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2010-3-8
MINUTES OF REGULAR MEETING, PUBLIC HEARING AND WORKSHOP MEETING OF THE LA PORTE CITY COUNCIL MARCH 8, 2010 1. Call to order The meeting was called to order by Mayor Beasley at 6:00 p.m. Members of City Council Present: Mayor Barry Beasley, Councilmembers Louis Rigby, Tommy Moser, Daryl Leonard, Mike Clausen, John Black, Mike Mosteit and Chuck Engelken Members of Council Absent: None Members of City Executive Staff and City Employees Present: City Manager's Office: Ron Bottoms, Melisa Lanclos, Dawn Anderson and John Joerns Legal: Knox Askins and Clark Askins City Secretary's Office: Martha Gillett, Robin Eldridge, Bonnie Garrison and Sharon Harris Public Works: Steve Gillett Planning: Tim Tietjens, Debbie Wilmore, Masood Malik and Brian Sterling Police Department: Ken Adcox, Sherman Moore, Tracy Phelan and Chris Paige Finance: Michael Dolby and Phyllis Rinehart Parks and Recreation: Stephen Barr Purchasing: Susan Cream Economic Development: Stacey Osborne Fire: Mike Boaze and Donald Ladd Golf Course — Alex Osmond EOC — Kristin Gauthier Human Resources — Heather Weger Others Present: Ted Powell, Kathryn Aguilar, Adam Yanelli of Bayshore Sun, Dottie Kaminski, Stephanie Zemanek, Jeannie Zemanek, Paul Chavez and Dan Seal, Mr. and Mrs. Adler, Andrew Adler, Colleen Hicks, Mr. and Mrs. Chuck Rosa, Cheryl Westmoreland, Abraham Rosa, Mrs. Abraham Rosa, Phillip Hoot, Luke Dubicz, Laine Dubicz, Joe Brown, Bob Mitchell, Mac Duson, Larry Dunbar, Charles Nute, Anna Rosus, Mike Prasek, Charles Rothmund, Marsha Lindstrom, Joe Rodriguez, Liz Bias, Gordon Westmoreland, Margaret Compton, Drew Zemanek, Devin Zemanek, Charles Gilliam, David Janda, Paula Lowe, and other citizens. 2. The Invocation was given by Wayne Spears from Fairmont Park Church. 3. Councilman Chuck Engelken led the Pledge of Allegiance. 4. Presentations/Proclamations Mayor Beasley and Councilmember Moser presented the Annual Prudential Spirit of Community Award "Andrew Adler" Day to Andrew Adler Minutes of Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council on March 8, 2010 Paul Mitchell and Dan Seal of Bay Area Houston Economic Partnership presented activities report from July — December 2009. 5. Consent agenda - Any item may be removed by a Councilperson for discussion A. Council to consider approval or other action of minutes of Regular Meeting and Workshop Meeting held on February 22, 2010 — M. Gillett B. Council to consider approval or other action regarding an ordinance amending the FY 2009-2010 Budget (3225) — M. Dolby C. Council to consider approval or other action awarding bid # 10018 for Golf Course Channel Improvements Project— A. Osmond D. Council to consider approval or other action to secure lots (Block 39 Lots 11 and 12) held in trust by the City Fire Station # 1 site — D. Ladd E. Council to consider approval or other action regarding the acceptance of the FY 2010 HMEP (Hazardous Materials Planning Grant) to be used to strengthen LEPC's public awareness campaign — J. Suggs F. Council to consider approval or other action awarding bid # 10019 for construction of Sylvan Beach Fishing Pier — S. Barr G. Council to consider approval or other action regarding a resolution declaring opposition to the development of a low to very low income 128-unit rental housing complex near the corner of South Broadway and Mc Cabe Road (Res. 2010-02) — T. Tietjens H. Council to consider approval or other action renewing the Medical Stop Loss Coverage — H. Weger Assistant City Attorney Clark Askins read the following agenda captions: Ordinance 3225 — AN ORDINANCE APPROVING AN AMENDMENT TO THE BUDGET FOR THE CITY OF LA PORTE, TEXAS FOR THE PERIOD OF OCTOBER 1, 2009 THROUGH SEPTEMBER 30, 2010; FINDING THAT ALL THINGS REQUISTE AND NECESSARY HAVE BEEN DONE IN PREPARATION AND PRESENTMENT OF SAID BUDGET; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. Resolution 2010-02 — RESOLUTION DECLARING CITY COUNCIL OPPOSITION TO THE CONSTRUCTION OF A LOW AND VERY -LOW INCOME RENTAL HOUSING COMPLEX NEAR THE CORNER OF SOUTH BROADWAY AND MCCABE ROAD IN LA PORTE, TEXAS Minutes of Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council on March 8, 2010 3 Motion was made by Councilmember Engelken to approve the consent agenda as presented with the exception of item E due to the absence of Mr. Suggs. Second by Councilmember Moser. Motion carried. Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Black, Mosteit and Mayor Beasley Nays: None Abstain: None Absent: None Petitions, Remonstrance's, Communications, Citizens and Tax Payers wishing to address Council on any item posted on the agenda (Limited to five minutes) Kathryn Aguilar — 3119 Fondren — Ms. Aguilar advised Council she would like to see Happy Harbor and Klein Retreat properties not be sold for development. In addition, she spoke for Charlotte Wells on the opposition of the "IKE DIKE" method of flood abatement. Ted Powell — requested to speak during the workshop portion of the meeting. Laine Bailey Dubicz — 3115 Weatherford — Ms. Dubicz informed City Council she is still in a FEMA trailer due to Hurricane Ike. Ms. Dubicz had questions regarding property homestead and issues post Hurricane Ike. Mac Duson — 4709 Austin St., Houston, Texas — Mr. Duson is the attorney for Fairmont Park Homeowners East Association. Noted the Homeowners Association would like to see item 19 on the agenda be approved. In addition, the Homeowners wanted to thank city staff for all the efforts to resolve their drainage issues. Larry Dunbar — 6342 Dewbridge, Sugarland, Texas 77479 — Mr. Dunbar is a consultant engineer hired by the Fairmont Park East Homeowner's Association. Mr. Dunbar thanked city staff and noted he is in favor of City Council approving item 19 on the agenda. Chuck Rosa — 812 S. Virginia — Mr. Rosa shared his recent citizen poll results on City Brochure, nudity laws, Town Plaza and La Porte Police Department enforcement. 7. Council to consider approval or other action regarding an ordinance declaring the results of the Run -Off Election held in the City of La Porte on February 27, 2010, for the election of Councilperson At -Large "A" position (Ord. 3226) — C. Askins City Attorney Clark Askins presented summary and recommendation and answered Councils' questions. Assistant City Attorney Clark Askins read Ordinance 3226 AN ORDINANCE DECLARING THE RESULTS OF A RUN-OFF ELECTION HELD IN THE CITY OF LA PORTE ON FEBRUARY 27, 2010, FOR THE ELECTION OF A COUNCILPERSON - AT- LARGE — POSITION A, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. Minutes of Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council on March 8, 2010 4 Motion was made by Councilmember Moser to approve Ordinance 3226 as presented by Mr. Askins. Second by Councilmember Rigby. Motion carried. Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Black, Mosteit and Mayor Beasley Nays: None Abstain: None Absent: None 8. Mayor Beasley administered Oath of Office to the newly appointed At Large Position A Councilmember John Zemanek. Council took the Executive Session out of order at this time. 6:52 p.m. See below. Councilmember Engelken abstained from participating in the executive session item involving Centerpoint Energy. Council retired from Executive Session and returned to the table at 7:43 p.m. 9. Receive 2009 Comprehensive Annual Financial Report — M. Dolby Finance Director Michael Dolby introduced Paula Lowe of Pattillo, Brown and Hill, L.L.P. who provided the 2009 Comprehensive Annual Financial Report. She informed City Council the City received the highest rating it could receive. 10. Consider approval or other action authorizing City Manager to convey lots (Block 105, Lots 12, 13, and 14) held in trust by the City to Habitat for Humanity to construct affordable housing — J. Joerns Assistant City Manager John Joerns presented summary and recommendation and answered Councils' questions. Motion was made by Councilmember Moser to authorize the City Manager to convey lots (Block 105, Lots 12, 13, and 14) held in trust by the City to Habitat for Humanity to construct affordable housing as presented by Mr. Joerns. Second by Councilmember Mosteit. Motion carried. Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Black, Mosteit, Zemanek and Mayor Beasley Nays: None Abstain: None Absent: None 11. Consider approval or other action regarding a resolution authorizing the issuance of Certificates of Obligation for Drainage Improvement Projects (Res. 2010-03) — M. Dolby Minutes of Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council on March 8, 2010 5 Finance Director Michael Dolby presented summary and recommendation and answered Councils' questions. It addition, a representative from RBC Capital Market was present to provide information and answer questions. Assistant City Attorney Clark Askins read Resolution 2010-03 RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION FOR THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS; AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES; AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO Motion was made by Councilmember Engelken to approve Res. 2010-03 as presented by Mr. Dolby. Second by Councilmember Mosteit. Motion carried. Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Black, Mosteit, Zemanek and Mayor Beasley Nays: None Abstain: None Absent: None 12. Consider approval or other action regarding installing a wireless communication network and camera system utilizing the State DIR Cooperative Contracts Program for the City of La Porte — J. Suggs This item was pulled due to the absence of Mr. Suggs. 13. Consider approval or other action regarding an ordinance condemning substandard building located at 401 N. 6th Street (Ord. 2009-3165) — D. Wilmore Chief Building Official Debbie Wilmore presented summary and recommendation and answered Councils' questions. This item was not voted on and motion was made by Councilmember Moser to table the public hearing until May loth. Second by Councilmember Black. Motion carried. Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Black, Mosteit, Zemanek and Mayor Beasley. Nays: None Abstain: None Absent: None 14. Close Regular Meeting and Open Workshop Meeting The Regular Meeting was closed and the Workshop Meeting was opened at 8:07 p.m. A. Discuss Prescription Card Discount Program — M. Lanclos Minutes of Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council on March 8, 2010 6 Office Manager Melisa Lanclos discussed a prescription card discount program. Council directed staff to move forward. B. Discuss changing East "A" from a two-way to a one-way street from Virginia Street to San Jacinto Avenue - T. Tietjens/K. Adcox Planning Director Tim Tietjens and Chief of Police Ken Adcox discussed changing East "A" from a two-way to a one-way street from Virginia Street to San Jacinto Avenue Council directed staff to move forward and to place a speed limit sign at the turn area. Public Comments were continued at this point. Phillip Hoot — 922 Seabreeze — Mr. Hoot informed Council the Klein Retreat, Happy Harbor and Sylvan Beach area could be made into a dog park and offered his assistance. Ted Powell — 1700 Roscoe — Mr. Powell informed Council he would like to see Happy Harbor and Klein Retreat properties become public park areas. He noted opposition to item B on the workshop agenda. Kathryn Aguilar — 3119 Fondren — Ms. Aguilar informed Council she agrees with Mr. Powell and Mr. Hoot that the Happy Harbor and Klein Retreat properties would enhance the quality of life if they were to become park areas. She agrees with the concept of a dog park in the Sylvan Beach area as well. C. Discuss process for disposing of surplus properties — J. Joerns Assistant City Manager John Joerns discussed process for disposing of surplus properties. Council asked staff to do further research and assessment and bring back to a future meeting. D. Discuss La Porte Anti -Litter Campaign— S. Barr Director of Parks and Recreation Stephen Barr discussed La Porte Anti -Litter Campaign. Council directed staff to move forward and to check on liability insurance related to this event. 15. Close Workshop Meeting and reconvene Regular Meeting Minutes of Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council on March 8, 2010 Mayor Beasley closed Workshop Meeting and reconvened Regular Meeting at 8:43 p.m. Item number 19 was taken out of order at this time. See below. 16. Receive Report from Fiscal Affairs Committee — Chairman Chuck Engelken Chairman Chuck Engelken provided a report from the Fiscal Affairs Committee. 17. Receive Report from La Porte Development Corporation Board — Chairman Chuck Engelken Chairman Chuck Engelken provided a report from the La Porte Development Corporation Board. 18. Receive Report from Drainage and Flooding Committee — Chairman Mike Mosteit Chairman Mike Mosteit provided a report from the Drainage and Flooding Committee. 19. Consider approval or other action authorizing the City Manager to execute an agreement with Klotz Associates to perform final design, bidding and construction phase services for the Fleetwood Drive Street and Drainage Project — S. Gillett Public Works Director Steve Gillett provided summary and recommendations and answered Councils' questions. Motion was made by Councilmember Clausen to authorize the City Manager to execute an agreement with Klotz Associates to perform final design, bidding and construction phase services for the Fleetwood Drive Street and Drainage Project as presented by Mr. Gillett. Second by Councilmember Mosteit. Motion carried Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Black, Zemanek and Mosteit Nays: None Abstain: Mayor Beasley Absent: None Council moved back to item 16 at this time. 20. Receive Drainage Report from City Staff — S. Gillett Public Works Director Steve Gillett provided the monthly Drainage Report 21. City Manager Ron Bottoms provided Administrative Reports for the following: March 9, 2010 — 75th Birthday — La Porte/Bayshore Garden Club —11:30 a.m. March 10, 2010 — LEPC Golf Tournament- Bay Forest Golf Club — 8:00 a.m. Minutes of Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council on March 8, 2010 March 10, 2010 — La Porte Water Authority Meeting — 6:00 p.m. — Public Works Service Center — 2963 North 23RD Street. March 18, 2010 — HCMCA Dinner/Meeting — City of Deer Park Municipal Court and Theatre Building — 6:30 p.m. March 22, 2010 — City Council Meeting March 31, 2010 — TML Region 14 Spring Meeting — Four Seasons Hotel — Downtown Houston — 7:00 p.m. 22. Council Comments: Engelken, Mosteit, Clausen, Rigby, Moser, Black, Leonard, Zemanek, and Beasley. A. Matters appearing on agenda B. Recognition of community members, city employees, and upcoming events C. Inquiry of staff regarding specific factual information or existing policy 23. Executive Session — pursuant to provision of the Open Meeting Law, Chapter 551, Texas Government Code, Sections 551.071 through 551.076, 551.087 (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) 551.071 (Consultation with attorney) 551.072 (Deliberation regarding the purchase exchange, lease, or value of real Property) Council retired to executive session at 6:52 p.m. Meet with City Manager and City Attorney to discuss Center Point Gas Franchise Renewal Meet with City Manager and City Attorney to discuss 80 acre tract on Bay Area Blvd. Council returned to the table and reconvened the meeting at 7:43 p.m. There was no action taken in Executive Session. 24. Considerations and possible action on items considered in executive session. There was no action taken in Executive Session. 25. Adjournment Being no further business, the meeting was duly adjourned at 9:10 p.m. Minutes of Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council on March 8, 2010 3Pateand p 6rovt 22 d Mayor Barry Beasley Respectfully submitted, /Mar�haGillett, TRMC, CIVIC City Secretary day of March 2010. rip REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8, 2010 Requested By: Michael Dolby, CPA Department: Finance Report: Resolution: Ordinance: XX Exhibits: Ordinance Exhibits: Excerpt from FY 2010 Adopted Budget & Amended Budget (Exhibit A & B) Exhibits: Explanations / Backup for Amendment Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: YES NO SUMMARY & RECOMMENDATION The City Council adopted the Fiscal Year 2009-10 Budget on September 21, 2009. The Summary of Funds, which is shown below, represents the amendments which council previously approved to the FY 2009-10 Budget. (*denotes funds with current changes) General Fund Grant Fund Street Maintenance Sales Tax Fund Community Investment Hotel/Motel Occupancy Tax La Porte Development Corporation Tax Increment Reinvestment Zone Utility Sylvan Beach Airport La Porte Area Water Authority Golf Course Motor Pool Insurance Fund Technology Fund General Capital Improvement Utility Capital Improvement Sewer Rehabilitation Capital Improvement Drainage Improvement Fund 1998 General Obligation Bond Fund 2000 General Obligation Bond Fund 2002 General Obligation Bond Fund 2004 Certificate of Obligation Bond Fund 2005 Certificate of Obligation Bond Fund 2005 General Obligation Bond Fund 2006 Certificate of Obligation Bond Fund 2006 General Obligation Bond Fund 2007 Certificate of Obligation Bond Fund 2009 Certificates of Obligation Bond Fund Transportation & Other Infrastructure Fund General Debt Service Utility Debt Service La Porte Area Water Authority Debt Service Total of All Funds Previously Proposed Original Budget Amended Budget Amended Budget $ 32,894,465 $ 33,014,784 $ 33,014,784 2,160,353 2,234,792 2,267,988 700,000 700,000 700,000 344,700 433,771 433,771 977,522 1,003,281 1,003,281 1,910,464 1,912,674 1,912,674 1,413,966 1,413,966 1,413,966 7,740,176 7,743,711 7,743,711 3,500 3,500 3,500 22,368 22,368 22,368 974,545 974,545 974,545 1,360,393 1,364,643 1,364,643 1,969,367 1,969,367 1,969,367 4,497,909 4,497,908 4,497,908 1,184,405 1,221,111 1,221,111 2,255,100 2,260,100 2,260,100 105,000 257,000 257,000 350,000 408,168 408,168 169,000 169,000 169,000 0 0 0 0 0 0 0 0 0 376,570 376,570 376,570 256,503 256,503 256,503 16,219 16,219 16,219 966,497 966,497 966,497 0 0 0 1,125,492 1,125,492 1,125,492 9,600,000 9,600,000 9,600,000 504,000 504,000 504,000 4,076,755 4,076,755 4,076,755 326,314 326,314 326,314 740,456 740,456 740,456 $ 79,022,038 $ 79,593,495 $ 79,626,691 Action Required by Council: Ron Ordinance Amending Fiscal Year 2009-10 Budget in the Grant Fund for $33,196 for outstanding FEMA The money has already been received from FEMA; however, the budget needs to be amended in order for s Department to spend the money and make necessary repairs. Agenda Manager 3 3 !0 Date ORDINANCE NO. 2010- � AN ORDINANCE APPROVING AN AMENDMENT TO THE BUDGET FOR THE CITY OF LA PORTE, TEXAS, FOR THE PERIOD OF OCTOBER 1, 2009 THROUGH SEPTEMBER 30, 2010; FINDING THAT ALL THINGS REQUISITE AND NECESSARY HAVE BEEN DONE IN PREPARATION AND PRESENTMENT OF SAID BUDGET; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the Charter of the City of La Porte, Texas, and the Statutes of the State of Texas, require that an annual budget be prepared and presented to the City Council of the City of La Porte, Texas, prior to the beginning of the fiscal year of said City, and that a public hearing be held prior to the adoption of said Budget; and WHEREAS, the Budget for the fiscal year October 1, 2009, through September 30, 2010, has heretofore been presented to the City Council and due deliberation had thereon, was filed in the office of the City Secretary on July 24, 2009, and a public hearing scheduled for September 21, 2009 was duly advertised and held. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: SECTION 1: That the Budget for the City of La Porte, Texas, now before the said City Council for consideration, a complete copy of which is on file with the City Secretary and a summary of which is attached hereto by reference as Exhibit "A", is hereby amended as reflected on the amended budget summary document, attached hereto by reference as Exhibit "B", as the Budget for the said City of La Porte, Texas, for the period of October 1, 2009, through September 30, 2010. SECTION 2: Be it FURTHER ORDAINED, that the said City Council finds that all things requisite and necessary to the adoption of said Budget have been performed as required by charter or statute. SECTION 3: 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 4: This Ordinance shall be%iinn effect from and after its passage and approval. PASSED AND APPROVED this theor day of ��i� G� 2010. F LA.PORTE, TEXAS Barry asley, yor ATTEST: Martha Gillett, City Secretary APPROVFcD: Clark Askins, Assistant City Attorney EXHIBIT A (ORIGINAL BUDGET) City of La Porte Consofidated Summary of All Funds Governmental Fund Types: General Fund Grant Fund Street Maintenance Sales Tax Community Investment Hotel/Motel Occupancy Tax Section 4B Sales Tax Tax Increment Reinvestment Total Governmental Types Enterprise: Utility Sylvan Beach Airport La Porte Area Water Authority Golf Course Total Enterprise Internal Service Motor Pool Insurance Fund Technology Fund Total Internal Service Capital Improvement: General Utility Sewer Rehabilitation Drainage Improvement Fund 2004 C/O Bond Fund 2005 C/O Bond Fund 2005 GO Bond Fund 2006 C/O Bond Fund 2007 C/O Bond Fund 2009 C/O Bond Fund Other Infrastructure Total Capital Improvement Debt Service: General Utility La Porte Area Water Authority Total Debt Service FY 09-10 FY 09-10 Revenues Expenses 32,894,465 32,894,465 1,995,712 2,160,353 726,845 700,000 231,361 344,700 495,100 977,522 1,476,490 1,910,464 1,403,304 1,413,966 39,223,277 40,401,470 8,288,732 7,740,176 - 3,500 51,875 22,368 1,227,771 974,545 1,171,150 1,360,393 10,739,528 10,100,982 2,218,600 1,969,367 4,214,727 4,497,908 1,191,597 1,184,405 7,624,924 7,651,680 1,525,000 2,255,100 592,500 105,000 301,600 350,000 290,500 169,000 - 376,570 - 256,503 - 16,219 - 966,497 - 1,125,492 9,631,481 9,600,000 10,600 504,000 12,351,681 15,724,381 4,089,272 4,076,755 321,596 326,314 740,456 740,456 5,151,324 5,143,525 Total All Funds 75,090,734 79,022,038 EXHIBIT B (AMENDED BUDGET) City of La Porte Consolidated Summary of All Funds Governmental Fund Types: General Fund Grant Fund Street Maintenance Sales Tax Community Investment Hotel/Motel Occupancy Tax Section 4B Sales Tax Tax Increment Reinvestment Total Governmental Types Enterprise: Utility Sylvan Beach Airport La Porte Area Water Authority Golf Course Total Enterprise Internal Service Motor Pool Insurance Fund Technology Fund Total Internal Service Capital Improvement: General Utility Sewer Rehabilitation Drainage Improvement Fund 2004 C/O Bond Fund 2005 CIO Bond Fund 2005 GO Bond Fund 2006 C/O Bond Fund 2007 CIO Bond Fund 2009 C/O Bond Fund Other Infrastructure Total Capital Improvement FY 09-10 FY 09-10 Revenues Expenses 32,894,465 33,014,784 1,996,562 2,267,988 726,845 700,000 231,361 433,771 495,100 1,003,291 1,476,490 1,912,674 1,403,304 1,413,966 39,224,127 40,746,464 8,288,732 7,743,711 - 3,500 51,875 22,368 1,227,771 974,545 1,171,150 1,364,643 10,739,528 10,108,767 2,218,600 1,969,367 4,214,727 4,497,908 1,191,597 1,221,111 7,624,924 7,689,386 1,530,000 2,260,100 592,500 257,000 301,600 408,169 290,500 169,000 - 376,570 - 256,503 - 16,219 - 966,497 - 1,125,492 9,631,481 9,600,000 10,600 504,000 12,356,681 15,939, 549 Debt Service: General 4,089,272 4,076,755 Utility 321,596 326,314 La Porte Area Water Authority 740,456 740,456 Total Debt Service 5,151,324 5,143,525 Total All Funds 75,096,584 79,626,691 From: Suaos. Jeff To: Wolny. Shelley; Bottoms, Ron; Barr. Stephen Cc: Dolby. Michael: Rinehart, Phyllis Subject: Outstanding FEMA projects Date: Tuesday, February 02, 2010 3:20:33 PM In order to satisfy FEMA guidelines, there are three projects that Parks needs to complete by March 13th. We do not want to file an extension. It "muddies" the waters for us. To date we have been paid: Sea Breeze Park: $15,397.83 Water Front Park: $5,847.93 Shore Rip Rap: $11,949.93 TOTAL: $33,195.69 for these outstanding projects The State has already paid us and it was deposited to the general fund. Parks will need this money to complete the remaining projects by the due date or we face scrutiny. My suggestion is we move this money to an account for them to satisfy these issues. With these projects completed our only outstanding item will be the pier. There is still money that we need to recoup from TML and I have asked Stephen and Scott to follow up with Heather to get an adjuster back out to review what they have completed. What say ye? A# s" EMERGENCY MANAGEMENT COORDfNATOR CITY OF i.;% PORTE TEX %S 281470 0010 office 281470 0009 direct 281470 1590 fax 713 408 1329 cell i,� REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8, 2010 Requested By: Donald Ladd Department: Administration Report: X Resolution: Ordinance: Exhibits: Exhibits: Exhibits: Area Map — P212 Foreclosure Summary P212 Budget Source of Funds: Fund 036 Contingency Account Number: 036-6061-565-9050 Amount Budgeted: 525,000 Amount Requested: $17,600 Budgeted Item: YES No SUMMARY & RECOMMENDATION There are two tax delinquent lots (Block 39, Lots 11 & 12) available on P Street adjacent to Fire Station #1 site. The Fire Department says that these lots are critical to the overall re -development of Fire Station #1. We are requesting Council's authorization to secure these delinquent tax properties for the City. The estimated cost is $17,600. Action Required by Council: Consider approval to secure lots held in trust by the City for Fire Station # 1 site. If approved the City Manager recommends use of the Community Investment Fund. 3 Ron Bottoms, City Manager Date 63 SUMMARY OF FORECLOSURE ACTIVITY HCAD ACCOUNT NO: 023-176-000-0011 Property Struck off for: Taxes CAUSE NO: 1994-15098 PLAINTIFF(S): City of La Porte & La Porte Independent School District JUDGMENT AGAINST: Robert Biaza, Jr. JUDGMENT DATE: May 31, 1995 STRUCK OFF DATE: January 7, 1997 ORDER OF SALE: December 12, 1996 DEED RECORDED DATE: February 7, 1997 STRUCK OFF TO: City of La Porte CONSTABLE: Bill Bailey, Constable Precint No 8 PROPERTY ADDRESS: North Third Street LEGAL DESCRIPTION: Lots 11 & 12 Block 39 La Porte ADJUDGED VALUE (IN JUDGMENT): $22,090.00 SQUARE FOOTAGE: 6,250 BIDDER: AMOUNT OF BID: AMOUNT OF DEPOSIT: AMOUNT DUE: SUMMARY OF SALE ACTIVITY $0.00 $0.00 $0.00 BIDDER'S ADDRESS: BIDDER'S PHONE NO: PRORATED PERCENTAGED OF TAXES DUE TO EACH JURISDICTION BASED UPON JUDGMENT JUDGMENT TO COUNTY, ET AL. % SCHOOL % CITY % TOTAL AMOUNT DUE $4,099.53 24.58% $7,861.77 47.14% $4,715.65 28.28% $16,676.95 ASSOCIATED COSTS ON ORIGINAL AND SEALED BID SAI FS CONSTABLE/ ESTIMATED AMOUNT AMOUNT OF COURT PUBLICATION FEE AD LITEM RESEARCH FEE & TO BE PRORATED TO BID COST (TISD) FEE DEED RECORDING FEE TAXES $0.00 $368.001 $175.00 $0.00 $250.00 -$793.00 PRORATED TAX AMOUNTS TO EACH JURISDICTION OWED TO COUNTY % SCHOOL % CITY % TOTAL PRORATED AMOUNT -$194.94 24.58% -$373.83 47.14% -$224.23 28.28% -$793.00 Amount of Bid: $0.00 Costs: -District Clerk $318.00 -Tax Master $50.00 Chris Stacey -Constable Fee $0.00 -Publication $175.00 -Abstract Fee $250.00 -Cost $0.00 -Ad Litem Fee $0.00 Total:-$793.00 Taxing Jurisdictions: Amount in Judgment: % Amount Received City of La Porte $4,715.65 28.28% -$224.23 La Porte ISD $7,861.77 47.14% -$373.83 Harris County $4,099.53 24.58% -$194.94 San Jacinto CCD $0.00 0.00% $0.00 State of Texas $0.00 0.00% $0.00 $16,676.95 100.00% -$793.00 Costs + Taxes $17,469.95 Adjudged Value $ 22,090.00 P212 F REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8, 2010 Requested By: Stephen L. Barr Department: _ Parks & Recreation Report: X Resolution: Ordinance: Exhibits: Bid Tabulation Sealed Bid # 10019 Exhibits: Bidder's List Exhibits: Appropriation Source of Funds: FFMA Ike, Rec Funds 'S431,382 Sylvan Beach Escrow Fund Acc 't Number: 001-0000- 02-0610 S 108.160 Sylvan Beach Escrow Surplus 001-0000-202-0623 $111,000 Amount Budgeted: $650,542 Amount Requested: $624,262 SUMMARY & RECOMMENDATION Sealed Bid #10019 for the Sylvan Beach Fishing Pier construction for the City of La Porte/Harris County was sent to seventeen contractors and representatives. Bids were opened on February 23, 2010 with three vendors responding. Crawley Shoreline Construction, Inc. submitted the low bid meeting specifications in the amount of $499,410. Funding for this project is available through FEMA Hurricane Ike recovery funds, the Sylvan Beach Pier Escrow Fund, and the City's share of surplus escrow funds from the Sylvan Beach Pier operation. Staff recommends acceptance of the low bid from Crawley Shoreline Construction, Inc. as low bidder meeting specifications in the amount of $499,410, plus a 25% contingency, for a total of $624,262. The company expects to complete the project in 125 days after the Notice to Proceed. Action Required by Council: Consider award of bid and authorization to execute a contract with Crawley Shoreline Construction, In4,4130th truction of the Sylvan Beach Fishing Pier according to the plans and specifications, in the amount $ a contingency of 25% for a total price not to exceed $624,262. A r for t Council A enda L11 33/4 Ron Bottoms, City Manager Date BID TABULATION SHE Beach Pier Sylvan Bea Project construction Drive g12 North BaYah°re 00 nal Date/Tun'.- RFIVLD AND ALL_P Og��E �czs, INC. R February 23> 2010 2. SEALED BID #10019 SYLVAN BEACH PIER CONSTRUCTION Texas Boathouse and Pier 28931 Smugglers Court Huffman, TX 77336 Cell: 832-754-3544 Attn: Roland Fannin fannin(a)-texasboathouseandpier.com MB Western Industrial Contracting Co. PO Box 5399 Pasadena, TX 77508 PH: 281-487-5757 Fax: 281-487-5726 Attn: Steve Bosley steveb(a)- m bwestern . com Marine, Inc. 402 Bay Ave South Kemah, TX 77565 Ph: 281-334-1655 Fax: 281-334-5306 Attn: Jim Flanagan ifkemahtexas a().aol.com Padgett Shoreline Construction, Inc. PO Box 165 Bacliff, TX 77518 PH: 281-339-1561 Fax: 281-339-1104 Attn: Mr. Padgett padgettshorelineCa-)_yahoo.com Peninsula Marine Towing and Salvage PO Box 501 Port Bolivar, TX 77650 Ph: 409-252-3215 Fax: 409-252-4165 Attn: Dewayne Stratton peninsulamarine77(a),yahoo.com Crawley Shoreline Construction 225 Jordan Baytown, TX 77520 Ph: 281-383-3665 Fax: 281-513-4018 rcrawley(a-)crawl eyshoreline.com TDC Constructors, Inc. P.O. Box 6139 Kingwood, TX 77325 Ph: 713.550.6119 Fax: 713.568.2527 Attn: Wayne Doyle wayne(a7td cconstructors. com Lester Contracting, Inc. P.O. Box 986 Port Lavaca, TX 77979 Ph: 361.552.3024 Fax: 361.552.4049 Attn: Ken Lester ken (aD-lestercontracting.com AAR Incorporated 6640 Signat Rd. (HUB VENDOR) Houston, TX 77041 Ph: 713-466-6800 Fax: 713-466-4234 Attn: Dwain Bankston dwain(a),aarinc.net Boyer, Inc. 8904 Fairbanks N.Houston Rd. Houston, TX 77064 (HUB VENDOR) Ph: 713-466-5395 Fax: 713-896-0411 Attn: Mark Boyer lboyer(d7boyerinc.com Cherry Demolition 6131 Selinsky Rd. (HUB VENDOR) Houston, TX 77048 Ph: 713-987-0000 Fax: 713-987-0629 Attn: Mike Umholtz mikeu cherrydemolition.com Gulf States Demolition 526 Kingwood Dr. #132 Kingwood, TX 77339 Ph: 713-819-2598 Fax: 888-863-1235 Attn: Donnie Jeffcoat donniegulfstates(cD-yahoo.com Huffman Construction, Inc. 761 Cherokee Ave. Port Neches, TX 77651 Ph: 504-301-7008 Fax:504-754-7825 Attn: Michael Huffman michael _huffmanconstructioninc.com Sea Quest Recovery LLC 1772 Hialeah Dr. Seabrook, TX 77586 Ph: 281-235-3805 Fax: 281-941-9286 Attn: Joel Cron iennifercron 1214(c--)yahoo.com A & R Demolition 13201 FM 812 Del Valle, TX 78617 Ph: 512-243-2913 Fax:512-243-2990 Attn: Courtney Stephenson Email: Courtney(a)ardemolition.com E.W. Wells Group 3100 Main St. # 45 Dallas, TX 75226 Ph: 214-421-2700 Fax: 214-421-3132 Attn: Jason Spencer iason(a)wellsgroup.us Anderson Excavating Co. 920 Dorcas St. Omaha, NE 68108 PH: 402-345-8800 Fax: 402-345-8810 Attn: Tom Kuehl andersonexcavatinqco(a)hotmail.com Bayshore Sun Publish Dates: February 03, 2010 February 10, 2010 G REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8, 2010 Requested By: Tim Tietiens Department: Planning Report: _Resolution: X Ordinance: _ Exhibits: Resolution Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: _YES _—NO SUMMARY A Resolution declaring the City of La Porte's objection to a 128-unit rental housing complex being proposed for funding under the Low Income Housing Tax Credit Program, through the Texas Department of Community Affairs. Action Required by Council: Consider approval of a Resolution declaring opposition to the development of a low and very low income 128-un,�ent�l housing complex near the corner of South Broadway and McCabe Road. _y q Ron Bottoms" ity Manager Date RESOLUTION NO. .2 0 RESOLUTION DECLARING CITY COUNCIL OPPOSITION TO THE CONSTRUCTION OF A LOW AND VERY -LOW INCOME RENTAL HOUSING COMPLEX NEAR THE CORNER OF SOUTH BROADWAY AND Mc CABE ROAD IN LA PORTE, TEXAS. WHEREAS, during a 2-22-10 workshop, the City Council for the City of La Porte was presented with a notice regarding a 128 unit rental housing complex being proposed for funding under the Low Income Housing Tax Credit Program (LIHTC) through the Texas Department of Housing and Community Affairs (TDHCA); and WHEREAS, the proposed project is intended to consist of units restricted to only clients of 60%, 50% and 30% of the area median family income thereby requiring 100% of the units to be income restricted; WHEREAS, a thorough analysis of city regulations indicates that a project of this size would require regulatory relief in order to be built at the subject site; and WHEREAS, the area of La Porte in which the project is proposed has existing multi- family rental housing complexes that serve low and moderate families and at least one that is currently closed and vacant; and WHEREAS, the project developer has made no attempt to contact the city to discuss plans for this proposed development or their development history; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS THAT: SECTION 1. The City Council of the City of La Porte objects to said construction of the 128 unit multi -family rental project proposed on 9.571 acres located near the corner of South Broadway and McCabe Road in LaPorte. SECTION 2. The Planning Department is hereby directed to notify the Texas Department of Housing and Community Affairs (TDHCA) of the position of the City by serving them with a certified copy of this resolution and to attend appropriate public hearings of the TDHCA regarding this project. PASSED AND APPROVED this the 8 h day of March, 2010. CITY OF LA PORTE, TEXAS ATTEST: i ity ecretary C ty Attorney rw z REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8, 2010 Requested By: Heather Weger Department: Human Resources Report: Resolution: Ordinance: X Exhibits: Stop Loss Quotes 9 month and 12 month Exhibits: Stop Loss Distribution List Exhibits WillisHRH Recommendation Budget Source of Funds: Account Number: Amount Budgeted: %315,000 Amount Requested: Budgeted Item: YES NO SUMMARY & RECOMMENDATION The City received proposals for our Medical Stop Loss Coverage on February 18th. Unimerica, our current Stop Loss Carrier, is the low bidder. Based on the current information, staff recommends renewing our Stop Loss Coverage with Unimerica at a premium of $265,857 for a 9 month policy period. The policy period is being adjusted, to allow the City to align the Stop Loss Coverage renewal with all other coverages. The deductible will remain the same at $145,000 per employee. A Representative with Willis will be here Monday night to answer any questions. ove the enewal of the Stop Loss Coverage with Unimerica for a 9 month policy period at a premium of ,857. tovW for CitVCogncil Agenda Bottom , City Manager Date City of LaPorte Stoploss Distribution List 2010 ,., Stop Loss Insurance Services lJohn Rowland Incumbent 800 944 7659 X 3013 1/27/2010 irowlandC�americanstoploss. com HCC Benefits Corporation Vicki Burgess 1-972-381-4847 1/27/2010 Vburgess(cbhcclife. com Sun Life Financial Ryan White 713-236-8340 x.224 1/27/2010 ryan.white0sunlife.com Symetra Life Insurance Co Fred Burkacki 1-512-219-4002 1/27/2010 Fred. bu rkackisymetra. corn HM Insurance Group John Perrin 281-379-5421 1/27/2010 John. perrinCcDhighmarklife.com Arbor Benefit Group Karen Harrison 1-860-674-9748 x.15 1/27/2010 karen hlcDarborbg. com Humana Gena Phillips 713-513-3921 1/27/2010 gphillipsl CcD-humana.com ING Mike Goerner 713-881-8784 1/27/2010 m ike. goerner(cDus. ing. com Cairnstone Chris Miller 303-797-2224 1/27/2010 cm it ler(cDcai mstone. com nip, Willis of Texas, Inc. 920 Memorial City Way Suite 500 Houston, Texas 77024 713-625-1167 TO: Ron Bottoms FROM: Neal Welch Lesley Hagen cc: Heather Weger DATE: March 3, 2010 RE: Stop Loss RFP, #09502 On January 27, 2010, we distributed 10 RFPs for the stop loss coverage. We received 5 responses in addition to a renewal proposal. The current carrier Unimerica is a United Health Care company. The City has had an average of two stop loss claims per contract year in past years. This year the City had two claimants hit the stop loss deductible. There are two potential large claimants for the coming stop loss year. Unimerica's initial renewal increase was 6.7%. During the Best and Final offer process we were able to negotiate the renewal increase down to 2.6% (approx. $12,928 annually). The incumbent, Unimerica now has the lowest premium for the correct coverage. Our recommendation is to stay with Unimerica. If the City decides to change their plan year to a January 1 effective date they can terminate the 12 month contract with 30 days notice or the City can renew with Unimerica for the 9 month contract in 2011. Unimerica still has the lowest premium for the nine month contract. Thank you for discussing the renewal and we look forward to answering questions at the upcoming City Council meeting. CADocuments and Settings\WegerMLocal Settings\Temporary Internet Files\Content.Outlook\Hl5BB4UU\Stop Loss Recommendation.doc V! m x *' d F W t Q) N IL J to O J CL U0 .0 CD F E 3 I I Eo i l w w w oQ i w w a � - 8 CR o a SS p m m ++ �. w r g QQ ! 10 P 3 73 IN g a w F o w z y j C � o I w i r i i I Q W cs Y g$ 8 R I w p Q w U- - e c E O g w w V E wI w N IE z 8 N j E ES m< w i qg I I g c m Q i m eV N a •'f iW n W - o • v w Z Z p w - oN 8 w N a E w I Q Z a Z o I Q N w Y z C _ c a O N 14 w m w < w i w � 0 m $ g ��e $ TI z m y i m 2 c m � Sg 8 $ �� i` c $ � .' s k= m - E � g ,'�, � g g w 8 � � g w $ � g n Wok' - I � a m I I i I I I 1 I i f I I I I I i i g i s W m( a{ E 'Q V"1TTi.CT Fnu CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8.2010 Requested By Mayor Beasley Department: U Y uacil Report: Resolution: Ordinance: X Exhibits: Ordinance Exhibits: Election Reports Appropriation Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION City Council to approve an ordinance declaring results of the City of La Porte Run-off Election held on February 27, 2010. ordinance A - Ron Bottdms, City Manager �/5 4 Da e ORDINANCE NO. 2010- J L )-(o AN ORDINANCE DECLARING THE RESULTS OF A RUNOFF ELECTION HELD IN THE CITY OF LA PORTE ON FEBRUARY 27, 2010, FOR THE ELECTION OF A COUNCILPERSON-AT- LARGE --POSITION Al FINDING COMPLIANCE WITH THE OPEN MEETINGS LAWf AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, there was held in the City of La Porte on the 27th day of February, 2010, an runoff election for the purpose of electing a Councilperson-at -Large- -Position A; all in accordance with Section 8.10 of the Home Rule Charter of the City of La Porte; and WHEREAS, there were cast at said election for the following listed persons the number of votes opposite their respective names: COUNCILPERSON-AT-LARGE--POSITION A David L. Janda, Jr.� John P. Zemanek, Jr.� as shown in the official runoff election returns heretofore delivered by the Election Manager and officials to the Mayor and City Council of the City of La Porte and submitted to the City Council. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTS: Section 1. That said runoff election was duly called and notice thereof given in accordance with law; that said runoff election was held in the manner required by law; that due returns of said election have been made by the proper officers; that said returns have been canvassed by the City Council of the City of La Porte; that said runoff election has resulted in the election of the following named person, to -wit: COUNCILPERSON-AT-LARGE--POSITION A 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 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 from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 8th day of March, 2010. ATTEST: Martha A. Gillett City Secretary APPRO Ds a;7ev 4L, Knox W. Askins City Attorney By: 2 r o � � \ k 7 o I k / \ 0 7 r Q 7 M03 f \ o \ ' t 0 k . o f 0 % S ILO \ 00 0 0 %D k \ i§ 0 ikk � wo OD W'; 4o 00 I N OD J o (n On N W 0 0 0 0 0 �FFFrn Ui A W N -� (D J 00 0) (D 00 N OD N J A W - -A-� W O W W O O N O O W O (O (D (o (D (D to to (D (0(0 (D (D (o (D (D (o (D (D W (0 NNE -+-+ O) W W O a) IN OCD W O 0 0 0 0 0 -•(D Ut JJ A W 00 A (n A W J N O O Ui OD (D A N N W O Ut 0000 W (D C7 3 n � W 3 K N � m 0 N O O 3 O V! L ID rt C. C CD 3 0 O CD C 3 David L. Janda, Jr. John P. Zemanek, Jr. Totals w n n � � 3 0 m `o b3 70 N N N i W N 'r o � O' W tg � Wrn to !� o c o o Z s: 0 CD -, O�� O .-ti 3 C aa CL A A ?� r• " N O h rt tD m m r W N 3 0 0to Cf) F L -p N � OD 3 O O ¢O 4 m O � m � C, G W cfl ro ro m ro ON O O N O -4 O O W 0 d o 0 O ��A O O W O O O co O CJ �' O co 0 k ƒ ( \s « >a_ 0 1ga a 0 OD § g K k \ 0 0 \ / a $ % \ w e § to § 2 i it \ 0 0. � V 0 a o m ° ~ x o 70 $ � � o ^ i � 0 k f & « G a 0 0 % = � � 2 / / g o of \oe _ � � N � « 5t ® / 0 $% 0 CD % \ C //r & »&_ - 9r� � 7 \ 7 f ƒ\ = sf$ 3 I fR2 9 CO k k 7 A f LO e co \ C.- ƒ � 0 � � 0 g, -0 , o m / 7 o t » D 00 % O C- k o _ $ cr \\mi, l x � � � E w o 00 \ 0 0 0/ f � k ƒ 0� 2 « k 0 Cl) g 7 , k tt t « »a© 0 @ram f ,gIOR & o 0 0 ? 3 \ k � © 0 0 i § 2 - / / ao + � � � � 0 w oCDOD m \ � � S $$ / to � � O k = 2 � maw 0 f \ $ $ ( g = a \ CO w � � N / -to-, O w CD Cli * ® ~ $ $ 7 /. % ƒ A �4 k� o c It a c R� � ' C A < N .00 0 o N N CO/I A O C 3 n D --i O m Z C 3 aS CD 0 O CD N 00 CO 7 a O a '" m CJl c� 11 v 6 m m O A CT O O Co Cp O UI O A --J IV A 0 0 W V 0 0 0 0 0 O O O N V O O O W O O O O 00 N 0 0 0 0 0 N O (fl W O C7t A O O c0 A (71 W O O N 00 CT O CT O O 0 0 0 � o 0 0 CD a O �1 m a m 0 3 O �t n n in m CD O O 7 N (� N O IN CA -� II O � O O O O IV O y O M 0 m 9 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8, 2010 Requested By: Michael Dolby, Director of Finance Department: FINANCE Report: xx Resolution: Ordinance_ Exhibits: Amount Budgeted Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: YES NO Exhibits: Receive the financial report from auditors with financial report to be distributed at the meeting, auditors to make presentation, fiscal affairs committee to present report to council regarding prior meeting with auditors. I,- [a, / ti) Ron $ottoms, City ManaLrer Date CITY OF LA PORTE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended September 30, 2009 Prepared by: Department of Finance City of La Porte Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2009 TABLE OF CONTENTS INTRODUCTORY SECTION Paqe Letter of Transmittal 3 Organization Chart 9 GFOA Certificate of Achievement 10 List of Elected Officials 11 FINANCIAL SECTION Independent Auditors' Report 15 Management's Discussion and Analysis 17 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets 27 Statement of Activities 28 Fund Financial Statements: Balance Sheet — Governmental Funds 30 Reconciliation of the Governmental Funds Balance Sheet to Statement of Net Assets 33 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds 34 Reconciliation of the Statement of Revenues, Expenditures, and Changes In Fund Balances of Governmental Funds to the Statement of Activities 37 Statement of Net Assets — Proprietary Funds 38 Statement of Revenues, Expenses and Changes in Fund Net Assets — Proprietary Funds 40 Statement of Cash Flows — Proprietary Funds 42 Notes to the Financial Statements 45 Required Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balances — General Fund 79 Schedule of Revenues, Expenditures, and Changes in Fund Balances — Grant Special Revenue Fund 80 Notes to the Required Supplementary Information 81 Combining Financial Statements — Nonmajor Governmental Funds: Combining Balance Sheet — Nonmajor Governmental Funds 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds 88 Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual: 93 Street Maintenance Sales Tax Fund 94 Community Investment Special Revenue Fund 95 Hotel/Motel Occupancy Tax Special Revenue Fund 96 Tax Increment Reinvestment Zone One Special Revenue Fund 97 Section 4B Sales Tax Fund 98 Transportation and Other Infrastructure Fund 99 1998 General Obligation Bonds Fund 100 2000 Certificate of Obligation Bonds Fund 101 2000 General Obligation Bonds Fund 102 iii City of La Porte Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2009 TABLE OF CONTENTS 2002 General Obligation Bonds Fund 103 2004 General Obligation Bonds Fund 104 2005 General Obligation Bonds Fund 105 2005 Certificate of Obligation Bonds Fund 106 2006 Certificate of Obligation Bonds Fund 107 2006 General Obligation Bonds Fund 108 Debt Service Fund 109 2007 Certificate of Obligation Bonds Fund 110 Capital Projects Fund 111 Supplementary Individual Fund Financial Statements and Schedules — General Fund 113 Schedule of Revenues — Budget and Actual 114 Schedule of Expenditures — Budget and Actual 115 Combining Financial Statements — Nonmajor Enterprise Funds: 121 Combining Statement of Net Assets 122 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 123 Combining Statement of Cash Flows 124 Combining Financial Statements — Internal Service Funds: 125 Combining Statement of Net Assets 126 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 127 Combining Statement of Cash Flows 128 Capital Assets Used in the Operation of Governmental Funds: 130 Schedule by Source 131 Schedule by Function and Activity 133 Schedule of Changes by Function and Activity 134 STATISTICAL SECTION Net Assets by Component 137 Changes in Net Assets 138 General Government Tax Revenues by Source 140 Fund Balances of Governmental Funds 142 Changes in Fund Balances of Governmental Funds 144 Assessed Value and Estimated Actual Value of Taxable Property 146 Property Tax Rates - Direct and Overlapping Governments 148 Principal Property Taxpayers 150 Property Tax Levies and Collections 151 Ratios of Outstanding Debt by Type 152 Ratios of General Bonded Debt Outstanding 154 Direct and Overlapping Governmental Activities Debt 155 Legal Debt Margin Information 156 Pledged Revenue Coverage 158 Demographic and Economic Statistics 159 Principal Employers 160 Full-time Equivalent City Government Employees by Function 161 Operating Indicators by Function 162 Capital Asset Statistics by Function 164 TPA INTRODUCTORY SECTION CITY OF LA PORTE Established 1892 February 26, 2010 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 are pleased to submit the Comprehensive Annual Financial Report for the City of La Porte, Texas for the fiscal year ended September 30, 2009. This report is published to provide the City Council, City staff, our citizens, our bondholders and other interested parties with detailed information concerning the financial condition and activities of the City government. This report consists of management's representations concerning the finances of the City of La Porte. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the City of La Porte's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of La Porte's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of La Porte's financial statements have been audited by Pattillo, Brown & Hill, LLP, 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, 2009 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, 2009, are fairly presented in conformity with GAAP. The independent auditor's report is presented as a component of the financial section of this report. 3 604 W. Fairmont Pkwy. • LaPorte, Texas 77571 • (281) 471-5020 The independent audit of the financial statements of the City of La Porte included a federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of La Porte's separately issued Single Audit Report. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of La Porte's MD&A can be found immediately following the report of the independent auditors. Profile of the City The City of La Porte, incorporated in 1892, is located in the southeast quadrant of Harris County and is bounded on the north by the Houston ship channel, on the east by Galveston Bay and the south by the Bayport channel. The City of La Porte currently encompasses 19 square miles and serves a population of 36,779. 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 fund 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 for developing a proposed 4 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 September. The appropriated budget is prepared by fund, function (e.g., public safety) and department (e.g., police). The directors are given latitude to approve transfers of appropriations within a department. Transfers of appropriations between funds, however require the special approval of the city council. Budget -to -actual comparisons are provided in financial reports for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page 79 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 84. 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. The County 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. The essential objectives of the comprehensive plan are as follows: ❖ It is a plan to guide the future physical development and redevelopment of the community; ❖ The time frame is long, extending over a twenty-year horizon; ❖ It encompasses a large geographic area including the corporate limits and ETJ of the community; ❖ It is general in nature, allowing some issues to be resolved and many decisions to be made; ❖ It articulates ideas in a framework of goals and objectives, policies and actions, and plans and projects; ❖ It is intended foremost, to serve as a continuing guide to decision -making, to provide a common direction and to provide stability as issues are addressed and future decisions are made. Residential Development. Neighborhoods are one of La Porte's greatest assets as they form a foundation for a sound quality of life. The City is made up of several distinct neighborhood areas, each with somewhat different physical characteristics such as the age of housing, street configuration, and the sizes of structures and lots. Much of the City's overall image and identity is due to the unique character of its neighborhoods and these distinguishing features should, therefore, be preserved. Neighborhoods that are safe, well maintained and have character will maintain property values and thus maintain a sound neighborhood environment and a stable residential tax base. The attractive appearance and environmental quality of existing and future low -density residential neighborhoods should be protected and improvements made where necessary to maintain the value of properties and enhance the quality of life. 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. 0 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 25.58 months. The average yield on investments was 1.38% 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 is a member of a cost sharing multiple employer pension system administered by the State of Texas for its emergency services employees. 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 65 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. 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, 2008. This was the twenty-eighth 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 determine its eligibility for another certificate. In addition, the government also received the GFOA's Distinguished Budget Award for its annual budget document. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide and a communications device. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance and administration department. We would like to express our appreciation to 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 2sficIly s itted, Ron Bottoms Mic ael G. Dolby, CPA City Manager Director of Finance CC � \ } f � \ ... } ƒ � � © � £ ! f £} § ) � \ � i 2 »- W N ® ® | § ) , ) � k � 7 - $ Z � 7 1 ! | \\ \ \ \! i $ ■ 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, 2008 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) achieve the highest standards in government accounting and financial reporting. oFF,, gg4y /4100000-- SIAy President Executive Director 10 CITY OF LA PORTE LIST OF ELECTED OFFICIALS GEORGIA A. MALONE COUNCIL PERSON AT LARGE A s` MICHAEL MOST COUNCIL PERS DISTRICT 1 DARYL LEON. COUNCIL PER DISTRICT 3 LOUIS RIGBY COUNCIL PERSON DISTRICT 5 BARRY BEASLEY MAYOR 11 JOHN BLACK MAYOR PROTEM AT LARGE B UCK ENGELKEN )UNCIL PERSON DISTRICT 2 )MMY MOSER UNCIL PERSON DISTRICT 4 MIKE CLAUSEN COUNCIL PERSON DISTRICT 6 12 FINANCIAL SECTION 13 14 t,� PATTILLO, BROWN & HILL,L.L.P. CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of LaPorte, 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, 2009, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of La Porte, Texas, as of September 30, 2009, and the respective changes in financial position and, where applicable, cash flows, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 401 WEST HIGHWAY 6 ■ P. O. BOX 20725 ■ WACO, TX 76702-0725 ■ (254) 772-4901 ■ FAX: (254) 772-4920 ■ www.pbhcpa.com AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 ■ HILLSBORO, TX (254) 582-2583 TEMPLE, TX (254) 791-3460 ■ WHITNEY, TX (254) 694-4600 ■ ALBUQUERQUE, NM (505) 266-5904 15 In accordance with Government Auditing Standards, we have issued our report dated February 26, 2010, 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 grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The Management's Discussion and Analysis on pages 17 through 23, and budgetary comparison information on pages 79 through 81 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 required 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 financial statements and, accordingly, we express no opinion on them. February 26, 2010 16 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2009 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, 2009. 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 $109,707,373 (net assets). Of this amount $19,310,982 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund designation and fiscal policies and working capital requirements. • The City's total net assets increased by $7,761,918. This increase is due to capital acquisitions in the governmental type funds. • As of the close of the current fiscal year, the City of La Porte's governmental funds reported combined ending fund balances of $37,816,082. Of this amount, $34,856,359 (92%) 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 $13,395,364 approximately (45%) of the total general fund expenditures. OVERVIEW OF THE FINANCIAL STATEMENTS 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, 2009 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 20 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, 2007 Certificates of Obligation Bond, Grant and Capital Projects Fund, all of which are considered to be major funds. Data from the other 16 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 27-37 of this report. Proprietary funds - The City maintains two types of proprietary funds. Proprietary funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses proprietary funds to account for its utilities, airport, water authority, convention center and golf course. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses its internal service funds to account for its motor pool services, technology services and 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 45-75 of this report. 18 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2009 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 77-81 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 82-111 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of La Porte, assets exceeded liabilities by $109,707,373 at the close of the fiscal year. By far the largest portion of the City's net assets ($72,873,831) 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 2009 2008 2009 2008 Current and other assets $ 53,527,689 $ 60,577,388 $ 5,672,420 $ 7,766,710 Capital assets 62,533,458 51,131,865 46,648,862 42,818,003 Total Assets 116,061,147 111,709,253 52,321,282 50,584,713 Long term liabilities 43,417,622 42,799,774 7,165,771 7,744,081 Other liabilities 6,967,959 8,434,625 1,123,704 1,370,028 Total Liabilities 50,385,581 51,234,399 8,289,475 9,114,109 Net Assets: Invested in capital assets, net of related debt 32,667,469 24,922,673 40,206,362 35,483,003 Restricted 16,169,693 16,566,966 1,352,867 2,188,240 Unrestricted 16,838,404 18,985,215 2,472,578 3,799,361 Total Net Assets $ 65,675,566 $ 60,474,854 $ 44,031,807 $ 41,470,604 Total 2009 2008 $ 59,200,109 109,182,320 $ 68,344,098 93,949,868 168,382,429 162,293,966 50,583,393 8,091,663 50,543,855 9,804,653 58,675,056 60,348,508 72,873,831 17,522,560 19,310,982 60,405,676 18,755,206 22,784,576 $ 109,707,373 $ 101,945,458 An additional portion of the City's net assets $17,522,560 (16%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets of $19,310,982 (18%) may be used to meet the government's ongoing obligations to citizens and creditors. As of September 30, 2009, 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, 2009 Analysis of the City's Operations — the following table provides a summary of the City's operations for the year ended September 30, 2009, with comparative totals for year ended September 30, 2008. Governmental activities increased the City of La Porte's net assets by $5,200,712 . Business -type activities increased the City's net assets by $2,561,206 . Revenues: Program Revenues: Charges for Services Operating grants and contributions Capital grants and contributions General revenues: Property taxes, levied for general purposes Property taxes, levied for debt service Industrial payments Franchise taxes Sales tax Grants not specified for a specific program Unrestricted investment earnings Miscellaneous Total revenues Expenses: General Government Public Safety Public Works Health and Sanitation Culture and Recreation Interest on Long-term debt Water Services Sewer Services Airport Bay Forest Golf Course Sylvan Beach Convention Center Total Expenses Change in net assets before transfers Transfers Change in net assets Net assets - beginning Net assets - ending City of La Porte's Changes in Net Assets Governmental Activities 2009 2008 Business -Type Activities 2009 2008 Total 2009 2008 $ 7,042,938 $ 5,622,610 $ 9,005,792 $ 11,060,721 $ 16,048,730 $ 16,683,331 5,165,295 4,647,718 - - 5,165,295 4,647,718 1,259,614 234,630 1,785,653 2,337,630 3,045,267 2,572,260 14,389,535 11,802,564 - - 14,389,535 11,802,564 2,001,702 1,880,095 2,001,702 1,880,095 10,554,872 7,958,522 10,554,872 7,958,522 2,160,425 2,165,343 2,160,425 2,165,343 5,787,406 5,803,077 5,787,406 5,803,077 2,000 - - - 2,000 - 687,567 1,782,572 72,814 199,060 760,381 1,981,632 90,599 115,351 - - 90,599 115,351 49,323,806 42,012,482 10,864,259 13,597,411 60,188,065 55,609,893 11,442,946 10,056,369 - - 11,442,946 10,056,369 15,495,372 16,267,453 15,495,372 16,267,453 8,095,274 4,348,281 8,095,274 4,348,281 2,378,808 2,465,327 2,378,808 2,465,327 4,222,945 4,004,206 4,222,945 4,004,206 1,527,041 1,694,638 - - 1,527,041 1,694,638 - - 4,832,857 6,630,986 4,832,857 6,630,986 2,603,424 2,247,031 2,603,424 2,247,031 183,186 155,970 183,186 155,970 1,436,792 1,361,970 1,436,792 1,361,970 - - 25,649 225,353 25,649 225,353 43,162,386 38,836,274 9,081,908 10,621,310 52,244,294 49,457,584 6,161,421 3,176,208 1,782,351 2,976,101 7,943, 771 6,152,309 (778,855) (3,532,936) 778,855 3,532,936 - - 5,382,565 (356,728) 2,561,206 6,509,037 7,943,771 6,152,309 60,474,854 60,831,582 41,470,601 34,961,564 101,945,455 95,793,146 $ 65,857,419 $ 60,474,854 $ 44,031,807 $ 41,470,601 $ 109,889,226 $ 101,945,455 PIC CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2009 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS Governmental funds — The focus of the City of La Porte's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of La Porte's governmental funds reported combined ending fund balances of $37,816,082. Approximately 92% of this total amount ($34,856,359) 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 ($257,150), 2) to provide for inventories ($102,203), 3) to pay for debt service ($2,151,483), 4) to provide for municipal court building security ($129,075), 5) to provide for municipal court technology ($15,182), 6) to provide for park zone ($135,868), and 7) to provide for confiscated funds ($137,819, 8) to provide for animal control ($1,412 ), 9) to provide for judicial fund ($12,064). The actual General Fund fund balance decrease for fiscal year 2009 was ($353,949) which is $1.8 million better than originally projected since revenues were $1.38 million higher than projected and expenditures were less than budget. The 2007 Certificate of Obligation Fund balance decreased by ($3,167,681)due to expenditures of bond proceeds in the current fiscal year. The Grant Fund balance decreased by ($406,026) due to the expenditure of grant funds for capital items. The Capital Projects Fund balance increased by $2,960,329 due to interfund transfers for construction of capital projects. Other governmental fund balances decreased in 2009 by ($4,444,988) due to decreased revenues and increased spending for capital projects. 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-$755,662 , Airport - $299,779 , La Porte Area Water Authority - $1,621,835, Sylvan Beach Convention Center - $198,829 , and Bay Forest Golf Course — ($403,527). The change (decrease) in net assets of the proprietary funds in 2009 was as follows: Utility - $2,737,837 , which increased due to capital contributions, Airport -($126,984), which decreased, La Porte Area Water Authority-$233,047, which increased due to capital contributions, Sylvan Beach Convention Center - $1,229, which has closed due to hurricane damage and Bay Forest Golf Course-($283,923), which decreased. 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 ($105,660) or -0.4% . The City increased its anticipated revenues by $1.0 million. This revenue included an upturn in industrial district payments, property tax and fines and forfeitures. Variances noted in the general fund are due to City Council appropriating additional capital projects, increased spending for public safety projects, salary savings and anticipated lease of property. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets - The City of La Porte's investment in capital assets for its governmental and business -type activities as of September 30, 2009 amounts to $109,182,319 (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 Waste Water Treatment Plant improvements $6.1 million. • Construction in progress Main Street revitalization program for $1.8 million. • Construction in progress for Sports Complex for $2.3 million. 21 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2009 Capital Assets at Year-end Net of Accumulated Depreciation Land Buildings Equipment Improvements Infrastructure Construction in Progress Total Governmental Activities 2009 $ 9,703,983 21, 897, 355 6,255,961 3,564,613 15, 546,423 5,565,123 $ 62,533,458 Business -type Activities 2009 $ 2,308,777 278,407 174,693 33,786,089 10,100, 895 $ 46,648,861 Total $ 12,012,760 22,175,762 6,430,654 37,350,702 15,546,423 15,666,018 $ 109,182, 319 Additional information of the City of La Porte's capital assets can be found in Note 4 on pages 57-59 of this report. Debt Administration — At the end of the current fiscal year, the City of La Porte had bonded debt payable of $44,077,500 Of this amount, $37,635,000 comprises bonded debt backed by the full faith and credit of the government and $6,442,500 represents bonds secured solely by water and sewer revenues. General Obligations Revenue Bonds Payable Certificate of Obligations Total Outstanding Debt at Year End Bonds Payable Governmental Activities 2009 $ 15,190,000 22, 445, 000 $ 37,635,000 Business -type Activities 2009 4,605,000 1,837,500 $ 6,442,500 Totals $ 15,190, 000 4,605,000 24,282,500 $ 44, 077, 500 The City of La Porte maintains an "Aa3", "A+", "AA" by Moody's, Standard and Pooes and Fitch respectively for general obligation debt. The revenue bonds have been rated "AA" 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 60-64 of this report. 22 CITY OF LA PORTE, TEXAS Management's Discussion and Analysis For the Year Ended September 30, 2009 ECONOMIC FACTS AND NEXT YEAR'S BUDGETS AND RATES The unemployment rate for the City of La Porte is currently 9.4 percent, which is an increase from a rate of 5.2 percent a year ago. This compares to the state's average unemployment rate of 8.2 percent which is less than the national average rate of 9.8 percent. During the upcoming year, the City will closely monitor the volatility in the housing market. Although our area has not been adversely affected by home foreclosures, we will observe economic changes due to the recession. Total assessed property value for all residential and commercial property in the City of La Porte exceeded $2.0 billion for fiscal year 2009. The trend for total assessed property values has been steadily increasing each year with an average annual increase of 7 percent over the past 5 years. However, in the upcoming fiscal year, we anticipate that residential and commercial values will remain flat. Sales tax receipts have decreased 3% this fiscal year due to a decrease in economic activity. This revenue source is the most volatile and subject to decline if an economic slowdown occurs. 2. 0. Assessed Property Valuations Sales Tax Collections (in billions) (in millions) 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 REQUEST FOR INFORMATION This financial report is designed to provide our citizens, customers and creditors a general overview of the City's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Director of Finance, 604 West Fairmont Parkway, La Porte, Texas, 77571. 23 24 BASIC FINANCIAL STATEMENTS 25 W CITY OF LA PORTE, TEXAS Statement of Net Assets September 30, 2009 ASSETS Cash and cash equivalents Investments Receivables, net of allowance for uncollectibles Accounts receivable Taxes receivable Due from other governments Accrued interest receivable Other Internal balances Materials and supplies inventories at cost Deferred contributions Deferred issuance costs Restricted assets: Cash and cash equivalents restricted for: Customer service deposits Debt service Capital assets: Land Buildings and improvements Improvements other than buildings Infrastructure Machinery and equipment Construction in progress Accumulated depreciation Total assets LIABILITIES Accounts payable Accrued salaries payable Unearned revenue Retainage payable Other current liabilities Interest payable Customer deposits Noncurrent liabilities: Due within one year Due in more than one year Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Debt service Economic development Capital improvements Grants and state programs Unrestricted Total net assets See accompanying notes to financial statements. Primary Government Governmental Business -type Activities Activities Total $ 24,732,761 $ 805,465 $ 25,538,226 22,638,325 2,838,329 25,476,654 1,887,230 929,243 2,816,473 1,691,911 - 1,691,911 1,156,116 - 1,156,116 24,446 2,885 27,331 120,323 - 120,323 144,706 (144,706) - 138,810 4,879 143,689 371,718 - 371,718 621,343 621,343 9,703,983 34,668,087 9,223,362 33,943,388 15,756,882 5,565,123 (46,327,367) 116,061,147 5,784,373 587,164 113,868 340,355 87,563 54,636 1,904,000 41,513,622 50,385,681 32,667,469 2,139,698 2,395,000 9,954,216 1,680,779 16,838,404 $ 65,675,566 27 495,869 740,456 2,308,777 1,172,730 76,569,644 530,564 10,100,895 (44,033,748) 52,321,282 491,832 88,594 3,710 8,732 34,967 495,869 817,500 6,348,271 8,289,475 40,206,362 1,352,857 2,472,578 495,869 740,456 12,012,760 35,840,817 85,793,006 33,943,388 16,287,446 15,666,018 (90,361,115) 168,382,429 6,276,205 675,758 113,868 344,065 96,295 89,603 495,869 2,721,500 47,861,893 58,675,056 72,873,831 3,492,565 2,395,000 9,954,216 1,680,779 19,310,982 $ 44,031,807 $ 109,707,373 CITY OF LA PORTE, TEXAS Statement of Activities For The Year Ended September 30, 2009 Program Activities Expenses Governmental activities: Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Services Contributions Contributions General government $11,442,946 $ 3,060,864 $ - $ - Public safety 15,495,372 1,681,028 5,092,923 - Public works 8,095,274 4,610 - 1,259,614 Health and sanitation 2,378,808 1,848,717 59,112 - Culture and recreation 4,222,945 447,719 13,260 - Interest on long term debt 1,527,041 - - - Total governmental activities 43,162,386 7,042,938 5,165,295 1,259,614 Business -type activities: Water services 4,832,857 4,520,092 - 1,785,653 Sewer services 2,603,424 3,362,791 - - Airport 183,186 53,325 - - Golf course 1,436,792 1,067,105 - - Sylvan beach convention ctr 25,649 2,479 - - Total business -type activities 9,081,908 9,005,792 - 1,785,653 Total government $ 52,244,294 $ 16,048,730 $ 5,165,295 $ 3,045,267 General revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service Industrial payments Franchise Public service Grants not specified for specific program Investment earnings Miscellaneous 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 Business -type Activities Activities Total $ (8,382,082) (8,721,421) (6,831,050) (470,979) (3,761,966) (1,527,041) (29,694,539) - $ (8,382,082) - (8,721,421) - (6,831,050) - (470,979) - (3,761,966) - (1,527,041) - (29,694,539) - 1,472,888 1,472,888 - 759,367 759,367 - (129,861) (129,861) - (369,687) (369,687) - (23,170) (23,170) - 1,709,537 1,709,537 $ (29, 694, 539) $ 1,709,537 $ (27, 985, 002) 14,389,535 - 14,389,535 2,001,702 - 2,001,702 10,554,872 - 10,554,872 2,160,425 - 2,160,425 5,787,406 - 5,787,406 2,000 2,000 687,567 72,814 760,381 90,599 - 90,599 (778,855) 778,855 - 34,895,251 851,669 35,746,920 5,200,712 2,561,206 7,761,918 60,474,854 41,470,601 101,945,455 $ 65,675,566 $ 44,031,807 $ 109,707,373 29 CITY OF LA PORTE, TEXAS Balance Sheet Governmental Funds September 30, 2009 ASSETS Cash and cash equivalents Investments Receivables, net of allowance for uncollectibles: Accounts Taxes Intergovernmental Accrued interest Other Due from other funds Materials and supplies inventories, at cost Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued salaries payable Due to others Due to other funds Retainage payable Deferred revenue Total liabilities Fund balances: Reserved for: Inventories Encumbrances Animal control Judicial fund Municipal court building security Municipal court technology fee Park zone Law enforcement training Confiscated funds Debt service Unreserved, designated for capital projects Unreserved/u ndesignated Unreserved, reported in nonmajor: Special revenue funds Capital projects funds Total fund balances Total liabilities and fund balances General $ 9,279,579 6,725,998 1,887,230 1,223,118 9,512 144,706 102,203 19, 372, 346 3,220,425 547,434 2,010,458 5,778,317 102,203 96,462 13,084 13, 382, 280 13, 594, 029 $ 19, 372, 346 See accompanying notes to basic financial statements. 30 2007 Certificates of Obligation Bonds Grant $ 115,215 1,913,767 116 2,029,098 35,133 192,530 227,663 1,801,435 1,801,435 $ 2,029,098 $ 163,908 78,234 1,156,116 134 1,398,392 175,869 4,864 588 1,203 182,524 31,807 1,412 12,064 129,075 15,182 135,868 17,467 137,819 735,174 1,215,868 $1, 398, 392 Capital Projects $ 5,893,292 4,238,371 5,958 10,137, 621 1,331,527 124,951 1,456,478 8,681,143 V,VV 1, ITJ $ 10,137,621 Other Governmental Funds $ 5,578,275 7,019,447 468,793 5,004 75 615,026 13,686,620 390,504 4,783 87,563 615,026 22,286 42,851 1,163, 013 128,881 2,151, 483 2,782,013 7,461,230 12,523,607 $ 13,686,620 Total Governmental Funds $ 21, 030,269 19, 975, 817 1,887,230 1,691,911 1,156,116 20,724 75 759,732 102,203 46, 624, 077 5,153,458 557,081 87,563 615,026 340,355 2,054,512 8,807,995 102,203 257,150 1,412 12,064 129,075 15,182 135,868 17,467 137,819 2,151,483 13,084 24,600,032 2,782,013 7,461,230 37, 816, 082 $ 46,624,077 31 32 CITY OF LA PORTE, TEXAS Reconciliation of the Governmental Funds Balance Sheet to Statement of Net Assets September 30, 2009 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. Deferred contributions are not current financial resources, therefore are not reported in the funds. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds Unavailable 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 Bond issuance costs Arbitrage Net OPEB obligation Net pension obligation Retainage payable Net assets of governmental activities See accompanying notes to basic financial statements. 33 $ 37, 816, 082 57,694,066 371,718 1,940,965 (54, 636) 10,600,139 (37,635,000) (302,015) (2,860,604) 621,343 (304,474) (1,554,831) (554, 740) (102,447) $ 65,675,566 CITY OF LA PORTE, TEXAS Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For The Year Ended September 30, 2009 REVENUES Property taxes Franchise taxes Sales taxes Industrial payments Other taxes Licenses and permits Fines and forfeits Charges for services Intergovernmental Interest Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Public works Health and sanitation Culture and recreation Debt service: Principal retirements Interest and fiscal charges Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Proceeds from sale of assets Total other financing sources (uses) General $ 13,436,413 2,160,425 2,958,648 10,292,030 91,187 641,614 1,668, 364 4,139,264 1,980 274,383 50,577 35,714,885 2007 Certificate of Obligation Bonds 37,880 37,880 Grant 164,206 13,611 4,866,333 3,109 47,961 5,095,220 7,166,624 - 296,878 12, 886, 570 - 721,659 2,620,919 - 3,920,201 2,087,069 - - 3,656, 961 - 50,030 1,169, 540 29,587,683 2,731,053 2,731,053 6,127,202 (2,693,173) 761,086 (7,378,796) 136,559 (6,481,151) Net change in fund balances (353,949) Fund balances —beginning 13,947,978 Fund balances ending $ 13,594,029 See accompanying notes to basic financial statements. 34 (474, 508) (474, 508) (3,167,681) 4,969,116 $ 1,801,435 491,902 5,480,670 (385,450) 550 (21,126) (20, 576) (406, 026) 1,621,894 $ 1,215,868 Capital Proiects 4,610 110,459 3,183 118,252 343,799 110,262 8,677,899 9,131, 960 Other Total Governmental Governmental Funds Funds $ 2,990,578 2,218,992 262,842 518,578 312,437 184,439 3,500 6,491, 366 2,061,858 250,311 122,419 1,695,000 1,572,212 2,486,504 8,188, 304 $ 16,426,991 2,160,425 5,177,640 10, 554, 872 609,765 641,614 1,832,570 4,469,922 4,868,313 610,270 105,221 47,457,603 9,869,159 13,858,540 6,663,539 2,087,069 3,817,253 1,695,000 1,572,212 15,556,898 55,119,670 (9,013,708) (1,696,938) (7,662,067) 12, 017, 037 (43, 000) 11, 974, 037 2,960,329 5,720,814 $ 8,681,143 1,453,222 (4,201,272) (2,748,050) (4,444,988) 16,968,595 $ 12,523,607 14,231,895 (12,118,702) 136,559 2,249,752 (5,412,315) 43,228,397 $ 37,816,082 35 !" 36 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, 2009 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances —total governmental funds: $ (5,412,315) 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 governmental activity capital outlays $15,556,898 exceeded depreciation $3,066,878 and losses of $318,412 from the disposition of capital assets in the current period. 12,171,608 Governmental funds report expenditures for costs of assets under construction that will be contributed to another entity. However, in the statement of activities, the cost of those assets will be expensed when the completed asset is transferred. 371,718 Governmental funds report capital outlay expenditures for costs of assets constructed that will be contributed to a proprietary fund. However, in the statement of activities, the cost of those assets were reclassified as a transfer to business -type activities. (3,329,143) Contributions of capital assets don't provide current financial resources, therefore, are not reported in the governmental funds. However, in the statement of activities, the contributions are reported as revenues. 1,259,614 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. 362,060 Governmental funds report bond proceeds as current financial resources. In contrast, the statement of activities treats such issuance of debt as a liability. Governmental funds report repayment of bond principal as an expenditure. In contrast, the statement of activities treats such repayments as a reduction in long-term liabilities. This is the amount by which proceeds exceeded repayments. 1,695,000 Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds: Accrued interest not reflected in governmental funds 2,722 Additional compensated absences not reflected in governmental funds (110,578) Amortization of bond issuance costs 30,451 Amortization of premium on bonds 11,998 Net OPEB obligation (1,554,831) Net pension obligation (554,740) Retainage payable (102,447) 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. 359,595 Change in net assets of governmental activities $ 5,200,712 See accompanying notes to basic financial statements. 37 CITY OF LA PORTE, TEXAS Statement of Net Assets Proprietary Funds September 30, 2009 Business -type Activities - Enterprise Funds La Porte Area Other utility Water Authority Funds ASSETS Current assets: Cash and cash equivalents $ 359,980 $ 159,362 $ 286,123 Investments 1,231,535 1,387,593 219,201 Receivables, net of allowance for uncollectibles 761,893 158,323 9,027 Accrued interest receivable 1,259 1,380 246 Due from other funds - - - Miscellaneous receivables - - - Material and supplies inventories, at cost 4,879 - - Restricted cash and cash equivalents for: Customer service deposits 493,984 - 1,885 Current debt service - 740,456 - Total current assets 2,853,530 2,447,114 516,482 Noncurrent assets. - Capital assets: Land 224,308 - 2,084,469 Buildings and improvements 57,620 - 1,115,110 Improvements other than buildings 52,704,210 15,306,000 8,559,434 Vehicles and equipment 480,804 6,130 43,630 Construction in progress 9,942,310 123,680 34,905 Less accumulated depreciation (31,578,943) (6,775,999) (5,678,806) Total noncurrent assets 31,830,309 8,659,811 6,158,742 Total assets 34,683,839 11,106,925 6,675,224 LIABILITIES Current liabilities: Accounts payable 375,041 81,113 35,678 Accrued salaries payable 64,880 - 23,714 Due to other funds - - 144,706 Unearned revenue - - - Retainage payable - 3,710 - Other current liabilities - - 8,732 Interest payable 25,361 9,606 - Accrued separation pay 30,000 - - Payable from restricted assets: Current portion of revenue bonds 262,500 525,000 - Customer deposits 493,984 - 1,885 Total current liabilities 1,251,766 619,429 214,715 Noncurrent liabilities: Revenue bonds, net of current portion 1,575,000 4,080,000 - Net pension obligation 66,655 - 20,997 Net OPEB obligation 214,946 - 50,085 Accrued separation pay 204,984 - 135,604 Total noncurrent liabilities 2,061,585 4,080,000 206,686 Total liabilities 3,313,351 4,699,429 421,401 NET ASSETS Invested in capital assets, net of related debt 29,992,809 4,054,811 6,158,742 Restricted for debt service 622,017 730,850 - Unrestricted (deficit) 755,662 1,621,835 95,081 Total net assets $ 31,370,488 $ 6,407,496 $ 6,253,823 See accompanying notes to basic financial statements. 38 Totals $ 805,465 2,838,329 929,243 2,885 4,879 495,869 740,456 5,817,126 2,308,777 1,172, 730 76, 569, 644 530,564 10,100, 895 (44, 033, 748) 46, 648, 862 52,465,988 491,832 88,594 144,706 3,710 8,732 34,967 30,000 787,500 495,869 2,085,910 5,655,000 87,652 265,031 340,588 6,348,271 8,434,181 40,206,362 1,352,867 Governmental Activities — Internal Service Funds $ 3,702,492 2,662,508 3,722 120,248 36,607 6,525,577 13, 027,173 (8,187, 781) 4,839,392 11, 364, 969 630,915 30,083 321 661,319 103,511 103,511 764,830 4,839,392 2,472,578 5,760,747 $ 44, 031, 807 $ 10, 600,139 39 CITY OF LA PORTE, TEXAS Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds For The Year Ended September 30, 2009 Operating revenues: Userfees Operating expenses: Personal services Supplies Other services and charges Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Interest income Interest expense and fiscal charges Loss on sale of assets Total nonoperating revenue (expenses) Income (loss) before contributions and transfers Capital contributions Transfers in Transfers out Change in net assets Total net assets —beginning Total net assets —ending Business -type Activities - Enterprise Funds La Porte Area Other Utility Water Authority Funds $ 7,882,883 $ 962,843 $1,122, 909 2,849,231 - 918,498 229,247 9 176,547 2,653,532 852,412 231,252 1,620,073 461,465 313,733 7,352,083 1,313,886 1,640,030 530,800 (351, 043) (517,121) 37,231 (159,966) (122, 735) 408,065 4,770,020 46,296 (2,486, 544) 2,737,837 28,632,651 $ 31,370,488 See accompanying notes to basic financial statements. 40 29,957 (243, 859) (213, 902) (564,945) 860,304 (62, 312) 233,047 6,174, 449 $ 6,407,496 5,626 (5,597) nn (517,092) 30,185 123,513 (46,284) (409,678) 6,663,501 $ 6,253,823 Totals $ 9,968,635 3,767,729 405,803 3,737,196 2,395,271 10, 305, 999 Governmental Activities - Internal Service Funds 6,561,474 1,273,438 549,049 4,199,205 782,405 6,804,097 (337,364) (242,623) 72,814 (403, 825) (5,597) (336, 608) (673, 972) 5,660,509 169,809 (2,595,140) 2,561,206 41,470,601 $ 44, 031, 807 77,298 (14,622) 62,676 (179,947) 227,404 637,859 (325,721) 359,595 10,240,544 $ 10,600,139 41 CITY OF LA PORTE, TEXAS Statement of Cash Flows Proprietary Funds For The Year Ended September 30, 2009 Business -type Activities - Enterprise Funds La Porte Area Other Utility Water Authority Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from user fees $ 8,323,954 $ 1,103,963 $ 1,090,615 Cash payments to suppliers (3,009,997) (906,020) (315,772) Cash payments for personal services (2,597,281) - (856,979) Net cash provided (used) by operating activities 2,716,676 197,943 (82,136) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash received from other funds 35,951 - - Transfers from other funds 46,296 123,513 Transfers to other funds (2,486,544) (62,312) (46,284) Net cash provided (used) by noncapital financing activies (2,404,297) (62,312) 77,229 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Payments received from participants for debt service 758,532 - Payments received from participants for capital recovery 101,772 Payments for capital acquisitions (1,296,125) (119.970) Proceeds from sale of assets Principal payments on revenue bonds (387,500) (505,000) Interest paid on debt (154,604) (245,069) Net cash used by capital and related financing activies (1,838,229) (9,735) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 40,138 31,016 5,959 Net Investments purchased (858,128) (894,204) (239,519) Net Investments sold 813,745 483,625 141,899 Net cash used by investing activities (4,245) (379,563) (91,661) Net decrease in cash and cash equivalents (1,530,095) (253,667) (96,568) Balances -beginning of the year 2,384,059 1,153,485 384,576 Balances -end of the year $ 853,964 $ 899,818 $ 288,008 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 530,800 $ (351,043) $ (517,121) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 1,620,073 461,465 313,733 (Increase) decrease in accounts receivable 444,175 141,120 18,221 (Increase) decrease in due from other funds - - 4,238 (Increase) decrease in inventories (339) - Increase (decrease) in accrued salaries payable 796 (1,517) Increase (decrease) in accounts payable (126,879) (53,599) (15,422) Increase (decrease) in other current liabilities (18,861) Increase (decrease) in due to other funds 107,158 Increase (decrease) in customer utility deposits (3,104) (35,600) Increase (decrease) in accrued employee separation (30,447) (8,047) Increase (decrease) in net pension olbligation 66,655 - 20,997 Increase (decrease) in net OPEB obligation 214,946 50,085 Total adjustments 2,185,876 548,986 434,985 Net cash provided (used) by operating activities $ 2,716,676 $ 197,943 $ (82,136) Reconciliation of total cash and cash equivalents: Current assets - cash and cash equivalents $ 359,980 $ 159,362 $ 286,123 Restricted assets - cash and cash equivalents: 493,984 740,456 1,885 Total cash and cash equivalents $ 853,964 $ 899,818 $ 288,008 Noncash investing, capital and financing activities: Increase (decrease) in fair value of assets $ 669 $ 707 $ 190 Contributions of capital assets 4,770,020 - 30,185 See accompanying notes to basic financial statements. 42 Govemmental Activities — Intemal Totals Service Funds $ 10,518,532 $ 6,666,436 (4,231,789) (4,967,491) (3,454,260) (1,261,794) 2,832,483 437,151 35,951 _ 169,809 637,859 (2,595,140) (325,720) (2,389,380) 312,139 758,532 _ 101,772 (1,416,095) (1,941,151) 72,015 (892,500) - (399,673) (1,847,964) (1,869,136) 77,113 81,995 (1,991,851) (3,679,013) 1,439,269 2,191,131 (475,469) (1,405,887) (1,880,330) (2,525,733) 3,922,120 6,228,225 $ 2,041,790 $ 3,702,492 $ (337,364) $ (242,624) 2,395,271 782,405 603,516 78,566 4,238 26,954 (339.00) 7,229 (721) 9,394 (195,900) (226,465) (18,861) (558) 107,158 _ (38,704) _ (38,494) 2,250 87,652 _ 265,031 _ 2,817,164 679,775 $ 2,832,483 $ 437,151 $ 805,465 $ 3,702,492 1,236,325 _ $ 2,041,790 $ 3,702,492 $ 1,566 $ 2,237 4,800,205 227,404 43 44 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 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 Enti 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. As a general rule the effect of interfund activity has been removed from these statements. Exceptions to this general rule are payments reasonably equivalent in value to the interfund services provided and other charges between the City's various functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 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, 2009 1. Summary of significant accounting policies — Continued 0. 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 provideg 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 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) 2007 Certificate of Obligation Fund — This fund is used to fund is used to account for the proceeds and expenditures related to wastewater treatment plan, ball fields and golf course cart path repair. (c) 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. (d) Capital Projects Fund- This fund is used to account for capital projects that are normally small in nature and generally effect the general operation of the city. M CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 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 Accountin 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. Private sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. The city has the option of following subsequent private sector guidance for business type activities and enterprise funds, subject to this same limitation. The city has elected not to follow subsequent private sector guidance. 47 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 1. Summary of significant accounting policies — Continued Governmental fund financial statements are reported using the current financial resources measurement focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual; i.e., when they become both measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the current fiscal period. Most revenue sources are recorded as revenues when received in cash because they are generally not measurable until actually received. The revenues susceptible to accrual are property taxes, sales taxes, hotel taxes, franchise fees, interest income and intergovernmental revenues. A one-year availability period is used for recognition of all other Governmental Fund revenues. Expenditures are recorded when the related fund liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences are recorded only when payment is due. E. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, special revenue funds and debt service funds. All annual appropriations lapse at fiscal year-end. Project length financial plans are adopted for all capital projects funds and are revised annually. 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 capital 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, 2009 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 "20-like pools". Money market investments, which are short-term highly liquid debt instruments that may include U.S. Treasury and agency obligations, are reported at amortized costs. Investment positions in external investment pools that are operated in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940, such as TexPool, LOGIC and TexStar are reported using the pools' share price. G. Receivables Receivables as of year-end of the government's individual major and non -major funds and internal service funds, including the applicable allowances for uncollectible accounts, are as follows: Fund Taxes Interest Other Accounts Total General $ 1,852,287 $ 9,512 $ - $2,569,014 $4,430,813 2007 C.O. - 116 - - 116 Grant - 134 - - 134 Capital Projects - 5,958 - - 5,958 Nonmajor governmental 519,646 5,004 - - 524,650 Utility - 1,259 - 799,182 800,441 La Porte Area Water Authority - 1,380 - 158,323 159,703 Nonmajor enterprise - 246 - 9,027 9,273 Internal service funds - 3,722 120,323 - 124,045 Gross Receivables 2,371,933 27,331 120,323 3,535,546 6,055,133 Less: allowance for uncollectibles (680,022) - - (719,073) (1,399,095) Net total receivables $1,691,911 $ 27,331 $120,323 $ 2,816,473 $ 4,656,038 49 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 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 Nonmajor Internal General Governmental General Grant Service Total Delinquent property taxes receivable $ 307,630 $ 42,851 $ $ $ $ 350,481 Court fines 174,049 - - - 174,049 Emergency medical services 1,042,559 1,042,559 Mowing and demolition services 352,179 - - 352,179 Intergovernmental services - - 112,344 - 112,344 Grant revenues - - 1,203 1,203.00 Miscellanous 21,697 - - - 321 22,018 Total deferred / unearned revenue $ 1,898,114 $ 42,851 $ 112,344 $ 1,203 $ 321 $ 2,054,833 H. 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. I. 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. J. Restricted Assets The City applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. K. 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. L. Deferred Contributions Deferred contributions include the construction of an asset within the City that will be contributed upon completion to another governmental entity. Upon completion of the project, this asset will be transferred to another governmental entity. M. Interfund Transactions 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 50 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 1. Summary of significant accounting policies — Continued 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. All other legally authorized transfers are treated as transfers and are included in the results of operations of both Governmental and Proprietary Funds. N. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the applicable governmental or business -type activities columns in the government -wide financial statements and in the fund financial statements for proprietary funds. Capital assets are defined by the government as assets with an initial unit cost of $5,000 or more and an estimated useful life exceeding two years. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at their fair market value on the date donated. Repairs and maintenance that do not add to the value of the asset or extend assets lives are recorded as expenses. Interest cost during construction is capitalized when the effect of capitalization materially impact the financial statements. During the year ended September 30, 2009, no interest costs were capitalized. Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives: Buildings 20 years Water and Sewer System 20 — 40 years Infrastructure 20 — 30 years Machinery and Equipment 4 —10 years Improvements 20 years O. Compensated Absences The City's employees earn vacation and sick leave, which may either be taken or accumulated, up to certain amounts, until paid upon termination or retirement. For all funds, this liability reflects amounts attributable to cumulative employee services already rendered, where the payment is probable and can be reasonably estimated. The current and long-term portions of the governmental fund type liabilities are recorded in the Government -Wide Statement of Net Assets. The proprietary fund type liability is recorded as a liability in the individual proprietary funds since payment of this liability will be made from resources of these funds. 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 — Full time 8 hour employees accrue 3.70 hours per pay period. Full time 24 hour employees accrue 5.91 hours per pay period and civil service employees accrue 15 days per calendar year. The maximum sick leave time which may be accumulated by any employee shall be 90 days for regular full time employees. For 24 hour shift personnel, the maximum accrual is 1,152 hours. Civil service employees may accrue unlimited sick leave. 51 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 1. Summary of significant accounting policies — Continued The liability for compensated absences at September 30, 2009 is comprised of the following: Governmental Business Type Total Vacation $ 964,190 $ 155,668 $1,119,858 Sick Leave 1,999,925 214,920 2,214,845 Total All Funds $ 2,964,115 $ 370,588 $3,334,703 P. Lona-term Obliaations 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, inventory and debt service are discussed in Notes 5 and 1(K), respectively. Other reserves of funds are for the Municipal Court Building Security Fees and Municipal Court Technology Fees, park zone, confiscated funds, animal control and judicial fund. R. Net Assets Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciations, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets and adding back unspent proceeds. Net assets are reported as restricted when there are limitations imposed on their use either through the enabling legislations adopted by the city or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. 2. Cash, Cash Equivalents and Investments Cash and Cash Eauivalents 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. 52 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 2. Cash, Cash Equivalents and Investments - Continued 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 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 that have its main office or branch office in this state 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 that have its main office or branch office in this state 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. Y 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. 53 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 2. Cash, Cash Equivalents and Investments - Continued ➢ 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. 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 $52,251, 205. The following schedule shows the City's recorded cash and investments at year-end: Deposits and Cash Pooled Funds Investments Total General $ 415,548 $ 8,864,031 $ 6,725,998 $16,005,577 Debt Service 55,458 1,195,289 899,519 2,150,266 Capital Projects 494,094 13,026,089 5,697,654 19,217,837 Special Revenue Funds 489,749 1,790,333 1,352,324 3,632,406 Total Governmental Funds 1,454,849 24,875,742 14,675,495 41,006,086 Internal Service Funds 164,162 3,538,329 2,662,509 6,365,000 Total Governmental Activities 1,619,011 28,414,071 17,338,004 47,371,086 Enterprise 124,719 1,872,653 2,882,747 4,880,119 Total $1,743,729 $30,286,725 $20,220,751 $52,251,205 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 $ 7W,,'904 Net increase (decrease) in fair value of investments 20,543 Total investment income $ 771,447 Investment Risks At year-end, the City had the following investments, shown below for all funds by investment type: Investment Type Fair Value Public funds investment pools $ 30,286,725 Certificates of deposit 16,200,208 US Agency securities 4,020,543 Total $ 50,507,476 54 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 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 investment type: Fair Weighted Average Value Maturity (Months) Public funds investment pools $30,286,725 2.27 Federal Home Loan Mortgage Corporation (FHLMC) 2,004,918 14.3 Federal National Mortgage Association (FNMA) 2,015,625 9.01 Total fair value $34,307,268 Portfolio weighted average maturity 25.58 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 Certificates of deposit Investment Pools qW Credit Risk Percentage of Total Fair Value Portfolio $ 4,020,543 8% 16,200,208 32% 30,286,725 60% $ 50,507,476 100% 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 Aaa/MR1+ 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 Al rating by Standard & Poor's and a P-1 rating by Moody's Investors Service for investments in commercial paper. 55 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 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 2008-09 tax year were $0.612 and $0.098, respectively, per $100 of assessed valuation. The 2009 assessed value and total tax levy as adjusted through September 30, 2009 were $2,204,920,061 and $15,654,937 respectively. The City has enacted an ordinance providing for the exemption of twenty percent (20%) of the assessed value of residential homesteads plus and additional $60,000 for persons 65 years of age or older for property taxes. An exemption of $60,000 is allowed for disabled persons on homesteads and up to $12,000 is allowed for disabled veterans on any one piece of property. Additionally, the market value of agricultural land is reduced to agricultural value for purposes of the City's tax levy calculation. 56 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 4. Capital Assets Capital asset activity for the year ended September 30, 2009 was as follows: Beginning Balance 10/01 /08 Governmental activities: Capital assets, not being depreciated: Land $ 8,108,756 Construction in progress 2,052,990 Total capital assets, not being depreciated 10,161,746 Capital assets, being depreciated: Buildings and improvements 30,801,245 Improvements other than buildings 8,165,380 Infrastructure 31, 677, 569 Machinery and equipment 13,935,634 Total capital assets being depreciated 84,579,828 Less accumulated depreciation for: Buildings and improvements Improvements other than buildings Infrastructure Machinery and equipment Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net 11, 720, 357 5,396,732 17,058,454 9,434,166 43, 609, 709 40, 970,119 $51,131,865 57 Additions $ 1,595,227 4,793,928 6,389,155 3,680,003 674,345 2,315,110 2,646,604 9,316,062 1,097,988 354,433 1,332,085 1,064,777 3,849,283 5,466,779 $ 11,855,934 Retirements & Adjustments (1,281,795) (1,281,795) 186,840 383,637 (49,292) (825, 356) (304,171) (47, 613) (92,416) 6,426 (998,022) (1,131,625) 827,454 $ (454,341) Ending Balance 09/30/09 $ 9,703,983 5,565,123 15,269,106 34,668,088 9,223,362 33, 943, 387 15, 756, 882 93, 591, 719 12, 770, 732 5,658,749 18, 396, 965 9,500,921 46, 327, 367 47,264,352 $ 62,533,458 4. Capital Assets — Continued CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 Beginning Balance 10/01 /08 Additions Ending Retirements & Balance Adjustments 09/30/09 Business -type activities: Capital assets, not being depreciated: Land $ 2,308,777 $ - $ - $ 2,308,777 Construction in progress 6,584,059 3,887,665 (370,829) 10,100,895 Total capital assets, not being depreciated 8,892,836 3,887,665 (370,829) 12,409,672 Capital assets, being depreciated Buildings and improvements 1,166,840 5,890.00 - 1,172,730 Improvements other than buildings 73,913,055 2,144,491 512,098 76,569,644 Machinery and equipment 525,652 52,413 (47,501) 530,564 Total capital assets, being depreciated 75,605,547 2,202,794 464,597 78,272,938 Less accumulated depreciation for: Buildings and improvements 851,971 43,273 (921) 894,323 Improvements other than buildings 40,456,903 2,327,229 (579) 42,783,553 Machinery and equipment 371,507 24,769 (40,403) 355,872 Total accumulated depreciation 41,680,381 2,395,271 (41,903) 44,033,748 Total capital assets, being depreciated net 33,925,166 (192,477) 506,500 34,239,189 Business -type activities capital assets, net $ 42,818,002 $ 3,695,188 $ 135,671 $ 46,648,861 58 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 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 $ 418,227 690,811 1,408,245 549,595 782,405 $ 3,849,283 $ 2,081,538 165,071 133,790 14,872 $ 2,395,271 The City has active construction projects as of September 30, 2009. Total accumulated commitments for ongoing capital projects are composed of the following: Utility Capital Projects Fund Sylvan Beach Fund Hotel/Motel Occupancy Tax Fund LPAWA General CIP S1998 General Obligation Bonds S2005 Cert. of Obligation Bonds S2006 Cert. of Obligation Bonds S2006 GO Bonds S2007 Cert of Obligation Bonds Total 59 Construction In Progress $ 9,942,310 34,905 52,316 123,680 1,037,121 466,874 233,741 2,786,540 732,348 Remaining Contract Balance $ 111,830 12, 500.00 2,662,801 9,898 72,902 560,679 1,418,108 256,183 4,538 $ 15,666,018 $ 4,853,256 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 5. Long Term Liabilities At September 30, 2009 bonds payable consisted of the following individual issues: Govemmental • 1998 General Obligation Serial Bonds due in annual installments of $125,000 through March 15, 2019; interest at 4.25% to 6.25% $2,500,000 issued for street and drainage improvements. • 1999 La Porte Area Water Authority Contract Revenue Refunding Bonds due in annual payments through March 15, 2017; interest at 7% to 7.5% $8,080,000 issed to refund previous debt. • 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% $3,250,000 issued for city hall, fire station and pool improvements. • 2000 Certificates of Obligation due in annual installments of $150,000 through March 15, 2020; interest at 5% to 7% $3,000,000 issed to construct a public library • 2002 Limited Tax Bonds due in annual installments of $270,000 through March 15, 2025; interest at 4.25% to 5%; $5,400,000 issued for wastewater treatment plant and fire station improvements. • 2004 Certificates of Obligation due in annual payments through March 15, 2025; interest at 3.6% to 4.45% $7,000,000 issued for paving and drainage improvements, street extension and land acquisition. • 2005 General Obligation Serial Bonds due in annual payments through March 15, 2025; interest at 3.75% to 4.25% $7,675,000 issued to construct a police facility. • 2005 Certificates of Obligation due in annual payments through March 15, 2015; interest at 2.8% to 3.8% $7,000,000 issued for water and sewer improvements and fire truck. • 2006 Public Property Finance Contractual Obligation due in annual payments through January 25, 2016; interest at 3.74% $2,625,000 issued for automated meter replacement program. • 2006 General Obligation Serial Bonds due in annual payments through March 15, 2005; interest at 3.625% to 4.25% $1,2000,000 issued for park improvments. • 2006 Certificates of Obligation due in annual payments through March 15, 2025; interest at 3.75% to 4.3% $5,765,000 issued for police facility, sports and water and sewer improvements • 2007 Certificates of Obligation due in annual payments through March 15, 2029; interest at 4.00% to 4.25% $8,075,000 issued for wastewater treatment plant improvements, sports complex and golf cart path improvements. Total Bonds Payable $ 1,25u,uuu Business -type 4,605,000 1,900,000 - 1,650,000 - 4,320,000 - 6,135,000 - 6,610,000 - 1,545,000 - - 1,837,500 1,110,000 - 5,330,000 7,785,000 - $ 37,635,000 $ 6,442,500 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 5. Long Term Liabilities - Continued Changes in Outstanding Debt - Transactions for the year ended September 30, 2009 are summarized as follows: Governmental Type Activities General obligation bonds Certificates of obligation Premium on debt issues Compensated absences Net pension obligation Net OPEB obligation Arbitrage Retainage payable Total governmental type activities Business Type Activities Revenue bonds Public property finance contractual obligation Compensated absences Net pension obligation Net OPEB obligation Total business type activities Total of all activities Balance Issues Balance October 1, or Payments or September 30, Due within 2008 Additions Expenditures 2009 one year $ 16, 065, 000 $ - $ 875,000 $ 15,190, 000 $ 895,000 23, 265, 000 - 820,000 22, 445, 000 860,000 314,013 - 11,998 302,015 - 2,851,287 208,193 95,365 2,964,115 149,000 - 2,726,533 2,171, 793 554,740 - - 1,870,378 315,547 1,554,831 - 304,474 - - 304,474 - - 102,447 - 102,447 - 42, 799, 774 4,907,551 4,289,703 43, 417, 622 1,904,000 5,235,000 - 630,000 4,605,000 525,000 2,100, 000 - 262,500 1,837,500 262,500 409,081 - 38,493 370,588 30,000 - 443,854 356,202 87,652 - - 319,802 54,771 265,031 - 7,744,081 763,656 1,341,966 7,165,771 817,500 $ 50,543,855 $ 5,671,207 $ 5,631,669 $ 50,583,393 $ 2,721,500 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. Although the city has not incurred any liability for arbitrage, an allowance has been created as a safe harbor in anticipation of future rebate calculations. As provided for by the bond indentures, this amount has been recorded as a liability in the governmental activities 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. 61 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 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, 2009. Below is a reconciliation of the various restricted cash and cash investments: Current Maturities of Revenue Bonds $ 740,456 Customer Deposits Payable 495,869 Total Restricted Cash and Cash Investments as of September 30, 2009 $1,236,325 62 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 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, 2009, are as follows: General Obligation Bonds Governmental Activities Year Ending September 30 Principal Interest 2010 $ 895,000 $ 644,779 2011 930,000 605,335 2012 945,000 564,444 2013 960,000 522,732 2014 975,000 480,397 2015-2019 5,180, 000 1,737,751 2020-2024 4,390,000 677,575 2025-2029 915,000 20,319 Business -type Activities Principal Interest Total $ _ $ - $ 1,539,779 - 1,535,335 - 1,509,444 - 1,482,732 - 1,455,397 - 6,917,751 - - 5,067,575 - - 935,319 Total $15,190,000 $ 5,253,332 $ - $ - $20,443,332 Certificate of Obligations Governmental Activities Business -type Activities Year Ending September 30 Principal Interest Principal Interest Total 2010 $ 860,000 $ 931,621 $ 262,500 $ 63,814 $ 2,117,935 2011 895,000 896,048 262,500 53,996 2,107, 544 2012 950,000 858,518 262,500 44,179 2,115,197 2013 1,060,000 817,983 262,500 34,361 2,174,844 2014 1,125,000 772,878 262,500 24,544 2,184,922 2015-2019 6,395,000 3,085,219 525,000 19,635 10,024,854 2020-2024 7,320,000 1,604, 046 - - 8,924,046 2025-2029 3,840,000 316,633 - - 4,156,633 Total Revenue Bonds Year Ending $22,445,000 $ 9,282,946 $1,837,500 $ 240,529 $ 33,805,976 Governmental Activities Tusiness-type Activities September 30 Principal Interest Principal Interest Total 2010 $ - $ - $ 525,000 $ 215,458 $ 740,458 2011 - - 550,000 185,513 735,513 2012 - - 580,000 156,163 736,163 2013 - - 615,000 126,288 741,288 2014 - - 640,000 95,713 735,713 2015-2019 - - 1,695,000 104,144 1,799,144 Total $ - $ - $4,605,000 $ 883,277 $ 5,488,277 63 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 5. Long Term Liabilities — Continued Bonds Authorized and Unissued — As of September 30, 2009, 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, 2009, $3,475,000 of the refunded bonds has been paid and $4,605,000 remain outstanding. 6. Pension Benefits Plan Descriptions The City provides pension benefits for all of its eligible employees, except firefighters, through a non- traditional, joint contributory, hybrid defined benefit plan (the "Plan") in the statewide Texas Municipal Retirement System (TMRS), an agent multiple -employer public employee retirement system. The plan provisions that have been adopted by the City are within the options available in the governing state statutes of TMRS. TMRS issue a publicly available comprehensive annual financial report that includes financial statements and required supplementary information (RSI) for TMRS; the report provides detailed explanation of the contributions, benefits and actuarial methods and assumptions used by the system. This report may be obtained by writing to TMRS, P.O. Box 149153, Austin, Texas 78714-9153 or by calling 800-924-8677; in addition, the report is available on TMRS' website at www.TMRS.com. 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 The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. 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 64 CITY OF LA PORTE, TEXAS Notes to the Financial Statements. September 30, 2009 6. Pension Benefits 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. 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. Plan provions for the City were as follows: Employee deposit rate Matching ratio (city to employee) Years required for vesting Service retirement eligibility (expressed as age/years of service) Updated service credit Annuity increase (to retirees) Contributions Plan Year 2008 7.00% 2 to 1 10 60/10,0/20 100% repeating, transfers 70% of CPI repeating Plan Year 2009 7.00% 2to1 10 60/10,0/20 100% repeating, transfers 70% of CPI repeating Under the state law governing TMRS, the contribution rate for each City is determined annually by the actuary, using Projected Unit Credit actuarial cost method. This rate consist of the normal cost contribution rate and the prior service cost contribution rate, which is calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the portion of an active member's projected benefit allocated annually; the prior service contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the applicable period for the city. Both the normal cost and prior service contribution rates include recognition of the projected impact of annually repeating benefits, such as Updated Service Credits and Annuity Increases. The City contributes to the TMRS plan at an actuarially determined 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 serves as the basis for the rate and the calendar year when the rate goes into effect. The annual pension cost and net pension obligation (asset) are as follows: Fiscal Year Annual required contribution (ARC) Interest on net pension obligation Adjustment to the ARC Annual pension cost Contributions made Increase in net pension obligation Net pension obligation, beginning of year Net pension obligation, ending of year Percentage of ARC contribution 65 2009 2008 2007 $ 3,170, 387 $ 2,033,168 $ 1,952,908 3,170, 387 2,033,168 1,952,908 2,527,995 2,033,168 1,952,908 642,392 - - $ 642,392 $ - $ - 79.7% 100.0% 100.0% CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 6. Pension Benefits — Continued 0 The required contribution rate for fiscal year 2009 was determined as part of the December 31, 2006 and 2007 actuarial valuations. Additional information as of the latest actuarial valuation, December 31, 2008, also follows: Actuarial Valuation Date 12/31/08 12/31/07 12/31/06 Actuarial cost method Projected Unit Credit Projected Unit Credit Unit credit Amortization method Level percent Level percent Level percent of of payroll of payroll payroll Remaining amortization period 29 years -closed 30 years -closed 25 years -open Asset valuation method Amortized cost Amortized cost Amortized cost Actuarial assumptions: Investment rate of return 7.5% 7% 7% varies by age varies by age varies by age and Projected salary increases and service and service service Inflation 3.0% 3.0% 3.0% Cost -of -living adjustments 2.1% 2.1% N/A Schedule of Funding Information The funded status as of December 31, 2008, is the most recent actuarial valuation date. The following schedule of funding progress presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability of benefits. Actual Valuation Date 12/31/08 12/31/07 12/31/06 Actuarial value of assets $ 47,909,865 $ 49,108,552 $ 47,065,757 Actuarial accrued liability 72,398,270 69,582,807 58,587,551 Percent funded 66.2% 70.6% 80.3% Unfunded (overfunded) actuarial accrued liability (UAAL) 24,488,405 20,474,255 11,521,794 Annual covered payroll 18,162,841 15,611,200 14,879,306 UAAL as a percentage of covered payroll 134.8% 131.2% 77.4% 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 revenuQs 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. •• CITY OF LA PORTE, TEXAS r. Noted to the Financial Statements September 30, 2009 6. Pension Benefits — Continued 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, 2008 there were 186 member departments participating in the pension system. The following table summarizes the pension system membership as of August 31, 2008: Retirees and beneficiaries currently receiving benefits 1,939 Terminated members entitled to benefits but not yet receiving those 1,975 Current active members (vested and non -vested) 4,340 The pension system was created by Senate Bill 411, 65th Legislature, Regular Session (1977). The 791h Legislature, Regular Session (2005), recodified the provisions and gave the TESRS Board of Trustees authority to establish vesting requirements, contributions levels, benefit formulas, and eligibility requirements by board rule. The benefit provisions include retirement benefits as well as death and disability benefits. Member are 505 vested after the tenth year of service, with the vesting percent increasing 10% for each of the next five years of service so that a member becomes 100% vested with 15 years of service. Upon reaching age 55, each 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 % compounded annually. On and off -duty death benefits and on -duty 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 dependent children. Funding Policy Contribution provisions were established by S.B. 411, 651h Legislative, Regular Session (1977) and were amended by board rule in 2006. No contributions are required -by individual members of participating departments. The governing bodies of participating department members are required to contribute at least the minimum prescribed amount per month for each active member. Additional contributions may be made by a governing body to pay for granting credit for service before the department began participating in TESRS (prior service). The State may also be reluired to make annual contributions up to a limited amount to make TESRS actuarially sound. Annual Required Contributions The contribution requirement per active emergency services personnel member per month is not actually determined. Rather, the minimum contribution provisions were set by board rule. For the fiscal year ending August 31, 2008, total contributions (dues and prior service) of $2,439,339 were paid into TESRS by the political subdivision and served by the member volunteer emergency services personnel. In addition, the state appropriated $8,800,000 for the fiscal year ending August 31, 2008. Total contributions made were greater than the contributions required by the state statute and were greater than the contributions based on the August 31, 2006 actuarial valuation. 67 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 6. Pension Benefits - Continued The purpose of the biennial actuarial valuations is to test the adequacy of the contribution arrangement and determine if they are adequate to fund the benefits that are promised. The actuarial valuation as of August 31, 2008 revealed the adequacy of the expected contributions (dues and prior service contributions) together with the actual state appropriations for the fiscal year ending August 31, 2009 ($415,405 to help pay for the Systems administrative expense) and with the assumed continuation of legislative appropriations of (1) the maximum state contribution amount in future years for the System to have a 30 year amortization period, and (2) approximately $425,000 each year to help pay for the System's administrative expenses. Expected contributions for the fiscal year ending August 31, 2009 are equal to the contributions required. The City's annual contributions for fiscal year ending September 30, 2009, 2008 and 2007 were $19,872, $18480, and $13,440, repectively. 7. Interfund Receivables, Payables and Transfers Interfund transfers during the year ended September 30, 2009 were as follows: Transfer In: Other Other Intemal General Grant Capital Governmental Utility Enterprise Service Transfer out: Fund Fund Projects Funds Fund Funds Funds Totals General fund $ - $ $ 6,826,211 $ - $ 16,205 $ - $536,380 $ 7,378,796 2007 C O's fund 474,508 474,508 Grant fund 21,126 21,126 Capital projects fund - 43,000 43,000 Other governmental funds 39,350 3,295,605 781,317 85,000 - 4,201,272 Utility fund 400,000 1,873,902 154,397 - 58,245 2,486,544 La Porte Area Water Authority fund 60,719 - - 1,593 62,312 Other enterprise funds - 21,319 24,965 46,284 Internal service funds 239,891 550 - - 30,091 38,513 16,676 325,721 Total $761,086 $ 550 $ 12,017,037 $ 1,453,222 $ 46,296 $123,513 $637,859 $ 15,039,563 68 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 7. Interfund Receivables, Payables and Transfers - Continued The detail of the interfund transfers is as follows: Transfers from Transfers to General Fund Utility Fund General Fund Insurance Fund General Fund General CIP Fund General Fund General CIP Fund General Fund General CIP Fund General Fund General CIP Fund General Fund General CIP Fund General Fund Technology Fund General Fund Vehicle Maintenance Fund Utility Fund General Fund Utility Fund Debt Service Fund Utility Fund Insurance Fund Utility Fund General CIP Fund Sylvan Beach Pavilion Fund Insurance Fund Airport Fund Insurance Fund Insurance Fund General Fund Insurance Fund Utility Fund Insurance Fund Golf Course Fund Insurance Fund Grant Fund General CIP Fund 2000 General Obligation Bonds La Porte Area Water Authority General Fund La Porte Area Water Authority Insurance Fund Technology Fund Insurance Fund Vehicle Maintenance Fund Insurance Fund Golf Course Fund Insurance Fund Golf Course Fund General CIP Fund Community Investment Fund Hotel/Motel Fund (Mainstreet) Hotel/Motel Fund Sylvan Beach Pavilion HoteVMotel Fund Golf Course Fund La Porte Development Corporation (46) Debt Service Fund La Porte Development Corporation (4B) General CIP Fund La Porte Development Corporation (413) General CIP Fund La Porte Development Corporation (413) General CIP Fund Tax Increment Reinvestment Zone General fund Tax Increment Reinvestment Zone General CIP Fund Tax Increment Reinvestment Zone Debt Service Fund 2004 Certificates of Obligation General CIP Fund 2007 Certificates of Obligation Debt Service Fund Grant Fund General Fund Total transfers " 16,205 (1) 508,924 (2) 6,060,311 (3) 100,000 (4) 583,000 (5) 45,600 (6) 37,300 (7) 25,000 (8) 2,456 (1) 400,000 (9) 154,397 (10) 58,245 (2) 1,873,902 (3) 2,717 (2) 633 (2) 239,891 (7) 30,091 (7) 38,513 (7) 550 (7) 43,000 (11) 60,719 (12) 1,593 (2) 518 (2) 16,158 (2) 21,615 (2) 21,319 (7) 68,575 (13) 25,000 (14) 60,000 (15) 672,030 (10) 2,700,000 (16) 72,621 (17) 231,520 (17) 39,350 (18) 59,288 (18) 40,712 (18) 232,176 (19) 474,508 (20) 21,126 (21) $ 15,U39,5b3 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 7. Interfund Receivables, Payables and Transfers — Continued (1) Transfer funds for compensation study, all funds originally budgeted in the General Fund. (2) Transfer for liability insurance and worker's compensation. (3) Annual transfer to fund capital projects. (4) Transfer additional funding for golf course improvements. (5) Transfer additional funding for sports complex project. (6) Transfer additional funding for Sylvan Beach Shoreline Project/Beach Renourishment. (7) Transfer for insurance reimbursements for Hurricane Ike damages. (8) Transfer city council reserve funds for audio visual equipment for council chambers. (9) General and administrative transfer. (10) Annual transfer for debt service. (11) Transfer additional funding for fire training facility. (12) Operator's agreement. (13) Transfer 1/2 of budgeted mainstreet operations (excluding festivals). (14) Annual transfer for ConventionNisitors Center. (15) Transfer for golf course advertising expenditures and city's bordering bay for golf course expenditures. (16) Transfer for capital projects (Town Square). (17) Transfer additional funding for Town Plaza. (18) Transfer from tax increment reinvestment zone (19) Transfer for reimbursement of Canada Road expenditures (20) Transfer for debt service repayment (ball fields). (21) Transfer of LEOSE funds The composition of interfund balances as of September 30, 2009 is as follows: Receivable Fund Payable Fund General Nonmajor Enterprise $ 144,706 Nonmajor governmental Nonmajor governmental 615,026 $ 759,732 The outstanding balances result from an overdraw of pooled cash and a loan to the TIRZ fund. 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. 70 8. Risk Management - Continued Activity during the year included: Revenues: CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 Charges to divisions Charges to employees Charges to retirees Insurance proceeds Interest revenue Miscellaneous revenue Total revenues Expenses: Personnel expenses Other expenses Claims administration Claims incurred Re -insurance premiums Total health services expenses $ 2,784,339 404,445 87,621 289,700 36,724 2,535 3,605,364 281,797 302,148 204,345 2,537,775 310,415 $ 3,636,480 Included in the claims paid amount is $448,000 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, 2009 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 2007, 2008 and 2009 are as follows: Beginning Current of Year Year Accrual Estimates Fiscal Year2007 $406,650 $2,441,585 Fiscal Year 2008 509,552 3,805,967 Fiscal Year 2009 677,000 2,308,775 Risk Pool Payment End of for Year Claims Accrual $2,338,683 $509,552 3,638,519 677,000 2,537,775 448,000 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. 71 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 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 Plan Description. 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 City to the extent and subject to the conditions of such coverage that is provided to current employees of the City. The City administers this single -employer defined benefit medical plan ("the Retiree Medical Plan"). The plan provides medical coverage for eligible retirees and their dependents through the City's self -health insurance plan, which covers both active and retired members. Benefit provisions are established and amended by City Council. The Retiree Medical Plan does not issue a publicly available financial report. Funding Policy. This coverage for retired employees is provided at the option of City council through adoption of the annual budget. The City funds these premiums in the same manner as it funds similar premiums for current employees. Employees, who retired from the City before October 1, 1992, have 100% of their coverage paid for by the City. Employees who retired from the City in 1993 and up to December 31, 1999, with 20 or more years of service have 100% of their coverage paid for by the City. Prior to January 1, 2000, employees who have 15 years but less than 20 years of service are required to pay for 10% of the cost and employees who have 10 years but less than 15 years of service are required to pay for 20% of their costs. For employees who retire after January 1, 2000 the following applies: Years of Service with City Retiree Cost City Cost Retiree Cost Per Year At least 10 but less than 15 years 55% 45% $3,300 At least 15 but less than 20 years 25% 75% 1,500 At least 20 years 0% 100% 0 Employees who are eligible for the post employment benefits are 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: 72 10 CITY OF IA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 Post -Employment Benefits -continued Years of Service Retiree City with City Cost Cost at least 20 years 60% + dependent premiums 40% 21 years 55% + dependent premiums 45% 22 years 50% + dependent premiums 50% 23 years 45% + dependent premiums 55% 24 years 40% + dependent premiums 60% 25 years 35% + dependent premiums 65% 26 years 30% + dependent premiums 70% 27 years 25% + dependent premiums 75% 28 years 20% + dependent premiums 80% 29 years 15% + dependent premiums 85% 30 years 10% + dependent premiums 90% 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. Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's OPEB obligation to the postemployment medical plan. Annual Required Contribution (ARC) $ 2,190,180 Interest on Net OPEB Obligation - Adjustment to the ARC - Annual OPEB Cost 2,190,180 Contributions Made 370,318 Increase in Net OPEB Obligation 1,819,862 Net OPEB Obligation, beginning of year - Net OPEB Obligation, ending of year $ 1,819,862 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2009 are as follows. This information is not included for fiscal years 2008 and 2007 due to fiscal year 2009 being a transition year of the implementation of GASB Statement 45. Percentage of Net Fiscal Annual Annual OPEB OPEB Year Ended OPEB Cost Cost Contributed Obligation 9/30/2009 2,190,180 16.91 % 1,819,862 73 CITY OF LA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 10. Post -Employment Benefits— Continued Funded Status and Funding Progress. The funding status of the post employment medical plan as of the most recent actuarial valuation date is as follows: Actuarial Valuation Date 6/30OW7 Actuarial value of assets Actuarial accrued liabilities (AAL) 28,101,585 Unfunded actuarial accrued liability (UAAL) 28,101,585 Funded ratio 0.00% Covered payroll (active plan members) 18,218,769 UAAL as a percentage of covered payroll 64.83% Actuarial valuations of an ongoing plan involve estimates of the value reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. A schedule of funding progress presents multi -trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. A schedule of funding progress is not available in year of implementation of GASB Statement 45. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the June 30, 2007, actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 4.5 percent investment rate of return compounded annually (net of administrative expenses), which is a blended rate of the expected long-term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date, an annual healthcare cost trend rate of 10 percent initially, reduced by decrements to an ultimate rate of 4.5 percent after 10 years, and a payroll growth rate for projecting normal cost of 3 percent. These rates include a 3 percent inflation assumption. The actuarial value of assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period. The UAAL is being amortized as a level percentage of payroll contributions over a 30 year period assuming payroll growth of 3 percent. The remaining amortization period at September 30, 2009, was 30 years. Supplemental Death Benefits Fund The City also participates in the cost sharing multiple -employer defined benefit group term life insurance plan operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death Benefits Fund (SDBF). The City elected, by ordinance to provide group term life insurance coverage to both current and retired employees. The city may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1. The death benefit for active employees provides a lump sum payment approximately equal to the employee's annual salary (calculated based on the employee's actual earnings, for the 12-month period preceding the month of death); retired employees are insured for $7,500; this coverage is an "other postemployment benefit, " or OPEB. The city contributes to SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is equal to the cost of providing one-year term life 74 CITY OF IA PORTE, TEXAS Notes to the Financial Statements September 30, 2009 10. Post -Employment Benefits— Continued insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year; the intent is not to pre -fund retiree term life insurance during employee's entire careers. The city's contributions to the TMRS SDBF for the fiscal year ended 2009 was $5,312, which equaled the required contributions. Fiscal year 2009 is a transition year for the implementation of GASB 45; therefore, one year of contributions is disclosed. Annual Actual Accounting Required Contribution Percentage Year Contribution Made of ARC Ending (Rate) (Rate) Contributed 09/30/07 0.03% 0.03% 100% 09/30/08 0.04% 0.04% 100% 09/30/09 0.03% 0.03% 100% 11. Deficit Fund Balance The Tax Increment Reinvestment Zone One (TIRZ) Fund has a deficit fund balance of $349,690, as of September 30, 2009. This deficit is the result of the TIRZ borrowing money from a capital projects fund to finance capital improvements. This deficit fund balance will be covered with future property tax revenues. 75 76 REQUIRED SUPPLEMENTARY INFORMATION 77 78 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, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Property taxes $11,786,500 $12,584,499 $ 13,436,413 $ 851,914 Franchise taxes 1,992,068 2,124,017 2,160,425 36,408 Sales taxes 3,085,011 2,995,000 2,958,648 (36, 352) Industrial payments 9,860,078 10,181,383 10,292,030 110,647 Other taxes 75,000 84,527 91,187 6,660 Licenses and permits 627,680 596,037 641,614 45,577 Fines and forfeits 1,405,065 1,351,416 1,668,364 316,948 Charges for services 3,946,262 4,084,926 4,139,264 54,338 Intergovernmental 6,000 3,500 1,980 (1,520) Interest 450,000 300,000 274,383 (25,617) Miscellaneous 25,000 25,000 50,577 25,577 Total revenues 33,258,664 34,330,305 35,714,885 1,384,580 EXPENDITURES General Government: Administration 2,720,887 2,937,557 2,899,607 37,950 Finance 3,379,485 3,633,395 3,399,516 233,879 Planning and engineering 1,881,056 1,823,362 1,817,501 5,861 Public Safety: Fire 4,144,145 4,020,715 4,001,810 18,905 Police 9,072,904 8,965,091 8,911,440 53,651 Public Works: Public works administration 360,083 371,602 369,859 1,743 Streets 2,395,844 2,306,836 2,298,312 8,524 Health and Sanitation: Solidwaste 2,109,883 2,097,786 2,087,069 10,717 Culture and Recreation 3,748,653 3,762,256 3,802,569 (40,313) Total expenditures 29,812,940 29,918,600 29,587,683 330,917 Excess (deficiency) of revenues over expenditures 3,445,724 4,411,705 6,127,202 1,715,497 OTHER FINANCING SOURCES (USES) Sale of capital assets 5,000 134,399 136,559 2,160 Transfers in 460,719 668,450 761,086 92,636 Transfers out (6,569,235) (7,378,796) (7,378,796) - Total other financing sources (uses) (6,108,516) (6,575,947) (6,481,151) 94,796 Net change in fund balances (2,662,792) (2,164,242) (353,949) 1,810,293 Fund balances -beginning 13,947,978 13,947,978 13,947,978 - Fund balances -ending $11,285,186 $11,783,736 $ 13,594,029 $ 1,810,293 79 Required Supplementary Information 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, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Fines and forfeitures $ 457,040 $ 457,040 $ 164,206 $ (292,834) Charges for services 141,500 141,500 13,611 (127,889) Intergovernmental 1,324,988 1,482,645 4,866,333 3,383,688 Interest - - 3,109 3,109 Miscellaneous - 47,213 47,961 748 Total revenues 1,923,528 2,128,398 5,095,220 2,966,822 EXPENDITURES Current: General government 392,300 491,996 296,878 195,118 Public safety 563,001 723,554 721,659 1,895 Public works - 5,286,500 3,920,201 1,366,299 Culture and recreation 203,870 208,187 50,030 158,157 Capital outlay 764,357 918,768 491,902 426,866 Total expenditures 1,923,528 7,629,005 5,480,670 2,148,335 Excess (deficiency) of revenues over expenditures - (5,500,607) (385,450) 5,115,157 OTHER FINANCING SOURCES (USES) Transfers in - 550 550 - Transfers out - - (21,126) (21,126) Total other financing sources (uses) - 550 (20,576) (21,126) Net change in fund balances Fund balances —beginning Fund balances -ending - (5,500,057) 1,621,894 1,621,894 $ 1,621,894 $ (3,878,163) 80 (406, 026) 5,094,031 1,621,894 - $ 1,215,868 $ 5,094,031 CITY OF LA PORTE, TEXAS Notes to the Required Supplementary Information September 30, 2009 Budgetary Basis of Accounting 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. 81 COMBINING FINANCIAL STATEMENTS NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Street Maintenance Sales Tax Fund — This fund is used to account for the additional sales tax collected for street maintenance. 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. Section 4B Sales Tax Fund — This fund is used to account for funds received from the '/ cent sales tax dedicated to certain economic and infrastructure projects. Capital Projects Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. ` 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. 82 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. 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. 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. Debt Service Fund Debt service Fund is used to pay interest and extinguish debt of the outstanding General Obligation Issues of the City. 83 CITY OF LA PORTE, TEXAS Combining Balance Sheet Nonmajor Governmental Funds September 30, 2009 Special Revenue Funds Street Hotel/Motel Tax Increment Maintenance Community Occupancy Reinvestment Sales Tax Investment Tax Zone One (TIRZ) ASSETS Cash and cash equivalents $ 257,965 $ 273,424 $ 395,003 $ 406,550 Investments 185,524 196,643 284,081 - Taxes receivable 118,612 - 70,105 - Other receivables - - 75 - Accrued interest receivable 260 279 400 - Due from other funds - - - - Total assets 562,361 470,346 749,664 406,550 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 148,160 5,435 33,810 53,651 Accrued salaries payable - - 1,694 - Retainage payable 13,528 - - - Due to others - - - 87,563 Due to other funds - - - 615,026 Deferred revenue - - - - Totalliabilities 161,688 5,435 35,504 756,240 Fund Balances: Reserved for: Encumbrances - 89,070 32,997 - Debt Service - - - - Unreserved 400,673 375,841 681,163 (349,690) Total fund balances 400,673 464,911 714,160 (349,690) Total liabilities and fund balances $ 562,361 $ 470,346 $ 749,664 $ 406,550 r 84 Special Revenue Funds Section 4B Sales Tax Totals $ 845,183 $ 2,178,125 607,844 1,274,092 237,225 425,942 - 75 852 1,791 1,691,1 44 3,880,025 49.. Caoital Proiects Funds Transportation 1998 General 2000 Certificate & Other Obligation of Obligation Infrastructure Bonds Bonds $ 710,436 $ 675,169 $ 17,061 510,936 485,571 12,269 718 682 17 1,222,090 1,161,422 29,347 7,175 248,231 - 6,705 3,089 4,783 - - - - 13,528 - - - - 87,563 - - - - 615,026 - - - 10,264 969,131 - 6,705 - 6,814 128,881 - - - 1,674,026 2,782,013 1,222,090 1,154,717 29,347 1,680,840 2,910,894 1,222,090 1,154,717 29,347 $ 1,691,104 $ 3,880,025 $ 1,222,090 $ 1,161, 422 $ 29,347 85 ,,„CITY OF LA PORTE, TEXAS Combining Balance Sheet Nonmajor Governmental Funds September 30, 2009 r (Continued) ASSETS Cash and cash equivalents Investments Taxes receivable Other receivables Accrued interest receivable Due from other funds, Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued salaries payable Retainage payable Due to others Due to other funds Deferred revenue Total liabilities Fund Balances: Reserved for: Encumbrances Debt Service Unreserved Total fund balances Total liabilities and fund balances Capital Proiects Funds 2000 General 2002 General 2004 Certificate 2005 Certificate Obligation% Obligation r a&QbUgation of O anion Bonds Bonds Bonds Bonds $ 127,690 $ - $ 346,758 $ 76,569 26,538 - 882,070 223,591 37 350 77 - 1,229,178 300,237 154,265 51,260 - - 3,390 - - 54,650 - - 1,251 321 1,572 99,615 - 1,229,178 298,665 99,615 - 1,229,178 298,665 $ 154,265 $ - $ 1,229,178 $ 300,237 86 d a Ca ital Projects Funds 2005 General 2006 Certifjpate 2006 General Total Nonmajor Obligation of Obligation Obligation Debt Governmental Bonds Bonds Bonds Totals Service Funds $ 65,051 $ 35,501 $ 95,168 $ 2,149,403 $ 1,250,747 $ 5,578,275 - 2,432,386 272,475 4,845,836 899,519 7,019,447 _ _ _ - 42,851 468,793 _ _ _ - - 75 38 21 - 56 1,996 1,217 5,004 - 615,026 - 615,026 - 615,026 65,089 3,082,934 367,699 7,612,261 2,194,334 13,686,620 14,677 32,764 35,616 142,273 - 390,504 _ _ _ - - 4,783 - 5,047 - 8,758 - 22,286 _ _ _ - - 87,563 - 615,026 _ - - - 42,851 42,851 14,677 37,811 35,616 151,031 42,851 1,163,013 _ _ - - - 128,881 _ _ - - 2,151,483 2,151,483 50,412 3,045,123 332,083 7,461,230 - 10,243,243, 50,412 3,045,123 332,083 7,461,230 2,151,483 12,523,607 $ 65,089 $ 3,082,934 $ 367,699 $ 7,612,261 - $ 2,194,334 $ 13,686,620 w 87 0. CITY Of LA PORTE, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For The Year Ended September 30, 2009 Special Revenue Funds Street Hotel/Motel Tax Increment Maintenance Community Occupancy Reinvestment Sales Tax Investment Tax Zone One (TIRZ) REVENUES Property taxes $ - $ - $ - $ 946,025 Sales taxes 739,661 - - - Industrial payments - 262,842 - - Other taxes - - 518,578 - Interest 6,222 10,092 8,012 5,211 „_ Charges for services - - - 312,437 Miscellaneous - - 3,500 - Total revenues 745,883 272,934 530,090 1,263,673 EXPENDITURES Current: General government - 105,373 365,188 1,180,166 Public safety - - - - Public works - - - - Capital outlay 707,020 491,802 - - Debt service: Principal - - - - Interest and fiscal charges - - - - Total expenditures 707,020 597,175 365,188 1,180,166 Excess (deficiency) of revenues over expenditures 38,863 (324,241) 164,902 83,507 OTHER FINANCING SOURCES (USES) Transfers in - - 68,575 - Transfers out - {68,575) (85,000) (139,350) Total other financing sources (uses) - (68,575) (16,425) (13@,350) .,. 'Net change in fund balances 38,863 (392,816) 148,477 (55,843) `Fund balances -beginning 361,810 857,727 565,683 (293,847) Fund balances -ending $ 400,673 $ 464,911 $ 714,160 $ (349,690) 88 ok Special Revenue Funds Capital Projects Funds Transportation 1998 General 2000 Certificate Section 4B & Other Obligation of Obligation Sales Tax Totals Infrastructure Bonds Bonds $ - $ 946,025 $ - $ - $ - 1,479,331 2,218, 992 - - - - 262,842 - - - - 518,578 - - - 37,420 66,957 15,349 14,715 369 - 312,437 - - - - 3,500 - - - 1,516,751 4,329,331 15,349 14,715 369 393,601 2,044,328 - - - - 1,198, 822 - 30,839 - 393, 601 3,243,150 - 30,839 - 1,123,150 1,086,181 15,349 (16,124) 369 - 68,575 - - - (3,676,171) (3,969,096) - - - (3,676,171) (3,900,521) - - _ - - (2,558,021) (2,814,340) 15,349 (16,124) 369 4,233,861 5,725,234 1,206,741 1,170,841 28,978 $ 1,680,840 $ 2,910,894 $ 1,222,090 $ 1,154,717 $ 29,347 89 CITY OF LA PORTE, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For The Year Ended September 30, 2009 (Continued) Capital Projects Funds 2000 General 2002 General 2004 Certificate 2005 Certificate Obligation Obligation of Obligation of Obligation Bonds Bonds Bonds Bonds REVENUES Property taxes $ - $ - $ - $ - Sales taxes - - - - Industrial payments - - - - Othertaxes - - - - Interest 1,371 486 15,308 4,807 Charges for services - - - - Miscellaneous - - - - Total revenues 1,371 486 15,308 4,807 EXPENDITURES Current: General government 17,530 - - - Public safety - - - - Public works - - - 32,268 Capital outlay 69,593 41,957 - 123,917 Debt Service: Principal - - - - Interest - - - - Total expenditures 87,123 41,957 - 156,185 Excess (deficiency) of revenues over expenditures (85,752) (41,471) 15,308 (151,378) OTHER FINANCING SOURCES (USES) Transfers in 43,000 - - - Transfers out - - (232,176) - ,r Total other financing sources (uses) 43,000 - (232,176) - Net change in fund balances (42,752) (41,471) (216,868) (151,378) Fund balances —beginning 142,367 41,471 1,446,046 450,043 Fund balances —ending $ 99,615 $ - $ 1,229,178 $ 298,665 W Capital Projects Funds 2005 General 2006 Certificate 2006 General Total Nonmajor Obligation of Obligation Obligation Debt Governmental Bonds Bonds Bonds Totals Service Funds $ _ $ _ $ _ $ - $ 2,044,553 $ 2,990,578 - 2,218,992 262,842 - 518,578 2,660 20,836 8,928 84,829 32,653 184,439 - _ _ _ - 312,437 - _ _ _ - 3,500 2,660 20,836 8,928 84, 829 2,077,206 6,491,366 _ _ - 17,530 - 2,061,858 250,311 - - 250;311 - 250,311 - 90,151 - 122,419 - 122,419 - 162,346 859,030 1,287,682 - 2,486,504 _ - - - 1,695,000 1,695,000 _ _ - - 1,572,212 1,572,212 250,311 252,497 859,030 1,677,942 3,267,212 8,188,304 (247,651) (231,661) (850,102) (1,593,113) (1,190,006) (1,696,938) 43,000 1,341,647 1,45�3,222 - - - (232,176) - (4,201,272) - - - (M9,176) 1,341,647 (2,748,050) (247, 651) (231, 661) (850,102) (1,782,289) 151,641 (4,444, 988) 298,063 3,276,784 1,182,185 9,243,519 1,999,842 a 16, 968, 595 $ 50,412 $ 3,045,123 $ 332,083 $ 7,461,230 $ 2,151,483 $ 12,523,607' a*, 91 V 92 SCHEDULE OF REVENUES, EXPENDITURES and CHANGES IN FUND BALANCE — BUDGET and ACTUAL Debt Service Fund Special Revenue Funds Capital Projects Funds a -. , 93 CITY OF LA POR,TE,TEXAS Street Maintenance Sales Tax tosetal Revenue Fund ar Schedule of Revenues, Expenditures and Changes in Fund Balance._ -- Budget and Actual For The"Year Ended September 30, 2009 " Variance with a_ Final Budget Budgeted Amounts Actual Positive Original Final a Amounts (Negative) 13EVENUES «- Sales taxes $ 771,253 $ 771,253 �' $ _ 739,661 $ (31,592) Interest 15,187 15,187 6,222 _ (8,965) Total revenCes 77 6,440 786,440 '" 745,883 (40,557) EXPENDITURES Capital outlay ,._- 700,000 796,695 707,020 31,675 Total expenditures 700,000 738,695 707,020 31,675 Net change in fund balances 86,440 47,745 38,863 (8,882) Fund balances —beginning 361,810 361,810 361,810 Fund balances ending $ 448,250 $ 409,555 $ 400,673 $ (8,882) 49_ p: 94 • CITY OF LA PORTE, TEXAS Community Investment Special Revenuq Fund - ,. 4- - Schedule of Revenues, Expenditures and ChavAes in Fjund Balance ! . Budget and Actual For The Year Ended September 30, 2009 - _ -�40 Final Budgef W Budgeted Amounts Actual Positive -,, - Original afInal - Amounts {N9gative) REVENUES Industrial payments $ 252,823 $ 252,823 $ 262,842 $ 10,019 Interest 11,878 11,878 10,092 (1,786) Total revenues 264,701 264,701 F 272,934 8,233 EXPENDITURES .. Current: General government 318,000 337,700 105,373 232,327 Capital outlay - 544,450 491,802 52,648 Total expenditures 318,000 882,150 597,175 284,975 Excess (deficiency) of revenues over expenditures (53,299) (617,449) (324,241) 293,208 OTHER FINANCING SOURCES (USES) Transfers out (68,575) (68,575) (68,575) - Total -other financing sources (uses) (68,575) (68,575) 468,575) - - Net change in fund balances (121,874) (686,024) (392,816) 293,208 Fund balances -beginning 857,727 857,727 857,727 Fund balances -ending.. $ 735,853 $ 171,703 $ 464,911 $ 293,208 e 95 a CITY QF LA PORTE, TEXAS - HUMWTOccupancy Tax Special Revenue Fund Schedule of Revenues, Expenditures and ChangeSjc. Fund Balances r Budget and Actual ` For The Year Ended September 30, 2009 s lfarlanca with _. REVENUES Other taxes Interest _ Miscellaneous Total revenues EXPENDITURES - Current: General government Total expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund-baldhces Fund balances -beginning Fund balances ending Final Budget Budgeted Amounts Actual Positive Original Final- Amounts (Negative) $ 500,000 $ 500,000 $ 518,578 $ 18,578 �- 15,000 1*000 8,012 (6,988) - - 3,500 3,500 515,0 00 515,000 530,090 - 15,090 378,749 466,248 365,188 101,060 378,749 466,248 365,188 101,060 136,251 48,752 164,902 116,150 68,575 68,575 68,;575 - (85,000) (85,000) (85,000) - (16,425) (16,425) (16,425) - 119,826 32,327 148,477 116,150 565,683 565,683 565,683 - $ 685,509 $ 598,010 $ 714,160 $ 116,150 0 11 CITY -OF LA PORTE, TEXAS Tax Increment Reinvestment Zone One Special Revenue Fund •- _ Schedulemof Revenues-, Expenditures and Changog iq.Fund Balances Budget and Actual For The Year Ended September 30, 2009 « Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (NNative) REVENUES Property taxes $ 309,774 $ 309,774 $ 946,025 $ 636,251 Charges for services - - 312,437 312,437 artist - '"'Total revenues "' 10,000 --319;7 10,000 , 4. 5,211 &789) 943,899 1,263,673" 319,774 EXPENDITURES Current: General government 120,286 120,286 1,180,166 (1,059,880) Total expenditures 120,286 120,286 1,180,166 (1,059,880) Excess (deficiency) of revenues over expenditures 199,488 199,488 83,507 (115,981) OTHER FINANCING SOURCES (USES) Transfers out (115,489) (115,489) (139,350) (2 861) ToWL,other financing sources (uses) (115,489) (115,489) (139,350) (23,861) Net change in fund balances 83,999 83,999 (55,843) (139,842) Fund Balances —beginning (293,847) (293,847) (293,847) - Fund Balances ending $ (209,848) $ (209,848) - (349,690) $ (139,842) 97 CITY OF LA PORTE, TEXAS Section 413 Sales lax Special Revenue Fund 0!, Schedule of Revenues, Expenditures and Changes in Fund Balances ' Budget and Actual For The Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Sales taxes $ 1,542,506 $ 1,542,506 $ 1,479,331 $ (63,175) Interest 105,000 105,000 37,420 (67,580) Total revenues 1,647,506 1,647,506 1,516,751 (130,755) EXPENDITURES Current: General government 967,655 1,097,905 393,601 704,304 Total expenditures 967,655 1,097,905 393,601 704,304 Excess of revenues over expenditures 679,851 549,601 1,123,150 573,549 OTHER FINANCING SOURCES (USES) Transfers out (3,372,030) (3,676,171) (3,676,171) - Total other financing sources (uses) (3,372,030) (3,676,171) (3,676,171) - Net change in fund balances (2,692,179) (3,126,570) (2,553,021) 573,549 Fund balances --beginning 4,233,861 4,233,861 4,233,861 - Fund balances --ending $ 1,541,682 $ 1,107,291 $ 1,680,840 $ 573,549 98 CITY OF LA PORTE, TEXAS e" Transportation and Other Infrastructure Fund Schedule of Revenues, Expenditures and Changes in Fund Balances r Budget and Actual For The Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 17,282 $ 17,282 $ 15,349 $ (1,933) Total revenues 17,282 17,282 15,349 (1,933) EXPENDITURES - - - - Net change in fund balances 17,282 17,282 15,349 (1,933) Fund balances —beginning 1,206,741 1,206,741 1,206,741 - Fund balances ending $ 1,224,023 $ 1,224,023 $ 1,222,090 $ (1,933) M 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, 2009 REVENUES Interest Total revenues EXPENDITURES Capital outlay Total expenditures Net change in fund balances Fund balances —beginning Fund balances ending •-W Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 7,000 $ 7,000 $ 14,715 $ 7,715 7,000 7,000 14,715 7,715 590,195 590,195 30,839 559,356 590,195 590,195 30,839 559,356 (583,195) (583,195) (16,124) 567,071 1,170, 841 1,170, 841 1,170, 841 - $ 587,646 $ 587,646 $ 1,154,717 $ 567,071 4 100 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, 2009 REVENUES Interest Total revenues EXPENDITURES Net change in fund balances Fund balances —beginning Fund balances —ending Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ - $ 369 $ 369 zaa 11Aa - - 369 369 28,978 28,978 28,978 - $ 28,978 $ 28,978 $ 29,347 $ 369 101 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, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ - $ - $ 1,371 $ 1,371 EXPENDITURES Current: General government - - 17,530 (17,530) Capital outlay 149,109 149,109 69,593 79,516 Total expenditures 149,109 149,109 87,123 61,986 Excess (deficiency) of revenues over expenditures (149,109) (149,109) (85,752) 63,357 OTHER FINANCING SOURCES (USES) Transfers in - 43,000 43,000 - Total other financing sources (uses) - 43,000 43,000 - Net change in fund balances (149,109) (106,109) (42,752) 63,357 Fund balances --beginning 142,367 142,367 142,367 - Fund balances tending $ (6,742) $ 36,258 $ 99,615 $ 63,357 102 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, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ - $ - $ 486 $ 486 Total revenues - - 486 486 EXPENDITURES Capital outlay 1,990 1,990 41,957 (39,967) Total expenditures 1,990 1,990 41,957 (39,967) Net change in fund balances (1,990) (1,990) (41,471) (39,481) Fund balances —beginning 41,471 41,471 41,471 - Fund balances ending $ 39,481 $ 39,481 $ - $ (39,481) .." 103 CITY OF LA PORTE, TEXAS 2004 Certificate of Obligation Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ - $ - $ 15,308 $ 15,308 Total revenues - - 15,308 15,308 EXPENDITURES Capital outlay 861,879 861,879 - 861,879 Total expenditures 861,879 861,879 - 861,879 Excess (deficiency) of revenues over expenditures (861,879) (861,879) 15,308 877,187 OTHER FINANCING SOURCES (USES) Transfers out - (232,176) (232,176) - Total other financing sources (uses) - (232,176) (232,176) - Net change in fund balances (861,879) (1,094,055) (216,868) 877,187 Fund balances —beginning 1,446,046 1,446,046 1,446,046 - Fund balancesnding $ 584,167 $ 351,991 $ 1,229,178 $ 877,187 104 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, 2009 REVENUES Interest Total revenues EXPENDITURES Current: Public safety Total expenditures Net change in fund balances Fund balances —beginning Fund balances ending Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ - $ 2,660 $ 2,660 - - 2,660 2,660 73,824 73,824 250,311 (176,487) 73,824 73,824 250,311 (176,487) (73,824) (73,824) (247,651) (173,827) 298,063 298,063 298,063 - $ 224,239 $ 224,239 $ 50,412 $ (173,827) .r► 105 CITY OF LA PORTE, TEXAS 2005 Certificate of Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2009 REVENUES Interest Total revenues EXPENDITURES Current: Public works Capital outlay Total expenditures Net change in fund balances Fund balances —beginning Fund balances —ending Budgeted Amounts Actual Original Final Amounts Variance with Final Budget Positive (Negative) $ 1,400 $ 1,400 $ 4,807 $ 3,407 1,400 1,400 4,807 3,407 - 40,257 32,268 7,989 341,673 301,421 123,917 177,504 341,673 341,678 156,185 185,493 (340,273) (340,278) (151,378) 188,900 450,043 450,043 450,043 - $ 109,770 $ 109,765 $ 298,665 $ 188,900 106 CITY OF LA PORTE, TEXAS 2006 Certificate of Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2009 REVENUES Interest Total revenues EXPENDITURES Current: Public works Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Net change in fund balances Fund balances —beginning Fund balances —ending Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 5,000 $ 5,000 $ 20,836 $ 15,836 5,000 5,000 20,836 15,836 - 95,000 90,151 4,849 2,212,267 2,117,267 162,346 1,954,921 2,212,267 2,212,267 252,497 1,959,770 (2,207,267) (2,207,267) (231,661) 1,975,606 (2,207,267) (2,207,267) (231,661) 3,276,784 3,276,784 3,276,784 $ 1,069,517 $ 1,069,517 $ 3,045,123 107 1,975,606 $ 1,975,606 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, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 2,500 $ 2,500 $ 8,928 $ 6,428 Total revenues 2,500 2,500 8,928 6,428 EXPENDITURES Capital outlay 18,021 18,021 859,030 (841,009) Total expenditures 18,021 18,021 859,030 (841,009) Net change in fund balances (15,521) (15,521) (850,102) (834,581) Fund balances —beginning 1,182,185 1,182,185 1,182,185 - Fund balances ending $ 1,166,664 $ 1,166,664 $ 332,083 $ (834,581) 108 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, 2009 REVENUES Property taxes Interest Total revenues EXPENDITURES Debt Service: Principal Interest Total expenditures Excess (deficiency) of revenues over Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 1,910,081 $ 1,910,081 $ 2,044,553 $ 134,472 65,000 65,000 32,653 (32,347) 1,975,081 1,975,081 2,077,206 102,125 1,695,000 1,695,000 1,695, 000 - 1,650,768 1,650,768 1,572,212 78,556 3,345,768 3,345,768 3,267,212 78,556 expenditures (1,370,687) (1,370,687) (1,190,006) 180,681 OTHER FINANCING SOURCES (USES) Transfers in 1,300,935 1,300,935 1,341,647 40,712 Total other financing sources (uses) 1,300,935 1,300,935 1,341,647 40,712 Net change in fund balances (69,752) (69,752) 151,641 221,393 Fund balances —beginning 1,999,842 1,999,842 1,999,842 - Fund balances ending $ 1,930,090 $ 1,930,090 $ 2,151,483 $ 221,393 109 CITY OF LA PORTE, TEXAS 2007 Certificate of Obligation Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For The Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 10,000 $ 10,000 $ 37,880 $ 27,880 Total revenues 10,000 $ 10,000 37,880 27,880 EXPENDITURES Capital outlay 1,165, 809 1,165, 809 2,731,053 (1,565,244) Total expenditures 1,165,809 1,165,809 2,731,053 (1,565,244) Excess (deficiency) of revenues over expenditures (1,155,809) (1,155,809) (2,693,173) (1,537,364) OTHER FINANCING SOURCES (USES) Transfers out (474,508) (474,508) (474,508) - Total other financing sources (uses) (474,508) (474,508) (474,508) - Net change in fund balances (1,630,317) (1,630,317) (3,167,681) (1,537,364) Fund balances —beginning 4,969,116 4,969,116 4,969,116 - Fund balances —ending $ 3,338,799 $ 3,338,799 $ 1,801,435 $ (1,537,364) 110 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, 2009 REVENUES Charges for Services Interest Miscellaneous Total revenues EXPENDITURES Current: General government Culture and recreation Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ 4,610 $ 4,610 $ - 50,000 50,000 110,459 60,459 - - 3,183 3,183 50, 000 54,610 118,252 63,642 - - 343,799 (343, 799) - 176,503 110,262 66,241 11,177, 355 11, 985, 409 8,677,899 2,853,449 11,177, 355 12,161, 912 9,131, 960 2,575,891 (11,127, 355) (12,107, 302) (9,013,708) 2,639,533 OTHER FINANCING SOURCES (USES) Transfers in 10,634,213 11,957,749 12,017,037 59,288 Transfers out - (43,000) (43,000) - Total other financing sources (uses) 10,634,213 11,914,749 11,974,037 59,288 Net change in fund balances (493,142) (192,553) 2,960,329 3,152,882 Fund balances —beginning 5,720,814 5,720,814 5,720,814 - Fund balances —ending $ 5,227,672 $ 5,528,261 $ 8,681,143 $ 3,152,882 111 112 SUPPLEMENTARY INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES General Fund These supplementary statements and schedules are included to provide management additional information for financial analysis. 113 CITY OF LA PORTE, TEXAS General Fund Schedule of Revenues - Budget and Actual For The Year Ended September 30, 2009 Taxes: Ad valorem: Current Delinquent Industrial payments Total ad valorem Penalty and interest Sales taxes Other taxes Franchise Fees: Electrical Gas Telephone Cable Commercial solidwaste Total franchise fees Charges for services: Public safety service fees Health and sanitation service fees Culture and recreation fees Other service fees Total charges for services Intergovernmental Licenses and permits: Building permits Licenses Total Licenses and permits Investment income Fines and forfeitures Budgeted Amounts Actual Original Final Amounts Variance with Final Budget Positive (Negative) $11,500,500 $ 12,216,140 $ 12,930,756 $ 714,616 150,000 210,097 274,124 64,027 9,860,078 10,181,383 10,292,030 110,647 21,510,578 22,60776 00 23,496,910 889,290 136,000 158,262 231,533 73,271 3,085,011 2,995,000 2,958,648 (36,352) 75,000 84,527 91,187 6,660 1,282,246 1,284, 838 1,284,840 2 142,968 183,823 169,249 (14,574) 238,678 284,662 297,821 13,159 250,876 282,046 318,908 36,862 77,300 88,648 89,607 959 1,992,068 2,124,017 2,160,425 36,408 1,267,055 1,437,582 1,487,176 49,594 1,913,000 1,923,000 1,848,717 (74,283) 430,890 390,727 448,051 57,324 335,317 333,617 355,320 21,703 3,946,262 4,084,926 4,139,264 54,338 6,000 3,500 1,980 (1,520) 594,250 569,007 610,913 41,906 33,430 27,030 30,701 3,671 627,680 596,037 641,614 45,577 450,000 300,000 274,383 (25,617) 1,405,065 1,351,416 1,668,364 316,948 Miscellaneous 25,000 30,000 50,577 20,577 Total revenues $33,258,664 $ 34,335,305 $ 35,714,885 $ 1,379,580 114 CITY OF LA PORTE, TEXAS General Fund Schedule of Expenditures - Budget and Actual For The Year Ended September 30, 2009 (Continued) GENERAL GOVERNMENT Administration: Emergency Management: Personal services Supplies Other services and charges Total Emergency Management General Administration: Personal services Supplies Other services and charges Total General Administration Human Resources: Personal services Supplies Other services and charges Total Human Resources Municipal Court: Personal services Supplies and materials Other services and charges Total Municipal Court Purchasing: Personal services Supplies Other services and charges Total Purchasing City Secretary: Personal services Supplies and materials Other services and charges Total City Secretary Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 149,360 $ 165,254 $ 164,749 $ 505 28,993 26,555 26,100 455 108,721 306,204 305,433 771 287,074 498,013 496,282 1,731 455,381 474,196 473,618 578 7,550 6,550 4,991 1,559 110,141 102,100 101,532 568 573,072 582,846 580,141 2,705 204,199 211,373 210,641 732 7,650 13,450 12,946 504 95,786 82,996 82,466 530 307,635 307,819 306,053 1,766 404,139 422,052 421,551 501 25,600 23,220 20,843 2,377 217,899 242,122 242,664 (542) 647,638 687,394 685,058 2,336 200,915 208,046 207,482 564 2,547 2,576 2,041 535 30,476 33,639 32,398 1,241 233,938 244,261 241,921 2,340 301,382 298,367 297,403 964 3,700 3,500 1,296 2,204 105,178 78,778 69,331 9,447 410,260 380,645 368,030 12,615 115 CITY OF LA PORTE, TEXAS General Fund Schedule of Expenditures - Budget and Actual For The Year Ended September 30, 2009 (Continued) Legal: Personal services Other services and charges Total Legal City Council: Personal services Supplies and materials Other services and charges Total City Council Total Administration Finance: Accounting: Personal services Supplies Other services and charges Total Accounting Nondepartmental: Personal services Supplies Other services and charges Capital outlay Total Nondepartmental Tax Office. - Personal services Supplies and materials Other services and charges Total Tax Office Budgeted Amounts Actual Original Final Amounts Variance with Final Budget Positive (Negative) 13,895 12,715 12,714 1.00 170,414 160,283 149,267 11,016 184,309 172,998 161,981 11,017 21,969 19,887 19,355 532 16,950 14,450 13,943 507 38,042 29,244 26,843 2,401 76,961 63,581 60,141 3,440 2,720,887 2,937,557 2,899,607 37,950 572,018 593,022 592,434 588 19,550 16,409 15,527 882 145,245 138,845 138,314 531 736,813 748,276 746,275 2,001 635,450 537,948 532,525 5,423 14,850 10,284 4,170 6,114 1,540,934 952,746 734,249 218,497 17,447 950,000 950,000 - 2,208,681 2,450,978 2,220,944 230,034 205,891 214,565 213,982 583 13,200 8,957 8,254 703 214,900 210,619 210,061 558 433,991 434,141 432,297 1,844 Total Finance 3,379,485 3,633,395 3,399,516 233,879 Planning and Engineering: Planning and Engineering: Personal services 833,676 826,317 825,157 1,160 Supplies 20,775 18,232 16,974 1,258 Other services and charges 123,019 102,975 101,816 1,159 Total Planning and Engineering 977,470 947,524 943,947 3,577 Inspection: Personal services 632,711 644,613 643,705 908 Supplies 27,186 26,633 25,763 870 Other services and charges 243,689 204,592 204,086 506 Total Inspection 903,586 875,838 873,554 2,284 Total Planning and Engineering 1,881,056 1,823,362 1,817,501 5,861 TOTAL GENERAL GOVERNMENT 7,981,428 8,394,314 8,116,624 277,690 116 CITY OF LA PORTE, TEXAS General Fund Schedule of Expenditures - Budget and Actual For The Year Ended September 30, 2009 (Continued) Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) PUBLIC SAFETY: Fire Fire Prevention: Personal services 241,230 217,062 213,919 3,143 Supplies 25,236 18,331 17,690 641 Other services and charges 40,836 42,066 41,489 577 Capital outlay 17,000 14,100 14,086 14 Total Fire Prevention 324,302 291,559 287,184 4,375 Fire suppression: Personal services 1,216,819 1,217,631 1,215,887 1,744 Supplies 131,312 113,275 111,326 1,949 Other services and charges 575,757 561,472 555,493 5,979 Total Fire Suppression 1,923,888 1,892,378 1,882,706 9,672 Emergency medical services: Personal services 1,532,500 1,501,455 1,500,811 644 Supplies 146,812 126,994 124,178 2,816 Other services and charges 202,563 195,735 194,337 1,398 Capital outlay 14,080 12,594 12,594 - Total Emergency Services 1,895,955 1,836,778 1,831,920 4,858 Total Fire 4,144,145 4,020,715 4,001,810 18,905 Police Police Administration: Personal services. 495,540 505,693 504,916 777 Supplies 25,159 24,693 23,749 944 Other services and charges 268,526 255,318 254,562 756 Total Police Administration 789,225 785,704 783,227 2,477 Police Patrol: Personal services 4,869,477 4,955,170 4,927,827 27,343 Supplies 243,902 185,755 173,758 11,997 Other services and charges 531,224 528,243 527,472 771 Total Police Patrol 5,644,603 5,669,168 5,629,057 40,111 Criminal Investigation: Personal services 1,433,312 1,388,098 1,384,377 3,721 Supplies 74,642 53,488 51,266 2,222 Other services and charges 168,444 149,285 147,236 2,049 Total Criminal Investigation 1,676,398 1,590,871 1,582,879 7,992 117 CITY OF LA PORTE, TEXAS General Fund Schedule of Expenditures - Budget and Actual For The Year Ended September 30, 2009 (Continued) Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Support Services: Personal services 738,760 722,317 721,661 656 Supplies 57,524 47,191 45,670 1,521 Other services and charges 166,394 149,840 148,946 894 Total Support Services 962,678 919,348 916,277 3,071 Total Police 9,072,904 8,965,091 8,911,440 53,651 TOTAL PUBLIC SAFETY 13,217,049 12,985,806 12,913,250 72,556 PUBLIC WORKS: Public Works Administration: Personal services 250,819 255,752 255,184 568 Supplies and materials 4,720 4,530 3,945 585 Other services and charges 104,544 111,320 110,730 590 Total Public Works Administration 360,083 371,602 369,859 1,743 Streets: Personal services 1,463,822 1,441,782 1,441,261 521 Supplies 171,948 130,700 125,362 5,338 Other services and charges 707,074 686,354 684,437 1,917 Capital outlay 53,000 48,000 47,252 748 Total Streets 2,395,844 2,306,836 2,298,312 8,524 TOTAL PUBLIC WORKS HEALTH AND SANITATION: Residential Solidwaste: Personal services Supplies Other services and charges Total Residential Solidwaste Commercial solidwaste: Other services and charges TOTAL HEALTH AND SANITATION CULTURE & RECREATION: Park Maintenance. - Personal services Supplies and materials Other services and charges Capital outlay Total Park Maintenance 2,755,927 2,678,438 2,668,171 10,267 1,045,383 1,053, 581 1,052,960 621 242,120 210,423 202,415 8,008 797,380 813,202 812,698 504 2,084,883 2,077,206 2,068,073 9,133 25,000 20,580 18,996 1,584 2,109,883 2,097,786 2,087,069 10,717 1,051,139 1,086,695 1,130, 389 (43, 694) 118,504 131,566 129,437 2,129 734,570 788,755 788,081 674 180,020 146,382 145,608 774 2,084,233 2,153, 398 2,193, 515 (40,117) 118 CITY OF LA PORTE, TEXAS General Fund Schedule of Expenditures - Budget and Actual For The Year Ended September 30, 2009 (Continued) Recreation: Personal services Supplies Other services and charges Total Recreation Special Services: Personal services Supplies Other services and charges Total Special Services Parks Administration: Personal Services Supplies Other services and charges Total Parks Administration Budgeted Amounts Actual Original Final Amounts 492,253 525,823 524,864 52,504 46,699 45,746 175,037 200,024 199,404 719,794 772,546 770,014 384,000 315,299 328,473 29,889 22,456 20,871 62,595 63,691 62,517 476,484 401,446 411,861 424,571 401,726 396,056 10,385 9,258 8,355 33,186 23,882 22,768 468,142 434,866 427,179 Variance with Final Budget Positive (Negative) 959 953 620 2,532 (13,174) 1,585 1,174 (10,415) 5,670 903 1,114 7,687 TOTAL CULTURE AND RECREATION 3,748,653 3,762,256 3,802,569 (40,313) TOTAL GENERAL FUND $ 29,812,940 $ 29,918,600 $ 29,587,683 119 $ 330,917 120 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. 121 CITY OF LA PORTE, TEXAS Combining Statement of Net Assets Nonmajor Proprietary Funds September 30, 2009 ASSETS Current assets: Cash and cash equivalents Investments Receivables, net of allowance for uncollectibles Accrued interest receivable Restricted cash and cash equivalents: Customer service deposits Total current assets Noncurrent assets: Capital assets: Land Buildings and improvements Improvements other than buildings Vehicles and equipment Construction in progress Less accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable Due to other funds Accrued salaries payable Other current liabilities Payable from restricted assets: Customer deposits Total current liabilities Noncurrent liabilities: Net pension obligation Net OPEB obligation Accrued separation pay Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets Unrestricted (deficit) Total net assets Airport Business -type Activities - Enterprise Funds Total Nonmajor Bay Forest Proprietary Golf Course Funds Sylvan Beach Convention Center $ 174,120 $ 109,397 $ 2,606 $ 286,123 125,225 93,976 - 219,201 2,664 - 6,363 9,027 176 70 - 246 302,185 1,885 205,328 - 1,885 8,969 516,482 203,504 - 1,880,965 2,084,469 - 383,586 731,524 1,115,110 5,725,145 - 2,834,289 8,559,434 - - 43,630 43,630 - 34,905 - 34,905 (2,786,315) (351,922) (2,540,569) (5,678,806) 3,142, 334 66,569 2,949, 839 6,158, 742 3,444,519 271,897 2,958,808 6,675,224 906 467 34,305 35,678 - - 144,706 144,706 - - 23,714 23,714 1,500 - 7,232 8,732 - 1,885 - 1,885 2,406 2,352 209,957 214,715 - - 20,997 20,997 - - 50,085 50,085 - 4,147 131,457 135,604 - 4,147 202,539 206,686 2,406 6,499 412,496 421,401 3,142,334 66,569 2,949,839 6,158,742 299,779 198,829 (403, 527) 95,081 $ 3,442,113 $ 265,398 $ 2,546,312 $ 6,253,823 122 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, 2009 Business -type Activities - Enterprise Funds Total Sylvan Beach Nonmajor Convention Bay Forest Proprietary Airport Center Golf Course Funds Operating revenues: User fees $ 53,325 $ 2,479 $1,067,105 $1,122,909 Operating expenses: Personal services - - 918,498 918,498 Supplies - 20 176,527 176,547 Other services and charges 18,115 10,757 202,380 231,252 Depreciation 165,071 14,872 133,790 313,733 Total operating expenses 183,186 25,649 1,431,195 1,640,030 Operating loss (129,861) (23,170) (364,090) (517,121) Nonoperating revenues (expenses): Interest income 3,510 2,116 - 5,626 Loss on sale of assets - - (5,597) (5,597) Total nonoperating revenue (expenses) 3,510 2,116 (5,597) 29 Loss before contributions and transfers (126,351) (21,054) (369,687) (517,092) Capital contributions - - 30,185 30,185 Transfers in - 25,000 98,513- 123,513 Transfers out (633) (2,717) (42,934) (46,284) Change in net assets (126,984) 1,229 (283,923) (409,678) Total net assets —beginning 3,569,097 264,169 2,830,235 6,663,501 Total net assets —ending $3,442,113 $ 265,398 $2,546,312 $6,253,823 123 CITY OF LA PORTE, TEXAS Combining Statement of Cash Flows Nonmajor Proprietary Funds For The Year Ended September 30, 2009 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 (refunded) from user fees $ 70,491 $ (51,007) $ 1,071,131 $ 1,090,615 Cash payments to suppliers (19,959) (23,467) (272,346) (315,772) Cash payments for personal services - (3,721) (853,258) (856,979) Net cash provided (used) by operating activities 50,532 (78,195) (54,473) (82,136) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds - 25,000 98,513 123,513 Transfers to other funds (633) (2,717) (42,934) (46,284) Net cash provided (used) by noncapital financing activies (633) 22,283 55,579 77,229 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments Net investments purchased Net investments sold Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Balances -beginning of the year Balances -end of the year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense (Increase) decrease in accounts receivable (Increase) decrease in due from other funds Increase (decrease) in accrued salaries payable Increase (decrease) in accounts payable - Increase (decrease) in other current liabilities Increase (decrease) in customer utility deposits Increase (decrease) due to other funds Increase (decrease) in accrued employee separation Increase (decrease) in net pension olbligation Increase (decrease) in net OPEB obligation Total adjustments Net cash provided (used) by operating activities Reconciliation of total cash and cash investments: Current Assets - cash and cash equivalents Restricted Assets - cash and cash equivalents Total cash and cash equivalents Noncash investing, capital and financing activities: Increase in fair value of assets Contributions of capital assets 3,616 2,343 5,959 (173,035) (66,484) (239,519) 89,646 52,253 - 141,899 (79,773) (11,888) - (91,661) (29,874) (67,800) 1,106 (96,568) 203,994 179,082 1,500 384,576 $ 174,120 $ 111,282 $ 2,606 $ 288,008 $ (129,861) $ (23,170) $ (364,090) $ (517,121) 165,071 14,872 133,790 313,733 17,166 - 1,055 . 18,221 - 1,267 2,971 4,238 (3,264) 1,747 (1,517) (1,844) (12,690) (888) (15,422) (19,153) 292 (18,861) (35,600) - (35,600) - 107,158 107,158 (457) (7,590) (8,047) - - 20,997 20,997 - - 50,085 50,085 180,393 - (55,025) - 309,617 - 434,985 $ 50,532 $ (78,195) $ (54,473) $ (82,136) $ 174,120 $ 109,397 $ 2,606 $ 286,123 - 1,885 - 1,885 $ 174,120 $ 111,282 $ 2,606 $ 288,008 $ 137 $ 53 $ - $ 190 - - 30,185 30,185 124 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. to ... 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. 125 CITY OF LA PORTE, TEXAS Internal Service Funds Combining Statement of Net Assets September 30, 2009 ASSETS Current assets: Cash and cash equivalents Investments Accrued interest receivable Miscellaneous receivable Material and supplies inventories, at cost Total current assets Noncurrent assets: Capital assets Vehicles and equipment Less accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable Accrued salaries payable Deferred revenue Total current liabilities Noncurrent liabilities: Accrued employee separation pay Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets Unrestricted Total net assets Motor Pool Technology Insurance Totals $ 1,379,810 $ 416,288 $ 1,906,394 $ 3,702,492 992,080 299,377 1,371,051 2,662,508 1,431 373 1,918 3,722 - - 120,248 120,248 36,607 - - 36,607 2,409,928 716,038 3,399,611 6,525,577 12,230,998 796,175 - 13,027,173 (7,458,567) (729,214) - (8,187,781) 4,772,431 66,961 - 4,839,392 7,182, 359 782,999 3,399,611 11, 364, 969 62,584 94,962 473,369 630,915 20,724 9,359 - 30,083 - - 321 321 83,308 104,327 473,690 661,319 103,511 - - 103,511 103,511 - - 103,511 186,819 104,321 473,690 764,830 4,772,431 66,961 - 4,839,392 2,223,109 611,717 2,925,921 5,760,747 $ 6,995,540 $ 678,678 $ 2,925,921 $ 10,600,139 126 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, 2009 Motor Pool Technology Insurance Totals Operating revenues: User fees $ 2,058,430 $ 887,944 $ 3,568,642 $ 6,515,016 Cable fees - 46,458 - 46,458 Total operating revenues 2,058,430 934,402 3,568,642 6,561,474 Operating expenses: Personal services 684,520 307,121 281,797 1,273,438 Supplies 361,487 187,562 - 549,049 Other sevices and charges 159,990 684,532 3,354,683 4,199,205 Depreciation 758,387 24,018 - 782,405 Total operating expenses 1,964,384 1,203,233 3,636,480 6,804,097 Operating income (loss) 94,046 (268,831) (67,838) (242,623) Nonoperating revenues: Interest income 32,277 8,297 36,724 77,298 Gain (loss) on sale of assets 20,662 (35,284) - (14,622) Total nonoperating revenues 52,939 (26,987) 36,724 62,676 Income (loss) before contributions and transfers 146,985 (295,818) (31,114) (179,947) Capital contributions 227,404 - - 227,404 Transfers in 2,456 25,000 610,403 637,859 Transfers out (16,159) (518) (309,044) (325,721) Change in net assets 360,686 (271,336) 270,245 359,595 Net assets -beginning 6,634,854 950,014 2,655,676 10,240,544 Net assets -ending $ 6,995,540 $ 678,678 $ 2,925,921 $10,600,139 127 CITY OF LA PORTE, TEXAS Internal Service Funds Combining Statement of Cash Flows For The Year Ended September 30, 2009 Motor Pool Technology Insurance Totals CASH FLOWS FROM OPERATING ACTIVITIES Cash received from user fees $ 2,082,187 $ 937,599 $ 3,646,650 $ 6,666,436 Cash payments to suppliers (517,875) (856,169) (3,593,447) (4,967,491) Cash payments for personal services (676,375) (303,622) (281,797) (1,261,794) Net cash provided (used) by operating activities 887,937 (222,192) (228,594) 437,151 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in from other funds Transfers out to other funds Net cash provided (used) by noncapital financing activies CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Payments for capital acquisitions Proceeds from sale of assets Net cash (used) by capital and related financing activies CASH FLOWS FROM INVESTING ACTIVITIES 2,456 25,000 610,403 637,859 (16,158) (518) (309,044) (325,720) (13, 702) 24,482 301,359 312,139 (1,941,151) - - (1,941,151) 72,015 - - 72,015 (1,869,136) (1,869,136) Interest on investments 34,666 8,907 38,422 81,995 Investments purchased (1,370,841) (413,675) (1,894,497) (3,679,013) Investments sold 908,215 258,026 1,024,890 2,191,131 Net cash provided (used) by investing activities (427,960) (146,742) (831,185) (1,405,987) Net decrease in cash and cash equivalents (1,422,861) (344,452) (758,420) (2,525,733) Balances -beginning of the year 2,802,671 760,740 2,664,814 6,228,225 Balances --end of the year $ 1,379,810 $ 416,288 $ 1,906,394 $ 3,702,492 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense (Increase) decrease in accounts receivable (increase) decrease in due from other funds (Increase) decrease in inventories Increase (decrease) in accrued salaries payable Increase (decrease) in accounts payable Increase (decrease) in deferred revenue Increase (decrease) in accrued employee separation Total adjustments Net cash provided (used) by operating activities $ 94,045 $ (268, 831) $ (67, 838) $ (242, 624) 758,387 24,018 - 782,405 - - 78,566 78,566 23,757 3,197 - 26,954 7,229 - - 7,229 5,895 3,499 - 9,394 (3,626) 15,925 (238,764) (226,465) - - (558) (558) 2,250 - - 2,250 793,892 46,639 (160,756) 679,775 $ 887,937 $ (222,192) $ (228,594) $ 437,151 Noncash investing, capital and financing activities: Increase in fair value of assets $ 1,083 $ Contributions of captial assets 227,404 128 (343) $ 1,497 $ 2,237 - - 227,404 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. 129 130 CITY OF LA PORTE, TEXAS Capital Assets Used in the Operation of Governmental Funds Schedule by Source For The Year Ended September 30, 2009 Governmental funds capital assets Land $ 9,703,983 Buildings 34,668,087 Equipment 2,729,709 Improvements 9,223,362 Infrastructure 33,943,387 Construction in progress 5,565,123 Total governmental funds capital assets $ 95,833,651 Investment in governmental funds capital assets by source Current Operations $ 29,796,774 Capital Projects 64,711,771 Section 4B Sales Tax 1,325,106 Total governmental funds capital assets $ 95,833,651 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. 131 CITY OF LA PORTE, TEXAS Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activity September 30, 2009 Function and Activity General Government Administration Planning Total general government Public Safety Fire Police Total Public Safety Public Works Adminstration Streets Total Public Works Cultural and Recreational Parks and Recreation Total governmental funds capital assets Land Buildings Equipment Improvements $ 1,033,664 $ 10, 533, 051 $ 364,054 $ 407,287 399,789 - 19,922 - 1,433,453 10,533,051 383,976 407,287 798,030 7,621,626 862,441 28,422 45,089 9,762,736 977,518 362,200 843,119 17, 384, 362 1,839,959 390,622 2,760,405 2,112,774 172,812 282,848 2,760,405 2,112,774 172,812 282,848 8,142,605 332,962 4,667,006 4,637,900 $ 9,223,362 $ 34,668,087 $ 2,729,709 $ 9,703,983 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. 132 Construction Infrastructure in Progress Total $ - $ 3,492,128 $ 15,830,184 255,388 1,003,055 1,678,154 255,388 4,495,183 17,508,338 - 75,293 9,385,812 - 11,147, 543 75,293 20,533,355 17,074,567 13,633 22,417,039 16,515,354 - 16,515,354 33, 589, 921 13,633 38, 932, 393 98,079 981,013 18,859,565 $ 33,943,388 $ 5,565,122 $ 95,833,651 133 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, 2009 Governmental Governmental Fund Capital Fund Capital Assets Assets October 1, Additions/ Retirements/ September 30, Function and Activity 2008 Adjustments Adjustments 2009 General government Administration $ 8,576,382 $ 7,740,394 $ (486,593) $ 15,830,183 Planning 1,484,215 - 193,939 1,678,154 Total general government 10,060,597 7,740,394 (292,654) 17,508,337 Public safety Fire 9,368,538 244,676 (227,404) 9,385,810 Police 10, 596, 861 744,624 (193, 939) 11,147, 546 Total public safety 19,965,399 989,300 (421,343) 20,533,356 Public works Administration 20,217,053 2,471,668 (518,418) 22,170,303 Streets 16, 762, 090 - - 16, 762, 090 Total public works 36,979,143 2,471,668 (518,418) 38,932,393 Cultural and Recreational Parks and recreation 15,913,225 2,562,703 383,637 18,859,565 Total governmental funds capital assets $ 82,918,364 $ 13,764,065 $ (848,778) $ 95,833,651 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. 134 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 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 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. IiBYA im. 152 Demographic and Economic Information 159 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 161 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. 135 136 City of La Porte, Texas Net Assets by Component Last Seven Fiscal Years (accrual basis of accounting) (unaudited) Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets Business -type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business -type activities net assets Fiscal Year 2003 2004 2005 2006 2007 2008 2009 $ 23,400,108 $ 32,752,971 $ 28,933,050 $ 28,424,345 $ 27,529,009 $24,922,673 32,667,469 5,804,419 5,770,840 6,642,077 7,363,187 13,316,591 16,566,966 16,169,693 23, 953,457 12,997,982 19,369,700 18, 983,653 19, 985, 983 18, 985,215 16,838,404 $ 53,157,984 $ 51,521,793 $ 54,944,827 $ 54,771,185 $ 60,831,583 $60,474,854 $65,675,566 $ 26,109,776 $ 25,996,416 $ 26,589,684 $ 29,642,136 $ 29,481,368 $35,483,003 $ 40,206,362 3,042,730 3,662,800 3,407,445 2,185,791 2,184,725 2,188,240 2,169,021 4,709,368 2,647,090 1,264,814 3,396,751 3,295,501 3,799,361 1,656,424 $ 33,861,874 $ 32,306,306 $ 31,261,943 $ 35,224,678 $ 34,961,594 $41,470,604 $44.031,807 Primary govemment Invested in capital assets, net of related debt $ 49,509,884 $ 58,749,387 $ 55,522,734 $ 58,066,481 57,010,377 $60,405,676 $72,873,831 Restricted 8,847,149 9,433,640 10,049,522 9,548,978 15,501,316 18,755,206 18,338,714 Unrestricted 28,662,825 15,645,072 20,634,514 22,380,404 23,281,484 22,784,576 18,494,828 Total primary government net assets $ 87,019,858 $ 83,828,099 $ 86,206,770 $ 89,995,863 $ 95,793,177 $101,945,458 $109,707,373 Note: The City of La Porte first applied GASB Statement 34 in fiscal year 2003; therefore, government -wide financial information for years prior to fiscal year 2003 is not available. 137 City of La Porte, Texas Changes in Net Assets Last Seven Fiscal Years (accrual basis of accounting) (unaudited) Fiscal Year 2003 2004 2005 2006 2007 2008 2009 Expenses Govemmental activities: General Government $ 8,625,554 $ 10,487,889 $ 7,411,122 $ 7,348,812 $ 8,410,865 $ 10,056,369 $11,261,093 Public Safety 10,771,423 11,947,286 10,367,759 11,602,951 12,153,324 16,267,453 15,495,372 Public Works 3,638,063 1,267,829 5,164,855 5,209,686 3,668,425 4,348,281 8,095,274 Health and Sanitation 1,823,462 1,906,519 1,887,204 1,862,368 2,487,531 2,465,327 2,378,808 Culture and Recreation 4,048,974 4,106,491 3,717,791 3,579,917 3,120,183 4,004,206 4,222,945 Interest on Long -tens debt 747,351 689,644 863,818 1,226,231 1,352,747 1,694,638 1,527,041 Total govemmental activities expenses 29,654,827 30,405,658 29,412,549 30,829,965 31,193,075 38,836,274 42,980,533 Business -type activities: Water Services 6,339,238 6,256,424 6,477,962 6,844,635 6,548,382 6,630,986 4,832,857 Sewer Services 1,913,284 1,895,709 1,819,756 1,894,415 2,086,651 2,247,031 2,603,424 Airport 149,472 142,765 157,186 122,548 123,904 155,970 183,186 Bay Forest Golf Course 1,284,729 1,222,819 1,242,613 1,285,121 1,310,589 1,361,970 1,436,792 Sylvan Beach Convention Center 212,947 194,314 211,682 214,552 218,053 225,353 25,649 Total business -type expenses 9,899,670 9,712,031 9,909,199 10,361,271 10,287,579 10,621,310 9,081,908 Total primary govemment expenses $ 39,554,497 $ 40,117,689 $ 39,321,748 $ 41,191,236 $ 41,480,654 $ 49,457,584 $52,062,441 Program Revenues Governmental activities: Charges for services: General govemment $ 660,955 $ 528,296 $ 670,332 $ 1,002,267 $ 2,006,607 $ 2,724,739 $ 3,060,864 Public safety 1,689,780 1,441,662 1,498,310 1,333,005 435,128 591,101 1,681,028 Public works 1,481,061 106,026 24,242 - - - 4,610 Health and sanitation 830,991 463,629 1,429,617 1,770,611 1,856,013 1,888,934 1,848,717 Culture and recreation 657,784 1,157,449 460,796 429,971 418,143 417,636 447,719 Operating grants and contributions 480,037 576,262 2,639,934 1,031,408 991,679 4,647,718 5,165,295 Capital grants and contributions - - - - - 234,630 1,259,614 Total governmental activities program revenues 5,800,608 4,273,324 6,723,231 5,567,262 5,707,570 10,504,958 13,467,847 Business -type activities: Charges for services Water services 4,157,556 4,155,589 4,500,140 5,438,932 4,789,854 6,132,716 4,520,092 Sewer services 2,493,284 2,493,134 2,591,406 2,842,495 2,763,715 3,670,202 3,362,791 Airport 30,001 32,728 32,728 35,624 42,359 64,639 53,325 Golf course 943,493 1,022,103 965,983 955,867 911,371 1,031,822 1,067,105 Sylvan beach convention center 161,355 180,642 163,859 162,508 189,290 161,342 2,479 Capital grants and contributions - - - - 1,060,948 2,337,630 1,785,653 Total business -type program revenues 7,785,689 7,884,196 8,254,116 9,435,426 9,757,537 13,398,351 10,791,445 Total primary govemment program revenues $ 13,586,297 $ 12,157,520 $ 14,977,347 $ 15,002,688 $ 15,465,107 $ 23,903,309 $24,259,292 138 Net (expense)/revenue Governmental activities: Business -type activities: Total primary government net expense General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property taxes, levied for general purposes Property taxes, levied for debt service Industrial payments Franchise taxes Sales tax Unrestricted investment earnings Grants not specified for specific program Miscellaneous Gain/(loss) on sale/retirement of capital assets Transfers Total governmental activities Business -type activities Unrestricted investment earnings Miscellaneous Gain/(loss) on sale/retirement of capital assets Transfers Total business -type activities Total primary government Change in Net Assets Governmental activities Business -type activities Total primary government Fiscal Year 2003 2004 2005 2006 2007 2008 2009 $ (23,854,219) $ (26,132,334) $ (22,689,318) $ (25,262,703) $ (25,485,505) $ (28,331,316) $ (29,694,539) (2,113,981) (1,827,835) (1,655,083) (925,845) (530,042) 2,777,041 1,709,537 $ (25,968,200) $ (27,960,169) $ (24,344,401) $ (26,188,548) $ (26,015,547) $ (25,554,275) $ (27,985,002) $ 8,797,886 $ 9,139,422 $ 10,192,599 $ 10,535,316 $ 11,246,050 $ 11,802,564 $ 14,389,535 2,070,120 1,922,117 1,623,096 1,661,801 1,819,554 1,880,095 2,001,702 7,276,821 6,896,112 6,991,926 7,659,591 8,188,891 7,958,522 10,554,872 1,682,849 1,718,875 1,885,801 1,986,698 2,003,691 2,165,343 2,160,425 3,037,574 3,263,459 3,459,979 4,067,767 5,735,725 5,803,077 5,787,406 542,254 376,359 720,137 1,874,828 2,386,980 1,782,572 687,567 - - - 75,189 - - 2,000 704,886 495,102 753,595 1,137,928 89,400 115,351 90,599 (260,545) - 103,594 - - - - (253,629) 684,697 381,625 (3,910,056) 75,612 (3,532,936) (778,855) 23,598,216 24,496,143 26,112,351 25,089,062 31,545,903 27,974,588 34,895,251 121,174 88,602 165,162 300,099 342,566 199,060 72,814 889,298 874,146 827,183 694,507 - - - - (5,784) - (16,083) - - 253,629 (684,697) (381,625) 3,910,056 (75,612) 3,532,936 778,855 1,264,101 272,267 610,720 4,888,579 266,954 3,731,996 851,669 $ 24,862,317 $ 24,768,410 $ 26,723,071 $ 29,977,640 $ 31,812,856 $ 31,706,583 $ 35,746,920 $ (256,003) $ (1,636,191) $ 3,423,033 $ (173,642) $ 6,060,398 $ (356,728) $ 5,200,712 (849,880) (1,555,568) (1,044,363) 3,962,734 (263,088) 6,509,037 2,561,206 $ (1,105,883) $ (3,191,759) $ 2,378,670 $ 3,789,091 $ 5,797,310 $ 6,152,307 $ 7,761,918 Note: The City of La Porte first applied GASB Statement 34 in fiscal year 2003; therefore, government -wide financial information for years prior to fiscal year 2003 is not available. 139 City of La Porte, Texas Governmental Activities Tax Revenues By Source Last Seven Fiscal Years (accrual basis of accounting) (unaudited) Fiscal Property Industrial Franchise Public Service Year Taxes Payments Taxes Taxes Total 2003 $10,868,006 $ 7,276,821 $ 1,682,849 $ 3,037,574 $22,865,250 2004 11, 061, 539 6,896,112 1,718,875 3,263,459 22, 939, 985 2005 11,815,694 6,991,926 1,885,801 3,459,979 24,153,400 2006 12,197,117 7,659,591 1,986,698 4,067,767 25,911,173 2007 13,065,604 8,188,891 2,003,691 5,735,725 28,993,911 2008 13,682,659 7,958,522 2,165,343 5,803,077 29,609,601 2009 16,391,237 10,554,872 2,160,425 5,787,406 34,893,940 Note: The City of La Porte first applied GASB Statement 34 in fiscal year 2003; therefore government -wide financial information for years prior to fiscal year 2003 is not available. 140 141 City of La Porte, Texas Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (unaudited) General fund Reserved Unreserved Total general fund All other governmental funds Reserved U n reserved/ U n d es i g n ated Unreserved, reported in: Special revenue funds Capital projects funds Total all other governmental funds Fiscal Year 2000 2001 2002 2003 2004 $ 72,088 $ 58,827 $ 74,843 $ 209,191 $ 440,926 5,924,197 7,608,591 7,053,076 6,632,833 7,009,028 $ 5,996,285 $ 7,667,418 $ 7,127,919 $ 6,842,024 $ 7,449,954 $ 1,263,483 $ 1,303,068 $ 1,589,610 $ 7,462,916 $ 1,584,497 2,837,718 3,307,882 3,850,787 3,770,935 1,005,159 13, 038,143 11, 765, 217 13, 778, 877 5,067,980 9,287,535 17.139. 344 $ 16. 376.167 $ 19, 219, 274 $ 16, 301, 831 $ 11, 877,191 142 Fiscal Year 2005 2006 2007 2008 2009 $ 209,191 $ 144,775 $ 169,708 $ 360,727 $ 198,665 8,972,133 10,970,885 13,687,895 13,587, 254 13, 395, 364 $ 9,181, 324 $ 11,115, 660 $ 13, 857, 603 $ 13, 947, 981 $ 13, 594, 029 $ 2,061,426 $ 2,266,406 $ 2,670,858 $ 3,021,882 $ 293,601 4,255,634 5,100, 995 7,501,313 6,325,089 3,517,187 16,488, 090 18, 813, 872 18, 660, 427 19, 933, 451 17, 943, 808 T, 92 Rn5 15n S 26.181273 $ 23.832.598 $ 29,280,422 $ 21,754,596 143 City of La Porte, Texas Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (unaudited) 2000 2001 2002 2003 Revenues Taxes $ 20,860,043 $ 22,406,291 $ 23,300,851 $ 22,922,669 Donations - - - - Harris County Joint Ventures - - - - Licenses and permits 337,259 262,010 238,535 199,970 Fines and forfeits 407,459 561,547 614,534 847,250 Charges and services 3,147,031 2,923,504 2,129,487 2,275,333 Intergovernmental 313,261 673,105 385,722 480,037 Interest 1,395,339 1,626,693 748,798 481,822 Miscellaneous 193,585 119,228 143,668 125,020 Total revenues $ 26,653,977 $ 28,572,378 $ 27,561,595 $ 27,332,101 Expenditures General Government Public Safety Public Works Health and Sanitation Culture and Recreation Debt Service Principal Interest Capital Outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Issuance of debt Premium on bond Transfers in Transfers out Proceeds from sale of assets Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures 5,152,844 5,232,112 5,294,977 5,542,520 8,644,309 9,364,320 10,165,683 10,477,080 2,304,829 2,487,825 2,422,522 2,556,011 2,411,767 2,278,761 1,764,906 1,823,462 2,944,296 3,058,199 3,297,865 3,475,888 1,555,000 1,775,000 1,685,000 1,590,000 590,841 729,932 634,535 795,199 2,685,085 3,032,461 4,077,477 2,771,651 26,288,971 27,958,610 29,342,965 29,031,811 365,006 613,768 (1,781,370) (1,699,710) 6,250,000 - 5,400,000 - 1,099,032 1,974,671 1,870,191 1,919, 871 (1,377,318) (1,849,671) (3,185,214) (3,423,500) 5,971,714 125,000 4,084,977 (1,503,629) $ 6,336,720 $ 738,768 $ 2,303,607 $ (3,203,339) 9.1 % 144 10.0% 9.2% 9.1% Fiscal Year 2004 2005 2006 2007 2008 2009 $ 22,948,635 $ 24,045,940 $ 25,687,864 $ 28,919,159 $ 30,059,710 $34,929,693 - 30,000 - 30,000 - - - 1,751,555 - - - - 320,405 531,091 683,284 919,923 559,803 641,614 554,559 678,205 848,232 1,243,694 1,726,433 1,832,570 2,947,340 3,233,453 3,887,570 3,966,801 3,958,189 4,469,922 576,262 1,112,687 1,174,381 716,103 4,755,080 4,868,313 325,418 630,683 1,709,163 2,117,375 1,883,095 610,270 32,605 183,658 163,380 77,056 90,409 105,221 $ 27,705,224 $ 32,197,272 $ 34,153,874 $ 37,990,111 $ 43,032,719 $47,457,603 7,971,284 6,848,838 7,236,765 7,696,436 8,418,445 9,869,159 10,414,544 10,532,857 11,071,829 11,769,003 15,609,623 13, 858, 540 2,361,192 2,430,322 2,360,073 2,407,428 2,908,970 6,663,539 1,758,964 1,808,313 1,813,812 1,972,823 2,478,846 2,087,069 3,245,144 3,067,815 3,010,725 3,103,466 3,470,123 3,817,253 1,490, 000 1,330,000 1,195, 000 1,235,000 1,655,000 1,695,000 699,834 1,030,430 1,374,314 1,582,287 1,757,889 1,572,212 3,259,141 8,566,314 6,550,309 10,012,947 6,351,166 15,556,898 31,200,103 35,614,889 34,612,827 39,779,390 42,650,062 55,119,670 (3,494,879) (3,417,617) (458,953) (1,789,279) 382,657 (7,662,067) - 16,586,900 6,965,000 8,075,000 - - - - 191,055 37,572 - - 3,469,026 3,222,196 6,055,874 4,196,574 7,625,287 14,231,895 (3,790,857) (3,774,399) (7,532,602) (5,147,853) (7,501,259) (12,118,702) - 42,250 90,083 21,253 31,518 136,559 (321,831) 16,076,947 5,769,410 7,182,546 155,546 2,249,752 $ (3,816,710) $ 12,659,330 $ 5,310,457 $ 5,393,267 $ 538,203 $ (5,412,315) 7.8% 8.7% 9.2% 145 9.5% 9.4% 8.3% City of La Porte, Texas Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (unaudited) Fiscal Year Estimated Market Value Less: Total Taxable Ended Real Personal Tax Exempt Assessed September 30 Property Property Property Value 2000 $ 1,348,881,240 $ 258,255,710 $ 187,918,790 $ 1,419,218,160 2001 1,346,611,820 295,183,470 219,056,080 1,422,739,210 2002 1,461,368,400 295,213,550 251,950,970 1,504,630,980 2003 1,498,049,850 270,257,240 255,642,570 1,512,664,520 2004 1,546,560,410 279,687,470 265,840,970 1,560,406,910 2005 1,601,433,200 311,721,280 278,265,540 1,634,888,940 2006 1, 777, 351, 563 325, 549,640 407, 734,605 1,695,166, 598 2007 1,861,821,075 350,191,031 419,779,423 1,792,232,683 2008 2,007,113,146 372, 331, 715 428, 955, 092 1,950,489,769 2009 2,237,095,319 469,916,389 502,091,647 2,204,920,061 Source: City of La Porte records and the Harris County Appraisal District 146 Total Assessed Direct Total Value as a Tax Taxable Percentage of Rate Value Actual Value 0.71 $ 1,419,218,160 100.00% 0.71 1,422,739,210 100.00% 0.71 1,504,630,980 100.00% 0.71 1,512,664,520 100.00% 0.71 1,560,406,910 100.00% 0.71 1,634,888,940 100.00% 0.71 1,695,166,598 100.00% 0.71 1,792,232,683 100.00% 0.71 1,950,489,769 100.00% 0.71 2, 204, 920, 061 100.00% 147 City of La Porte, Texas Property Tax Rates Direct and Overlapping Governments (Per $100 of Assessed Value) Last Ten Fiscal Years (Unaudited) City of La Porte' Overlapping Rates General Obligation Harris County Port of Harris County Fiscal Basic Debt Total Flood Control Harris Houston Board of Year Rate Service Direct District 2 County 2 Authority 2 Education 2 2000 $ 0.570 $ 0.140 $ 0.710 $ 0.061700 $ 0.35900 $ 0.01830 $ 0.006300 2001 0.570 0.140 0.710 0.047600 0.38390 0.01830 0.006300 2002 0.570 0.140 0.710 0.047600 0.38390 0.01830 0.006300 2003 0.575 0.135 0.710 0,041740 0.38810 0.01990 0.006300 2004 0.575 0.135 0.710 0,033180 0.39990 0.01670 0.006300 2005 0.611 0.099 0.710 0,033220 0.39986 0.01474 0.006290 2006 0.611 0.099 0.710 0.032410 0.40239 0.01302 0.006290 2007 0.612 0.098 0.710 0.031060 0.39239 0.01437 0.005853 2008 0.619 0.091 0.710 0.030860 0.38923 0.01773 0.005840 2009 0.619 0.091 0.710 0.029220 0.39224 0.01636 0.006050 Source: ' 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 148 Overlapping Rates San Jacinto Hospital La Porte Jr. College District 2 I.S.D. 3 District 4 Total $ 0,20270 $ 1.650 $ 0.126000 $ 3.13400 0.19020 1.630 0.130700 3.11700 0.19020 1.630 0.130700 3.11700 0.19020 1.680 0.130700 3.16694 0.19020 1.734 0.139100 3.22938 0.19216 1.734 0.145365 3.23564 0.19216 1.635 0.145365 3.13664 0.19216 1.305 0.145365 2.79620 0.19216 1.325 0.163411 2.83423 0.19216 1.325 0.170800 2.84183 149 City of La Porte, Texas Principal Property Tax Payers Current Year and Ten Years Ago (Unaudited) �nn4 1999 Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assed Assessed Taxpayer Value Value Taxpayer Value Value Port Crossing Land LP Conoco Phillips Co. Oxy Vinyls LP Equistar Chemicals LP Underwood Dist Ineos USA LLC Wilson Supply PPG Industries Inc. Granite Underwood Dist Ctr LP Dow Chemical $ 56,971,629 2.58% 49,954,346 2.27% 49,177,149 2.23% 48,358,225 2.19% 38,866,438 1.76% 38,002,780 1.72% 36, 620, 565 1.66% 29, 927, 698 1, 36% 24,412, 945 1.11 % 24, 406,127 1.11 % $ 396,697,902 17.99% Source: City of La Porte Tax Department 150 Conoco Inc Equistar Chemicals LP H L & P Solvay Polymer Corp Occidental Electrochem PPG Industries Fina Oil & Chem. Co. Dow Chemicals Geon Company AKZO Nobel Chemicals Inc. $ 50,273,800 3.99% 44,664,700 3.55% 42,025,150 3.34% 37,068,510 2.94% 33,244,600 2.64% 29,985,330 2.38% 24, 531, 890 1.95% 21,106, 510 1.68% 20,408,900 1.62% 14, 554,180 1.16% $ 317,863,570 25.25% City of La Porte, Texas Property Tax Levies and Collections Last Ten Fiscal Years (unaudited) Fiscal Collected within the Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date Ended for the Percentage in Subsequent Percentage September 30, Fiscal Year Amount of Levy Years Amount of Levy 2000 $ 9,197, 629 $ 9,006,072 97.92% $ 164,675 $ 9,170, 747 99.71 % 2001 10, 026, 496 9,780,571 97.55% 217,519 9,998,090 99.72% 2002 10,786,185 10,463,515 97.01% 293,833 10,757,348 99.73% 2003 10, 826,184 10, 491, 257 96.91 % 289,600 10, 780, 857 99.58% 2004 11,178,351 10,829,202 96.88% 297,565 11,126,767 99.54% 2005 11,669,473 11,334,572 97.13% 268,826 11,603,398 99.43% 2006 12, 080, 351 11, 755,121 97.31 % 254,798 12, 009, 919 99.42% 2007 12,703,850 12,418,873 97.76% 214,198 12,633,071 99.44% 2008 13,857,467 13,476,872 97.25% 194,903 13,671,775 98,66% 2009 15,654,937 15,377,149 98.23% - 15,377,149 98,23% Source: City of La Porte Tax Department 151 City of La Porte, Texas Ratio of Outstanding Debt by Type Last Ten Fiscal Years (unaudited) Governmental Activities General Certificates Fiscal Obligation of Year Bonds Obligation 2000 $ 11, 370, 000 $ 3,000,000 2001 9,745,000 2,850,000 2002 8,210,000 2,700,000 2003 6,770,000 2,550,000 2004 5,430,000 2,400,000 2005 11,925,000 11,050,000 2006 12,610,000 16,405,000 2007 12,070,000 24,055,000 2008 11,475,000 23,265,000 2009 10,870,000 22,445,000 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 provided from the 2000 US Census. See Demographic and Economic Statistics for personal income and population data. Other Obligations 5,400,000 5,400,000 5,400,000 5,400,000 5,130,000 4,860,000 4,590,000 4,320,000 152 Business -Type Activities General Water and Obligation Total Percentage Sewer Revenue Refunding Other Primary of Personal Bonds Bonds Obligations Government Income 1,425, 000 1,200,000 975,000 750,000 625,000 500,000 375,000 250,000 125,000 2,275,000 1,840,000 1,440,000 1,040,000 585,000 145,000 $ 8,080,000 8,080,000 7,710,000 7,293,358 6,904,178 6,500,000 8,680,000 7,957,500 7,210,000 6,442, 500 153 $ 26,150, 000 23, 715, 000 26,435,000 23,803,358 21, 344,178 35,520,000 43,200,000 49,192, 500 46,665,000 44, 077, 500 3.87% N/A N/A N/A N/A N/A N/A N/A N/A N/A Per Capita 820 733 803 704 633 1,028 1,240 1,413 1,320 1,241 City of La Porte, Texas Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (unaudited) General Bonded Debt Outstanding General Certificates Fiscal Obligation of Year Bonds Obligation 2000 $ 14, 370, 000 $ - 2001 12, 595, 000 - 2002 16, 310, 000 - 2003 12,170,000 2,550,000 2004 10,830,000 2,400,000 2005 17,325,000 11, 050,000 2006 17, 740, 000 16, 405, 000 2007 16, 930, 000 24, 055, 000 2008 16, 065, 000 23, 265, 000 2009 15,190, 000 22, 445, 000 Less: Amounts Available in Debt Service Fund $ 1,263,483 1,303,068 1,589,610 1,797,213 1,584,497 1,704, 531 1,813,887 1,925,756 1,999,842 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Per Capita provided from the 2000 Census Percentage of Actual Taxable Value of Per Total Property Capita 2 $ 13,106, 517 0.92% 411 11,291,932 0.79% 349 14,720,390 0.98% 447 12,922,787 0.85% 382 11, 645, 503 0.75% 345 26,670,469 1.63% 772 32,331,113 1.91% 928 39,059,244 2.18% 1,105 37, 330,158 1.91 % 1,051 37,635,000 1.71% 1,023 1. See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data. 2. Population data can be found in the Schedule of Demographic and Economic Statistics. 154 City of La Porte, Texas Direct and Overlapping Governmental Activities Debt As of September 30, 2009 (unaudited) Governmental Unit Debt repaid with property taxes Harris County Harris County Department of Education Harris County Flood Control District Harris County Toll Road - Toll Road Bonds (a) La Porte ISD Port of Houston Authority San Jacinto Jr. College District Subtotal, overlapping debt City of La Porte direct debt Total direct and overlapping debt Estimated Estimated Share of Debt Percentage Overlapping Outstanding Applicable Debt $ 2,016,116,629 0.78% $ 15,725,710 8,320,000 0.78% 64,896 105,482,945 0.78% 822,767 - 0.78% - 209,095,000 30.02% 62,770,319 547,415,000 0.78% 4,269,837 281,785,000 5.90% 16,625,315 $ 3,168,214,574 $ 100,278,844 39,472,500 100% $ 39,472,500 $ 139,751,344 (a) Harris County Toll Road debt is considered self-supporting. Source: Texas Municipal Reports Percentages are based on total property values. 155 City of La Porte, Texas Legal Debt Margin Information Last Ten Fiscal Years (unaudited) Fiscal Year 2000 2001 2002 2003 2004 Debt limit $ 38,129,152 $ 35,568,480 $ 37,615,775 $ 37,816,613 $ 39,010,173 Total net debt applicable to limit 13,106,517 11,291,932 14,720,390 10,372,787 9,245,503 Legal debt margin $ 25,022,635 $ 24,276,548 $ 22,895,385 $ 27,443,826 $ 29,764,670 Total net debt applicable to the limit as a percentage of debt limit Note: The City has no general obligation legal debt limit other than a ceiling on the tax rate as specified by the State of Texas. The precribed maximum is $2.50 per $100 of the appraised value 156 Fiscal Year 2005 2006 2007 2008 2009 $ 40,872,224 $ 42,379,165 $ 44,805,817 $ 48,762,244 $ 55,123,002 15,620, 369 15, 926,113 18,855,756 18,064,842 15,190,000 $ 25,251,855 $ 26,453,052 $ 39,933,002 $ 30,697,402 $ 25,950,061 Legal Debt Margin Calculation for Fiscal Year 2009 Assessed value $ 2,204,920,061 Add back: exempt property $ 502,091,647 Total assessed value $ 2,707,011,708 Debt limit (2.5% of total assessed value) 55,123,002 Debt applicable to limit General obligation bonds $ 15,190,000 Less: Amount set aside for repayment of general obligation debt - Total net debt applicable to limit 15,190,000 Legal debt margin $ 39,933,002 157 City of La Porte, Texas Pledged -Revenue Coverage Last Ten Fiscal Years (unaudited) Water and Sewer System Revenue Bonds utility Less: Net Fiscal Service Operating Available Debt Service Times Year Charges Expenses 2 Revenue Principal Interest Coverage 2000 $ 6,844,236 $ 5,626,662 $ 1,217,574 $ 660,000 $ 170,483 1.47 2001 6,094,735 4,347,508 1,747,227 660,000 168,781 2.11 2002 5,988,595 4,814,158 1,174,437 625,000 132,418 1.55 2003 5,837,448 5,025,158 812,290 580,000 115,948 1.17 2004 5,836,221 5,125,635 710,586 580,000 71,293 1.09 2005 6,193,451 5,259,943 933,508 565,000 43,161 1.53 2006 7,438,016 5,389,783 2,048,233 270,000 111,712 5.37 2007 6,722,774 5,681,548 1,041,226 262,500 106,828 2.82 2008 8,916,777 5,653,497 3,263,280 387,500 91,605 6.81 2009 7,920,114 5,743,725 2,176,389 387,500 76,350 4.69 Note: 1. Includes interest income. 2. Excludes depreciation and loss on uncollectible accounts. 158 City of La Porte, Texas Demographic and Economic Statistics Last Ten Calendar Years (Unaudited) Personal Per Income Capita (thousands Personal Median School Unemployment Year Population of dollars) Income Age Enrollment Rate 2000 31,880 675,155 21,178 33 7,645 4.2% 2001 32,356 N/A N/A N/A 7,772 5.3% 2002 32,910 N/A N/A N/A 7,732 6.2% 2003 33,789 N/A N/A N/A 7,648 6.6% 2004 33,712 N/A N/A N/A 7,629 5.7% 2005 34,538 N/A N/A N/A 7,808 5.3% 2006 34,825 N/A N/A N/A 7,786 4.7% 2007 35,362 N/A N/A N/A 7,889 4.4% 2008 35,518 N/A N/A N/A 7,940 5.2% 2009 36,779 N/A N/A N/A 7,830 9.4% 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 from the Bureau of Labor Statistics. 159 City of La Porte, Texas Principal Employers Current Year and Eleven Years Ago (unaudited) 2009* Percentage of Total City Employer Employees Rank Employment La Porte ISD 1,230 1 4.47% Rockwood Service Corp. 700 2 2.55% Longview Inspection Corp. 664 3 2.41% Quest Tru TEC 636 4 2.31 % Oxy Vinyls, LP 530 5 1.93% City of La Porte 381 6 1.39% Ineos 350 7 127% Equistar Chemicals, LP 334 8 1.21% Sulzer Hickham 330 9 1.20% Air Liquide 170 10 0.62% Total 5,325 19.36% 1998 * * Employer Employees Rank Percentage of Total City Employment Solvay Polymer 1,100 1 NIA San Jacinto College 1,003 2 N/A La Porte ISD 987 3 N/A E.I. Dupont 870 4 N/A Millenium (formerly Quantum) 736 5 N/A Akzo Nobel 500 6 N/A Hickham Industries 270 7 N/A Dow Chemical 250 8 N/A Fina Oil & Chemical 225 9 N/A Geon Company 180 10 N/A 6,121 Source: * City Economic Development Office ** City of La Porte Official Statement, Series 1998 General Obligation Bonds Employment data for 1999 was not available, so the data from 1998 was used as a comparison. Total employment figures for 1998 were not available, so therefore the percentage of total city employment could not be calculated. 160 City of La Porte, Texas Full -Time Equivalent City Government Employees by Function/Program Last Five Fiscal Year (unaudited) Fiscal Year Function/Program 2005 2006 2007 2008 2009 General Government 76 76 80 79 78 Public Safety 135 138 147 142 143 Public Works 32 32 32 32 32 Health & Sanitation 22 21 21 22 22 Culture and Recreation 47 45 44 45 45 Water Services 26 27 25 25 25 Sewer Services 20 20 20 20 20 Golf Course 13 13 12 12 12 Sylvan Beach Convention Center 3 3 4 4 4 Source: City Budget Office Note: Data not available for fiscal years prior to 2005. 161 City of La Porte, Texas Operating Indicators by Function/Program Last Ten Fiscal Years (unaudited) Function/Program Police Physical arrests Tickets processed Fire Number of calls answered Inspections Highways and streets Street resurfacing (linear feet) Potholes repaired Sanitation Cu. Yds. Garbage collected Cu. Yds. Trash collected Culture and recreation Fitness center admissions Water Number of water meters Average daily water consumption (million gallons) Water mains breaks Wastewater Average daily sewer treatment (thousands of gallons) Golf Course Number of Paid Rounds Played Source: City Departments Notes: N/A - Data not available Fiscal Year 2000 2001 2002 2003 2004 1,541 2,114 2,193 2,271 2,000 6,657 9,489 9,298 9,605 6,593 582 584 610 976 1,343 N/A N/A N/A N/A 500 39,200 42,000 26,200 27,800 33,800 302 232 271 413 524 27,300 28,025 28,655 28,243 29,675 38,603 48,049 52,796 50,111 54,875 67,347 68,668 73,764 76,311 84,353 9,679 10,699 10,957 10,987 11,189 4.6 4.1 3.1 4.0 3.8 601 505 491 440 299 3.0 3.9 3.4 3.9 4.0 48,950 43,063 42,540 38,594 38,901 162 Fiscal Year 2005 2006 2007 2008 2009 2,330 2,465 2,489 2,642 2,737 6,877 8,212 9,652 15,352 16,098 1,747 2,028 1,603 1,799 1,409 500 N/A 600 320 600 22,975 27,835 22,100 19,887 23,559 531 321 1,260 996 1,012 30,022 30,795 29,279 29,282 29,894 49,140 49,140 52,250 48,136 78,900 81,868 70,558 62,828 62,245 53,401 11,391 11,592 11,743 11,913 11,968 4.1 3.9 3.8 4.0 4.0 437 483 467 455 498 3.5 2.8 3.9 3.2 2.8 34,961 32,731 32,433 35,839 36,009 163 City of La Porte, Texas Capital Asset Statistics by Function/Program Last Ten Fiscal Years (unaudited) Function/Program Public Safety Police Station Police Officers Reserve Officers Fire Stations Sanitation Collection trucks Highways and streets Streets (miles) Streetlights Traffic signals Culture and recreation Parks acreage Parks Swimming pools Recreation Centers Senior Center Water and Sewer Water Mains (miles) Fire Hydrants Sanitary Sewers (miles) Storm Sewers (miles) Source: City Departments Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1 1 1 1 1 1 1 1 1 1 56 71 71 72 72 72 73 74 74 74 9 3 5 5 5 5 5 6 2 1 4 4 4 4 4 4 4 4 4 4 13 13 13 14 14 14 14 14 14 14 160 160 164 164 164 211 217 211 295 126 1,823 2,072 2,109 1,533 1,665 2,192 1,803 1,804 2,400 1,807 3 3 3 3 3 3 3 3 3 7 145 462 463 463 463 337 339 347 347 356 17 18 18 19 19 21 21 22 22 21 6 6 6 6 6 6 6 6 6 6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 226 229 231 231 231 165 168 176 178 180 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,076 1,161 1,168 184 185 186 187 187 187 187 189 189 191 87 88 88 89 89 89 92 92 92 92 164 I I REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8, 2010 Requested By: Michael G. Dolby, Director of Finance Department: FINANCE Report: Resolution: XX Ordinance: Exhibits: Resolution Exhibits: Financing Schedule Exhibits: Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: Amount Requested: N/A Budgeted Item: SUMMARY & RECOMMENDATION At this time, we would like to issue Certificates of Obligation Bonds for the following projects: Drainage Improvements Maximum of $6,400,000 While preliminary work was begun on these projects some time ago, it was not desirable for us to issue debt until this time. City Council has previously approved resolutions that allow the City to reimburse itself from these bond proceeds for expenditures that were made prior to the issuance of the debt. This is a position that we have taken on several other projects in the past as recommended by bond counsel and required by federal law. In order to issue bonds, a city is required to publish a Notice of Intent (NOI) to Sale. We would like to publish the initial Notice of Intent for Certificates of Obligation up to a maximum of $6,400,000 on Wednesday March 10, 2010 and the second notice on Wednesday, March 17, 2010. The City is also anticipating refunding $4,375, 000 million in callable debt at the same time we issue the new debt. RBC Dain Rauscher, the City's Financial Advisors, is preparing and will make available to us a Preliminary Official Statement which will be reviewed and updated by staff that must also be approved by Council. ction R uired bv Council: Authorize the future sale of a maximum$6.4 million in Certificates of Obligation; along with/the future refunding of $4.375MM, approve and authorize the first and second publication of Notice of Intent to lisue Certificates of Obligation. A ro r C ouncil Agenda Ron Bottoms, City Manager Da e RESOLUTION NO. 2010- 03 RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION FOR THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS; AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES; AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO STATE OF TEXAS § COUNTY OF HARRIS § CITY OF LA PORTE § WHEREAS, the City Council (the `City Council) of the City of La Porte, Texas (the `City), is authorized to issue certificates of obligation to pay contractual obligations to be incurred for the construction of public works, for the purchase of materials, supplies, equipment, machinery, buildings, land and rights -of -way for authorized needs and purposes, and for the payment of contractual obligations for professional services pursuant to Subchapter C of Chapter 271, Texas Local Government Code, as amended; WHEREAS, the City Council has determined that it is in the best interests of the City and otherwise desirable to issue certificates of obligation in a principal amount not to exceed $6.4 million styled "City of LaPorte, Texas, Certificates of Obligation, Series 2010' (the "Certificates) for the design, engineering, acquisition and construction of certain public works and the purchase of certain equipment for authorized needs and purposes and for the payment of contractual obligations for professional services; WHEREAS, in connection with the Certificates, the City Council intends to publish notice of its intent to issue the Certificates (the `Notice in a newspaper of general circulation in the City; WHEREAS, for purposes of providing for the sale of the Certificates, the City Council intends to authorize the preparation of a Preliminary Official Statement (the` Preliminary Official Statement) to be used in the public offering of the Certificates; and WHEREAS, the City Council has been presented with and has examined the proposed form of Notice and finds that the form and substance thereof are satisfactory. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1. Preamble. The facts and recitations contained in the preamble of this Resolution are hereby found and declared to be true and correct. HOU:2987731.1 Section 2. Authorization of Notice. The City Secretary is hereby authorized and directed to deliver the Notice, in the form set forth in Exhibit A hereto, and to publish such Notice on behalf of the City once a week for two (2) consecutive weeks in a newspaper which is of general circulation in the City, the date of the first publication to be at least thirty-one (31) days before the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the Certificates. Notwithstanding any other provision of this Resolution, the Mayor and City Manager are each hereby authorized to make or approve such revisions, additions, deletions, and variations to the Notice as, in the judgment of the Mayor and/or City Manager and in the opinion of Bond Counsel to the City, may be necessary or convenient to carry out or assist in carrying out the purposes of this Resolution, or as may be required for approval of the Certificates by the Attorney General of Texas; provided, however, that any change to the Notice resulting in material substantive amendments shall be subject to the prior approval of City Council. Section 3. Authorization of a Preliminary Official Statement. This City Council hereby approves the preparation and distribution by the Citys financial advisor to prospective purchasers of the Certificates of the Preliminary Official Statement, as the same may be completed, modified, or supplemented with the approval of the Mayor or other authorized officers and agents of the City. Section 4. Authorization of Other Matters Relating Thereto. The Mayor, City Secretary and other officers and agents of the City are hereby authorized and directed to do any and all things necessary or desirable to carry out the provisions of this Resolution. Section 5. Effective Date. This Resolution shall take effect immediately upon its passage. Section 6. Public Meeting. It is officially found, determined and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place and subject matter of the public business to be considered at such meeting, including this Resolution, was given all as required by the Texas Government Code, Chapter 551, as amended. 2 HOU:2987731.1 CITY OF LA PORTE, TEXAS ATTEST City ecretary (SEAL) S-1 HOU:2987731.1 EXHIBIT A NOTICE OF INTENTION TO ISSUE CERTIFICATES NOTICE IS HEREBY GIVEN that the City Council of the City of La Porte, Texas (the `City) will meet at its regular meeting place at City Council Chambers, City Hall, 604 West Fairmont Parkway, La Porte, Texas at 6:00 p.m. on April 12, 2010, which is the time and place tentatively set for the passage of an ordinance and such other action as may be deemed necessary to authorize the issuance of the Citys certificates of obligation, payable from ad valorem taxation and a limited (in an amount not to exceed $1,000) subordinate pledge of certain revenues of the water and sewer system of the City, in the maximum aggregate principal amount of $6.4 million, bearing interest at any rate or rates, not to exceed the maximum interest rate now or hereafter authorized by law, as shall be determined within the discretion of the City Council at the time of issuance and maturing over a period of years not to exceed forty (40) years from the date thereof, for the purpose of evidencing the indebtedness of the City to pay all or any part of the contractual obligations to be incurred for the construction of public works, the purchase of materials, supplies, equipment, machinery, buildings, land and rights -of -way for authorized needs and purposes, to wit: street improvements, drainage improvements and parks improvements throughout the City and professional services rendered in connection with the above listed projects. S-1 HOU:2987731.1 CERTIFICATE FOR RESOLUTION THE STATE OF TEXAS § COUNTY OF HARRIS § CITY OF LA PORTE § We, the undersigned officers of the City of La Porte, Texas (the "City"), hereby certify as follows: 1. The City Council of the City convened in a regular meeting on March 8, 2010, at the regular meeting place thereof, within the City, and the roll was called of the duly constituted officers and members of the City Council, to wit: Mayor Mayor Pro Tern Council Member Council Member Council Member Council Member Council Member Council Member Council Member and all of such persons were present except thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION FOR THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS; AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES; AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO (the "Resolution") was duly introduced for the consideration of the City Council. It was then duly moved and seconded that the Resolution be adopted on first reading pursuant to Section 3.09 of the City Charter; and, after due discussion, such motion, carrying with it the adoption of the Resolution, prevailed and carried by the following vote: AYES: � NAYS: ABSTENTIONS: 2. That a true, full and correct copy of the Resolution adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that the Resolution has been duly recorded in the City Council's minutes of such meeting; that the above and foregoing paragraph is a true, full and correct excerpt from the City Council's minutes of HOU:2999397.1 such meeting pertaining to the adoption of the Resolution; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of the City Council as indicated therein; that each of the officers and members of the City Council was duly and sufficiently notified officially and personally, in advance, of the date, hour, place and subject of the aforesaid meeting, and that the Resolution would be introduced and considered for adoption at such meeting, and each of such officers and members consented, in advance, to the holding of such meeting for such purpose; that such meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of such meeting was given as required by the Open Meetings Law, Chapter 551, Texas Government Code. SIGNED AND SEALED this 1- , 2010. City Secretary City of LaPorte, Texas (SF,AL) S-1 HOU:2999397.1 AFFIDAVIT OF NEWSPAPER PUBLISHES, THE STATE OF 'TEXAS COUNTY OF HARRIS Before me, the undersigned authority, on this day personally appeared Adam Yanelli , who being by me duly sworn, deposes and says that he/she is the Editor/Publisher of The Bayshore Sun and that said newspaper (i) devotes not less than 25% of its total column lineage to general interest items, (ii) is published at least once each week, (iii) is entered as a second-class postal matter in the county in which it is published and is generally circulated within the territory of the City of La Porte, Texas (the "City"), and (iv) was published regularly and continuously for at least 12 months before March 10, 2010, the first date on whnich the City published the attached notice in said newspaper. Publisher SUBSCRIBED AND SWORN TO before me this the 12 ttd.ay of March, 2010. U111111III IIIli iIIIII liiillllliilllliliiIfIII IIli IIof DEBORAH SUE STOUT c 'U NOTARY PUBLIC STATE OF TEXAS f�'rE of+E+" Comm. Exp. 03-13-2012 iitunnuinliiilil111111111111111 nnuf fin IPOU 30A20 7. Deborah Sue Stout My commission expires: 0 3/ 1 3/ 2 01 2 City of La Porte, Texas Overview of: $6,105,000 * Certificates of Obligation, Series 2010 $4,375,000 * General Obligation Refunding Bonds, Series 2010 March 8, 2010 R13CCapitat Markets® Preliminary, subject to chance. City of LaPorte, Texas Current Market Conditions $uyer Index of 20 Municipal Bonds and 25 Municipal Bonds January 1990 to Present , 8.50 8.00 7.50 5.00 Fxed Rates of Interest — Bond Buyer Index of 20 Muni. General Obligation Bonds High 7.56% / Low 3.94% / Average 5.40% Bond Buyer Index of 25 Muni. Revenue Bonds High 7.83% / Low 4.38% / Ave rage 5.74% n But 1 Debt BBI 25 ReNenue Debt maw 3.50 �T- T- �. I RBCCapital Markets' City of La Porte, Texas Current Market Conditions �c iuyer Index of 20 Municipal Bonds and 25 Municipal Bonds January 3, 2008 to Present RBCCapital Markets' 2 City of La Porte, Texas Estimated Debt Service Requirements - $6,105,000* Certificates of Obligation, Series 2010 Less: Fiscal Self- Plus: Series 2010 Year Current Total Supporting Certificates of Obligation Total Debt 9( /30) Debt Service Debt (a) Principal * Interest (b) Total Service 2010 $3,657,710 $1,534,015 $2,123,695 2011 3,642,879 1,525,418 $326,760 $326,760 2,444,221 2012 3,624,641 1,529,723 $315,000 233,400 548,400 2,643,318 2013 3,657,576 1,571,723 325,000 223,800 548,800 2,634,653 2014 3,640,318 1,578,970 335,000 213,900 548,900 2,610,248 2015 3,613,542 1,571,098 345,000 203,700 548,700 2,591,144 2016 3,573,804 1,558,516 355,000 193,200 548,200 2,563,488 2017 3,278,281 1,284,459 365,000 181,488 546,488 2,540,310 2018 3,251,394 1,284,590 380,000 168,450 548,450 2,515,254 2019 3,225,585 1,286,262 395,000 153,900 548,900 2,488,223 2020 3,072,866 1,280,477 410,000 137,800 547,800 2,340,189 2021 2,738,210 1,135,599 430,000 119,925 549,925 2,152,536 2022 2,739,096 1,143,657 445,000 100,238 545,238 2,140,677 2023 2,725,178 1,147,237 470,000 79,650 549,650 2,127,591 2024 2,716,271 1,150,776 490,000 58,050 548,050 2,113,545 2025 2,702,514 1,155,433 510,000 35,550 545,550 2,092,631 2026 596,392 462,545 535,000 12,038 547,038 680,884 2027 599,430 465,621 133,809 2028 596,330 477,064 119,266 2029 597,285 477,828 119,457 Totals $54,249,301 $23,621,011 $6,105,000 $2,441,848 $8,546,848 $39,175,138 • Preliminary, subject to change. RBC Capital Markets` (a) Includes debt services which is paid from other revenue sources than ad valorem taxes. (b) Interest estimated a current market conditions for illustration purposes only. " City of La Porte, Texas Refunding Optimization Refunded Series General Obligaton Bonds, Series 1998 General Obligation Bonds, Series 2000 Certificates of Obligation, Series 2000 Refunded 03/15/2011 03/15/2012 03/15/2013 03/15/2014 03/16/2014 03/17/2014 03/18/2014 03/19/2014 03/20/2014 03/15/2011 03/15/2013 03/15/2013 03/15/2014 03/15/2015 03/15/2016 03/15/2017 03/15/2018 03/15/2019 03/15/2020 03/15/2011 03/15/2013 03/15/2013 03/15/2014 03/15/2015 03/15/2016 03/15/2017 03/15/2018 03/15/2019 03/15/2020 Grand Total (a) Market Rates as of 3/l/2010. (b) Savings are inclusive of estimated transaction expenses. ('oumn Refunded 4.250% Par 125,000 4.2500/ 125,000 4.2500/ 125,000 4.2500/ 125,000 4.2500/ 125,000 4.2500/ 125,000 4.250% 125,000 4.2500/ 125,000 4.2500/ 125,000 1,125,000 5.2000/ 175,000 5.3000/ 175,000 5.400% 175,000 5.125% 175,000 5.000% 175,000 5.0009/6 175,000 S.00Oo/ 175,000 5.0009/6 175,000 S.00Oo/ 175,000 S.00Oo/ 175,000 1,750,000 S.00Oo/ 150,000 S.00Oo/ 150,000 S.00Oo/ 150,000 S.00Oo/ 150,000 S.00Oo/ 150,000 5.000% 150,000 S.00Oo/ 150,000 5.000% 150,000 5.000% 150,000 S.00Oo/ 150,000 1 500,000 4,375,000 Call pate Call 05/01/2010 Price 100.00 New Yield la1 1.3500/ 05/01/2010 100.00 1.690% 05/01/2010 100.00 1.930% 05/01/2010 100.00 2.2200/ 05/O1/2010 100.00 2.600% 05/O1/2010 100.00 3.040% 05/01/2010 100.00 3.360% 05/01/2010 100.00 3.6200/ 05/01/2010 100.00 3.8100/ 05/01/2010 100.00 1.3500/ 05/O1/2010 100.00 1.690% 05/01/2010 100.00 1.9300/ 05/01/2010 100.00 2.2200/ 05/01/2010 100.00 2.600% 05/01/2010 100.00 3.0400/ 05/01/2010 100.00 3.360% 05/O1/2010 100.00 3.6200/ 05/01/2010 100.00 3.810% 05/01/2010 100.00 3.9700/ 05/01/2010 100.00 1.3500/ 05/01/2010 100.00 1.6900/ 05/01/2010 100.00 1.930% 05/O1/2010 100.00 2.2200/ 05/01/2010 100.00 2.600% 05/01/2010 100.00 3.0400/ 05/01/2010 100.00 3.3600/ 05/01/2010 100.00 3.6200/ 05/01/2010 100.00 3.8100/ 05/01/2010 100.00 3.9700/ Savings fbl 677 3,185 5,391 6,712 6,763 5,014 3,687 2,776 1,910 36,113 2,387 7,183 11,501 12,946 13,384 12,757 11,958 10,985 10,015 9,594 102,710 1,650 6,053 9,773 9,403 10,468 9,928 9,244 8,410 7,578 6,791 79,299 218,1229 RBC Capital Markets` 4 City of La Porte, Texas Schedule of Events $6,105,000* $4,375,000* S M T w T F S Certificates of Obligation, General Obligation Refunding Bonds, 1. 2 3 4 5 6 Series 2010 Series 2010 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Day/Date Action Participants 28 Friday, February 26 First Draft of Preliminary Official Statement (P.O.S.) and RBC Notice of Sale (N.O.S.) S M T W T F S Friday, March 5 Second Draft of P.O.S. and N.O.S. (Forward to all Participants) RBC, City, AK 1 2 3 4 5 6 Monday, March 8 City Council Reviews Schedule of Events, Plan of Finance, RBC, City, AK 7 8 9 10 11 12 13 and Authorizes Publication of Notice of Intention to Issue 14 15 16 17 18 19 20 Certificates of Obligation (Regular Council Meeting) 21 22 23 24 25 26 27 28 29 30 31 Wednesday, March 10 Publish V Notice of Intention to Issue C.O.'s City, AK Friday, March 12 Third Draft of P.O.S. (Forward to Rating Agency and Bond Insurers) RBC, City, AK S M T W T F S Tuesday, March 16 Final Comments Due on P.O.S. RBC, City, AK 1 2 3 4 5 6 7 8 9 10 Wednesday, March 17 Print and Distribute P.O.S. RBC 11 12 13 14 15 16 17 Wednesday, March 17 Publish 2nd Notice of Intention to Issue C.O.'s City, AK 18 19 20 21 22 23 24 25 26 27 28 29 30 Monday, April 12 Bond and C.O. Sale City Council Adopts Order Authorizing RBC, City, AK the Issuances S M T W T F S Tuesday, April 13 Review Final Official Statement RBC, City, AK 1 Monday, April 19 Print Final Official Statement RBC 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Tuesday, May 11 Delivery of Bonds RBC, City, AK 16 17 18 19 20 21 22 23 24 25 26 27 28 29 PARTICIPANTS 30 31 City - City of LaPorte, Texas RBC — RBC Capital Markets Corporation * Preliminary, subject to change. ( RBC Capital Markets` 13 REQUEST FOR CITY Agenda Date Requested: March 08, 2010 Requested By: D. Wilmore Department: Planning Report: X Resolution: Ordinance: X Exhibits: Inspection Report Exhibits: Condemnation Ordinance �. bI ►c h ���^�'� /)o �� a COUNCIL AGENDA ITEM Budget Source of Funds: General Funds Account Number: #001-9092-524-6021 Amount Budgeted: %4.5,6 8.00 Amount Requested: Budgeted Item: YES NO Exhibits Photo Presentation SUMMARY & RECOMMENDATION The August 10, 2009, October 12, 2009, December 14, 2009 and January 25, 2010 public hearing for 401 N. 61' Street was continued until March 08, 2010. Subsequent to the first public hearing meeting, legal notices, in accordance with Article VIII; Section 82-475 of the Code of Ordinances, were provided to the structure owner. The individual attended each public hearing and was aware of the continuances granted by Council. Staff also sent meeting reminder letters. A February 23, 2010 site visit to 401 N. 6`' Street showed no change. Also, on the same date, we spoke with the owner (Mary Riley) by phone and she informed staff that a representative from the Harris County Home Repair Program advised her that they are unable to assist her in the repair of the home. The purpose of this public hearing is to receive property owner, citizen and staff comments as to why the structure should or should not be condemned and demolished. Following the close of the hearing, Council will be asked to consider condemnation of the structure. The structure was damaged by a fire in October 2005 and while the Dangerous Building Inspections Board is aware of Ms. Riley's recent efforts, the County's decision not to assist with repairs is significant. Since funding has not been secured and the structure remains a public nuisance, staff recommends condemnation of the structure at 401 N. 6t6 Street. of ordinance or other action regarding condemnation of the structure at 401 N. 6ffi Street rm ouncil A enda �Vlo on Bottoms, City Manager Date City of La Porte DANGEROUS BUILDING INSPECTION FORM DATE: June 26 2009 STREET ADDRESS: 401 N 6'n ST HCAD OWNER: GEORGE EUGENE RILEY.• 904 S KANSAS ST, LA PORTE, TX 77571-5808 DEED OWNER: EUGENIA MAE RILEY C/O GEORGE EUGENE RILEY; 904 S KANSAS ST LA PORTS TX 77571-5808 LEGAL: LOTS 17 18 BLK 91 • LA PORTE OCCUPANCY TYPE: RESIDENTAL ZONING: R-1 NON -CONFORMING ISSUES: N/A FACILITIES AVAILABLE: WATER: SEWER: ELECTRICAL: 0 GAS: NO.OF DWELLING UNITS: VACANT: OCCUPIED: AS REQUIRED IN THE CITY'S CODE OF ORDINANCE, CHAPTER 82; ARTICLE VIII, THE BOARD OF INSPECTION MADE AN INSPECTION OF THE AFOREMENTIONED PROPERTY, AND DETERMINED THE BUILDING LOCATED THEREON, IN THEIR OPINION, IS IN FACT A DANGEROUS BUILDING, FOR THE FOLLOWING REASONS: Sec. 82-473. Declaration of Public Nuisance and Hazard. A. Dangerous or Substandard Buildings or Structures. A building or structure shall be considered dangerous or substandard whenever it is determined by the Board, that any or all of the following is applicable: 1. A building that is vacant, and is not up to current building code standards. These vacant buildings can be either open to trespass or boarded up; ® 2. Whenever any portion thereof has been damaged by fire, earthquake, wind, flood, or by any other cause to such an extent that the structural strength or stability thereof is materially less than it was before such catastrophe and is less than the minimum requirements of the building code for new buildings of similar structure, purpose or location; 3. Whenever any portion or member or appurtenance thereof is likely to fail, or to become detached or dislodged, or to collapse and thereby injure persons or damage property, 4. Whenever the building or structure, or any portion thereof, because of (a) dilapidation, deterioration, or decay; (b) faulty construction; (c) the removal, movement or instability of any portion of the ground necessary for the purpose of supporting the building; (d) the deterioration, decay, or inadequacy of its foundation, or (e) any other cause, is likely to partially or completely collapse; 5. Whenever, for any reason, the building or structure, or any portion thereof, is manifestly unsafe for the purpose of which it is being used; DANGEROUS BUILDINGS INSPWnONS FORM PAGE 2 0 6. Whenever the building or structure has been so damaged by fire, wind, earthquake, or flood, or has become so dilapidated or deteriorated as to become (a) a public nuisance, (b) a harbor for vagrants, or as to (c) enable persons to resort thereto for the purpose of committing unlawful acts; ® 7. Whenever a building or structure, used or intended to be used for dwelling purposes, because of inadequate maintenance, dilapidation, decay, damage, faulty construction or arrangement, inadequate light, air, or sanitation facilities, or otherwise, is determined by the Board to be unsanitary, unfit for human habitation or in such a condition that is likely to cause sickness or disease; 0 8. Whenever any building or structure, because of obsolescence, dilapidated condition, deterioration, damage, inadequate exits, lack of sufficient fire -resistive construction, faulty electric wiring, gas connections, or heating apparatus or other cause, is determined by the Board to be a fire hazard; B. Dangerous or substandard electrical, plumbing, or mechanical installations. A building or structure shall be considered dangerous or substandard whenever it is determined by the Board, that any or all of the following is applicable: 1. Whenever any protective or safety device specified in The Electrical Code and of this title is not provided or is inoperative, defective, dilapidated, or deteriorated so as to threaten to fail or function as originally intended; 2. Whenever any installation or any portion thereof because of (a) dilapidation, deterioration, or decay; (b) faulty construction; (c) obsolescence; (d) inadequate maintenance, which in relation to existing use constitutes a hazard to life, health, property or safety; 3. Whenever any installation or any portion thereof which is damaged by fire, wind, earthquake, flood or any other cause so as to constitute a potential hazard to life, health, property or safety; ® 4. Whenever any installation or any portion thereof was constructed, installed, altered or maintained in violation of the building code and/or fire code so as to constitute a potential hazard to life, health, property or safety. FINDINGS AND CONCLUSIONS OF THE BOARD OF INSPECTION: SELECT OPTION M 1. (REPAIRABLE — RESIDENTIAL) IN ACCORDANCE WITH THE CITY'S DANGEROUS BUILDING REGULATIONS, THE 2006 INTERNATIONAL RESIDENTIAL CODE AND THE 2008 NATIONAL ELECTRICAL CODE, AS ADOPTED, AMENDED AND ENACTED BY CTrY ORDINANCES #04-2700 #96-2700-K AND #96-2079-L. USING THE REGULATIONS AND CODE AS US GUIDE rr IS THE OPINION OF THE DANGEROUS BUILDING INSPECTION BOARD THAT THIS BUILDING IS IN FACT DANGEROUS BUT STILL REPAIRABLE. AL REQUIRED REPAIRS OR ALTERATIONS SHALL BE DONE IN ACCORDANCE WITH ALL APPLICABLE CITY OF LA PORTE CODES AND ORDINANCES. IF THE REPAIR OR ALTERATION ORDER IS NOT COMPLIED WTTH WITHIN THE TIMETABLE SET OUT IN ARTICLE VIII, SECTION 82-478 rr IS THEN THE OPINION OF THE BOARD THAT THIS BUILDING BE DEMOLISHED. X BUILDING OFFICIAL'S OFFICE DATE FIRE MARSHAL'S OFFICE DATE FIRE CHIEF'S OFFICE DATE DANGEROUS BUILDINGS INSPECTIONS FORM BUILDING EVALUATION CHECKLIST A = Adequate D = Deficient N/A = Not Applicable I. STRUCTURAL COMMENT / EXPLANATION A. Foundation 1. Slab UNK UNABLE TO INSPECT 2. Pier & Beam a. Footings N/A N/A b. Sills N/A N/A c. Joists N/A N/A B. Walls 1. Exterior UNK UNABLE TO INSPECT 2. Interior UNK UNABLE TO INSPECT Means of Egress 1. Doors a. Interior UNK UNABLE TO INSPECT b. Exterior UNK UNABLE TO INSPECT 2. Porches, Steps, Stairs A 3. Windows A D. Roof 1. Rafters D FIRE DAMAGE 2. Deck, Shingles D POOR CONDITION E. Ceilings 1. Joists UNK UNABLE TO INSPECT 2. Ceiling D HOLES VISIBLE THRU 1 WINDOW /DOOR F. Floors A G. Other N/A N/A II. MEHCANICAL SYSTEMS A. Electrical 1. Service Entrance & Panel D NO DEADFRONT; BROKEN CONDUIT 2. Wiring UNK UNABLE TO INSPECT 3. Lights, Switches UNK UNABLE TO INSPECT 4. Outlets UNK UNABLE TO INSPECT 5. Other N/A N/A B. Plumbing 1. Fixtures a. Sink UNK UNABLE TO INSPECT b. Lavatories UNK UNABLE TO INSPECT c. Water/Closets UNK UNABLE TO INSPECT d. Tub/Shower UNK UNABLE TO INSPECT PAGE e. Water Heater UNK UNABLE TO INSPECT 2, Water Piping UNK UNABLE TO INSPECT 3. Drain, Waste & Vent UNK UNABLE TO INSPECT 4. Sewer/Septic tank UNK UNABLE TO INSPECT 5. Gas System UNK UNABLE TO INSPECT C. Heating & A/C 1. Heating UNK UNABLE TO INSPECT 2. Air Conditioning UNK UNABLE TO INSPECT III. PROPERTY CONDITIONS 1. Accessory Structures N/A N/A 2. Condition of Grounds D WEEDS, DEBRIS & DOWNED TREE 3. Other Comments: Date of Fire October 12, 2005 Sr\CPShareUNSPECTION DMSION\ALL OTHER STUFF\Code Fnforc=mt\D-g Buildinp\DANG BLDG INSP FORM2.doc 02-2004 Rev. pjbj,'c Pear, ORDINANCE NO. 2009-3 t t AN ORDINANCE DECLARING THE BUILDING(S) LOCATED ON Blk 91 • Lots 17, 18, La Porte, HARRIS COUNTY, TEXAS, TO BE IN FACT A NUISANCE; ORDERING SUCH BUILDING(S) CONDEMNED; FINDING THAT George Eugene Riley and Eugenia Mae Riley c/o George Eugene Riley, ARE THE RECORD OWNER(S) OF SAID PROPERTY; ORDERING THE SAID OWNER(S) TO ENTIRELY REMOVE OR TEAR DOWN SUCH BUILDING(S); ORDERING THE SAID OWNER(S) TO COMMENCE SAID REMOVAL OR DEMOLITION WITHIN TEN (10) DAYS FROM THE EFFECTIVE DATE OF THIS ORDINANCE; AND TO COMPLETE SAID REMOVAL OR DEMOLITION WITHIN THIRTY (30) DAYS FROM THE EFFECTIVE DATE OF THIS ORDINANCE; ORDERING THE DANGEROUS BUILDING INSPECTION BOARD TO PLACE A NOTICE ON SAID BUILDING(S); ORDERING THE CITY SECRETARY TO FORWARD A COPY OF THIS ORDINANCE TO SAID OWNER(S); PROVIDING FOR THE REMOVAL OF SAID BUILDING(S) BY THE CITY OF LA PORTE IF NOT REMOVED BY SAID OWNER(S) IN THE MANNER PROVIDED HEREIN; PROVIDING AN EFFECTIVE DATE HEREOF; AND FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW. WHEREAS, the City Council of the City of La Porte, passed and approved Section 82- 472 of the Code of Ordinances, creating a Dangerous Building Inspection Board (the Board to be composed of the Building Official or his duly authorized representative, the Fire Chief or his duly authorized representative, the Fire Marshal or his duly authorized representative; and WHEREAS, Section 82-474 (a) provides that: Whenever it shall come to the attention of the Board or any member thereof, by reason of the carrying out of the necessary duties of such member, or by reason of a complaint of any citizen of the City or of the City Council, that a dangerous building exists, the Board shall make a thorough inspection of such building(s); and WHEREAS, Section 82-474 (e) provides that: After the inspection provided for in this Section has been made, with or without the aid of experts, the Board shall report its conclusion in writing to each of the members of the City Council and to the City Attorney. Such report shall state the circumstances and the condition of the building(s) upon which such conclusion was based. The report shall be filed in all cases no matter what conclusion is stated by the Board; and WHEREAS, it has heretofore come to the attention of the Board that the building(s) located on Blk 91, Lots 17, 18, La Porte, which is further described as 401 N 6th Street, Harris County, Texas, has, for the reason of neglect or misuse, been allowed to deteriorate into a condition of decay or partial ruin or has become a public nuisance or hazard, as defined in Section 82-473 of the Code of Ordinances of the City of LaPorte; and Ordinance No. 2009- , Page 2 WHEREAS, said Board has heretofore made and filed its written report, June 26, 2009 finding said building to be in fact a dangerous building; WHEREAS, City Council received such report, and ordered notice to the record owner(s) of said property, George Eugene Riley, whose address is 904 S Kansas St.; La Porte, TX 77571- 5808 and Eugenia Mae Riley c/o George Eugene Riley, whose address is 904 S Kansas St.; La Porte, TX 77571-5808, that a hearing as provided in Section 82-477 of said Ordinance would be held at 6:00 PM on August 10, 2009 at 604 W. Fairmont Parkway, at the Council Chambers, City Hall, City of La Porte, Texas, at which time the Council would hear evidence for and against the conclusions of the Board; WHEREAS, the City Secretary has heretofore served notice of said hearing upon said owner(s), by registered mail, return receipt requested, which notices were "undelivered", Post Office attempted (2) deliveries by 7-22-09 (George E. Riley) & Post Office attempted (2) deliveries by 7-23-09 (Eugenina M. Riley % George E. Riley) a date more than ten (10) days before the date set for said hearing; WHEREAS, at said date, time, and place, City Council met in regular session to conduct such public hearing, at which time evidence was presented both for and against the conclusions of the Board; that such hearing was continued for 60 days, to October 12, 2009, and on that date the hearing was continued for another 60 days, to December 14, 2009; and on that date the hearing was continued for another 30 days, to January 25, 2010; and on that date the hearing was continued for another 30 days, to March 08, 2010; WHEREAS, City Council, after due deliberation, and within fifteen (15) days after the termination of the hearing, is required to make its decision in writing and enter its order; and WHEREAS, City Council entered its order on March 08, 2010 a day which is within fifteen (15) days after the termination of the hearing; NOW THEREFORE: Ordinance No. 2009- Page 3 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. This Ordinance contains the Findings of Fact, Conclusions of Law, and orders of the City Council of the City of LaPorte, based upon the evidence presented at said hearing. Section 2. Based on the evidence presented at said hearing, the City Council hereby adopts the attached report of the Board, in full, and incorporates such by reference herein as fully as though set out herein. Section 3. The City Council hereby finds, determines and declares such building(s) to be a nuisance, and orders such building(s) condemned. Section 4. The City Council hereby finds, determines and declares that George Eugene Riley, who resides at 904 S Kansas St.; LaPorte, TX 77571-5808 and Eugenia Mae Riley c/o George Eugene Riley, who resides at 904 S Kansas St., LaPorte, TX 77571-5808 and are the record owner(s) of the property on which this building is situated, and that as such record owner(s), the said George Eugene Riley and Eugenia Mae Riley c/o George Eugene Riley have been duly and legally notified of those proceedings. Section 5. The City Council hereby orders the said George Eugene Riley and Eugenia Mae Riley c/o George Eugene Riley to entirely remove or tear down such building(s), and further orders the said George Eugene Riley and Eugenia Mae Riley c/o George Eugene Riley to commence such removal within ten (10) days from the effective date of this Ordinance, and to complete said removal or demolition within thirty (30) days from the effective date of this ordinance. Section 6. The City Council hereby orders the Board of the City of La Porte to cause a notice of the dangerous, unsanitary condition of the building(s) to be affixed in one or more conspicuous places on the exterior of the building(s), which notice or notices shall not be removed or defaced by any person, under penalty of law. Section 7. The City Council hereby orders the City Secretary to forward a certified copy of this Ordinance, to the record owner(s) of said property, the said George Eugene Rilev and Eugenia Mae Riley c/o George Eugene Riley, by registered mail, return receipt requested. Ordinance No. 2009- _, Page 4 Section 8. Should the said George Eugene Riley and Eugenia Mae Riley c/o George Eugene Riley not comply with the orders contained in this Ordinance relating to the removal or demolition of such building(s) within thirty (30) days after hereof, then the Board of the City of La Porte shall enter upon the said premises with such assistance as it may deem necessary, and cause the said building(s) to be removed or demolished without delay, and the expenses of such procedure shall be charged against the said George Eugene Riley and Eugenia Mae Riley c/o George Eugene Riley, record owner(s) of said property, and shall thereupon become a valid and enforceable personal obligation of said owner of such premises, and the said Board shall carefully compute the cost of such removal or demolition, which cost shall be hereafter assessed against the land occupied by such building(s), and made lien thereon. Section 9. The City Council officially finds, determines, and 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 10. This Ordinance shall take effect and be in force from and after its passage and approval. PASSED AND APPROVED this the day of , 2010. CITY OF LA PORTE Mayor ATTEST: City Secretary APPROVE City Attorney ACTION OF CITY COUNCIL On this, the day of , the City Secretary of the City of La Porte, having received the above and foregoing report from the Dangerous Building Inspection Board of the City of La Porte, the City Secretary of the City of La Porte is hereby ordered to notify the owner in writing in accordance with the provisions of the City's Code of Ordinances Article VIII, Section 82-478. CITY OF LA PORTE Mayor ATTEST: City Secretary CITY SECRETARY'S CERTIFICATE I hereby certify that on the day of , I mailed a notice to the above named owner, in connection with the above referenced property, said notice being in accordance with City's Code of Ordinances Article VIII, Section 82-478. A copy of said notice is attached hereto. Said notice included a copy of the Dangerous Building Inspection Form attached hereto. Martha Gillett, TRMC, CMC City Secretary SACity Planning Share\04-INSPECTIONS DIVISION\ALL OTHER STUFF\Code Enforcement\Dang Buildings\Action by City Council Form.doc 401 NORTH 6T" BEFORE ORIGINAL 8-10-2009 PUBLIC HEARING t : fw � 6 y ; C cm � xa f 3zs � E t �a T 3 e t' �', i � � f��ir ���. � .,�^iF�+�.:.�'GE.��� �iz�.,icr �.�1. Ir Ao r �,'��'�'KeO§j; .1 � .{+3� •. �v {} � ^p f y « ap y r R � 4�', f i , t 401 NORTH 6r" CURRENT STATUS 3-3-2010 .: . � ®�' � �� ��:• /:� \ ». � «:� / <�d «°» ,. .. .az+« .. 0 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Request: March8,2010 Requested By: Melisa Lanclos A - Department: City Manager Report: Resolution: Ordinance: Exhibits: Implementation Process Exhibits: Frequently Asked Questions Exhibits: Participating Pharmacies in La Porte Area Exhibits: Participating Cities Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: SUMMARY & RECOMMENDATION In a previous City Council Meeting, a citizen inquired about the City participating in a Prescription Discount Card Program, one like our neighboring city, and provided a flyer with information. Staff looked into the program and learned that there are 14 other cities in Texas participating. The NLC Prescription Discount Card program is a member service of the National League of Cities. Cities must be a member of NLC in order to sponsor the program and offer the discount card to residents at no cost to them or the City. This program for NLC member cities is to help residents cope with the high cost of prescription drugs. The NLC Prescription Discount Card program, in collaboration with CVS Caremark, can save an average of 20% off the full retail cost of prescription medication. Again, there is no cost for member cities to participate in the program, but interested cities must: • Promote the program to the local media with mutually approved communications: Pre launch press release, launch press release and PSAs. (Bayshore Sun, Houston Chronicle) • Promote the program through various city venues or communications to the residents using the standard communication vehicles the city currently uses. All communications must be reviewed and approved by NLC and CVS Caremark unless the city is using supplied communications. (City Website, ConnectCTY, Utility Bills, Marquee, etc.) • Provide city wide ID card distribution points to distribute the template ID card that will be printed with the relevant city's seal. Stands will be provided to display the cards. (City facilities, Library, Neighborhood Center, Chamber, etc.) • Provide a link to the co -branded web site www.caremark.com/nlc from the city web site, as this site contains the program information and useful tools for city residents, including online enrollment with the ability to print an ID card and use it immediately. • Identify a person on the city staff to serve as the principal program contact with NLC and CVS Caremark. Ron BottonW, city Manager Direction for staff to move forward and submit a request to enroll in the program. 3 GJ Date Over One Million Dollars in savings to residents during the first year of the program. As a member of National League of Cities (NLQ you can offer your residents a FREE prescription discount card that provides average savings of 20% off the retail price of prescription medication. Now residents who are without health insurance or a traditional pharmacy benefit plan, or have prescriptions not covered by insurance have a solution to obtain medications at a discount. There is no cost to your city to provide this program to city residents and it is very likely that you may save those residents more on the cost of prescriptions over the course of one year than the city's dues to NLC. The city will be provided with approved marketing materials and tools to promote and launch the program. City residents can easily print an ID card and use program tools via a program web site. Printed ID cards and display materials (customized with the city name and logo) will be provided to give the city residents easy access to the program. Program materials are available in English and Spanish. One benefit of membership in the National League of Cities is that you can save your residents money at no cost to the city! Sign up today! Complete the Qka form inside. National league of Cities Simple implementation process for the city and easy to access for the resident* The city works with a CVS Caremark representative to launch the prescription discount card program which takes approximately eight weeks from receipt of the completed 'Ready to get started' form (attached). Following the launch in your city, your residents will have: • Average savings of 20% • Easy access, nine out of 10 pharmacies participate in the program, more than 60,000 pharmacies nationwide • No membership fees • No limit on how many times the card can be used • No age requirements • No income requirements • ALL family members are covered • Pet medications that are also used to treat a human condition To obtain more information about the program, please contact Marc Shapiro at NLC (shapiro@nlc.org) or visit www.nlc.org/prescriptioncard; additional program information can www.caremark.com/nic. Cities may also sign up for the program by completing the form attached or on NLC's website www.nlc.org/prescriptioncard. The National League of Cities (NLC) Prescription Discount Card program is administered by CVS Caremark, an experienced prescription discount card provider who has administered these programs since 1992. Your city must be a member in good standing of NLC to sponsor the program. t All communications must be reviewed and approved by NLC and CVS Caremark unless the city is using communications supplied by CVS Caremark. now mucn will resioenis save oy using the aiscount care. While savings on each prescription may vary, the NLC Prescription Discount Card Program saves an average of 20 percent off of the pharmacy's regular retail prices. The savings are validated monthly and annually. What if a pharmacy's price on particular prescription drugs is lower than the discount card price? The program uses a "lower -of" pricing schedule so that residents are never disadvantaged by using the discount card. On occasion, a participating pharmacy may have a lower price on particular prescription drugs. If that occurs, residents will always pay the lowest price. Who pays the cost of the discount? Pharmacies In the national discount network agree to absorb the cost of the discount. The benefit to the pharmacy of participating in the program is that it creates customer loyalty and Increases store traffic. Does NLC or CVS Caremark share the personal information of residents using the discount card? CVS Caremark does not give or share personally identifiable health information to manufacturers or direct marketers. CVS Caremark is fully compliant with all federal and state privacy and security regulations pertaining to the protection of protected health information and has a robust compliance program which monitors and enforces policy compliance. NLC neither receives nor shares personal information of residents. Does NLC or any participating city receive revenue from the program? Neither NLC nor any participating city receives revenue for sponsoring the discount card program. Does the program provide a competitive advantage to CVS Pharmacies? All major pharmacy chains and most local independent pharmacies, nearly 60,000 pharmacies nationwide, participate in the discount card network. Residents are not encouraged or incentivized to use CVS pharmacies over any other chain or independent pharmacy. Can the discount card be used with other prescription insurance benefits? The program is not insurance; it is a prescription discount program. The card ""' cannot be used to supplement Insurance benefits. The card can be used for prescriptions not covered by an insurance plan. Program operated by CVS Caremark. Wa#icncil Leaqu* of ClM*s This Is NOT Insurance. Discounts are only available at any participating pharmacy. 106-9003NL10 10.09 Caremark Page 1 of 2 Pharmacy Search Results Print Based on your selections, your search results are below. For driving directions, click on the map icon or pharmacy name. Search Criteria Your search has returned 60 pharmacies based on: S (h La P&I-4 , Starting Point: 77571 Max Travel Distance: 10 Language Preference: English Search Results Previous I Next Pharmacy Name Dlstancefmll ® Map and � Directions HE MEDICINE SHOPPE 1145 800 S BROADWAY ST 2.81 r 2 LA PORTE TX 77571 281-471-1241 R Additional Services: (/KROGER PHARMACY 34319 1300 W 2.83 diQ1 LAPORTEX 77757711 7 TX 1-842-1022 AMRITPHARMACY 401 W FAIRMONT PKWY STE C 2,99 LA PORTE TX 77571 281-307-4000 ❑+ Additional Services: j,eWALGREENS 03001 1102 S BROADWAY ST 3.09 LA PORTE TX 77571 281-471-7282 ❑+ Additional Services: i itlVALGREENS 03286 Y� 9705 SPENCER HWY 3.42 %sU LA PORTE TX 77571 281-470-7428 ❑O Additional Services: WAL-MART PHARMACY 10-5116 9025 SPENCER HWY 4.83 DEER PARK TX 77536 281-479-9364 Servlces:fii 0 Q ©+ Additional Services: WALGREENS 03848 3300 CENTER ST 5.06§ DEER PARK TX 77536 281-479-3488 Services:9 p+ Additional Services: CVS PHARMACY 03699 3505 CENTER ST 5.07 DEER PARK TX 77536 281-476-3461 Services:Sp BAYTOWN CLINIC PHARMACY 1602 GARTH RD {� 5.14'.tvJ� BAYTOWN TX 77520 218-837-2716 CVS PHARMACY 06716 2001 GARTH RD BAYTOWN TX 77520 5.31 281.422-0525 [+1 r=l664CK https://www.caremark.com/wps/myportal/! ut/p/kcxml/04_Sj 9SPykssyOxPLMnMzOvMOY... 2/23/2010 New cities are implementing the program everyday! 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Discounts are only available at participating pharmacies. Operated by CVS Caremark. 0 2009 CVS Caremark. All rights reserved.106-9003NL05 10.09 i? REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8, 2010 Requested By: Tim Tietjens / Chief Adcox Department: Planning / Police Report: Resolution: Ordinance: Exhibits: Map of Proposal Exhibits: Exhibits Budeet Source of Funds: N/A Account Number:015-9892-976-9150 Contingency Amount Budgeted: $35,000 Amount Requested: $1,000 Budgeted Item: YES NO SUMMARY & RECOMMENDATION With the completion of five Points Plaza construction and changes in traffic flow, this is a request for a workshop to consider changing East "A" from, a two-way to a one-way from Virgina Street to San Jacinto Avenue. and consider designating a portion of East "A" Street as a one way street. A r ed for CIty Vouncil Agenda L I Y, I t '�'5 /5 /1120 Ron Bottoms, CWy Manager Date REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8, 2010 Requested By: John Joerns Department: Administration Report: X Resolution: Ordinance: Exhibits: Table A Exhibits: Table B Exhibits: Table C Exhibits: Area Mar) Budget Source of Funds: Account Number: Amount Budgeted: Amount Requested: SUMMARY & RECOMMENDATION We are conducting a review of surplus properties which includes tax delinquent properties. For discussion purposes we have divided the properties into these major groups. • Property owned in fee and previously bid • Property owned in fee and needing special considerations by City Council • Tax Delinquent Properties Table A For property owned in fee and previously bid where either no bids were received or bids rejected by City Council: • Re -bid using prior information and evaluate bids received • If bids not acceptable, then negotiate with highest bidder to see if agreement can be reached Table B For properties owned in fee but suggest special consideration by City Council: • Visit with City Council in executive session to discuss particular issues regarding these properties Table C Tax Delinquent properties falling into two categories: 1. Properties too small to build on, usually one 25-foot lot or remnants of properties — (generally only of value to adjacent property owners) (approximately 13 properties) • For properties where bids were received but not closed • Give bidders 30 days to respond to completing transaction related to previous bid • If no response, then again place on rolling bid list • If no response & closure on rolling bid Remaining Tax Delinquent Properties: • Review for any public need • Review for properties where bids were received but not closed o Follow process outlined above • Review for consideration for housing opportunities (i.e. Habitat for Humanity or other non-profit) • Review properties where special consideration by City Council is recommended. Pending City Council approval of this approach, staff will move forward including confirmation with the City's Deliagogit Tax Attorney to approve processes suggested for tax delinquent properties. 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Action Required by Council: Receive report on the proposed La Porte Anti -Litter Campaign and give staff direction. Ron L> - 1, /� ate City of La Porte City Council Report & Recommendation La Porte Anti -Litter Campaign March 8, 2010 Overview The City of La Porte has been is making great strides in improving the public landscape around the City. There have been a number of beautification efforts that are really beginning to pay off in terms of improving the way La Porte looks, both to our residents and to visitors. Our Code Enforcement staff has stepped up their efforts in getting the City more presentable and keeping us moving in the right direction when it comes to improving La Porte's quality of life and appearance. Problem The City is experiencing a surprisingly large amount of litter on our major thoroughfares, especially Fairmont Parkway. Trash is strewn from SH146 all the way east to the eastern city limit at Luella and it seems to reappear as fast as it is picked up. Proposed Solutions Staff is proposing a two pronged approach to the problem. • One, to begin a series of education steps to make our citizens aware of the problem through newspaper articles, water bill inserts, Marquee notices, and special cleanup events. • Two, staff is proposing that the City of La Porte begin an "Adopt a Street" program here that would, with a little bit of effort from a lot of folks, really help the appearance of our City. Several of the community service organizations, Rotary International, Bayshore Baptist, and as well as volunteers from Albemarle, have already indicated that they would like to participate. We believe that a large number of churches, civic groups, school groups and service organizations will assist us in this beautification effort. Development The program would be simple. Fairmont Parkway would be divided into three segments; SH146 to Driftwood (1.7 miles), Driftwood to Underwood (1.5 miles), and Underwood to Luella (1.5 miles). We would set up a quarterly litter pickup for each of the three segments. A service group that signs up for a segment would, depending on the response, only pick up their area one time per year (of course they could organize and do other pickups as they desired). Our estimate is that it would take 4-5 hours to pick up both sides of Fairmont per each segment, with 10-15 volunteers. As an added incentive, and as a Pilot Project, the City proposes to pay each organization a stipend for their quarterly service of $200 each time. The total cost for 3 segments, 4 times per year, would be $2,400. This is not a huge amount of money, but it does represent a nice little sum for example, for a school booster club or service organization for a morning's work. The City would also provide a roll of plastic bags, and yellow safety vests (for the first time) to each organization, and a roll of bags for each subsequent quarterly pickup. This is a nominal cost to the City and will pay dividends in the long run. We would also recognize the organizations that sign up to support the effort, by placing "Adopt a Road" signage at each segment, with smaller signs underneath, identifying each participating group. Summary This proposed pilot program is a win -win for the City, its citizens, and for the participating organizations. It will provide positive reinforcement toward both approaches; education about the litter problem in our city, and making a concerted effort to physically improve the appearance of our city. Together we can continue to make La Porte a better, more attractive city to live in and work in. 19 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March 8, 2010 Requested By: S. Gillett Department: Public Works Report: X Resolution: Ordinance: Exhibits: Proposal and Agreement to Perform Final Design Exhibits: Construction Cost Estimate Exhibits Appropriation Source of Funds: GEN957 Account Number: 015-9892-957-1100 Amount Budgeted: $ 2,000,000 Amount Requested: $158,800 Budgeted Item: Yes SUMMARY & RECOMMENDATION On September 14, 2009, the Drainage and Flooding Committee heard the results of a detailed study performed by Klotz and Associates regarding drainage problems on Fleetwood Drive and adjacent streets. The Committee directed staff to negotiate a contract to prepare a Preliminary Engineering Report (PER) to evaluate all alternatives and recommend a cost-effective solution to the problem. The PER was completed and two (2) alternatives were presented to the Committee on February 16, 2010. Following a request from the Fairmont Park east HOA, the Committee delayed recommending an alternative to give the HOA time to further review and comment on the PER. The Committee met on March 1, 2010 to select an alternative to recommend to the City Council. The HOA recommended Alternative 5a, with the addition of additional storm sewer north to North Sycamore Street. The Committee voted to recommend Alternative 5a, including the recommendation to extend the storm sewer north to North Sycamore Street. Total estimated construction cost, including an additional $133,418 for the added pavement and storm sewer and a 20% contingency, totals $1,541,051 (Cost estimate attached). Klotz and Associates has submitted a proposal to perform Final Design and Construction Phase Services for the selected alternative. The cost of the Proposal is as follows: Final Design Phase $ 128,690 Biding Phase 4,000 Construction Phase 20,780 Reimbursables 5,330 Total $158,800 The schedule to complete bid ready plans, specifications, bid documents and final cost estimate is 120 days. J&tift Required by Council: Authorize the City Manager to execute an agreement with Klotz Assoc ates to perform a Final Design, bidding and construction phase services for the Fleetwood Drive treet and Drainage Project for a total cost of $158,800. Appr v A Council ALyenda Ron Bottoms, City Manager Date klotzI 1�71 I a s s o c i a t e s 1 160 Dairy Ashford, Suite 500 Houston, Texas 77079 T 281.589.7257 F 281.589.7309 houston.officegklotz.com March 2, 2010 Mr. Steve Gillett Director of Public Works City of La Porte 2963 North 23`d Street LaPorte, Texas 77571 Re: Proposal for Engineering Services Fairmont Park East Fleetwood Drive — Alternative 5a Modified Dear Mr. Gillett: This letter provides a detailed scope of engineering services and fee proposal for final design, bid phase and construction phase services for the referenced project. BACKGROUND Fleetwood Drive is a concrete curb and gutter roadway section that is elevated above intersecting streets along its alignment. The intersecting residential streets drain away from Fleetwood Drive toward inlets located in a sag in the residential street profile. These low points collect water from contributing lots and roadway surfaces. Portions of Fleetwood Drive are high and restrict sheet flow. During frequent storm events severe ponding occurs. In addition to Fleetwood Drive, five side streets are being affected with the recommended construction. They are: South Spruce, Linwood, Dogwood, Idlewood and Mulberry. The drainage analysis showed these to be the highest problem areas with respect to ponding and inability to have surface runoff in significant rain events to reach Fleetwood Drive and discharge properly. Of these five side streets, three of them require substantial length of street lowering to achieve the 6 inch vertical ponding criteria established as part of the alternative analysis portion of this project. The three `critical' side streets are Linwood, Dogwood and Idlewood. This fee proposal is for final design and construction phase services for Alternative 5a modified. This Alternative 5a modified scope will include designing a 5-year storm sewer system upstream to North Sycamore Street. The following sections detail our proposed scope of services for design, bid and construction phase services for Alternative 5a modified. celebrating i- years of engineering excellence Mr. Steve Gillett March 2, 2010 Page 2 of 5 klotz,Iass0Ciates SCOPE OF ENGINEERING SERVICES Final Design Task 1 — Project Client Meetings We will meet with the City on a bi-monthly basis to review and discuss project progress. We will prepare meeting notes for each meeting and forward to the City for review/comment. Task 2 — Optimize Storm Sewer Sizing Sizing of the storm sewers in the PER was done using the Rational Method. As we develop the final design of the proposed storm sewer and the roadway section to be modified, we will model the proposed storm sewer and overland sheet flow using XPSWMM. This will allow us to optimize pipe sizes and ensure that overland flow during an extreme event meets the project design criteria. Task 3 — Prepare Drawings for Storm Sewers and Street Modifications Klotz Associates will prepare drawings necessary to show the proposed storm sewer improvements and street/paving modifications. Drawings will include required plan/profile drawings at a scale of 1 inch: 20 feet horizontal and 1 inch: 2 feet vertical. Drawings will also include necessary detail sheets. All drawings will be prepared in electronic format using AutoCAD 2009. Drawings will be submitted to the City at the 70%, 90% and bid ready stages. Task 4 — Prepare Traffic Control Plan Traffic control plans required for construction will be prepared. Traffic control plans will consist of standard detail sheets and required signage to maintain traffic during construction. Temporary detour plans, if required will be prepared. Drawings will be submitted to the City at the 70%, 90% and bid ready stages. Task 5 — Prepare Storm Water Pollution Prevention Plans Storm water pollution prevention plans (SWPPP) will be developed for the project. The SWPPP will use the plan views for the storm sewer design as base sheets. The SWPPP sheets will show the necessary pollution prevention devices and details as required. The project manual will include the necessary specifications for the contractor to file the required Notice of Intent. SWPPP documents will be submitted to the City at the 70%, 90% and bid ready stages. Task 6 — Prepare Specifications and Bid Documents Klotz Associates will prepare project specifications for the project using the sixteen -division, three-part format of the Construction Specifications Institute. "Front end" documents will be standard Engineer's Joint Construction Documents Committee (EJCDC) 2007 edition or "front end" documents received from the City of LaPorte. Technical specifications will be Klotz Associates Standard Specifications, as applicable. Proposed contract documents and specifications will be submitted to the City at the 70%, 90% and bid ready stages of the project. klotz'Iassociates Mr. Steve Gillett March 2, 2010 Page 3 of 5 Task 7 — Prepare Opinion of Probable Construction Costs Klotz Associates will prepare an opinion of probable construction cost which includes summaries of bid items and quantities as appropriate. Copies of the opinion of construction costs will be provided along with the draft copy of the bid documents for review at the 70%, 90% and bid ready stages of the project. Task 8 — Agency and Private Utility Plan Reviews and Signatures Klotz Associates will submit the 90% review drawings to the Harris County Flood Control District (HCFCD) for review and approval. HCFCD review will be limited only to drawings in their easements and the proposed outfall. We will coordinate review with private utilities (SBC and CenterPoint) and obtain required signatures on our drawings. Bid and Award Phase Task 1 - Bidding and Award Phase Services Bidding and award phase services are summarized as follows: 1. Provide a notice to bidders for use by the City of La Porte in advertising the project in the newspaper. (The City will pay for the newspaper advertisement.) 2. Send copies of bid documents to local bid information services (up to 5 copies). 3. Sell bid documents to prospective bidders and maintain a bidders list. Conduct a pre -bid conference for prospective bidders. 4. Answer questions of bidders and suppliers during the bid preparation period. 5. Issue addenda, as required. 6. Assist the City with conducting the pre -bid conference. 7. Attend Bid Opening. 8. Check bids for errors and responsiveness and tabulate results. 9. Review information on the qualifications of the apparent low bidder. 10. Issue a recommendation for award. 11. Post addenda to drawings and project manual. 12. Send contract documents to contractor and the Owner for signatures. Construction Administration Services Task 1 — Preconstruction Conference Klotz Associates will attend the preconstruction conference to discuss general and specific requirements for fulfilling the Construction Contract. Klotz Associates will prepare a meeting agenda, assist the City with conducting the meeting and prepare a meeting summary. kIotzJ11ass0Ciates Mr. Steve Gillett March 2, 2010 Page 4 of 5 Task 2 — Review Submittals and Shop Drawings Submittals will be received, logged, reviewed and approved by Klotz Associates. Applicable City of La Porte review comments, which are received in a timely fashion, will be combined with Klotz Associates review comments. These submittals will include shop drawings, product data and material and equipment samples. Klotz Associates will maintain a submittal log describing the current status of all the Construction Contractor's submittals. Klotz Associates will maintain a submittal file that will contain a copy of all interim and final submittals received by Klotz Associates. Task 3 — Interpretations and Clarifications Requests for Information (RFIs) will be received, logged, and reviewed. Klotz Associates will respond either directly to the contractor or to the City of La Porte as appropriate. Task 4 — Change Orders Klotz Associates will develop, and provide to the City, all the change orders required for the Project. Klotz Associates will develop the necessary Construction Contract Documents required to support the change orders including construction drawings and specifications for facilities designed by Klotz Associates, Task 5 — Review Contractor's Progress Payment Submittals Klotz Associates will receive and review progress pay estimate submittals from the contractor. Upon satisfactory review, Klotz Associates will forward the pay estimates to the City of La Porte for payment. Task 6 — Substantial and Final Walk Through Inspections Klotz Associates will participate in an inspection with the City and other appropriate parties to determine if the project is substantially complete and to determine if the work has been completed in general accordance with the Construction Contract Documents. Klotz Associates will prepare a draft and final Certificate of Substantial Completion Klotz Associates will develop and provide to the City a formal pre -final punch list developed from the observations made at the inspection for Substantial Completion. Klotz Associates will participate in a final inspection with the City and other appropriate parties to determine whether the project is complete. Klotz Associates will prepare a final punch -list of items to be completed or corrected by the Construction Contractor and conduct one follow-up inspection of the site. Task 7 — Post Construction Services Klotz Associates will prepare record drawings for the project based on "redlines" received from the construction contractor. Mr. Steve Gillett March 2, 2010 Page 5 of 5 TERMS kIotz4IIassociates We propose to furnish the proposed engineering services on a lump sum basis in accordance with the terms and conditions of the attached Short Form of Agreement Between Owner and Engineer for Professional Services. Please execute the agreement and return one copy to us. This fee proposal does not include any detention plans, if required, nor does it include any Corps of Engineers Permits. FEE Klotz Associates proposes to perform the work described hereon for a lump sum fee of $158,800.00. A breakdown for each task item is shown in the attached spreadsheet. SCHEDULE We propose to complete bid ready plans, specs, bid documents and cost estimates within 120 days of our notice to proceed with the project. CLOSING We appreciate the opportunity to be of service to the City of La Porte. Please feel free to call me if you have any questions or require any additional information. Sinc rely, f -t 1 J Gary L. t zick, P.E. Vice President GLS:ng Attachments V) W v O V) V) m ,.■. bzw"4 N O d �o 0 E R d a e L Y r Q p i O = O bA 'R ,.a y O A N M �y S G O O y L O C u acci a as t Ow U ty0 � L •O A '9 h y 1 L G �c G L ct W This document has important legal consequences; consultation with an attorney is encouraged with respect to its use or modification. This document should be adapted to the particular circumstances of the contemplated Project and the Controlling Law. i SHORT FORM OF AGREEMENT BETWEEN OWNER AND ENGINEER FOR PROFESSIONAL SERVICES Prepared by ENGINEERS JOINT CONTRACT DOCUMENTS COMMITTEE and Issued and Published Jointly by National Society of American Society AC E ProfeProfessionalEngrne ers@ ASCEof Civil Engineers PROFESSIONAL ENGINEERS IN PRIVATE PRACTICE a practice division of the NATIONAL SOCIETY OF PROFESSIONAL ENGINEERS AMERICAN COUNCIL OF ENGINEERING COMPANIES AMERICAN SOCIETY OF CIVIL ENGINEERS This Agreement has been prepared for use with the Standard General Conditions of the Construction Contract (No. C-700, 2002 Edition) of the Engineers Joint Contract Documents Committee. Their provisions are interrelated, and a change in one may necessitate a change in the other. EJCDC E-520 Short Form of Agreement Between Owner and Engineer for Professional Services Copyright © 2002 National Society of Professional Engineers for EJCDC. All rights reserved. SPECIAL NOTE ON USE OF THIS FORM: This abbreviated Agreement form is intended for use only for professional services of limited scope and complexity. It does not address the full range of issues of importance on most projects. In most cases, Owner and Engineer will be better served by the Standard Form of Agreement Between Owner and Engineer for Professional Services (No. E-500, 2002 Edition), or one of the several special purpose EJCDC professional services agreement forms. Copyright © 2002 National Society of Professional Engineers 1420 King Street, Alexandria, VA 22314 American Council of Engineering Companies 1015 15th Street N.W., Washington, DC 20005 American Society of Civil Engineers 1801 Alexander Bell Drive, Reston, VA 20191-4400 EJCDC E-520 Short Form of Agreement Between Owner and Engineer for Professional Services Copyright © 2002 National Society of Professional Engineers for EJCDC. All rights reserved. SHORT FORM OF AGREEMENT BETWEEN OWNER AND ENGINEER FOR PROFESSIONAL SERVICES THIS IS AN AGREEMENT effective as of the City of La Porte, Texas ("Effective Date") between ("Owner") and Klotz Associates, Inc. ("Engineer") Engineer agrees to provide the services described below to Owner for Fairmont Park East Fleetwood ("Project"). Drive — Alternative 5a modified Description of Engineer's Services: Please see the attached Proposal dated March 2, 2010. Owner and Engineer further agree as follows: 1.01 Basic Agreement A. Engineer shall provide, or cause to be provided, the services set forth in this Agreement, and Owner shall pay Engineer for such Services as set forth in Paragraph 9.01. 2.01 Payment Procedures A. Preparation of Invoices. Engineer will prepare a monthly invoice in accordance with Engineer's standard invoicing practices and submit the invoice to Owner. B. Payment of Invoices. Invoices are due and payable within 30 days of receipt. If Owner fails to make any payment due Engineer for services and expenses within 30 days after receipt of Engineer's invoice, the amounts due Engineer will be increased at the rate of 1.0% per month (or the maximum rate of interest permitted by law, if less) from said thirtieth day. In addition, Engineer may, without liability, after giving seven days written notice to Owner, suspend services under this Agreement until Engineer has been paid in full all amounts due for services, expenses, and other related charges. Payments will be credited first to interest and then to principal. 3.01 Additional Services A. If authorized by Owner, or if required because of changes in the Project, Engineer shall furnish services in addition to those set forth above. B. Owner shall pay Engineer for such additional services as follows: For additional services of Engineer's employees engaged directly on the Project an amount equal to the cumulative hours charged to the Project by each class of Engineer's employees times standard hourly rates for each applicable billing class; plus reimbursable expenses and Engineer's consultants' charges, if any. 4.01 Termination A. The obligation to provide further services under this Agreement may be terminated: For cause, a. By either party upon 30 days written notice in the event of substantial failure by the other party to perform in accordance with the Agreement's terms through no fault of the terminating party. b. By Engineer: 1) upon seven days written notice 1 of 4 EJCDC E-520 Short Form of Agreement Between Owner and Engineer for Professional Services Copyright © 2002 National Society of Professional Engineers for EJCDC. All rights reserved. if Engineer believes that Engineer is being requested by Owner to furnish or perform services contrary to Engineer's responsibilities as a licensed professional; or 2) upon seven days written notice if the Engineer's services for the Project are delayed or suspended for more than 90 days for reasons beyond Engineer's control. 3) Engineer shall have no liability to Owner on account of such termination. c. Notwithstanding the foregoing, this Agreement will not terminate as a result of a substantial failure under paragraph 4.01.A. La if the party receiving such notice begins, within seven days of receipt of such notice, to correct its failure and proceeds diligently to cure such failure within no more than 30 days of receipt of notice; provided, however, that if and to the extent such substantial failure cannot be reasonably cured within such 30 day period, and if such party has diligently attempted to cure the same and thereafter continues diligently to cure the same, then the cure period provided for herein shall extend up to, but in no case more than, 60 days after the date of receipt of the notice. 2. For convenience, by Owner effective upon the receipt of notice by Engineer. B. The terminating party under paragraphs 4.01.A.1 or 4.0l.A.2 may set the effective date of termination at a time up to 30 days later than otherwise provided to allow Engineer to demobilize personnel and equipment from the Project site, to complete tasks whose value would otherwise be lost, to prepare notes as to the status of completed and uncompleted tasks, and to assemble Project materials in orderly files. 5.01 Controlling Law A. This Agreement is to be governed by the law of the state in which the Project is located. 6.01 Successors, Assigns, and Beneficiaries A. Owner and Engineer each is hereby bound and the partners, successors, executors, administrators, and legal representatives of Owner and Engineer (and to the extent permitted by paragraph 6.01.13 the assigns of Owner and Engineer) are hereby bound to the other party to this Agreement and to the partners, successors, executors, administrators, and legal representatives (and said assigns) of such other party, in respect of all covenants, agreements, and obligations of this Agreement. B. Neither Owner nor Engineer may assign, sublet, or transfer any rights under or interest (including, but without limitation, moneys that are due or may become due) in this Agreement without the written consent of the other, except to the extent that any assignment, subletting, or transfer is mandated or restricted by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. 7.01 General Considerations A. The standard of care for all professional engineering and related services performed or furnished by Engineer under this Agreement will be the care and skill ordinarily used by members of the subject profession practicing under similar circumstances at the same time and in the same locality. Engineer makes no warranties, express or implied, under this Agreement or otherwise, in connection with Engineer's services. Engineer and its consultants may use or rely upon the design services of others, including, but not limited to, contractors, manufacturers, and suppliers. B. Engineer shall not at any time supervise, direct, or have control over any contractor's work, nor shall Engineer have authority over or responsibility for the means, methods, techniques, sequences, or procedures of construction selected or used by any contractor, for safety precautions and programs incident to a contractor's work progress, nor for any failure of any contractor to comply with laws and regulations applicable to contractor's work. C. Engineer neither guarantees the performance of any contractor nor assumes responsibility for any contractor's failure to furnish and perform its work in accordance with the contract between Owner and such contractor. D. Engineer shall not be responsible for the acts or omissions of any contractor, subcontractor, or supplier, or of any contractor's agents or employees or any other persons (except Engineer's own employees) at the Project site or otherwise furnishing or performing any of construction work; or for any decision made on interpretations or clarifications of the construction contract given by Owner without consultation and advice of Engineer. E. The general conditions for any construction contract documents prepared hereunder are to be the "Standard General Conditions of the Construction Contract" as prepared by the Engineers Joint Contract Documents Committee (No. C-700, 2002 Edition). 2of4 EJCDC E-520 Short Form of Agreement Between Owner and Engineer for Professional Services Copyright © 2002 National Society of Professional Engineers for EJCDC. All rights reserved. F. All design documents prepared or furnished by Engineer are instruments of service, and Engineer retains an ownership and property interest (including the copyright and the right of reuse) in such documents, whether or not the Project is completed. G. To the fullest extent permitted by law, Owner and Engineer (1) waive against each other, and the other's employees, officers, directors, agents, insurers, partners, and consultants, any and all claims for or entitlement to special, incidental, indirect, or consequential damages arising out of, resulting from, or in any way related to the Project, and (2) agree that Engineer's total liability to Owner under this Agreement shall be limited to $50,000 or the total amount of compensation received by Engineer, whichever is greater. H. The parties acknowledge that Engineer's scope of services does not include any services related to a Hazardous Environmental Condition (the presence of asbestos, PCBs, petroleum, hazardous substances or waste, and radioactive materials). If Engineer or any other party encounters a Hazardous Environmental Condition, Engineer may, at its option and without liability for consequential or any other damages, suspend performance of services on the portion of the Project affected thereby until Owner: (i) retains appropriate specialist consultants or contractors to identify and, as appropriate, abate, remediate, or remove the Hazardous Environmental Condition; and (ii) warrants that the Site is in full compliance with applicable Laws and Regulations. 8.01 Total Agreement A. This Agreement (consisting of pages 1 to 4 inclusive together with any expressly incorporated appendix), constitutes the entire agreement between Owner and Engineer and supersedes all prior written or oral understandings. This Agreement may only be amended, supplemented, modified, or canceled by a duly executed written instrument. 3of4 EJCDC E-520 Short Form of Agreement Between Owner and Engineer for Professional Services Copyright © 2002 National Society of Professional Engineers for EJCDC. All rights reserved. 9.01 Payment (Lump Sum Basis) A. Using the procedures set forth in paragraph 2.01, Owner shall pay Engineer as follows: 1. A Lump Sum amount of $158,800.00 B. The Engineer's compensation is conditioned on the time to complete construction not exceeding 4 months. Should the time to complete construction be extended beyond this period, total compensation to Engineer shall be appropriately adjusted. IN WITNESS OF, the parties hereto have executed this Agreement, the Effective Date of which is indicated on page 1. OWNER: (City of a orte, Te as ENGINEER: Klotz Associates, Inc. >IflDV By: BY' c Michael A. Ogden, P.E. Title: an V-1 Title: Senior Vice President Date Signed: Date Signed: Z' l License or Certificate No. and State F-929 Address for giving notices: Address for giving notices: 1160 Dairy Ashford, Suite 500 Houston. Texas 77079 4 of 4 EJCDC E-520 Short Form of Agreement Between Owner and Engineer for Professional Services Copyright © 2002 National Society of Professional Engineers for EJCDC. All rights reserved. ANemative 5a Modified Cost & Quantities Removal and Replace Roadway with Lower Profits Grade Una tor Fleetwood Drive From S. Spntce to Mulberry Drive, Side Street Locations 3 Storm Sewer System beginning at u a,.ea.n..w. r., ,..Arell e}HCFCD R706-o2-0a Ilan Ho. Spec. No. Item Dsacdptlon Unit Total pwnbty Fleetwood a. Mulberry kllewood Dogwood mood Stwth Spnlee Unit Pr10e Total Cost Paving items Clearing end Grubbing Ste 38.5 23.5 3 3 3 3 3 $t50.00 55.775.tN1 r3VOO Preparing the Right at Way LS 1 $12.500.00 $12.500.00 Removing Old Co to SY 80W 5000 800 WX 800 600 600 S4.DO S32'000.00 4 00105 Concrete SldeWelk 1308,00mem SY sm 978 102 107 151 135 t51 $30.00 $15.000.00 5 00105 Wheeldbaf Ramp$ EA 30 10 4 4 4 4 4 1;sDoo0 $15,000.00 6 00109 Concrete Drbeexay Replooe t BY 512 0 55 125 112 125 92 $45.00 $23.040.00 7 OD110 Roadway Excavation 8 Disposal CY 30M 1169 74 104 115 as 71 $7.00 $21.000,00 8 DD112 General Sodding BY 4061 2444 266 267 376 338 378 $5DD $20.305.00 9 0DI20 Cho -el Escavalivn CY 30 $40.00 $1,200.00 10 D0132 Embankment I FRI CY 100 50 10 10 10 10 10 $50,00 $5.000.00 11 00180 furnishing sort Placing Topsoil CY 337 204 20 21 32 28 32 $10.00 $3.370.O 12 00220 Lime Slabiized Subgreds SY un 5000 800 8W 800 6D0 600 $3,00 $24,D00.00 13 00221 Hydmted Lime and Lime Slurry TON 249 156 19 19 19 19 19 5135.00 333.SD3.43 14 00W 6. Concrete Pavement SY 8000 50D0 600 B00 SW 600 am 341,00 3328,000.00 0D550 FerckV Removal and Replacement LF 100 t00 $10.00 31,000.00 00530 Concrete Curb and Gutter LF 5960 3980 400 400 400 400 400 $5.00 $29.900.0D F17 00500 ReRelofficte TraSig-. Mall Boxes, Roadway Signs move 6 LS 1 $7,000.00 $7.000.00 ON24 Akrwrum Signs EA 10 2 2 2 2 2 $200.00 32.000.00 00680 Refiegonzed Paverrlerl Markups LF 85 0 13 13 13 13 13 515.00 $97500 20 00671 u fk Cortrd MO 12 7 1 7 1 1 1 52,400.(10 $28.smoo 21 00581 Ydeotapkq Coro**., do LS 1 $2,000.00 32.000.00 22 DD713 Reinforced Faer Fahrlc Barrier LF 7700 4700 Soo 600 No 600 800 53.50 526,960.00 23 0=1 Tree Protection and TrlmWV LS 1 $2,500.01) $2,500.00 24 Remove an4 Replace land$ pitg LS 1 35.000.00 35,O0OOD kip Pc.aceba PniW Ro. 0117.012 Ws Fa�aem Part PFA CntN.PCN —.2clo O 8 N ly 8 D O I7 44 8 OOp IA 11'> H 8 g tD H 8 O N IO H $ 0 h N O S Qi O O H O S H O O S 80 H p N P O H $ N h N O G ~ pO N fY N pO N N P 8 D N p4 OD Y O 8 O N O S W% M o O W O S i0 N O S IA H O S ID N $ S t0 P Yi 8 NH S w S $ K m N N M W ff N �p N H H N ` H H 11f N M N H w N PP M N N N N f0 S N N W N ry g N � t0 m N P c0 N N n N n N tD N N N M M lP f0 N N (D N W O tO f0 N N S N 10 N W W W W J W J J J J LL 'gW L a N 6 C =y x m C N o •� $ y s L e D O o U € W qNg O G 12 C7 tl N (!J 0. K C € w a R (n a D.' co n- C' C1 cn m m U (t1 N o O co t m °a y C vi o $ G # 2-1 o0 a � Q lo ~ a g a g ~ s g S $ a S2 o $ 0 S� 0 0 o of o o 2 a 2 n 2 on Z m n 2 Z m to Lo vi imp S O po O ul $ O O {Oy O pOp O O QO N M $ N $ a8 $co �Op 101 CtpO o o �, $ $$ oo 8 $$ w w a �• N c o O 0 8 y O 0 o 0 3 M 0 ci S N 8 0 6CY H 8 8 g S S 8 8 K g w R E 8 $ w a N N N co N �O Y J U fA U y Vi N N W J ll] J J J J J W J N co w _c O U s U O 'a fr C O al to m '� _ U t q � S tl ■ ; W G n coV7 N O C Z o Z fn O Z lq O Z (A C 2 Vt N S (p� S tpy S $ $ (7p S S pQ O ��}5 O Z.1 n N Z p. to ZU� 0 Z f7 q N h rp Yi h tp v) h S m .p fp m m pp 0 Or n r r 3$ N f%1 ppU N f� LE S 20 CITY COUNCIL DRAINAGE REPORT March 8, 2010 Klotz Design and Contract Construction • Design of Sheet Flow Relief Structure Improvements to Creekmont, Fairmont Park West, Brookglen and Fairmont Park East. Bidding documents have been reviewed, and staff met with the consultant in late February to discuss several design issues. First phase of flume construction scheduled bid in March for 10 flumes (5 along B 112 main stem only, and 5 others in Fairmont West, Fairmont East, Creekmont and Glen Meadows). Owner meetings have occurred, notification updates have been sent. • Drainage Study of Brookglen. Consultant is beginning design work for proposed detention facilities. Consultant will produce preliminary engineering reports and models based upon associated channel improvements proposed; will design detention systems with appropriate alternates and obtain approvals; and will conduct bid and construction phase processes. • Fairmont Park East — Fleetwood Drive. The Preliminary Engineering Report (PER) was presented to the Drainage and Flooding Committee on February 16, 2010. The Fairmont Park East HOA requested time for their consultant to review the report and provide comments to the Committee. The Committee agreed to delay consideration of the PER until March 1, 2010. In -House Design and Construction of City -initiated Projects • South La Porte Bay Outfalls. The plans and specifications for the Oakhurst Outfall have been furnished to Harris County for implementation. The County has not furnished a timeline for bidding. • F-216 Regional Detention Project. Clearing of F-216 regional detention is underway. First phase of excavation is approximately 25% complete. Corps of Engineers permit is pending, and water quality certification has been received. • Coordination with Harris County Flood Control District. — No activity this month. In -House Drainage Maintenance Activities. • Bay Colony. Construction completed to lower the outfall to the Bay to accommodate proposed improvements. Personnel have completed improvements to East end of Bay Colony. An additional underground system will be constructed on the north side of Bay Colony drive to divert water from adjacent side streets to the new outfall, up to the east side of Dolphin. Material has been ordered. Maintenance cleaning of Bay Colony Drive to the west of completed areas will take place while awaiting delivery of these materials. • North and South Shady Lane. City furnished design of the proposed sheet flow structure to the resident at the east end of N. Shady Lane. Staff will follow up this letter with a proposed easement to allow construction. Pipeline operators have surveyed line and elevation of their facilities crossing the outfalls on Broadway and Sunrise into the Bayport Channel to determine if the outfalls can be reestablished below the existing pipelines. Staff is following up this information to design the improvements. • In -Fill Drainage. Cleaned ditches in various areas of the city. Currently concentrating in the area bounded by South 8th, Main, Broadway and Fairmont Parkway. Inspected and cleaned underground storm sewer system on Main Street from 6tn to SH146. • Total Drainage Maintenance Completed This Period o Cleaning of Ditches 6,514 LF o Resetting culverts 313 LF o Inlet installation/repairs 6 Ea o Culvert Maintenance/cleaning 2,657 LF