HomeMy WebLinkAbout2007-02-12 Regular Meeting, Public Hearing and Workshop Meeting of the La Porte City Council Minutes
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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
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James J. Flanagan Shipping Corporation
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(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
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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
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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
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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
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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
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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.
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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
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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.
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City of La Porte
County of Harris
State of Texas
820 S. 8th Street
La Porte, Texas 77571
Th..m... ........
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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
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KAROLYN KElLOGG
MY COMMISSION EXPiRES
Apri 11, Z,)10
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My Commission Exprires April 11, 2010
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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-__ '_~_ ~~.~~'
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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:
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I am OPPOSED to granting this request for the following reasons:
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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.
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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;
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(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.
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~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.
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~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.
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(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.
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~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.
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