The City of La Porte also provides pension benefits for its non emergency services employees. These benefits are provided through a state-wide plan managed by Texas Municipal Retirement System (TMRS). The City of La Porte has no obligation in connection with employee benefits offered through this plan beyond its annual contractual payment to TMRS. The City of La Porte also provides postretirement health and dental care benefits for certain retirees and their dependents. As of the end of the current fiscal year, there were 57 retired employees receiving these benefits, Additional information on the City of La Porte's pension arrangements and post employment benefits can be found in Notes 6 and 10 in the notes to the financial statements. 7 Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended September 30,2005. This was the twenty-fifth consecutive year that the City has received this prestigious award, In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to detennine its eligibility for another certificate. In addition, the government also received the GFOA's Distinguished Budget Award for its annual budget document. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide and a communications device. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance and administration department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the mayor and city council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of La Porte's finances. Respectfully submitted, John Joems Interim City Manager Michael G. Dolby, CPA Interim Director of Finance 8 ~ ~~ ~u ~~ ~~ ~E::: eN ~~ u~ ~ ~ ~ .s .. .. " .. ct:l .e- o ... ... 01) = = = ~ a U .. .. I>Il .. = .. ~ .e- o :; l .., < ~ ~ " == .c = =-- .' Certificate of Achievement for Excellence in Financial Reporting Presented to City of La Porte Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2005 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) acbieve the bighest standards in government accounting and financial reporting. President ~/~ Executive Director CITY OF LA PORTE LIST OF ELECTED OFFICIALS ALTON PORTER MAYOR PETER GRIFFITHS COUNCIL PERSON AT LARGE A "'.,,,,.-----=----...",, ~ ."""--.... """ ..... r .......... /,/,,( ',., / , / ' ./' '- BARRY BEASLEY COUNCIL PERSON AT LARGE B LOUIS RIGBY COUNCIL PERSON DISTRICT 5 CHUCK ENGELKEN COUNCIL PERSON DISTRICT 2 ! MICHAEL MOSTE1T COUNCIL PERSON DISTRICT 1 HOWARD EBOW .'. COUNCIL PERSON ..... DISTRICT 3 . TOMMY MOSER 'MAYOR PRO TEM . DISTRICT 4 f "," / .~~",.....~ MIKE CLAUSEN COUNCIL PERSON DISTRICT 6 11 12 FINANCIAL SECTION 13 14 ] ] Greenway Plaza, Suite 1515 Houston, TX 77046 (713) 621-]5]5 Fax: (713) 621-]570 h 1\1 LIlt ~ Lairsofl PROF::::::SOi ,',\ CCl;~:;': liL}lJ!, 2117 Post Office Street Galveston, TX 77550 (409) 762,8380 Fax: (409) 762-1749 CERTIFIi~D t.1LF)!.Ie /-\.ccrfJ!,_:Tr~- "is Independent Auditors' Report To the Honorable Mayor and Members of the City Council City of La Porte, Texas We have audited the accompanying financial statements of the governmental actIvItIes, the business-type activities, each major fund and the aggregate remaining fund information of City of La Porte, Texas (the "City"), as of and for the year ended September 30, 2005, which collectively comprise the City's basic financial statements as listed in the table of contents. These fmancial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our oprmons. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of La Porte, Texas, as of September 30,2005, and the respective changes in fmancial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. MEIVlBEfS AI&:R1CA', n,STITUTE OF CERTIFIED PUBLIC- ACCOU1,TANTS, TEXI\S SOCIETY OF CERTIFIED PUBL.\C~CCOUNTANTS, CPA ASSOCL~TES n,rrERXUJONAL, lNC VI~TH ASSOCL'.TED OFFICES IN PRINCIPAL U.S AND ThrrER"ATJO".L.LCJTIES 15 To the Honorable Mayor and Members of the City Council City of La Porte, Texas Page 2 of2 In accordance with Government Auditing Standards, we have issued our report dated December 30, 2005, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions or laws, regulations, contracts and grants. That report, which has been issued separately from this document, is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The Management's Discussion and Analysis on pages 17 through 23, budgetary comparison information on pages 74 through 75 and Required Pension System Supplementary Information on page 73 are not required parts of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual fund statements and schedules and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic fmancial statements and, accordingly, we express no opinion on them. ~ J( ~~SI't,f?C December 30, 2005 Houston, Texas 16 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2006 As management of the City of La Porte, we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2006, We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3-8 of this report. FINANCIAL HIGHLIGHTS . The assets of the City of La Porte exceeded its liabilities at the close of the most recent fiscal year by $90,229,405 (net assets). Of this amount $22,613,946 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors in accordance with the City's fund designation and fiscal policies and working capital requirements. . The government's total net assets increased by $3,961,264. . As of the close of the current fiscal year, the City of La Porte's governmental funds reported combined ending fund balances of $37,296,935, Of this amount, $34,743,121 (91%) is unreserved and available for use within the City's designation and policies and working capital requirements, . At the end of the current fiscal year, unreserved fund balance for the general fund was $10,882,101 approximately (42%) of the total general fund expenditures, OVERVIEW OF THE FINANCIAL STA TEMENTS This discussion and analysis is intended to serve as an introduction of the City's basic financial statements, The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements, This report also contains other supplementary information in addition to the basic financial statements themselves, Government-wide financial statements - The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business, The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets, Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net assets changed during the fiscal year. All changes in net assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e,g., uncollected taxes and earned but unused compensated absences), Both of the government-wide financial statements report functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, health and sanitation and culture and recreation. The business-type activities of the City include the Water and Sewer Utilities, Airport, La Porte Area Water Authority, Sylvan Beach Convention Center and Bay Forest Golf Course operations. The government-wide financial statements can be found on pages 27-31 of this report. 17 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30,2006 Fund financial statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements, All of the funds of the City can be divided into two categories - governmental funds and proprietary funds, Governmental funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year, Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and the governmental fund statements of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities, The City maintains 16 governmental funds. Information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances for the General, 2005 General Obligation Bond and Section 4B Sales Tax Fund, all of which are considered to be major funds, Data from the other 13 governmental funds are combined into a single, aggregated presentation called non-major. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 27-36 of this report, Proprietary funds - The City maintains two types of proprietary funds, Proprietary funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses proprietary funds to account for its utilities, airport, water authority, convention center and golf course, Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions, The City uses its internal service funds to account for its motor pool services, technology services and Insurance Fund, Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements, Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Utility and La Porte Area Water Authority, Airport, Bay Forest Golf Course and Sylvan Beach Convention, All internal service funds are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report, The basic proprietary fund financial statements can be found on pages 38-43 of this report. Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements, The notes to the financial statements can be found on pages 45-74 of this report. 18 CiTY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30,2006 Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees, Required supplementary information can be found on pages 75-78 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information for the general fund. Combining fund statements and schedules can be found on pages 84-104 of this report, GOVERNMENT-WiDE FINANCIAL ANAL YS/S As noted earlier, net assets may serve over time as a useful indicator of a government's financial position, In the case of the City of La Porte, assets exceeded liabilities by $90,229,405 at the close of the fiscal year. By far the largest portion of the City's net assets (65%) reflects its investment in capital assets (e,g" land, buildings, machinery, equipment, improvements, construction in progress and infrastructure), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending, Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities, City of La Porte's Net Assets Governmental Business-Type Activities Activities Total 2006 2005 2006 2005 2006 2005 Current and other assets $ 52,030,444 $ 43,543,568 $ 8,234,088 $ 7,559,518 $ 60,264,532 $ 51,103,086 Capital assets 45,974,337 46,416,520 38,697,136 33,734,685 84,671,473 80,151,205 Total Assets 98,004,781 89,960,088 46,931,224 41,294,203 144,936,005 131,254,291 Long term liabilities 36,734,566 31,157,332 9,444,485 7,498,569 46,179,051 38,655,901 Other liabilities 5,545,899 3,857,929 2,846,688 2,533,691 8,392,587 6,391,620 Total Liabilities 42,280,465 35,015,261 12,291,173 10,032,260 54,571,638 45,047,521 Net Assets: Invested in capital assets, net of related debt 28,424,346 28,933,050 29,642,136 26,589,684 58,066,482 55,522,734 Restricted 7,690,387 6,642,077 2,185,791 3,407,445 9,876,178 10,049,522 Unrestricted 19,269,532 19,369,700 2,812,123 1,264,814 22,081,655 20,634,514 Total Net Assets $ 55,384,265 $ 54,944,827 $ 34,640,048 $ 31,261,943 $ 90,024,313 $ 86,206,770 An additional portion of the City's net assets $9,548,978 (11 %) represents resources that are subject to external restrictions on how they may be used, The remaining balance of unrestricted net assets of $22,613,946 (25%) may be used to meet the government's ongoing obligations to citizens and creditors, As of September 30, 2006, the City is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate categories - governmental and business-type activities. 19 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2006 Analysis of the City's Operations - the following table provides a summary of the City's operations for the year ended September 30, 2006, with comparative totals for year ended September 30, 2005. Governmental activities decreased the City of La Porte's net assets by $246,363. Business-type activities increased the City's net assets by $3,378,104, City of La Porte's Changes in Net Assets Governmental Business-Type Activities Activities Total 2006 2005 2006 2005 2006 2005 Revenues: Program Revenues: Charges for Services $ 4,535,854 $ 4,083,297 $ 9,435,426 $ 8,254,116 $ 13,971,280 $ 12,337,413 Operating grants and contributions 1,106,597 2,639,934 1,106,597 2,639,934 General revenues: Property taxes, levied for general purposes 10,535,316 10,192,599 10,535,316 10,192,599 Property taxes, levied for debt service 1,661,801 1,623,095 1,661,801 1,623,095 Industrial payments 7,659,591 6,991,926 7,659,591 6,991,926 Franchise taxes 1,986,698 1,885,801 1,986,698 1,885,801 Sales tax 4,067,767 3,459,979 4,067,767 3,459,979 Unrestricted investment earnings 1,874,828 720,137 300,099 165,162 2,174,927 885,299 Miscellaneous 946,873 753,595 694,507 827,183 1,641,380 1,580,778 Gain Ooss) on sale1retirement of capital assets 103,594 (16,083) (16,083) 103,594 Total revenues $ 34,375,325 32,453,957 10,413,949 9,246,461 44,789,274 41,700,418 Expenses: General Governrnent 7,889,325 7,411,122 7,889,325 7,411,122 Public Safety 11,603,287 10,367,759 11,603,287 10,367,759 Public Works 4,550,504 5,164,855 4,550,504 5,164,855 Health and Sanitation 1,862,368 1,887,204 1,862,368 1,887,204 Culture and Recreation 3,579,917 3,717,791 3,579,917 3,717,791 Interest on Long-term debt 1,226,231 863,818 1,226,231 863,818 Water Services 6,743,463 6,477,962 6,743,463 6,477,962 Sewer Services 1,894,415 1,819,756 1,894,415 1,819,756 Airport 122,548 157,186 122,548 157,186 Bay Forest Golf Course 1,285,121 1,242,613 1,285,121 1,242,613 Sylvan Beach Convention Center 214,552 211,682 214,552 211,682 Total Expenses 30,711,632 29,412,549 10,260,099 9,909,199 40,971,731 39,321,748 Change in net assets before transfers 3,663,693 3,041,408 153,850 (662,738) 3,817,543 2,378,670 Transfers (3,910,056) 381,625 3,224,254 (381,625) (685,802) Change in net assets (246,363) 3,423,033 3,378,104 (1,044,363) 3,131,741 2,378,670 Net assets - beginning 55,630,628 51,521,794 31,261,944 32,306,306 86,892,572 83,828,100 Net assets - ending $ 55,384,265 $ 54,944,827 $ 34,640,048 $ 31,261,943 $ 90,024,313 $ 86,206,770 20 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30,2006 FINANCIAL ANAL YS/S OF THE GOVERNMENT'S FUNDS Governmental funds - The focus of the City of La Porte's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources, Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of La Porte's governmental funds reported combined ending fund balances of $37,296,935. Approximately 95% of this total amount ($34,077,006) constitutes unreserved fund balance. The remainder of the fund balance is reserved to indicate that it is not available for new spending because it has already been committed 1) to pay for encumbrances ($140,055), 2) to provide for inventories ($72,109), 3) to pay for debt service ($1,813,887), 4) to provide for municipal court building security ($106,652), 5) to provide for municipal court technology ($73,724), 6) to provide for park zone ($80,902) and 7) to provide for confiscated funds ($116,391), In the general fund, the City budgeted for a decrease in the fund balance of $213,070. Due to actual expenses being less than budgeted, the actual fund balance increase for fiscal year 2006 was $1,963,031, The 2005 General Obligation Fund balance decreased by $604,347 due to the expenditure of bond proceeds, Other Governmental fund balances increased in 2006 by $3,162,306 due to increased revenues and other sources of financing, The Section 4B Fund balance increased by $627,110 due to additional revenues, Proprietary funds - The City's proprietary fund statements provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets of the respective proprietary funds are Utility - $1,337,241, Airport $338,580, La Porte Area Water Authority - $1,338,767, Sylvan Beach Convention Center -$134,357 and Bay Forest Golf Course- $(306,824)The change (decrease) in net assets of the proprietary funds in 2006 was as follows: Utility- $4,177,504, Airport -$(74,748), La Porte Area Water Authority - $123,645, Sylvan Beach Convention Center-- $14,539), and Bay Forest Golf Course -$(147,958). General Fund Budgetary Highlights - The City made revisions to the original appropriations approved by the City Council. Overall these changes resulted in an increase from the original budget of 1% or $210,076, Variances noted in the general fund are due to City Council appropriating additional capital projects, increased spending for public safety projects and salary savings, CAPITAL ASSETS AND DEBT ADMfNfSTRA TION Capital Assets - The City of La Porte's investment in capital assets for its governmental and business-type activities as of September 30,2006 amounts to $84,445,230 (net of accumulated depreciation), This investment in capital assets includes land, building, equipment, improvements, infrastructure and construction in progress. Major capital asset events during the current fiscal year included the following: . Construction in progress Fire Station Number 2 $1,2 million, . Construction in progress Police Station $3,1 million, . Automated Meter Reading $2,3 million, 21 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30,2006 Capital Assets at Year-end Net of Accumulated Depreciation Land Buildings Equipment Improvements Infrastructure Construction in Progress Total Governmental Activities 2006 $ 7,685,517 7,776,721 5,237,286 2,889,273 12,277,269 9,983,973 $ 45,850,038 Business-type Activities 2006 $ 2,350,478 88,790 86,637 33,430,326 2,638,961 $ 38,595,192 Total $ 10,035,995 7,865,511 5,323,923 36,319,599 12,277,269 12,622,934 $ 84,445,230 Additional information of the City of La Porte's capital assets can be found in Note 4 on pages 58-60 of this report. Debt Administration - At the end of the current fiscal year, the City of La Porte had bonded debt payable of $43,200,000 . Of this amount, $34,145,000 comprises bonded debt backed by the full faith and credit of the government and $9,055,000 represents bonds secured solely by water and sewer revenues. Outstanding Debt at Year End Bonds Payable General Obligations Revenue Bonds Payable Certificate of Obligations Total Governmental Activities 2006 $ 17,740,000 16,405,000 $ 34,145,000 Business-type Activities 2006 $ 6,430,000 2,625,000 $ 9,055,000 Totals $ 17,740,000 6,430,000 19,030,000 $ 43,200,000 The City of La Porte maintains an "Aa3", "A+", "AN by Moody's, Standard and Poor's and Fitch respectively for general obligation debt. The revenue bonds have been rated "A" by all three of these rating agencies. Additional information on the City of La Porte's long-term debt can be found in Note 5 on pages 61-65 of this report, 22 CiTY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30,2006 ECONOMIC FACTS AND NEXT YEAR'S BUDGETS AND RATES The unemployment rate for the Houston metropolitan area is currently 4.5 percent, which is a decrease from a rate of 6.1 percent a year ago. This compares identical to the state's average unemployment rate of 4,7 percent which is comparable to the national average rate of 4.4 percent. The City's budgets for all funds have benefited from a strong and expanding economy from the past several years, which is anticipated to continue in the upcoming Fiscal Year. The City is projected to benefit from growth in the tax base due to increased valuations and new construction. Total assessed property value for all residential and commercial property in the City of La Porte exceeded $2.1 billion for fiscal year 2006 which is 10 percent higher than last year. The trend for total assessed property values has been steadily increasing each year with an average annual increase of 16 percent over the past 5 years. Sales tax receipts have grown 16% this fiscal year due to an increase in economic activity. This revenue source is the most volatile and subject to decline if an economic slowdown occurs, Assessed Property Valuations (in billions) Sales Tax Collections (in millions) 2002 2003 2004 2005 2006 I 2,1 J- 2/1 I .L- /1 1,9 / . :J 1,8 ,/ I I 1,5 1,6 2002 2003 2004 2005 2006 REQUEST FOR INFORMA nON This financial report is designed to provide our citizens, customers and creditors a general overview of the City's finances, Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Interim Director of Finance, 604 West Fairmont Parkway, La Porte, Texas, 77571, 23 24 BASIC FINANCIAL STATEMENTS 25 26 CITY OF LA PORTE, TEXAS Statement of Net Assets September 30,2006 Primary Government Governmental Business-type Activities Activities Total ASSETS Cash and cash equivalents $ 18,935,758 $ 1,135,241 $ 20,070,999 Investments 27,196,952 4,455,769 31,652,721 Receivables, net of allowance for uncollectibles Accounts receivable 4,485,118 1,156,952 5,642,070 Taxes receivable 761,592 761,592 Due from other governments 4,716 4,716 Accrued interest receivable 183,367 26,289 209,656 Deferred Issuance Costs 346,635 346,635 Materials and supplies inventories at cost 116,306 4,540 120,846 Restricted Assets: Cash and cash equivalents restricted for customer service deposits 505,287 505,287 Investments restricted for debt selVice 125,000 125,000 Other 825,010 825,010 Capital assets: Land 7,685,517 2,350,478 10,035,995 Buildings and improvements 17,732,228 1,166,840 18,899,068 Improvements other than buildings 7,662,126 69,181,385 76,843,511 Infrastructure 26,873,816 26,873,816 Machinery and equipment 13,306,111 429,183 13,735,294 Construction in progress 9,983,973 2,638,961 12,622,934 Accumulated depreciation (37,269,434) (37,069,711 ) (74,339,145) Total assets 98,004,781 46,931,224 144,936,005 LIABILITIES Accounts payable 4,762,821 2,097,523 6,860,344 Accrued salaries payable 296,234 52,100 348,334 Interest payable 88,945 88,945 Unearned revenue 86,557 87,150 173,707 Other current liabilities 5,930 5,930 Premium on Issuance 293,388 293,388 Accrued interest payable 12,728 76,330 89,058 Customer deposits 527,655 527,655 Noncurrent liabilities: Due within one year 1,235,000 585,000 1,820,000 Due in more than one year 35,499,566 8,859,485 44,359,051 Total liabilities 42,280,465 12,291,173 54,571,638 NET ASSETS Invested in capital assets, net of related debt 28,424,346 29,642,136 58,066,482 Restricted for: Debt selVice 1,838,370 2,185,791 4,024,161 Grants and state programs 6,210,617 6,210,617 Unrestricted 19,269,531 2,812,123 22,081,654 Total net assets $ 55,384,264 $ 34,640,048 $ 90,024,312 See accompanying notes to financial statements, 27 CITY OF LA PORTE, TEXAS Statement of Activities For The Year Ended September 30,2006 Program Activities Governmental activities: General Government Public Safety Public Works Health & Sanitation Culture and recreation Interest on Long Term Debt Total governmental activities Expenses Program Revenues Fees, Fines and Operating Charges for Grants and Services Contributions $ 7,889,325 11,603,287 4,550,504 1,862,368 3,579,917 1,226,231 30,711,632 $ 1,002,267 $ 1,333,005 935,588 1,770,611 429,971 95,820 4,535,854 1,031,408 Business-type activities: Water Services 6,743,463 5,438,932 Sewer Services 1,894,415 2,842,495 Airport 122,548 35,624 Golf Course 1,285,121 955,867 Sylvan Beach Convention Ctr 214,552 162,508 Total business-type activities 10,260,099 9,435,426 Total government $ 40,971,731 $ 13,971,280 $ 1,031,408 General revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service Industrial payments Franchise taxes Public service taxes Investment earnings Miscellaneous Gain (Loss) on sale of assets Transfers Total general revenues and transfers Change in net assets Net assets-beginning Net assets-ending See accompanying notes to basic financial statements. 28 Net (Expenses) Revenues and Changes in Net Assets Governmental Activities Business-type Activities Total $ (6,887,058) (9,334,694) (4,550,504) (91,757) (3,054,126) (1 ,226,231) (25,144,370) $ $ (6,887,058) (9,334,694) (4,550,504) (91,757) (3,054,126) (1,226,231) (25,144,370) (1,304,531 ) (1,304,531 ) 948,080 948,080 (86,924) (86,924) (329,254) (329,254) (52,044) (52,O44) (824,673) (824,673) $ (25,144,370) $ (824,673) $ (25,969,043) 10,535,316 10,535,316 1,661,801 1,661,801 7,659,591 7,659,591 1,986,698 1,986,698 4,067,767 4,067,767 1,874,828 300,099 2,174,927 946,873 694,507 1,641,380 (16,083) (16,083) (3,910,056) 3,224,256 (685,800) 24,898,006 4,202,779 29,025,597 (246,364 ) 3,378,106 3,056,554 55,630,628 31,261,944 86,892,572 $ 55,384,264 $ 34,640,050 $ 89,949,126 29 CITY OF LA PORTE, TEXAS Balance Sheet Governmental Funds September 30, 2006 2005 General Section 4B Obligation General Sales Tax Bonds ASSETS Cash and cash equivalents $ 7,507,305 $ 2,516,486 $ 97,152 Investments 5,287,784 1,772,321 7,598,390 Receivables, net of allowance for uncollectibles: Accounts receivable 4,126,733 Taxes receivable 647,980 Due from other governments Grant receivable Other accounts receivables 229,385 918 Accrued interest receivable 74,781 21,224 573 Materials and supplies inventories, at cost 70,126 Total assets 17,714,709 4,539,416 7,697,033 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 2,679,812 651,832 Accrued salaries payable 280,331 Due to other funds Retainage payable Unearned revenue 3,538,917 Accrued employee separation pay 100,000 Total liabilities 6,599,060 651,832 Fund balances: Reserved for: Inventories 72,109 Encumbrances 140,055 Municipal Court Building Security Municipal Court Technology Fee Park Zone Confiscated funds Debt service Unreserved, Designated for capital projects 51 ,084 Unreserved/Undesignated 10,852,412 4,539,415 7,045,200 Unreserved, reported in nonmajor: Special revenue funds Capital projects funds Total fund balances 11,115,660 4,539,415 7,045,200 Total liabilities and fund balances $ 17,714,720 $ 4,539,415 $ 7,697,032 See accompanying notes to basic financial statements, 30 Other Total Governmental Governmental Funds Funds $ 5,794,581 $ 15,915,524 10,319,398 24,977,893 4,126,733 108,386 756,366 4,716 4,716 46,290 276,593 56,059 152,637 70,126 16,329,430 46,280,588 881,195 4,212,839 2,319 282,650 168 168 163,282 3,702,199 100,000 1,046,964 8,297,856 72,109 140,055 106,652 106,652 73,724 73,724 153,006 153,006 119,137 119,137 1,813,887 1,813,887 51,084 22,437,027 1,247,381 1,247,381 11,577,618 11,577,618 15,091,405 37,791,680 $ 16,138,369 46,089,536 31 32 CITY OF LA PORTE, TEXAS Reconciliation of the Governmental Funds Balance Sheet to Statement of Net Assets September 30,2006 Amounts reported for governmental activities in the statement of net assets are different because: Total fund balances - total governmental funds Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in this fund financial statement, but are reported in the governmental activities of the statement of net assets. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds Unearned Revenues Interest payable on long-term debt does not require current financial resources, Therefore, interest payable is not recorded as a liability in governmental funds balance sheets. The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are included in the governmental activities of the statement of net assets, Some liabilities, (such as notes payable, capital lease contract payable, long-term compensated absences and bonds payable), are not due and payable in the current period and are not included in the fund financial statement, but are included in the governmental activities of the statement of net assets: Bonds Payable Premium on Issuance Compensated Absences Payable Bond Issuance Costs Net assets of governmental activities See accompanying notes to basic financial statements, 33 $ 37,791,680 41,546,004 3,617,748 (88,945) 9,126,736 (34,145,000) (293,388) (2,368,201 ) 346,635 $ 55,533,269 CITY OF LA PORTE, TEXAS Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For The Year Ended September 30,2006 2005 General Section 4B Obligation General Sales Tax Bonds REVENUES Property taxes $ 10,454,157 $ $ Franchise taxes 1,986,698 Sales taxes 2,495,547 1,245,774 Donations Industrial payments 7,470,700 Harris County Joint Venture Other taxes 69,310 Licenses and permits 683,284 Fines and forfeits 848,232 Charges for services 3,852,570 Intergovernmental 8,489 Interest 652,700 121,396 303,628 Miscellaneous 24,778 Total revenues 28,546,465 1,367,170 303,628 EXPENDITURES Current: General Government 6,047,422 Public Safety 11,071,829 Public Works 2,360,073 Health and Sanitation 1,813,812 Culture and Recreation 3,010,725 Debt service: Principal retirements Interest and fiscal charges Capital outlay 3,707,975 Total expenditures 24,303,861 3,707,975 Excess (deficiency) of revenues over expenditures 4,242,604 1,367,170 (3,404,347) OTHER FINANCING SOURCES (USES) Proceeds from sale of long term debt Transfers in 647,449 2,800,000 Transfers out (3,045,803) (740,060) Proceeds from sale of Assets 90,083 Total other financing sources (uses) (2,308,271) (740,060) 2,800,000 Net change in fund balances 1,934,333 627,110 (604,347) Fund balances-beginning 9,181,327 3,912,305 7,649,547 Fund balances-ending $ 11,115,660 $ 4,539,415 $ 7,045,200 See accompanying notes to basic financial statements, 34 Other Total Governmental Governmental Funds Funds $ 1,708,484 $ 12,162,641 1,986,698 3,741,321 7,470,700 257,194 326,504 683,284 848,232 35,000 3,887,570 1,165,892 1,174,381 631,439 1,709,163 138,602 163,380 3,936,611 34,153,874 1,189,343 7,236,765 11,071,829 2,360,073 1,813,812 3,010,725 1,195,000 1,195,000 1,374,314 1,374,314 2,842,334 6,550,309 6,600,991 34,612,827 (2,664,380) (458,953) 6,965,000 6,965,000,00 2,608,425 6,055,874 (3,746,739) (7,532,602) 90,083 5,826,686 5,578,355 3,162,306 5,119,402 11,807,991 32,551,170 $ 14,970,297 $ 37,670,572 35 CITY OF LA PORTE, TEXAS Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For The Year Ended September 30, 2006 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances-total governmental funds: Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources, In contrast, the statement of activities reports only a portion of the outlay as expense. The outlay is allocated over the assets' estimated useful lives as depreciation expense for the period, This is the amount by which capital outlays $8,393,314 exceeded depreciation $2,310,704 and losses from the disposition of capital assets in the current period. Governmental funds do not present revenues that are not available to pay current obligations, In contrast, such revenues are reported in the statement of activities when earned, Governmental funds report bond proceeds as current financial resources. In contrast, the statement of activities treats such issuance of debt as a liability, Governmental funds report repayment of bond principal as an expenditure, In contrast, the statement of activities treats such repayments as a reduction in long-term liabilities, This is the amount by which proceeds exceeded repayments, Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds: Accrued interest not reflected in governmental funds Additional compensated absences not reflected in governmental funds Internal service funds are used by management to charge the costs of certain activities, such as fleet maintenance and information technology, to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities. Change in net assets of governmental activities See accompanying notes to basic financial statements, 36 $ 5,119,402 (942,409) 246,841 (5,768,649) (38,129) 59,199 1,077,387 $ (246,358) 37 CITY OF LA PORTE, TEXAS Statement of Net Assets Proprietary Funds September 3D, 2006 Business-type Activities - Enterprise Funds Other La Porte Area Proprietary Utility Water Authority Funds ASSETS Current assets: Cash and cash equivalents $ $ 833,596 $ 301,645 Investments 3,803,599 407,428 244,742 Receivables, net of allowance for uncollectibles 934,103 169,605 53,244 Accrued interest receivable 10,458 12,351 3,480 Miscellaneous receivables Material and supplies inventories, at cost 4,540 Restricted cash and cash equivalents for: Customer service deposits 459,426 45,861 Current debt service 125,000 Investments restricted for: Current debt service 825,010 Total current assets 5,337,126 2,247,990 648,972 Noncurrent assets: Capital assets: Land 266,009 2,084,469 Buildings and improvements 51 ,730 1,115,110 Improvements other than buildings 47,884,819 14,719,440 6,577,126 Vehicles and equipment 319,777 6,130 103,276 Construction in progress 2,519,056 119,905 Less accumulated depreciation (26,794,649) (5,420,933) (4,854,129) Total noncurrent assets 24,246,742 9,304,637 5,145,757 Total assets 29,583,868 11 ;552,627 5,794,729 LIABILITIES Current liabilities: Accounts payable 1 ,794,768 148,523 154,232 Accrued salaries payable 36,712 15,388 Unearned Revenue 87,150 Other current liabilities 5,930 Accrued interest payable 63,250 13,080 Payable from restricted assets: Current portion of revenue bonds 125,000 460,000 Customer deposits 459,526 68,129 Total current liabilities 2,479,256 621,603 330,829 Noncurrent liabilities: Revenue bonds, net of current portion 2,905,000 5,595,000 Accrued separation pay 207,459 152,026 Total noncurrent liabilities 3,112,459 5,595,000 152,026 Total liabilities 5,591,715 6,216,603 482,855 NET ASSETS Invested in capital assets, net of related debt 21,216,742 3,249,637 5,145,757 Restricted for debt service 1,438,171 747,620 Unrestricted (deficit) 1,337,241 1,338,767 166,113 Total net assets $ 23,992,154 $ 5,336,024 $ 5,311,870 See accompanying notes to basic financial statements. 38 Governmental Activities - Internal Totals Service Funds $ 1,135,241 $ 3,078,666 4,455,769 2,160,627 1,156,952 26,289 30,730 81,792 4,540 46,180 505,287 125,000 825,010 8,234,088 5,397,995 2,350,478 1,166,840 69,181,385 429,183 11,726,247 2,638,961 (37,069,711) (7,297,914) 38,697,136 4,428,333 46,931,224 9,826,328 2,097,523 560,225 52,100 15,903 87,150 2,106 5,930 76,330 585,000 527,655 3,431,688 578,234 8,500,000 359,485 121,365 8,859,485 121,365 12,291,173 699,599 29,612,136 4,428,333 2,185,791 2,842,121 4,698,403 $ 34,640,048 $ 9,126,736 39 CITY OF LA PORTE, TEXAS Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds For The Year Ended September 30, 2006 Business-type Activities - Enterprise Funds Other La Porte Area Proprietary Utility Water Authority Funds Operating revenues: User fees $ 7,207,376 $ 1,079,126 $1,160,634 Operating expenses: Personal services 2,369,805 944,256 Supplies 200,153 42 135,702 Other services and charges 2,819,825 1,033,491 271,404 Depreciation 1,446,996 441,913 270,859 Total operating expenses 6,836,779 1,475,446 1,622,221 Operating income (loss) 370,597 (396,320) (461,587) Nonoperating revenues (expenses): Interest income 230,640 44,081 25,378 Interest expense and fiscal charges (175,495) (325,653) Gain (loss) on sale of equipment (7,279) (8,804) Total nonoperating revenue (expenses) 47,866 (281,572) 16,574 Income (loss) before contributions and transfers 418,463 (677,892) (445,013) Capital contributions 3,493,771 858,292 Transfers in 3,084,361 241,000 Transfers out (3,504,891 ) (56,755) (33,232) Change in net assets 3,491,704 123,645 (237,245) Total net assets-beginning 20,500,450 5,212,379 5,549,115 Total net assets--ending $ 23,992,154 $ 5,336,024 $ 5,311,870 See accompanying notes to basic financial statements, 40 Governmental Activities - Internal Totals Service Funds $ 9,447,136 $ 5,868,224 3,314,061 1,361,286 335,897 320,961 4,124,720 4,100,247 2,159,768 869,628 9,934,446 6,652,122 (487,310) (783,898) 300,099 165,671 (501,148) (16,083) (50,631) (217,132) 115,040 (704,442) (668,858) 4,352,063 3,325,361 1,949,442 (3,594,878) (203,197) 3,378,104 1,077,387 31,261,944 8,049,349 $ 34,640,048 $ 9,126,736 41 CITY OF lA PORTE, TEXAS Statement of Cash Flows Proprietary Funds For The Year Ended September 30, 2006 Business-type Activities - Enterprise Funds Other la Porte Area Proprietary Utility Water Authority Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from user fees $ 6,932,518 $ 1,073,420 $ 1,184,726 Cash payments to suppliers (1,748,678) (962,716) (419,041) Cash payments for personal services (2,379,414) (933,806) Net cash provided by operating activities 2,804,426 110,704 (168,121) CASH FLOWS FROM NONCAPITAl FINANCING ACTIVITIES Transfers from other funds 3,084,361 241,000 Transfers to other funds (3,504,891) (56,755) (33,232) Net cash from noncapital financing activies (420,530) (56,755) 207,768 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Payments received from participants for debt service 771,718 Payments received from participants for capital recovery 86,574 Payments for capital acquisitions (4,274,732) Proceeds from sale of assets Proceeds from the sale of bonds 2,625,000 Principal payments on revenue bonds (240,000) (445,000) Interest paid on debt (113,461) (326,719) Net cash (used) by capital and related financing activies (2,003,193) 86,573 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 242,466 38,943 23,919 Net Investments (purchased) sold (59,511 ) 1,022,404 53,579 Net cash provided by investing activities 182,955 1,061,347 77,498 Net increase (decrease) in cash and cash equivalents 563,658 1,201,869 117,145 Balances-beginning of the year 706,568 456,738 230,360 Balances-end of the year $ 1,270,226 $ 1,658,607 $ 347,505 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 370,597 $ (396,320) $ (461,587) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense 1,446,996 441,913 270,859 (Increase) decrease in accounts receivable (297,816) (5,706) 49,125 (Increase) decrease in inventories Increase (decrease) in accrued salaries payable (5,194) 119 Increase (decrease) in accounts payable 1,271,300 70,817 1,023 Increase (decrease) in other current liabilities (60,361 ) Increase (decrease) in customer utility deposits 22,958 22,370 Increase (decrease) in accrued employee separation (4,415) 10,331 Total adjustments 2,433,829 507,024 293,466 Net cash provided by operating activities $ 2,804,426 $ 110,704 $ (168,121 ) Reconciliation of total cash and cash investments: Current Assets - cash and cash equivalents $ $ 833,596 $ 301,645 Restricted Assets - cash and cash equivalents: Customer Deposits 459,426 Current Debt Service 125,000 45,861 Total cash and cash equivalents $ 584,426 $ 833,596 $ 347,506 42 43 44 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2006 1. Summary of significant accounting policies A. General Statement The City of La Porte, Texas (the "City"), was incorporated on August 10, 1892, and operates under a "Council - Manager" form of government and provides the following services as authorized by its charter: public safety, development services, public health and welfare, culture and recreation and waterworks. The accounting and reporting policies of the City relating to the funds included in the accompanying basic financial statements conform to U.S. Generally Accepted Accounting 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 more significant accounting policies of the City are described below. B. Financial Reportinq Entity The City's basic financial statements include the accounts of all City operations. The City, with its elected governing body of mayor and eight council members, is considered a primary government. As required by generally accepted accounting principles, the basic financial statements include the City and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations. All component units have been included as blended component units because of the significance of their operational and financial relationships with the City. The La Porte Area Water Authority (the "Authority") is governed by a five-member board appointed by the City Council. Although it is a legally separate entity, the Authority provides services almost exclusively for the City's water operations, and is in substance a part of the City's primary operations. The Authority was created by the City to finance the operations involved in obtaining surface water supplies and converting these supplies to potable water. This water is sold primarily to the City of La Porte (86%) with the remainder being sold to other neighboring political subdivisions. The operations of the Authority are reported as a proprietary fund type. The Tax Increment Reinvestment Zone One (the "Zone") is governed by a nine-member board appointed by the City Council. The Zone provides benefits exclusively for the City through reinvestment financing of ad valorem taxes, which are utilized for capital improvements for the City of La Porte. The Zone is presented as a governmental fund type. The Section 4B Sales Tax corporation provides services that exclusively benefit the City of La Porte and is governed by a seven-member board appointed by City Council. The Section 4B Sales Tax Corporation is presented as a governmental fund type. Complete financial statements for each of the individual component units may be obtained through the City of La Porte. C. Basis of Presentation Government Wide Statements: The government-wide financial statements (i.e. the statement of net assets and the statement activities) report information on all of the nonfiduciary activities of the City, including the component units. The effect of interfund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely significantly on fees and charges for support. 45 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2006 1. Summary of significant accounting policies - Continued The statement of activities demonstrates the degree to which the direct expenses of a given program or function is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific program or function. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given program or function and 2) operating or capital grants and contributions that are restricted to meeting the operational or capital requirements of a particular program or function. Taxes and other items not properly included among program revenues are reported instead as general revenues. The accounts of the City are organized on the basis of funds each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. Individual funds and account groups summarized in the accompanying financial statements are classified below. Fund Financial Statements: The City segregates transactions related to certain functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Separate statements are presented for governmental and proprietary activities. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Governmental funds are those through which most governmental functions typically are financed. The measurement focus of governmental funds is on the sources, uses and balance of current financial resources. The City has presented the following major governmental funds: (a) General Fund - is the main operating fund of the City. This fund is used to account for all financial resources not accounted for in other funds. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. (b) Section 48 Sales Tax Fund - This fund is used to account for funds received from the % cent sales tax dedicated to certain economic and infrastructure projects. (c) 2005 General Obligation Bond Fund - This fund is used to fund projects that benefit the City in general. A specific project from this issue is the construction of the Police Facility. 46 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 1. Summary of significant accounting policies - Continued Proprietary Funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. The accounting objectives are determinations of net income, financial position and cash flow. All assets and liabilities are included on the Statement of Net Assets. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for the proprietary funds include the cost of personal and contractual services, supplies and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The City reports the following major proprietary funds: (a) Utility Fund - is used to account for the provision of water and sewer services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to administration, operations and maintenance of the water and sewer system and billing and collection activities. The fund also accounts for the accumulation of resources for, and the payment of, long-term debt principal and interest for water and sewer debt. All costs are financed through charges to utility customers with rates reviewed regularly and adjusted if necessary to ensure integrity of the fund. (b) La Porte Area Water Authority Fund - is used to account for revenues and expenses related to obtaining raw surface water and converting it to potable water to be sold to La Porte and neighboring cities. Additionally, the City reports the Internal Service Funds which are used to account for the Motor Pool, Technology and Insurance services provided to other departments of the City on a cost reimbursement basis. D. Measurement Focus and Basis of Accountinq Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The government-wide financial statements and fund financial statements for proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. The economic resources measurement focus means all assets and liabilities (whether current or non-current) are included on the statement of net assets. The operating statements present increases (revenues) and decreases (expenses) in net total assets. Under the accrual basis of accounting, revenues are recognized when they are earned. Expenses are recognized at the time the liability is incurred. Unbilled water and wastewater utility service receivables are accrued as revenues and reflected in the financial statements. 47 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2006 1. Summary of significant accounting policies - Continued Governmental fund financial statements are reported using the current financial resources measurement focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual; Le., when they become both measurable and available. "Measurable" means the amount of the transaction can be determined and "availablen means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the current fiscal period. Most revenue sources "are recorded as revenues when received in cash because they are generally not measurable until actually received. The revenues susceptible to accrual are property and sales taxes, franchise fees, interest income and intergovernmental revenues. A one-year availability period is used for recognition of all other Governmental Fund revenues. Expenditures are recorded when the related fund liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences are recorded only when payment is due. E. Budqetarv Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, special revenue funds and debt service funds. All annual appropriations lapse at fiscal year-end. Project length financial plans are adopted for all capital projects funds. The City uses the following procedures in establishing the budgets reflected in the financial statements: 1. Prior to August, 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 fund, which is the legal level of control. City Council approves changes between departments as well as amendments to the budget during the year as may be required. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund and Proprietary Funds. Formal budgetary integration is not employed for the Debt Service Fund and Capital Projects Funds because effective budgetary control is alternatively achieved through bond indenture provisions and legally binding construction contracts, respectively. 6. The budget for the General Fund and Special Revenue Funds are adopted on a basis consistent with GAAP. Budgets for the Proprietary Funds are utilized for planning, control and evaluation purposes. They are adopted on a basis consistent with GAAP except that bond principal payments and fixed asset acquisitions are treated as expenditures. 7. Budgeted amounts are amended by the City Council during the year. Individual amendments were not material in relation to the original appropriations, which were amended. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting - under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation - is utilized in the governmental funds throughout the year. Encumbered amounts lapse at year-end. However, encumbrances generally are reappropriated as part of the following year's budget. 48 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2006 1. Summary of significant accounting policies - Continued F. Cash and Investments Cash includes amounts in demand deposits, short-term investments, which mature within ninety days of the fiscal year end, and various petty cash funds. The short-term investments are stated at cost or amortized cost, which approximate fair value. The short-term investments consist of U.S. Treasury Bills and deposits in the Texas Local Government Investment Pool (TexPool), the Local Government Investment Cooperative (LOGIC) and Texas Short Term Asset Reserve Program (TexStar) all of which have the general characteristics of a demand deposit account. For purpose of the statement of cash flows, Proprietary Fund types consider temporary investments with a maturity of three months or less when purchased to be cash equivalents. In accordance with Statement No. 31, the City reports all investments at fair value, except for "money market investments" and "2a7-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, LOGIC and TexStar are reported using the pools' share price. G. Prepaid Items Prepaid balances are for payments made by the City in the current year to provide services occurring in the subsequent fiscal year, and the reserve for prepaid items has been recognized to signify that a portion of fund balance is not available for other subsequent expenditures. H. Receivables Receivables as of year-end of the government's individual major and non-major funds and internal service funds, including the applicable allowances for uncollectible accounts, are as follows: 49 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 Fund Taxes Grant Interest Other Accounts Total General $ 1,228,119 $ - $ 74,781 $ $ 6,179,258 $ 7,482,158 Section 4b Sales Tax 21,224 229,385 250,609 Debt Service 321,954 10,438 332,392 Grant 2,643 41 ,981 44,624 Community Investment 3,864 3,864 Hotel/Motel Tax 3,610 3,610 T.1. R.Z. One 1,046 1,046 Capital Improvements 4,716 8,745 13,461 Transportation 6,505 6,505 1998 G.O. Bonds 6,546 6,546 2000 C.O. Bonds 157 157 2000 G.O. Bonds 6,543 6,543 2002 G.O. Bonds 2,550 2,550 2004 C.O. Bonds 3,151 2,157 5,308 2005 C.O. Bonds 2,152 2,152 2005 G.O. Bonds 573 918 1,491 2006 C.O. Bonds 103 103 2006 G.O. Bonds 158 158 Utility 10,458 968,734 979,192 Water Authority 12,351 169,605 181,956 Airport 1,972 2,771 4,743 Sylvan Beach 1,508 1,508 Golf Course 50,473 50,473 Motorpool 13,980 79,711 93,691 Technology 5,643 5,643 Insurance 11 ,1 07 2,081 13,188 Gross Receivables 1,550,073 4,716 209,656 276,593 7,452,633 9,493,671 Less: allowance for uncollectibles (788,481) (2,087,157) (2,875,638) Net total receivables $ 761,592 $4,716 $209,656 $ 276,593 $ 5,365,476 $ 6,618,033 50 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 1. Summary of significant accounting policies - Continued Governmental funds reported unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Revenue recognition is also deferred in connection with resources that have been received, but not yet earned in the proprietary funds. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental and proprietary funds were as follows: Unavailable Unearned Grant General Debt Service Proprietary Revenue Total Delinquent property taxes receivable $ 643,286 $ 108,386 $ $ $ 751,672 Charges for services and customer deposits 2,890,937 87,151 2,978,088 Grant Revenues 49,670 49,670 Total deferred I unearned revenue $ 3,534,223 $ 108,386 $ 87,151 $ 49,670 $ 3,779,430 I. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results may differ from those estimates. J. Indirect Expense Allocations It is the policy of the City not to allocate indirect expenses to various functions in the Government-wide Statement of Activities. K. Restricted Assets The City applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. L. Inventories Inventories consist of material and supplies and are valued at cost (first-in, first-out). Inventories for all funds consist of expendable supplies held for consumption and the cost thereof is recorded as an expenditure at the time individual inventory items are issued. Reported inventories in the Governmental Funds are offset by a fund balance reserve, which indicates they are unavailable for appropriation even though they are a component of net current assets. M. Interfund Transactions Transactions Between Funds Transactions between funds that would be treated as revenues, expenditures or expenses if they involved organizations external to the governmental unit are accounted for as revenues, expenditures or expenses in the funds involved. Transactions, which constitute reimbursement to a fund for expenditures or expenses initially made from that fund, which are properly attributable to another fund, are recorded as expenditures or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is reimbursed. Nonrecurring or non routine transfers of equity between funds are reported as additions to, or reductions of, the fund balance of Governmental Funds. All other legally authorized transfers are treated as transfers and are included in the results of operations of both Governmental and Proprietary Funds. 51 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 N. Capital Assets 1. Summary of significant accounting policies - Continued Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the fund financial statements for proprietary funds. Capital assets are defined by the government as assets with an initial unit cost of $5,000 or more and an estimated useful life exceeding two years. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at their fair market value on the date donated. Repairs and maintenance that do not add to the value of the asset or extend assets lives are recorded as expenses. Interest cost during construction is capitalized when the effect of capitalization materially impact the financial statements. During the year ended September 30, 2006, no interest costs were capitalized. Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives: Buildings Water and Sewer System I nfrastructu re Machinery and Equipment Improvements O. Compensated Absences 20 years 20 - 40 years 20 - 30 years 4 -10 years 20 years The City's employees earn vacation and sick leave, which may either be taken or accumulated, up to certain amounts, until paid upon termination or retirement. For all funds, this liability reflects amounts attributable to cumulative employee services already rendered, where the payment is probable and can be reasonably estimated. The current and long-term portions of the governmental fund type liabilities are recorded in the Government-Wide Statement of Net Assets. The proprietary fund type liability is recorded as a liability in the individual proprietary funds since payment of this liability will be made from resources of these funds. Also, for the governmental activities, compensated absences are generally liquidated by the general fund. Policies relating to the accrual and payment of these benefits are as follows: · Vacation - Employees earn from 10 to 25 days of vacation per year. Upon separation, employees are paid for all accumulated vacation leave (up to one and one half times their annual accrual rate). · Sick Leave - Employees earn an average of 10 sick hours per month of service. Non-civil service employees hired after November 19, 1991 and who have completed 10 consecutive years of service with the City, are paid for accumulated sick leave, subject to a limit of 480 hours. Civil service employees are subject to a limit of 720 hours. The liability for compensated absences at September 30, 2006 is comprised of the following: Vacation Sick Leave Total All Funds Governmental $ 675,505 1,595,279 $ 2,270,784 52 Business Type $ 124,553 198,404 $ 322,957 Total $ 800,058 1,793,683 $ 2,593,741 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 1. Summary of significant accounting policies - Continued P. LonQ-term ObliQations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Q. Reservations of Fund Balances The fund balance reserves for revenue bond retirement and construction, prepaid items, inventory and debt service are discussed in Notes 5, 1 (G), 1 (L) and 1 (C), respectively. Other reserves of funds are for the Municipal Court Building Security Fees and Municipal Court Technology Fees, park zone and confiscated funds. R. Net Assets Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciations, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets and adding back unspent proceeds. Net assets are reported as restricted when there are limitations imposed on their use either through the enabling legislations adopted by the city or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. 2. Cash, Cash Equivalents and Unvest:ments Cash and Cash Equivalents The City reports cash and cash equivalents in the City's statement of cash flows for Proprietary Fund Types and in all other financial statements of financial position. The City considers cash and cash equivalents to be cash on hand, demand deposits, certificates of deposit, balances in privately managed public funds investment pools and money market mutual funds. Investments Investments consist of balances in privately managed public funds investment pools, money market mutual funds and investments in United States (US) Agency securities. The City reports all investments at fair value based on quoted market prices at year-end date. The Texas Public Funds Investment Act (PFIA), as prescribed in Chapter 2256 of the Texas Government Code, regulates deposits and investment transactions of the City. In accordance with applicable statutes, the City has a depository contract with an area bank (depository) providing for interest rates to be earned on deposited funds and for banking charges the City incurs for banking services received. The City may place funds with the depository in interest and non-interest bearing accounts. Statutes and the depository contract require full security for all funds in the depository institution through federal depository insurance or a combination of federal depository insurance and acceptable collateral securities and/or an acceptable surety bond. The City requires the depository to place the collateral securities with an independent trustee institution. The depository is required to deliver the 53 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 2. Cash, Cash Equivalents and Investments - Continued safekeeping receipts to the City. In accordance with Texas statutes, the safekeeping receipts are in the name of the depository with proper indication of pledge of the collateral securities by the depository to secure funds of the City. The City must approve all collateral securities pledged and also must approve in writing any changes to the pledged collateral securities. The City has adopted a written investment policy regarding the investment of its funds as defined by the PFIA. The PFIA also requires the City to have independent auditors perform test procedures related to investment practices as provided by the Act. The City complies with the requirements of the Act and with local policies. The City's investment policy permits investment of City funds in only the following investment types, consistent with the strategies and maturities defined in the policy: ~ Obligations of the U.S., its agencies and instrumentalities. ~ Direct obligations of the State of Texas or its agencies. ~ Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States. ~ Other obligations, the principal and interest on which are unconditionally guaranteed or insured by, or backed by full faith and credit of the State of Texas or the United States or their agencies and instrumentalities. ~ Obligations of states, agencies, counties, cities and other political subdivisions of any state having been rated as to the investment quality by a nationally recognized investment firm and having received a rating of not less than A or its equivalent. ~ Certificates of Deposit issued by state and national banks or savings and on associations domiciled in this state that are: a. guaranteed or insured by the Federal Deposit Insurance Corporation; or b. secured by obligations that are described in 1-5 above, which are intended to include all direct federal agency or instrumentality issued mortgage backed securities that have a market value of not less than the principal amount of the certificates or in any other manner and amount provided by law for deposit of the investing entities. ~ Certificates of Deposit and share certificates issued by a state or federal credit union domiciled in the State of Texas that are guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, or are secured as to principal by obligations described in 1 through 5 above in any other manner and amount provided by law for the City deposits. ~ Fully collateralized repurchase agreements having a defined termination date, secured by obligations of the United States, its agencies or instrumentalities, pledged with a third party selected or approved by the political entity, and placed through a primary government securities dealer, as by the Federal Reserve or through a financial institution domiciled in the State of Texas. ~ Prime domestic banker's acceptances, defined as a banker's acceptance with a remaining term of 270 days or less, if the short-term obligations of the accepting bank or its parent are rated at least "A-1" or "P-1" or equivalent by at least one nationally recognized credit rating agency. ~ Commercial paper that is rated at least "A-1" or "P-1" or the equivalent by either (a) two nationally recognized credit agencies or (b) one nationally recognized credit rating agency if the paper is fully secured by an irrevocable letter of credit issued by a U.S. or State bank. ~ SEC-registered no-load money market mutual fund (MMMF), with a dollar weighted average portfolio maturity of 90 days or less, includes in their investment objectives the maintenance of a stable net asset value of $1 for each share. ~ SEC-registered, no-load money market mutual funds (MMMF) that have an average weighted maturity of less than two years, invests exclusively in obligations described above and are continuously rated as to investment quality by at least one nationally recognized investment rating firm of no less than "AAA" or its equivalent. ~ Authorized government investment pools that invest solely in obligations of any of the above investments provided that the pools are rated no lower than "Aaa" or "AAA" or an equivalent by at least one nationally recognized rating service. 54 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 2. Cash, Cash Equivalents and investments - Continued Deposit and Investment Amounts At year-end, the City recorded cash on hand, demand deposits, certificates of deposit, balances in privately managed public funds investment pools, money market mutual funds, and investments stated at fair value of $51,688,557. The following schedule shows the City's recorded cash and investments at year-end: Cash Bank Deposits Pooled Funds Investments Total General $ 1,205,760 $ 6,330,243 $ 5,287,784 $ 12,823,787 Debt Service 170,995 897,725 752,683 1,821,403 Capital Projects 477,614 17,124,115 2,467,282 20,069,011 Special Revenue Funds 580,179 3,045,941 2,553,096 6,179,216 Total Governmental Funds 2,434,549 27,398,023 11,060,845 40,893,417 Internal Service Funds 492,587 2,586,079 2,160,627 5,239,293 Total Governmental Activities 2,927,135 29,984,103 13,221,472 46,132,710 Enterprise (56,835) 3,871,267 1,741,415 5,555,847 Total $ 2,870,300 $ 33,855,370 $ 14,962,887 $ 51,688,557 Quoted market prices are the basis of the fair value for US Agency securities and commercial paper. The amount of increase or decrease in the fair value of investments during the current year is included in the City's investment income as follows: Interest Income Net Increase (Decrease) in Fair Value of Investments Total Investment Income $ 2,122,366 50,053 $ 2,172,419 Investment Risks At year-end, the City had the following investments, shown below for all funds by investment type: Investment Type Public funds investment pools US Agency securities Total Fair Value $ 33,855,370 14,962,887 $ 48,818,257 55 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 2. Cash, Cash Equivalents and Investments - Continued Interest Rate Risk At year-end, the City had the following investments subject to interest rate risk disclosure, under U.S. generally accepted accounting principles, by fund: Investment Type/Fund US Agency securities/General US Agency securities/Debt Service US Agency securities/Capital Projects US Agency securities/Special Revenue US Agency securities/lnternal Service US Agency securities/Enterprise Fair Value $ 5,287,784 752,683 616,011 4,404,367 2,160,627 1,741,415 $ 14,962,887 Weighted Average Maturities (Months) 9.4 9.4 9.4 9.4 9.4 9.4 The City's investment policy specifies the maximum stated maturity, from the date of purchase; for any individual investment may not exceed 5 years and the maximum dollar-weighted average maturity for the pooled fund group (investment portfolio) may not exceed 2 years. Concentration of Credit Risk The policy does require investments to be staggered in a way that protects interest income from the volatility of interest rates. The policy has not established limitations on percentages of total portfolio that may be invested in securities other than repurchase agreements, Treasury bills and notes or insured and collateralized Certificates of Deposits. Investment Type Agency Notes Investment Pools Fair Value $ 14,962,887 33,855,370 $48,818,257 Percentage of Total Portfolio 48% 52% 100% Credit Risk At year-end balances in TexPool, a privately managed public funds investment pool was rated AAAm by Standard & Poor's, balances in TexStar, a privately managed public funds investment pool was rated AAAm by Standard & Poor's and balances in Logic, a privately managed public funds investment pool was rated AaalMR1 + by Standard and Poor's. Federal Home Loan Bank (FHLB) agency notes, Federal Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA) agency notes were rated AAA by Standard & Poor's, AAA by Fitch Ratings and Aaa by Moody's Investors Service. All credit ratings met acceptable levels required by legal guidelines prescribed in both the PFIA and the City's investment policy. Legal guidelines require an A1 rating by Standard & Poor's and a P-1 rating by Moody's Investors Service for investments in commercial paper. 56 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 3. Property tax The appraisal of property within the City is the responsibility of the Harris County Appraisal District (the "Appraisal District"). The Appraisal District is required under the Property Tax Code to appraise all property within the county on the basis of 100% of its market value. The value of real property within the Appraisal 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 percent, qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than 8 percent above the effective tax rate. The City's property taxes are levied annually in October on the basis of the Appraisal District's assessed values as of January 1 of that calendar year. Appraised values are established by the Appraisal District at market value, assessed at 100% of appraised value and certified by the Harris County Appraisal District Board of Review. The City's property taxes are billed and collected by the City's Tax Assessor/Collector. Such taxes are applicable to the fiscal year in which they are levied and become delinquent with an enforceable lien on property on January 1 of the current calendar year. The City is permitted, by Article XI, Section 5, of the State of Texas Constitution and the City Charter, to levy property taxes up to $2.50 per $100 of assessed valuation for general governmental services. Within the $2.50 maximum levy, there is no legal limit upon the amount of property taxes, which can be levied for debt service. The property tax rates to finance general governmental services and debt service for the 2005-06 tax year were $0.613 and $0.097, respectively, per $100 of assessed valuation. The 2005 assessed value and total tax levy as adjusted through September 30, 2006 were $1,695,166,598 and $12,035,686 respectively. The City has enacted an ordinance providing for the exemption of twenty percent (20%) of the assessed value of residential homesteads plus and additional $60,000 for persons 65 years of age or older for property taxes. An exemption of $60,000 is allowed for disabled persons on homesteads and up to $12,000 is allowed for disabled veterans on anyone piece of property. Additionally, the market value of agricultural land is reduced to agricultural value for purposes of the City's tax levy calculation. 57 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 4. Capital Assets Capital asset activity for the year ended September 30, 2006 was as follows: Beginning Ending Balance Retirements & Balance 10/01/05 Additions Adjustments 09/30/06 Governmental activities: Capital assets, not being depreciated: Land $ 7,682,585 $ 2,933 $ $ 7,685,518 Construction in progress 9,426,494 4,518,754 (3,961,274) 9,983,974 Total capital assets, not being depreciated 17,109,079 4,521,687 (3,961,274) 17,669,492 Capital assets, being depreciated: Buildings and improvements 17,925,224 20,659 (213,655) 17,732,228 Improvements other than buildings 10,476,050 103,504 (2,870,304) 7,709,250 Infrastructure 23,482,106 854,597 2,515,722 26,852,425 Machinery and equipment 12,236,506 1,629,195 (559,591 ) 13,306,110 Total capital assets being depreciated 64,119,886 2,607,955 (1,127,828) 65,600,013 Less accumulated depreciation for: Buildings 9,218,635 736,872 9,955,507 Improvements other than buildings 4,523,420 300,019 (50,586) 4,772,853 Machinery and equipment 7,467,315 1,006,482 (404,972) 8,068,825 I nfrastructu re 13,506,157 1,090,389 14,596,546 Total accumulated depreciation 34,715,527 3,133,762 (455,558) 37,393,731 Total capital assets, being depreciated, net 29,404,359 (525,807) (672,270) 28,206,282 Governmental activities capital assets, net $ 46,513,438 $ 3,995,880 $ (4,633,544) $ 45,875,774 58 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 4. Capital Assets - Continued Beginning Ending Balance Retirements & Balance 10/01/05 Additions Adjustments 09/30/06 Business-type activities: Capital assets, not being depreciated: Land $ 2,350,478 $ $ $ 2,350,478 Construction in progress 1 ,184,241 2,371,663 (916,944) 2,638,960 Total capital assets, not being depreciated 3,534,719 2,371,663 (916,944) 4,989,438 Capital assets, being depreciated Buildings and improvements 1,166,840 1,166,840 Improvements other than buildings 63,511,103 580,707 5,096,516 69,188,326 Machinery and equipment 446,674 6,330 (30,790) 422,214 Total capital assets, being depreciated 65,124,617 587,037 5,065,726 70,777,380 Less accumulated depreciation for: Buildings and improvements 707,111 48,951 756,062 Improvements other than buildings 33,972,634 2,088,349 36,060,983 Machinery and equipment 345,699 21,317 (12,407) 354,609 Total accumulated depreciation 35,025,444 2,158,617 (12,407) 37,171,654 Total capital assets, being depreciated net 30,099,173 (1,571,580) 5,078,133 33,605,727 Business-type activities capital assets, net $ 33,633,892 $ 800,083 $ 4,161,189 $ 38,595,165 59 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 4. Capital Assets - Continued Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government Public safety Public works Culture and Recreation Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets Total depreciation expense - governmental activities Business-type activities: Water & Sewer Services Airport Golf Course Sylvan Beach Pavillion Total depreciation expense - business-type activities $ 308,746 298,158 1,167,845 491,459 867,555 $ 3,133,763 $ 1,888,909 108,772 146,064 14,871 $ 2,158,616 The City has active construction projects as of September 30,2006. Total accumulated commitments for ongoing capital projects are composed of the following: Utility Capital Projects Fund Sylvan Beach Fund Airport Fund HotellMotel Occupancy Tax Fund Section 4B Sales Tax TIRZ Fund General CI P S 1998 General Obligation Bonds S2000 General Obligation Bonds S2002 General Obligation Bonds S2004 Cert. of Obligation Bonds S2005 Cert. of Obligation Bonds S2005 General Obligation Bonds S2006 Cert. of Obligation Bonds S2006 General Obligation Bonds Total Construction In Progress $ 3,902,167 34,905 85,000 301,699 1,207,072 21,057 1,054,050 558,210 996,240 1,533,044 6,418,991 895,224 3,545,429 $ 20,553,088 60 Remaining Contract Balance $ 19,545 19,545 645,255 21,716 7,120,597 $ 7,826,658 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 5. Long Term Liabilities At September 30, 2006 bonds payable consisted of the following individual issues: Governmental Business-type 1998 General Obligation Serial Bonds; due in annual installments of $125,000 through March 15, 2019; interest at 4.25% to 6.25% $ 1,625,000 1998 Waterworks and Sewer System Revenue Bonds due in annual installments of $125,000 through March 15,2009; interest at 4.35% to 6.2% 375,000 1999 La Porte Area Water Authority Contract Revenue Refunding Bonds due in annual payments through March 15, 2017; interest at 7% to 7.5% 6,055,000 2000 General Obligation Serial Bonds due in annual installments of $150,000 through March 15, 2010, changing to $175,000 through March 15, 2020; interest at 5% to 7% 2,350,000 2000 Certificates of Obligation due in annual installments of $150,000 through March 15, 2020; interest at 5% to 7% 2,100,000 2002 Limited Tax Bonds due in annual installments of $270,000 through March 15, 2025; interest at 4.25% to 5% 5,130,000 2004 Certificates of Obligation 6,800,000 due in annual payments through March 15, 2025; interest at 3.6% to 4.45% 2005 General Obligation Serial Bonds 7,435,000 due in annual payments through March 15, 2025; interest at 3.75% to 4.25% 2005 Certificates of Obligation 1,740,000 due in annual payments through March 15, 2015; interest at 2.8% to 3.8% 2006 Public Property Finance Contractual Obligation 2,625,000 due in annual payments through January 25,2016; interest at 3.74% 2006General Obligation Serial Bonds 1,200,000 due in annual payments through March 15, 2005; interest at 3.625% to 4.25% 2006 Certificate of Obligation 5,765,000 due in annual payments through March 15,2025; interest at 3.75% to 4.3% $ 9,055,000 Total Bonds Payable $ 34,145,000 61 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2006 5. Long Term Liabilities - Continued Changes in Outstanding Debt- Transactions for the year ended September 30, 2006 are summarized as follows: Balance Issues Balance October 1 , or Payments or September 30, Due within 2005 Additions Expenditures 2006 one year Governmental Type Activities General Obligation Bonds $ 17,325,000 $ 1,200,000 $ 785,000 $ 17,740,000 $ 810,000 Certificates of Obligation 11,050,000 5,765,000 410,000 16,405,000 425,000 Compensated Absences 2,309,372 108,644 147,231 2,270,785 149,000 Total govemmental fund types 30,684,372 7,073,644 1,342,231 36,415,785 1,384,000 Business Type Activities Revenue Bonds Payable 7,145,000 715,000 6,430,000 585,000 Public Property Finance Contractual Obligation 2,625,000 2,625,000 262,500 Compensated absences 293,467 47,954 18,465 322,956 30,000 Total business fund types 7,438,467 2,672,954 733,465 9,377,956 877,500 Total of all fund types $ 38,122,839 $ 9,746,598 $ 2,075,696 $ 45,793,741 $ 2,261,500 General Obligation Bonds and Certificates of Obligation - General Obligation Bonds are direct obligations issued on a pledge of the general taxing power for the payment of the debt obligations of the City. General Obligations Bonds and Certificates of Obligation require the City to compute, at the time other taxes are levied, the rate of tax required to provide (in each years bonds are outstanding) a fund to pay interest and principal at maturity. The City is in compliance with this requirement. Arbitrage provisions of the Internal Revenue Tax Act of 1986 require the City to rebate excess arbitrage earnings from bond proceeds to the federal government. As provided for by the bond indentures, this amount has been recorded as a liability in the General Fund for the benefit of the federal government and will be paid as required by applicable regulations. Certain General Obligation Bonds and Certificate of Obligations Bonds are to be repaid by revenues of the proprietary funds. Also, for the governmental activities, compensated absences are generally liquidated by the general fund and for business type, compensated absences are paid from the utility fund. 62 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 5. Long Term Liabilities - Continued Revenue Bonds - Water and Sewer Revenue Bonds constitute special obligations of the City solely secured by a lien on and pledge of the net revenues of the water and sewer system. The Revenue Bonds are collateralized by the revenue of the water and sewer system and the various special funds established by the bond ordinances. The ordinances provide that the revenue of the system is to be used first to pay operating and maintenance expenses of the system and second to establish and maintain the Revenue Bond funds. Remaining revenues may then be used for any lawful purpose. The ordinances also contain provisions, which, among other items, restrict the issuance of additional Revenue Bonds unless the special funds noted above contain the required amounts and certain financial ratios are met. The City is in compliance with all significant financial requirements as of September 30,2006. Below is a reconciliation of the various restricted cash and cash investments: Current Maturities of Revenue Bonds Customer Deposits Payable Total Restricted Cash and Cash Investments as of September 30,2006 $ 950,010 505,287 $ 1,455,297 63 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 5. Long Term Liabilities - Continued Annual Requirements to Retire Debt Obligations - The annual aggregate maturities for each bond type for the years subsequent to September 30, 2006, are as follows: General Obligation Bonds Governmental Activities Year Ending September 30 2007 2008 2009 2010 2011 2012-2016 2017-2021 2022-2026 Total Principal $ 810,000 865,000 875,000 895,000 930,000 4,890,000 4,960,000 3,515,000 Interest $ 782,4 79 724,726 684,138 644,779 605,335 2,398,341 1,289,372 315,505 Business-type Activities Interest $ $ 17,740,000 $ 7,444,676 $ $ Certificate of Obligations Governmental Activities Year Ending September 30 2007 2008 2009 2010 2011 2012-2016 2017 -2021 2022-2026 Total Revenue Bonds Year Ending September 30 2007 2008 2009 2010 2011 2012-2016 2017-2021 Total Principal $ 425,000 650,000 670,000 700,000 725,000 4,080,000 4,875,000 4,280,000 Interest $ 780,813 671,014 642,120 613,310 584,340 2,437,383 1,451,051 379,209 Business-type Activities Principal $ 262,500 262,500 262,500 262,500 262,500 1,312,500 Interest $ 93,266 83,449 73,631 63,814 53,996 122,719 $ 16,405,000 $ 7,559,240 $ 2,625,000 $ 490,875 Governmental Activities Principal $ $ $ Business-type Activities Principal Interest Total $ 585,000 $ 314,263 $ 899,263 610,000 281,688 891,688 630,000 247,788 877,788 525,000 215,456 740,456 550,000 185,513 735,513 3,210,000 474,706 3,684,706 320,000 7,600 327,600 $ 6,430,000 $1,727,014 $ 8,157,014 64 Total $ 1,592,479 1,589,726 1,559,138 1,539,779 1,535,335 7,288,341 6,249,372 3,830,505 $ 25,184,676 Total $ 1,561,579 1,666,963 1,648,251 1,639,624 1,625,836 7,952,601 6,326,051 4,659,209 $ 27,080,115 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2006 5. Long Term Liabilities - Continued Bonds Authorized and Unissued - At September 30, 2006, the City had $4,100,000 in Certificate of Obligations Bonds which were authorized and unissued. Defeased Bonds Outstanding - In 1994, the City defeased certain general obligation and revenue bonds by placing the proceeds of the new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. On October 6, 1999, the La Porte Area Water Authority issued $8.08 million in Contract Revenue Refunding Bonds, Series 1999, with an average interest rate of 5.159 percent to refund $8.08 million in outstanding Water Supply Contract Revenue Bonds, Series I and II, 1998 with an average interest rate of 6.94 percent. The Authority completed the current refunding to reduce its total debt service payments over the next 18 years by $1.476 million and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $1.048 million. The bonds are payable from the net revenues of the Authority. The bonds are in $5,000 denominations. The Authority is in compliance with all significant requirements and restrictions contained in the bond resolution. As of September 30, 2006, $2,025,000 of the refunded bonds have been paid and $6,055,000 remain outstanding. 6. Pension Benefits Pian Descriptions The City provides pension benefits for all of its full-time employees through a non-traditional, joint contributory, hybrid defined benefit plan (the "Plan") in the statewide Texas Municipal Retirement System (TMRS), one of 811 administered by TMRS, an agent multiple-employer public employee retirement system. A copy of the 2005 TMRS Comprehensive Annual Financial Report may be obtained by writing to P.O. Box 149153, Austin, Texas 78714. In addition, the city provides pension benefits to its volunteer firemen through the Texas Statewide Emergency Services Personnel Retirement Fund, one of 150 administered by the Fire Fighters' Pension Commissioner, a cost sharing multiple employer pension system. That report may be obtained by writing to Firefighters Pension Commission, P.O. Box 12577, Austin, Texas 78711. Both Plans are more fully described below. Texas Municipal Retirement System Benefits depend upon the sum of the employee's contributions to the Plan, with interest, and the City financed monetary credits, with interest. At the date the Plan began, the city granted monetary credits for service rendered before the Plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to the establishment of the Plan. Monetary credits for service since the Plan began are a percentage (100%, 150% or 200%) of the employee's accumulated contributions. In addition, the City can grant annually another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the Plan began, would be the total monetary credits and employee's contributions accumulated with interest if the employee's contribution rate and City's matching percentage had always been in existence and if the employee's salary had always been the average of his salary in the last three years and that are one year before the effective date. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer-finance monetary credits with interest were used to purchase an annuity. 65 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 6. Pension Benefits - Continued Members can retire at ages 60 and above with 10 or more years of service or with 20 years of service regardless of age. The Plan also provides death and disability benefits. A member is vested after 10 years. The Plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing the TMRS and within the actuarial constraints also in the statutes. Contributions The contribution rate for employees is 7 percent and the City's matching ratio is currently 2 to 1, both as adopted by the governing body of the City. Under the state law governing TMRS, the actuary annually determines the City's contribution rate. This rate consists of the normal cost contribution rate and the prior service contribution rate, both of which are calculated to be a level percentage of payroll from year to year. The normal cost contribution rate financing the currently accruing monetary credits is due to the City's matching percentage, which is the obligation of the City as of an employee's retirement date, not at the time the employee's contributions are made. The normal cost contribution rate is the actuarially determined percentage of payroll necessary to satisfy the obligation of the City to each employee at the time his/her retirement becomes effective. The prior service contribution rate amortizes the unfounded (over funded) actuarial liability (asset) over the Plan's 25-year amortization period. When the City periodically adopts updated service credits and increases in annuities, in effect, the increased unfounded actuarial liability is to be amortized over a new 25-year period. Currently, the unfounded actuarial liability is being amortized over the 25-year period, which began January 1998. The unit credit actuarial cost method is used for determining the City's contribution rate. Both the employees and the City make contributions monthly. Since the City needs to know its contribution rate in advance for budgetary purposes, there is a one-year delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. A summary of actuarial assumptions is presented below: Actuarial Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Investment Rate of Return Projected Salary Increases Inflation Rate Cost of Living Adjustment Fiscal Year 2003 2004 2005 Annual Pension Cost (APC) $ 1,743,041 2,037,218 1,984,770 December 30,2005 Unit Credit Level Percent of Payroll 25 Years - Open Period Amortized Cost 7% None 3.5% None Percentage of APC Contribution 100% 100% 100% Net Pension Obligation Additional supplementary three-year trend information may be found on page 73. 66 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 6. Pension Benefits - Continued 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. Plan Description The Fire Fighters' Pension Commission is the administrator of the Texas Statewide Emergency Services Personnel Retirement Fund, a cost sharing multiple employer pension system established and administered by the State of Texas to provide pension benefits for emergency services personnel who serve without monetary remuneration. The Texas Statewide Emergency Services Personnel Retirement Fund is considered a component unit of the State of Texas financial reporting entity and is included in the State's financial reports as a pension trust fund. At August 31, 2006 there were 181 member departments participating in the pension system. The following table summarizes the pension system membership as of August 31, 2006: Retirees and beneficiaries currently receiving benefits Terminated members entitled to benefits but not yet receiving those Current active members (vested and non-vested) 1 ,766 1,815 4,480 The pension system was created by Senate Bill 411, 65th Legislature, Regular Session (1977). Benefit provisions include retirement benefits as well and death and disability benefits. Members are vested at the beginning of the fifth year of service, at 5 percent per year of service for the first ten years and 10 percent for each of the next five years of service. Upon reaching age 55, a vested member may retire and receive a monthly pension equal to his vested percentage multiplied by six times the governing body's average monthly contribution over the member's years of qualified service. For years of service in excess of 15 years, this monthly benefit is increased at the rate of 6.2 percent 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, 65th Legislative, Regular Session (1977) and no contributions are required by members. As of September 1, 2006, the governing bodies of participating department members are required to contribute at least $16 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. 67 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2006 6. Pension Benefits - Continued Contributions Required and Contributions Made As previously stated the required contribution of at least $16 per member per month is not actuarially determined. The 2005 Legislative Session gave the Board of Trustees of the Texas Emergency Services Retirement System (TESRS) the authority to establish vesting periods, contribution levels, benefit formulas and eligibility requirements under Title 8, Government Code, Subtitle H. The minimum monthly contribution rate per member is increasing from $12 to $36 in $4 annual increments beginning September 1, 2006 and becoming $36 September 1, 2011. For the fiscal year ending August 31, 2006, contributions totaling $2,077,728 for dues and prior service were paid into the fund by the governing bodies sponsoring the member participating departments. The contributions made were equal to the contributions required. City Percentage of Fiscal Annual Required Year Contributions Contributions 2004 13,392 100% 2005 13,104 100% 2006 10,360 100% The purpose for the biennial actuarial valuations is to test the adequacy of the monthly contributions and determine if they are adequate to fund the benefits that are promised. The total contributions expected from the governing bodies sponsoring the members for the fiscal year ending August 31, 2006 are $546,780 less than the minimum required contributions for that fiscal year, based on amortizing the unfunded actuarial accrued liability over 30 years. 7. interfund Transfers Interfund transfers during the year ended September 30,2006 were as follows: Transfer In: Capital Debt Special Internal General Project Service Revenue Enterprise Service Transfer out: Fund Funds Fund Funds Fund Funds Totals General Fund 1,368,365 $ 500,000 $ 1,177,438 $ 3,045,803 Capital Project Funds 2,800,000 636,925 3,436,925 Debt Service Fund Special Revenue Funds 249,814 740,060 60,000 1,049,874 Enterprise Funds 343,000 3,084,361 112,882 3,540,243 Internal Service Funds 181,000 22,197 203,197 Total $ 592,814 $ 4,168,365 $ 740,060 $ 500,000 $ 3,325,361 $ 1,949,442 $ 11,276,042 Transfers are used to 1) transfer to the Golf Fund from Vehicle Replacement Fund to purchase Golf Carts, 2) transfer to the Golf Fund from the Insurance Fund for repairs due to storm damage, 3) transfer from General Fund to Community Development Fund for future projects, 4) transfer from Special Revenue to General Fund to reimburse hurricane related expenses that were reimbursed by FEMA. 68 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 In the year September 30, 2006, the government made the following one-time transfers: A transfer of $500,000 from the General Fund to the Insurance Fund for additional funding for health insurance to offset potential increases to the employee's contributions. A transfer of $714,450 from the General Fund to the Capital Projects Fund for additional funding for general CIP projects. The Capital Projects Fund does not have an alternative source of revenue so additional amounts sent over since expenditures were higher than anticipated. A transfer of $500,000 from the General Fund to the Community Development Fund to fund future economic development. A transfer of $500,000 from the General Fund to the 2000 General Obligation Bond Fund to cover project overruns for Fire Station #3. A transfer of $153,915 from the General Fund to the 2002 General Obligation Bond Fund to cover project overruns for the EMS remodel project. 8. Risk Management The City is exposed to various risks related to torts: theft, damage to and destruction of assets; errors and omissions; and natural disasters. The City's risk management program encompasses various means of protecting the City against loss by obtaining property, casualty and liability coverage from participation in a risk pool. The participation of the City in the risk pool is limited to the payment of premiums. Further information regarding the pool is provided below. Settled claims have not exceeded insurance coverage in any of the previous three fiscal years. There has not been any significant reduction in insurance coverage from that of the previous year. Health Insurance Benefits The City self-insures a portion of health insurance benefits provided to employees. The City records revenues and expenses for providing employee health coverage in an Internal Service Fund and accrues the estimated incurred but not reported claims. Charges are assessed to various City divisions based on their full-time employee count. Activity during the year included: Revenues: Charges to divisions Charges to employees Charges to retirees Charges to COBRA participants Total revenues $ 2,539,214 446,593 80,443 3,066,250 Expenses: Personnel expenses Other expenses Claims administration Claims incurred Re-insurance premiums Total health services expenses 408,278 396,213 136,222 2,750,136 188,684 $ 3,879,533 Included in the claims paid amount is $406,650 for incurred but not reported claims. Settled claims have not exceeded insurance coverage in any of the previous four fiscal years. Estimates of claims payable and of claims incurred but not reported at September 30, 2006 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 2004, 2005 and 2006 are as follows: 69 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 Beginning Current Payment End of of Year Year for Year Accrual Estimates Claims Accrual Fiscal Year 2004 $163,452 $ 3,304,198 $ 3,241 ,263 $ 226,387 Fiscal Year 2005 226,387 2,992,671 2,914,671 304,387 Fiscal Year 2006 304,387 2,750,136 2,647,873 406,650 8. Risk Management - Continued Risk Pool The City is a member of the Texas Municipal League Intergovernmental Risk Pool, an unincorporated association of 1,860 political subdivisions of the State of Texas. The Pool contracts with a third party administrator for administration, investigation and adjustment services in the handling of claims. All loss contingencies, including claims incurred but not reported, if any, are recorded and accounted for by the Pool. 9. Commitments and Contingent Liabilities From time to time, the City is a defendant in legal proceedings relating to its operations as a municipality. In the best judgment of the City's management, the outcome of any pending legal proceedings will not have an adverse effect on the accompanying general purpose financial statements. The City participates in certain federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as the result of these audits is not believed to be material. 10. Post-Employment Benefits In addition to pension benefits described in Note 6, employees who retire from the City and are eligible for pension benefits shall be provided medical coverage by the City to the extent and subject to the conditions of such coverage that is provided to current employees of the City. This coverage for retired employees is provided at the option of City council through adoption of the annual budget. The City funds these premiums in the same manner as it funds similar premiums for current employees. Employees, who retired from the City before October 1, 1992, have 100% of their coverage paid for by the City. Employees who retired from the City in 1993 and up to December 31,1999, with 20 or more years of service have 100% of their coverage paid for by the City. Prior to January 1, 2000, employees who have 15 years but less than 20 years of service are required to pay for 10% of the cost and employees who have 10 years but less than 15 years of service are required to pay for 20% of their costs. For employees who retire after January 1, 2000 the following applies: Years of Service with City At least 10 but less than 15 years At least 15 but less than 20 years At least 20 years Retiree Cost 55% 25% 0% City Cost 45% 75% 100% Retiree Cost Per Year $3,300 1,500 o 70 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30,2006 10. Post-Employment Benefits - Continued Employees who retire after January 1, 2006 and who have a combination of years of service with the City of La Porte plus age totaling 80 and who retire as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 20 years of service with the City of La Porte are currently employed by the City of La Porte at the time of their retirement. The total premium cost is the total annual dollar allocated by budget as approved by City Council for the City of La Porte for health insurance for each employee, including employee and employer contributions. The cost allocation shall be as follows: Years of Service with City at least 20 years 21 years 22 years 23 years 24 years 25 years 26 years 27 years 28 years 29 years 30 years Retiree Cost 60% + dependent premiums 55% + dependent premiums 50% + dependent premiums 45% + dependent premiums 40% + dependent premiums 35% + dependent premiums 30% + dependent premiums 25% + dependent premiums 20% + dependent premiums 15% + dependent premiums 10% + dependent premiums City Cost 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% The costs of providing these benefits and number of retired employees are as follows: Total Cost City's Cost $252,350 $175,377 Dependent CoveraCle Cost Number of Retired Emplovees $76,973 57 Retirees who are entitled to receive retirement benefits under the City's retirement plan may purchase continued health benefits for the retiree and the retiree's dependents. The person must inform the City no later than the day on which the person retires that the person elects to continue coverage. If the retiree elects to continue coverage for himself and/or his dependents, once he decides to drop either type of coverage, the person and/or his dependents become eligible for coverage at the next open enrollment period. The level of coverage provided is the same level of coverage provided to current employees. The City's coverage is secondary to Medicare when the person becomes eligible for those benefits. Payment for dependent coverage will be at the same rate as payments for current employees. 71 72 REQUIRED SUPPLEMENTARY INFORMATION 73 74 Required Supplementary Information Texas Municipal Retirement System Schedule of Funding Progress For the Last Three Fiscal Years Actuarial Accrued UAAL as a Actuarial Liability Unfunded Percentage Actuarial Value of (AAL) - AAL Funded Covered of Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) ( a1b ) (c) [(b-a)/c] 2003 $ 42,858,965 $ 52,192,452 $ 9,333,487 82.1% $ 14,457,226 64.6% 2004 45,084,816 54,614,342 9,529,526 82.6 14,692,768 64.9 2005 43,001,769 53,388,381 10,386,612 80.5 15,137,017 68.6 75 Required Supplementary Information CITY OF LA PORTE, TEXAS General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Positive Original Final Actual Amounts (Negative ) REVENUES Property taxes $ 10,395,130 $ 10,395,130 $ 10,454,157 $ 59,027 Franchise taxes 1,837,680 1,904,237 1,986,698 82,461 Sales taxes 2,389,099 2,389,099 2,495,547 106,448 Industrial payments 7,448,417 7,448,417 7,470,700 22,283 Other taxes 55,883 55,883 69,310 13,427 Licenses and permits 368,730 603,917 683,284 79,367 Fines and forfeits 676,446 803,323 848,232 44,909 Charges for services 3,606,414 3,752,821 3,852,570 99,749 Intergovernmental 22,500 22,500 8,489 (14,011) Interest 329,370 534,526 652,700 118,174 Miscellaneous 30,000 44,960 24,778 (20,182) Total revenues 27,159,669 27,954,813 28,546,465 591,652 EXPENDITURES General Government: Administration 2,348,030 2,367,687 2,359,502 8,185 Finance 2,521,974 2,492,363 2,262,531 229,832 Planning & Engineering 1,527,418 1,572,418 1,425,389 147,029 Public Safety: Fire 3,538,587 3,593,163 3,433,273 159,890 Police 7,864,805 7,915,513 7,638,556 276,957 Public Works: Public Works Administration 320,488 333,488 303,538 29,950 Streets 2,239,503 2,248,773 2,056,535 192,238 Health and Sanitation: Solidwaste 1,805,705 1,819,705 1,813,812 5,893 Culture and Recreation 3,143,129 3,176,605 3,010,725 165,880 Total expenditures 25,309,639 25,519,715 24,303,861 1,215,854 Excess (deficiency) of revenues over expenditures 1,850,030 2,435,098 4,242,604 1,807,506 OTHER FINANCING SOURCES (USES) Proceeds from Sale of Assets 90,083 90,083 Transfers in 397,635 397,635 647,449 249,814 Transfers out (677,438) (3,045,803) (3,045,803) Total other financing sources (uses) (279,803) (2,648,168) (2,308,271 ) 339,897 Net change in fund balances 1,570,227 (213,070) 1,934,333 2,147,403 Fund balances-beginning 9,181,327 9,181,327 9,181,327 Fund balances-ending $10,751,554 $ 8,968,257 $ 11,115,660 $ 2,147,403 76 Required Supplementary Information CiTY OF LA PORTE, TEXAS Section 4B Sales Tax Special Revenue Fund Schedule of Revenues, Expenditu.res and Changes in Fund Balances Budget and Actual For The Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Sales taxes $ 1,117,500 $ 1,117,500 $ 1,245,774 $ 128,274 Interest 65,390 65,390 121,396 56,006 Total revenues 1,182,890 1,182,890 1,367,170 184,280 EXPENDiTURES Current: Capital Outlay Total expenditures Excess (deficiency) of revenues over expenditures 1,182,890 1,182,890 1,367,170 184,280 OTHER FINANCING SOURCES (USES) Transfers in Transfers out (740,060) (740,060) (740,060) Total other financing sources (uses) (740,060) (740,060) (740,060) Net change in fund balances 442,830 442,830 627,110 184,280 Fund balances-beginning 3,912,305 3,912,305 3,912,305 Fund balances-ending $ 4,355,135 $ 4,355,135 $ 4,539,415 $ 184,280 77 Required Supplementary Information CITY OF LA PORTE, TEXAS 2005 General Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ $ $ 303,628 $ 303,628 EXPENDITURES Current: Capital Outlay 10,500,000 10,500,000 3,707,975 6,792,025 Debt Service: Interest and fiscal charges Total expenditures 10,500,000 10,500,000 3,707,975 (6,792,025) Excess (deficiency) of revenues over expenditures (10,500,000) (10,500,000) (3,404,347) (6,488,397) OTHER FINANCING SOURCES (USES) Proceeds from Sale of Bonds 7,700,000 7,700,000 7,700,000 Transfers in 2,800,000 2,800,000 2,800,000 Total other financing sources (uses) 10,500,000 10,500,000 2,800,000 7,700,000 Net change in fund balances (604,347) (604,347) Fund balances-beginning 7,649,548 7,649,548 7,649,548 Fund balances--ending $ 7,649,548 $ 7,649,548 $ 7,045,201 $ (604,347) 78 CITY OF LA PORTE, TEXAS Notes to the Required Supplementary Information September 30,2006 BudQetarv Basis of Accountinq An annual budget is adopted for the General Fund using the modified accrual basis of accounting, a basis sanctioned by, and consistent with, generally accepted accounting principles. 79 80 COMBINING FINANCIAL STATEMENTS NON MAJOR GOVERNMENTAL FUNDS Debt Service Fund Debt service Fund is used to pay interest and extinguish debt of the outstanding General Obligation Issues of the City. Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Grant Fund - This fund is used to account for funds received from another government or organization to be used for a specific purpose, activity or facility. Community Investment Fund - This fund is used to account for funds received and expended on community beautification and revitalization programs. Hotel/ Motel Occupancy Tax Fund - This fund is used to account for the accumulation of resources from the Hotel/Motel Tax assessment levied by the City. These monies are to be spent to promote the development or progress of the City within the guidelines set forth on disposition of revenues collected under the authority of the Texas Hotel Occupancy Act (Article 1269; Vernon's Texas Civil Statutes). Tax Increment Reinvestment Zone One Fund (TIRZ) - This fund is used to account for the disposition of property taxes collected on specific parcels within the boundaries of the TIRZ for the exclusive benefit of the City's capital improvement programs. Capital Projects Fundls Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. Capital Improvements Fund - This fund is used to account for capital projects that are normally small in nature and effect the general operation of the City. Transportation and Other Infrastructure Fund - This fund is used to account for the construction and expansion of roads, bridges, sidewalks and other major infrastructure capital improvements. 1998 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related to drainage and street improvements throughout the City. 2000 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for construction of the community library. 2000 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for construction to renovate the city hall building, public swimming pool and two fire stations. 2002 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for the construction of a wastewater treatment plant. 81 2004 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related to Bay Area Boulevard, Canada Road Paving and Drainage Improvements and the land acquisition of the Police Headquarters. 2005 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related to the purchase of an aerial fire truck, Bayshore Water/Sewer Replacement and various other Water/Sewer Capital Improvements. 2006 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related to the Police Facility, a Sports Complex (Joint Venture), South La Porte Trunk Sewer and various other Water/Sewer projects. 2006 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related to the Westside Park Improvements. 82 83 CITY OF LA PORTE, TEXAS Combining Balance Sheet Nonmajor Governmental Funds September 30, 2006 Special Revenue Funds Capital Projects HotellMotel Tax Increment Transportation 1998 General Community Occupancy Reinvestment Capital & Other Obligation Grant Investment Tax Zone One (T1RZ) Totals Projects Infrastructure Bonds ASSETS Cash and cash equivalents $ 285,791 $ 386,773 $ 361 ,799 $ 103,969 $1,138,332 $ 874,664 $ 650,451 $ 657,467 Investments 180,344 272,398 254,809 73,224 780,775 616,011 458,103 463,043 Due from others Accounts receivable Taxes receivable Grant receivable 4,716 Other receivables 41,981 41,981 Accrued interest receivable 2,643 3,864 3,610 1,046 11,163 8,745 6,505 6,546 T DIal assets 510,759 663,035 620,218 178,239 1,972,251 1,504,136 1,115,059 1,127,056 L1ABIUTlES AND FUND BALANCES Liabilfties: Accounts payable 4,811 771 213,807 971 220,360 332,694 (20) Accrued salaries payable 2,319 2,319 Retainage payable 168 Due to others Unearned Revenue 49,670 49,670 Totalliabilfties 54,481 771 216,126 971 272,349 332,862 (20) Fund Balances: Reserved for. Capftal projects Municipal Court Building Security 106,652 106,652 Municipal Court Technology Fee 73,724 73,724 P ark Zone 153,006 153,006 Confiscated funds 119,137 119,137 Debt Service Unreserved 3,756 662,264 404,094 177,267 1,247,381 1,171,273 1,115,060 1,127,076 Other purposes Total fund balances 456,275 662,264 404,094 177,267 1,699,900 1,171,273 1,115,060 1,127,076 Totalliabilfties and fund balances $ 510,756 $ 663,035 $ 620,220 $ 178,238 $1,972,249 $1,504,135 $ 1,115,060 $ 1,127,056 84 Funds 2000 Certificate 2000 General 2002 General 2004 Certificate 2005 Certificate 2006 Certificate 2006 General Total Nonmajor of Obligation Obligation Obligation of Obligation of Obligation of Obligation Obligation Debt Govemmental Bonds Bonds Bonds Bonds Bonds Bonds Bonds Totals Service Funds 15,620 737,132 $ 895,487 313,348 (600,886) 17,493 $ 26,753 $ 3,587,529 $ 1,068,720 5,794,581 11,000 460,889 179,118 797,161 1,542,434 3,082,581 1,175,600 8,785,940 752,683 10,319,398 108,386 108,386 4,716 4,716 2,157 2,152 4,309 46,290 157 6,543 2,550 3,151 103 158 34,458 10,438 56,059 26,777 1,204,564 1,077,155 1,115,817 943,700 3,100,177 1,202,511 12,416,952 1,940,227 16,329,430 25,720 232,613 21,669 2,762 8,456 20,180 4,033 648,107 12,728 881,195 2,319 168 168 113,612 163,282 25,720 232,613 21,669 2,762 8,456 20,180 4,033 648,275 126,340 1,046,964 106,652 73,724 153,006 119,137 1,813,887 1,813,887 1,057 971,949 1,055,485 1,113,054 935,244 2,902,672 1,184,748 11,577,618 12,824,999 1,057 971,949 1,055,485 1,113,054 935,244 2,902,672 1,184,748 11,577,618 1,813,887 15,091,405 $ 26,m $ 1,204,562 1,077,154 $ 1,115,816 943,700 2,922,852 1,188,781 $12,225,893 $ 1,940,227 $ 16,138,369 85 CITY OF LA PORTE, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For The Year Ended September 30,2006 Special Revenue Funds HotellMotel Tax Increment Transportation 1998 General Community Occupancy Reinvestment Capital & Other Obligation Grant Investment Tax Zone One (TIRZ) Totals Projects Infrastructure Bonds REVENUES Property taxes $ $ $ $ 45,549 $ 45,549 $ $ $ Donations Intergovemmental 977,001 188,891 1,165,892 Sales taxes other taxes 257,151 257,151 Interest 2,953 12,548 30,246 4,408 50,155 44,072 43,779 49,930 Charges for services 35,000 Miscellaneous 121,107.00 17,495 138,602 Total revenues 1,101,061 201,439 304,892 49,957 1,657,349 79,072 43,779 49,930 EXPENDITURES Current Adm inistration 769,873 120,713 275,458 23,299 1,189,343 Capital Outlay 344,216 344,216 308,440 102,454 Debt Service: Principal Interest Interest and fiscal charges Total expend~ures 769,873 120,713 619,674 23,299 1,533,559 308,440 102,454 Excess (deficiency) of revenues over expend~ures 331,188 80,726 (314,782) 26,658 123,790 (229,368) 43,779 (52,524) OTHER RNANCING SOURCES (USES) Proceeds from sale of long-term debt Transfers in 500,000 500,000 714,450 Transfers out (249,814) (60,000) (309,814) Total other financing sources (uses) (249,814) 500,000 (60,000) 190,186 714,450 Net change in fund balances 81,374 580,726 (374,782) 26,658 313,976 485,082 43,779 (52,524) Fund balances-beginning 253,793 81,538 778,876 150,609 1,264,816 686,191 1,071,281 1,179,600 Fund balances-ending $ 456,275 $ 662,264 $ 404,094 $ 177,267 $ 1,578,792 $ 1,171,273 $ 1,115,060 $ 1,127,076 86 Capital Projects Funds 2000 Certificate 2000 General 2002 General. 2004 General 2005 Certificate 2006 Certificate 2006 General Total Nonmajor of Obligation Obligation Obligation Obligation of Obligation of Obligation Obligation Debt Govemmental Bonds Bonds Bonds Bonds Bonds Bonds Bonds Totals Service Funds $ $ $ $ $ 1,662,935 $ 1,708,484 1,165,892 43 257,194 906 47,390 99,725 27,815 69,716 92,666 18,704 494,703 86,581 631,439 35,000 35,000 138,602 906 47,390 99,725 27,815 69,716 92,666 18,704 529,703 1,749,559 3,936,611 1,189,343 786,671 562,655 479,599 258,299 2,498,118 2,842,334 1,195,000 1,195,000 1,185,364 1,185,364 154,994 33,956 188,950 188,950 786,671 562,655 479,599 258,299 154,994 33,956 2,687,068 2,380,364 6,600,991 906 (739,281) (462,930) (451,784) (188,583) (62,328) (15,252) (2,101,365) (630,805) (2,664,380) 5,765,000 1,200,000 6,965,000 6,965,000 500,000 153,915 1,368,365 740,060 2,608,425 (636,925) (2,800,000) (3,436,925) (3,746,739) 500,000 153,915 (636,925) 2,965,000 1,200,000 4,896,440 740,060 5,826,686 906 (239,281 ) (309,015) (451,784) (825,508) 2,902,672 1,184,748 2,739,075 109,255 3,162,306 151 1,211,230 1,364,500 1,564,838 1,760,752 8,838,543 1,704,632 11,807,991 1,057 $ 971,949 1,055,485 $ 1,113,054 $ 935,244 $ 2,902,672 $ 1,184,748 $ 11,577,618 $ 1,813,887 $ 14,970,297 87 88 SCHEDULE OF REVENUES, EXPENDITURES and CHANGES IN FUND BALANCE - BUDGET and ACTUAL Debt Service Fund Special Revenue Funds Capital Projects Funds 89 CITY OF LA PORTE, TEXAS Grant Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For The Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Positive Original Final Actual Amounts (Negative ) REVENUES Intergovernmental $ 2,793,931 $ 2,950,524 $ 977,001 $ (1,973,523) Interest 2,953 2,953 Miscellaneous 121,107 121,107 Total revenues 2,793,931 2,950,524 1,101,061 (1,849,463) EXPENDITURES Current: Admin istration 2,793,931 3,039,385 769,873 2,269,512 Total expenditures 2,793,931 3,039,385 769,873 2,269,512 Excess (deficiency) of revenues over expenditures (88,861 ) 331,188 420,049 OTHER FINANCING SOURCES (USES) Transfers in Transfers out (249,814) (249,814) Total other financing sources (uses) (249,814) (249,814) Net change in fund balances (338,675) 81,374 420,049 Fund balances-beginning 253,793 253,793 253,793 Fund balances-ending $ 253,793 $ (84,882) $ 456,275 $ 420,049 90 CITY OF LA PORTE, TEXAS Community Investment Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual For The Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Positive Original Final Actual Amounts (Negative) REVENUES Industrial payments $132,687 $ 132,687 $ 188,891 $ 56,204 Interest 2,690 2,690 12,548 9,858 Total revenues 135,377 135,377 201,439 66,062 EXPENDITURES Current: Administration 190,000 190,000 120,713 69,287 Capital Outlay Total expenditures 190,000 190,000 120,713 69,287 Excess (deficiency) of revenues over expenditures (54,623) (54,623) 80,726 135,349 OTHER FINANCING SOURCES (USES) Transfers in 500,000 500,000 500,000 Total other financing sources (uses) 500,000 500,000 500,000 Net change in fund balances 445,377 445,377 580,726 135,349 Fund balances-beginning 81,538 81,538 81,538 Fund balances-ending $ 526,915 $ 526,915 $ 662,264 $ 135,349 91 CITY OF LA PORTE, TEXAS Hotel/Motel Occupancy Tax Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Other taxes $ 230,000 $ 230,000 $ 257,151 $ 27,151 Interest 20,590 20,590 30,246 9,656 Miscellaneous 15,995 15,995 17,495 1,500 Total reven ues 266,585 266,585 304,892 38,307 EXPENDITURES Current: Administration 274,280 294,288 275,458 18,830 Capital Outlay 133,842 344,216 (210,374) Total expenditures 274,280 428,130 619,674 (191,544) Excess (deficiency) of revenues over expenditures (7,695) (161,545) (314,782) (153,237) OTHER FINANCING SOURCES (USES) Transfers in Transfers out (60,000) (60,000) (60,000) Total other financing sources (uses) (60,000) (60,000) (60,000) Net change in fund balances (67,695) (221,545) (374,782) (153,237) Fund balances-beginning 778,876 778,876 778,876 Fund balance~nding $ 711,181 $ 557,331 $ 404,094 $ (153,237) 92 CITY OF LA PORTE, TEXAS Tax Increment Reinvestment Zone One Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative ) REVENUES Property taxes $ 40,750 $ 40,750 $ 45,549 $ 4,799 Interest 3,100 3,100 4,408 1,308 Total revenues 43,850 43,850 49,957 6,107 EXPENDITURES Current: Administration 36,000 36,000 23,299 12,701 Capital Outlay Total expenditures 36,000 36,000 23,299 12,701 Excess (deficiency) of revenues over expenditures 7,850 7,850 26,658 18,808 Net change in fund balances 7,850 7,850 26,658 18,808 Fund Balances-beginning 150,609 150,609 150,609 Fund Balances-ending $ 158,459 $ 158,459 $ 177,267 $ 18,808 93 CITY OF LA PORTE, TEXAS Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Charges for Services $ 35,000 $ 35,000 $ 35,000 $ Interest 28,000 28,000 44,072 16,072 Total revenues 63,000 63,000 79,072 16,072 EXPENDITURES Current: Capital Outlay 433,500 688,885 308,440 380,445 Total expenditures 433,500 688,885 308,440 380,445 Excess (deficiency) of revenues over expenditures (370,500) (625,885) (229,368) 396,517 OTHER FINANCiNG SOURCES (USES) Transfers in 714,450 714,450 714,450 714,450 Net change in fund balances 343,950 88,565 485,082 396,517 Fund balances-beginning 686,191 686,191 686,191 Fund balances---ending $ 1,030,141 $ 774,756 $ 1,171,273 $ 396,517 94 CITY OF LA PORTE, TEXAS Transportation and Other Infrastructure Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest 17,000 $ 17,000 $ 43,779 $ 26,779 EXPENDITURES Current: Administration 60,000 60,000 60,000 Total expenditures 60,000 60,000 60,000 Excess (deficiency) of revenues over expenditures (43,000) (43,000) 43,779 86,779 Net change in fund balances (43,000) (43,000) 43,779 86,779 Fund balances-beginning 1,071,281 1,071,281 1,071,281 Fund balances-ending $ 1,028,281 $ 1,028,281 $ 1,115,060 $ 86,779 95 CITY OF LA PORTE, TEXAS 1998 General Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 20,000 $ 20,000 $ 49,930 $ 29,930 EXPENDiTURES Current: Capital Outlay 1,207,639 1,207,639 102,454 1,105,185 Excess (deficiency) of revenues over expenditures (1,187,639) (1,187,639) (52,524) 1,135,115 Net change in fund balances (1,187,639) (1,187,639) (52,524) 1,135,115 Fund balances-beginning 1,179,600 1,179,600 1,179,600 Fund balances-ending $ (8,039) $ (8,039) $ 1,127,076 $ 1,135,115 96 CITY OF LA PORTE, TEXAS 2000 Certificate of Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ $ $ 906 $ 906 EXPENDITURES Current: Capital Outlay Excess (deficiency) of revenues over expenditures 906 906 Net change in fund balances 906 906 Fund balances-beginning 151 151 151 Fund balances-ending $ 151 $ 151 $ 1,057 $ 906 97 CITY OF LA PORTE, TEXAS 2000 General Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative ) REVENUES Interest $ 5,000 $ 5,000 $ 47,390 $ 42,390 EXPENDITURES Current: Capital Outlay 565,000 565,000 786,671 (221,671 ) Excess (deficiency) of revenues over expenditures (560,000) (560,000) (739,281 ) (179,281) OTHER FINANCING SOURCES (USES) Transfers in 500,000 500,000 500,000 Total other financing sources (uses) 500,000 500,000 500,000 Net change in fund balances (60,000) (60,000) (239,281 ) (179,281 ) Fund balances-beginning 1,211,230 1,211,230 1,211,230 Fund balances--ending $ 1,151,230 $ 1,151 ,230 $ 971,949 $ (179,281) 98 CITY OF LA PORTE, TEXAS 2002 General Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 20,000 $ 20,000 $ 99,725 $ 79,725 EXPENDITURES Current: Capital Outlay 831,877 831,877 562,655 269,222 Excess (deficiency) of revenues over expenditures (811,877) (811,877) (462,930) 348,947 OTHER FINANCING SOURCES (USES) Transfers in 153,915 153,915 Net change in fund balances (811,877) (657,962) (309,015) 348,947 Fund balances-beginning 1,364,500 1,364,500 1,364,500 Fund balances-ending $ 552,623 $ 706,538 $ 1,055,485 $ 348,947 99 CITY OF LA PORTE, TEXAS 2004 General Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 40,800 $ 40,800 $ 27,815 $ (12,985) Total revenues 40,800 40,800 27,815 (12,985) EXPENDITURES Current: Capital Outlay 10,000 10,000 479,599 (469,599) Excess (deficiency) of revenues over expenditures 30,800 30,800 (451,784) (482,584) Net change in fund balances 30,800 30,800 (451,784) (482,584) Fund balances-beginning 1,564,838 1,564,838 1 ,564,838 Fund balances-ending $ 1,595,638 $ 1,595,638 $ 1,113,054 $ (482,584) 100 CITY OF LA PORTE, TEXAS 2005 Certificates of Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ $ $ 69,716 $ 69,716 EXPENDITURES Current: Capital Outlay 1,800,000 1,800,000 258,299 1,541,701 Total expenditures 1,800,000 1,800,000 258,299 (1,541,701) Excess (deficiency) of revenues over expenditures (1,800,000) (1,800,000) (188,583) 1,611,417 OTHER FINANCING SOURCES (USES) Proceeds from Sale of Bonds 1,800,000 1,800,000 (1,800,000) Transfers out (636,925) (636,925) Total other financing sources (uses) 1,800,000 1,800,000 (636,925) (2,436,925) Net change in fund balances (825,508) (825,508) Fund balances-beginning 1,760,752 1,760,752 1,760,752 Fund balances-ending $ 1,760,752 $ 1,760,752 $ 935,244 $ (825,508) 101 CITY OF LA PORTE, TEXAS 2006 Certificates of Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ $ $ 92,666 $ 92,666 EXPENDITURES Current: Administration Capital Outlay 3,000,000 3,000,000 Debt Service: Interest and fiscal charges 154,994 154,994 Total expenditures 3,000,000 154,994 (2,845,006) Excess (deficiency) of revenues over expenditures (3,000,000) (62,328) 2,937,672 OTHER FINANCiNG SOURCES (USES) Proceeds from Sale of Bonds 5,800,000 5,800,000 5,765,000 (35,000) Transfers in Transfers out (2,800,000) (2,800,000) Total other financing sources (uses) 5,800,000 3,000,000 2,965,000 (35,000) Net change in fund balances 5,800,000 2,902,672 2,902,672 Fund balances-beginning Fund balances-€nding $ 5,800,000 $ $ 2,902,672 $ 2,902,672 102 CITY OF LA PORTE, TEXAS 2006 General Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ $ $ 18,704 $ 18,704 EXPENDITURES Current: Capital Outlay $ 1,200,000 $ 1,200,000 $ $ 1,200,000 Debt Service: Interest and fiscal charges 33,956 33,956 Total expenditures 1,200,000 1,200,000 33,956 (1,166,044) Excess (deficiency) of revenues over expenditures (1,200,000) (1,200,000) (15,252) (1,147,340) OTHER FINANCiNG SOURCES (USES) Proceeds from Sale of Bonds 1,200,000 1,200,000 1,200,000 (1,147,340) Total other financing sources (uses) 1,200,000 1,200,000 1,200,000 33,956 Net change in fund balances 1,184,748 1,184,748 Fund balances-beginning Fund balances-ending $ $ $1,184,748 $ 1,184,748 103 CITY OF LA PORTE, TEXAS Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Property taxes $ 1,574,489 $ 1,574,489 $ 1,662,935 $ 88,446 Industrial payments 43 43 Interest 25,000 25,000 86,581 61,581 Total revenues 1,599,489 1,599,489 1,749,559 150,070 EXPENDITURES Debt Service: Principal 895,000 895,000 1,195,000 (300,000) Interest 1,295,671 1,295,671 1,185,364 110,307 Total expenditures 2,190,671 2,190,671 2,380,364 (189,693) Excess (deficiency) of revenues over expenditures (591,182) (591,182) (630,805) (39,623) OTHER FINANCING SOURCES (USES) Transfers in 740,060 740,060 740,060 Net change in fund balances 148,878 148,878 109,255 (39,623) Fund balances-beginning 1,704,632 1,704,632 1,704,632 Fund balances-ending $ 1,853,510 $ 1,853,510 $ 1,813,887 $ (39,623) 104 SUPPLEMENTARY INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES General Fund These supplementary statements and schedules are included to provide management additional information for financial analysis. 105 CITY OF LA PORTE, TEXAS General Fund Schedule of Revenues - Budget and Actual Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative ) Taxes: Ad valorem: Current $10,121,783 $ 10,121,783 $ 10,139,822 $ 18,039 Delinquent 146,303 146,303 166,242 19,939 Industrial Payments 7,448,417 7,448,417 7,470,700 22,283 Total ad valorem 17,716,503 17,716,503 17,776,764 60,261 Penalty and interest 127,044 127,044 148,093 21,049 Sales Taxes 2,389,099 2,389,099 2,495,547 106,448 Other Taxes 55,883 55,883 69,310 13,427 Franchise Fees: Electrical 1,150,000 1, 174, 142 1,394,465 220,323 Gas 150,000 170,415 162,070 (8,345) Telephone 255,000 255,000 199,296 (55,704) Cable 212,000 234,000 162,250 (71,750) Commercial Solidwaste 70,680 70,680 68,617 (2,063) Total Franchise Fees 1,837,680 1,904,237 1,986,698 82,461 Charges for Services: Public safety service fees 978,619 1,203,761 1,321,205 117,444 Health and sanitation service fees 1,815,500 1,774,280 1,769,294 (4,986) Culture and recreation fees 522,415 435,962 427,312 (8,650) Other service fees 289,880 338,818 334,759 (4,059) Total Charges for Services 3,606,414 3,752,821 3,852,570 99,749 I ntergovemmental 22,500 22,500 8,489 (14,011 ) Licenses and permits: Building permits 98,880 166,928 189,358 22,430 Licenses 269,850 436,989 493,926 56,937 Total Licenses and permits 368,730 603,917 683,284 79,367 Investment income 329,370 534,526 652,700 118,174 Fines and forfeitures 676,446 803,323 848,232 44,909 Miscellaneous 30,000 44,960 24,778 (20,182) Total revenues $27,159,669 $ 27,954,813 $ 28,546,465 $ 591,652 106 CITY OF LA PORTE, TEXAS General Fund Schedule of Expenditures - Budget and Actual Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) GENERAL GOVERNMENT Administration: Emergency Management: Personal services $ 76,425 $ 94,925 $ 94,691 $ 234 Supplies 19,850 26,607 26,555 52 Other services and charges 34,580 30,480 30,403 77 Total Emergency Management 130,855 152,012 151,649 363 General Administration: Personal services 439,740 455,740 455,451 289 Supplies 7,560 6,560 6,061 499 Other services and charges 86,644 86,644 86,541 103 Total General Administration 533,944 548,944 548,053 891 Human Resources: Personal services 199,072 177,072 176,276 796 Supplies 8,000 12,000 11 ,260 740 Other services and charges 112,798 135,798 134,408 1,390 Total Human Resources 319,870 324,870 321,944 2,926 Municipal Court: Personal services 277,212 277,600 277,560 40 Supplies and materials 13,287 13,330 13,079 251 Other services and charges 180,131 200,200 200,173 27 Total Municipal Court 470,630 491,130 490,812 318 Purchasing: Personal services 204,214 199,573 197,510 2,063 Supplies 2,659 2,666 2,664 2 Other services and charges 31,466 36,100 36,013 87 Total Purchasing 238,339 238,339 236,187 2,152 Management Information Services: Supplies Other services and charges 100 23 77 Total Management Information Svcs 100 23 77 City Secretary: Personal services 261,082 239,165 238,792 373 Supplies and materials 4,650 16,300 16,195 105 Other services and charges 91,633 124,500 124,011 489 Total City Secretary 357,365 379,965 378,998 967 107 CITY OF LA PORTE, TEXAS General Fund Schedule of Expenditures - Budget and Actual Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative ) Legal: Personal services 6,000 6,000 6,000 Other services and charges 194,069 162,069 161,896 173 Total Legal 200,069 168,069 167,896 173 City Council: Personal services 24,636 23,436 23,294 142 Supplies and materials 16,300 8,800 8,647 153 Other services and charges 56,022 32,022 31,999 23 Total City Council 96,958 64,258 63,940 318 Total Administration 2,348,030 2,367,687 2,359,502 8,185 Finance: Accounting: Personal services 700,279 684,279 658,006 26,273 Supplies 30,050 30,050 20,802 9,248 Other services and charges 172,765 188,765 188,530 235 Total Accounting 903,094 903,094 867,338 35,756 Nondepartmental: Personal services 390,498 449,498 448,180 1,318 Supplies 6,500 9,500 9,308 192 Other services and charges 855,495 763,884 591,728 172,156 Total Nondepartmental 1,252,493 1,222,882 1,049,216 173,666 Tax Office: Personal services 185,921 185,921 173,492 12,429 Supplies and materials 11,600 11,600 7,629 3,971 Other services and charges 168,866 168,866 164,856 4,010 Total Tax Office 366,387 366,387 345,977 20,410 Total Finance 2,521,974 2,492,363 2,262,531 229,832 Planning and Engineering: Planning and Engineering: Personal services 683,723 703,723 701,002 2,721 Supplies 21,201 20,676 12,897 7,779 Other services and charges 127,615 132,140 114,446 17,694 Total Planning and Engineering 832,539 856,539 828,345 28,194 Inspection: Personal services 479,781 479,781 473,202 6,579 Supplies 22,728 22,728 15,813 6,915 Other services and charges 192,370 213,370 108,029 105,341 Total Inspection 694,879 715,879 597,044 118,835 Total Planning and Engineering 1,527,418 1,572,418 1,425,389 147,029 TOTAL GENERAL GOVERNMENT 6,397,422 6,432,468 6,047,422 385,046 108 CITY OF LA PORTE, TEXAS General Fund Schedule of Expenditures - Budget and Actual Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) PUBLIC SAFETY: Fire Fire Prevention: Personal services 143,152 143,152 118,188 24,964 Supplies 15,999 31 ,494 10,225 21,269 Other services and charges 31,695 31,631 28,828 2,803 Total Fire Prevention 190,846 206,277 157,241 49,036 Fire suppression: Personal services 1,132,362 1,175,712 1,163,958 11,754 Supplies 126,284 131,854 126,067 5,787 Other services and charges 398,131 396,356 394,193 2,163 Capital Outlay 8,000 Total Fire Suppression 1,664,777 1,703,922 1,684,218 19,704 Emergency medical services: Personal services 1 ,280,730 1,280,730 1,254,292 26,438 Supplies 109,099 109,099 112,363 (3,264) Other services and charges 293,135 293,135 225,159 67,976 Total Emergency Services 1,682,964 1,682,964 1,591,814 91,150 Total Fire 3,538,587 3,593,163 3,433,273 159,890 Police Police Administration: Personal services 475,043 496,887 496,122 765 Supplies 19,067 20,407 19,198 1,209 Other services and charges 169,244 152,400 152,376 24 Total Police Administration 663,354 669,694 667,696 1,998 Police Patrol: Personal services 4,159,122 4,159,122 4,012,800 146,322 Supplies 166,398 188,204 186,375 1,829 Other services and charges 509,553 484,553 411,955 72,598 Total Police Patrol 4,835,073 4,875,113 4,654,364 220,749 Criminal Investigation: Personal services 1,298,272 1,320,702 1,319,590 1,112 Supplies 47,705 50,300 50,205 95 Other services and charges 174,047 164,000 163,142 858 Total Criminal Investigation 1,520,024 1,535,002 1,532,937 2,065 109 CITY OF LA PORTE, TEXAS General Fund Schedule of Expenditures - Budget and Actual Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Support Services: Personal services 723,322 711,322 664,074 47,248 Supplies 46,435 47,435 47,243 192 Other services and charges 76,597 76,947 72,242 4,705 Total Support Services 846,354 835,704 783,559 52,145 Total Police 7,864,805 7,915,513 7,638,556 276,957 TOTAL PUBLIC SAFETY 11,403,392 11,508,676 11,071,829 436,847 PUBLIC WORKS: Public Works Administration: Personal services 240,281 238,281 215,081 23,200 Supplies and materials 2,860 3,670 3,666 4 Other services and charges 77,347 91,537 84,791 6,746 Total Public Works Administration 320,488 333,488 303,538 29,950 Streets: Personal services 1,416,640 1,416,640 1,279,485 137,155 Supplies 127,522 154,877 154,173 704 Other services and charges 642,341 639,256 600,506 38,750 Capital Outlay 53,000 38,000 22,371 15,629 Total Streets 2,239,503 2,248,773 2,056,535 192,238 TOTAL PUBLIC WORKS 2,559,991 2,582,261 2,360,073 222,188 HEALTH AND SANITATION: Residential Solidwaste: Personal services 927,582 852,582 848,906 3,676 Supplies 176,712 225,712 225,050 662 Other services and charges 680,411 720,401 718,849 1,552 Total Residential Solidwaste 1,784,705 1,798,695 1,792,805 5,890 Commercial solidwaste: Other services and charges 21,000 21,010 21,007 3 TOTAL HEALTH AND SANITATION 1 ,805,705 1,819,705 1,813,812 5,893 CULTURE & RECREATION: Park Maintenance: Personal services 934,594 815,594 749,260 66,334 Supplies and materials 79,457 99,713 98,699 1,014 Other services and charges 577,840 625,140 620,134 5,006 Capital outlay 25,000 44,600 19,972 24,628 Total Park Maintenance 1,616,891 1,585,047 1,488,065 96,982 110 CITY OF LA PORTE, TEXAS General Fund Schedule of Expenditures - Budget and Actual Year Ended September 30,2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Recreation: Personal services 514,840 574,840 570,114 4,726 Supplies 52,732 53,233 49,553 3,680 Other services and charges 79,666 79,666 76,732 2,934 Total Recreation 647,238 711,728 696,399 15,329 Special Services: Personal services 348,871 348,871 331,015 17,856 Supplies 21,911 22,346 21 ,742 604 Other services and charges 66,520 66,520 56,682 9,838 Total Special Services 437,302 437,737 409,439 28,298 Parks Administration: Personal Services 385,154 385,154 361,772 23,382 Supplies 9,862 10,357 10,257 100 Other Services and Charges 46,682 46,582 44,793 1,789 Total Parks Administration 441,698 442,093 416,822 25,271 TOTAL CULTURE AND RECREATION 3,143,129 3,176,605 3,010,725 165,880 TOTAL GENERAL FUND $ 25,309,639 $ 25,519,715 $ 24,3103,861 $ 1,215,854 111 112 COMBINING FINANCIAL STATEMENTS Nonmajor 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. Airport Fund - This fund is used to account for financial activities of the airport, which include rentals, grants and other revenues. Sylvan Beach Fund - This fund is used to account for revenues and expenses related to the operations of Sylvan Beach Convention Center. Golf Course Fund - This fund is used to account for revenues and expenses related to the operation of an eighteen-hole municipal golf course. 113 CITY OF LA PORTE, TEXAS Combining Statement of Net Assets Nonmajor Proprietary Funds For the year ended September 30, 2005 Business-type Activities - Enterprise Funds Total Sylvan Beach Nonmajor Convention Bay Forest Proprietary Airport Center Golf Course Funds ASSETS Current assets: Cash and cash equivalents $ 197,133 $ 104,512 $ $ 301,645 Investments 138,837 105,905 244,742 Receivables, net of allowance for uncollectibles 2,771 50,473 53,244 Accrued interest receivable 1,972 1,508 3,480 Restricted cash, cash equivalents and investments: Customer service deposits 45,861 45,861 Total current assets 340,713 257,786 50,4 73 648,972 Noncurrent assets: Capital assets: Land 203,504 1,880,965 2,084,469 Buildings and improvements 383,586 731,524 1,115,110 Improvements other than buildings 4,036,174 2,540,952 6,577,126 Vehicles and equipment 103,276 103,276 Construction in progress 85,000 34,905 119,905 Less accumulated depreciation (2,375,550) (307,307) (2,171,272) (4,854,129) Total noncurrent assets 1,949,128 111,184 3,085,445 5,145,757 Total assets 2,289,841 368,970 3,135,918 5,794,729 LIABILITIES Current liabilities: Accounts payable 633 10,434 143,165 154,232 Accrued salaries payable 2,186 13,202 15,388 Unearned Revenue 36,677 50,473 87,150 Other current liabilities 1,500 4,430 5,930 Payable from restricted assets: Customer deposits 68,129 68,129 Total current liabilities 2,133 117,426 211,270 330,829 Noncurrent liabilities: Accrued separation pay 6,002 146,024 152,026 Total noncurrent liabilities 6,002 146,024 152,026 Total liabilities 2,133 123,428 357,294 482,855 NET ASSETS Invested in capital assets, net of related debt 1,949,128 111,184 3,085,445 5,145,757 Unrestricted (deficit) 338,580 134,357 (306,824) 166,113 Total net assets $ 2,287,708 $ 245,541 $ 2,778,621 $ 5,311,870 114 CITY OF LA PORTE, TEXAS Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Nonmajor Proprietary Funds For The Year Ended September 30, 2006 Business-type Activities - Enterprise Funds Total Sylvan Beach Nonmajor Convention Bay Forest Proprietary Airport Center Golf Course Funds Operating revenues: User fees $ 35,624 $ 168,967 $ 956,043 $1,160,634 Operating expenses: Personal services 141,803 802,453 944,256 Supplies 14,336 121,366 135,702 Other services and charges 13,776 43,541 214,087 271,404 Depreciation 108,772 14,872 147,215 270,859 Total operating expenses 122,548 214,552 1,285,121 1,622,221 Operating income (loss) (86,924) (45,585) (329,078) (461,587) Nonoperating revenues (expenses): Interest income 13,019 9,662 2,697 25,378 Gain (loss) on sale of equipment (8,804) (8,804) Total nonoperating revenue (expenses) 13,019 9,662 (6,107) 16,574 Income (loss) before contributions and transfers (73,905) (35,923) (335,185) (445,013) Transfers in 25,000 216,000 241,000 Transfers out (843) (3,616) (28,773) (33,232) Change in net assets (74,748) (14,539) (147,958) (237,245) Total net assets-beginning 2,362,456 260,080 2,926,579 5.549,115 Total net assets-ending $ 2,287,708 $ 245,541 $ 2,778,621 $ 5,311,870 115 CITY OF LA PORTE, TEXAS Combining Statement of Cash Flows Nonmajor Proprietary Funds For The Year Ended September 30,2006 Business-type Activities - Enterprise Funds Total Sylvan Beach Nonmajor Convention Bay Forest Proprietary Airport Center Golf Course Funds CASH FLOWS FROM OPERATING ACTIViTIES Cash received from user fees $ 33,944 $ 194,739 $ 956,043 $ 1,184,726 Cash payments to suppliers (13,464) (52,652) (352,925) (419,041) Cash payments for personal services (140,763) (793,043) (933,806) Net cash provided by operating activities 20,480 1,324 (189,925) (168,121) CASH FLOWS FROM NON CAPITAL FINANCING ACTIVITIES Transfers from other funds 25,000 216,000 241,000 Transfers to other funds (843) (3,616) (28,773) (33,232) Net cash from non capital financing activies (843) 21,384 187,227 207,768 CASH FLOWS FROM CAPiTAlANP RELATED FINAN ClANG ACTIVITIES Payments for capital acquisitions Net cash (used) by capital and related financing activies CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 12,209 9,012 2,698 23,919 Net Investments (purchased) sold 32,772 20,807 53,579 Net cash provided by investing activities 44,981 29,819 2,698 77 ,498 Net increase (decrease) in cash and cash equivalents 64,618 52,527 117,145 Balances-beginning of the year 132,515 97,845 230,360 Balances-end of the year $ 197,133 $ 150,372 $ $ 347,505 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (86,924) $ (45,585) $ (329,078) $ (461,587) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense 108,772 14,872 147,215 270,859 (Increase) decrease in accounts receivable (1,680) 805 50,000 49,125 Increase (decrease) in accrued salaries payable (90) 209 119 Increase (decrease) in accounts payable 313 5,225 (4,515) 1,023 Increase (decrease) in other current liabilities 2,597 (62,958) (60,361) Increase (decrease) in customer utility deposits 22,370 22,370 Increase (decrease) in accrued employee separation 1,130 9,201 10,331 Total adjustments 107,405 46,909 139,152 293,466 Net cash provided by operating activities $ 20,481 $ 1,324 $ (189,926) $ (168,121) Reconciliation of total cash and cash investments: Current Assets - cash and cash equivalents $ 197,133 $ 104,512 $ $ 301,645 Restricted Assets - cash and cash equivalents 45,861 45,861 Total cash and cash equivalents $ 197,133 $ 150,373 $ 128,102 $ 475,608 116 COMBINING FINANCIAL STATEMENTS Internal Service Funds Internal Service Funds account for the financing of goods or services provided by one City department for another. Motor Pool Fund - This fund is used to account for the cost of operating and maintaining automotive and other equipment used by City departments and the purchase of general government vehicles (those not used by proprietary fund activities). Service charges are billed to departments on a monthly basis to cover all expenses of the fund. Technology Fund - This fund is used to account for the cost of operating and maintaining computer software and equipment used by City departments. Service charges are billed to departments on a monthly basis to cover all expenses of the fund. Insurance Fund - This fund is used to account for the provision of group health coverage for all City employees and others eligible under the City's plan, including employee dependents and retirees. 117 CITY OF LA PORTE, TEXAS Internal Service Funds Combining Statement of Net Assets For the year ended September 30, 2005 Motor Pool Technology Insurance Totals ASSETS Current assets: Cash and cash equivalents $ 1,396,747 $ 564,534 $ 1,117,385 $ 3,078,666 Investments 983,706 397,592 779,329 2,160,627 Accrued interest receivable 13,980 5,643 11,107 30,730 Miscellaneous Receivable 79,711 2,081 81,792 Material and supplies inventories, at cost 46,180 46,180 Total current assets 2,520,324 967,769 1,909,902 5,397,995 Noncurrent assets: Capital assets Vehicles and equipment 10,601,114 1,125,133 11,726,247 Less accumulated depreciation (6,305,377) (992,537) (7,297,914) Total noncurrent assets 4,295,737 132,596 4,428,333 Total assets 6,816,061 1,100,365 1,909,902 9,826,328 LIABILITIES Current liabilities: Accounts payable 29,692 21,212 509,321 560,225 Accrued salaries payable 11,323 4,580 15,903 Deferred revenue 2,106 2,106 Total current liabilities 41,015 25,792 511,427 578,234 Noncurrent liabilities: Accrued employee separation pay 121,365 121,365 Total noncurrent liabilities 121,365 121,365. Total liabilities 162,380 25,792 511,427 699,599 NET ASSETS Invested in capital assets, net of related debt 4,295,737 132,596 4,428,333 Unrestricted (deficit) 2,357,950 941,976 1,398,477 4,698,403 Total net assets $ 6,653,687 $ 1,074,572 $ 1,398,477 $ 9,126,736 118 CITY OF LA PORTE, TEXAS Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Assets For The Year Ended September 30,2006 Motor Pool Technology Insurance Totals Operating revenues: User Fees $ 1,799,270 $ 915,172 $ 3,100,782 $ 5,815,224 Cable Fees 53,000 53,000 Total operating revenues 1,799,270 968,172 3,100,782 5,868,224 Operating expenses: Personal services 684,567 268,463 408,256 1,361,286 Supplies 245,939 75,022 320,961 Other sevices and charges 149,485 529,692 3,421,070 4,100,247 Miscellaneous Depreciation 825,073 44,555 869,628 Total operating expenses 1,905,064 917,732 3,829,326 6,652,122 Operating income (loss) (105,794) 50,440 (728,544) (783,898) Nonoperating revenues (expenses): Interest income 84,518 35,444 45,709 165,671 Gain (loss) on sale of equipment (50,631) (50,631) Total nonoperating revenues (expenses) 33,887 35,444 45,709 115,040 Income(loss) before contributions and transfers (71,907) 85,884 (682,835) (668,858) Transfers in 636,925 1,312,517 1,949,442 Transfers out (151,508) (689) (51,000) (203,197) Change in net assets 413,510 85,195 578,682 1,077,387 Net assets-beginning 6,240,177 989,377 819,795 8,049,349 Net assets-ending $ 6,653,687 $ 1,074,572 $ 1,398,477 $ 9,126,736 119 CITY OF LA PORTE, TEXAS Internal Service Funds Combining Statement of Cash Flows For The Year Ended September 30, 2006 Motor Pool Technology Insurance Totals CASH FLOWS FROM OPERATING ACTMTIES Cash received from user fees $ 1,799,270 $ 968,172 $ 3,100,807 $ 5,868,249 Cash payments to suppliers (408,449) (628,982) (3,224,528) (4,261,959) Cash payments for personal services (669,227) (268,421 ) (408,256) (1,345,904) Net cash provided by operating activities 721,594 70,769 (531,977) 260,386 CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES Operating transfers in from other funds 636,925 (689) 1,312,517 1,948,753 Operating transfers out to other funds (151,508) (51,000) (202,508) Net cash from noncapital financing activies 485,417 (689) 1,261,517 1,746,245 CASH FLOWS FROM CAP IT AL AND RELATED FINANCING ACTIVITIES Payments for capital acquisitions (1,415,060) (17,649) (1,432,709) Proceeds from sale of assets 12,217 12,217 Proceeds from insurance Net cash (used) by capital and related financing activies (1,402,843) (17,649) (1,420,492) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 80,075 33,149 38,871 152,095 Investments purchased 424,841 97,020 (148,767) 373,094 Investments sold Net cash provided by investing activities 504,916 130,169 (109,896) 525,189 Net increase (decrease) in cash and cash equivalents 309,084 182,600 619,644 1,111,328 Balances-beginning of the year 1,087,663 381,934 497,743 1,967,340 Balances--end of the year $ 1,396,747 $ 564,534 $ 1,117,387 $ 3,078,668 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (105,794) $ 50,440 $ (728,544) $ (783,898) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense 825,073 44,555 869,628 (Increase) decrease in accounts receivable (705) (705) (Increase) decrease in accounts receivable 730 (Increase) decrease in inventories & prepaid expenses (1,649) (1,649) Increase (decrease) in accrued salaries payable (93) 42 (51) Increase (decrease) in accounts payable (11,376) (24,268) 196,542 160,898 Increase (decrease) in accrued employee separation 15,433 15,433 Total adjustments 827,388 20,329 196,567 1,043,554 Net cash provided by operating activities $ 721,594 $ 70,769 $ (531,977) $ 260,386 120 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS These schedules present the capital asset balances related to governmental funds. A capital asset is presented in this schedule when it has been purchased using general governmental resources and is used for general governmental purposes. Assets are recorded at historical cost if purchased, or if historical cost is not available, estimated historical cost, or fair market value on the date donated, if donated. 121 122 CITY OF LA PORTE, TEXAS Capital Assets Used in the Operation of Governmental Funds Schedule by Source For the year ended September 30, 2005 Governmental funds capital assets Land Buildings Equipment Improvements Infrastructure Construction in progress $ 7,685,517 17,732,228 1,579,864 7,662,126 26,873,816 9,983,973 Total governmental funds capital assets $ 71,517,524 Investment in governmental funds capital assets by source Current Operations Capital Projects Section 4B Sales Tax $ 15,554,927 54,818,170 1,144,427 Total governmental funds capital assets $ 71,517,524 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 123 CITY OF LA PORTE, TEXAS Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activity September 30, 2006 Function and Activity Land Buildings Equipment Improvements General Government Administration $ 858,364 $ 6,153,276 $ 309,678 $ 407,287 Finance Planning 217,002 19,922 Total general government 1,075,366 6,153,276 329,600 407,287 Public Safety Fire 563,413 3,784,847 606,471 28,422 Police 45,089 1,064,031 416,422 25,732 Total Public Safety 608,502 4,848,878 1,022,893 54,154 Public Works Ad minstration 2,760,405 2,112,774 106,089 138,145 Streets Total Public Works 2,760,405 2,112,774 106,089 138,145 Cultural and Recreational Parks and Recreation 3,241,244 4,617,299 121,281 7,088,272 Total governmental funds capital assets $ 7,685,517 $ 17,732,227 $ 1,579,863 $ 7,687,858 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 124 Construction Infrastructure in Progress Total $ $ 60,721 $ 7,789,326 190,488 704,318 1,131,730 190,488 765,039 8,921,056 2,336,982 7,320,135 3,247,154 4,798,428 5,584,136 12,118,563 10,069,895 3,452,929 18,640,237 16,515,354 16,515,354 26,585,249 3,452,929 35,155,591 98,079 181,870 15,348,045 $ 26,873,816 $ 9,983,974 $ 71,543,255 125 CITY OF LA PORTE, TEXAS Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity For The Year Ended September 30,2006 Governmental Governmental Fund Capital Fund Capital Assets Assets October 1 , Additions/ Retirements/ September 30, Function and Activity 2005 Adjustments Adjustments 2006 General government Administration $ 7,978,318 $ 56,310 $ (245,300) $ 7,789,328 Finance Planning 1,111,711 120,570 (100,551) 1,131,730 Total general government 9,090,029 176,880 (345,851) 8,921,058 Public safety Fire 6,098,964 1,282,467 (61,295) 7,320,136 Police 1,602,080 3,213,738 (17,389) 4,798,429 Total public safety 7,701,044 4,496,205 (78,684) 12,118,565 Public works Administration 21,266,390 867,620 (3,493,772) 18,640,238 Streets 16,515,353 16,515,353 Total public works 37,781,743 867,620 (3,493,772) 35,155,591 Cultural and Recreational Parks and recreation 15,223,531 156,233 (31,720) 15,348,044 Total governmental funds capital assets $ 69,796,347 $ 5,696,938 $ (3,950,027) $ 71,543,258 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 126 STATISTICAL SECTION This part of the City of La Porte's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Page Financial Trends 129 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changedover time Revenue Capacity 136 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 142 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 149 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 151 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual Financial reports for the relevant year. 127 128 \ City of La Porte, Texas Net Assets by Component Last Four Fiscal Years (accrual basis of accounting) (unaudited) Fiscal Year 2003 2004 2005 2006 Governmental activities Invested in capital assets, net of related debt $ 23,400,108 $ 32,752,971 $ 28,933,050 $ 28,424,346 Restricted 5,804,419 5,770,840 6,642,077 7,004,587 Unrestricted 23,953,457 12,997,982 19,369,700 19,269,532 Total governmental activities net assets $ 53,157,984 $ 51,521,793 $ 54,944,827 $ 54,698,465 Business-type activities Invested in capital assets, net of related debt $ 26,109,776 $25,996,416 $ 26,589,684 $ 29,642,136 Restricted 3,042,730 3,662,800 3,407,445 2,185,791 Unrestricted 4,709,368 2,647,090 1,264,814 2,812,123 Total business-type activities net assets $ 33,861,874 $ 32,306,306 $ 31,261,943 $ 34,640,050 Primary government Invested in capital assets, net of related debt $ 49,509,884 $ 58,749,387 $ 55,522,734 $ 58,066,482 Restricted 8,847,149 9,433,640 10,049,522 9,190,378 Unrestricted 28,662,825 15,645,072 20,634,514 22,081,655 Total primary government net assets $ 87,019,858 $ 83,828,099 $ 86,206,770 $ 89,338,515 129 LO I'- '<t co I'- ..... N [") LO co ...... N 0> ...... '<t co N to to co S M M N co 0 to ...... [") [") to ...... '<t N LO 0> [") LO 0 to N N CO I'- I'- '<t [") N LO [") 0> N.. to_ '<t '<t LO ...... LO 0 1'-_ CO '<t_ N '<t_ '<t to_ [") to 0 ci c<i 0 N ci to ...... c<i '<t. N l!i '<t- O ...... l..t") ...... r..: LO ..0 N ..; ..; 0>- to CO 0 LO to I'- N ...... '<t 0> N CO ..... to I'- [") [") to [") [") 0 '<t N to 0 CO to_ LO co_ LO N.. I'- I'- CO. ..... N.. N N 0> LO 0_ LO '<t '<t 0 ...... ~ 0> 0 1'-- '<t. c<i ci rti ci ci ..; LO- ci 0>- l!i ..0 l!i N ...... ...... C'") ...... '<t ..... ~ ~ a a a a a a 0> LO 0> N to to C'") 0> co !'- '<t to to I'- co M --- N '<t ...... co N ..... ...... N LO LO 0 0> ..... '<t to LO co ...... co 0> '<t 0> [") [") ...... ...... '<t ...... co 0 ...... I'- co N I'- co_ LO 0> I'- ..... to_ to_ ...... 1'-_ N 0> N ..... ..... [") [") 0 '<t ..... r..: ..; r..: r..: [") N- r..: ci r..: N ..... 0>- ...... c<i ci c<i '<t- '<t- 1'-- 0>- l!i '<t- LO ..... to to co ...... to ...... I'- ...... LO '<t ...... 0 N co [") N LO LO I'- co LO '<t 0 '<t C'") ..... co. I'- co '<t '<t co. ..... N. N 0> C'") 0 to_ I'- N N 0> to to_ C'") 0 r..: ci ..0 c<i 0>- rti ci cri ..; rti co- co- ..; N '<t- N N S N C'") ...... ~ ~ ro OJ >- a a fI7 fI7 a fI7 Iii ~ ;n- c;- o 0> to 0> 0> ..... '<t co '<t 0> l..'"l 0> '<t ...... 0> N N '<t to to 0 In co co N ...... 0> '<t LO N 0 to ...... ..... C'") co to to N 0> 0> N [") C'") to u:: co N co LO '<t to to '<t I'- I'- co [") 0 to 0 N.. [") ..... ..... It) [") co ...... r..: r..: r..: rti rti ci l!i rti l!i N N '<t- N- r..: r..: to [")- ..; ..; r..: N !'-- ci '<t co '<t to 0 0 co 0 LO 0> '<t N 0> ...... ...... 0> I'- I'- co co It) [") N to 0 '<t 0>_ N. 0>. ..... to '<t N co. ..... N.. I'- ...... to LO N co co ...... ...... co_ O> 0 ci ..; ci rti cri ci c<i '<t- !'-- r..: N- rti 1'-- N ..... ...... ..... [") '<t ...... ~ ~ fI7 fI7 fI7 fI7 fI7 fI7 '<t [") [") '<t I'- co '<t 0> !'- 0 !'- co 0> 0;- --- 0- N u; N I'- ..... 0> I'- ..... LO N to to I'- N [") co !'- N '<t I'- 0> I'- C'") 0 co co 0> ...... co 0 LO '<t. 0 '<t 0> [") co N N '<t 1'-_ 0> to '<t LO 0 to to to N N 0> N ..0 ...... co. c<i as !'-- '<t- cri c<i cri '<t N 0>- '<t- o 0 0 l!i ..0 to- ..; [")- as C'") N I'- [") N '<t '<t It) [") ..... '<t co ..... 0> It) N co 0 co co co LO ..... to 0 to I'- to co. 0 I'- to [") 0>_ ..... N.. N co It) [") '<t co I'- !'- It) co ...... 0> 0 as 0 c<i ..; cri rti 0>- 0>- ..0 ..0 1'-- r..: c<i c<i ~ It)- N ..... N C'") ..... ~ ~ 0 fI7 fI7 fI7 fI7 fI7 fI7 ~ ...... In OJ ::l In t: OJ OJ ::l > t: In In ~ OJ OJ "- t: E In > OJ In OJ 0 OJ ~ In "E In as ::l t: t: OJ :; OJ t: E OJ OJ OJ In OJ 0. 0. () t: :g e > as x 15 x OJ ~ OJ OJ OJ t: II) c. "E c. Oi OJ In 0 OJ X 0 II) E 0 1ii t: "0 ! OJ ~ In OJ 0 OJ C. t: r: r: .Q E In r: ~ as ~ "E .Q m .S: :; OJ OJ "E In "0 'S: In OJ "E "E Q; > t: In fIJ ::l In OJ ~ :n in 0 r: C. OJ in OJ as ~ in OJ 0 OJ in in OJ as Qi In 0 ~ E ~ .... ! () x E ~ 0 ~ 0 Q. E OJ ~ ~ E ro as 0 OJ .~ In as .~ ::l X fIJ 0 :~ t: r: 0 Cl 'S: In II) ... () r: III 'S: "E t: r: r: ~ fIJ OJ C) Q; OJ t: Iii III (5 OJ Q; CII OJ Iii :~ III OJ Q; III 'S: :~ Q; >- as U as 0:: 0 n OJ .l: 0. U In as fIJ c. ~ <l:: ... > >- rIJ Cf) ...J "E C) 0 c:> 0 ~ > :::l OJ "E U .?;> > > u > ~- Qi Iii 0 as 0 ~ ..>::: "0 Cll .~ .~ as 0 c as "- as "- 0 ~ as as 0 c:> ~ "0 r: t: E Cii Cl CII .E III .E I Cl Cl C) rIJ Iii as r: 0 OJ III OJ III III II) > S Cl E OJ rIJ CD Iii OJ 0 Z In 'ijj Cf) as as c. Cf) !!! lD III >- II) r: C. rIJ II) ~ ~ "E Iii r: (/) CII C. c.. u:: !!! Cii .?;> OJ ro r: OJ ~ t: OJ III rIJ "E .!: as S Q; .2 .2 .s Q; Q; t:: 0 t: r: a:: Q; ~ r: as t: .?;> as "- .0 III OJ ..a III I Q; 0 u.. as 'ijj E III Cl e' 'ijj E III OJ I E as fIJ CD CII E Iii 2 > fIJ E E ro Q; > II) E ...J ::l - r: :0 :0 m ;: e- >- > as c. II) III Iii III :; 0 fIJ ::l .~ 0 II) ::l .~ II) .~ ... Cl 0 '6 c t: OJ ::l ::l OJ Cl III ~ III as >. .0 l!! t: .l: C. Cl III .l: .0 X r: OJ 0 u.. ::l :3 Q; c:> c.. c.. J: U r: Cf) < lD Cf) Q; U 0 U ~ Q; c t3 CII co c co Iii Cl Iii t: Iii Iii r: Cll - CIl C. > 'iji > 'ijj > 'ijj Iii .?;> III C) c: "'0 "'0 "'0 0 ~ "'0 "'0 Qi "'0 .l: t1I ~ 0 ::l ... 0 ::l 0 ::l C3 () ...J .e 2- w c:> I- lD l- I- D- c:> lD l- I- Z C!) lD I- to ... ... c:l f'-. c:l Ol C'") to f'-. Ol f'-. c;) '<;t f'-. '<;t c;) '<;t ... ~ 0 Ol Ol to N c:l f'-. "" 0 Ol 0 c:l "" f'-. c:l to 0 '<;t c:l. "" to. f'-.. c:l c:l 0 0 0 "" 0 0 "" "". C'") Ol I..'"l "" ... oi to f'-. .;f 1..";- to 0 c:l- 0 .;f to 0 a::i to to r"i f'-.. C'") to "" c:l to f'-. f'-. '<;t 0:; Ol 0 Ol S ... c:l c:l '<;t to ~ "" to_ to_ Ol_ 0 c:l_ Ol c:l C'") to Ol. c:l f'-.. ~ O. 0 f'-. '<;t- e .;f C'") '<;to Ol '<;t C'") ... N N a a a a Ol I..'"l to ... Ol f'-. "" '<;t I..'"l ... N C'") 10 0 ... C'") c;) 0 Ol Ol N 0 f'-. C'") Ol Ol N "" to c:l N N f'-. C'") to f'-. "" 0 Ol_ c:l Ol "" "" to_ C'") to_ f'-. 0 0 C'") to N r"i ... ",,- oi 0 r"i r"i ... N- .n r-: ... 0 C'")- r"i '<;t- c:l- Ol N Ol c:l "" N "" 0 c:l ... to N c:l ... N N '<;t f'-. to_ Ol ~ '<;t f'-. f'-. ... C'") ... c:l t?. to f'-. '<;t 0_ C'") 0 to r"i to to r"i ... N N N ~ a a a a N f'-. N "" Ol Ol N f'-. C'") N to ~ ~ f'-. 0 ... ro 0) N ... ... f'-. I..'"l "" 0 Ol '<;t 0 '<;t c:l Ol to ;. Ol to "" "<l" ... ... c:l '<;t_ C'") ... to ... to. ... f'-. to N.. ... "" f'-.. oi N to- c:l C') to .n '<;t- to c:l .;f ~ '<;to N c:l to ",,- ... C'") N Ol ... to f'-. Ol c:l Ol c:l f'-. c:l f'-. to C'") "" Ol Ol_ c:l f'-._ N C'") '<;t to "<l" c:l !:e- N f'-.. to. I..'"l ... oi to C') '<;to '<;t ... ... ri N N ~ a a a a to 0 ... Ol '<;t '<;t to 10 0) to '<;t c:l Ol ... f'-. c;) 8" c;) c:l N N '<;t f'-. "" c:l '<;t N ... f'-. Ol N 0 ... 0 c:l c:l c:l c:l c:l "" N c:l "" to N ... N to ...- C'). 0 c:l c:l f'-. 0 to N r-: N .;f 0 r"i a::i ... oi C')- '<;t- N to Ol- IO- Ol f'-. f'-. c:l C') "<l" 0 to "" Ol N c:l "" to to "" "<l" 0 f'-. 0 N to_ o "" f'-. ~ ~ "" c:l N N_ c:l ~ ~ ...- c:l N r-: r"i C'")- '<;t- S N N ....... a a a a c:<I ....... l/) l/) l/) Q) l/) Q) Q) 0 l/) l/) e- Q) l/) l/) ~ () E CIl CIl .5 Q. -2: ~ :g :g III Iii Q) Cl '5. '5. Gl Oi l/) 0 CIl ctl Cl c :0 l/) c.. () l/) () c:: Q) Ql Cl () '0 Cl - III Cl "0 0 .c c <;:: 1: c 1: ..... ..... 'c '(3 'c t.) .E .E ..... Q) Q) en Q) ... "0 "0 ctl Q. E E ~ Q) Q) Q) l/) ~ Q) ;:; 'S; -s; l/) 1: .2 l/) 1: ~ l/) 1: ~ ~ ~ Q) 0 ~ ~ Q) Q) :;::: 1: Q) '" E "0 'S; E 'S; 1: "C en en en E liJ liJ Q) c:: Q) fii ~ ~ l/) fii U Zl l/) l/) Q) Q) Q) Q) >- x Iii Q) Iii E ~ ~ E III :;::: X X ctl $ Ql '(3 ctl :;::: Q) CIl Gl III 'S; $ $ Q. > '" :~ > l/) C III :~ :~ c Q) .S: Ql l/) Iii oS: l/) Q) Oi Iii Gl U Iii l/) X Q. ~ c 1: U ~ c Q. III U U :l >- >- $ l/) 0 0 .?? > <C > c:: Zl ctl 1:: 1:: 'c :c "0 0 Q) ctl "0 0 0 ctl CIl 0 Q) Q) fii Q) -0 Q) (j) Q) Q) (j) Cl - Cl Gl Gl Iii () l/) u c ~ E Q) U c ~ l/) Gl Iii Ql > Q. Q. ~ c Q) c l/) l/) l/) ~ >- Gl III 1: 0 0 "0 m Iii 'c .!!! ~ .l!! c Q. 'c .!!! g .l!! Q) z 1: Q. en III C:: C:: fii l/) Iii .2:- fii CIl .?? a:: <C Q) l/) E U: Qj Qj c .5 U) 1: l/) I C l/) 'r;; E Q) E E Q) ~ () c c > l/) ~ () c E l/) iii - x ~ '" -m ctl 0 l/) '" 'm CIl ~ .~ Gl l/) .~ ... Gl c ctl c ~ ~ Cl Q) C ~ ~ .0 Cl c Q) Gl Z Oi I- :::> CJ CJ Iii c :::> CJ c:: Oi c c > '(jj Iii Iii III > -r;; Iii Gl 0 -0 ~ -0 -0 .c 0 ~ -0 c.? CJ I- ID l- I- t.) CJ ID I- City of La Porte, Texas Governmental Activities Tax Revenues By Source Last Four Fiscal Years (modified accrual basis of accounting) (unaudited) Fiscal Property Franchise Sales Industrial Other Year Taxes Taxes Taxes Payments Taxes Total 1997 $ 8,671,352 $ 1,265,058 $ 1,394,380 $ 5,479,770 $ 176,870 $ 16,987,430 1998 9,014,064 1,345,706 1,551,649 5,567,175 170,203 17,648,797 1999 9,340,924 1,450,608 1,718,803 6,496,998 212,208 19,219,541 2000 9,525,957 1,480,901 2,575,584 6,308,210 248,615 20,139,267 2001 10,366,949 1,835,122 2,866,496 6,306,469 310,518 21,685,554 132 City of La Porte, Texas Fund Balances of Governmental Funds Last Four Fiscal Years (modified accrual basis of accounting) (unaudited) 2003 Fiscal Year 2004 2005 2006 General fund Reserved Unreserved Total general fund $ 209,191 $ 440,926 $ 209,191 $ 212,164 6,632,833 7,009,028 8,972,133 10,903,496 $ 6,842,024 $ 7,449,954 $ 9,181,324 $11,115,660 All other governmental funds Reserved Unreserved/Undesignated Unreserved, reported in: Special revenue funds Capital projects funds Total all other governmental funds $ 7,462,916 $ 1,584,497 $ 2,061,426 $ 1,813,887 3,770,935 1,005,159 4,255,634 1,247,381 5,067,980 9,287,535 16,488,090 11,577,618 $16,301,831 $11,877,191 $22,805,150 $14,638,886 133 City of La Porte, Texas Changes in Fund Balances of Governmental Funds Last Four Fiscal Years (modified accrual basis of accounting) (unaudited) Fiscal Year 2003 2004 2005 2006 Revenues Taxes $ 22,922,669 $ 22,948,635 $ 24,045,940 $ 25,687,864 Donations 30,000 Harris County Joint Ventures 1,751,555 Licenses and permits 199,970 320,405 531,091 683,284 Fines and forfeits 847,250 554,559 678,205 848,232 Charges and services 2,275,333 2,947,340 3,233,453 3,887,570 Intergovernmental 480,037 576,262 1,112,687 1,174,381 Interest 481,822 325,418 630,683 1,709,163 Miscellaneous 125,020 32,605 183,658 163,380 Total revenues 27,332,101 27,705,224 32,197,272 34,153,874 Expenditures General Government 5,542,520 7,971,284 6,848,838 7,236,765 Public Safety 10,477,080 10,414,544 10,532,857 11,071,829 Public Works 2,556,011 2,361,192 2,430,322 2,360,073 Health and Sanitation 1,823,462 1,758,964 1,808,313 1,813,812 Culture and Recreation 3,475,888 3,245,144 3,067,815 3,010,725 Debt Service Principal 1,590,000 1,490,000 1,330,000 1,195,000 Interest 795,199 699,834 1,030,430 1,374,314 Capital Outlay 2,771,651 3,259,141 8,566,314 6,550,309 Total expenditures 29,031,811 31,200,103 35,614,889 34,612,827 Excess of revenues over (under) expenditures (1,699,710) (3,494,879) (3,417,617) (458,953) Other financing sources (uses) Proceeds from sale of long term debt 16,586,900 6,965,000 Transfers in 1,919,871 3,469,026 3,222,196 6,055,874 Transfers out (3,423,500) (3,790,857) (3,774,399) (7,532,602) Proceeds from sale of assets 42,250 90,083 Total other financing sources (uses) (1,503,629) (321,831 ) 16,076,947 5,578,355 Net change in fund balances $ (3,203,339) $ (3,816,710) $ 12,659,330 $ 5,119,402 Debt service as a percentage of noncapital expenditures 8% 7% 7% 7% 134 City of La Porte, Texas General Government Tax Revenues by Source Last Four Fiscal Years (modified accrual basis of accounting) (unaudited) Fiscal Property Franchise Sales Year Taxes Taxes Taxes 2003 $ 10,925,425 $ 1,682,849 $ 2,764,876 2004 11,070,189 1,718,875 2,993,481 2005 11,787,495 1,805,800 3,166,900 2006 12,162,641 1,986,698 3,741,321 135 Industrial Other Payments Taxes Total $ 7,094,900 $454,619 $ 22,922,669 6,896,112 269,978 22,948,635 6,991,926 293,819 24,045,940 7,470,700 326,504 25,687,864 City of La Porte, Texas Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (unaudited) Fiscal Year Ended September 30 Estimated Market Value Real Personal Property Property 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 $ 1,107,091,700 1,132,150,100 1,200,942,090 1,348,881,240 1,346,611,820 1,461,368,400 1,498,049,850 1,546,560,410 1,601,433,200 1,777,351,563 $ 222,428,561 239,361,192 231,352,908 258,255,710 295,183,470 295,213,550 270,257,240 279,687,470 311,721,280 325,549,640 Less: Tax Exempt Property $147,472,790 151,237,850 170,254,950 187,918,790 219,056,080 251,950,970 255,642,570 265,840,970 278,265,540 407,734,605 Source: City of La Porte records and the Harris County Appraisal District 136 Total Taxable Assessed Value $ 1,182,047,471 1,220,273,442 1,262,040,048 1,419,218,160 1,422,739,210 1,504,630,980 1,512,664,520 1,560,406,910 1,634,888,940 1,695,166,598 Total Estimated Assessed Direct Actual Value as a Tax Taxable Percentage of Rate Value Actual Value $ 0.71 1,329,520,261 112.48% 0.71 1,371,511,292 112.39% 0.71 1,432,294,998 113.49% 0.71 1,607,136,950 113.24% 0.71 1,641,795,290 115.40% 0.71 1,756,581,950 116.75% 0.71 1,768,307,090 116.90% 0.71 1,826,247,880 117.04% 0.71 1,913,154,480 117.02% 0.71 2,102,901,203 124.05% 137 City of La Porte, Texas Property Tax Rates Direct and Overlapping Governments (Per $1 DO of Assessed Value) Last Ten Fiscal Years (Unaudited) City Direct Rates 1 Debt Harris County Fiscal General Service Flood Control Harris Year Fund Fund Total District 2 County 2 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 2003 0.575 0.135 0.71 0.041740 0.3881 2004 0.575 0.135 0.71 0.033180 0.3999 2005 0.612 0.098 0.71 0.033220 0.39986 2006 0.612 0.098 0.71 0.032410 0.40239 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 138 Overlapping Rates 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 $ 0.0160 $ 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 3.0780 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 0.0199 0.0063 0.1902 1.680 0.1307 3.16694 0.0167 0.0063 0.1902 1.734 0.1391 3.22938 0.01474 0.00629 0.19216 1.734 0.145365 3.23564 0.01302 0.00629 0.19216 1.635 0.145365 3.13664 139 City of La Porte, Texas Pricipal Property Tax Payers Current Year and Nine Years Ago (Unaudited) 2006 1997 Percentage Percentage ofTotal City ofTotal City Taxable Taxable Taxable Taxable Assed Assessed Assed Assessed Taxpayer Value Value Taxpayer Value Value Conoco Phillips Inc $ 54,702,820 3.09% Conoco Inc $ 54,111,440 2.57% Dxy Vinyls LP 49,177,149 2.78% Equistar Chemicals LP 44,664,690 2.12% Equistar Chemicals LP 45,219,482 2.56% HL&P 42,425,040 2.02% BP Solvay 37,068,510 2.10% Solvay Polymer Corp 37,068,510 1.76% PPG Industries 32,016,935 1.81% Occidental Electrochem 36,236,280 1.72% Dupont Dow Elastomers 25,986,060 1.47% PPG Industries 30,016,160 1.43% Centerpoint Energy 24,651,811 1.39% Fina Oil & Chern. Co. 24,606,050 1.17% Dow Chemicals 20,576,356 1.16% Dow Chemicals 21,053,500 1.00% Attofina Petrochemicals 20,215,323 1.14% Geon Company 20,408,900 0.97% PPG Industries 14,643,050 0.77% Noltex 14,662,470 0.70% $ 324,257,496 18.33% $ 325,253,040 15.47% Source: City of La Porte Tax Department 140 City of La Porte, Texas Property Tax Levies and Collections Last Ten Fiscal Years (unaudited) Collected within the Taxes Levied Fiscal Year of the Levy Delinquent Total Collections Fiscal for the Percentage Tax Percentage Year Fiscal Year Amount of Levy Collections Amount of Levy 1997 $ 8,310,963 $ 8,100,624 97.47% $ 358,575 $ 8,459,199 101.78% 1998 8,598,632 8,437,322 98.12% 220,553 8,657,875 100.69% 1999 8,939,428 8,795,498 98.39% 206,154 9,001,652 100.70% 2000 9,175,689 9,006,072 98.15% 184,584 9,190,656 100.16% 2001 10,102,074 9,831,981 97.33% 247,977 10,079,958 99.78% 2002 10,683,102 10,515,098 98.43% 207,508 10,722,606 100.37% 2003 10,740,051 10,539,796 98.14% 300,131 10,839,927 100.93% 2004 11,078,891 10,924,697 98.61% 263,540 11,188,237 100.99% 2005 11,607,713 11,451,693 98.66% 277,123 11,728,816 101.04% 2006 12,035,686 11,829,142 98.28% 255,319 12,084,461 100.41 % Source: City of La Porte Tax Department 141 City of La Porte, Texas Ratio of Outstanding Debt by Type Last Seven Fiscal Years (unaudited) Governmental Activities General Certificates Fiscal Obligation of Other Year Bonds Obligation Obligations 2000 $ 11,370,000 $ 3,000,000 $ 2001 9,745,000 2,850,000 2002 8,210,000 2,700,000 5,400,000 2003 6,770,000 2,550,000 5,400,000 2004 5,430,000 2,400,000 5,400,000 2005 11,925,000 11,050,000 5,400,000 2006 12,610,000 16,405,000 5,130,000 Source: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Percentage of personal income and Per capita personal income pro' 142 Business-Type Activities General Water and Obligation Total Percentage Sewer Revenue Refunding Other Primary of Personal Per Bonds Bonds Obligations Government Income Capita $ 1,425,000 $ 2,275,000 $ 8,080,000 $ 26,150,000 3.87% 820 1,200,000 1,840,000 8,080,000 23,715,000 N/A N/A 975,000 1,440,000 7,710,000 26,435,000 N/A N/A 750,000 1,040,000 7,293,358 23,803,358 N/A N/A 625,000 585,000 6,904,178 21,344,178 N/A N/A 500,000 145,000 6,500,000 35,520,000 N/A N/A 375,000 8,680,000 43,200,000 N/A N/A "Om the 2000 US Census. 143 City of La Porte, Texas Ratio of General Bonded Debt Outstanding Last Seven Fiscal Years (unaudited) Percentage of General Certificates Actual Taxable Fiscal Obligation of Value of Per Year Bonds Obligation Total Property 1 Capita 2 2000 $ 14,370,000 $ $ 14,370,000 21,178 2001 12,595,000 12,595,000 2002 16,310,000 16,310,000 2003 12,170,000 2,550,000 14,720,000 2004 10,830,000 2,400,000 13,230,000 2005 17,325,000 11,050,000 28,375,000 2006 17,740,000 16,405,000 34,145,000 General Bonded Debt Outstanding Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1. See Table for property value data. 2. See Table for population data. 144 City of La Porte, Texas Direct and Overlapping Governmental Activities Debt As of September 30,2006 (unaudited) Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable Debt Debt repaid with property taxes Harris County $ 1,735,371,000 0.82% $ 14,230,042 Harris County Department of Education 0.82% Harris County Flood Control District 443,370,000 0.82% 3,635,634 Harris County Toll Road - Toll Road Bonds 34,324,985 0.82% 281,465 La Porte ISD 115,170,000 37.82% 43,557,294 Port of Houston Authority 314,705,000 0.83% 2,612,052 San Jacinto Jr. Collect District 73,200,000 6.32% 4,626,240 Other debt Subtotal, overlapping debt $ 2,716,140,985 $ 68,942,727 City of La Porte dlirect debt 36,770,000 100% $ 36,770,000 Totall direct and overlapping dlebt $ 105,712,727 Source: RBC Dain Rauscher Inc., Financial Advisors 145 City of La Porte, Texas Legal Debt Margin Information Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit 1997 $ 29,784,084 9,577,381 $ 20,206.703 1998 $ 30,787,158 10,210,322 $ 20,576,836 1999 $ 31,930,272 8,555,959 $ 23,374,313 2000 $ 38,129,152 13,106,517 $ 25,022,635 2001 $ 35,568,480 11,291,932 $ 24,276,548 Note: The City has no general obligation legal debt limit other than a celing on the tax rate as specified by the State of Texas. The pres( 146 Fiscal Year 2002 $ 37,615,775 14,720,390 $ 22,895,385 2003 2004 $ 37,816,613 $ 39,010,173 10,372,787 9,245,503 $ 29,764,670 $ 27,443,826 Legal Debt Margin Calculation for Fiscal Year 2006 Assessed value Add back: exempt property Total assessed value Debt limit (2.5% of total assessed value) Debt applicable to limit: General obligation bonds Less: Amount set aside for repayment of general obligation debt Total net debt applicable to limit :ribed maximum is $2.50 per $100 of the appraised value. Legal debt margin 2005 $ 40,872,224 15,620,369 $ 25,251,855 147 2006 42,379,165 15,926,113 $ 26,453,052 $ 1,695,166,598 $ 407,734,605 $ 2,102,901,203 42,379,165 $ 17,740,000 (1,813,887) 15,926,113 $ 26,453,052 City of La Porte, Texas Pledged-Revenue Coverage Last Ten Fiscal Years (unaudited) Fiscal Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Total Revenues 1 $ 6,106,337 6,368,938 6,445,231 6,844,236 6,094,735 5,988,595 5,837,448 5,836,221 6,193,451 7,438,016 Water and Sewer System Revenue Bonds Less: Net Average Operating Available Annual Expenses 2 Revenue Requirement $4,081,712 4,177,982 4,386,479 5,626,662 4,347,508 4,814,158 5,025,158 5,125,635 5,259,943 5,389,783 $ 2,024,625 2,190,956 2,058,752 1,217,574 1,747,227 1,174,437 812,290 710,586 933,508 2,048,233 Note: 1. Includes interest income. 2. Excludes depreciation and loss on uncollectible accounts. 148 $ 796,603 798,547 871,328 830,483 828,781 757,418 695,948 651,293 608,161 381,712 Times Coverage 2.54 2.74 2.36 1.47 2.11 1.55 1.17 1.09 1.53 5.37 City of La Porte, Texas Demographic and Economic Statistics Last Ten Calendar Years (Unaudited) Personal Per Income Capita Estimated (thousands Personal Median School Unemployment Year Population of dollars) Income Age Enrollment Rate 1997 31,859 N/A N/A N/A 7,353 5.3% 1998 32,658 N/A N/A N/A 7,415 4.3% 1999 34,191 N/A N/A N/A 7,477 4.4% 2000 31 ,880 675,155 21,178 33 7,645 3.9% 2001 32,356 N/A N/A N/A 7,772 4.6% 2002 32,910 N/A N/A N/A 7,732 5.6% 2003 33,789 N/A N/A N/A 7,648 7.0% 2004 33,712 N/A N/A N/A 7,629 6.0% 2005 34,538 N/A N/A N/A 7,808 6.1% 2006 34,825 N/A N/A N/A 7,786 4.5% Sources: Estimated population provided by the Planning Department. Personal, income, per capita personal income and median age provided from the 2000 US Census. School enrollment provided by LPISD. Unemployment rates provided on the Texas Workforce Commission Website. 149 City of La Porte, Texas Principal Employers Current Year and Nine Years Ago (unaudited) 2006 Employer La Porte ISD E.1. Dupont De Nemours & Co. City of La Porte Furmanite Worldwide A&L Industrial Services Inc. CCC Group Inc. Aker Kvaemer Industrial Constructors, Inc. James H Jackson Industries Inc. Occidental Chemical Corp. Intercontinental Terminals Co. Total Employees 1,000 580 368 334 300 300 250 250 175 160 3,717 Percentage ofT otal City Employment 27% 16% 10% 9% 8% 8% 7% 7% 5% 4% 100% 1997 * Employer Solvay Polymer San Jacinto College La Porte ISD E.1. Dupont Millenium (fonnerly Quantum) Akzo Nobel Hickham Industries Dow Chemical Fina Oil & Checmical Geon Company Employees 1,100 1,003 987 870 736 500 270 250 225 180 6,121 Percenta~ ofT otal C! Employme 1 11 11 1. 1 10' * Source: City of La Porte Official Statement, Series 1998 General Obligation Bonds 150 City of La Porte, Texas Full-Time Equivalent City Government Employees by Function/Program Last Two Fiscal Years ( unaudited) Fiscal Year 2005 2006 76 76 135 138 32 32 22 21 47 45 26 27 20 20 13 13 3 3 Function/Program General Government Public Safety Public Works Health & Sanitation Culture and recreation Water Services Sewer Services Golf Course Sylvan Beach Convention Ctr. Source: City Budget Office 151 City of La Porte, Texas Operating Indicators by Function/Program Last Eight Fiscal Years (unaudited) 1999 2000 2001 Function/Program Police Physical arrests 1,541 2,114 2,193 Tickets processed 6,065 6,657 9,489 Fire Number of calls answered N/A N/A N/A Inspections N/A N/A N/A Highways and streets Street resurfacing (linear feet) 40,400 39,200 42,000 Potholes repaired 251 302 232 Sanitation Cu. Yds. Garbage collected 25,757 27,300 28,025 Cu. Yds. Trash collected 31,061 38,603 48,049 Culture and recreation Fitness center admissions N/A N/A N/A Water Number of water meters 9,500 9,679 10,699 Average daily water consumption (million gallons) 3.1 3.3 3.0 Water mains breaks 806 601 505 Wastewater Average daily sewer treatment 3.4 3.0 3.9 (thousands of gallons) Golf Course Number of Paid Rounds Played 41,117 48,950 43,063 Source: City Departments Notes: N/A - Data not available 152 Fiscal Year 2002 2003 2004 2005 2006 2,271 2,000 2,330 2,465 962 9,298 9,605 6,593 6,877 8,212 N/A N/A 1,044 1,044 N/A N/A 500 500 26,200 27,800 33,800 66,158 27,835 271 413 524 531 321 28,655 28,243 29,675 30,022 30,795 52,796 50,111 54,875 49,140 49,140 N/A N/A 84,060 84,060 10,957 10,987 10,987 10,987 11,592 3.1 3.2 3.2 4.1 3.3 491 440 299 437 483 3.4 3.9 4.0 3.5 2.8 42,540 38,594 38,901 34,961 32,731 153 City of La Porte, Texas Capital Asset Statistics by Function/Program Last Seven Fiscal Years (unaudited) Fiscal Year 2000 2001 2002 2003 2004 2005 2006 Function/Program Public Safety Police Station 1 1 1 1 1 1 1 Police Officers 56 71 71 72 72 72 73 Reserve Officers 9 3 5 5 5 5 5 Fire Stations 4 4 4 4 4 4 4 Sanitation Collection trucks 13 13 13 14 14 14 14 Highways and streets Streets (miles) 160 160 164 164 164 211 217 Streetlights 1,823 2,072 2,109 1,533 1,665 2,192 1,803 Traffic signals 3 3 3 3 3 3 3 Culture and recreation Parks acreage 145 462 463 463 463 337 339 Parks 17 18 18 19 19 21 21 Swimming pools 6 6 6 6 6 6 6 Recreation Centers 1 1 1 1 1 1 1 Senior Center 1 1 1 1 1 1 1 Water and Sewer Water Mains (miles) 226 229 231 231 231 165 168 Fire Hydrants 1,800 1,800 1,800 1,800 1,800 1,800 1,800 Sanitary Sewers (miles) 184 185 186 187 187 187 187 Storm Sewers (miles) 87 88 88 89 89 89 92 Source: City Departments Note: N/A - data not available 154 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Februarv 26. 2007 Appropriation Requested By: John Joerns, Interim City Manager Source of Funds: n/a Department: Adminidration Account Number: Report: Resolution: X Ordinance: Amount Budgeted: Exhibits: Draft Resolution and back up Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION This resolution will enable the Mayor to direct the City of La Porte's legislative activities, absent specific positions taken by the City Council. This omnibus will be used by City staff as a guide for deciding the City's position on various bills. Fundamentally, this allows staff to write and/or testify on behalf of the City to protect the citizens against costs and loss of local control among other similar issues. Part A & B is the same content as the previous resolution passed by Council for the 78th Legislature. No similar resolution was passed for the 79th Legislature. Part C is an additional consideration for Council. Two resolutions are provided for Council. One including only parts A & B which is same as passed for the 78th Legislature. A second includes Part C which adds the Report of the TML Legislative Policy Committee on General Government 2006. Staff recommends the adoption of this legislative omnibus for the 80th State Legislative Session with appropriate modifications by Council. This would allow staff the opportunity to more quickly respond to proposed legislation. Action Required bv Council: Provide staff with direction regarding a resolution of the City Council of the City of La Porte, Texas adopting a Legislative Omnibus for the 80th State Legislative Session. · Take no action · Pass either Resolution with modifications by Council A }iRolo7 Date I RESOLUTION NO. 2007- ~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS ADOPTING A LEGISLATIVE OMNIBUS FOR THE 80th STATE LEGISLATIVE SESSION FOR THE PURPOSE OF DEFINING THE POSITION OF THE CITY OF LA PORTE. OMNIBUS LEGISLATIVE POLICY A governing policy to enable the Mayor to direct the City of La Porte's legislative activities, absent specific positions taken by the City Council. A. The City of La Porte will support legislation that: 1. Furthers the principles of Home Rule and local self-governance 2. Brings additional revenue to the City of La Porte 3. Strengthens the ability of the City to act in the best interest of its citizens' health, safety, and welfare. B. The City of La Porte will oppose all bills that seek to: 1. Counter the principles of Home rule and local self-governance 2. Impose unfunded mandates to the City 3. Limit authority of the City to generate revenue 4. Create a loss of revenue to cities, or 5. Weaken the ability of cities to act in the best interest of its citizens' health, safety, and welfare Passed by the City Council this 26TH day of February, 2007. CITYO~y~_ Alton E. Porter Mayor ATTEST: V/haitl p /)(~Jtj Martha A. Gillett City Secretary AZPP~_~~D~ ~ 7 U-'A;' , -;LcP /' Knox W. Askins City Attorney --tn '-7 D (1/1 D () RESOLUTION NO. 2007- O$'" frD -I s e I-€? c/ [?1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS ADOPTING A LEGISLATIVE OMNIBUS FOR THE 80th STATE LEGISLATIVE SESSION FOR THE PURPOSE OF DEFINING THE POSITION OF THE CITY OF LA PORTE. OMNIBUS LEGISLATIVE POLICY A governing policy to enable the Mayor to direct the City of La Porte's legislative activities, absent specific positions taken by the City Council. A. The City of La Porte will support legislation that: 1. Furthers the principles of Home Rule and local self-governance 2. Brings additional revenue to the City of La Porte 3. Strengthens the ability of the City to act in the best interest of its citizens' health, safety, and welfare. B. The City of La Porte will oppose all bills that seek to: 1. Counter the principles of Home rule and local self-governance 2. Impose unfunded mandates to the City 3. Limit authority of the City to generate revenue 4. Create a loss of revenue to cities, or 5. Weaken the ability of cities to act in the best interest of its citizens' health, safety, and welfare C. The City of La Porte may either endorse or oppose bills that are consistent with the Report of the TML Legislative Policy Committee on General Government. Passed by the City Council this 26TH day of February, 2007. CITY OF LA PORTE ATTEST: Alton E. Porter Mayor Martha A. Gillett City Secretary APPROVED: Knox W. Askins City Attorney REPORT OF THE TML LEGISLATIVE POLICY COMMITTEE ON GENERAL GOVERNMENT 2006 1. Seek introduction and Dassa2e oflegislation that would: A. Provide for the following changes to Chapter 176 of the Texas Local Government Code (conflicts disclosure): 1. Include a de minimus or threshold amount of taxable income that triggers the requirement to file a conflicts disclosure statement. 2. Provide a reasonable, statutory retention period for statements and questionnaires. 3. Provide that questionnaires that do not indicate a conflict of interest are not required to be posted on a city' s Web site. 4. Provide that interest received from a personal bank: account or other investments is not included in the definition of taxable income. 5. Clarify that political contributions to a city official. are not considered a "gift" for purposes of Chapter 176. 6. Clarify that a city has no affirmative duty to ensure vendor compliance, and that the failure of a city to receive a questionnaire does not affect the validity of a contract. 7. Provide an exemption for gifts received from family members. 8. Clarify that a vendor who is restricted by some other law from filing a questionnaire is not required to do so. 9. Provide that the tenn "contracts or seeks to contract" applies only to written contracts, rather than routine purchases. 10. Clarify that only the city councilor other body that actually votes to approve contracts entered into by the city are subject to the disclosure requirement. II. Provide that vendors who have no relationship with any city official. are not required to file a questionnaire unless and until such a relationship becomes known. 12. Provide that a purchase from a cooperative purchasing program is not subject to Chapter 176 requirements. 13. Provide that identifying information relating to a public official's family members is confidential, as is the case under the Texas Public Information Act. 14. Provide that if a city charter prohibits a city official from having any interest in a contract with a city, the city is not subject to the requirements of Chapter 176. B. Authorize a city council to appoint a current councilmember to fill a vacancy in the office of mayor, thus overturning Texas Attorney General Opinion GA-0377 (2005). C. Exempt governmental mosquito control applicators from the full cost recovery requirements of the Texas Health and Safety Code. II. Support legislation that would: A. Establish a statewide disaster mutual aid system that would supplement existing mutual aid agreements. B. Provide full dollar funding for the Texas Commission on Law Enforcement Officer Standards and Education to enable the Commission to fully carry out its responsibility to help ensure citizens and visitors that Texas has the best-trained and most professional law enforcement personnel in the United States. "C. Enable the use of competitive sealed proposals for the procurement of all goods and semces. D., Enable the use of electronic notice of bid/proposal. notice to the public of bid/proposal opportunities. E. Provide flexibility in hiring entry-level firefighters and police officers in civil service cities. F. Allow a fire chief or police chiefto increase the number of appointments immediately below the department head level in civil service cities. III. Endorse legislation that would: A. Require electronic reporting of pawn shop data to local Jaw enforcement agencies. B. In the case of an arrest warrant related to suspected child abuse, protect the confidentiality of juvenile information and the identity of a person who reports alleged child abuse. C. Reduce appeals to third-party hearing examiners of suspensions of less than three days by firefighters or police officers in civil service cities. D. Provide reasonable time limits for firefighters or police officers to return to work after temporary disabilities or disability retirements in civil service cities. E. Allow negotiated retirements arising out of or related to resolution of a lawsuit against a firefighter or police officer in a civil service city. 2 F. Define a day as eight hours for purposes of the statute referring to sick leave and vacation leave in civil service cities. G. Provide six additional months of probation for participants attending an academy, whether they are certified or not, in civil service cities. H. Allow a ranking officer other than the department head to deliver a letter of suspension in civil service cities. 1. Reduce the administrative burdens of Chapter 143 of the Local Government Code (firelpolice civil service). J. Increase local parks funding to $25 million,. or more as appropriate. K. Enact the recommendations of the State Park Advisory Committee as published on August 24,2006. (please see Appendix A, attached.) / N. Oppose legislation that would: A. Erode the authority of a city to impose a civil penalty on the owner of a vehicle if the vehicle's license plate is photographed while the vehicle is running a red light. B. Change or delete any of the current uniform election dates. c. Impose additional state costs or fees in municipal court. D. Negatively affect the ability of cities to investigate pawn shops and stolen property, such as legislation that would require mandatory holds. E. Expand the municipal court collection assistance program to either: (1) include more than the 24 cities that are currently affected; or (2) require more of the cities currently affected. F. Permit waiver of appearance at a municipal court trial. G. Substantively change or expand the scope of the current disease presumption law. H. Impose expanded collective bargaining rights. I. Expand the current meet and confer law. J. Seek to limit management rights as they relate to personnel management. K. Limit cities' ability to appeal the decisions of third-party hearing examiners in civil service cities. L. Mandate new or enhanced health care benefits or prescription drug coverage. 3 ,...-. M. Mandate enhanced employment benefits. N. Make detrimental changes to workers' compensation law. O. Further erode municipal sovereign immunity. P. Subject cities to statutes oflimitation. Q. Restrict contingent fee contracts between cities and lawyers. R. Prohibit indemnification clauses in construction contracts. S. Cut state funding of local parks grants. v. Take no position on legislation that would authorize, but not require, law enforcement holds on pawn shop goods. VI. The Committee also recommended that the TML Board form a committee of city officials to visit with the leadership of the Texas Department of Transportation regarding current access management rules. VII. The Committee also recommended that the TML Board form a committee of city officials to study the issue of insurance service office (ISO) ratings in unincorporated areas. 4 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: February 26. 2007 Budl!et Requested By: nehrll nye Source of Funds: Department: CMO Account Number: Report: Resolution: X Ordinance: Amount Budgeted: Exhibits: Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION In November, 2006 La Porte was notified that the Texas Department of Transportation had pulled funding for the Statewide Transportation Enhancement Program. This meant that neither of the grants submitted, Main Street streetscaping or the Depot, would receive funding. The Texas Downtown Association is working diligently on behalf of Texas communities to get TXDOT to reinstate their STEP grant. They have asked for assistance from communities like ours that have been negatively impacted by TXDOT's decision to pull funding. Action Required bv Council: Consider approval ofa resolution supporting the reinstatement ofTXDOT's Statewide Transportation Enhancement Program. RfO;:7 I Date RESOLUTION NO. 2007 - O~ A RESOLUTION SUPPORTING THE REINSTATMENT DEPARTMENT OF TRANSPORTATION'S STATEWIDE ENHANCEMENT PROGRAM FUNDS. OF THE TEXAS TRANSPORTATION WHEREAS, For 15 years the Texas Department of Transportation (TXDOT) has implemented the Statewide Transportation Enhancement Funds (STEP) awarding an estimated $466 million, to a total of 505 enhancement projects for Texas communities. These funds have been used for downtown streetscape projects, visitor's centers, historic preservation projects, as well as hike and bike trails. WHEREAS, The City of La Porte committed their time, resources, and money submitting two grant applications for the TXDOT STEP grant. WHEREAS, TXDOT abruptly halted the STEP grant program and determined to allocate the funds elsewhere. WHEREAS, TXDOT's policy change negatively impacts La Porte and other Texas communities at the grass roots level by not investing in this program. WHEREAS, La Porte's applications for the La Porte Railroad Depot & Beach House Restoration and the La Porte Streetscape Improvements were designed to help position our community in the growing regional tourism industry and improve investment appeal in our historic areas, thereby diversifying our economic base and positively impacting the State of Texas. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAPORTE: Section 1. The City of La Porte requests that the Texas Department of Transportation reinstate the Statewide Transportation Enhancement Funds for their original purpose. Section 2. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council is posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Chapter 551, Tx. Gov't Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3 This Resolution shall be effective upon its passage and approval. Passed by the City Council this 26th day of February, 2007. CITY OF LA PO~T N ~) , '! -// ._L_ ,!~--- Alton E. Porter Mayor ::::tiLST: . N ~. ()t1f ~ {j Martha A. Gillett City Secretary ~7: ~ / hI' Knox W. Askins City Attorney February 21,2007 Page 1 of2 Gillett, Martha From: Krischke, Pam (CCO) [PKrischke@itc.co.harris.tx.us] Sent: Wednesday, February 21, 2007 10: 15 AM To: Gillett, Martha Subject: SJR13 / May 12, 2007 Election Dear Entity: The following is a letter from Mrs. Beverly B. Kaufman, Harris County Clerk that will be mailed to you today. February 21,2007 Martha Gillett City of LaPorte Dear Martha: SJR 13, rapidly working its way through the state legislative process, proposes a state constitutional amendment authorizing the legislature to provide for a reduction of the limitation on ad valorem school taxes that may be imposed on homesteads of the elderly or disabled and would require a state constitutional amendment election on May 12th, the same date your entity is scheduled to hold an election. Holding a constitutional amendment election in May would allow such a reduction to be effective for taxes assessed in 2007, should the amendment be approved by the voters. We anticipate that SJR 13 will be approved by both houses of the legislature and signed by the governor in the next week to ten days. Therefore, we are proposing that you consider joining Harris County in holding a Joint Election on May 12th. Harris County will be using Harris County Early Voting locations and Harris County voting precincts. We will be consolidating voting precincts while taking into consideration each entity's current polling locations for Election Day. Choosing to join with Harris County for a joint election would be advantageous to you for several reasons. Voters would only need to go to one polling location to vote on all issues thereby reducing voter confusion and complaints. And by conducting a joint election, you would bear a pro rata share of the cost rather than 100% of the cost should you choose to conduct a standalone election. Also, in a joint election, Harris County will process all absentee/postal ballots, obtain the polling locations and poll workers, and will secure the required language assistance personnel. Harris County will attempt to use the entity's current Election Day polling locations as long as Harris County voting precincts are not split into multiple polling locations. In the event that you are able to cancel your election, Harris County would still use the polling locations. Should you choose to conduct a standalone election and request a full service contract, Harris County 2/2112007 February 21, 2007 Page 2 of2 will only be able to give you limited support on election night, which means that response time to your administrative or equipment needs could be much longer than that to which you are accustomed, as multiple elections are being conducted in Harris County on that date. As I am sure you know, certain deadlines are already upon us for holding an election on May 12th. Therefore, we respectfully request that you respond with your decision as to whether you will join with Harris County in a joint election as soon as possible. SinceJe!YL~n G Beverly B. Kaufman Harris County Clerk 2/21/2007 02/~9/20a7 15:31 DR. RON RUCKER ~ 928147050139 OZl.l5IZ007 17,: ZO F.\4 2al~6H560 LAY SNOOKS NJ.707 ~ou~ [;102 "By: Averitt S.J.R. No. 13 A JOINT RESDLOTI.ON 1 pX'oposing a constitutional amendment autho.izin9 the legi51atu:re 2 to provioe for a :reduction of tht;! limitation oli 'Che tot.al amount of 3 ad valoxem ta~es ~hat may be imposed for public 3chool purpo$es on 4 the residence homes~e&~s of ~he elde:ly or dis~l=d to reflect any 5 reduction in che :t'a'te of those taxes and providing that state: 6 appropria't:l.ons mad.e for ~he p\lrpQse of directly reduci.n9 local. 7 gaven\ment 'taxes de not count i:lg'ail"lst the constitutional state 8 spe.nding limit. 9 n ~T ~rSOLV':eD BY THE LEGISLA!Oll.E or THE STATE or TEXAS: 10 SECTION 1. Sacticn l-b{d) , A.lticle VIII, Texas '1~ Constitution, i5 amended. 1:0 rf!ad as !ollcw"e;; 12 [a) Except ~s otherwise provided by this subsection, i~ a 13 person receives a usidence homestead eltempticn prescribed by 14 Sub5ec~ion (c) of ~ni$ section fox homesteads of perscn~ wno are 15 Si;(~y-five (65) years of age Qt cola-er or who are tii!:abled. the total 16 amount of ad valorem taxes ~p05ed on that homestead for general 17 elementary and Gecondary publ~c school pu:rpose~ m~y not be 18 ~ncr~ased while it remains the teQidence homes~e&a of tha~ person 19 or that person's spou6e who rec~ives the eKempt~on. ~f a person 20 ~i~ty~five (65) ye~rs cf age Dr older dies in a year in which the :21 person r~ce:iveCl. 't:he e~emption, "t:h~ "Cocal amo1.l.n~ of ad "\I'a~o~..m -;1:0)<<:: 22 impOtllid on the homestea.a for general elementary ana .ae!::ondary 23 pUblic school purpo~~~ may not be increas~d while i~ re~ains the 24 residenCB homeste~d of that p",rwcol"s ~urvivi.nS' spouse if tne SpC\l:ii1i! aOR447B JRD/~~H-n 1 02/19/2007 15:31 DR. RON RUCKER ~ 92814705009 02115/2007 17:50 FAX 281~842860 L~Y SNOOKS NO. 707 @OO~. LJl1..5 5 . J . ~. No. 13 1 is f i.fty-five (55) year s cf a.ge or older at the time of the per S;O:l.' S 2 dea~hr S\lbjl!~l; to any exr:eltti.ons provided by genual ~a\N. Tne 3 legislature bv general law may p~Qvide for the reauction of ~he 4 ~ount of a limit~l;ion this ~~b~eetio~ to reflect an S :r~duction from tl"le ]:lrecea ing year in the tax rate for aeneral 6 elementUy and secon<:h.:tV ~ublic: school J:lurpo.$es applicahle t:o IS 7 residence home.tamd. ~ q~neral law providing for th~ reduction of 8 the a11\.ount of fA li.Jni.~ation 'Provi.d~d PV this subuction may, for 9 purpoaaQ of computinq the amount of the limitation for t~e Z007 tax 10 year, also t:ake into ac:coQ.nt any ::eduction in t.r.r: tax ra1;e foX' those 11 pur~OU$ from the 2005 'tax vaal' to thQ 2006 tax yeaX' if the 12 r-.olMstead was subject to 't:he limitation in the 2006 tax vear. !xc:eg 13 as otherwise ~rovidQd by thi~ ~uhseotion, if a limita~ion provided 14 bV t:his sUb5~ct~on is reduced under a creneral law !'Iovidina for the lS reQuction of the amO'.mt of the limitation. the limitation as 16 red\Jci<'d continues to apply to the !esia.lmc~ homestead in subsequent 17 tax velU'6 until ~1'1e liIllitation expires, Tr.e legislature, b~ 18 geneTal law, may provide ror the tran5fIiI ot all or a proporti.onate 19 l!Inount of a lilnitation provided hy thi:l subsection for ii. PU80;'! who 2D qualifies for the limitation and establishes a diff~:rent residence 2l homestead. However, 1:axes otherwise limited by this subiile~ion may 22 he incre~sed to the e~tent the value of the homestead is inc::eased 23 by improvements othQr than repairs ot improvements made to comply 2~ ..,~t:h gcv~rnmcn'tal. requi:rfiments and except: as rn~y be coneist.n't with 2S the 't:r~r'lSifer of a limita.tion under this subSQ:c\:ion. For a residence 26 ho~est~ad subject 'to the limitation provided by this s~h~eo~ion in 27 the ~996 tax year or Ill.:rl ea.rlier tax year, the legislature sha.ll :2 132/19/21307 15:31 DR. RON RUCKER "* 928147051309 02/15/2007' 17: 50 PAX 2814/142860 LAY sNOOKS ~ . NO. 707 @004 l,It14 S. J. R. No. 13 1 ptovide for a reduction ~l'\ t:hll! amount of the limi.ta't.ion fox 'th~ 1997 2 tax year ana. 1:~beequel"lt tax years in an lUIIOutlt equ.al 'to $10,000 :3 mult:iplied by t~e Hl97 tax :rate fct general el~menta.ry and 4 seco:r.da.xy public scnocl p....rpo.ees applicabl6i to the :!::esidence 5 i\CllrLestead. 6 SECTION 2. Section 22, Article VIII, '!'exas Con~e.i'~u.tion, is i amenried by addinq 5\1l:laec:tion (d) to read /:l::J follows I 8 (0) An appro~riation from Gt~te t&~ tev~nues not dedica~ed 9 by this con.:5tituti.on made for the purpo~e of d.irectly r~a\lcing 1Q local Qovl:rnt~~nt I:axes, incluainq- school. aistrict prol;lerty 1:axes, 11 il$ nQ't cot:l.nted in aa1:t::nniningo for purposes of eh15 section twhether 12 the t~tQ of q~owth of appropriatiO~~ fron state ~ax reVenues :O~ a 13 biennium exceid~ the esti.mated rate of q:rowth of th~ 5ltate'e 14 HOnOray. ~5 SECTION 3. The following tel'llporary provision i!;; ad.ded to 16 the Texa.s Constitution: 11 Tt~PORARY p~OV!SION. (a) This te~~orarr provision &P~liei 18 to the constitutional amendment. proposed by the BOth Legislatux9L 19 Regula.r SeSl5licn. 2007, Authorizing the legislatute to provide for a 20 r eduction of 1!.he limitation on the ~o'tal amOWlt: of a.d va,lorem ta~e5 21 that mAY be im~osed far ~ublic school purpQses on the residence 22 homesteads of the eldGIlv 01" disabled to reflec't any red.uct:.on in 23 the rat~ of tnose taxes and providing th~t ~t:at~ approPtiatiQn~ 24 made tor the purpcs~ of d~recrly I~duc~n~ ~O~~~ qov~~nm~nt taxes do 25 not count aa~ain5t t.he constiocutional l:'it;at:~ $13endinq limit. 'This 26 tev.pol:UY 'PIovis~on expires January 1, 2D09. 27 [bl The amQndment to Section I-bed), Article VIII, of t:his 3 i:j'::::/l~/'::::I::l\:j( 1::>:.51 U~. ~UN ~U~Kc~ 7 ~~O~4(~~~~~ ITU--, f'tU. f~f 02J15/2007 17:S0 FAX 2814842880 LAY SNOOKS ~005 s. J. R. '\IYo. 13 1 constitution takes effact on the ~ate of the official canvaS5 of 2 returns ~howihq adoption of the :amQh~en~ and appli~e Qeainnin~ with the ta.X j'ea:r that beai.nSl .:fanuary 1, 2007. The legisla.tur~ may enact a qeno;r&l law authoriza~ by bhe constitut.i.onal aroendnHlht 1;hat applies 'Co the entire 2007 tax y~~r, notwit'hstll.ndinl3' tha.t the i canstltUtional am~ndment w~s adopted after the beginn~~ at that 3 4 5 6 7 8 " the entire 2007 tax year tax VfaI/ ~nd a gene~~l law applicable to is nO!: cOh.sideud to he a rlilt:roact~ve law. (c) The al'f\endment to sJdtion 22 Artiele VIII of t.his 10 constitutiol~ tues effect on t . aate of the official ca.nvass of II rctu.rns snowing adopt~on of th : amlindtnent ana ap'Pli~~ beqinnin3. I l~ with a to risticns made for all or art: of the $~ate fi~cal ear 13 end.in~ Auqust 31, 2007. 14 SECTION 4. ~h~s proposed constitutional ~!ndrnent shall be 8u~miLted to the voters at an el ct:ion to be held May 12, 2007. ~he ba.llot shall be printed to p rll\it voting' for or aqain!it the PI' oposi tion: "The c:onstitutkona.l arnendmel"ll: autho! izi.ng t:he l6lgislature 1:0 provid.e :EeT, a. r~aUOi:iOn of the lim.i~atio:"\ on the total amount of ad valorem taxrs tnat: may be im~o~ed for public school pUfpOl;;i!'S on the reSidefce hom~stead5 of the eldexly or di~abled to ~eflect any ~educ:t:i r in the rate of those ~a~es; and pro..:d.ai.ng that state a'ppropr4ation~ trlade for the purpose of directly r~d~cinq local 9oveIn~~nt taxes do not count again~~ the cO(lsl:itut:ion2l..l. $t;ate spending ~ j~il:;." 15 16 17 16 19 20 21 22 ~3 24 ~ REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Source of Funds: NA Account Number: NA Amount Budgeted: NA Amount Requested: NA Bud2et Item: NA Agenda Date Requested: February 26. 2007 Requested By: Wayne J. ~VIf Department: Plannin2 Report: -X-Resolution: _Ordinance:_ Exhibits: Memo; SCUP Approvals Ordinance P&Z Staff Report Area Map Public Notice Responses SUMMARY This item was tabled at the February 12,2007, meeting. A public hearing was opened and closed at that meeting. After receiving public input for and against the proposed SCUP, Council tabled the decision until the issue could be heard before the entire governing body. A memorandum was previously forwarded to clarify the conditions for approval ofa SCUP (Section 106-217) and is included as an exhibit. On January 18,2007, the Planning and Zoning Commission considered Special Conditional Use Pennit #SCU 07-001 for Future Farmers of America (FFA) and 4-H projects facility to be located at 11006 North Avenue P. Allan and Shelly Rankin are seeking this pennit for their son Derrick Rankin, who is an active member of La Porte 4-H Club and La Porte FF A Chapter at La Porte High School. The subject property is zoned Large Lot District (LL). The Code of Ordinances, Section 106-416 requires a Special Conditional Use Permit for FF A & 4-H projects to be located in the district. FFA is an integral part of the school's agricultural science program led by an agricultural science teacher. These projects are basically educational in nature and not for commercial purposes. Animals will be shown at various rodeo arenas or exhibitions in different cities throughout the State. All the proceeds will go towards scholarship funds for college education. The FF A program is designed in such a way to change lives and prepares students for premier leadership, personal growth, and career success. The applicants are proposing to house animals at the bam located at least 100 ft. away from the principal structure. The facility appears to be in a good shape and is kept clean per health and safety standards. In addition, the applicants agreed to meet additional conditions imposed based on specific site constraints necessary to protect the public interest and welfare of the adjoining property owners. There were approximately 70-75 people present during a public hearing at the Planning and Zoning Commission meeting. By judging their comments or expressions, all seemed to be in favor except one spoke against the project. Issues/concerns raised at the meeting were regarding flies, unsanitary conditions, and run-off from the animal wash area to the adjoining properties. Subsequently, P&Z imposed the following three additional conditions to be included to the draft SCUP; a limit of 8 animals at a time, pennit expire June 2010, and ensure the run-off from the animal wash area stays on the property. By unanimous vote, the Planning and Zoning Commission 1m recommended City Council consider approval of Special Conditional Use Permit #SCU07-001 with the conditions as listed in the SCUP. As required by Ordinance, Eight notices of public hearing were mailed to the property owners within 200' of the site. Seven responses were received, all opposed. Out of these seven written responses, 4 were from the property owners within 200' and 3 outside the 200' radius circle. As per State Law and Section 106-171(7) of the City's Code of Ordinances, if a written protest is signed by 20% of the residents within 200' ring from the proposed site, a vote of 0/4 of all the members ofthe governing body "City Council" is required to approve the motion. Action Required bv Council: Consider Planning and Zoning Commission recommendation to approve Special Conditional Use Permit #SCU 07-001 for FF A & 4-H projects site to be located at 11006 North Avenue P. This item requires a super majority vote for approval. enda ~/7 Da~ CITY OF LA PORTE PLANNING DEPARTMENT 604 W. Fairmont Parkway, La Porte, TX 77571 www.laportetx.gov Phone: (281) 471-5020 I Fax (281) 470-5005 MEMORANDUM FOR RECORD Fehmary 14, 200"7 TO: Mayor and City Council et1 Jolm Joems, Interim City Manager(l}f Wayne J.Sabo, Planning Director THall: FROM: Re: Division 7, Conditional Use Permits; Chapter 106 (Zoning); City Code of Ordinances After the City Council meeting on February 12,2007, Staff was asked to provide information regarding Section 106-217 pertaining to the approval of Special Conditional Use Permits (SCUP), as quoted by Mr. Vernon Johnson during the public hearing for SCUP 07-001 (FFA/4-H). The referenced section of the Ordinance is found beginning on Page CD:106:35- 36 in Chapter 106 (Zoning). · A question was asked if City Council may alter a SCUP that has been recommended bythe-Planning-and-Zooing-Commissi-on. Section 106-216 (c) states: "After a public hearing and upon recommendation of the city planning and zoning commission, the city council may modify the fmal planned unit development and issue a special conditional use permit containing such requirements and safeguards as are- neeessary to protect adjoining property." In essence, the City Council may approve or deny the permit as written or may approve it as modified as the Council sees fit. · Section 106-216 (f) goes on to state: "Every special conditional use permit granted as provided herein shall be considered as an amendment to the zoning ordinance as applicable to such property." · Section 106-216 outlines Conditions for approval: ~ That the specific use will be compatible with and not injurious to the use and enjoyment of other property, nor significantly diminish or impair property values within the immediate vicinity. ~ That the conditions placed on such use as specified in each district have been met by the applicant. ~ That the applicant has agreed to meet any additional conditions imposed, based on specific site constraints, and necessary to protect the public interest and welfare of the community. 2 The- stated conditions foru approval of a SCUP are' listed in every Staff Report going before- the Planning and Zoning Commission to remind them about the criteria for recommendations of approval. There are similar conditions set up for the granting of special exceptions and variances being reviewed by the Zoning Board of Adjustment. The fIrst stated condition, regarding specifIc use being compatible with and not injurious to the use and enjoyment of other property is, of course, highly subjective and normally the point of contention in cases under protest. In these situations, the Planning and Zoning Commission includes additional conditions to mitigate the perceived impact on use and value of property, as was done for SCUP 07-001. Once again, however, any draft SCUP being considered may be modifIed by Council. ORDINANCE NO. 1501- '" S 1-1)%/ d AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, CHAPTER 106, MORE COMMONLY REFERRED TO AS THE ZONING ORDINANCE OF THE CITY OF LA PORTE, BY GRANTING A SPECIAL CONDITIONAL USE PERMIT #SCU07-001 FOR THAT CERTAIN PARCEL OF LAND DESCRIBED AS FOLLOWS, TO-WIT: 1.93 ACRE TRACT OF LAND BEING TR 394A, LA PORTE OUTLOTS, ENOCH BRINSON SURVEY, ABSTRACT- 5, LA PORTE, HARRIS COUNTY, TEXAS FOR THE PURPOSE OF FFA AND 4-H PROJECTS IN A LARGE LAOT DISTRICT (LL) ZONE; MAKING CERTAIN FINDINGS OF FACT RELATED TO THE SUBJECT; 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 Council of the City of La Porte hereby finds, determines and declares that heretofore, to-wit, on the 18th day of January, 2007, at 6:00 p.m. a Public Hearing was held before the Planning and Zoning Commission of the City of La Porte, Texas, pursuant to due notice as required by the Open Meetings Law, Chapter 551, Texas Government Code, to consider the question and the possible reclassification of the zoning classification of the hereinafter described parcels of land. There is attached to this Ordinance as Exhibit "A", and incorporated by reference herein and made a part hereof for all purposes, a copy of Notice of Public Hearing, which the City Council of the City of La Porte hereby finds was properly mailed to all owners of all properties located within two hundred feet (200') of the properties under consideration. "Section 2. The publisher's affidavit of publication of notice of said hearing is attached hereto as Exhibit "B", incorporated by reference herein and made a part hereof for all purposes. "Section 3. On January 18, 2007, the Planning and Zoning Commission of the City of La Porte met in regular session to consider changes in classification, which were the subject of such public hearing. The City Council of the City of La Porte is in receipt of the written recommendations of the City of La Porte Planning and Zoning Commission, by letter dated on the 22nd day of January, 2007, a true copy of which letter is attached hereto as Exhibit "C", incorporated by reference herein and made a part hereof for all purposes. ORDINANCE NO. 1501-N5 Page 2 "Section 4. Subsequent to receipt of the recommendation of the City of La Porte Planning and Zoning Commission, the City Council of the City of La Porte called a public hearing on the proposed classification changes and the recommendation of the Planning and Zoning Commission on the 1ih day of February, 2007, at 6:00 p.m., and pursuant to due notice, to consider the recommendation of the Planning and Zoning Commission regarding the possible reclassification of the zoning classification of the hereinafter described parcels of land. There is attached to this Ordinance as Exhibit "0", incorporated by reference herein and made a part hereof for all purposes, a copy of the notice of public hearing. "Section 5. The publisher's affidavit of publication of notice of said hearing is attached hereto as Exhibit "E", and incorporated by reference herein and made a part hereof for all purposes. "Section 6. The conditions of the said Special Conditional Use Permit are as set forth in the incorporated terms of the Special Conditional Use Permit, a true copy of which is attached hereto as Exhibit "F". The description of said parcels of land classified pursuant to said Special Conditional Use Permit is as follows, to-wit: 1.93 acre tract of land located at 11006 North Avenue P; being TR 394A, La Porte Outlots, Enoch Brinson Survey, Abstract-5, La Porte, Harris County, Texas. "Section 7. The City Council of the City of La Porte hereby finds, determines, and declares that all prerequisites of law have been satisfied and hereby determines and declares that the amendments to the City of La Porte Zoning Map and Classification contained in this Ordinance as amendments thereto are desirable and in furtherance of the goals and objectives stated in the City of La Porte's Comprehensive Plan. "Section 8. 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 ORDINANCE NO. 1501- liS- Page 3 Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. "Section 9. This Ordinance shall be in effect from and after its passage and approval. Passed and approved this the day of _, 2007. CITY OF LA PORTE By: ALTON PORTER, Mayor ATTEST: By: MARTHA GillETT, City Secretary APPROVE~ . By: ~WT~ ~ ASKINS, Assistant City Attorney -r; b/~) :2j1~!PD /} {a /(rOO-; /f bl-tJ d-j2M ;;~f)' ( CL THE STATE OF TEXAS COUNTY OF HARRIS CITY OF LA PORTE NOTICE OF PUBLIC HEARING In accordance with the provisions of Section 106-171 of the Code of Ordinances of the City of La Porte, 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 18th day of January, 2007, in the Council Chambers of the City Hall, 604 West Fairmont Parkway, La Porte, Texas. The purpose of this hearing is to consider Special Conditional Use Permit Request #SCU07-001, for 1.933 acre tract ofland being TR 394A, La Porte Outlots, City of La Porte, Harris County, Texas. The property is located at 11006 North Avenue P. Allan & Shelly Rankin, is seeking approval of a permit for proposed designation of 4-H and FFA project at 11006 North P Street. A Special Conditional Use Permit is required for the project site to be located within Large Lot District (LL) as per Section 106-416 of the Code of Ordinances. A regular meeting of the Planning and Zoning Commission will follow the public hearing for the purpose of acting 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 will be required to sign in before the meeting is convened. CITY OF LA PORTE Martha Gillett, TRMC, CMC City Secretary A quorum o/City Council members may be present and participate in discussions during this meeting, however, no action will be taken by Council 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 the City Secretary's office at (281) 471-5020 or TDD Line (281) 471-5030 for further information. ~.i~J;, ~ ~,:~ln... j\ ~~~ .,..,..,.~" _A :' 1I11::;,IIl;lC:lrJfl9 " .IS, Iqconsloer ;",Sp~,qiafi'-P9nd,!!i9ria,J,'" Use _ _ il~~'!1iI~ 281 471 123 -,.",!y.,~=". ~....,J:iams Fax 281-471-5'(j~Sg~~&{ fieJprp~~~' .. . . ..;I,~ilij - re SWTtl'"T'ff;>iLffAP<<>- ~ ... ........ l~~~~t~Ii{~~] 6"'1 Th. __uuu:.... . B:---------- " eN; . , . 820 S. 8th Street La Porte, Texas 77571 City of La Porte Cou nty of Harris State of Texas Before me, the undersigned authority, on this date came appeared Lisa Godfrey, a duly authorized representative of Bayshore Sun, a semi-weekly newspaper published and gen distributed in the City of La Porte, Harris County, Texas and after being duly sworn, swears the attached notice was publish The Bayshore Sun dated ./ ~ ~ 3 J ~o y ~ &L~J Lisa Godfrey Sworn and subscribed before me this ~/l<A""W~_ ,2007. ~nJr~kg( Karolyn Kellogg Notary Public , Harris County, Texas My Commission Exprires April 11 , 2010 , '~ fJ!J--1 i E~:r{ City of La Porte Established 1892 January 22, 2007 Hon. Mayor Alton Porter and City Council City of La Porte Re: Special Conditional Use Permit #SCU07-00I Dear Mayor Porter and Council: The La Porte Planning and Zoning Commission, during a regular meeting on January 18,2007, considered Special Conditional Use Permit #SCU07-00I. The applicants, Allan and Shelly Rankin, seek approval to allow FF A & 4-H projects to be located at 11006 North Avenue P within the Large Lot District (LL). The Planning and Zoning Commission, by a unanimous vote, recommends that City Council consider approval of Special Conditional Use Permit #SCU07 -001 with the following conditions: 1. SCU#07-00 1 is specifically limited to FF A, 4-H projects. 2. Project will be limited to eight (8) animals at a time. 3. Project is agricultural in nature and not for commercial purposes. 4. Project site, including bam, is kept clean and sanitized per health and safety standards. 5. On-site records are kept to help ensure proper treatment and timely dissemination. 6. Follow preventive health measures and proper vaccine precautions. 7. Ensure timely manure removal from the facility to control flies and odors, to avoid potentially harmful residue, which could pose a health hazard to humans. 8. En~ure the run-off from the animal wash area stays on the property and does not flow towards adjoining properties. 9. Annual Certificate of Compliance with safety standards shall be applicable. 10. This permit will expire June 2010. 11. The Developer shall comply with all applicable laws and ordinances of the City and the State of Texas ~SpeCtfullY Submitted, Pat Muston Chairperson, Planning and Zoning Commission c: John Joerns, Interim City Manager Clark Askins, Assistant City Attorney Planning and Zoning Commission 604 W. Fairmont Pkwy. · La Porte, Texas 77571 · (281) 471-5020 ~.#.~ H~'"1!~"~ .~"f '~~~ii~t;.:f-D; ~~: \ ,) THE STATE OF TEXAS COUNTY OF HARRIS CITY OF LA PORTE NOTICE OF PUBLIC HEARING In accordance with the provisions of Section 106-171 of the Code of Ordinances of the City of La Porte, and the provisions ofthe 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 12th day of February, 2007, in the Council Chambers of the City Hall, 604 West F airmont Parkway, La Porte, Texas. . The purpose of this hearing is to consider Special Conditional Use Permit Request #SCU07-001, for 1.933 acre tract of land being TR 394A, La Porte Outlots, City of La Porte, Harris County, Texas. Allan & Shelly Rankin, are seeking approval of a permit for FF A and 4-H project site at 11006 North P Street. As per Section 106-416 of the Code of Ordinances, a Special Conditional Use Permit is required for the project to be located within Large Lot District (LL). A regular meeting of the City Council will follow the public hearing for the purpose of acting 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 will be required to sign in before the meeting is convened. CITY OF LA PORTE Martha Gillett, TRMC, CMC City Secretary A quorum of City Council members may be present and participate in discussions during this meeting, however, no action will be taken by Council 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 the City Secretary's office at (28]) 47] -5020 or TDD Line (28]) 47]-5030for further information. '~_' : . ~ "~'''';N'''-'' " ."". II"" ~,"l':it ,0, -~~Q.~!i &e.~..;,~t" !'"i City of La Porte County of Harris State of Texas 820 S. 8th Street La Porte, Texas 77571 Th..m... ........ ... eB Before me, the undersigned authority, on appeared Lisa Godfrey, a duly authorized r Bayshore Sun, a semi-weekly newspaper pu distributed in the City of La Porte, Harris Co after being duly sworn, swears the attached n The Bayshore Sun dated J-~t/--D? , ~&d~ Lisa Godfrey Sworn and subscribed before me this C)f/YIA" /"VI< J~007. 2J/l &,i ~6~ day of arolyn Kellogg NotaryPublic Harris County, Texas ~JJ1'" r.t~I"'Ut."'" '/i{.'" ~ .f~;.-! - :'*1 ~< ..<<1 "i~f:lir:.1)""- KAROLYN KElLOGG MY COMMISSION EXPiRES Apri 11, Z,)10 .,,~ I ~ ~ ~~...';. My Commission Exprires April 11, 2010 " 'r City of La Porte Special Conditional Use Permit # SCU 07-001 This permit is issued to: Shellv and Allan Rankin. (Derrick Rankin. son) Owner or Agent 11006 North Avenue P. La Porte TX 77571 Address For Development of: FFA & 4-H Proiects Development Name 11006 North P Avenue Address Legal Description: TR 394 A. La Porte Outlots. City of La Porte. Harris County. Texas. Zoning: Larqe Lot District (LL) Use: FFA & 4-H (Livestock Proiects) Permit Conditions: 1. SCU#07-001 is specifically limited to FFA, 4-H projects. 2. Project will be limited to eight (8) animals at a time. 3. Program is agricultural in nature not for commercial purposes. 4. Project site including barn is kept clean and sanitized per health and safety standards. 5. On-site records are kept to help ensure proper treatment and timely dissemination. 6. Follow preventive health measures and proper vaccine precautions. 7. Ensure timely manure removal from the facility to control flies and odors, to avoid potentially harmful residue which could pose a health hazard to humans. 8. Ensure the run-off from the animal wash area stays on the property and should not flow towards adjoining properties. 9. Annual Certificate of Compliance with safety standards shall be applicable. 10. This permit will expire June 2010. 11. The Developer shall comply with all applicable laws and ordinances of the City and the State of Texas. Validation Date: Director of Planning City Secretary "~c-__ '_~_ ~~.~~' '0'" ~'i~,i-~~ ill ~~_.;;:;" __ ~ _ l.: ,,~~"'" . Staff Report January 18,2007 Request: Request Bv: Requested For: Present Zonin2: Requested Use: Back2round: Special Conditional Use Permit #SCU07--001 Special Conditional Use Permit for proposed Future Fanners of America Program (FFA). Allan and Shelly Rankin r/o 11006 North Avenue P. 1.93 acre tract of land being TR 394A, La Porte Outlots, City of La Porte, Harris County, Texas. Large Lot Residential (LL) Continuing education in the ownership and care oflivestock projects. FF A is a dynamic, student-led leadership development organization for students of agricultural education. The FF A changes lives and prepares students for premier leadership, personal growth and career success. Future Fanners of America is the official name of the organization. Agriculture is much broader than farming and ranching. Members study things such as horticulture, aquaculture, food sciences, accounting, wildlife management, mechanics and engineering. Regardless of an FF A member's career choice the FF A provides opportunities to build and apply math, science, technology and leadership skills to their life. The FF A is an integral part of the school's agricultural science program. Each local program is led by an agricultural science teacher who works for the school. FF A members apply what they learn in the classroom in FF A activities through school activities. FF A activities are an outgrowth of the classroom and supervised independent enterprises and projects. Every FF A member must have a supervised agricultural experience program (SAE). SAE is a project or enterprise that gives members hands- on training and a chance to apply what is learned in the classroom. Livestock projects are very popular, but there are a lot of options: placement in an agricultural job, internships, experimental work in agricultural science, horticultural projects and crop projects. The applicant's son, Derrick Rankin, a participant of the La Porte FF A Chapter at La Porte High School and an active member of the La Porte 4-H Club, is proposing to house animals for livestock projects at the facility. The subject property is located at 11006 North Avenue P. A I-story metal buildinglbarn is located at least 100 ft. away from the principal building. Approximately a I-acre tract of land is undeveloped with a pond in the rear of the subject tract. The zoning designation of the property in question is Large Lot Residential (LL). FFA & 4-H programs are classified as conditional use per Section 106-416 of the City's Code of Ordinances. SCU07 -001 1/18/07 (P&Z) Page 2 DO Analvsis: Conclusion! Recommendations: Section 106-217 establishes the following review criteria and conditions for approval of Special Conditional Use Permits: . That the specific use will be compatible with and not injurious to the use and enjoyment of the other property, nor significantly diminish or impair property values within the immediate vicinity. . That the conditions placed on such use, as specified in each district, have been met by the applicant. . That the applicant has agreed to meet any additional conditions imposed, based on specific site constraints necessary to protect the public interest and welfare of the community. The proposed use would have some impact on the surrounding properties. Traffic flow within and between neighborhoods and throughout the community should not be affected by the proposed use. Existing roads are adequate to support the said project. Staff has reviewed existing facilities and services for each of the component of the utility system for the proposed development. Existing water is adequate for potable and fire protection. Sanitary sewer is available to the property. Storm drainage is not affected by the proposed use. The property abuts Harris County Flood Control District's drainage channel to the south. Staff has found the request satisfies applicable Ordinance requirements. The request is compatible with the goals and objectives of the Comprehensive Plan. The specific use should be compatible with and not injurious to the use and enjoyment of other property, nor significantly diminish or impair property values within the immediate vicinity. Staff recommends approval of Special Conditional Use Permit #SCU07-001 with the following conditions: . SCU#07-001 is specifically limited to the FFA & 4-H programs. . Program is agricultural in nature not for commercial purposes. . Project site including barn is to be kept clean and sanitized per health and safety standards. . On-site records are kept to help ensure proper treatment and timely dissemination. . Follow preventive health measures and proper vaccine precautions. . Ensure timely manure removal from the facility to control flies and odors, so that it does not have potentially harmful residue which could pose a health hazard to humans. SCU07-001 1/18/07 (P&Z) Page 3 of3 . Annual Certificate of Compliance with safety standards shall be applicable. . The applicant shall comply with all applicable laws and ordinances of the City and the State of Texas. Options available to the Commission are: . Recommend to Council approval of this SCUP with additional conditions. . Recommend to Council denial of this SCUP. . Continue the public hearing at the Commission's next regular meeting to allow additional testimony and further study of this item. This results in tabling any action on this item. AMeeting of the La Porte ~:J 18, 2007 ate 0 Meeting) to Cons ider RECENED JAN 1 5 2007 PU\NN\NG DEPT. pl~nn1np' & Zonin$1; Commission (Type of Meeting) Scheduled for Special Conditional Use Permit (SCU# 07-001) (Type of Request) I have received notice of the above referenced public hearing. I am in FAVOR. of granting this request for the following reasom: I am OPPOSED to gr:mting this request for the following reasom: ~~ . S:, 6- ~z-.Z; 6f.~- f ~k ~cf~~t; ~~q/~ / :L t1 tJ Ie :d-- ~ ~ _ j / ;3.tJ Z. Z. ~ 'i?JCY2 g#-t M: ~c!e ~. /#t';I, --iWt ~ ;Wb- 7 ~ %c d71 _~:r- AMeeting of the La Porte Pbnnmg & Zoning Commission (Type of Meeting) Scheduled for "".rC'Lit(rn t\t'L~VCtJ JAN (I g 2007 ~ 18, 2007 ate 0 Meeting) DOL f\NI\!li\!('; n!=PT f rh'i; 'n!'{~.J ,""0-1 i. to Cons ider Special Conditional Use Permit (SCU# 07-001) (Type of Request) I have recerved notice of the above referenced public hearing. I am in FAVOR of grinting this request for the following reasonc;: ../) I am OPPOS to granting this request for the following reasonc;: ~ ~U,Q[ i~J PrJo{"' bo.-rvv (Y\Q~<"v<t<2..V1ai/\.C-.l;(.) S\Y\..e.-L l) '0D\~~.\/~~e~(R..e..~r'b~.Yl, e..{' ~\b~r+i \}alu12s- Fl L~$ \ l.ilJ\,s.ov\i-\:o,{'~ <2.DV\.dc-ti:Ct1cs Gqrr~W- %.fY\C'TH ~ (pbse printJ_. l,{ ~':l~ Signature I 0 q ~ 0 N.. A\l -'<.. P Address La PDV-t~,\>G-ll<;7 , City, State, Zip AMeeting of the La Porte Pbnninr. &: Zo~ Commission (Type of Meeting) Scheduled for i~"\ 1 S ': '! JAN 1 7 2007 :!:, ~:J 18,2007 ate 0 Meeting) to Consider Special Conditional Use Permit (SCV# 07-001) (Type of Request) I have received notice of the above referenced public hearing. I :un in FAVOR of granting this request for the following reasons: I am OPPOSED to granting this request for the following reasons: /17/ f,-.J;;:-,t; ;f.NO ~ f}~4-L-l f#'l/IlfiM 1ft-o.sC-Jf/YJ /lL.<- L 1Jf y'~~ I Wi/If 11f;; .f~EtL--- /I/VtJ ?II,E- ~LI;r:-J /fNtJ tJ,t:. tJJ:L.ft -'j1:;t;.(/ /r L-/"<.{?O ( , SfrP 4-Fr;:..,L 1l!1i Yt:;9?- p.,e;;UJ,..!D wE tl/~/V/ t~J;:Jt/& ,1 e!J0/l1~ 61r /V~"1/ .r ( 0/,/'1 G tD Sj~l' ?t..- dV~ ~/# J1)() lv$ jZf;/1Jff ~ ..Jrff~'/O ;0..e /T WlrJl.>~1 ~ r/6 fTT 10 ft~/~:y::r \&"..e,.vdN' - J;,J!/-m)/v' /I 0 () Z N r / Name (Pn rint) . Address ' :f ' [1- Adz: ,7)c 1'7.;- / / Gty, State, Zip / I AMeeting of the La Porte Pbnninr. & Zo~ Commission (Type of Meeting) Scheduled for ",; l .'J ~.....:... ; ~:J 18, 2007 ate 0 Meeting) to Consider , ,) JAN 1 7 ')~07 I': ' ...U Special Conditional Use Permit (SQJ#07-001) (Type of Request) I have received notice of the above referenced public hearing. I am in FA VCR of granting this request for the following reasons: I am OPPOSED to granting this request for the following reasons: ,- /i:R. t),1)'0,( tt'1 c'rnlfTi'I1( PCoI'L a~ ftm;y ,h{,JP ttb ~Z; ~ ~t ~ e~ ' A 1/\ C; t1.f.f2.,~ tJ/ C OPl c/ rr'J~ ,q '^j'JoJof ~(' 'ts7J>tr' . ,7 ?a- (2~ a~ !OC?27 Al~- L.- Address {cflofTe ~ 77~71 City, State, Zip el/09/2807 14:15 281S308852 el/0S/2~~7 11:17 7136440356 s mOR ENG mE C:C BABE '}O~~6CN AGENCY !-'Al.]t. tIll tll PAGE al A~eeting of the La PotU! i P"~ Br: ~ Cbmwissm : ("I7~ ~ I ScbedWed f0r- i JIIftlUj 11, 'l:ril ~~ 1D o,.mider ,";:3 "',_I I ~ ." ~ , JAN 1 7 2.007 \ ~ \ ... ~~~'P~~JSCUlW:~OC'I') : ot F.eques....J . I 'Lf r L I L I _ ! hive ~ ~_r.J. ~- ~ rd~..1UCl. p'.lb-lic be-~, ....... . . I am ic J<I,v~ oE g~ this ~ for w followiug ~~; , :.5 ~':';r~~'~... r am OPPOSED 'CO ~ d1is. req,~ focthe fuil~ ;easott$: --r~~ hl~~~' c..Au.~0r4n 1"\oo\''!" v..s.E : fUl,....~ ~'l)O~l~..,. "" '" -.W 6?' u.... w t1- ::\ cH-f& A N Q1;, A,I , vE: J.!!"l.~t- T I>.J ...1~X I.o\~ ~F rt\'{ .;;~~"!'~~'C>. ::r~E: CC""!\'T\N~ O,'OoR. ..~ t:",-t~$. , jQ.~",~" mLr~o i"I"\ i ~N~"; to..\(.. "'^'i ~~l(.'t~O ~ 'Vp:~)l- . K,IEILH SINoR ~ ~~-~ ~,J. A-ve--. P Adt:bus L 4 f1",. "fe:;.. T~ 73 s 71 CU:y, s-. Zip \\.tt' \l,u...lC 0 P tl.I. S ~c:.. ~ ~"::. l~ Tl.Ur .DE""lIl'M\?,...t'T f,) F A. ""'..... ~lE l C, '-\-\}~ R.~~ "-,.-.l. Q ~ "'. .... ,-0. ~ III .. ~ E A........ ""'-l ~~ , ~ o..J l.. ~c. E Lrr A ~~~ t 1/3 G: tty 63-,",<) AMeeting of the La Porte Pbnninp; & Zoning Commission (Type of Meeting) Scheduled for , .. - " , " JAN 1 '7 7"07 , ! ; , '-U ,",.' "_..1 ~:J 18, 2007 ate Meeting) to Cons ider Special Conditional Use Permit (Sa;, 07-001) (Type of Request) I have received notice of the above referenced public hearing. I am in FAVOR of gr.uning dUs request for the following reasons: I am OPPOSED to granting this request for the following reasons: 7:' :r;s r /l1.ovd:.2'J I.v/O /'hi:'7q, A(r~-<../ ;frt.i::./'t vv/II f ~ '-b i"-'- (i-. L: II" I.-S Iv.:. t h. _-l f /(. ft- ~ 'J A-,e.. ~ &v(' ,,, / (~ Cv i1&/A/v/ ~ h... vi- 14. tJ~! f/ <- '--/ {/ (..- ^ ,,/"--0 /' '--- 'f:\ ! r- oLJa/1I'e(' Name (please print) ~ Signature //10& AI r . .4 Address h /b/-k/ /iYJ;5i '7 7) 71 Gti, State, Zip . AMeeting of the La Porte Pbnninp; & Zoning Commission (Type of Meeting) Scbedwed for I .1 ~d 18, 2007 ate 0 Meeting} to Consider ; JAN 1 ,.., """0- u LU I '--- ..,:-- .--- Special Conditional Use Permit (SCU# 07 -DOt) (Type of Request) I have received notice of the above referruced public hea....llig. I am in FAVOR of gr.utting this request for the following reasons: /' ."~''''''''''''-'~ \,,,/ I ~~ this request for the following reasons: ~VVGC, ~'O -J 0;: \/Z-C?tS'1\"'-( '0/:x"v c=.. S ~ e:. Xc.GG.-::~ ",\7i-'t=j:" 1<:- 1 A...X;~SG. 00 v- ~->7nec.I' (-:..~/.:~-. A,'- JC:' \C~_ _ .) 1" uc..." \ ~ ---=~ u 0 (' _0 VV\ Wl (hlL.JA~ S h-\Gu0'J ~G f:;>..c..c c~ ~ . C ~I(.CS E. /V\CCLAt-:J Name (please print) C . ~ ., VV\C..G- -... Signature ~ ll'O\ ;...) '~ Address . LI'~VCI-f",G. " X - 7751 \ City, State, Zip c- ::>. . REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Februarv 26. 2007 Appropriation Requested By: .John .JofOrm: Source of Funds: Department: .\dmiAi~tn1tigA Account Number: Report: Resolution: Ordinance: Amount Budgeted: Amount Requested: Exhibits: Budgeted Item: YES NO SUMMARY & RECOMMENDATION Last Council meeting Interim City Manager, reminded Council of scheduled vacation (March 9-19,2007). Regular Council meeting date is March 12,2007. This agenda item is to receive direction from Council regarding meeting dates. If Council considers March 5, 2007 as an alternate date please note that a La Porte Development Corp. (4B) meeting is also planned for that evening. Council could, of course, keep the meeting date and duties could be delegated or cancel the March 12 meeting. Action Required bv Council: -PI? Date - - - A REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Februarv 26. '7 1 Requested By: w.y.~ Department: Planning Dept. Budeet Source of Funds: NI A Account Number: N/A Report: x Resolution: Ordinance: Amount Budgeted: N/A Exhibits: Council Policy, Water Service Outside City Limit La Porte Travel Plaza Site Plan Waterline Extensions Exhibit Amount Requested: ~V i\. Budgeted Item: YES NO SUMMARY & RECOMMENDATION Mr. A.J. Sidiki, President of Sun coast Group has approached the City for a "temporary" waterline extension to serve the La-Porte Travel Plaza at 9119 S.H. 225 (see Exhibit "A"). Construction of the facility is nearing completion and scheduled to open soon. However, the site was represented to the buyer as having water available and, therefore, was designed and constructed without obtaining the necessary agreements required for water service from the City. Staff recently met with Mr. Sidiki to consider available options for ''temporary'' water service to the site (assuming adequate easements are available or verified) while arranging for a permanent solution to the ongoing water service issues in the area. As a result, Suncoast Group has agreed to execute an Industrial District Agreement (IDA), Water Service Agreement (WSA) and Utility Extension Agreement with the City to obtain water service to the site. However, since La Porte Travel Plaza was constructed without adherence to rules and regulations of the Council adopted polices, IDA, WSA, or Utility Extension Agreement (UEA), the site does not conform to the following: . Dedicated 50' landscape easement along entire roadway frontage (Re: IDA Exhibit "C", Item 2c); . Landscaping to be installed along Company's existing developed frontage (Re: WSA "Additional Requirements, Item 2 - "Beautification Efforts"). . "Temporary" waterline extension does not meet regulations for Utility Extension Agreement. City will not assume ownership and maintenance of extension (Re: UEA, Item 7). . Coordination of drainage facilities and Storm Water Plan with HCFCD (as per WSA Exhibit "A"). In order to address these issues, Suncoast Group will: . Meet with the City to determine a "suitable landscaping alternative" as stipulated in the IDA. . pay for the construction of a "permanent" City waterline between Strang Road and Miller Cut-Off Road thereby connecting two dead~nd waterlines and alleviating current water pressure problems in the aTea. It is Staff's recommendation that Council consider modified agreements to allow a temporary waterline extension to the La Porte Travel Plaza in order to open for business while a permanent solution is engineered and constructed. The site will provide a desirable service for truck traffic along S.H. 225 and will ultimately help to alleviate truck congestion within this area of the 225 corridor. To date, Suncoast Group has not provided engineering related information to the City and must, with Staff Approval, submit engineered plans to deal with the issues and easements as stated. Action Reauired bv Council: Conduct a Workshop to consider a modified agreement allowing Suncoast Group to extend a ''temporary'' waterline for service to the La Porte Travel Plaza Truck Stop at 9119 S.H. 225 while planning for the extension of a "permanent" waterline. ~(O7 Date April 12. 1999 Page 1 of 5 REQUESTS FOR POTABLE WATER SERVICE ANDIOR SANITARY SEWER SERVICE OUTSIDE THE CITY OF LA PORTE FOR COMPANIES WITH AN INDUSTRIAL DISTRICT AGREEMENT I. General: Requests for water and sewer service outside the city limits of La Porte and within our extraterritorial jurisdiction (ET J) shall: · be initiated by formal application supplying the information on the attached. . be considered and approved by City Council on a case by case basis. · require the owner of the property to execute an Industrial District Agreement with the City. · require the owner to execute a Water and/or Sewer Service Agreement with the City. Additionally, depending on circumstances, the applicant may be required to execute a Utility Extension Agreement with the City. 1. Requests for water and/or sewer service will fall into one of two categories. · Sanitary and/or domestic needs where the estimated and contracted demand is equal to or less than the number of employees at that site times 50 gal/person/day. · Water and/or Sanitary Sewer demand is greater than the 50 gal/person/day, but less than a total demand of 30,000 gal/day. 2. Miscellaneous Requirements and Restrictions: · The City Council may also require additional requirements and restrictions as they see fit. These additional restrictions will be listed in an Exhibit "A" to the Water Sewer Service Agreement. · Specifically, in certain cases to promote various objectives, features or policies of the City the Council may require: · information on the proposed usage of the property. · certain setbacks, lot coverage, landscaping, berms, etc. for protection of adjacent property and visual enhancements along public roadways. April 12, 1999 Page 2 of 5 . additional development requirements might include pedestrian sidewalks, decorative fencing and screening. . installation of fire hydrants to improve the firefighting capabilities of an area. . for new development, the projects stormwater management plan shall be coordinated with and approved by the City and Harris County Flood Control District. 3. For proposed developments that will be subdivided into multiple lots and end users. · The applicant will be asked to provide as much information as possible to assist in the implementation of these policies including but not limited to surveys, proposed lot layout, driveways, streets, etc. Total projected water and sewer demands of the entire development. . However, each individual end user will be required to execute separate Industrial District Agreements, Water and/or Sewer Service Agreements and when necessary, a Utility Extension Agreement. II. The proposed user shall supply the following information in writing: 1. Statement of utility demands including as a minimum: · Average day demand for potable water · Peak day demand for potable water · Minimum working pressure requirements · Processes water will be used for (if applicable) · Average day demand for sanitary sewer · Peak day demand for sanitary sewer · Processes contributing to sanitary sewer (if applicable) · Number of regular and contract employees which shall be reviewed and approved by the City. 2. Certified site plan showing the total acreage of the tract including present and proposed improvements and a suitable location map of the site. In addition, the City may require the site plan to demonstrate that certain miscellaneous requirements and restrictions discussed in Section I paragraph 2 will be met. 3. The project's stormwater management plan shall be coordinated with the City and Harris County Flood Control District. The City and HCFCD may April 12, 1999 Page 3 of 5 -- require the combining of some stormwater systems to achieve a higher overall effectiveness. III. The City will determine availability of adequate utilities based on the number of employees (regular and contract) onsite times an average day demand of 50 gallons per day per employee, and/or the stated quantity of water and/or sanitary sewer for processes. Total combined water demand shall not exceed 30,000 gallons per day, total combined sanitary sewer demand shall not exceed 30,000 gallons per day If adequate utilities are available, the provisions outlined in Section III shall apply. Revised 8/7/03 Where applicable. a Company executino a Water Service Aoreement with the City shall pay a pro-rata reimbursement fee for previous installation(s) of utility main(s) extended and funded by other parties under the terms of a Utility Extension Aoreement executed between City and that party. City will collect pro- rata reimbursement fee on behalf of party based on Company's property frontaoe alono and/or usaoe of subject utility main(s). If adequate utilities are not available, potable water service shall not be recommended unless special provisions are made and approved for a utility extension of proper size to meet the present and the projected demands for municipal water service in the area. All proposed extensions shall meet the City's policy for a Utility Extension Agreement, which requires: · The Company to secure all necessary easements, rights-of-way, permits, etc., at no cost to the City. · The dedication of utility line to the City as well as other provisions. IV. Requests for potable water service by users outside the city limits of La Porte shall be subject to the following conditions: 1. Must have City Council approval. · City determines locations, line sizes and approves plans. · No outlay of City funds, other than administration of contracts and policies. · Lines to be installed in easements if installed in rights-of-way, Industry would be responsible for future relocation expenses. 2. Requires that City water be used for human consumption, washing, etc., and/or limited process water with specific approval of City Council. April 12, 1999 Page 4 of 5 3. Where required by the City (mandatory for all process type plants) a reduced pressure zone backflow preventor must be installed to protect the City from any possible cross connections. 4. When required by the City, a meter bypass will be installed. 5. All plumbing shall be permitted and shall meet applicable State and City code requirements. The City shall have the right to inspect any and all work related to the furnishings of potable water to the user. 6. The proposed user of potable water shall pay a one-time connection fee of $100.00 per employee, with a minimum of $5,000.00 and a maximum of $15,000.00. If the users total water demand is greater than the average day demand of 50/gal/employee/day, the one time connection fee shall be $2.00/gal times the total potable water demand approved with a minimum of $5,000 and a maximum of $15,000. 7. The user shall pay 150% of the water rates in effect for users within the corporate limits of the City. For water usage in excess of the average day demand, the user shall pay 200% of the water rates in effect for users within the corporate limits of the City. ,- 8. The user shall enter into a contract with the City outlining the provisions for potable water service outside the corporate limits of the City. 9. Exceptions: · Prior contracts or commitments made by the City. · City Council has right to review, modify or enter into other agreements, as it deems necessary. V. Requests for sanitary sewer service by users outside the city limits of La Porte shall be subject to the following conditions: 1 . Must have City Council approval. · City determines locations, line sizes and approves plans. · No outlay of City funds, other than administration of contracts and policies. · Lines to be installed in easements or if installed in rights-of-way, Industry would be responsible for future relocation expenses. April 12, 1999 Page 5 of 5 2. Requires that sanitary sewer be generated by typical human sanitary uses, washing, etc., and/or limited processes with specific approval of City Council. 3. All plumbing shall be permitted and shall meet applicable State and City code requirements. The City shall have the right to inspect any and all work related to the furnishing of sanitary sewer service to the user. 4. The proposed user of sanitary sewer shall pay a one-time connection fee of $100.00 per employee, with a minimum of $5,000.00 and a maximum of $15,000.00. If the users total sanitary sewer demand is greater than the average day demand of 50/gal/employee/day, the one time connection fee shall be $2.00/gal times the total sanitary sewer demand approved with a minimum of $5,000 and a maximum of $15,000. 5. The user shall pay 150% of the sanitary sewer rates in effect for users within the corporate limits of the City. For sanitary sewer demand in excess of the average day demand, the user shall pay 200% of the sanitary sewer rates in effect for users within the corporate limits of the City. 6. The user shall enter into a contract with the City outlining the provisions for sanitary sewer service outside the corporate limits of the City. 7. Exceptions: . Prior contracts or commitments made by the City of La Porte. . City Council has right to review, modify or enter into other agreements, as it deems necessary. B REQUEST FOR CITY COUNCIL AGENDA ITEM ~ ~equested By: Agenda Date Requested: Budl!et Source of Funds: Department: City O~uRdl Account Number: Report: Resolution: Ordinance: xx Amount Budgeted: Exhibits: Health and Safety Code, Chapter 823 and 826 Amount Requested: Exhibits: Memo from Animal Control Supervisor Budgeted Item: YES NO Exhibits: Proposed Creation Ordinance & Ammendment to Appointment Ordinance SUMMARY & RECOMMENDA nON Under the Health and Safety Code, Chapter 823 Animal Shelters, an advisory committee must be appointed by the governing body of the municipality to assist in complying with the requirements of Chapter 823 of the Health and Safety Code. This committee has no term limits and was apparently created a number of years ago. In discussions regarding a new facility it was decided that the Advisory Committee needed to be involved in the evaluation process. In putting the committee together it was determined that apparently the committee was formed in the past and has not been updated to the requirement for appointment by the governing body. Checking with the City Secretary's Office it was determined that there was no record of council action to create the committee and place the committee on the Committee Appointment list. It now becomes necessary to comply with the Health and Safety Code to create the Animal Shelter Advisory Committee and appoint its members. The Health and Safety Code under section 823.005 (b) indicates that the committee must be composed of at least: 1. One licensed veterinarian. 2. One municipal official 3. One person whose duties include the daily operation of an animal shelter. 4. One representative from an animal welfare organization. The committee previously appointed was in compliance with the Health and Safety Code's requirements but apparently not appointed by council. In looking at the structure of the committee the municipal official is the council appointed Rabies Control Authority, the Chief of Police, an Animal Control Officer (Clarence Anderson), a veterinarian (Donna Medford D.V.M.), and a representative of an animal welfare organization (Dan Dicker has agreed to replace Mrs. Wright). It was also determined tthe committee should also include one council person to serve on the committee for a minimum total of five members. This committee will meet at least three (3) times a calendar year and will be used to assist in the compliance of the Health and Safety Code Chapter 823 and Chapter 826 as they apply to the Animal Shelter. Attached is a copy of the Health and Safety Code, Chapter 823 and 826, the definition of the Rabies Control Authority, and the memo from the Animal Control Supervisor regarding the proposed mandatory composition of the Advisory Committee. Also submitted are two Ordinances for consideration. The first is an ordinance creating the Advisory Committee and the second an ordinance amending the Appointments Ordinance to add the committee to that ordinance and appointing its members. Action Required bv Council: Provide staff with direction Council would like to take regarding the creation of an Animal Shelter Advisory Committee John Joe f:l" L6Z Date ( ORDINANCE NO. 2007- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA PORTE ESTABLISHING AN ANIMAL SHELTER ADVISORY COMMITTEE IN ACCORDANCE WITH SECTION 823.001 OF THE TEXAS HEALTH AND SAFETY CODE; CONTAINING 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. As required by Section 823.005 of the Texas Health and Safety Code, the City Council of the City of La Porte does hereby establish an Animal Shelter Advisory Committee, to be composed of no less than five (5) members who shall serve without term and at the pleasure of City Council, and which positions shall be comprised of 1) the Chief of the La Porte Rabies Control Authority, or his designee; 2) a state certified Animal Control officer employed with the City of La Porte and whose duties include the daily operation of the La Porte animal shelter; 3) a veterinarian; 4 ) a representative from an animal welfare organization; and 5) a member of the La Porte City Council. The Animal Control Advisory Committee established herein shall meet at least three times within each calendar year. Section 2. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict only. Section 3. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this Ordinance shall, for any reason, be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, and it is hereby declared to be the intention of this City Council to have passed 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 Ci 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 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 upon its passage and approval. PASSED AND APPROVED, this ____ day of March, 2007. CITY OF LA PORTE By: Alton E. Porter Mayor ATTEST: Martha A. Gillett City Secretary 2 APPROVED: Cla<<~s7 ~~ Assistant City Attorney ORDINANCE NO. 2004-2782-R AN ORDINANCE APPOINTING MEMBERS TO VARIOUS BOARDS, COMMISSIONS, AND COMMITTEES, OF THE CITY OF LA PORTE; PROVIDING A SEVERABILITY CLAUSE; CONTAINING A REPEALING 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: . Indicates reappointment Section 1. The City Council of the City of La Porte hereby makes the following appointments to the Airport Advisory Board for the City of La Porte Municipal Airport, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: ...- Position 1. - Debra Rihn Position 2. - Nick Hooke Position 3. - *Hector Villarreal Position 4 . - * Tucker Grant Position 5. - Steve Gillett Position 6. - Eliminated by City Council on 7/13/98 by Ord. 98-2265 2007 2007 2009 2009 2007 FAA Representative William Gray No Term Airline Representative - Dan Myhaver No Term Section 2. The City Council of the City of La Porte hereby makes the following appointments to the Board of Directors of the City of La Porte Reinvestment Zone Number One, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1 Peggy Antone 2007 Position 2 *Dave Turnquist 2008 Position 3 Alton Porter 2007 Position 4 *Horace Leopard 2008 Position 5 Doug Martin 2007 Position 6 *J.J. Meza 2008 Position 8 *Chester Pool 2008 The City Council of the City of La Porte hereby ratifies the following appointments by La Porte Independent School District and Harris County: Position 7 Dr. Say (LPISD) 2007 Position 9 Lindsay Pfeiffer (Harris Co.) 2007 Section 3. The City Council of the City of La Porte hereby makes the following appointments to the Chapter 172 Employee Retiree Insurance and Benefits Committee, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Citizen Position 1 George Van Dyke No Term Citizen Position 2 Steve Valerius No Term Retiree Participant - Sammy Jacobs No Term Employee Participant - Karen Beerman No Term Finance Staff Michael Dolby No Term H.R. Staff Robert Swanagan No Term Legal Staff Clark T. Askins No Term Alternate Pos. 1 Matt Daeumer No Term Alternate Pos. 2 Julie Graham No Term ,.'~- Alternate position 1 may participate in all meetings of the committee but is entitled to vote only in the absence of a regular member ; Alternate position 2 may participate in all meetings of the committee but is entitled to vote only in the absence of a regular member, where Alternate Pos. 1 member is not present, or where more than one regular members are absent. Section 4. The City Council of the City of La Porte hereby makes the following appointments to the Fiscal Affairs Committee, without term, or until their successors shall have been duly appointed and qualified: Date Appointed Chairman Chuck Engelken 1998 Committee Member - Barry Beasley 2004 Committee Member - Howard Ebow 1998 Alternate Member - Louis Rigby 2004 Alternate Member - Tommy Moser 2004 Section 5. The City Council of the City of La Porte hereby makes the following appointments to the Fire Code Review Board of the City of La Porte, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: District 1 Tim Bird 2008 District 2 *Jeff Brown 2009 District 3 *Woodrow Sebesta 2009 District 4 *Floyd Craft 2009 District 5 Jim Bridge 2006 District 6 Lester Clark 2008 At Large-A *Bryan Moore 2009 At Large-B Paul Vige 2008 Mayor *Lynn Green 2009 Section 6. The City Council of the City of La Porte hereby makes the following appointments to the La Porte Area Water Authority, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1 Robert Roy 2007 Position 2 Dennis H. Steger 2007 Position 3 Steve Valarius 2007 Position 4 2008 Position 5 *Paul Berner 2008 Section 7. The City Council of the City of La Porte hereby appoints the following named persons, all of whom are residents of the City of La Porte, and no more than four of whom are elected city officials or city employees, to serve as directors of the City of La Porte Development Corporation without compensation, but wi th reimbursement for actual expenses, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Chuck Engelken 2007 *Mike Clausen 2008 Tommy Moser 2007 *Bill Love 2008 Ed Matuszak 2007 * Pat Muston 2006 Trent Wise 2007 Section 8. The City Council of the City of La Porte hereby makes the following appointments to the La Porte Health Authority, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Health Authority Abdul R. Moosa, M.D. 2008 Alternate Robert D. Johnston, M.D. 2008 Medical Advisor/EMS Oscar Boultinghouse Contract Section 9. The City Council of the City of La Porte hereby makes the following appointments to the La Porte Redevelopment Authority, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1 Peggy Antone 2007 *Dave Turnquist 2008 Alton Porter 2007 *Horace Leopard 2008 Douglas Martin 2007 *J.J. Meza 2008 Dr. Say 2007 *Chester Pool 2008 Lindsay R. Pfeiffer, Chairman 2007 The City Council of the City of La Porte hereby makes the following appointments to the Main Street District Committee, an "ad hoc" committee, without term, or until their successors shall have been duly appointed and qualified: Bill Manning, Chairman No Term Robert Schlenk, Vice Chairman No Term Douglas Martin No Term Vicki Campise No Term Position 2 Position 3 Position 4 Position 5 Position 6 Position 7 Position 8 Position 9 Section 10. Paul Berner Pat Muston Gloria Lair No Term No Term No Term Brenda Brown No Term Section 11. The City Council of the City of La Porte hereby makes the following appointments to the Main Street Advisory Board, a new Board required by the Texas Historical Commission, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1- Edward Matuszak 2008 Position 2- Vicki Campise 2008 Position 3- Bill Manning, Jr. 2008 Position 4- Leandro Suarez 2009 - Position 5- *Jerry Carpenter 2009 Position 6- Amanda Seymore 2009 Position 7- Michaelyn Dunaway 2007 Position 8- Claire Zaborowski 2007 Position 9- Lawrence McNeal 2007 Position 10 Position 10 Eliminated by Ordinance 2004- ,- 2782-L on August 28th, 2006 by City Council action. Position 11 Position 11 Eliminated by Ordinance 2004- 2782-L on August 28th, 2006 by City Council action. There are also three (3) Ex Officio members of this Board: 1 the City of La Porte's Main Street Coordinator 2 the City Manager of the City of La Porte, or her designee the Manager of the La Porte-Bayshore Chamber of Commerce Section 12. The City Council of the City of La Porte hereby makes the following appointments to the City of La Porte Planning and Zoning Commission, for terms expiring on August 31st of the their successors shall have been duly 3 year indicated, or until appointed and qualified: Chairman District 1 District 2 District 3 District 4 District 5 District 6 Alternate 1 Alternate 2 Section 13. The City Council of the City of La Porte hereby makes the following appointments to the Southeast Texas Housing Finance Corporation Board of Directors, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Director *patricia Muston 2009 Section 14. The City Council of the City of La Porte hereby makes the following appointments to the Zoning Board of Adjustment, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: * Pa t Muston 2009 Doretta Finch 2008 *Nick Barrera 2009 *Kirby Linscombe, Jr. 2009 Dottie Kaminiski 2007 Paul Berner 2007 Claude Meharg 2008 Hal La wier 2007 Les Bird 2008 Position 1 Chester Pool 2007 Position 2 Bob Capen 2007 Position 3 Rod Rothermel 2007 Position 4 Charles Schoppe 2007 Position 5 George W. Maltsberger 2007 Alternate 1 *Lawrence McNeal 2008 Alternate 2 *Gilbert Montemayor 2008 The City Council of the City of La Porte hereby designates George W. Maltsberger, of Position 5, to serve as Chairman of the Zoning Board of Adjustment until the expiration of the member's term of appointment as designated in this section, or until their successor shall have been duly appointed and qualified. Section 15. The City Council of the City of La Porte hereby appoints the following named persons, all of whom are resident electors of the City of La Porte or non-resident individuals owning or operating a business within the City of La Porte, duly verified by proof of an applicable tax statement or utility account for such business, and each of whom the City Council deems competent to serve on such Board by virtue of their experience and training in matters pertaining to building construction, and none of whom are employed by the City of La Porte, to serve as members of the Building Codes Appeals Board for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1 Tom Campbell Position 2 Terry Bunch Position 3 Paul Larson 2007 2007 2007 Position 4 Ron Holt 2007 Position 5 Ken Schlather 2007 Position 6 John Elfstrom 2007 Position 7 Bruce Compton 2007 Section 16. The City Council of the City of La Porte hereby makes the following appointment to the Fire Fighters Pension Board of Trustees, to serve without term or until his successor shall have been duly appointed and qualified: City Council Representative *John Joerns 2007 Section 17. The City Council of the City of La Porte hereby makes the following appointments to the Animal Shelter Advisory Committee, without term, or until their successors shall have been duly appointed and qualified: Veterinarian - Donna Medford, DVM No Term Rabies Control Authority - Richard Reff No Term Animal Control Officer - Clarence Anderson No Term Animal Welfare Rep. - Dan Dicker No Term City Council member No Term - Section 18. If any section, sentence, phrase, clause or any part of any section, sentence, phrase, or clause, of this ordinance shall, for any reasons, be held invalid, such invalidity shall not affect the remaining portions of this ordinance, 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 19. All ordinances or parts of ordinances in conflict herewith are repealed to the extent of such conflict only. Section 20. The City Council officially finds, determines, reci tes, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 21. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this da y 0 f , 2007. CITY OF LA PORTE By: Alton E. Porter Mayor ATTEST: Martha A. Gillett City Secretary APPROVEt;u;D. ~ ti{ r. /'- // .. Clar T. Askins. Assistant City Attorney City of La Porte Police Department Interoffice Memorandum Date: 01112/07 To: From: Subject: Chief Reff Clarence Anderson Animal Sheltering Advisory Committee Chief, In accordance with Chapter 823 of the Texas Health and Safety Code we have to fill the following positions on the Animal Shelter Advisory Committee. These are people that I have spoken with are willing to serve on the committee. License Veterinarian Donna Medford D.V.M. Underwood Animal Clinic 2199 Underwood La Porte, Texas 77571 281-471-4864 Person whom includes daily operations of the Animal Shelter Clarence Anderson (Animal Control Supervisor) 915 South 8th La Porte, Texas 77571 281-471-3811 ext. 739 Municipal Official Chief Richard Reff (Rabies Control Authority) 915 South 8th La Porte, Texas 77571 281-471-3811 ext. 720 Representative of the Animal Welfare Organization Dana Dicker Scouts Honor Rescue Group 5110 Maxie Street Houston, Texas 77007 713-502-4002 The way the law reads it appears that City Council will have to appoint the Committee. The Committee has to meet three times a year. I have attached a copy of the law. If you have nay questions please let me know. Clarence Anderson Animal Control Supervisor J~ QUj alL.. Porte Police Dep..rlment 91~South8t1.Street L..Porte,TXT7~71 281-471-3810 Fax:281-470-1500 HEALTH & SAFETY CODE CHAPTER 823. ANIMAL SHELTERS Sec. 823.001. DEFINITIONS. In this chapter: (1) "Animal shelter" means a facility that keeps or legally impounds stray, homeless, abandoned, or unwanted animals. (2) "Board" means the Texas Board of Health. (3) "Commissioner" means the commissioner of health. (4) "Department" means the Texas Department of Health. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 823.002. EXEMPTION FOR CERTAIN COUNTIES, CLINICS, AND FACILITIES. This chapter does not apply to: (1) a county having a population of less than 75,000; (2) a veterinary medicine clinic; or (3) a livestock commission facility. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 280, eff. Sept. 1, 1991. Sec. 823.003. STANDARDS FOR ANIMAL SHELTERS; CRIMINAL PENALTY. (a) Each animal shelter operated in this state shall comply with the standards for housing and sanitation existing on September 1, 1982, and adopted under Chapter 826 (Rabies Control Act of 1981). (b) An animal shelter shall separate animals in its custody at all times by species, by sex (if known), and if the animals are not related to one another, by size. Page -1 - (c) An animal shelter may not confine healthy animals with sick, injured, or diseased animals. (d) Each person who operates an animal shelter shall employ a veterinarian at least once a year to inspect the shelter to determine whether it complies with the requirements of this chapter. The veterinarian shall file copies of his report with the person operating the shelter and with the department on forms prescribed by the department. (e) The board may require each person operating an animal shelter to keep records of the date and disposition of animals in its custody, to maintain the records on the business premises of the animal shelter, and to make the records available for inspection at reasonable times. (f) A person commits an offense if the person substantially violates this section. An offense under this subsection is a Class C misdemeanor. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 823.004. PERSONNEL TRAINING. The board shall prescribe standards and charge reasonable fees for training animal shelter personnel in animal health and disease control, humane care and treatment of animals, control of animals in an animal shelter, and the transportation of animals. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 823.005. ADVISORY COMMITTEE. (a) The governing body of a Page -2 - county or municipality in which an animal shelter is located shall appoint an advisory committee to assist in complying with the requirements of this chapter. (b) The advisory committee must be composed of at least one licensed veterinarian, one county or municipal official, one person whose duties include the daily operation of an animal shelter, and one representative from an animal welfare organization. (c) The advisory committee shall meet at least three times a - year. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 823.007. INJUNCTION. A court of competent jurisdiction may, on the petition of any person, prohibit by injunction the substantial violation of this chapter. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Page -3 - OFFICIAL TEXAS ADMINISTRATIVE CODE TITLE 25. HEALTH SERVICES PART I. TEXAS DEPARTMENT OF HEALTH CHAPTER 169. ZOONOSIS CONTROL ANIMAL SHELTERS ~169.61. Purpose. The purpose of these sections is to set standards for the training of animal shelter and animal control personnel. ~169.62. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Animal Control Officer (ACO) course - An appropriate training session administered by the department. There are three types of training: basic, advanced, and administrative. Department - The Texas Department of Health. .- Satisfactory completion - In order to satisfactorily complete an ACO course, an individual must attend all sessions and attain a passing score as set by the department on all post- course tests and/or practical exercises. ~169.63. Courses. (a) The ACO basic course gives introductory instruction in the topics listed in ~169.65 of this title (relating to Course Content)1 I (b) The ACO advanced course covers the same topics as the basic course, but at a higher level and with emphasis on verbal communication skills. (c) The ACO administrative course includes instruction in supervisory and management skills needed to implement and direct application of the concepts taught in the basic and advanced courses. Zoonosis Control Division - 9/04 Chapter 823 Rules - 1 ~169.64. Prerequisites for Course Attendance. (a) Basic, advanced, or administrative. A person must apply for attendance with the Regional Zoonosis Control Program conducting the ACO course. Course enrollment will be based on space availability policies set by the region hosting the course. (b) Basic, advanced, or administrative. A fee will be charged for each person attending an ACO course. The fee will not exceed the amount equal to the cost of conducting the ACO course divided by the expected number of participants; this fee will not exceed $225. (c) Advanced. A person must have: (1) satisfactorily completed an ACO basic course and, subsequently, worked or volunteered in animal shelter/animal control activities at least 2,000 hours; and (2) provided a recommendation from the individual's supervisor, including a statement that the person meets prerequisites for course attendance. (d) Administrative. A person must provide a recommendation from the individual's supervisor, including a statement that the person meets one ofthe following prerequisites for course attendance: (1) satisfactory completion of an ACO advanced course; (2) experience in an administrative position for two years; or (3) completion of 60 hours of college credit. ~169.65. Course Content. The basic and advanced courses will include technical coverage of topics deemed pertinent to animal shelter/animal control personnel by the department's Zoonosis Control Division (ZCD) including, but not limited to, animal health and disease control, humane care and treatment of animals, control of animals in an animal shelter, and the transportation of animals. The administrative course will include instruction in supervisory and management skills needed to implement and support the concepts taught in the basic and advanced courses. Chapter 823 Rules - 2 Zoonosis Control Division - 9/04 HEALTH & SAFETY CODE CHAPTER 826. RABIES SUBCHAPTER A. GENERAL PROVISIONS Sec. 826.001. SHORT TITLE. the Rabies Control Act of 1981. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. This chapter may be cited as Sec. 826.002. DEFINITIONS. In this chapter: (1) "Animal" means a warm-blooded animal. (2) "Board" means the Texas Board of Health. (3) "Cat" means Felis catus. (4) "Commissioner" means the commissioner of health. (5) "Department" means the Texas Department of e_ Health. (6) "Dog" means Canis familiaris. (7) "Epizootic" means the occurrence in a given geographic area or population of cases of a disease clearly in excess of the expected frequency. (8) "Licensed veterinarian" means a veterinarian licensed to practice veterinary medicine in one or more of the 50 states. (9) "Quarantine" means strict confinement of an animal specified in an order of the board or its designee: Page -1 - (A) on the private premises of the animal's owner or at a facility approved by the board or its designee; and (B) under restraint by closed cage or paddock or in any other manner approved by board rule. (10) "Rabies" means an acute viral disease of man and animal affecting the central nervous system and usually ,..... transmitted by an animal bite. (11) "Stray" means roaming with no physical restraint beyond the premises of an animal's owner or keeper. (12 ) "Livestock" means an animal raised for human consumption or an equine animal. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 44, Sec. 1, eff. May 5, 1995. SUBCHAPTER B. GENERAL POWERS AND DUTIES OF BOARD AND LOCAL GOVERNMENTS Sec. 826.011. GENERAL POWERS AND DUTIES OF BOARD. (a) The board or its designee , with the cooperation of the governing bodies of counties and municipalities, shall administer the rabies control program established by this chapter. (b) The board shall adopt rules necessary to effectively ".,.-. Page -2 - administer this chapter. (c) The board or its designee may enter into contracts or agreements with public or private entities to carry out this chapter. The contracts or agreements may provide for payment by ",.- the state for materials, equipment, and services. (d) Subject to any limitations or conditions prescribed by the legislature, the board or its designee may seek, receive, and spend funds received through appropriations, grants, or donations from public or private sources for the rabies control program established by this chapter. (e) The board or its designee may compile, analyze, publish, and distribute information relating to the control of rabies for the education of physicians, veterinarians, public health personnel, and the public. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.012. MINIMUM STANDARDS FOR RABIES CONTROL. This chapter and the rules adopted by the board under this chapter are the minimum standards for rabies control. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.013. COUNTIES AND MUNICIPALITIES MAY ADOPT CHAPTER. The governing body of a municipality or the commissioners court of a county may adopt this chapter and the Page -3 - standards adopted by the board. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.014. COUNTIES MAY ADOPT ORDINANCES AND RULES. (a) The commissioners court of a county may adopt ordinances or rules that establish a local rabies control program in the county and set local standards that are compatible with and equal to or more stringent than the program established by this chapter and the rules adopted by the board. (b) County ordinances or rules adopted under this section supersede this chapter and the rules of the board wi thin that county so that dual enforcement will not occur. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.015. MUNICIPALITIES MAY ADOPT ORDINANCES OR RULES. (a) The governing body of a municipality may adopt ordinances or rules that establish a local rabies control program in the municipali ty and set local standards that are compatible with and equal to or more stringent than: (1) the ordinances or rules adopted by the county in which the municipality is located; and (2) the program established by this chapter and the rules adopted by the board. (b) Municipal ordinances or rules adopted under this Page -4 - section supersede ordinances or rules adopted by the county in which the municipality is located, this chapter, and the rules of the board within that municipality so that multiple enforcement will not occur. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.016. CONTRACTS. The governing body of a municipali ty and the commissioners court of a county may enter into contracts or agreements with public or private entities to carry out the activities required or authorized under this chapter. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.017. DESIGNATION OF LOCAL RABIES CONTROL AUTHORITY. (a) The commissioners court of each county and the governing body of each municipality shall designate an officer to act as the local rabies control authority for the purposes of this chapter. (b) Except as restricted by board rule, the officer designated as the local rabies control authority may be the county health officer, municipal health officer, animal control officer, peace officer, or any entity that the commissioners court or governing body considers appropriate. (c) Among other duties, the local rabies control authority Page -5 - shall enforce: (1) this chapter and the board rules that comprise the minimum standards for rabies control; (2) the ordinances or rules of the municipality or county that the local rabies control authority serves; and (3) the rules adopted by the board under the area rabies quarantine provisions of Section 826.045. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 44, Sec. 2, eff. May 5, 1995. SUBCHAPTER C. RABIES VACCINATIONS Sec. 826.021. VACCINATION OF DOGS AND CATS REQUIRED. (a) Except as otherwise provided by board rule, the owner of a dog or cat shall have the animal vaccinated against rabies by the time the animal is four months of age and at regular intervals thereafter as prescribed by board rule. (b) A veterinarian who vaccinates a dog or cat against rabies shall issue to the animal's owner a vaccination certificate in a form that meets the minimum standards approved by the board. (c) A county or municipality may not register or license an animal that has not been vaccinated in accordance with this Page -6 - , . section. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.0211. CONFIDENTIALITY OF CERTAIN INFORMATION IN RABIES VACCINATION CERTIFICATE; CRIMINAL PENALTY. (a) Information contained in a rabies vaccination certificate or in any record compiled from the information contained in one or more certificates that identifies or tends to identify an owner or an address, telephone number, or other personally identifying information of an owner of a vaccinated animal is confidential and not subject to disclosure under Chapter 552, Government Code. (b) The information may be disclosed only to a governmental entity for purposes related to the protection of public health and safety. A governmental entity that receives the information, including a county or municipality that registers dogs and cats under Subchapter D, must maintain the confidentiality of the information, may not disclose the information under Chapter 552, Government Code, and may not use the information for a purpose that does not directly relate to the protection of public health and safety. (c) A person commits an offense if the person distributes information that is confidential under this section. An offense Page -7 - under this subsection is a misdemeanor punishable by: (1) a fine of not more than $1,000; (2) confinement in the county j ail for not more than 180 days; or (3) both the fine and confinement. Added by Acts 1999, 76th Leg., ch. 1069, Sec. 1, eff. 1999. Amended by Acts 2005, 79th Leg., ch. 1235, Sec. Sept. 1, 2005. Sec. 826.022. VACCINATION; CRIMINAL PENALTY. Sept. 1, 1, eff. (a) A person commits an offense if the person fails or refuses to have each dog or cat owned by the person vaccinated against rabies and the animal is required to be vaccinated under: (1) Section 826.021 and board rules; or (2) ordinances or rules adopted under this chapter by a county or municipality within whose jurisdiction the act occurs. (b) An offense under this section is a Class C misdemeanor. (c) If on the trial of an offense under this section the court finds that the person has been previously convicted of an offense under this section, the offense is a Class B misdemeanor. "..- Page -8 - Acts 1989, 71st Leg., ch. 678, Sec. 1, eft. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 44, Sec. 3, eff. May 5, 1995. Sec. 826.023. USE AND SALE OF RABIES VACCINE. (a) Rabies vaccine for animals may be administered only by or under the direct supervision of a veterinarian. (b) A veterinarian may not administer or directly supervise the administration of rabies vaccine in this state unless the person is: (1) licensed by the State Board of Veterinary Medical Examiners to practice veterinary medicine; or (2) practicing veterinary medicine on an installation of the armed forces or National Guard. (c) A person may not sell or distribute rabies vaccine for animals to any person except a licensed veterinarian or to a person working in a veterinary clinic who accepts the vaccine on behalf of the veterinarian. (d) This section does not prohibit a pharmacy licensed by the Texas State Board of Pharmacy from supplying rabies vaccine for animals to a licensed veterinarian. (e) This section does not prohibit a veterinarian licensed by the State Board of Veterinary Medical Examiners from selling Page -9 - or dispensing rabies vaccine to an individual with whom the veterinarian has a veterinarian-client-patient relationship as described by Chapter 801, Occupations Code, for the sole purpose of allowing that individual to administer the rabies vaccine to that individual's own livestock. Acts 1989, 71st Leg., ch. 678, Sec. 1, eft. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 44, Sec. 5, eft. May 5, 1995; Acts 2001, 77th Leg., ch. 1420, Sec. 14.810, eft. Sept. 1, 2001. Sec. 826.024. USE AND SALE OF RABIES VACCINE; CRIMINAL (a) A person commits an offense if the person: (1) administers or attempts to administer rabies vaccine in a manner not authorized by Section 826.023; PENALTY. (2) dispenses or attempts to dispense rabies vaccine in a manner not authorized by Section 826.023; or (3) sells or distributes rabies vaccine for animals in violation of Section 826.023(c). (b) An offense under this section is a Class C misdemeanor. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.025. PROVISION OF VACCINE AND SERUM. (a) The department may provide vaccine and hyperimmune serum in - Page -10 - accordance with board policies or procedures for the use and benefit of a person exposed, or suspected of having been exposed, to rabies. (b) In accordance with board rules and eligibility standards, the department is entitled to be reimbursed by or on behalf of the person receiving the vaccine or serum for actual costs incurred in providing the vaccine or serum. (c) At the written request of the department, the attorney general or the county or district attorney for the county in which the recipient of the vaccine or serum resides may bring sui t or start other proceedings in the name of the state to collect the reimbursement owed the department for the vaccine or - serum. (d) A suit or other proceeding may be brought against: (1) the recipient; (2) the parent, guardian, or other person legally responsible for the support of the recipient; or (3) a responsible third party. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. SUBCHAPTER D. REGISTRATION AND RESTRAINT OF DOGS AND CATS Sec. 826.031. REGISTRATION OF DOGS AND CATS BY LOCAL GOVERNMENTS. (a) The governing body of a municipality and the .- Page -11 - commissioners court of a county may adopt ordinances or rules under Section 826.014 or 826.015 requiring the registration of each dog and cat within the jurisdiction of the municipality or county. (b) A dog or cat may not be subject to dual registration. (c) The enforcing agency may collect a fee set by ordinance for the registration of each dog or cat and may retain the fees collected. The fees may be used only to help defray the cost of administering this chapter or the ordinances or rules of the enforcing agency within its jurisdiction. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.0311. CONFIDENTIALITY OF CERTAIN INFORMATION IN DOG AND CAT REGISTRY; CRIMINAL PENALTY. (a) Information that is contained in a municipal or county registry of dogs and cats under Section 826.031 that identifies or tends to identify the owner or an address, telephone number, or other personally identifying information of the owner of the registered dog or cat is confidential and not subject to disclosure under Chapter 552, Government Code. (b) The information may be disclosed only to a governmental entity for purposes related to the protection of public health and safety. A governmental entity that receives Page -12 - ,,-, the information must maintain the confidentiality of the information, may not disclose the information under Chapter 552, Government Code, and may not use the information for a purpose that does not dir~ctly relate to the protection of public health and safety. (c) A person commits an offense if the person distributes information that is confidential under this section. under this subsection is a misdemeanor punishable by: (1) a fine of not more than $1,000; (2) confinement in the county jail for not more than An offense ""~ 180 days; or (3) both the fine and confinement. Added by Acts 1999, 76th Leg., ch. 1069, Sec. 2, eff. Sept. 1, 1999. Sec. 826.032. REGISTRATION; CRIMINAL PENALTY. (a) A person commits an offense if: (1) the person fails or refuses to register or present for registration a dog or cat owned by the person; and (2) the animal is required to be registered under the ordinances or rules adopted under this chapter by a county or municipality within whose jurisdiction the act occurs. (b) An offense under this section is a Class C Page -13 - .".,.-... misdemeanor. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.033. RESTRAINT, IMPOUNDMENT, AND DISPOSITION OF DOGS AND CATS. (a) The governing body of a municipality and the commissioners court of a county may adopt ordinances or rules under Section 826.014 or 826.015 to require that: (1) each dog or cat be restrained by its owner; (2) each stray dog or cat be declared a public nuisance; (3) each unrestrained dog or cat be detained or impounded by the local rabies control authority or that officer's designee; (4) each stray dog or cat be impounded for a period set by ordinance or rule; and (5) a humane disposition be made of each unclaimed stray dog or cat on the expiration of the required impoundment period. (b) A jurisdiction may not be subj ect to dual restraint ordinances or rules. (c) The enforcing agency may adopt an ordinance setting a fee for the impoundment and board of a dog or cat during the impoundment period. The animal's owner must pay the fee before Page -14 - the animal may be released. (d) The enforcing agency shall deposit the fees collected in the treasury of the enforcing agency. The fees may be used only to help defray the cost of administering this chapter or the ordinances or rules of the enforcing agency within its jurisdiction. Acts 1989, 71st Leg., Amended by Acts 1995, 1995. ch. 678, Sec. 74th Leg., ch. 1, eff. Sept. 1, 1989. 6 , e f f. Ma y 5 , 44, Sec. Sec. 826.034. RESTRAINT; CRIMINAL PENALTY. (a) A person commits an offense if: (1) the person fails or refuses to restrain a dog or cat owned by the person; and (2) the animal is required to be restrained under the ordinances or rules adopted under this chapter by a county or municipality within whose jurisdiction the act occurs. (b) An offense under this section is a Class C misdemeanor. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. SUBCHAPTER E. REPORTS AND QUARANTINE Sec. 826.041. REPORTS OF RABIES. (a) A person who knows of an animal bite or scratch to an individual that the person could Page -15 - reasonably foresee as capable of transmitting rabies, or who knows of an animal that the person suspects is rabid, shall report the incident or animal to the local rabies control authori ty of the county or municipality in which the person lives, in which the animal is located, or in which the exposure occurs. (b) The report must include: (1) the name and address of the victim and of the animal's owner, if known; and /~ (2) any other information that may help in locating the victim or animal. (c) The local rabies control authority shall investigate a report filed under this section. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 44, Sec. 7, eff; 1995. Ma y 5, Sec. 826.042. QUARANTINE OF ANIMALS. (a) The board shall adopt rules governing the testing of quarantined animals and the procedure for and method of quarantine. (b) The local rabies control authority or a veterinarian shall quarantine or test in accordance with board rules any animal that the local rabies control authority or veterinarian Page -16 - has probable cause to believe is rabid, may have been exposed to rabies, or may have exposed a person to rabies. (c) An owner shall submit for quarantine an animal that: (1) is reported to be rabid or to have exposed an individual to rabies; or (2) the owner knows or suspects is rabid or has exposed an individual to rabies. (d) The owner shall submit the animal to the local rabies control authority of the county or municipality in which the exposure occurs. (e) A veterinarian shall quarantine an animal that: _. (1 ) (2 ) is in the possession of the veterinarian; and the veterinarian knows or suspects is rabid or has exposed an individual to rabies. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 44, Sec. 8, eff. May 5, 1995. Sec. 826.043. RELEASE OR DISPOSITION OF QUARANTINED ANIMAL. (a) If a veterinarian determines that a quarantined animal does not show the clinical signs of rabies, the veterinarian or local rabies control authority shall release the animal to its owner when the quarantine period ends if: Page -17 - (1) the owner has an unexpired rabies vaccination certificate for the animal; or (2) the animal is vaccinated against rabies by a licensed veterinarian at the owner's expense. (b) If a veterinarian determines that a quarantined animal shows the clinical signs of rabies, the veterinarian or local rabies control authority shall humanely destroy the animal. If an animal dies or lS destroyed while in quarantine, the veterinarian or local rabies control authority shall remove the head or brain of the animal and submit it to the nearest department laboratory for testing. (c) The owner of an animal that is quarantined under this chapter shall pay to the veterinarian or local rabies control authority the reasonable costs of the quarantine and disposition of the animal. The veterinarian or local rabies control authority may bring suit to collect those costs. The county in which the veterinarian is located may reimburse the veterinarian in a reasonable amount set by the county for the costs of the quarantine and disposition of an animal whose owner is unable to pay. (d) The veterinarian or local rabies control authority may sell the animal and retain the proceeds or keep, grant, or Page -18 - - destroy an animal if the owner or custodian does not take possession of the animal before the fourth day following the final day of the quarantine period. Acts 1989, 71st Leg. , ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg. , ch. 44, Sec. 9, eff. May 5, 1995. Sec. 826.044. QUARANTINE; CRIMINAL PENALTY. (a) A person commits an offense if the person fails or refuses to quarantine or present for quarantine or testing an animal that: (1) is required to be placed in quarantine or presented for testing under Section 826.042 and board rules; or (2) is required to be placed in quarantine under ordinances or rules adopted under this chapter by a county or municipality within whose jurisdiction the act occurs. (b) An offense under this section is a Class C misdemeanor. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.045. AREA RABIES QUARANTINE. (a) If rabies is known to exist in an area, the board or its designee may declare an area rabies quarantine to prevent or contain a rabies epizootic. (b) On the declaration that a quarantine exists, the board Page -19 - . . shall: (1) define the borders of the quarantine area; and (2) adopt permanent or emergency rules. (c) The rules adopted under Subsection (b) (2) may include conditions for the restraint of carnivorous animals and the transportation of carnivorous animals into and out of the quarantine area. (d) The quarantine remains in effect until the 181st day after the date on which the last case of rabies is diagnosed in a dog, cat, or other animal species that caused the board or its designee to declare a quarantine, unless the board or its designee, by declaration, removes the quarantine before that date. (e) While the quarantine is in effect, the rules adopted by the board supersede all other applicable ordinances or rules applying to the quarantine area and apply until the board or its designee removes the quarantine by declaration or until the rules expire or are revoked by the board. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Sec. 826.046. VIOLATION OF AREA RABIES QUARANTINE; CRIMINAL PENALTY. (a) A person commits an offense if the person violates or attempts to violate a rule of the board adopted Page -20 - under Section 826.045 governing an area rabies quarantine. (b) An offense under this section is a Class C misdemeanor. Acts 1989, 71st Leg., ch. 678, Sec. 1, eft. Sept. 1, 1989. Sec. 826.047. LIMITATION ON LIABILITY. A veterinarian performing duties under this chapter is not liable to the owner of an animal for the death of or injury to the animal except in a case of wilful misconduct or gross negligence. Added by Acts 1995, 74th Leg., ch. 44, Sec. 11, eft. May 5, 1995. Sec. 826.048. EXEMPTION FROM QUARANTINE REQUIREMENT FOR POLICE SERVICE ANIMALS. (a) In this section, "handler or rider" and "police service animal" have the meanings assigned by Section 38.151, Penal Code. (b) A police service animal is exempt from the quarantine requirement of this subchapter if the animal bites a person while the animal is under routine veterinary care or while the animal is being used for law enforcement, corrections, prison or jail security, or investigative purposes. If after biting the person the animal exhibits any abnormal behavior, the law enforcement agency and the animal's handler or rider shall make the animal available within a reasonable time for testing by the Page -21 - - " local health authority. Added by Acts 2001, 77th Leg., ch. 979, Sec. 2, eff. Sept. 1, 2001. SUBCHAPTER F. QUARANTINE AND IMPOUNDMENT FACILITIES Sec. 826.051. MINIMUM STANDARDS FOR QUARANTINE AND IMPOUNDMENT FACILITIES. (a) The board shall adopt rules governing the types of facilities that may be used to quarantine animals. (b) The board by rule shall establish minimum standards for impoundment facilities and for the care of impounded animals. (c) In accordance with board rules, a local rabies control authority may contract with one or more public or private entities to provide and operate a quarantine facility. Acts 1989, 71st Leg., ch. 678, Sec. 1, eft. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 44, Sec. 12, eft. May 5, 1995. Sec. 826.052. INSPECTIONS. An employee of the department, on the presentation of appropriate credentials to the local rabies control authority or the authority's designee, may conduct a reasonable inspection of a quarantine or impoundment facility at a reasonable hour to determine if the facility Page -22 - .. .,;;. complies with the minimum standards adopted by the board for those facilities. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 44, Sec. 13, eff. May 5, 1995. Sec. 826.053. HEARING. (a) A person aggrieved by an action of the department in amending, limiting, suspending, or revoking any approval required of the department by this chapter may request a hearing before the department. (b) The department shall conduct the hearing held under this section in accordance with Chapter 2001, Government Code and the department's formal hearing rules. Acts 1989, 71st Leg., ch. 678, Sec. 1, eft. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95 (49), eft. Sept. 1, 1995. Sec. 826.054. SUITS TO ENJOIN OPERATION OF QUARANTINE OR IMPOUNDMENT FACILITY. (a) At the request of the commissioner, the attorney general may bring suit in the name of the state to enj oin the operation of a quarantine or impoundment facility that fails to meet the minimum standards established by this chapter and board rules. (b) The suit shall be brought in a district court in the Page -23 - county in which the facility is located. (c) When a court issues an order to a facility to cease operation, the local rabies control authority shall remove all animals housed in the facility to a shelter approved by the department. The county or municipality within whose jurisdiction the facility is located shall pay the cost of relocating the animals to an approved shelter. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 44, Sec. 14, eff. May 5, 1995. - Sec. 826.055. QUARANTINE OR IMPOUNDMENT FACILITY; CRIMINAL PENALTY. (a) A person commits an offense if the person operates a facility for quarantined or impounded animals that fails to meet standards for approval established by: (1) board rules; or (2) ordinances or rules adopted under this chapter by a county or municipality. (b) An offense under this section is a Class C misdemeanor. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Page -24 - OFFICIAL TEXAS ADMINISTRATIVE CODE TITLE 25. HEAL m SERVICES PART I. TEXAS DEPARTMENT OF HEALm CHAPTER 169. ZOONOSIS CONTROL RABIES CONTROL AND ERADICATION ~169.21. Purpose. The purpose of these sections is to protect the public health by establishing unifonn rules for the control and eradication of rabies in the State of Texas, in accordance with Chapter 826 of the Texas Health and Safety Code. ~169.22. Definitions. The following words and tenns, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Animal - Any mammal, domesticated or wild. (2) Assistance dog - A dog that is specially trained or equipped to help a person with a physical challenge and that: (A) is used by a person with a physical challenge who has satisfactorily completed a specific course of training in the use of the dog; and (B) has been trained by an organization generally recognized by agencies involved in the rehabilitation of persons with a physical challenge as reputable and competent to provide dogs with training of this type. (3) Cat - Any Felis catus. (4) Currently vaccinated - Vaccinated and satisfying the following criteria. (A) The animal must have been vaccinated against rabies according to the label recommendations of a United States Department of Agriculture (USDA) approved vaccine. (B) At least 30 days have elapsed since the initial vaccination. (C) The time elapsed since the most recent vaccination has not exceeded the label recommendations of the vaccine. (5) Custodian - A person or agency which feeds, shelters, harbors, has possession or control, or has the responsibility to control an animal. (6) Department - The Texas Department of Health (TDH). ,.- Zoonosis Control Division - 9/04 Chapter 826 Rules - 1 (7) Dog - Any Canis familiaris, including hybrids. (8) Domestic animal - Any animal normally adapted to live in intimate association with humans or for the advantage of humans. (9) Domestic dog - Any Canis familiaris, excluding hybrids. (10) Domestic ferret - Any Mustela putoriusfuro. (11) High risk animals - Those animals which have a high probability of transmitting rabies; they include skunks, bats, species of foxes indigenous to North America, coyotes, and raccoons. (12) Housing facility - Any room, building, or area used to contain a primary enclosure or enclosures. (13) Humanely killed - To cause the death of an animal by a method which: (A) rapidly produces unconsciousness and death without visible evidence of pain or distress; or (B) utilizes anesthesia produced by an agent which causes painless loss of consciousness, and death following such loss of consciousness. (14) Hybrid - Any offspring of two animals of different species. (15) Impoundment - The collecting and confining of an animal because ofa state or local ordinance or because of a contract with a county or municipality. (16) Impoundment facility - An enclosure or a structure in which an animal is collected or confined because of a state law or local ordinance or because of a contract with a county or municipality . (17) Isolation - The separation of an animal exposed or potentially exposed to rabies. (18) Local rabies control authority - The officer designated by the municipal or county governing body under the Texas Health and Safety Code, Chapter 826. (19) Low risk animals - Those which have a low probability of transmitting rabies; they include all animals of the orders Marsupialia, Insectivora, Rodentia, Lagomorpha, and Xenarthra. (20) Observation period - The time following a bite incident during which the biting animal's health status must be monitored. The observation period for domestic dogs, cats, and domestic ferrets (only) is 10 days (240 hours); the observation period for other animals, not including those defined as high risk or low risk, is 30 days. (21) Police dog - Domestic dog that is owned or employed by a governmental law enforcement agency. Chapter 826 Rules - 2 Zoonosis Control Division - 9/04 (22) Primary enclosure - Any structure used to immediately restrict an animal or animals to a limited amount of space, such as a room, pen, run, cage, compartment, or hutch. (23) Public health region - A contiguous group of Texas counties, so designated by the board. (24) Quarantine facility - A structure where animals are held for rabies observation. (25) Quarantine period - That portion ofthe observation period during which a biting animal is physically confined for observation as provided for in 9169.27 ofthis title (relating to Quarantine Method and Testing). (26) Sanitize - To make physically clean and to destroy disease-producing agents. (27) Therapy dog - A dog that helps a person with a diagnosed emotional disorder for whom a letter has been issued by a physician stating that the removal of the animal would be detrimental to the person's emotional health. (28) Unowned animal- Any animal for which an owner has not been identified. (29) Vaccinated - Properly injected by a licensed veterinarian with a rabies vaccine licensed for use in that species by the United States Department of Agriculture. (30) Zoonosis Control Division (ZCD) - The division within the Texas Department of Health to which the responsibility for implementing these rules is assigned. (31) Zoonosis control representative - Any person employed by the ZCD. ~169.23. Information Relating to the Control of Rabies. The department's Zoonosis Control Division (ZCD) will assume the responsibility of collecting, analyzing, and preparing monthly and annual summations of rabies activity in the state. These reports will be forwarded to national, state, and municipal agencies as required, and selected statistics will be sent to veterinary medical and animal control organizations throughout the state. ~169.24. Preexposure Rabies Immunization. Preexposure rabies immunization should be administered to all individuals whose activities place them at a significant risk of exposure to rabies, in accordance with the recommendations of the CDC Immunization Practices Advisory Committee (ACIP). ~169.25. Reports of Human Exposure to Rabies. (a) Any person having knowledge of a potential rabies exposure to a human as defined in the Texas Health and Safety Code, 9826.041 will report the incident to the local rabies control authority as soon as possible, but not later than 24 hours from the time of the incident. This requirement does not apply to bites by low risk animals as defined in S 169.22 ofthis title (relating to Definitions). Zoonosis Control Division - 9/04 Chapter 826 Rules - 3 (b) The owner or custodian ofthe potentially rabid animal will place that animal in quarantine or submit it for testing as prescribed in g 169.27 of this title (relating to Quarantine Method and Testing). (c) The local rabies control authority will investigate each potential exposure and assure appropriate resolution, in accordance with gI69.27. ~169.26. Facilities for the Quarantining or Impounding of Animals. (a) Generally. (1) Structural strength. Housing facilities shall be structurally sound and shall be maintained in good repair in order to protect the animals from injury, to contain them, and to prevent transmission of diseases. (2) Water and electric power. Reliable and adequate electric power, if required to comply with other provisions of these sections, and adequate potable water shall be available. (3) Storage. Supplies of food and bedding shall be stored in facilities which adequately protect such supplies against infestation or contamination by vermin. Refrigeration shall be provided for supplies of perishable food. Non-perishable foods, such as dry food, do not require refrigeration. For example, open bags of non-perishable dry food may be stored in sealed cans, and unopened bags may be stacked on pallets or shelves with at least 12 inches of clearance between the floor and the first level. (4) Waste disposal. Provision shall be made for the removal and disposal of animal and food wastes, bedding, dead animals, and debris. Disposal facilities shall be so provided and operated as to minimize vermin infestations, odors, and disease hazards. A suitable method shall be provided to rapidly and safely remove water and other liquid waste from housing facilities. Housing facilities should be designed to have animal excreta removed through sanitary sewers, septic systems, or garbage. All closed drainage systems should be equipped with traps, vents, and acceptable drain covers to exclude rodents and prevent any backup of sewer gas and odors into the facility. (5) Washrooms and sinks. Facilities for personal hygiene, such as washrooms, basins, or sinks, shall be provided for employees. (6) Management. The manager of a quarantine facility should be either a licensed veterinarian or an individual who has satisfactorily completed an appropriate TDH training course. (7) Records. Records shall be kept on each animal processed through the housing facility. At a minimum, the records shall document the animal's description, impoundment date, disposition date, and method of disposition. Records shall be available for inspection by the department. Chapter 826 Rules - 4 Zoonosis Control Division - 9/04 (8) Heating. Adequate shelter shall be provided to protect animals from any form of cold or inclement weather and direct effects of wind, rain, or snow. Auxiliary heat or clean, dry bedding material shall be provided any time the ambient temperature falls below 50 degrees Fahrenheit (10 degrees Celsius) for more than four consecutive hours when animals are present. Ifbedding material is used, larger quantities should be used as temperatures drop. (9) Cooling and Ventilation. Adequate shelter shall be provided to protect animals from any form of overheating and direct rays ofthe sun. Facilities shall be provided with fresh air either by means of windows, doors, vents, fans, or air conditioning and shall be ventilated so as to minimize drafts, odors, and moisture condensation. Auxiliary ventilation, such as fans or air conditioning, shall be provided in indoor facilities when the ambient temperature is 85 degrees Fahrenheit (29.5 degrees Celsius) or higher. (10) Lighting. Housing facilities shall have ample light of sufficient intensity to permit routine inspection and cleaning. Primary enclosures shall be situated to protect the animals from excessive illumination. (11) Construction. Housing facilities must be constructed in such a manner that they will protect the animal and not create a health risk or public nuisance. The building surfaces shall be constructed and maintained so that they are impervious to moisture and may be readily sanitized. Floors shall be made of durable, nonabsorbent material. (12) Primary enclosures. Primary enclosures shall: (A) be structurally sound and maintained in good repair; (B) provide convenient access to clean food and water; (C) enable the animal to remain dry and clean; (D) be constructed and maintained so that the surfaces are impervious to moisture and may be readily sanitized; (E) be constructed so as to protect the animal's feet and legs from injury; and (F) provide sufficient space to allow each animal to turn around fully, stand, sit, and lie in a comfortable normal position. (b) Feeding. (1) Dogs and cats shall be fed at least once a day except as directed by a licensed veterinarian. The food shall be free from contamination, wholesome, palatable, and of sufficient quality and nutritive value to meet the normal daily requirements for the condition and size of the dog or cat. ",- Zoonosis Control Division - 9/04 Chapter 826 Rules - 5 (2) Domestic ferrets shall have 24-hour access to food. The food shall be free _ from contamination, wholesome, palatable, and of sufficient quality and nutritive value to meet the normal daily requirements for the condition, size, and age of the dome stic ferret. (3) Food receptacles shall be accessible to all dogs, cats, and domestic ferrets and shall be located so as to minimize contamination by excreta. Food pans or bowls shall be durable and kept clean and sanitary. Disposable food receptacles may be used but must be discarded after each feeding or for domestic ferrets, after 24 hours of use. Self feeders may be used for feeding dry pet foods and shall be kept clean and sanitary. (c) Watering. If potable water is not accessible to dogs and cats at all times, it shall be offered to them at least twice daily for periods of not less than one hour, except as directed by a licensed veterinarian. Domestic ferrets shall have potable water accessible at all times, provided in drinking bottles of appropriate size to maintain a fresh supply. Water receptacles shall be kept clean and sanitary. (d) Sanitation. (1) Cleaning of primary enclosures. Excreta shall be removed from primary enclosures as often as necessary to prevent contamination of the inhabitants, but not less than daily. (2) Sanitation of primary enclosures. Cages, rooms, and pens shall be maintained in a sanitary condition. (3) Building and premises. Building and premises shall be kept clean. (e) Pest Control. A regular program for the control of insects, ectoparasites, and other pests shall be established and maintained. (f) Outdoor facilities are acceptable under this section provided those facilities meet all the requirements of this section. (g) This section applies to all animal shelters located in counties with a population of 75,000 or greater as required by Health and Safety Code, Chapter 823 and to all quarantine or impoundment facilities regardless of county population. (h) Impoundment facilities in counties with a population less than 75,000 have until January 16, 2005, to be in compliance with the minimum standards set forth in this section. ~169.27. Quarantine Method and Testing. (a) When a domestic dog, cat, or domestic ferret which has bitten a human has been identified, the owner or custodian will be required to place the animal in quarantine until the end of the lO-day observation period. Unvaccinated animals should not be vaccinated against rabies during the observation period; however, animals may be treated for unrelated medical problems diagnosed by a veterinarian. The observation period will begin at the time of the bite incident. If the animal becomes ill during the observation period, the local rabies control authority must be Chapter 826 Rules - 6 Zoonosis Control Division - 9/04 notified by the person having possession of the animal. The animal must be placed in a department licensed facility specified by the local rabies control authority and observed at least twice daily. However, the local rabies control authority may allow the animal to be placed in a veterinary clinic. As an alternative, the local rabies control authority may allow home quarantine if the following criteria can be met. (1) A secure enclosure approved by the local rabies control authority must be used to prevent escape. (2) The animal has been vaccinated against rabies and the time elapsed since the most recent vaccination has not exceeded the label recommendations for the vaccine. If an unvaccinated animal is not over four months of age at the time of the bite, it may be allowed home quarantine. (3) The local rabies control authority or a licensed veterinarian must observe the animal at least on the first and last days of the quarantine period. (4) The animal was not a stray (as defined in the Texas Health and Safety Code, 9826.002) at the time ofthe bite. (b) A domestic animal which has bitten a human and has been designated by the local rabies control authority as unclaimed may be humanely killed in such a manner that the brain is not mutilated. A suitable specimen (head with brain intact or brain) shall be submitted to a department certified laboratory for rabies diagnosis as specified in subsection (h) ofthis section. (c) If the biting animal is a high risk animal, it shall be humanely killed and a suitable specimen submitted for rabies testing as specified in subsection (h) of this section. (d) If the biting animal is a low risk animal, neither quarantine nor rabies testing will be required unless the local rabies control authority has cause to believe the biting animal is rabid, in which case it should be humanely killed and a suitable specimen submitted for rabies testing as specified in subsection (h) ofthis section. (e) The local rabies control authority may require an animal which has inflicted multiple bite wounds, punctures, or lacerations to a person to be humanely killed and a suitable specimen submitted for rabies testing as specified in subsection (h) of this section. (f) lithe biting animal is not included in subsection (a), (b), (c), (d), or (e) of this section, the biting animal will be humanely killed and a suitable specimen submitted for rabies testing as specified in subsection (h) of this section or the local rabies control authority may require the animal to be quarantined or suitably confined for the 30-day observation period as an alternate method to killing and testing. (g) Any animal required to be quarantined under this section, which cannot be maintained in a secure quarantine, shall be humanely killed and a suitable specimen submitted for rabies testing as specified in subsection (h) of this section. ....- Zoonosis Control Division - 9/04 Chapter 826 Rules - 7 (h) All laboratory specimens referred to in subsections (b) - (g) of this section shall be submitted in accordance with S 169.33 of this title (relating to Submission of Specimens for Laboratory Examination). (i) At the discretion of the local rabies control authority, currently vaccinated assistance, therapy, and police dogs may not be required to be placed in quarantine during the observation period. ~169.28. Requirements of a Quarantine Facility. (a) Quarantine procedures. (I) Quarantine facilities shall have and use written standard operating procedures (SOP) specific for that facility to ensure effective and safe quarantine procedures. The SOP shall be posted in the quarantine facility and adhered to by each employee. (2) An animal which may have exposed a human to rabies and animals suspected of rabies that are placed in quarantine for observation must be separated by a solid partition from all other animals in such a manner that there is no possibility of physical contact between animals. An empty chamber between animals is not an acceptable alternative. To prevent escape, the chamber must be enclosed on all sides, including the top. Quarantine cages, runs, or rooms must have "Rabies Quarantine" signs posted. - (3) Unowned animals may be destroyed for rabies diagnosis prior to the end ofthe quarantine period. (b) Facilities planning. Any county, city, town, or incorporated community desiring to construct animal quarantine facilities shall submit plans to the department for approval. (c) Inspection requirements of quarantine facilities. (1) It will be the responsibility of the department to inspect all animal quarantine facilities. The inspection ofthe premises will be accomplished during ordinary business hours. All deficiencies will be documented in writing. Those that are of sufficient significance to affect the humane care or security of any animal confined to the facility must be corrected within a reasonable period oftime. (2) The inspections will be accomplished annually or more frequently when significant discrepancies have been identified. Any facility that does not achieve acceptable standards will not be licensed for rabies quarantine operations. (3) The quarantine facility manager has the right to appeal the results of the inspection evaluation. If the opinion of management of the quarantine facility is in conflict with the inspection evaluation, he or she may request a review of the inspection by the director of the department's Zoonosis Control Division. In the event points of difference still remain, the supervisor may request a review ofthe inspection by the chief of the department's Bureau of Communicable Disease Control. Each ofthe appeals listed in this paragraph, when required, Chapter 826 Rules - 8 Zoonosis Control Division - 9/04 will be made in writing through the regional director's office of the public health region in which - the animal facility is located. ~169.29. Vaccination Requirement. ( a) The owner or custodian (excluding animal shelters) of each domestic dog or cat shall have the animal vaccinated against rabies by four months of age. The animal must receive a booster within the 12-month interval following the initial vaccination. Every domestic dog or cat must be revaccinated against rabies at a minimum of at least once every three years with a rabies vaccine licensed by the United States Department of Agriculture. The vaccine must be administered according to label recommendations. Livestock (especially those that have frequent contact with humans), domestic ferrets, and wolf-dog hybrids should be vaccinated against rabies. Nothing in this section prohibits a veterinarian and owner or custodian from selecting a more frequent rabies vaccination interval. Health and Safety Code, 99826.014 and 826.015 allow local jurisdictions to establish more frequent rabies vaccination intervals. (b) Official rabies vaccination certificates shall be issued by the vaccinating veterinarian and contain the following information: (1) owner's name, address, and telephone number; (2) animal identification - species, sex (including neutered if applicable), approximate age (three months to 12 months, 12 months or older), size (pounds), predominant breed, and colors; - (3) vaccine used - producer, expiration date, and serial number; (4) date vaccinated; (5) date vaccination expires (revaccination due date); (6) rabies tag number if a tag is issued; (7) veterinarian's signature or signature stamp and license number. (c) A copy of each rabies vaccination certificate issued shall be retained by the issuing veterinarian and be readily retrievable for a period of not less than five years from the date of issuance. (d) If a veterinarian ceases the practice of veterinary medicine, the duplicate rabies vaccination certificates retained by that practice shall be turned over to the local rabies control authority. This does not apply to the sale or lease of a practice, when the records ofthe practice are transferred to a new owner. Zoonosis Control Division - 9/04 Chapter 826 Rules - 9 ~169.30. Disposition of Domestic Animals Exposed to Rabies. (a) Not currently vaccinated animals which have been bitten or directly exposed by physical contact with a rabid animal or its fresh tissues shall be: (1) humanely killed; or (2) if sufficient justification for preserving the animal exists, the exposed animal shall be immediately vaccinated against rabies, placed in strict isolation for 90 days, and given booster vaccinations during the third and eighth weeks ofisolation. For young animals, additional vaccinations may be necessary to ensure that the animal receives at least two vaccinations at or after the age prescribed by the United States Department of Agriculture for the vaccine administered. (b) Currently vaccinated animals which have been bitten or otherwise significantly exposed to a rabid animal shall be: (l) humanely killed; or (2) if sufficient justification for preserving the animal exists, the exposed vaccinated animal shall be given a booster rabies vaccination immediately and placed in strict isolation for 45 days. ( c) These provisions apply only to domestic animals for which an approved rabies vaccine is available. (d) In situations where none of the requirements of this section are applicable, the recommendations contained in the latest edition ofthe publication titled The Compendium of Animal Rabies Control, published by the National Association of State Public Health Veterinarians, should be followed. ~169.31. Interstate Movement of Dogs and Cats into Texas. Each dog and cat over three months of age to be transported into Texas for any purpose shall be admitted only when vaccinated against rabies and the time elapsed since the most recent vaccination has not exceeded the label recommendations for the vaccine. Additionally, identification must be provided by a vaccination certificate showing the date of vaccination, vaccine used, and signature of the licensed veterinarian who administered the vaccine. ~169.32. International Movement of Dogs and Cats into Texas. Each dog and cat over three months of age to be transported into Texas for any purpose shall be admitted only when vaccinated against rabies and the time elapsed since the most recent vaccination has not exceeded the label recommendations for the vaccine. Additionally, identification must be provided by a vaccination certificate showing the date of vaccination, vaccine used, and signature of the licensed veterinarian who administered the vaccine. International movement of dogs and cats into Texas will also include any rules and regulations prescribed by the United States government. - Chapter 826 Rules - 10 Zoonosis Control Division - 9/04 ~169.33. Submission of Specimens for Laboratory Examination. Preparation of specimens either for shipment or for personal delivery for rabies diagnosis shall include the following. (1) Damage to the brain caused by shooting or other traumatizing procedures shall be avoided. (2) The head of the suspect animal shall be separated from the body immediately after death by a qualified person. Only the head shall be submitted with the exception that whole bats may be submitted. If only the brain is submitted rather than the entire head, parts ofthe cerebellum, hippocampus, and brain stem must be included. Specimens which do not include at least two ofthese three areas of the brain will be considered unsatisfactory due to a lack of sufficient material. (3) The head shall be immediately chilled to between 45 degrees Fahrenheit and 32 degrees Fahrenheit either in a refrigerator or by packing for shipping with sufficient amounts of refrigerants in the container. The head should not be frozen. (4) If specimens are shipped, two containers shall be used for packing. (A) The immediate (inner) container. Only one head shall be placed in each immediate container which shall be double plastic bags. Attach the owner's name or an identification number to each double-sealed plastic bag. Adhesive tape is useful. Do not use masking tape. (B) The shipping (outer) container. (i) The immediate container(s) shall be placed in an insulated shipping container of adequate strength to withstand shipping conditions, such as a styrofoam container inside a cardboard box. (ii) Sufficient refrigerant shall be added so the head will remain chilled for a minimum of 48 hours. Do not use dry ice. Gel packs or similar refrigerants are recommended. Ice is not recommended but, ifused, must be doubled-bagged in heavy-duty plastic bags. (iii) Packing material, such as newspaper, shall be added to absorb water and blood in the event ofleakage and buffer the specimens. (iv) A completed Texas Department of Health Form G-9, Rabies Submission Form, which is available at the department's Bureau of Laboratories, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756, is required for each head submitted. Each form must contain the same identification information as located on the specimen bag as stated in subparagraph (4)(A) of this section. Submission formes) shall be placed in a water-proof bag on top of the Styrofoam container inside the cardboard box. Ifa combination ofa Styrofoam container and cardboard box is not used, the formes) shall be placed on top of the packing material inside the outer container. Zoonosis Control Division - 9/04 Chapter 826 Rules - 11 (v) Labeling on the outside ofthe shipping container shall be legible and include: (1) name, address, and telephone number of the appropriate laboratory (listed in paragraph (6) of this section); (II) the return address, name, and telephone number of the shipper; and (III) the following statement: "RABIES SUSPECT - REFRIGERATE ON ARRIVAL." (5) The following procedures are required for shipment: (A) shipment shall be by bus or other reliable carrier; the department does not recommend the United States Postal Service. If an overnight carrier is used, such as United Parcel Service (UPS) or Federal Express, ship the specimen such that it will arrive by Friday or delay shipment until Monday. These services do not deliver to the department on the weekend; (B) a shipping receipt will be obtained and retained by the shipper; (C) at the time of the shipment, the shipper shall telephone the appropriate laboratory and notifY laboratory personnel of the shipment; and (D) the shipper shall provide the return postage (in the form of stamps, not money) ifreturn of the shipping container is desired. (6) The certified laboratories in Texas are: (A) Austin - Bureau of Laboratories, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756, telephone the rabies shipment notification hotline at 1-800-252-8163, or the local telephone at: (512) 458-7595, (512) 458-7515, or (512) 458-7491. (B) EI Paso - Laboratory, EI Paso City - County Health Department, 222 South Campbell, EI Paso, Texas 79901, telephone: (915) 543-3536; (C) Houston - Bureau of Laboratory Services, City of Houston Health Department, 1115 South Braeswood, Houston, Texas 77030, telephone: (713) 558-3468 or (713) 558-3467; (D) San Antonio - Laboratory, San Antonio Metropolitan Health District, 332 West Commerce Street, Room 203, San Antonio, Texas 78205, telephone: (210) 207-8884. Chapter 826 Rules - 12 Zoonosis Control Division - 9/04 ~169.34. Statewide Quarantine. (a) Declaration. The board declares a statewide rabies quarantine. (1) Statewide quarantine. The area is defined by the borders ofthe State of Texas. (2) It is illegal to transport animals subject to the statewide rabies quarantine from, to, or within the State of Texas. (3) Animals subject to the statewide rabies quarantine include any live coyote (Canis lalrans), raccoon (Procyon IOlor), or species of foxes indigenous to North America. (4) Transport exceptions. Animals subject to the statewide rabies quarantine may be transported by peace officers and individuals hired or contracted by state or federal agencies or local governments to deal with stray animals when such transport is a part of their official duty. These animals may also be transported by employees of zoos or other institutions accredited by the American Association of Zoological Parks and Aquariums when such transport is part of their official duty. If an exempt individual transports such animals for release, the animals must be released within a ten-mile radius or within ten miles of the city limits of where they were originally captured. (b) Board's designee. The board's designee is the commissioner, whom the board appoints to act as its designee as described in Texas Health and Safety Code, 9826.045. (c) Special provisions for raccoons. In addition to the transport exceptions listed in subsection (a)(4) of this section, the following individuals may transport raccoons: (1) rehabilitators permitted by the Texas Parks and Wildlife Department may transport raccoons within a ten-mile radius or within ten miles of the city limits of where they were originally captured; (2) pest control operators licensed by the Structural Pest Control Board may transport raccoons within a ten-mile radius or within ten miles of the city limits of where they were originally captured; and, (3) educators permitted by the Texas Parks and Wildlife Department for educational display. (d) Rehabilitation of animals. Except for raccoons, rehabilitation of animals listed in subsection (a)(3) of this section is prohibited. Zoonosis Control Division - 9/04 Chapter 826 Rules - 13