HomeMy WebLinkAbout10-23-06 Regular Meeting of Fiscal Affairs Committee Minutes
MINUTES OF THE LA PORTE FISCAL AFFAIRS COMMITTEE
October 23, 2006
1. Call to Order
The meeting was called to order by Councilman Chuck Engelken at 5:07 p,m,
Members of Committee Present: Councilmembers Barry Beasley, Louis Rigby, and Chuck
Engelken.
Members of Committee Absent: Tommy Moser and Howard Ebow,
Members of City Council, City Executive Staff/Controller and City Employees Present:
Councilmember Peter Griffiths, Assistant Director of Finance Michael Dolby, Controller Phyllis
Rinehart, City Secretary Martha Gillett and Interim City Manager John Joerns.
Other citizens: Sue Gail Kooken
2. Consider approval of Minutes of Regular Meeting of La Porte Fiscal Affairs Committee Minutes
held on July 24, 2006,
Motion was made by Committee Member Beasley to approve the minutes as presented. A
second by Committee Member Engelken. The motion carried.
Ayes: Beasley, Engelken, and Rigby
Nays: None
Abstain: None
3. Controller Phyllis Rinehart presented quarterly investment reports for review.
4, Assistant Finance Director Michael Dolby requested committee members to consider an
Alternate investment Broker.
Motion was made by committee member Beasley to add Wells Fargo Investment Officer as
recommended by staff. Second by Committee member Rigby. Motion Carried.
Ayes: Engelken, Beasley and Rigby.
Nays: None
Abstain: None
5. Assistant Finance Director Michael Dolby presented the fourth quarter credit card expenditure
report.
Mr. Dolby noted the auditor's will provide the audit report to the City in mid January,
Minutes of the La Porte Audit Committee October 23,2006 - Page 2
The committee noted staff should look at going out for Requests for Proposals for Audit firms
due to the three year stipulation of bidding.
6, Administrative Reports.
There were no administrative reports,
7. Committee Comments
There were no committee comments.
8. Adjournment
There being no further business to come before the Committee, the meeting was adjourned at
5:18 p.m.
Respectfully submitted, ,
L/fl1(j)jJtL IJ (Jiulfj
Martha A. Gillett, TRMC, CMC
City Secretary
Approved thi~y of F&h(I1~ 2007.
Chairperson Chuck Engelken
(!bJ ~
CITY OF LA PORTE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended
September 30, 2006
Prepared by:
Department of Finance
11
City of La Porte
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30,2006
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
Organization Chart
GFOA Certificate of Achievement
List of Elected Officials
FINANCIAL SECTION
I ndependent Auditors' Report
Management's Discussion and Analysis
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets
Statement of Activities
Fund Financial Statements:
Balance Sheet - Governmental Funds
Reconciliation of the Governmental Funds Balance Sheet to
Statement of Net Assets
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures, and Changes
In Fund Balances of Governmental Funds to the Statement of Activities
Statement of Net Assets - Proprietary Funds
Statement of Revenues, Expenses and Changes in
Fund Net Assets - Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Notes to the Financial Statements
Required Supplementary Information
Notes to the Required Supplementary Information
Combining Financial Statements - Nonmajor Governmental Funds:
Combining Balance Sheet - Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds
Schedules of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual:
Grant Special Revenue Fund
Community Investment Special Revenue Fund
Hotel/Motel Occupancy Tax Special Revenue Fund
Tax Increment Reinvestment Zone One Special Revenue Fund
Capital Projects Fund
Transportation and Other Infrastructure Fund
1998 General Obligation Bonds Fund
2000 Certificate of Obligation Bonds Fund
2000 General Obligation Bonds Fund
2002 General Obligation Bonds Fund
2004 General Obligation Bonds Fund
111
Paoe
3
9
10
11
15
17
27
28
30
33
34
36
38
40
42
45
75
79
84
86
89
90
91
92
93
94
95
96
97
98
99
100
City of La Porte
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30,2006
TABLE OF CONTENTS
2005 Certificate of Obligation Bonds Fund 101
2006 Certificate of Obligation Bonds Fund 102
2006 General Obligation Bonds Fund 103
Debt SelVice Fund 104
Supplementary Individual Fund Financial Statements and Schedules - General Fund 105
Schedule of Revenues - Budget and Actual 106
Schedule of Expenditures - Budget and Actual 107
Combining Financial Statements - Nonmajor Enterprise Funds: 113
Combining Statement of Net Assets 114
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 115
Combining Statement of Cash Flows 116
Combining Financial Statements - Internal SelVice Funds: 117
Combining Statement of Net Assets 118
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 119
Combining Statement of Cash Flows 120
Capital Assets Used in the Operation of Governmental Funds: 121
Schedule by Source 123
Schedule by Function and Activity 124
Schedule of Changes by Function and Activity 126
STATISTICAL SECTiON
Net Assets by Component 129
Changes in Net Assets 130
Governmental Activities Tax Revenues by Source 132
Fund Balances of Governmental Funds 133
Changes in Fund Balances of Governmental Funds 134
General Government Tax Revenues by Source 135
Assessed Value and Estimated Actual Value of Taxable Property 136
Property Tax Rates - Direct and Overlapping Governments 138
Principal Property Taxpayers 140
Property Tax Levies and Collections 141
Ratios of Outstanding Debt by Type 142
Ratios of General Bonded Debt Outstanding 144
Direct and Overlapping Governmental Activities Debt 145
Legal Debt Margin Information 146
Pledged Revenue Coverage 148
Demographic and Economic Statistics 149
Principal Employers 150
Full-time Equivalent City Government Employees by Function 151
Operating Indicators by Function 152
Capital Asset Statistics by Function 154
IV
INTRODUCTORY SECTION
1
2
January 5, 2007
To the Honorable Mayor, Members of the Governing Council and Citizens of the City of La Porte,
Texas:
The Finance Department and City Manager's Office is pleased to submit the Comprehensive
Annual Financial Report for the City of La Porte, Texas for the fiscal year ended September 30,
2006. This report is published to provide the City Council, City staff, our citizens, our bondholders
and other interested parties with detailed information concerning the financial condition and
activities of the City government.
This report consists of management's representations concerning the finances of the City of La
Porte. Consequently, management assumes full responsibility for the completeness and reliability
of all of the information presented in this report. To provide a reasonable basis for making these
representations, management of the City has established a comprehensive internal control
framework that is designed both to protect the government's assets from loss, theft or misuse and
to compile sufficient reliable information for the preparation of the City of La Porte's financial
statements in conformity with GAAP. Because the cost of internal controls should not outweigh
their benefits, the City of La Porte's comprehensive framework of internal 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 Null-Lairson, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City of La Porte for the fiscal year ended September
30, 2006 are free of material misstatement. The independent audit involved examining, on a test
basis, evidence supporting the amount and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management and evaluating the
overall financial statement presentation. The independent auditor concluded, based upon the audit,
that there was a reasonable basis for rendering an unqualified opinion that the City of La Porte's
financial statements for fiscal year ended September 30, 2006, are fairly presented in conformity
with GAAP. The independent auditor's report is presented as a component of the financial section
of this report.
3
The independent audit of the financial statements of the City of La Porte included a federally
mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not only
on the fair presentation of the financial statements, but also on the audited government's internal
controls and compliance with legal requirements, with special emphasis on internal controls and
legal requirements involving the administration of federal awards. These reports are available in
the City of La Porte's separately issued Single Audit Report.
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 34,825.
The City is a home rule city operating under the Council-Manager form of government. Policy-
making and legislative authority are vested in a governing council consisting of the mayor and eight
other members. The city council is responsible, among other things, for passing ordinances,
adopting the budget, appointing committees and hiring both the City Manager and Attorney. The
City Manager is responsible for carrying out the policies and ordinances of the City Council, for
overseeing the day-to-day operations of the City and for appointing the heads of various
departments. The Council is elected on a non-partisan basis. The Mayor and Council members
serve three-year staggered terms, Six of the council members are elected by district. The Mayor
and the two remaining council members are elected at large.
The City of La Porte provides a full range of services, including police and fire protection, the
construction and maintenance of streets and other infrastructure and recreational activities and
cultural events. Certain services are provided through a legally separate Water Authority, which
functions, as a blended component unit and in essence, is a department of the City of La Porte,
and, therefore, has been included as an integral part of the City of La Porte's financial statements.
Additional information on the Water Authority and other blended component units can be found in
Note 1. B. of the notes to the financial statements.
The City's accounting records for general governmental operations are maintained on a modified
accrual basis, with the revenues being recorded when available and measurable and expenditures
being recorded when the services or goods are received and the liabilities are incurred.
Accounting records for the City's utilities and other proprietary activities are maintained on the
accrual basis.
The annual budget serves as the foundation for the City of La Porte's financial planning and
control. Budgetary control has been established at the individual department level. All agencies of
the City of La Porte are required to submit requests for appropriation to the City Manager on or
before May 26 of each year. The City Manager uses these requests as the starting point
4
for developing a proposed budget. The City Manager then presents this proposed budget to
council for review prior to August. The council is required to hold a public hearing on the proposed
budget and to adopt a final budget by no later than August. The appropriated budget is prepared
by fund, function (e.g., public safety) and department (e.g., police). The City Manager must
approve transfers of appropriations within a department. Transfers of appropriations between
funds, however require the special approval of the city council. Budget-te-actual comparisons are
provided in financial reports for each individual governmental fund for which an appropriated
annual budget has been adopted. For the general fund, this comparison is presented on page 76
as part of the required supplementary information. For governmental funds, other than the general
fund, with appropriated annual budgets, this comparison is presented in the governmental fund
subsection of this report, which starts on page 81.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City of La
Porte operates.
Local economy. The City of La Porte is located in the southeast quadrant of Harris County, which
is a 1,723 square mile county is a leading oil, gas and petrochemical areas. It has more than
3,200 manufacturing plants, the nation's largest concentration of petrochemical plants, the third
largest United States seaport and is a corporation management center. A significant part of the
County's major employers, manufacturers, education and financial institutions are located in
Houston, the County seat. The Texas Medical Center, located in Harris County, is one of the
nation's largest, providing medical care and educational opportunities. The county's 64 hospitals
have over 17,000 beds of which 4,600 are in the Texas Medical Center. Higher education facilities
includes: University of Houston, Rice University, Texas Southern University, St. Thomas University
and Houston Baptist College, all offering full four-year as well as postgraduate programs. The
Lyndon B. Johnson Space Center is also located here.
Located some 20 miles southeast of Houston on Galveston Bay in Harris County are the three
communities that make up the La Porte Bayshore Area: La Porte, Morgan's Point and Shoreacres.
The area has a combined population of approximately 40,000. Though much of the image of this
area is industrial, the La Porte-Bayshore area is still characterized by an expanse of resort homes.
Because of this, and the metropolitan advantages of Houston, La Porte is one of the few
communities in the Gulf Coast area that offers this favorable combination.
Future planning. The La Porte 2020 Comprehensive Plan is a 20-year master plan adopted by
the City Council to guide policy decisions relating to the physical and economic development of the
community. In general, the plan indicates how the community desires to develop and redevelop
over the course of the next twenty years. The comprehensive plan is a physical plan; it is long-
range, comprehensive and states the goals, objectives and policies of the local government. The
comprehensive plan provides clear direction through specific statements of action to achieve the
desired results envisioned by citizens and the leadership of the community.
5
The essential objectives of the comprehensive plan are as follows:
.:. It is a plan to guide the future physical development and redevelopment of the community;
.:. The time frame is long, extending over a twenty-year horizon;
.:. It encompasses a large geographic area including the corporate limits and ET J of the
community;
.:. It is general in nature, allowing some issues to be resolved and many decisions to be made;
.:. It articulates ideas in a framework of goals and objectives, policies and actions, and plans
and projects;
.:. It is intended foremost, to serve as a continuing guide to decision-making, to provide a
common direction and to provide stability as issues are addressed and future decisions are
made.
Residential Development. Neighborhoods are one of La Porte's greatest assets as they form a
foundation for a sound quality of life. The City is made up of several distinct neighborhood areas,
each with somewhat different physical characteristics such as the age of housing, street
configuration, and the sizes of structures and lots. Much of the City's overall image and identity is
due to the unique character of its neighborhoods and these distinguishing features should, therefore,
be preserved. Neighborhoods that are safe, well maintained and have character will maintain
property values and thus maintain a sound neighborhood environment and a stable residential tax
base. -
The attractive appearance and environmental quality of existing and future low-density residential
neighborhoods should be protected and improvements made where necessary to maintain the value
of properties and enhance the quality of life. As the city continues to develop it is important that the
integrity of the neighborhoods is preserved and the value and enjoyment of property is maintained
and enhanced.
Goals for residential development:
.:. Consider programs to revitalize and rehabilitate existing housing where needed.
.:. Meet the future housing needs by providing for a variety of housing options.
.:. Encourage the rehabilitation or replacement of substandard housing.
.:. Promote a standard of home ownership encouraging well-maintained residential properties.
.:. Preserve the integrity of existing neighborhoods and create livable and safe neighborhood
environments.
.:. Protect the attractive appearance and environmental quality of existing neighborhoods and
make necessary improvements to maintain the value of properties and enhance the quality
of life.
Beautification and Conservation. Citizens have expressed great interest for enhancing the
visual appearance of La Porte and the redevelopment and reinvestment in Downtown, along major
corridors and in nonresidential areas. Through public involvement it is apparent that citizens
visualize attractive shopping centers, livable neighborhoods, landscaped roadways, pleasant
places to walk and an enhanced quality of life. They want successful shopping areas that appeal
to shoppers. They see the opportunities in downtown to create a destination that combines a lively
entertainment district in a historically significant area, retail stores interspersed with restaurants
and professional offices and a blend of residential units as well.
6
Goals for Beautification:
.:. Improve the community character to make it a more desirable place to live, work and visit.
+:. Improve the aesthetic visual environment through enhancement of site design, signage,
roadways, parking areas, open space and landscaping.
+:+ Invest in Downtown to establish a vibrant mix of places to work, live and visit, with shops,
restaurants, entertainment and a variety of dwelling units.
Redevelopment Strategy. Urban redevelopment efforts require cooperative action to encourage
new and sustained private investment and to provide supporting rehabilitation of public
infrastructure. A key part of the process is determining what strategic actions the community
should take to achieve its redevelopment goals and objectives. Successful redevelopment will
often require cooperation and coordination between agencies at different levels of government as
well as non-profit community organizations. This should include coordination of physical
improvements with social service programs, which aim to enhance the health and economic
capacity of residents in targeted neighborhoods.
Redevelopment Goals:
+:. Stabilize and improve the quality of neighborhoods and other areas in decline by attracting
renewed private investment activity.
.:+ Revitalize the City's historic downtown area.
Cash management policies and practices. Cash temporarily idle during the year was invested
in demand deposits and obligations of the U.S. Treasury. The maturities of the investments range
from 30 days to 2 years, with an average maturity of 4.5 months. The average yield on
investments was 3.67% for the government. Investment income includes appreciation in the fair
value of investments. Increases in fair value during the current year, however, do not necessarily
represent trends that will continue; nor is it always possible to realize such amounts, especially in
the case of temporary changes in the fair value of investments that the City intends to hold to
maturity .
Pension and other post employment benefits. The City of La Porte sponsors a single-employer
defined benefit pension plan for its emergency services employees. Each year, an independent
actuary engaged by the pension plan calculates the amount of the annual contribution that the City
of La Porte must make to the pension plan to ensure that the plan will be able to fully meet its
obligations to retired employees on a timely basis.
The City of La Porte also provides pension benefits for its non emergency services employees.
These benefits are provided through a state-wide plan managed by Texas Municipal Retirement
System (TMRS). The City of La Porte has no obligation in connection with employee benefits
offered through this plan beyond its annual contractual payment to TMRS.
The City of La Porte also provides postretirement health and dental care benefits for certain
retirees and their dependents. As of the end of the current fiscal year, there were 57 retired
employees receiving these benefits.
Additional information on the City of La Porte's pension arrangements and post employment
benefits can be found in Notes 6 and 10 in the notes to the financial statements.
7
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal
year ended September 30,2005. This was the twenty-fifth consecutive year that the City has received
this prestigious award. In order to be awarded a Certificate of Achievement, the City published an
easily readable and efficiently organized comprehensive annual financial report. This report satisfied
both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to 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
finances.
Respectfully submitted,
John Joerns
Interim City Manager
Michael G. Dolby, CPA
Interim Director of Finance
8
E-.i
~~
~u
~
Q,~
~c
~~
eN
~N
u~
~
~
t'
.5
..
..
"
..
[I:l
.t-
U
'"
=
Cl>
.~
...
u
..
Cl>
t)I)
0:1
=
0:1
~
C
U
..
..
~
=
;;
~
.t-
U
..
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of La Porte
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2005
A Certificate of Achievement for Excellence in Financial
Reporting is presented by ilie 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.
President
~/~
Executive Director
CITY OF LA PORTE
LIST OF ELECTED OFFICIALS
ALTON PORTER
MAYOR
PETER GRIFFITHS
COUNCIL PERSON
AT LARGE A
.,--~.,
~F __......
/r...:_::~,:_: ................
//'& \<:.,.... ..................
/ '
//
BARRY BEASLEY
COUNCIL PERSON
AT LARGE B
LOUIS RIGBY
COUNCIL PERSON
DISTRICT 5
CHUCK ENGELKEN
COUNCIL PERSON
. DISTRICT 2
/
MICHAEL MOSTErf
COUNCIL PERSON.......
DISTRICT 1
HOWARD EBOW ....
COUNCIL PERSON ....
DISTRICT 3
TOMMY MOSER
.ftIIA VOR PRO TEM
. DISTRICT 4
...-r.-"-~""
MIKE CLAUSEN
COUNCIL PERSON
DISTRICT 6
11
12
FINANCIAL SECTION
13
14
] ] Greenway Plaza, Suite ] 5] 5
Houston, TX 77046
(713) 621-]5]5
Fax: (713) 621-]570
l" Vi If
/ 4\~ -,
:.A
NuUiLaIrsorl
PRClFi:SSOI, ~,l CC,;-'i'>LJCI!,
21 ] 7 Post Office Street
Galveston, TX 77550
(409) 762.8380
Fax: (409) 762-] 749
CER.TFE~D r:\Fi! _K ,L\CCC,J))TiJ ,~iS
Independent Auditors' Report
To the Honorable Mayor and Members
of the City Council
City of La Porte, Texas
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information of City of
La Porte, Texas (the "City"), as of and for the year ended September 30, 2005, which collectively
comprise the City's basic financial statements as listed in the table of contents. These fmancial
statements are the responsibility of the City's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
Op1ll1ons.
In our opinion, the fmancial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund and the aggregate remaining fund information of the City of La Porte, Texas, as of September
30, 2005, and the respective changes in fmancial position and cash flows, where applicable, thereof
for the year then ended in conformity with accounting principles generally accepted in the United
States of America
1\1ElvlBEPS AI\1ERIC/\.'< Il,STITUTE OF CERTIFIED PUBL.lC ACCOUI-':TANTS, TEXA.S SOCIETY OF CERTIFIED PUBL.lC~CCOUNTANTS,
CPA ASSOCL"TES INTEFX"TIONAL. INC VI'TTH ASSOCl'.TED OffiCES IN PRINCIPAL D.S AND Il\'TET'~"ATJON.L.LC]TlES
15
To the Honorable Mayor and Members
of the City Council
City of La Porte, Texas
Page 2 of2
In accordance with Government Auditing Standards, we have issued our report dated December 30,
2005, on our consideration of the City's internal control over financial reporting and on our tests of
its compliance with certain provisions or laws, regulations, contracts and grants. That report, which
has been issued separately from this document, is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this report
in considering the results of our audit.
The Management's Discussion and Analysis on pages 17 through 23, budgetary comparison
information on pages 74 through 75 and Required Pension System Supplementary Information on
page 73 are not required parts of the basic financial statements but are supplementary information
required by accounting principles generally accepted in the United States of America We have
applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory section, combining and
individual fund statements and schedules and statistical tables are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The combining and
individual fund statements and schedules have been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole. The introductory section and
statistical tables have not been subjected to the auditing procedures applied in the audit of the basic
fmancial statements and, accordingly, we express no opinion on them.
~ J.fp?~Ji'tI!?C
December 30, 2005
Houston, Texas
16
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2006
As management of the City of La Porte, we offer readers of the City's financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2006. We
encourage readers to consider the information presented here in conjunction with additional information that we
have furnished in our letter of transmittal, which can be found on pages 3-8 of this report.
FINANCIAL HIGHLIGHTS
. The assets of the City of La Porte exceeded its liabilities at the close of the most recent fiscal year by
$90,229,405 (net assets). Of this amount $22,613,946 (unrestricted net assets) may be used to meet
the government's ongoing obligations to citizens and creditors in accordance with the City's fund
designation and fiscal policies and working capital requirements.
. The government's total net assets increased by $3,961,264.
. As of the close of the current fiscal year, the City of La Porte's governmental funds reported combined
ending fund balances of $37,296,935. Of this amount, $34,743,121 (91%) is unreserved and available
for use within the City's designation and policies and working capital requirements.
. At the end of the current fiscal year, unreserved fund balance for the general fund was $10,882,101
approximately (42%) of the total general fund expenditures.
OVERVIEW OF THE FINANCIAL 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 30,2006
Fund financial statements - A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into two categories - governmental funds and
proprietary funds.
Governmental funds - Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on current sources and uses of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near-term financing decisions. Both the governmental
funds balance sheet and the governmental fund statements of revenues, expenditures and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The City maintains 16 governmental funds. Information is presented separately in the Governmental Fund
Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund
Balances for the General, 2005 General Obligation Bond and Section 4B Sales Tax Fund, all of which are
considered to be major funds. Data from the other 13 governmental funds are combined into a single,
aggregated presentation called non-major. Individual fund data for each of these non-major governmental funds
is provided in the form of combining statements elsewhere in this report.
The basic governmental fund financial statements can be found on pages 27-36 of this report.
Proprietary funds - The City maintains two types of proprietary funds. Proprietary funds are used to report the
same functions presented as business-type activities in the government-wide financial statements. The City
uses proprietary funds to account for its utilities, airport, water authority, convention center and golf course.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the
City's various functions. The City uses its internal service funds to account for its motor pool services,
technology services and Insurance Fund. Because these services predominantly benefit governmental rather
than business-type functions, they have been included within governmental activities in the government-wide
financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in
more detail. The proprietary fund financial statements provide separate information for the Utility and La Porte
Area Water Authority, Airport, Bay Forest Golf Course and Sylvan Beach Convention. All internal service funds
are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund
data for the internal service funds is provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 38-43 of this report.
Notes to the Financial Statements - The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the
financial statements can be found on pages 45-74 of this report.
18
CiTY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2006
Other Information - In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City's progress in funding its obligation to
provide pension benefits to its employees. Required supplementary information can be found on pages 75-78
of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds and internal
service funds are presented immediately following the required supplementary information for the general fund.
Combining fund statements and schedules can be found on pages 84-104 of this report.
GOVERNMENT-WIDE FINANCIAL ANAL YS/S
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In
the case of the City of La Porte, assets exceeded liabilities by $90,229,405 at the close of the fiscal year.
By far the largest portion of the City's net assets (65%) reflects its investment in capital assets (e.g., land,
buildings, machinery, equipment, improvements, construction in progress and infrastructure), less any related
debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City's
investment in its capital assets is reported net of related debt, it should be noted that the resources needed to
repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
City of La Porte's Net Assets
Governmental Business-Type
Activities Activities Total
2006 2005 2006 2005 2006 2005
Current and other assets $ 52,030,444 $ 43,543,568 $ 8,234,088 $ 7,559,518 $ 60,264,532 $ 51,103,086
Capital assets 45,974,337 46,416,520 38,697,136 33,734,685 84,671,473 80,151,205
Total Assets 98,004,781 89,960,088 46,931,224 41,294,203 144,936,005 131,254,291
Long term liabilities 36,734,566 31,157,332 9,444,485 7,498,569 46,179,051 38,655,901
other liabilities 5,545,899 3,857,929 2,846,688 2,533,691 8,392,587 6,391,620
Total Liabilities 42,280,465 35,015,261 12,291,173 10,032,260 54,571,638 45,047,521
Net Assets:
Invested in capital assets,
net of related debt 28,424,346 28,933,050 29,642,136 26,589,684 58,066,482 55,522,734
Restricted 7,690,387 6,642,077 2,185,791 3,407,445 9,876,178 10,049,522
Unrestricted 19,269,532 19,369,700 2,812,123 1,264,814 22,081,655 20,634,514
Total Net Assets $ 55,384,265 $ 54,944,827 $ 34,640,048 $ 31,261,943 $ 90,024,313 $ 86,206,770
An additional portion of the City's net assets $9,548,978 (11 %) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets of $22,613,946 (25%)
may be used to meet the government's ongoing obligations to citizens and creditors.
As of September 30, 2006, the City is able to report positive balances in all three categories of net assets, both
for the government as a whole, as well as for its separate categories - governmental and business-type
activities.
19
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2006
Analysis of the City's Operations - the following table provides a summary of the City's operations for the
year ended September 30, 2006, with comparative totals for year ended September 30, 2005. Governmental
activities decreased the City of La Porte's net assets by $246,363. Business-type activities increased the City's
net assets by $3,378,104.
City of La Porte's Changes in Net Assets
Governmental Business-Type
Activities Activities Total
2006 2005 2006 2005 2006 2005
Revenues:
Program Revenues:
Charges for SeIVices $ 4,535.854 $ 4,083.297 $ 9.435,426 $ 8.254.116 $ 13,971,280 $ 12.337.413
Operating grants and contributions 1,106,597 2.639,934 1 ,106,597 2,639.934
General revenues:
Property taxes. levied for general purposes 10.535,316 10,192,599 10,535.316 10,192.599
Property taxes, levied for debt service 1,661,801 1,623,095 1.661,801 1.623,095
Industrial paymems 7.659.591 6,991.926 7,659,591 6,991.926
Franchise taxes 1,986,698 1,885,801 1,986.698 1.885,801
Sales tax 4.067,767 3.459,979 4,067,767 3.459,979
Unrestricted investment earnings 1.874.828 720.137 300.099 165.162 2.174.927 885.299
Miscellaneous 946,873 753,595 694,507 827.183 1,641.380 1,580,778
Gain Ooss) on sale/retirement of capital assets 103.594 (16,083) (16,083) 103,594
Total revenues $ 34.375,325 32.453.957 10,413.949 9.246,461 44.789,274 41.700.418
Expenses:
General Government 7.889.325 7.411.122 7.889,325 7.411.122
Public Safety 11,603,287 10,367,759 11.603,287 10,367,759
Public Works 4.550,504 5.164,855 4.550,504 5,164,855
Health and Sanitation 1.862,368 1.887,204 1.862,368 1 ,887.204
Culture and Recreation 3.579,917 3,717,791 3,579,917 3,717,791
Interest on Long-term debt 1,226.231 863.818 1.226,231 863.818
Water Services 6,743,463 6,477.962 6,743,463 6.477,962
Sewer Services 1,894,415 1.819,756 1.894,415 1.819,756
Airport 122.548 157,186 122.548 157,186
Bay Forest Golf Course 1,285,121 1.242,613 1,285,121 1,242,613
Sylvan Beach Convention Center 214.552 211.682 214,552 211,682
Total Expenses 30,711.632 29,412,549 10,260,099 9,909,199 40,971,731 39,321,748
Change in net assets before transfers 3,663.693 3,041,408 153.850 (662,738) 3,817,543 2,378,670
Transfers (3,910,056) 381,625 3,224,254 (381,625) (685,802)
Change in net assets (246.363) 3.423,033 3,378,104 (1,044,363) 3.131,741 2,378,670
Net assets - beginning 55.630.628 51.521,794 31,261,944 32,306,306 86.892,572 83.828,100
Net assets - ending $ 55,384,265 $ 54,944,827 $ 34,640,048 $ 31,261.943 $ 90,024,313 $ 86,206}70
20
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2006
FINANCIAL ANAL YS/S OF THE GOVERNMENT'S FUNDS
Governmental funds - The focus of the City of La Porte's governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of La Porte's governmental funds reported combined ending
fund balances of $37,296,935. Approximately 95% of this total amount ($34,077,006) constitutes unreserved
fund balance. The remainder of the fund balance is reserved to indicate that it is not available for new spending
because it has already been committed 1) to pay for encumbrances ($140,055), 2) to provide for inventories
($72,109), 3) to pay for debt service ($1,813,887), 4) to provide for municipal court building security ($106,652),
5) to provide for municipal court technology ($73J24), 6) to provide for park zone ($80,902) and 7) to provide
for confiscated funds ($116,391).
In the general fund, the City budgeted for a decrease in the fund balance of $213,070. Due to actual expenses
being less than budgeted, the actual fund balance increase for fiscal year 2006 was $1,963,031. The 2005
General Obligation Fund balance decreased by $604,347 due to the expenditure of bond proceeds. Other
Governmental fund balances increased in 2006 by $3,162,306 due to increased revenues and other sources of
financing. The Section 4B Fund balance increased by $627,110 due to additional revenues.
Proprietary funds - The City's proprietary fund statements provide the same type of information found in the
government-wide financial statements, but in more detail.
Unrestricted net assets of the respective proprietary funds are Utility - $1,337,241, Airport $338,580, La Porte
Area Water Authority - $1,338,767, Sylvan Beach Convention Center -$134,357 and Bay Forest Golf Course-
$(306,824)The change (decrease) in net assets of the proprietary funds in 2006 was as follows: Utility-
$4,177,504, Airport -$(74,748), La Porte Area Water Authority - $123,645, Sylvan Beach Convention Center--
$14,539), and Bay Forest Golf Course -$(147,958).
General Fund Budgetary Highlights - The City made revisions to the original appropriations approved by the
City Council. Overall these changes resulted in an increase from the original budget of 1 % or $210,076.
Variances noted in the general fund are due to City Council appropriating additional capital projects, increased
spending for public safety projects and salary savings.
CAPITAL ASSETS AND DEBT ADMINfSTRA TION
Capital Assets - The City of La Porte's investment in capital assets for its governmental and business-type
activities as of September 30,2006 amounts to $84,445,230 (net of accumulated depreciation). This investment
in capital assets includes land, building, equipment, improvements, infrastructure and construction in progress.
Major capital asset events during the current fiscal year included the following:
. Construction in progress Fire Station Number 2 $1.2 million.
. Construction in progress Police Station $3.1 million.
. Automated Meter Reading $2.3 million.
21
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2006
Capital Assets at Year-end
Net of Accumulated Depreciation
Land
Buildings
Equipment
Improvements
Infrastructure
Construction in Progress
Total
Governmental
Activities
2006
$ 7,685,517
7,776,721
5,237,286
2,889,273
12,277,269
9,983,973
$ 45,850,038
Business-type
Activities
2006
$ 2,350,478
88,790
86,637
33,430,326
2,638,961
$ 38,595,192
Total
$ 10,035,995
7,865,511
5,323,923
36,319,599
12,277,269
12,622,934
$ 84,445,230
Additional information of the City of La Porte's capital assets can be found in Note 4 on pages 58-60 of this
report.
Debt Administration - At the end of the current fiscal year, the City of La Porte had bonded debt payable of
$43,200,000. Of this amount, $34,145,000 comprises bonded debt backed by the full faith and credit of the
government and $9,055,000 represents bonds secured solely by water and sewer revenues.
Outstanding Debt at Year End
Bonds Payable
General Obligations
Revenue Bonds Payable
Certificate of Obligations
Total
Governmental
Activities
2006
$ 17,740,000
16,405,000
$ 34,145,000
Business-type
Activities
2006
$
6,430,000
2,625,000
$ 9,055,000
Totals
$ 17,740,000
6,430,000
19,030,000
$ 43,200,000
The City of La Porte maintains an "Aa3", "A+", "M" by Moody's, Standard and Poor's and Fitch respectively for
general obligation debt. The revenue bonds have been rated" A" by all three of these rating agencies.
Additional information on the City of La Porte's long-term debt can be found in Note 5 on pages 61-65 of this
report.
22
CiTY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2006
ECONOMIC FACTS AND NEXT YEAR'S BUDGETS AND RA TES
The unemployment rate for the Houston metropolitan area is currently 4.5 percent, which is a decrease from a
rate of 6.1 percent a year ago. This compares identical to the state's average unemployment rate of 4.7 percent
which is comparable to the national average rate of 4.4 percent. The City's budgets for all funds have benefited
from a strong and expanding economy from the past several years, which is anticipated to continue in the
upcoming Fiscal Year. The City is projected to benefit from growth in the tax base due to increased valuations
and new construction. Total assessed property value for all residential and commercial property in the City of
La Porte exceeded $2.1 billion for fiscal year 2006 which is 10 percent higher than last year. The trend for total
assessed property values has been steadily increasing each year with an average annual increase of 16
percent over the past 5 years. Sales tax receipts have grown 16% this fiscal year due to an increase in
economic activity. This revenue source is the most volatile and subject to decline if an economic slowdown
occurs.
Assessed Property Valuations
(in billions)
Sales Tax Collections
(in millions)
1.7
2.5
2
1.5
2.1 ',.1' .., . .'
2/r
/L--
1.9/'
2002 2003 2004 2005 2006
2002
2003
2004
2005
2006
REQUEST FOR INFORMA nON
This financial report is designed to provide our citizens, customers and creditors a general overview of the City's
finances. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to the Interim Director of Finance, 604 West Fairmont Parkway, La Porte,
Texas, 77571.
23
24
BASIC FINANCIAL STATEMENTS
25
26
CITY OF LA PORTE, TEXAS
Statement of Net Assets
September 30,2006
Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 18,935,758 $ 1,135,241 $ 20,070,999
Investments 27,196,952 4,455,769 31,652,721
Receivables, net of
allowance for uncollectibles
Accounts receivable 4,485,118 1,156,952 5,642,070
Taxes receivable 761,592 761,592
Due from other governments 4,716 4,716
Accrued interest receivable 183,367 26,289 209,656
Deferred Issuance Costs 346,635 346,635
Materials and supplies inventories at cost 116,306 4,540 120,846
Restricted Assets:
Cash and cash equivalents restricted
for customer service deposits 505,287 505,287
Investments restricted for debt service 125,000 125,000
Other 825,010 825,010
Capital assets:
Land 7,685,517 2,350,478 10,035,995
Buildings and improvements 17,732,228 1,166,840 18,899,068
Improvements other than buildings 7,662,126 69,181,385 76,843,511
Infrastructure 26,873,816 26,873,816
Machinery and equipment 13,306,111 429,183 13,735,294
Construction in progress 9,983,973 2,638,961 12,622,934
Accumulated depreciation (37,269,434) (37,069,711) (74,339,145)
Total assets 98,004,781 46,931,224 144,936,005
LIABILITIES
Accounts payable 4,762,821 2,097,523 6,860,344
Accrued salaries payable 296,234 52,100 348,334
Interest payable 88,945 88,945
Unearned revenue 86,557 87,150 173,707
Other current liabilities 5,930 5,930
Premium on Issuance 293,388 293,388
Accrued interest payable 12,728 76,330 89,058
Customer deposits 527,655 527,655
Noncurrent liabilities :
Due within one year 1,235,000 585,000 1,820,000
Due in more than one year 35,499,566 8,859,485 44,359,051
Total liabilities 42,280,465 12,291,173 54,571,638
NET ASSETS
Invested in capital assets, net of related debt 28,424,346 29,642,136 58,066,482
Restricted for.
Debt service 1,838,370 2,185,791 4,024,161
Grants and state programs 6,210,617 6,210,617
Unrestricted 19,269,531 2,812,123 22,081,654
Total net assets $ 55,384,264 $ 34,640,048 $ 90,024,312
See accompanying notes to financial statements.
27
CITY OF LA PORTE, TEXAS
Statement of Activities
For The Year Ended September 30, 2006
Program Activities
Governmental activities:
General Government
Public Safety
Public Works
Health & Sanitation
Culture and recreation
Interest on Long Term Debt
Total governmental activities
Expenses
Program Revenues
Fees, Fines and Operating
Charges for Grants and
Services Contributions
$ 7,889,325
11,603,287
4,550,504
1,862,368
3,579,917
1,226,231
30,711,632
$ 1,002,267 $
1,333,005 935,588
1,770,611
429,971 95,820
4,535,854 1,031,408
Business-type activities:
Water Services 6,743,463 5,438,932
Sewer Services 1,894,415 2,842,495
Airport 122,548 35,624
Golf Course 1,285,121 955,867
Sylvan Beach Convention Ctr 214,552 162,508
Total business-type activities 10,260,099 9,435,426
Total government $ 40,971,731 $ 13,971,280 $ 1,031,408
General revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Industrial payments
Franchise taxes
Public service taxes
Investment earnings
Miscellaneous
Gain (Loss) on sale of assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets-beginning
Net assets---ending
See accompanying notes to basic financial statements.
28
Net (Expenses) Revenues
and Changes in Net Assets
Governmental
Activities
Business-type
Activities
Total
$ (6,887,058)
(9,334,694)
(4,550,504)
(91,757)
(3,054,126)
(1,226,231)
(25,144,370)
$
$ (6,887,058)
(9,334,694)
(4,550,504)
(91,757)
(3,054,126)
(1,226,231)
(25,144,370)
(1,304,531 ) (1,304,531)
948,080 948,080
(86,924) (86,924)
(329,254) (329,254 )
(52,044) (52,044)
(824,673) (824,673)
$ (25,144,370) $ (824,673) $ (25,969,043)
10,535,316 10,535,316
1,661,801 1,661,801
7,659,591 7,659,591
1,986,698 1,986,698
4,067,767 4,067,767
1,874,828 300,099 2,174,927
946,873 694,507 1,641,380
(16,083) (16,083)
(3,910,056) 3,224,256 (685,800)
24,898,006 4,202,779 29,025,597
(246,364) 3,378,106 3,056,554
55,630,628 31,261,944 86,892,572
$ 55,384,264 $ 34,640,050 $ 89,949,126
29
CiTY OF LA PORTE, TEXAS
Balance Sheet
Governmental Funds
September 30, 2006
2005 General
Section 4B Obligation
General Sales Tax Bonds
ASSETS
Cash and cash equivalents $ 7,507,305 $ 2,516,486 $ 97,152
Investments 5,287,784 1,772,321 7,598,390
Receivables, net of allowance for
uncollectibles:
Accounts receivable 4,126,733
Taxes receivable 647,980
Due from other governments
Grant receivable
Other accounts receivables 229,385 918
Accrued interest receivable 74,781 21,224 573
Materials and supplies inventories, at cost 70,126
Total assets 17,714,709 4,539,416 7,697,033
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 2,679,812 651,832
Accrued salaries payable 280,331
Due to other funds
Retainage payable
Unearned revenue 3,538,917
Accrued employee separation pay 100,000
Total liabilities 6,599,060 651,832
Fund balances:
Reserved for:
Inventories 72,109
Encumbrances 140,055
Municipal Court Building Security
Municipal Court Technology Fee
Park Zone
Confiscated funds
Debt service
Unreserved, Designated for capital projects 51,084
UnreservedlUndesignated 10,852,412 4,539,415 7,045,200
Unreserved, reported in non major:
Special revenue funds
Capital projects funds
Total fund balances 11,115,660 4,539,415 7,045,200
Total liabilities and fund balances $ 17,714,720 $ 4,539,415 $ 7,697,032
See accompanying notes to basic financial statements.
30
Other Total
Governmental Governmental
Funds Funds
$ 5,794,581 $ 15,915,524
10,319,398 24,977,893
4,126,733
108,386 756,366
4,716 4,716
46,290 276,593
56,059 152,637
70,126
16,329,430 46,280,588
881,195 4,212,839
2,319 282,650
168 168
163,282 3,702,199
100,000
1,046,964 8,297,856
72,109
140,055
106,652 106,652
73,724 73,724
153,006 153,006
119,137 119,137
1,813,887 1,813,887
51,084
22,437,027
1,247,381 1,247,381
11,577,618 11,577,618
15,091,405 37,791,680
$ 16,138,369 46,089,536
31
32
CITY OF LA PORTE, TEXAS
Reconciliation of the Governmental Funds
Balance Sheet to Statement of Net Assets
September 30, 2006
Amounts reported for governmental activities in the statement of net
assets are different because:
Total fund balances - total governmental funds
Capital assets used in govemmental activities are not current financial
resources and, therefore, are not reported in this fund financial
statement, but are reported in the governmental activities of the
statement of net assets.
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds
Unearned Revenues
Interest payable on long-term debt does not require current financial
resources. Therefore, interest payable is not recorded as a liability in
governmental funds balance sheets.
The assets and liabilities of certain internal service funds are not
included in the fund financial statement, but are included in the
governmental activities of the statement of net assets.
Some liabilities, (such as notes payable, capital lease contract
payable, long-term compensated absences and bonds payable), are
not due and payable in the current period and are not included in the
fund financial statement, but are included in the governmental activities
of the statement of net assets:
Bonds Payable
Premium on Issuance
Compensated Absences Payable
Bond Issuance Costs
Net assets of governmental activities
See accompanying notes to basic financial statements.
33
$ 37,791,680
41,546,004
3,617,748
(88,945)
9,126,736
(34,145,000)
(293,388)
(2,368,201 )
346,635
$ 55,533,269
CITY OF LA PORTE, TEXAS
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For The Year Ended September 30, 2006
2005 General
Section 4B Obligation
General Sales Tax Bonds
REVENUES
Property taxes $ 10,454,157 $ $
Franchise taxes 1,986,698
Sales taxes 2,495,547 1,245,774
Donations
Industrial payments 7,470,700
Harris County Joint Venture
Other taxes 69,310
Licenses and permits 683,284
Fines and forfeits 848,232
Charges for services 3,852,570
Intergovernmental 8,489
Interest 652,700 121,396 303,628
Miscellaneous 24,778
Total revenues 28,546,465 1,367,170 303,628
EXPENDITURES
Current:
General Government 6,047,422
Public Safety 11,071,829
Public Works 2,360,073
Health and Sanitation 1,813,812
Culture and Recreation 3,010,725
Debt service:
Principal retirements
Interest and fiscal charges
Capital outlay 3,707,975
Total expenditures 24,303,861 3,707,975
Excess (deficiency) of revenues over
expenditures 4,242,604 1,367,170 (3,404,347)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of long term debt
Transfers in 647,449 2,800,000
Transfers out (3,045,803) (740,060)
Proceeds from sale of Assets 90,083
Total other financing sources (uses) (2,308,271) (740,060) 2,800,000
Net change in fund balances 1,934,333 627,110 (604,347)
Fund balances-beginning 9,181,327 3,912,305 7,649,547
Fund balances-ending $ 11,115,660 $ 4,539,415 $ 7,045,200
See accompanying notes to basic financial statements.
34
Other Total
Governmental Governmental
Funds Funds
$ 1,708,484 $ 12,162,641
1,986,698
3,741,321
7,470,700
257,194 326,504
683,284
848,232
35,000 3,887,570
1,165,892 1,174,381
631,439 1,709,163
138,602 163,380
3,936,611 34,153,874
1,189,343 7,236,765
11,071,829
2,360,073
1,813,812
3,010,725
1,195,000 1,195,000
1,374,314 1,374,314
2,842,334 6,550,309
6,600,991 34,612,827
(2,664,380) (458,953)
6,965,000 6,965,000.00
2,608,425 6,055,874
(3,746,739) (7,532,602)
90,083
5,826,686 5,578,355
3,162,306 5,119,402
11,807,991 32,551,170
$ 14,970,297 $ 37,670,572
35
CITY OF LA PORTE, TEXAS
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
For The Year Ended September 30,2006
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balances-total governmental funds:
Governmental funds report outlays for capital assets as expenditures because
such outlays use current financial resources. In contrast, the statement of
activities reports only a portion of the outlay as expense. The outlay is allocated
over the assets' estimated useful lives as depreciation expense for the period.
This is the amount by which capital outlays $8,393,314 exceeded depreciation
$2,310,704 and losses from the disposition of capital assets in the current period.
Governmental funds do not present revenues that are not available to pay
current obligations. In contrast, such revenues are reported in the statement
of activities when earned.
Governmental funds report bond proceeds as current financial resources. In
contrast, the statement of activities treats such issuance of debt as a liability.
Governmental funds report repayment of bond principal as an expenditure. In
contrast, the statement of activities treats such repayments as a reduction in
long-term liabilities. This is the amount by which proceeds exceeded
repayments.
Some expenses reported in the statement of activities do not require the use of
current financial resources and these are not reported as expenditures in
governmental funds:
Accrued interest not reflected in governmental funds
Additional compensated absences not reflected in governmental funds
Internal service funds are used by management to charge the costs of certain
activities, such as fleet maintenance and information technology, to individual
funds. The net revenue (expense) of the internal service funds is reported with
governmental activities.
Change in net assets of governmental activities
See accompanying notes to basic financial statements.
36
$ 5,119,402
(942,409)
246,841
(5,768,649)
(38,129)
59,199
1,077,387
$
(246,358)
37
CITY OF LA PORTE, TEXAS
Statement of Net Assets
Proprietary Funds
September 30,2006
Business-type Activities -
Enterprise Funds
Other
La Porte Area Proprietary
Utility Water Authority Funds
ASSETS
Current assets:
Cash and cash equivalents $ $ 833,596 $ 301,645
Investments 3,803,599 407,428 244,742
Receivables, net of
allowance for un collectibles 934,103 169,605 53,244
Accrued interest receivable 10,458 12,351 3,480
Miscellaneous receivables
Material and supplies inventories, at cost 4,540
Restricted cash and cash equivalents for:
Customer service deposits 459,426 45,861
Current debt service 125,000
Investments restricted for:
Current debt service 825,010
Total current assets 5,337,126 2,247,990 648,972
Noncurrent assets:
Capital assets:
Land 266,009 2,084,469
Buildings and improvements 51,730 1,115,110
Improvements other than buildings 47,884,819 14,719,440 6,577,126
Vehicles and equipment 319,777 6,130 103,276
Construction in progress 2,519,056 119,905
Less accumulated depreciation (26,794,649) (5,420,933) (4,854,129)
Total noncurrent assets ,24,246,742 9,304,637 5,145,757
Total assets 29,583,868 11 ;552,627 5,794,729
LIABILITIES
Current liabilities:
Accounts payable 1 ,794,768 148,523 154,232
Accrued salaries payable 36,712 15,388
Unearned Revenue 87,150
Other current liabilities 5,930
Accrued interest payable 63,250 13,080
Payable from restricted assets:
Current portion of revenue bonds 125,000 460,000
Customer deposits 459,526 68,129
Total current liabilities 2,479,256 621,603 330,829
Noncurrent liabilities:
Revenue bonds, net of current portion 2,905,000 5,595,000
Accrued separation pay 207,459 152,026
Total noncurrent liabilities 3,112,459 5,595,000 152,026
Total liabilities 5,591,715 6,216,603 482,855
NET ASSETS
Invested in capital assets, net of related debt 21,216,742 3,249,637 5,145,757
Restricted for debt service 1,438,171 747,620
Unrestricted (deficit) 1,337,241 1,338,767 166,113
Total net assets $ 23,992,154 $ 5,336,024 $ 5,311,870
See accompanying notes to basic financial statements.
38
Governmental
Activities -
Internal
Totals Service Funds
$ 1,135,241 $ 3,078,666
4,455,769 2,160,627
1,156,952
26,289 30,730
81 ,792
4,540 46,180
505,287
125,000
825,010
8,234,088 5,397,995
2,350,478
1,166,840
69,181,385
429,183 11,726,247
2,638,961
(37,069,711) (7,297,914)
38,697,136 4,428,333
46,931,224 9,826,328
2,097,523 560,225
52,100 15,903
87,150 2,106
5,930
76,330
585,000
527,655
3,431,688 578,234
8,500,000
359,485 121,365
8,859,485 121,365
12,291,173 699,599
29,612,136 4,428,333
2,185,791
2,842,121 4,698,403
$ 34,640,048 $ 9,126,736
39
CITY OF LA PORTE, TEXAS
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For The Year Ended September 30, 2006
Business-type Activities -
Enterprise Funds
Other
La Porte Area Proprietary
Utility Water Authority Funds
Operating revenues:
User fees $ 7,207,376 $ 1,079,126 $1,160,634
Operating expenses:
Personal services 2,369,805 944,256
Supplies 200,153 42 135,702
Other services and charges 2,819,825 1,033,491 271,404
Depreciation 1,446,996 441,913 270,859
Total operating expenses 6,836,779 1,475,446 1,622,221
Operating income (loss) 370,597 (396,320) (461,587)
Nonoperating revenues (expenses):
Interest income 230,640 44,081 25,378
Interest expense and fiscal charges (175,495) (325,653)
Gain (loss) on sale of equipment (7,279) (8,804)
Total nonoperating revenue (expenses) 47,866 (281,572) 16,574
Income (loss) before contributions
and transfers 418,463 (677,892) (445,013)
Capital contributions 3,493,771 858,292
Transfers in 3,084,361 241,000
Transfers out (3,504,891 ) (56,755) (33,232)
Change in net assets 3,491 J04 123,645 (237,245)
Total net assets-beginning 20,500,450 5,212,379 5,549,115
Total net assets-€nding $ 23,992,154 $ 5,336,024 $ 5,311,870
See accompanying notes to basic financial statements.
40
Governmental
Activities -
Internal
Totals Service Funds
$ 9,447,136 $ 5,868,224
3,314,061 1,361,286
335,897 320,961
4,124,720 4,100,247
2,159,768 869,628
9,934,446 6,652,122
(487,310) (783,898)
300,099 165,671
(501,148)
(16,083) (50,631 )
(217,132) 115,040
(704,442) (668,858)
4,352,063
3,325,361 1,949,442
(3,594,878) (203,197)
3,378,104 1,077,387
31,261,944 8,049,349
$ 34,640,048 $ 9,126,736
41
CiTY OF LA PORTE, TEXAS
Statement of Cash Flows
Proprietary Funds
For The Year Ended September 30, 2006
Business-type Activities -
Enterprise Funds
Other
La Porte Area Proprietary
Utility Water Authority Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from user fees $ 6,932,518 $ 1,073,420 $ 1,184,726
Cash payments to suppliers (1,748,678) (962,716) (419,041 )
Cash payments for personal services (2,379,414) (933,806)
Net cash provided by operating activities 2,804,426 110,704 (168,121)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 3,084,361 241 ,000
Transfers to other funds (3,504,891) (56,755) (33,232)
Net cash from noncapital financing activies (420,530) (56,755) 207,768
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIViTIES
Payments received from participants for debt service 771,718
Payments received from participants for capital recovery 86,574
Payments for capital acquisitions (4,274,732)
Proceeds from sale of assets
Proceeds from the sale of bonds 2,625,000
Principal payments on revenue bonds (240,000) (445,000)
Interest paid on debt (113,461) (326,719)
Net cash (used) by capital and related financing activies (2,003,193) 86,573
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 242,466 38,943 23,919
Net Investments (purchased) sold (59,511 ) 1,022,404 53,579
Net cash provided by investing activities 182,955 1,061,347 77,498
Net increase (decrease) in cash and cash equivalents 563,658 1,201,869 117,145
Balances-beginning of the year 706,568 456,738 230,360
Balances-end of the year $ 1,270,226 $ 1,658,607 $ 347,505
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $ 370,597 $ (396,320) $ (461,587)
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation expense 1,446,996 441,913 270,859
(Increase) decrease in accounts receivable (297,816) (5,706) 49,125
(Increase) decrease in inventories
Increase (decrease) in accrued salaries payable (5,194) 119
Increase (decrease) in accounts payable 1,271,300 70,817 1,023
Increase (decrease) in other current liabilities (60,361 )
Increase (decrease) in customer utility deposits 22,958 22,370
Increase (decrease) in accrued employee separation (4,415) 1 0,331
Total adjustments 2,433,829 507,024 293,466
Net cash provided by operating activities $ 2,804,426 $ 110,704 $ (168,121)
Reconciliation oftotal cash and cash investments:
Current Assets - cash and cash equivalents $ $ 833,596 $ 301,645
Restricted Assets - cash and cash equivalents:
Customer Deposits 459,426
Current Debt Service 125,000 45,861
Total cash and cash equivalents $ 584,426 $ 833,596 $ 347,506
42
43
44
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
1. Summary of significant accounting policies
A. General Statement
The City of La Porte, Texas (the "City"), was incorporated on August 10, 1892, and operates under a
"Council _ Manager" form of government and provides the following services as authorized by its charter:
public safety, development services, public health and welfare, culture and recreation and waterworks.
The accounting and reporting policies of the City relating to the funds included in the accompanying basic
financial statements conform to U.S. Generally Accepted Accounting Principles (GAAP) applicable to state
and local governments which include those principles prescribed by the Governmental Accounting
Standards Board (GASB), the American Institute of Certified Public Accountants and the Financial
Accounting Standards Board. The more significant accounting policies of the City are described below.
B. Financial Reportinq Entity
The City's basic financial statements include the accounts of all City operations. The City, with its elected
governing body of mayor and eight council members, is considered a primary government. As required by
generally accepted accounting principles, the basic financial statements include the City and its component
units, entities for which the government is considered to be financially accountable. Blended component
units, although legally separate entities, are, in substance, part of the government's operations. All
component units have been included as blended component units because of the significance of their
operational and financial relationships with the City.
The La Porte Area Water Authority (the "Authority") is governed by a five-member board appointed by the
City Council. Although it is a legally separate entity, the Authority provides services almost exclusively for
the City's water operations, and is in substance a part of the City's primary operations. The Authority was
created by the City to finance the operations involved in obtaining surface water supplies and converting
these supplies to potable water. This water is sold primarily to the City of La Porte (86%) with the remainder
being sold to other neighboring political subdivisions. The operations of the Authority are reported as a
proprietary fund type.
The Tax Increment Reinvestment Zone One (the "Zone") is governed by a nine-member board appointed by
the City Council. The Zone provides benefits exclusively for the City through reinvestment financing of ad
valorem taxes, which are utilized for capital improvements for the City of La Porte. The Zone is presented
as a governmental fund type.
The Section 4B Sales Tax corporation provides services that exclusively benefit the City of La Porte and is
governed by a seven-member board appointed by City Council. The Section 4B Sales Tax Corporation is
presented as a governmental fund type.
Complete financial statements for each of the individual component units may be obtained through the City
of La Porte.
C. Basis of Presentation
Government Wide Statements:
The government-wide financial statements (Le. the statement of net assets and the statement activities)
report information on all of the nonfiduciary activities of the City, including the component units. The effect
of interfund activity has been removed from these statements. Governmental activities, which are normally
supported by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely significantly on fees and charges for support.
45
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
1. Summary of significant accounting policies - Continued
The statement of activities demonstrates the degree to which the direct expenses of a given program or
function is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
program or function. Program revenues include 1) charges to customers or applicants who purchase, use
or directly benefit from goods, services or privileges provided by a given program or function and 2)
operating or capital grants and contributions that are restricted to meeting the operational or capital
requirements of a particular program or function. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
The accounts of the City are organized on the basis of funds each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as
appropriate. Government resources are allocated to and accounted for in individual funds based on the
purposes for which they are to be spent and the means by which spending activities are controlled.
Individual funds and account groups summarized in the accompanying financial statements are classified
below.
Fund Financial Statements:
The City segregates transactions related to certain functions or activities in separate funds in order to aid
financial management and to demonstrate legal compliance. Separate statements are presented for
governmental and proprietary activities. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
Governmental funds are those through which most governmental functions typically are financed. The
measurement focus of governmental funds is on the sources, uses and balance of current financial
resources.
The City has presented the following major governmental funds:
(a) General Fund - is the main operating fund of the City. This fund is used to account for all financial
resources not accounted for in other funds. All general tax revenues and other receipts that are not
restricted by law or contractual agreement to some other fund are accounted for in this fund.
General operating expenditures, fixed charges and capital improvement costs that are not paid
through other funds are paid from the General Fund.
(b) Section 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.
(c) 2005 General Obligation Bond Fund - This fund is used to fund projects that benefit the City in
general. A specific project from this issue is the construction of the Police Facility.
46
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
1. Summary of significant accounting policies - Continued
Proprietary Funds are accounted for using the economic resources measurement focus and the accrual
basis of accounting. The accounting objectives are determinations of net income, financial position and
cash flow. All assets and liabilities are included on the Statement of Net Assets. Proprietary funds
distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary
fund's principal ongoing operations. Operating expenses for the proprietary funds include the cost of
personal and contractual services, supplies and depreciation on capital assets. All revenues and expenses
not meeting this definition are reported as non-operating revenues and expenses.
The City reports the following major proprietary funds:
(a) Utility Fund - is used to account for the provision of water and sewer services to the residents of the
City. All activities necessary to provide such services are accounted for in this fund, including, but
not limited to administration, operations and maintenance of the water and sewer system and billing
and collection activities. The fund also accounts for the accumulation of resources for, and the
payment of, long-term debt principal and interest for water and sewer debt. All costs are financed
through charges to utility customers with rates reviewed regularly and adjusted if necessary to
ensure integrity of the fund.
(b) La Porte Area Water Authority Fund - is used to account for revenues and expenses related to
obtaining raw surface water and converting it to potable water to be sold to La Porte and
neighboring cities.
Additionally, the City reports the Internal Service Funds which are used to account for the Motor Pool,
Technology and Insurance services provided to other departments of the City on a cost reimbursement
basis.
D. Measurement Focus and Basis of Accountinq
Measurement focus refers to what is being measured; basis of accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting
relates to the timing of the measurement made, regardless of the measurement focus applied.
The government-wide financial statements and fund financial statements for proprietary funds are reported
using the economic resources measurement focus and the accrual basis of accounting. The economic
resources measurement focus means all assets and liabilities (whether current or non-current) are included
on the statement of net assets. The operating statements present increases (revenues) and decreases
(expenses) in net total assets. Under the accrual basis of accounting, revenues are recognized when they
are earned. Expenses are recognized at the time the liability is incurred. Unbilled water and wastewater
utility service receivables are accrued as revenues and reflected in the financial statements.
47
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
1. Summary of significant accounting policies - Continued
Governmental fund financial statements are reported using the current financial resources measurement
focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized when susceptible to accrual; Le., when they become both
measurable and available. "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to be used to pay liabilities
of the current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the current fiscal period.
Most revenue sources are recorded as revenues when received in cash because they are generally not
measurable until actually received. The revenues susceptible to accrual are property and sales taxes,
franchise fees, interest income and intergovernmental revenues. A one-year availability period is used for
recognition of all other Governmental Fund revenues. Expenditures are recorded when the related fund
liability is incurred. However, debt service expenditures, as well as expenditures related to compensated
absences are recorded only when payment is due.
E. BudQetarv Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the general, special revenue funds and debt service funds. All annual
appropriations lapse at fiscal year-end. Project length financial plans are adopted for all capital projects
funds.
The City uses the following procedures in establishing the budgets reflected in the financial statements:
1. Prior to August, the City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing on the following October 1. The operating budget includes proposed expenditures
and the means of financing them.
2. A public hearing is conducted to obtain taxpayer comments.
3. Prior to September 30, the budget is legally enacted through passage of an ordinance.
4. The City Manager must approve changes within a fund, which is the legal level of control. City Council
approves changes between departments as well as amendments to the budget during the year as may
be required.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund and Proprietary Funds. Formal budgetary integration is not employed for the Debt
Service Fund and Capital Projects Funds because effective budgetary control is alternatively achieved
through bond indenture provisions and legally binding construction contracts, respectively.
6. The budget for the General Fund and Special Revenue Funds are adopted on a basis consistent with
GAAP. Budgets for the Proprietary Funds are utilized for planning, control and evaluation purposes.
They are adopted on a basis consistent with GAAP except that bond principal payments and fixed asset
acquisitions are treated as expenditures.
7. Budgeted amounts are amended by the City Council during the year. Individual amendments were not
material in relation to the original appropriations, which were amended.
Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting - under which purchase orders, contracts and other commitments for the
expenditure of resources are recorded to reserve that portion of the applicable appropriation - is utilized in
the governmental funds throughout the year. Encumbered amounts lapse at year-end. However,
encumbrances generally are reappropriated as part of the following year's budget.
48
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
1. Summary of significant accounting policies - Continued
F. Cash and Investments
Cash includes amounts in demand deposits, short-term investments, which mature within ninety days of the
fiscal year end, and various petty cash funds. The short-term investments are stated at cost or amortized
cost, which approximate fair value. The short-term investments consist of U.S. Treasury Bills and deposits
in the Texas Local Government Investment Pool (TexPool), the Local Government Investment Cooperative
(LOGIC) and Texas Short Term Asset Reserve Program (TexStar) all of which have the general
characteristics of a demand deposit account. For purpose of the statement of cash flows, Proprietary Fund
types consider temporary investments with a maturity of three months or less when purchased to be cash
equivalents.
in accordance with Statement No. 31, the City reports all investments at fair value, except for "money
market investments" and "2a7-like pools". Money market investments, which are short-term highly liquid
debt instruments that may include U.S. Treasury and agency obligations, are reported at amortized costs.
Investment positions in external investment pools that are operated in a manner consistent with the SEC's
Rule 2a7 of the Investment Company Act of 1940, such as TexPool, LOGIC and TexStar are reported using
the pools' share price.
G. Prepaid Items
Prepaid balances are for payments made by the City in the current year to provide services occurring in the
subsequent fiscal year, and the reserve for prepaid items has been recognized to signify that a portion of
fund balance is not available for other subsequent expenditures.
H. Receivables
Receivables as of year-end of the government's individual major and non-major funds and internal service
funds, including the applicable allowances for uncollectible accounts, are as follows:
49
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
Fund Taxes Grant Interest Other Accounts Total
General $ 1,228,119 $ - $ 74,781 $ $ 6,179,258 $ 7,482,158
Section 4b Sales Tax 21,224 229,385 250,609
Debt Service 321,954 10,438 332,392
Grant 2,643 41,981 44,624
Community Investment 3,864 3,864
Hotel/Motel Tax 3,610 3,610
T.1. R.Z. One 1,046 1,046
Capital Improvements 4,716 8,745 13,461
Transportation 6,505 6,505
1998 G.O. Bonds 6,546 6,546
2000 C.O. Bonds 157 157
2000 G.O. Bonds 6,543 6,543
2002 G.O. Bonds 2,550 2,550
2004 C.O. Bonds 3,151 2,157 5,308
2005 C.O. Bonds 2,152 2,152
2005 G.O. Bonds 573 918 1,491
2006 C.O. Bonds 103 103
2006 G.O. Bonds 158 158
Utility 10,458 968,734 979,192
Water Authority 12,351 169,605 181,956
Airport 1,972 2,771 4,743
Sylvan Beach 1,508 1,508
Golf Course 50,473 50,473
Motorpool 13,980 79,711 93,691
Technology 5,643 5,643
Insurance 11 , 1 07 2,081 13,188
Gross Receivables 1,550,073 4,716 209,656 276,593 7,452,633 9,493,671
Less: allowance for
uncollectibles (788,481) (2,087,157) (2,875,638)
Net total receivables $ 761,592 $4,716 $ 209,656 $ 276,593 $ 5,365,476 $ 6,618,033
50
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
1. Summary of significant accounting policies - Continued
Governmental funds reported unearned revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Revenue recognition is also deferred
in connection with resources that have been received, but not yet earned in the proprietary funds. At the
end of the current fiscal year, the various components of deferred revenue and unearned revenue reported
in the governmental and proprietary funds were as follows:
Unavailable Unearned Grant
General Debt Service Proprietary Revenue Total
Delinquent property taxes receivable $ 643,286 $ 108,386 $ $ $ 751,672
Charges for services and customer deposits 2,890,937 87,151 2,978,088
Grant Revenues 49,670 49,670
Total deferred I unearned revenue $ 3,534,223 $ 108,386 $ 87,151 $ 49,670 $ 3.779,430
I. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amount of assets and liabilities
and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues, expenditures, and expenses during the reporting period. Actual results may differ
from those estimates.
J. Indirect Expense Allocations
It is the policy of the City not to allocate indirect expenses to various functions in the Government-wide
Statement of Activities.
K. Restricted Assets
The City applies restricted resources when an expense is incurred for purposes for which both restricted
and unrestricted net assets are available.
L. Inventories
Inventories consist of material and supplies and are valued at cost (first-in, first-out). Inventories for all
funds consist of expendable supplies held for consumption and the cost thereof is recorded as an
expenditure at the time individual inventory items are issued. Reported inventories in the Governmental
Funds are offset by a fund balance reseNe, which indicates they are unavailable for appropriation even
though they are a component of net current assets.
M. Interfund Transactions
Transactions Between Funds
Transactions between funds that would be treated as revenues, expenditures or expenses if they involved
organizations external to the governmental unit are accounted for as revenues, expenditures or expenses in
the funds involved. Transactions, which constitute reimbursement to a fund for expenditures or expenses
initially made from that fund, which are properly attributable to another fund, are recorded as expenditures
or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is
reimbursed. Nonrecurring or non routine transfers of equity between funds are reported as additions to, or
reductions of, the fund balance of Governmental Funds. All other legally authorized transfers are treated as
transfers and are included in the results of operations of both Governmental and Proprietary Funds.
51
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
1. Summary of significant accounting policies - Continued
N. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the
applicable governmental or business-type activities columns in the government-wide financial statements
and in the fund financial statements for proprietary funds. Capital assets are defined by the government as
assets with an initial unit cost of $5,000 or more and an estimated useful life exceeding two years. Such
assets are recorded at historical cost or estimated historical cost if actual historical cost is not available.
Donated capital assets are recorded at their fair market value on the date donated. Repairs and
maintenance that do not add to the value of the asset or extend assets lives are recorded as expenses.
Interest cost during construction is capitalized when the effect of capitalization materially impact the financial
statements. During the year ended September 30, 2006, no interest costs were capitalized.
Property, plant and equipment of the primary government, as well as the component units, are depreciated
using the straight line method over the following estimated useful lives:
Buildings
Water and Sewer System
Infrastructure
Machinery and Equipment
Improvements
20 years
20 - 40 years
20 - 30 years
4 -10 years
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 - Employees earn an average of 10 sick hours per month of service. Non-civil service
employees hired after November 19, 1991 and who have completed 10 consecutive years of
service with the City, are paid for accumulated sick leave, subject to a limit of 480 hours. Civil
service employees are subject to a limit of 720 hours.
The liability for compensated absences at September 30, 2006 is comprised of the following:
Vacation
Sick Leave
Total All Funds
Governmental
$ 675,505
1,595,279
$ 2,270,784
Business Type
$ 124,553
198,404
$ 322,957
Total
$ 800,058
1,793,683
$ 2,593,741
52
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
1. Summary of significant accounting policies - Continued
P. LonQ-term ObliQations
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the
straight-line method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
Q. Reservations of Fund Balances
The fund balance reserves for revenue bond retirement and construction, prepaid items, inventory and debt
service are discussed in Notes 5, 1 (G), 1 (L) and 1 (C), respectively. Other reserves of funds are for the
Municipal Court Building Security Fees and Municipal Court Technology Fees, park zone and confiscated
funds.
R. Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net
of related debt consists of capital assets, net of accumulated depreciations, reduced by the outstanding
balances of any borrowing used for the acquisition, construction or improvements of those assets and
adding back unspent proceeds. Net assets are reported as restricted when there are limitations imposed on
their use either through the enabling legislations adopted by the city or through external restrictions imposed
by creditors, grantors or laws or regulations of other governments.
2. Cash, Cash Equivalents and Investments
Cash and Cash EQuivalents
The City reports cash and cash equivalents in the City's statement of cash flows for Proprietary Fund Types
and in all other financial statements of financial position. The City considers cash and cash equivalents to be
cash on hand, demand deposits, certificates of deposit, balances in privately managed public funds
investment pools and money market mutual funds.
Investments
Investments consist of balances in privately managed public funds investment pools, money market mutual
funds and investments in United States (US) Agency securities. The City reports all investments at fair value
based on quoted market prices at year-end date.
The Texas Public Funds Investment Act (PFIA), as prescribed in Chapter 2256 of the Texas Government
Code, regulates deposits and investment transactions of the City.
In accordance with applicable statutes, the City has a depository contract with an area bank (depository)
providing for interest rates to be earned on deposited funds and for banking charges the City incurs for
banking services received. The City may place funds with the depository in interest and non-interest bearing
accounts. Statutes and the depository contract require full security for all funds in the depository institution
through federal depository insurance or a combination of federal depository insurance and acceptable
collateral securities and/or an acceptable surety bond. The City requires the depository to place the
collateral securities with an independent trustee institution. The depository is required to deliver the
53
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
2. Cash, Cash Equivalents and Investments - Continued
safekeeping receipts to the City. In accordance with Texas statutes, the safekeeping receipts are in the
name of the depository with proper indication of pledge of the collateral securities by the depository to
secure funds of the City. The City must approve all collateral securities pledged and also must approve in
writing any changes to the pledged collateral securities.
The City has adopted a written investment policy regarding the investment of its funds as defined by the PFIA.
The PFIA also requires the City to have independent auditors perform test procedures related to investment
practices as provided by the Act. The City complies with the requirements of the Act and with local policies.
The City's investment policy permits investment of City funds in only the following investment types,
consistent with the strategies and maturities defined in the policy:
~ Obligations of the U.S., its agencies and instrumentalities.
~ Direct obligations of the State of Texas or its agencies.
~ Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United
States, the underlying security for which is guaranteed by an agency or instrumentality of the United
States.
~ Other obligations, the principal and interest on which are unconditionally guaranteed or insured by, or
backed by full faith and credit of the State of Texas or the United States or their agencies and
instrumentalities.
~ Obligations of states, agencies, counties, cities and other political subdivisions of any state having been
rated as to the investment quality by a nationally recognized investment firm and having received a
rating of not less than A or its equivalent.
~ Certificates of Deposit issued by state and national banks or savings and on associations domiciled in
this state that are:
a. guaranteed or insured by the Federal Deposit Insurance Corporation; or
b. secured by obligations that are described in 1-5 above, which are intended to include all direct
federal agency or instrumentality issued mortgage backed securities that have a market value of not
less than the principal amount of the certificates or in any other manner and amount provided by law
for deposit of the investing entities.
~ Certificates of Deposit and share certificates issued by a state or federal credit union domiciled in the
State of Texas that are guaranteed or insured by the Federal Deposit Insurance Corporation or the
National Credit Union Share Insurance Fund, or are secured as to principal by obligations described in 1
through 5 above in any other manner and amount provided by law for the City deposits.
~ Fully collateralized repurchase agreements having a defined termination date, secured by obligations of
the United States, its agencies or instrumentalities, pledged with a third party selected or approved by
the political entity, and placed through a primary govemment securities dealer, as by the Federal
Reserve or through a financial institution domiciled in the State of Texas.
~ Prime domestic banker's acceptances, defined as a banker's acceptance with a remaining term of 270
days or less, if the short-term obligations of the accepting bank or its parent are rated at least "A-1" or
.P-1" or equivalent by at least one nationally recognized credit rating agency.
~ Commercial paper that is rated at least "A-1" or "P-1" or the equivalent by either (a) two nationally
recognized credit agencies or (b) one nationally recognized credit rating agency if the paper is fully
secured by an irrevocable letter of credit issued by a U.S. or State bank.
~ SEC-registered no-load money market mutual fund (MMMF), with a dollar weighted average portfOlio
maturity of 90 days or less, includes in their investment objectives the maintenance of a stable net asset
value of $1 for each share.
~ SEC-registered, no-load money market mutual funds (MMMF) that have an average weighted maturity
of less than two years, invests exclusively in obligations described above and are continuously rated as
to investment quality by at least one nationally recognized investment rating firm of no less than "AM"
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 "AM" or an equivalent by at least
one nationally recognized rating service.
54
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
2. Cash, Cash Equivalents and Investments - Continued
Deposit and Investment Amounts
At year-end, the City recorded cash on hand, demand deposits, certificates of deposit, balances in
privately managed public funds investment pools, money market mutual funds, and investments stated
at fair value of $51,688,557.
The following schedule shows the City's recorded cash and investments at year-end:
Cash
Bank
Deposits Pooled Funds Investments Total
General $ 1,205,760 $ 6,330,243 $ 5,287,784 $ 12,823,787
Debt Service 170,995 897,725 752,683 1,821,403
Capital Projects 477,614 17,124,115 2,467,282 20,069,011
Special Revenue Funds 580,179 3,045,941 2,553,096 6,179,216
Total Governmental Funds 2,434,549 27,398,023 11,060,845 40,893,417
Internal Service Funds 492,587 2,586,079 2,160,627 5,239,293
Total Governmental Activities 2,927,135 29,984,103 13,221,472 46,132,710
Enterprise (56,835) 3,871,267 1,741,415 5,555,847
Total $ 2,870,300 $ 33,855,370 $ 14,962,887 $ 51,688,557
Quoted market prices are the basis of the fair value for US Agency securities and commercial paper. The
amount of increase or decrease in the fair value of investments during the current year is included in the
City's investment income as follows:
Interest Income
Net Increase (Decrease) in Fair Value of Investments
Total Investment Income
$ 2,122,366
50,053
$ 2,172,419
Investment Risks
At year-end, the City had the following investments, shown below for all funds by investment type:
Investment Type
Public funds investment pools
US Agency securities
Total
Fair Value
$ 33,855,370
14,962,887
$ 48,818,257
55
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
2. Cash, Cash Equivalents and Investments - Continued
I nterest Rate Risk
At year-end, the City had the following investments subject to interest rate risk disclosure, under U.S.
generally accepted accounting principles, by fund:
Investment Type/Fund
US Agency securities/General
US Agency securities/Debt Service
US Agency securities/Capital Projects
US Agency securities/Special Revenue
US Agency securitiesllnternal Service
US Agency securities/Enterprise
Fair Value
$ 5,287,784
752,683
616,011
4,404,367
2,160,627
1,741,415
$ 14,962,887
Weighted
Average
Maturities
(Months)
9.4
9.4
9.4
9.4
9.4
9.4
The City's investment policy specifies the maximum stated maturity, from the date of purchase; for any
individual investment may not exceed 5 years and the maximum dollar-weighted average maturity for
the pooled fund group (investment portfolio) may not exceed 2 years.
Concentration of Credit Risk
The policy does require investments to be staggered in a way that protects interest income from the
volatility of interest rates. The policy has not established limitations on percentages of total portfolio that
may be invested in securities other than repurchase agreements, Treasury bills and notes or insured
and collateralized Certificates of Deposits.
Investment Type
Agency Notes
Investment Pools
Fair Value
$ 14,962,887
33,855,370
$ 48,818,257
Percentage
of Total
Portfolio
48%
52%
100%
Credit Risk
At year-end balances in TexPool, a privately managed public funds investment pool was rated AMm by
Standard & Poor's, balances in TexStar, a privately managed public funds investment pool was rated
AMm 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 AM by Standard &
Poor's, AM by Fitch Ratings and Aaa by Moody's Investors Service.
All credit ratings met acceptable levels required by legal guidelines prescribed in both the PFIA and the
City's investment policy. Legal guidelines require an A1 rating by Standard & Poor's and a P-1 rating by
Moody's Investors Service for investments in commercial paper.
56
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
3. Property tax
The appraisal of property within the City is the responsibility of the Harris County Appraisal District (the
"Appraisal District"). The Appraisal District is required under the Property Tax Code to appraise all property
within the county on the basis of 100% of its market value. The value of real property within the Appraisal
District must be reviewed every five years; however, the City may, at its own expense, require annual
reviews of appraised values. The City may challenge appraised values established by the Appraisal District
through various appeals and, if necessary, take legal action. Under this legislation, the City continues to set
tax rates on City property. However, if the effective tax rate, excluding tax rates for repayment of general
obligation bonds and other contractual obligations, adjusted for new improvements, exceeds the rate for the
previous year by more than 8 percent, qualified voters of the City may petition for an election to determine
whether to limit the tax rate to no more than 8 percent above the effective tax rate.
The City's property taxes are levied annually in October on the basis of the Appraisal District's assessed
values as of January 1 of that calendar year. Appraised values are established by the Appraisal District at
market value, assessed at 100% of appraised value and certified by the Harris County Appraisal District
Board of Review. The City's property taxes are billed and collected by the City's Tax Assessor/Collector.
Such taxes are applicable to the fiscal year in which they are levied and become delinquent with an
enforceable lien on property on January 1 of the current calendar year.
The City is permitted, by Article Xl, 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 govemmental services. Within the
$2.50 maximum levy, there is no legal limit upon the amount of property taxes, which can be levied for debt
service. The property tax rates to finance general governmental services and debt service for the 2005-06
tax year were $0.613 and $0.097, respectively, per $100 of assessed valuation. The 2005 assessed value
and total tax levy as adjusted through September 30, 2006 were $1,695,166,598 and $12,035,686
respectively.
The City has enacted an ordinance providing for the exemption of twenty percent (20%) of the assessed
value of residential homesteads plus and additional $60,000 for persons 65 years of age or older for
property taxes. An exemption of $60,000 is allowed for disabled persons on homesteads and up to $12,000
is allowed for disabled veterans on anyone piece of property. Additionally, the market value of agricultural
land is reduced to agricultural value for purposes of the City's tax levy calculation.
57
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
4. Ca.pital Assets
Capital asset activity for the year ended September 30, 2006 was as follows:
Beginning Ending
Balance Retirements & Balance
10/01/05 Additions Adjustments 09/30/06
Governmental activities:
Capital assets, not being depreciated:
Land $ 7,682,585 $ 2,933 $ $ 7,685,518
Construction in progress 9,426,494 4,518,754 (3,961,274) 9,983,974
Total capital assets, not being depreciated 17,109,079 4,521,687 (3,961,274) 17,669,492
Capital assets, being depreciated:
Buildings and improvements 17,925,224 20,659 (213,655) 17,732,228
Improvements other than buildings 10,476,050 103,504 (2,870,304) 7,709,250
Infrastructure 23,482,106 854,597 2,515,722 26,852,425
Machinery and equipment 12,236,506 1,629,195 (559,591) 13,306,110
Total capital assets being depreciated 64,119,886 2,607,955 (1,127,828) 65,600,013
Less accumulated depreciation for:
Buildings 9,218,635 736,872 9,955,507
Improvements other than buildings 4,523,420 300,019 (50,586) 4,772,853
Machinery and equipment 7,467,315 1,006,482 (404,972) 8,068,825
Infrastructure 13,506,157 1,090,389 14,596,546
Total accumulated depreciation 34,715,527 3,133,762 (455,558) 37,393,731
Total capital assets, being depreciated, net 29,404,359 (525,807) (672,270) 28,206,282
Govemmental activities capital assets, net $ 46,513,438 $ 3,995,880 $ (4,633,544) $ 45,875,774
58
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
4. Capital Assets - Continued
Beginning Ending
Balance Retirements & Balance
10/01/05 Additions Adjustments 09/30/06
Business-type activities:
Capital assets, not being depreciated:
Land $ 2,350,478 $ $ $ 2,350,478
Construction in progress 1,184,241 2,371,663 (916,944) 2,638,960
Total capital assets, not being depreciated 3,534,719 2,371,663 (916,944) 4,989,438
Capital assets, being depreciated
Buildings and improvements 1,166,840 1,166,840
improvements other than buildings 63,511,103 580,707 5,096,516 69,188,326
Machinery and equipment 446,674 6,330 (30,790) 422,214
Total capital assets, being depreciated 65,124,617 587,037 5,065,726 70,777,380
Less accumulated depreciation for:
Buildings and improvements 707,111 48,951 756,062
Improvements other than buildings 33,972,634 2,088,349 36,060,983
Machinery and equipment 345,699 21,317 (12,407) 354,609
Total accumulated depreciation 35,025,444 2,158,617 (12,407) 37,171,654
Total capital assets, being depreciated net 30,099,173 (1,571,580) 5,078,133 33,605,727
Business-type activities capital assets, net $ 33,633,892 $ 800,083 $ 4,161,189 $ 38,595,165
59
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
4. Capital Assets - Continued
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government
Public safety
Public works
Culture and Recreation
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets
Total depreciation expense - governmental activities
Business-type activities:
Water & Sewer Services
Airport
Golf Course
Sylvan Beach Pavillion
Total depreciation expense - business-type activities
$ 308,746
298,158
1,167,845
491,459
867,555
$3,133,763
$ 1,888,909
108,772
146,064
14,871
$ 2,158,616
The City has active construction projects as of September 30,2006. Total accumulated commitments for
ongoing capital projects are composed of the following:
Utility Capital Projects Fund
Sylvan Beach Fund
Airport Fund
HotellMotel Occupancy Tax Fund
Section 4B Sales Tax
TIRZ Fund
General CI P
S1998 General Obligation Bonds
S2000 General Obligation Bonds
82002 General Obligation Bonds
82004 Cert. of Obligation Bonds
82005 Cert. of Obligation Bonds
82005 General Obligation Bonds
82006 Cert. of Obligation Bonds
82006 General Obligation Bonds
Total
Construction
In Progress
$ 3,902,167
34,905
85,000
301,699
1,207,072
21,057
1,054,050
558,210
996,240
1,533,044
6,418,991
895,224
3,545,429
$ 20,553,088
60
Remaining
Contract
Balance
$ 19,545
19,545
645,255
21,716
7,120,597
$ 7,826,658
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
5. Long Term Liabilities
At September 30, 2006 bonds payable consisted of the following individual issues:
Governmental
Business-type
1998 General Obligation Serial Bonds;
due in annual installments of $125,000
through March 15, 2019; interest at 4.25% to 6.25%
$ 1,625,000
1998 Waterworks and Sewer System Revenue Bonds
due in annual installments of $125,000
through March 15,2009; interest at 4.35% to 6.2% 375,000
1999 La Porte Area Water Authority Contract Revenue Refunding Bonds
due in annual payments through March 15,2017; interest at 7% to 7.5% 6,055,000
2000 General Obligation Serial Bonds
due in annual installments of $150,000 through March 15, 2010,
changing to $175,000 through March 15,2020; interest at 5% to 7% 2,350,000
2000 Certificates of Obligation
due in annual installments of $150,000
through March 15, 2020; interest at 5% to 7% 2,100,000
2002 Limited Tax Bonds
due in annual installments of $270,000
through March 15, 2025; interest at 4.25% to 5% 5,130,000
2004 Certificates of Obligation 6,800,000
due in annual payments through March 15, 2025; interest at 3.6% to 4.45%
2005 General Obligation Serial Bonds 7,435,000
due in annual payments through March 15, 2025; interest at 3.75% to 4.25%
2005 Certificates of Obligation 1,740,000
due in annual payments through March 15, 2015; interest at 2.8% to 3.8%
2006 Public Property Finance Contractual Obligation 2,625,000
due in annual payments through January 25,2016; interest at 3.74%
2006General Obligation Serial Bonds 1,200,000
due in annual payments through March 15, 2005; interest at 3.625% to 4.25%
2006 Certificate of Obligation 5,765,000
due in annual payments through March 15,2025; interest at 3.75% to 4.3%
Total Bonds Payable
$ 34,145,000
$ 9,055,000
61
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
5. Long Term Liabilities - Continued
Changes in Outstanding Debt-
Transactions for the year ended September 30, 2006 are summarized as follows:
Balance Issues Balance
October 1 , or Payments or September 30, Due within
2005 Additions Expenditures 2006 one year
Governmental Type Activities
General Obligation Bonds $ 17,325,000 $ 1,200,000 $ 785,000 $ 17,740,000 $ 810,000
Certificates of Obligation 11,050,000 5,765,000 410,000 16,405,000 425,000
Compensated Absences 2,309,372 108,644 147,231 2,270,785 149,000
Total govemmental fund types 30,684,372 7,073,644 1,342,231 36,415,785 1,384,000
Business Type Activities
Revenue Bonds Payable 7,145,000 715,000 6,430,000 585,000
Public Property Finance
Contractual Obligation 2,625,000 2,625,000 262,500
Compensated absences 293,467 47,954 18,465 322,956 30,000
Total business fund types 7,438,467 2,672,954 733,465 9,377,956 877,500
Total of all fund types $ 38,122,839 $ 9,746,598 $ 2,075,696 $ 45,793,741 $ 2,261,500
General Obligation Bonds and Certificates of Obligation -
General Obligation Bonds are direct obligations issued on a pledge of the general taxing power for the
payment of the debt obligations of the City. General Obligations Bonds and Certificates of Obligation
require the City to compute, at the time other taxes are levied, the rate of tax required to provide (in each
years bonds are outstanding) a fund to pay interest and principal at maturity. The City is in compliance with
this requirement.
Arbitrage provisions of the Internal Revenue Tax Act of 1986 require the' City to rebate excess arbitrage
earnings from bond proceeds to the federal government. As provided for by the bond indentures, this
amount has been recorded as a liability in the General Fund for the benefit of the federal government and
will be paid as required by applicable regulations.
Certain General Obligation Bonds and Certificate of Obligations Bonds are to be repaid by revenues of the
proprietary funds.
Also, for the governmental activities, compensated absences are generally liquidated by the general fund
and for business type, compensated absences are paid from the utility fund.
62
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
5. Long Term Liabilities - Continued
Revenue Bonds -
Water and Sewer Revenue Bonds constitute special obligations of the City solely secured by a lien on and
pledge of the net revenues of the water and sewer system.
The Revenue Bonds are collateralized by the revenue of the water and sewer system and the various
special funds established by the bond ordinances. The ordinances provide that the revenue of the system is
to be used first to pay operating and maintenance expenses of the system and second to establish and
maintain the Revenue Bond funds. Remaining revenues may then be used for any lawful purpose. The
ordinances also contain provisions, which, among other items, restrict the issuance of additional Revenue
Bonds unless the special funds noted above contain the required amounts and certain financial ratios are
met. The City is in compliance with all significant financial requirements as of September 30,2006.
Below is a reconciliation of the various restricted cash and cash investments:
Current Maturities of Revenue Bonds
Customer Deposits Payable
Total Restricted Cash and Cash Investments
as of September 30,2006
$ 950,010
505,287
$ 1,455,297
63
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
5. Long Term Liabilities - Continued
Annual Requirements to Retire Debt Obligations -
The annual aggregate maturities for each bond type for the years subsequent to September 30, 2006, are
as follows:
General Obligation Bonds
Governmental Activities
Business-type Activities
Year Ending
September 30
2007
2008
2009
2010
2011
2012-2016
2017-2021
2022-2026
Principal
$ 810,000
865,000
875,000
895,000
930,000
4,890,000
4,960,000
3,515,000
Interest
$ 782,479
724,726
684,138
644,779
605,335
2,398,341
1,289,372
315,505
Interest
$
Total
$ 1,592,479
1,589,726
1,559,138
1,539,779
1,535,335
7,288,341
6,249,372
3,830,505
Total
$ 17,740,000 $ 7,444,676
$
$
$ 25,184,676
Certificate of Obligations
Governmental Activities
Business-type Activities
Year Ending
September 30
2007
2008
2009
2010
2011
2012-2016
2017-2021
2022-2026
Principal
$ 425,000
650,000
670,000
700,000
725,000
4,080,000
4,875,000
4,280,000
Interest
$ 780,813
671,014
642,120
613,310
584,340
2,437,383
1,451,051
379,209
Principal
$ 262,500
262,500
262,500
262,500
262,500
1,312,500
Interest
$ 93,266
83,449
73,631
63,814
53,996
122,719
Total
$ 1,561,579
1,666,963
1,648,251
1,639,624
1,625,836
7,952,601
6,326,051
4,659,209
Total
$ 16,405,000 $ 7,559,240
$ 2,625,000 $ 490,875
$ 27,080,115
Revenue Bonds
Governmental Activities
Business-type Activities
Principal Interest Total
$ 585,000 $ 314,263 $ 899,263
610,000 281,688 891,688
630,000 247,788 877,788
525,000 215,456 740,456
550,000 185,513 735,513
3,210,000 474,706 3,684,706
320,000 7,600 327,600
$ 6,430,000 $1,727,014 $ 8,157,014
Year Ending
September 30
2007
2008
2009
2010
2011
2012-2016
2017-2021
Principal
$
Total
$
$
64
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
5. Long Term Liabilities - Continued
Bonds Authorized and Unissued-
At September 30, 2006, the City had $4,100,000 in Certificate of Obligations Bonds which were authorized
and unissued.
Defeased Bonds Outstanding -
In 1994, the City defeased certain general obligation and revenue bonds by placing the proceeds of the new
bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly,
the trust account assets and the liability for the defeased bonds are not included in the City's financial
statements.
On October 6, 1999, the La Porte Area Water Authority issued $8.08 million in Contract Revenue Refunding
Bonds, Series 1999, with an average interest rate of 5.159 percent to refund $8.08 million in outstanding
Water Supply Contract Revenue Bonds, Series I and II, 1998 with an average interest rate of 6.94 percent.
The Authority completed the current refunding to reduce its total debt service payments over the next 18
years by $1.476 million and to obtain an economic gain (difference between the present values of the old
and new debt service payments) of $1.048 million. The bonds are payable from the net revenues of the
Authority. The bonds are in $5,000 denominations. The Authority is in compliance with all significant
requirements and restrictions contained in the bond resolution. As of September 30, 2006, $2,025,000 of
the refunded bonds have been paid and $6,055,000 remain outstanding.
6. Pension Benefits
Plan Descriptions
The City provides pension benefits for all of its full-time employees through a non-traditional, joint
contributory, hybrid defined benefit plan (the "Plan") in the statewide Texas Municipal Retirement System
(TMRS), one of 811 administered by TMRS, an agent multiple-employer public employee retirement system.
A copy of the 2005 TMRS Comprehensive Annual Financial Report may be obtained by writing to P.O. Box
149153, Austin, Texas 78714. In addition, the city provides pension benefits to its volunteer firemen through
the Texas Statewide Emergency Services Personnel Retirement Fund, one of 150 administered by the Fire
Fighters' Pension Commissioner, a cost sharing multiple employer pension system. That report may be
obtained by writing to Firefighters Pension Commission, P.O. Box 12577, Austin, Texas 78711. Both Plans
are more fully described below.
Texas Municipal Retirement System
Benefits depend upon the sum of the employee's contributions to the Plan, with interest, and the City
financed monetary credits, with interest. At the date the Plan began, the city granted monetary credits for
service rendered before the Plan began of a theoretical amount equal to two times what would have been
contributed by the employee, with interest, prior to the establishment of the Plan. Monetary credits for
service since the Plan began are a percentage (100%, 150% or 200%) of the employee's accumulated
contributions. In addition, the City can grant annually another type of monetary credit referred to as an
updated service credit which is a theoretical amount which, when added to the employee's accumulated
contributions and the monetary credits for service since the Plan began, would be the total monetary credits
and employee's contributions accumulated with interest if the employee's contribution rate and City's
matching percentage had always been in existence and if the employee's salary had always been the
average of his salary in the last three years and that are one year before the effective date. At retirement,
the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the
employer-finance monetary credits with interest were used to purchase an annuity.
65
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
6. Pension Benefits - Continued
Members can retire at ages 60 and above with 10 or more years of service or with 20 years of service
regardless of age. The Plan also provides death and disability benefits. A member is vested after 10 years.
The Plan provisions are adopted by the governing body of the City, within the options available in the state
statutes governing the TMRS and within the actuarial constraints also in the statutes.
Contributions
The contribution rate for employees is 7 percent and the City's matching ratio is currently 2 to 1, both as
adopted by the governing body of the City. Under the state law governing TMRS, the actuary annually
determines the City's contribution rate. This rate consists of the normal cost contribution rate and the prior
service contribution rate, both of which are calculated to be a level percentage of payroll from year to year.
The normal cost contribution rate financing the currently accruing monetary credits is due to the City's
matching percentage, which is the obligation of the City as of an employee's retirement date, not at the time
the employee's contributions are made. The normal cost contribution rate is the actuarially determined
percentage of payroll necessary to satisfy the obligation of the City to each employee at the time his/her
retirement becomes effective. The prior service contribution rate amortizes the unfounded (over funded)
actuarial liability (asset) over the Plan's 25-year amortization period. When the City periodically adopts
updated service credits and increases in annuities, in effect, the increased unfounded actuarial liability is to
be amortized over a new 25-year period. Currently, the unfounded actuarial liability is being amortized over
the 25-year period, which began January 1998. The unit credit actuarial cost method is used for
determining the City's contribution rate. Both the employees and the City make contributions monthly.
Since the City needs to know its contribution rate in advance for budgetary purposes, there is a one-year
delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes
into effect. A summary of actuarial assumptions is presented below:
Actuarial Valuation Date
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Investment Rate of Return
Projected Salary Increases
Inflation Rate
Cost of Living Adjustment
Fiscal
Year
2003
2004
2005
Annual
Pension
Cost (APC)
$ 1,743,041
2,037,218
1,984,770
December 30, 2005
Unit Credit
Level Percent of Payroll
25 Years - Open Period
Amortized Cost
7%
None
3.5%
None
Percentage
of APC
Contribution
100%
100%
100%
Net Pension
Obligation
Additional supplementary three-year trend information may be found on page 73.
66
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
6. Pension Benefits - Continued
Texas Statewide Emergency Services Personnel Retirement Fund
Summary of Significant Accounting Policies and Plan Asset Matters
The Texas Statewide Emergency Services Personnel Retirement Fund financial statements are prepared
using the accrual basis of accounting. The Fund's fiscal year is from September 1 through the following
August 31. Contributions are recognized as revenues in the period in which they are due to the Fund. No
contributions applicable to the H.B. 258 Texas Local Fire Fighters Retirement Act (TLFFRA) are included
herein.
The Texas Statewide Emergency Services Personnel Retirement Fund investments are reported at a
smoothed market-related value.
Plan Description
The Fire Fighters' Pension Commission is the administrator of the Texas Statewide Emergency Services
Personnel Retirement Fund, a cost sharing multiple employer pension system established and administered
by the State of Texas to provide pension benefits for emergency services personnel who serve without
monetary remuneration. The Texas Statewide Emergency Services Personnel Retirement Fund is
considered a component unit of the State of Texas financial reporting entity and is included in the State's
financial reports as a pension trust fund. At August 31, 2006 there were 181 member departments
participating in the pension system. The following table summarizes the pension system membership as of
August 31,2006:
Retirees and beneficiaries currently receiving benefits 1 ,766
Terminated members entitled to benefits but not yet receiving those 1,815
Current active members (vested and non-vested) 4,480
The pension system was created by Senate Bill 411, 65th Legislature, Regular Session (1977). Benefit
provisions include retirement benefits as well and death and disability benefits. Members are vested at the
beginning of the fifth year of service, at 5 percent per year of service for the first ten years and 10 percent
for each of the next five years of service.
Upon reaching age 55, a vested member may retire and receive a monthly pension equal to his vested
percentage multiplied by six times the governing body's average monthly contribution over the member's
years of qualified service. For years of service in excess of 15 years, this monthly benefit is increased at the
rate of 6.2 percent compounded annually.
Death and disability benefits are dependent on whether or not the member was engaged in the performance
of duties at the time of death or disability. Death benefits include a lump-sum amount and continuing
monthly payments to a member's surviving spouse and/or dependents.
Contribution requirements were established by S.B. 411, 65th Legislative, Regular Session (1977) and no
contributions are required by members. As of September 1, 2006, the governing bodies of participating
department members are required to contribute at least $16 per month for each member. Additional
contributions may be necessary to pay for unfunded prior service costs and "buybacks. of vested benefits.
The State may also be required to make a limited amount of annual contributions to make the fund
actuarially sound.
67
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
6. Pension Benefits - Continued
Contributions ReQuired and Contributions Made
As previously stated the required contribution of at least $16 per member per month is not actuarially
determined. The 2005 Legislative Session gave the Board of Trustees of the Texas Emergency Services
Retirement System (TESRS) the authority to establish vesting periods, contribution levels, benefit formulas
and eligibility requirements under Title 8, Government Code, Subtitle H. The minimum monthly contribution
rate per member is increasing from $12 to $36 in $4 annual increments beginning September 1, 2006 and
becoming $36 September 1, 2011. For the fiscal year ending August 31, 2006, contributions totaling
$2,077,728 for dues and prior service were paid into the fund by the governing bodies sponsoring the
member participating departments. The contributions made were equal to the contributions required.
City Percentage of
Fiscal Annual Required
Year Contributions Contributions
2004 13,392 100%
2005 13,104 100%
2006 10,360 100%
The purpose for the biennial actuarial valuations is to test the adequacy of the monthly contributions and
determine if they are adequate to fund the benefits that are promised. The total contributions expected from
the governing bodies sponsoring the members for the fiscal year ending August 31, 2006 are $546,780 less
than the minimum required contributions for that fiscal year, based on amortizing the unfunded actuarial
accrued liability over 30 years.
7. Interfund Transfers
Interfund transfers during the year ended September 30, 2006 were as follows:
Transfer In:
Capital Debt Special Internal
General Project Service Revenue Enterprise Service
Transfer out: Fund Funds Fund Funds Fund Funds Totals
General Fund 1,368,365 $ 500,000 $ 1,177,438 $ 3,045,803
Capital Project Funds 2,800,000 636,925 3,436,925
Debt Service Fund
Special Revenue Funds 249,814 740,060 60,000 1,049,874
Enterprise Funds 343,000 3,084,361 112,882 3,540,243
Internal Service Funds 181,000 22,197 203,197
Total $ 592,814 $ 4,168,365 $ 740,060 $ 500,000 $ 3,325,361 $ 1,949.442 $ 11,276,042
Transfers are used to 1) transfer to the Golf Fund from Vehicle Replacement Fund to purchase Golf Carts,
2) transfer to the Golf Fund from the Insurance Fund for repairs due to storm damage, 3) transfer from
General Fund to Community Development Fund for future projects, 4) transfer from Special Revenue to
General Fund to reimburse hurricane related expenses that were reimbursed by FEMA.
68
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2006
In the year September 30, 2006, the government made the following one-time transfers:
A transfer of $500,000 from the General Fund to the Insurance Fund for additional funding for health
insurance to offset potential increases to the employee's contributions. A transfer of $714,450 from the
General Fund to the Capital Projects Fund for additional funding for general CIP projects. The Capital
Projects Fund does not have an alternative source of revenue so additional amounts sent over since
expenditures were higher than anticipated. A transfer of $500,000 from the General Fund to the Community
Development Fund to fund future economic development. A transfer of $500,000 from the General Fund to
the :WOO General Obligation Bond Fund to cover project overruns for Fire Station #3. A transfer of
$153,915 from the General Fund to the 2002 General Obligation Bond Fund to cover project overruns for
the EMS remodel project.
8. Risk Management
The City is exposed to various risks related to torts: theft, damage to and destruction of assets; errors and
omissions; and natural disasters. The City's risk management program encompasses various means of
protecting the City against loss by obtaining property, casualty and liability coverage from participation in a
risk pool. The participation of the City in the risk pool is limited to the payment of premiums. Further
information regarding the pool is provided below. Settled claims have not exceeded insurance coverage in
any of the previous three fiscal years. There has not been any significant reduction in insurance coverage
from that of the previous year.
Health I nsurance Benefits
The City self-insures a portion of health insurance benefits provided to employees. The City records
revenues and expenses for providing employee health coverage in an Internal Service Fund and accrues
the estimated incurred but not reported claims. Charges are assessed to various City divisions based on
their full-time employee count.
Activity during the year included:
Revenues:
Charges to divisions
Charges to employees
Charges to retirees
Charges to COBRA participants
Total revenues
$ 2,539,214
446,593
80,443
3,066,250
Expenses:
Personnel expenses
Other expenses
Claims administration
Claims incurred
Re-insurance premiums
Total health services expenses
408,278
396,213
136,222
2,750,136
188,684
$ 3,879,533
Included in the claims paid amount is $406,650 for incurred but not reported claims.
Settled claims have not exceeded insurance coverage in any of the previous four fiscal years. Estimates of
claims payable and of claims incurred but not reported at September 30, 2006 are reflected as liabilities of
the Internal Service Fund. Because actual claims liabilities depend on such complex factors as inflation,
changes in legal requirements and damage awards, the process used in computing claims liability is an
estimate based on historical claims. Analysis of claims liability for the fiscal years 2004, 2005 and 2006 are
as follows:
69
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
Beginning Current Payment End of
of Year Year for Year
Accrual Estimates Claims Accrual
Fiscal Year 2004 $163,452 $ 3,304,198 $ 3,241 ,263 $ 226,387
Fiscal Year 2005 226,387 2,992,671 2,914,671 304,387
Fiscal Year 2006 304,387 2,750,136 2,647,873 406,650
8. Risk Management - Continued
Risk Pool
The City is a member of the Texas Municipal League Intergovemmental Risk Pool, an unincorporated
association of 1,860 political subdivisions of the State of Texas. The Pool contracts with a third party
administrator for administration, investigation and adjustment services in the handling of claims. All loss
contingencies, including claims incurred but not reported, if any, are recorded and accounted for by the
Pool.
9. Commitments and Contingent Liabilities
From time to time, the City is a defendant in legal proceedings relating to its operations as a municipality. In
the best judgment of the City's management, the outcome of any pending legal proceedings will not have an
adverse effect on the accompanying general purpose financial statements.
The City participates in certain federal and state assisted grant programs. These programs are subject to
program compliance audits by the grantors or their representatives. Any liability for reimbursement which
may arise as the result of these audits is not believed to be material.
10. Post-Employment Benefits
In addition to pension benefits described in Note 6, employees who retire from the City and are eligible for
pension benefits shall be provided medical coverage by the City to the extent and subject to the conditions
of such coverage that is provided to current employees of the City. This coverage for retired employees is
provided at the option of City council through adoption of the annual budget. The City funds these
premiums in the same manner as it funds similar premiums for current employees.
Employees, who retired from the City before October 1, 1992, have 100% of their coverage paid for by the
City. Employees who retired from the City in 1993 and up to December 31, 1999, with 20 or more years of
service have 100% of their coverage paid for by the City. Prior to January 1, 2000, employees who have 15
years but less than 20 years of service are required to pay for 10% of the cost and employees who have 10
years but less than 15 years of service are required to pay for 20% of their costs. For employees who retire
after January 1, 2000 the following applies:
Years of Service with City
At least 10 but less than 15 years
At least 15 but less than 20 years
At least 20 years
Retiree Cost
55%
25%
0%
City Cost
45%
75%
100%
Retiree Cost Per Year
$3,300
1,500
o
70
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2006
10. Post-Employment Benefits - Continued
Employees who retire after January 1, 2006 and who have a combination of years of service with the City of
La Porte plus age totaling 80 and who retire as a qualified annuitant under the Texas Municipal Retirement
System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at
least 20 years of service with the City of La Porte are currently employed by the City of La Porte at the time
of their retirement. The total premium cost is the total annual dollar allocated by budget as approved by City
Council for the City of La Porte for health insurance for each employee, including employee and employer
contributions. The cost allocation shall be as follows:
Years of Service
with City
at least 20 years
21 years
22 years
23 years
24 years
25 years
26 years
27 years
28 years
29 years
30 years
Retiree
Cost
60% + dependent premiums
55% + dependent premiums
50% + dependent premiums
45% + dependent premiums
40% + dependent premiums
35% + dependent premiums
30% + dependent premiums
25% + dependent premiums
20% + dependent premiums
15% + dependent premiums
10% + dependent premiums
City
Cost
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
The costs of providing these benefits and number of retired employees are as follows:
Total Cost
City's Cost
$252,350
$175,377
Dependent
Coveraqe Cost
Number of
Retired Emplovees
$76,973
57
Retirees who are entitled to receive retirement benefits under the City's retirement plan may purchase
continued health benefits for the retiree and the retiree's dependents. The person must inform the City no
later than the day on which the person retires that the person elects to continue coverage. If the retiree
elects to continue coverage for himself and/or his dependents, once he decides to drop either type of
coverage, the person and/or his dependents become eligible for coverage at the next open enrollment
period. The level of coverage provided is the same level of coverage provided to current employees. The
City's coverage is secondary to Medicare when the person becomes eligible for those benefits. Payment for
dependent coverage will be at the same rate as payments for current employees.
71
72
REQUIRED SUPPLEMENTARY INFORMATION
73
74
Required Supplementary Information
Texas Municipal Retirement System
Schedule of Funding Progress
For the Last Three Fiscal Years
Actuarial
Accrued UML as a
Actuarial Liability Unfunded Percentage
Actuarial Value of (ML) - ML Funded Covered of Covered
Valuation Assets Entry Age (UML) Ratio Payroll Payroll
Date (a) (b) (b-a) (a1b) (c) [(b-a)/c]
2003 $ 42,858,965 $ 52,192,452 $ 9,333,487 82.1% $ 14,457,226 64.6%
2004 45,084,816 54,614,342 9,529,526 82.6 14,692,768 64.9
2005 43,001,769 53,388,381 10,386,612 80.5 15,137,017 68.6
75
Required Supplementary Information
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative )
REVENUES
Property taxes $ 10,395,130 $ 10,395,130 $ 10,454,157 $ 59,027
Franchise taxes 1,837,680 1,904,237 1,986,698 82,461
Sales taxes 2,389,099 2,389,099 2,495,547 106,448
Industrial payments 7,448,417 7,448,417 7,470,700 22,283
Other taxes 55,883 55,883 69,310 13,427
Licenses and permits 368,730 603,917 683,284 79,367
Fines and forfeits 676,446 803,323 848,232 44,909
Charges for services 3,606,414 3,752,821 3,852,570 99,749
Intergovernmental 22,500 22,500 8,489 (14,011)
Interest 329,370 534,526 652,700 118,174
Miscellaneous 30,000 44,960 24,778 (20,182)
Total revenues 27,159,669 27,954,813 28,546,465 591,652
EXPENDITURES
General Government:
Administration 2,348,030 2,367,687 2,359,502 8,185
Finance 2,521,974 2,492,363 2,262,531 229,832
Planning & Engineering 1,527,418 1,572,418 1,425,389 147,029
Public Safety:
Fire 3,538,587 3,593,163 3,433,273 159,890
Police 7,864,805 7,915,513 7,638,556 276,957
Public Works:
Public Works Administration 320,488 333,488 303,538 29,950
Streets 2,239,503 2,248,773 2,056,535 192,238
Health and Sanitation:
Solidwaste 1,805,705 1,819,705 1,813,812 5,893
Culture and Recreation 3,143,129 3,176,605 3,010,725 165,880
Total expenditures 25,309,639 25,519,715 24,303,861 1,215,854
Excess (deficiency) of revenues
over expenditures 1,850,030 2,435,098 4,242,604 1,807,506
OTHER FINANCING SOURCES (USES)
Proceeds from Sale of Assets 90,083 90,083
Transfers in 397,635 397,635 647,449 249,814
Transfers out (677,438) (3,045,803) (3,045,803)
Total other financing sources (uses) (279,803) (2,648,168) (2,308,271 ) 339,897
Net change in fund balances 1,570,227 (213,070) 1,934,333 2,147,403
Fund balances-beginning 9,181,327 9,181,327 9,181,327
Fund balances-ending $10,751,554 $ 8,968,257 $ 11,115,660 $ 2,147,403
76
Required Supplementary Information
CiTY OF LA PORTE, TEXAS
Section 48 Sales Tax Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative )
REVENUES
Sales taxes $ 1,117,500 $ 1,117,500 $ 1,245,774 $ 128,274
Interest 65,390 65,390 121,396 56,006
Total revenues 1,182,890 1,182,890 1,367,170 184,280
EXPENDiTURES
Current:
Capital Outlay
Total expenditures
Excess (deficiency) of revenues over
expenditures 1,182,890 1,182,890 1,367,170 184,280
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (740,060) (740,060) (740,060)
Total other financing sources (uses) (740,060) (740,060) (740,060)
Net change in fund balances 442,830 442,830 627,110 184,280
Fund balances-beginning 3,912,305 3,912,305 3,912,305
Fund balances-ending $ 4,355,135 $ 4,355,135 $ 4,539,415 $ 184,280
77
Required Supplementary Information
CITY OF LA PORTE, TEXAS
2005 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ $ $ 303,628 $ 303,628
EXPENDITURES
Current:
Capital Outlay 10,500,000 10,500,000 3,707,975 6,792,025
Debt Service:
Interest and fiscal charges
Total expenditures 10,500,000 10,500,000 3,707,975 (6,792,025)
Excess (deficiency) of revenues over
expenditures (10,500,000) (10,500,000) (3,404,347) (6,488,397)
OTHER FINANCING SOURCES (USES)
Proceeds from Sale of Bonds 7,700,000 7,700,000 7,700,000
Transfers in 2,800,000 2,800,000 2,800,000
Total other financing sources (uses) 10,500,000 10,500,000 2,800,000 7,700,000
Net change in fund balances (604,347) (604,347)
Fund balances-beginning 7,649,548 7,649,548 7,649,548
Fund balances-€nding $ 7,649,548 $ 7,649,548 $ 7,045,201 $ (604,347)
78
CITY OF LA PORTE, TEXAS
Notes to the Required Supplementary Information
September 30, 2006
Budoetarv Basis of Accountino
An annual budget is adopted for the General Fund using the modified accrual basis of accounting, a basis
sanctioned by, and consistent with, generally accepted accounting principles.
79
80
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
Debt Service Fund
Debt service Fund is used to pay interest and extinguish debt of the outstanding General Obligation Issues of
the City.
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for
particular purposes.
Grant Fund - This fund is used to account for funds received from another government or organization to be
used for a specific purpose, activity or facility.
Community Investment Fund - This fund is used to account for funds received and expended on community
beautification and revitalization programs.
Hotel/Motel Occupancy Tax Fund - This fund is used to account for the accumulation of resources from the
Hotel/Motel Tax assessment levied by the City. These monies are to be spent to promote the development or
progress of the City within the guidelines set forth on disposition of revenues collected under the authority of the
Texas Hotel Occupancy Act (Article 1269; Vernon's Texas Civil Statutes).
Tax Increment Reinvestment Zone One Fund (TIRZ) - This fund is used to account for the disposition of
property taxes collected on specific parcels within the boundaries of the TIRZ for the exclusive benefit of the
City's capital improvement programs.
Capital Projects Fundls
Capital projects funds are used to account for the acquisition and construction of major capital facilities other
than those financed by proprietary funds.
Capital Improvements Fund - This fund is used to account for capital projects that are normally small in nature
and effect the general operation of the City.
Transportation and Other Infrastructure Fund - This fund is used to account for the construction and expansion
of roads, bridges, sidewalks and other major infrastructure capital improvements.
1998 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related
to drainage and street improvements throughout the City.
2000 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for
construction of the community library.
2000 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for
construction to renovate the city hall building, public swimming pool and two fire stations.
2002 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for the
construction of a wastewater treatment plant.
81
2004 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures
related to Bay Area Boulevard, Canada Road Paving and Drainage Improvements and the land acquisition of
the Police Headquarters.
2005 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures
related to the purchase of an aerial fire truck, Bayshore Water/Sewer Replacement and various other
Water/Sewer Capital Improvements.
2006 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures
related to the Police Facility, a Sports Complex (Joint Venture), South La Porte Trunk Sewer and various other
Water/Sewer projects.
2006 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related
to the Westside Park Improvements.
82
83
CITY OF LA PORTE, TEXAS
Combining Balance Sheet
Nonma,ior Governmental Funds
September 3D, 2006
Special Revenue Funds Capital Projects
HotellMotel Tax Increment Transportation 199B General
Community Occupancy Reinvestment Capital & Other Obligation
Grant Investment Tax Zone One (TIRZ) Totals Projects Infrastructure Bonds
ASSETS
Cash and cash equivalents $ 285,791 $ 386,773 $ 361 ,799 $ 103,969 $1,138,332 $ 874,664 $ 650,451 $ 657,467
Investments 180,344 272,398 254,809 73,224 780,775 616,011 458,103 463,043
Due from others
Accounts receivable
Taxes receivable
Grant receivable 4,716
Other receivables 41,981 41,981
Accrued interest receivable 2,643 3,864 3,610 1,046 11,163 8,745 6,505 6,546
Total assets 510,759 663,035 620,218 178,239 1,972,251 1,504,136 1,115,059 1,127,056
UABIUTlES AND FUND BALANCES
Liabilities:
Accounts payable 4,811 771 213,807 971 220,350 332,694 (20)
Accrued salaries payable 2,319 2,319
Retainage payable 15B
Due to others
Unearned Revenue 49,670 49,670
T otalliabilities 54,481 771 216,126 971 272,349 332,862 (20)
Fund Balances:
Reserved for:
Capital projects
Municipal Court Building Security 106,652 106,652
Municipal Court Technology Fee 73,724 73,724
Park Zone 153,006 153,006
Confiscated funds 119,137 119,137
Debt Service
Unreserved 3,756 662,264 404,094 177,267 1,247,381 1,171,273 1,115,060 1,127,076
Other purposes
Total fund baiances 456,275 662,264 404,094 177,267 1,699,900 1,171,273 1,115,060 1,127,076
Total liabilities and fund balances $ 510,756 $ 663,035 $ 620,220 $ 178,238 $1,972,249 $1,504,135 $ 1,115,050 $ 1,127,056
84
Funds
2000 Certificate 2000 General 2002 General 2004 Certificate 2005 Certificate 2006 Certificate 2006 General Total Nonmajor
of Obligation Obligation Obligation of Obligation of Obligation of Obligation Obligation Debt Governmental
Bonds Bonds Bonds Bonds Bonds Bonds Bonds Totals Service Funds
15,620 737,132 $ 895,487 313,348 (600,886) 17,493 $ 26,753 $ 3,587,529 $1,068,720 5,794,581
11,000 460,889 179,118 797,161 1,542,434 3,082,581 1,175,600 8,785,940 752,683 10,319,398
108,386 108,386
4,716 4,716
2,157 2,152 4,309 46,290
157 6,543 2,550 3,151 103 158 34,458 10,438 56,059
26,777 1,204,564 1,077,155 1,115,817 943,700 3,100,177 1,202,511 12,416,952 1,940,227 16,329,430
25,720 232,613 21,669 2,762 8,456 20,180 4,033 648,107 12,728 881,195
2,319
168 168
113,612 163,282
25,720 232,613 21,669 2,762 8,456 20,180 4,033 648,275 126,340 1,046,964
106,652
73,724
153,006
119,137
1,813,887 1,813,887
1,057 971,949 1,055,485 1,113,054 935,244 2,902,672 1,184,748 11,577,618 12,824,999
1,057 971,949 1,055,485 1,113,054 935,244 2,902,672 1,164,748 11,577,618 1,813,887 15,091,405
$ 26,777 1,204,562 1,077,154 $ 1,115,816 943,700 $ 2,922,852 1,188,781 $12,225,893 $ 1,940,227 16,138,369
85
CITY OF LA PORTE, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For The Year Ended September 30,2006
Special Revenue Funds
HotellMotel Tax Increment Transportation 1998 General
Community Occupancy Reinvestment Capital & other Obligation
Grant Investment Tax Zone One (TIRZ) Totals Projects Infrastructure Bonds
REVENUES
Property taxes $ $ $ $ 45,549 $ 45,549 $ $ $
Donations
Intergovernmental 977,001 188,891 1,165,892
Sales taxes
other taxes 257,151 257,151
Interest 2,953 12,548 30,246 4.408 50,155 44,072 43,779 49,930
Charges for services 35,000
Miscellaneous 121,107.00 17,495 138,602
Total revenues 1,101,061 201.439 304,892 49,957 1,657,349 79,072 43,779 49,930
EXPENDllURES
Current
Administration 769,873 120,713 275,458 23,299 1,189,343
Capital Outlay 344,216 344,216 308,440 102,454
Debt Service:
Principal
Interest
Interest and fiscal charges
Total expendttures 769,873 120,713 619,674 23,299 1,533,559 308,440 102,454
Excess (deficiency) of revenues over
expendttures 331,188 80,726 (314,782) 26,658 123,790 (229,368) 43,779 (52,524)
OlliER RNANCING SOURCES (USES)
Proceeds from sale of long-term debt
Transfers in 500,000 500,000 714,450
Transfers out (249,814) (60,000) (309,814)
Total other financing sources (uses) (249,814) SOO,OOO (60,000) 190,186 714,450
Net change in fund balances 81,374 580,726 (374,782) 26,658 313,976 485,082 43,779 (52,524)
Fund balances-beginning 253,793 81,538 778,876 150,609 1,264,816 686,191 1,071,281 1,179,600
Fund balances-ending $ 456,275 $ 662,264 $ 404,094 $ 177,267 $ 1,578,792 $ 1,171,273 $ 1,115,060 $ 1,127,076
86
Capital Projects Funds
2000 Certificate 2000 General 2002 General' 2004 General 2005 Certificate 2006 Certificate 2006 General Total Nonmajor
of Obligation Obligation Obligation Obligation of Obligation of Obligation Obligation Debt Governmental
Bonds Bonds Bonds Bonds Bonds Bonds Bonds Totals Service Funds
$ $ $ $ $ $ $ 1,662,935 $ 1,708,494
1,165,892
43 257,194
906 47,390 99,725 27,815 69,716 92,666 18,704 494,703 86,581 631,439
35,000 35,000
138,602
906 47,390 99,725 27,815 69,716 92,666 18,704 529,703 1,749,559 3,936,611
1,189,343
786,671 562,655 479,599 258,299 2,498,118 2,842,334
1,195,000 1,195,000
1,185,364 1,185,364
154,994 33,956 188,950 188,950
786,671 562,655 479,599 258,299 154,994 33,956 2,687,068 2,380,364 6,600,991
906 (739,281 ) (462,930) (451,794) (188,583) (62,328) (15,252) (2,157,365) (630,805) (2,664,380)
5,765,000 1,200,000 6,965,000 6,965,000
500,000 153,915 1,368,365 740,060 2,608,425
(636,925) (2,800,000) (3,436,925) (3,746,739)
500,000 153,915 (636,925) 2,965,000 1,200,000 4,896,440 740,060 5,826,686
906 (239,281 ) (309,015) (451,784) (825,508) 2,902,672 1,184,748 2,739,075 109,255 3,162,306
151 1,211,230 1,364,500 1,564,838 1,760,752 8,838,543 1,704,632 11,807,991
$ 1,057 $ 971,949 $ 1,055,485 $ 1,113,054 $ 935,244 $ 2,902,672 $ 1,184,748 $ 11,577,618 $ 1,813,887 14,970,297
87
88
SCHEDULE OF REVENUES, EXPENDiTURES and
CHANGES IN FUND BALANCE - BUDGET and ACTUAL
Debt Service Fund
Special Revenue Funds
Capital Projects Funds
89
CITY OF LA PORTE, TEXAS
Grant Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For The Year Ended September 30,2006
Variance with
Fillal Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative )
REVENUES
Intergovernmental $ 2,793,931 $ 2,950,524 $ 977,001 $ (1,973,523)
Interest 2,953 2,953
Miscellaneous 121,107 121 ,1 07
Total reven ues 2,793,931 2,950,524 1,101,061 (1,849,463)
EXPENDITURES
Current:
Administration 2,793,931 3,039,385 769,873 2,269,512
Total expenditures 2,793,931 3,039,385 769,873 2,269,512
Excess (deficiency) of revenues over
expenditures (88,861 ) 331 , 1 88 420,049
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (249,814) (249,814)
Total other financing sources (uses) (249,814) (249,814)
Net change in fund balances (338,675) 81,374 420,049
Fund balances-beginning 253,793 253,793 253,793
Fund balance~nding $ 253,793 $ (84,882) $ 456,275 $ 420,049
90
CITY OF LA PORTE, TEXAS
Community Investment Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For The Year Ended September 30,2006
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES
Industrial payments $132,687 $ 132,687 $ 188,891 $ 56,204
Interest 2,690 2,690 12,548 9,858
Total revenues 135,377 135,377 201 ,439 66,062
EXPENDITURES
Current:
Administration 190,000 190,000 120,713 69,287
Capital Outlay
Total expenditures 190,000 190,000 120,713 69,287
Excess (deficiency) of revenues over
expenditures (54,623) (54,623) 80,726 135,349
OTHER FINANCING SOURCES (USES)
Transfers in 500,000 500,000 500,000
Total other financing sources (uses) 500,000 500,000 500,000
Net change in fund balances 445,377 445,377 580,726 135,349
Fund balances-beginning 81,538 81,538 81,538
Fund balances-ending $ 526,915 $ 526,915 $ 662,264 $ 135,349
91
CITY OF LA PORTE, TEXAS
Hotel/Motel Occupancy Tax Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30,2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative )
REVENUES
Other taxes $ 230,000 $ 230,000 $ 257,151 $ 27,151
Interest 20,590 20,590 30,246 9,656
Miscellaneous 15,995 15,995 17,495 1,500
Total revenues 266,585 266,585 304,892 38,307
EXPENDITURES
Current:
Administration 274,280 294,288 275,458 18,830
Capital Outlay 133,842 344,216 (210,374)
Total expenditures 274,280 428,130 619,674 (191,544)
Excess (deficiency) of revenues over
expenditures (7,695) (161,545) (314,782) (153,237)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (60,000) (60,000) (60,000)
Total other financing sources (uses) (60,000) (60,000) (60,000)
Net change in fund balances (67,695) (221,545) (374,782) (153,237)
Fund balances-beginning 778,876 778,876 778,876
Fund balances-ending $ 711,181 $ 557,331 $ 404,094 $ (153,237)
92
CITY OF LA PORTE, TEXAS
Tax Increment Reinvestment Zone One Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $ 40,750 $ 40,750 $ 45,549 $ 4,799
Interest 3,100 3,100 4,408 1,308
Total revenues 43,850 43,850 49,957 6,107
EXPENDITURES
Current:
Administration 36,000 36,000 23,299 12,701
Capital Outlay
Total expenditures 36,000 36,000 23,299 12,701
Excess (deficiency) of revenues over
expenditures 7,850 7,850 26,658 18,808
Net change in fund balances 7,850 7,850 26,658 18,808
Fund Balances-beginning 150,609 150,609 150,609
Fund Balances-ending $ 158,459 $ 158,459 $ 177 ,267 $ 18,808
93
CITY OF LA PORTE, TEXAS
Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ 35,000 $ 35,000 $ 35,000 $
Interest 28,000 28,000 44,072 16,072
Total revenues 63,000 63,000 79,072 16,072
EXPENDITURES
Current:
Capital Outlay 433,500 688,885 308,440 380,445
Total expenditures 433,500 688,885 308,440 380,445
Excess (deficiency) of revenues over
expenditures (370,500) (625,885) (229,368) 396,517
OTHER FiNANCING SOURCES (USES)
Transfers in 714,450 714,450 714,450 714,450
Net change in fund balances 343,950 88,565 485,082 396,517
Fund balances-beginning 686,191 686,191 686,191
Fund balances-ending $ 1,030,141 $ 774,756 $ 1,171,273 $ 396,517
94
CITY OF LA PORTE, TEXAS
Transportation and Other Infrastructure Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Fillal Amounts (Negative)
REVENUES
Interest 17,000 $ 17,000 $ 43,779 $ 26,779
EXPENDITURES
Current:
Administration 60,000 60,000 60,000
Total expenditures 60,000 60,000 60,000
Excess (deficiency) of revenues over
expenditures (43,000) (43,000) 43,779 86,779
Net change in fund balances (43,000) (43,000) 43,779 86,779
Fund balances-beginning 1,071,281 1,071,281 1,071,281
Fund balances-ending $ 1,028,281 $ 1,028,281 $ 1,115,060 $ 86,779
95
CITY OF LA PORTE, TEXAS
199B General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 20,000 $ 20,000 $ 49,930 $ 29,930
EXPENDiTURES
Current:
Capital Outlay 1,207,639 1,207,639 102,454 1,105,185
Excess (deficiency) of revenues over
expenditures (1,187,639) (1,187,639) (52,524) 1 ,135,115
Net change in fund balances (1,187,639) (1,187,639) (52,524) 1,135,115
Fund balances-beginning 1,179,600 1,179,600 1,179,600
Fund balances--ending $ (8,039) $ (8,039) $ 1,127,076 $ 1,135,115
96
CITY OF LA PORTE, TEXAS
2000 Certificate of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ $ $ 906 $ 906
EXPENDiTURES
Current:
Capital Outlay
Excess (deficiency) of revenues over
expenditures 906 906
Net change in fund balances 906 906
Fund balances-beginning 151 151 151
Fund balances-ending $ 151 $ 151 $ 1,057 $ 906
97
CITY OF LA PORTE, TEXAS
2000 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30,2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative )
REVENUES
Interest $ 5,000 $ 5,000 $ 47,390 $ 42,390
EXPENDITURES
Current:
Capital Outlay 565,000 565,000 786,671 (221,671 )
Excess (deficiency) of revenues over
expenditures (560,000) (560,000) (739,281 ) (179,281 )
OTHER FINANCING SOURCES (USES)
Transfers in 500,000 500,000 500,000
Total other financing sources (uses) 500,000 500,000 500,000
Net change in fund balances (60,000) (60,000) (239,281 ) (179,281 )
Fund balances-beginning 1,211,230 1,211,230 1,211,230
Fund balances-ending $ 1,151 ,230 $ 1,151 ,230 $ 971,949 $ (179,281)
98
CITY OF LA PORTE, TEXAS
2002 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 20,000 $ 20,000 $ 99,725 $ 79,725
EXPENDiTURES
Current:
Capital Outlay 831,877 831,877 562,655 269,222
Excess (deficiency) of revenues over
expenditures (811,877) (811,877) (462,930) 348,947
OTHER FINANCING SOURCES (USES)
Transfers in 153,915 153,915
Net change in fund balances (811,877) (657,962) (309,015) 348,947
Fund balances-beginning 1,364,500 1,364,500 1,364,500
Fund balances-ending $ 552,623 $ 706,538 $ 1,055,485 $ 348,947
99
CITY OF LA PORTE, TEXAS
2004 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amol.llnts (Negative)
REVENUES
Interest $ 40,800 $ 40,800 $ 27,815 $ (12,985)
Total revenues 40,800 40,800 27,815 (12,985)
EXPENDITURES
Current:
Capital Outlay 10,000 10,000 479,599 (469,599)
Excess (deficiency) of revenues over
expenditures 30,800 30,800 (451,784) (482,584)
Net change in fund balances 30,800 30,800 (451,784) (482,584)
Fund balances-beginning 1,564,838 1,564,838 1,564,838
Fund balances-ending $ 1,595,638 $ 1,595,638 $ 1,113,054 $ (482,584)
100
CITY OF LA PORTE, TEXAS
2005 Certificates of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30,2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ $ $ 69,716 $ 69,716
EXPENDiTURES
Current:
Capital Outlay 1,800,000 1,800,000 258,299 1,541,701
Total expenditures 1,800,000 1,800,000 258,299 (1,541,701)
Excess (deficiency) of revenues over
expenditures (1,800,000) (1,800,000) (188,583) 1,611,417
OTHER FINANCING SOURCES (USES)
Proceeds from Sale of Bonds 1,800,000 1,800,000 (1,800,000)
Transfers out (636,925) (636,925)
Total other financing sources (uses) 1,800,000 1,800,000 (636,925) (2,436,925)
Net change in fund balances (825,508) (825,508)
Fund balances-beginning 1,760,752 1,760,752 1,760,752
Fund balances-ending $ 1,760,752 $1,760,752 $ 935,244 $ (825,508)
101
CITY OF LA PORTE, TEXAS
2006 Certificates of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30,2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ $ $ 92,666 $ 92,666
EXPENDITURES
Current:
Administration
Capital Outlay 3,000,000 3,000,000
Debt Service:
Interest and fiscal charges 154,994 154,994
Total expenditures 3,000,000 154,994 (2,845,006)
Excess (deficiency) of revenues over
expenditures (3,000,000) (62,328) 2,937,672
OTHER FINANCING SOURCES (USES)
Proceeds from Sale of Bonds 5,800,000 5,800,000 5,765,000 (35,000)
Transfers in
Transfers out (2,800,000) (2,800,000)
Total other financing sources (uses) 5,800,000 3,000,000 2,965,000 (35,000)
Net change in fund balances 5,800,000 2,902,672 2,902,672
Fund balances-beginning
Fund balances-ending $ 5,800,000 $ $ 2,902,672 $ 2,902,672
102
CITY OF LA PORTE, TEXAS
2006 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ $ $ 18,704 $ 18,704
EXPENDITURES
Current:
Capital Outlay $ 1,200,000 $ 1,200,000 $ $ 1,200,000
Debt Service:
Interest and fiscal charges 33,956 33,956
Total expenditures 1,200,000 1,200,000 33,956 (1,166,044)
Excess (deficiency) of revenues over
expenditures (1,200,000) (1,200,000) (15,252) (1,147,340)
OTHER FINANCiNG SOURCES (USES)
Proceeds from Sale of Bonds 1,200,000 1,200,000 1,200,000 (1,147,340)
Total other financing sources (uses) 1,200,000 1,200,000 1,200,000 33,956
Net change in fund balances 1,184,748 1,184,748
Fund balances-beginning
Fund balances-ending $ $ $1,184,748 $ 1,184,748
103
CITY OF LA PORTE, TEXAS
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 200S
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $ 1,574,489 $ 1,574,489 $ 1,662,935 $ 88,446
Industrial payments 43 43
Interest 25,000 25,000 86,581 61,581
Total revenues 1,599,489 1,599,489 1,749,559 150,070
EXPENDITURES
Debt Service:
Principal 895,000 895,000 1,195,000 (300,000)
Interest 1,295,671 1,295,671 1,185,364 110,307
Total expenditures 2,190,671 2,190,671 2,380,364 (189,693)
Excess (deficiency) of revenues over
expenditures (591,182) (591,182) (630,805) (39,623)
OTHER FINANCING SOURCES (USES)
Transfers in 740,060 740,060 740,060
Net change in fund balances 148,878 148,878 109,255 (39,623)
Fund balances-beginning 1 ,704,632 1,704,632 1,704,632
Fund balances-ending $ 1,853,510 $ 1,853,510 $ 1,813,887 $ (39,623)
104
SUPPLEMENTARY INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
General Fund
These supplementary statements and schedules are included to provide management additional information for
financial analysis.
105
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues - Budget and Actual
Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative )
Taxes:
Ad valorem:
Current $10,121,783 $ 10,121,783 $ 10,139,822 $ 18,039
Delinquent 146,303 146,303 166,242 19,939
Industrial Payments 7,448,417 7,448,417 7,470,700 22,283
Total ad valorem 17,716,503 17,716,503 17,776,764 60,261
Penalty and interest 127,044 127,044 148,093 21 ,049
Sales Taxes 2,389,099 2,389,099 2,495,547 106,448
Other Taxes 55,883 55,883 69,310 13,427
Franchise Fees:
Electrical 1,150,000 1,174,142 1,394,465 220,323
Gas 150,000 170,415 162,070 (8,345)
Telephone 255,000 255,000 199,296 (55,704)
Cable 212,000 234,000 162,250 (71,750)
Commercial Solidwaste 70,680 70,680 68,617 (2,063)
Total Franchise Fees 1,837,680 1,904,237 1,986,698 82,461
Charges for Services:
Public safety service fees 978,619 1,203,761 1,321,205 117,444
Health and sanitation service fees 1,815,500 1,774,280 1,769,294 (4,986)
Culture and recreation fees 522,415 435,962 427,312 (8,650)
Other service fees 289,880 338,818 334,759 (4,059)
Total Charges for Services 3,606,414 3,752,821 3,852,570 99,749
Intergovernmental 22,500 22,500 8,489 (14,011)
Licenses and permits:
Building permits 98,880 166,928 189,358 22,430
Licenses 269,850 436,989 493,926 56,937
Total Licenses and permits 368,730 603,917 683,284 79,367
Investment income 329,370 534,526 652,700 118,174
Fines and forfeitures 676,446 803,323 848,232 44,909
Miscellaneous 30,000 44,960 24,778 (20,182)
Total revenues $27,159,669 $ 27,954,813 $ 28,546,465 $ 591,652
106
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30,2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
GENERAL GOVERNMENT
Administration:
Emergency Management:
Personal services $ 76,425 $ 94,925 $ 94,691 $ 234
Su pplies 19,850 26,607 26,555 52
Other services and charges 34,580 30,480 30,403 77
Total Emergency Management 130,855 152,012 151,649 363
General Administration:
Personal services 439,740 455,740 455,451 289
Supplies 7,560 6,560 6,061 499
Other services and charges 86,644 86,644 86,541 103
Total General Administration 533,944 548,944 548,053 891
Human Resources:
Personal services 199,072 177,072 176,276 796
Supplies 8,000 12,000 11 ,260 740
Other services and charges 112,798 135,798 134,408 1,390
Total Human Resources 319,870 324,870 321,944 2,926
Municipal Court:
Personal services 277,212 277,600 277,560 40
Supplies and materials 13,287 13,330 13,079 251
Other services and charges 180,131 200,200 200,173 27
Total Municipal Court 470,630 491 , 130 490,812 318
Purchasing:
Personal services 204,214 199,573 197,510 2,063
Supplies 2,659 2,666 2,664 2
Other services and charges 31,466 36,100 36,013 87
Total Purchasing 238,339 238,339 236,187 2,152
Management Information Services:
Supplies
Other services and charges 100 23 77
Total Management Information Svcs 100 23 77
City Secretary:
Personal services 261,082 239,165 238,792 373
Supplies and materials 4,650 16,300 16,195 105
Other services and charges 91,633 124,500 124,011 489
Total City Secretary 357,365 379,965 378,998 967
107
108
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
PUBLIC SAFETY:
Fire
Fire Prevention:
Personal services 143,152 143,152 118,188 24,964
Supplies 15,999 31 ,494 10,225 21,269
Other services and charges 31,695 31,631 28,828 2,803
Total Fire Prevention 190,846 206,277 157,241 49,036
Fire suppression:
Personal services 1,132,362 1,175,712 1,163,958 11,754
Supplies 126,284 131,854 126,067 5,787
Other services and charges 398,131 396,356 394,193 2,163
Capital Outlay 8,000
Total Fire Suppression 1,664,777 1,703,922 1,684,218 19,704
Emergency medical services:
Personal services 1,280,730 1,280,730 1,254,292 26,438
Supplies 109,099 109,099 112,363 (3,264)
Other services and charges 293,135 293,135 225,159 67,976
Total Emergency Services 1,682,964 1,682,964 1,591,814 91 ,150
Total Fire 3,538,587 3,593,163 3,433,273 159,890
Police
Police Administration:
Personal services 475,043 496,887 496,122 765
Supplies 19,067 20,407 19,198 1,209
Other services and charges 169,244 152,400 152,376 24
Total Police Administration 663,354 669,694 667,696 1,998
Police Patrol:
Personal services 4,159,122 4,159,122 4,012,800 146,322
Supplies 166,398 188,204 186,375 1,829
Other services and charges 509,553 484,553 411,955 72,598
Total Police Patrol 4,835,073 4,875,113 4,654,364 220,749
Criminal Investigation:
Personal services 1,298,272 1,320,702 1,319,590 1,112
Supplies 47,705 50,300 50,205 95
Other services and charges 174,047 164,000 163,142 858
Total Criminal Investigation 1,520,024 1,535,002 1,532,937 2,065
109
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30,2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Support Services:
Personal services 723,322 711,322 664,074 47,248
Supplies 46,435 47,435 47,243 192
Other services and charges 76,597 76,947 72,242 4,705
Total Support Services 846,354 835,704 783,559 52,145
Total Police 7,864,805 7,915,513 7,638,556 276,957
TOTAL PUBLIC SAFETY 11,403,392 11,508,676 11,071,829 436,847
PUBLIC WORKS:
Public Works Administration:
Personal services 240,281 238,281 215,081 23,200
Supplies and materials 2,860 3,670 3,666 4
Other services and charges 77,347 91,537 84,791 6,746
Total Public Works Administration 320,488 333,488 303,538 29,950
Streets:
Personal services 1,416,640 1,416,640 1,279,485 137,155
Supplies 127,522 154,877 154,173 704
Other services and charges 642,341 639,256 600,506 38,750
Capital Outlay 53,000 38,000 22,371 15,629
Total Streets 2,239,503 2,248,773 2,056,535 192,238
TOTAL PUBLIC WORKS 2,559,991 2,582,261 2,360,073 222,188
HEALTH AND SANITATION:
Residential Solidwaste:
Personal services 927,582 852,582 848,906 3,676
Supplies 176,712 225,712 225,050 662
Other services and charges 680,411 720,401 718,849 1,552
Total Residential Solidwaste 1,784,705 1,798,695 1 ,792,805 5,890
Commercial solidwaste:
Other services and charges 21,000 21,010 21,007 3
TOTAL HEALTH AND SANITATION 1 ,805,705 1,819,705 1,813,812 5,893
CULTURE & RECREATION:
Park Maintenance:
Personal services 934,594 815,594 749,260 66,334
Supplies and materials 79,457 99,713 98,699 1,014
Other services and charges 577,840 625,140 620,134 5,006
Capital outlay 25,000 44,600 19,972 24,628
Total Park Maintenance 1,616,891 1,585,047 1,488,065 96,982
110
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30, 2006
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Recreation:
Personal services 514,840 574,840 570,114 4,726
Supplies 52,732 53,233 49,553 3,680
Other services and charges 79,666 79,666 76,732 2,934
Total Recreation 647,238 711,728 696,399 15,329
Special Services:
Personal services 348,871 348,871 331,015 17,856
Supplies 21,911 22,346 21,742 604
Other services and charges 66,520 66,520 56,682 9,838
Total Special Services 437,302 437,737 409,439 28,298
Parks Administration:
Personal Services 385,154 385,154 361,772 23,382
Supplies 9,862 10,357 10,257 100
Other Services and Charges 46,682 46,582 44,793 1,789
Total Parks Administration 441,698 442,093 416,822 25,271
TOTAL CULTURE AND RECREATION 3,143,129 3,176,605 3,010,725 165,880
TOTAL GENERAL FUND $ 25,309,639 $ 25,519,715 $ 24,303,861 $ 1,215,854
111
112
COMBINING FINANCIAL STATEMENTS
Nonmajor Enterprise Funds
Enterprise Funds are used to account for the acquisition, operation and maintenance of governmental facilities
and services, which are entirely or predominantly self-supporting, by user charges. The operations of Enterprise
Funds are accounted for in such a manner as to show a profit or loss similar to comparable private enterprises.
Airport Fund - This fund is used to account for financial activities of the airport, which include rentals, grants and
other revenues.
Sylvan Beach Fund - This fund is used to account for revenues and expenses related to the operations of
Sylvan Beach Convention Center.
Golf Course Fund - This fund is used to account for revenues and expenses related to the operation of an
eighteen-hole municipal golf course.
113
CITY OF LA PORTE, TEXAS
Combining Statement of Net Assets
Nonmajor Proprietary Funds
For the year ended September 30, 2005
Business-type Activities -
Enterprise Funds
Total
Sylvan Beach Nonmajor
Convention Bay Forest Proprietary
Airport Center Golf Course Funds
ASSETS
Current assets:
Cash and cash equivalents $ 197,133 $ 104,512 $ $ 301,645
Investments 138,837 105,905 244,742
Receivables, net of
allowance for uncollectibles 2,771 50,473 53,244
Accrued interest receivable 1,972 1,508 3,480
Restricted cash, cash equivalents and
investments:
Customer service deposits 45,861 45,861
Total current assets 340,713 257,786 50,473 648,972
Noncurrent assets:
Capital assets:
Land 203,504 1,880,965 2,084,469
Buildings and improvements 383,586 731,524 1,115,110
Improvements other than buildings 4,036,174 2,540,952 6,577,126
Vehicles and equipment 103,276 103,276
Construction in progress 85,000 34,905 119,905
Less accumulated depreciation (2,375,550) (307,307) (2,171,272) (4,854,129)
Total noncurrent assets 1,949,128 111,184 3,085,445 5,145,757
Total assets 2,289,841 368,970 3,135,918 5,794,729
LIABILITIES
Current liabilities:
Accounts payable 633 10,434 143,165 154,232
Accrued salaries payable 2,186 13,202 15,388
Uneamed Revenue 36,677 50,473 87,150
Other current liabilities 1,500 4,430 5,930
Payable from restricted assets:
Customer deposits 68,129 68,129
Total current liabilities 2,133 117,426 211,270 330,829
Noncurrent liabilities:
Accrued separation pay 6,002 146,024 152,026
Total noncurrent liabilities 6,002 146,024 152,026
Total liabilities 2,133 123,428 357,294 482,855
NET ASSETS
Invested in capital assets, net of related debt 1,949,128 111,184 3,085,445 5,145,757
Unrestricted (deficit) 338,580 134,357 (306,824) 166,113
Total net assets $ 2,287,708 $ 245,541 $ 2,778,621 $ 5,311,870
114
CITY OF LA PORTE, TEXAS
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Nonmajor Proprietary Funds
For The Year Ended September 30,2006
Business-type Activities -
Enterprise Funds
Total
Sylvan Beach Nonmajor
Convention Bay Forest Proprietary
Airport Center Golf Course Funds
Operating revenues:
User fees $ 35,624 $ 168,967 $ 956,043 $1,160,634
Operating expenses:
Personal services 141,803 802,453 944,256
Supplies 14,336 121,366 135,702
Other services and charges 13,776 43,541 214,087 271,404
Depreciation 108,772 14,872 147,215 270,859
Total operating expenses 122,548 214,552 1,285,121 1,622,221
Operating income (loss) (86,924) (45,585) (329,078) (461,587)
Nonoperating revenues (expenses):
Interest income 13,019 9,662 2,697 25,378
Gain (loss) on sale of equipment (8,804) (8,804)
Total nonoperating revenue (expenses) 13,019 9,662 (6,107) 16,574
Income (loss) before contributions
and transfers (73,905) (35,923) (335,185) (445,013)
Transfers in 25,000 216,000 241,000
Transfers out (843) (3,616) (28,773) (33,232)
Change in net assets (74,748) (14,539) (147,958) (237,245)
Total net assets-beginning 2,362,456 260,080 2,926,579 5,549,115
Total net assets-ending $ 2,287,708 $ 245,541 $ 2,778,621 $ 5,311,870
115
CITY OF LA PORTE, TEXAS
Combining Statement of Cash Flows
Nonmajor Proprietary Funds
For The Year Ended September 30,2006
Business-type Activities -
Enterprise Funds
Total
Sylvan Beach Nonmajor
Convention Bay Forest Proprietary
Airport Center Golf Course Funds
CASH FLOWS FROM OPERATING ACTIViTIES
Cash received from user fees $ 33,944 $ 194,739 $ 956,043 $ 1,184,726
Cash payments to suppliers (13,464) (52,652) (352,925) (419,041)
Cash payments for personal services (140,763) (793,043) (933,806)
Net cash provided by operating activities 20,480 1,324 (189,925) (168,121)
CASH FLOWS FROM NONCAPiT AL FINANCING ACTIVrTIES
Transfers from other funds 25,000 216,000 241,000
Transfers to other funds (843) (3,616) (28,773) (33,232)
Net cash from noncapital financing activies (843) 21,384 187,227 207,768
CASH FLOWS FROM CAPITAL AND
RELATED FINANCIANG ACTIViTIES
Payments for capital acquisitions
Net cash (used) by capital and related financing activies
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 12,209 9,012 2,698 23,919
Net Investments (purchased) sold 32,772 20,807 53,579
Net cash provided by investing activities 44,981 29,819 2,698 77,498
Net increase (decrease) in cash and cash equivalents 64,618 52,527 117,145
Balances-beginning of the year 132,515 97,845 230,360
Balances-end of the year $ 197,133 $ 150,372 $ $ 347,505
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $ (86,924) $ (45,585) $ (329,078) $ (461,587)
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation expense 108,772 14,872 147,215 270,859
(Increase) decrease in accounts receivable (1,680) 805 50,000 49,125
Increase (decrease) in accrued salaries payable (90) 209 119
Increase (decrease) in accounts payable 313 5,225 (4,515) 1,023
Increase (decrease) in other current liabilities 2,597 (62,958) (60,361)
Increase (decrease) in customer utility deposits 22,370 22,370
Increase (decrease) in accrued employee separation 1,130 9,201 10,331
Total adjustments 107,405 46,909 139,152 293,466
Net cash provided by operating activities $ 20,481 $ 1,324 $ (189,926) $ (168,121)
Reconciliation of total cash and cash investments:
Current Assets - cash and cash equivalents $ 197,133 $ 104,512 $ $ 301,645
Restricted Assets - cash and cash equivalents 45,861 45,861
Total cash and cash equivalents $ 197,133 $ 150,373 $ 128,102 $ 475,608
116
COMBiNING FINANCIAL STATEMENTS
Internal Service Funds
Internal Service Funds account for the financing of goods or services provided by one City department for
another.
Motor Pool Fund - This fund is used to account for the cost of operating and maintaining automotive and other
equipment used by City departments and the purchase of general government vehicles (those not used by
proprietary fund activities). Service charges are billed to departments on a monthly basis to cover all expenses
of the fund.
Technology Fund - This fund is used to account for the cost of operating and maintaining computer software
and equipment used by City departments. Service charges are billed to departments on a monthly basis to
cover all expenses of the fund.
Insurance Fund - This fund is used to account for the provision of group health coverage for all City employees
and others eligible under the City's plan, including employee dependents and retirees.
117
CITY OF LA PORTE, TEXAS
Internal Service Funds
Combining Statement of Net Assets
For the year ended September 30, 2005
Motor
Pool Technology Insurance Totals
ASSETS
Current assets:
Cash and cash equivalents $ 1,396,747 $ 564,534 $ 1,117,385 $ 3,078,666
Investments 983,706 397,592 779,329 2,160,627
Accrued interest receivable 13,980 5,643 11,107 30,730
Miscellaneous Receivable 79,711 2,081 81,792
Material and supplies inventories, at cost 46,180 46,180
Total current assets 2,520,324 967,769 1,909,902 5,397,995
Noncurrent assets:
Capital assets
Vehicles and equipment 10,601,114 1,125,133 11,726,247
Less accumulated depreciation (6,305,377) (992,537) (7,297,914)
Total noncurrent assets 4,295,737 132,596 4,428,333
Total assets 6,816,061 1,100,365 1,909,902 9,826,328
LIABiliTIES
Current liabilities:
Accounts payable 29,692 21,212 509,321 560,225
Accrued salaries payable 11,323 4,580 15,903
Deferred revenue 2,106 2,106
Total current liabilities 41,015 25,792 511,427 578,234
Noncurrent liabilities:
Accrued employee separation pay 121,365 121,365
Total noncurrent liabilities 121,365 121,365
Total liabilities 162,380 25,792 511,427 699,599
NET ASSETS
Invested in capital assets, net of related debt 4,295,737 132,596 4,428,333
Unrestricted (deficit) 2,357,950 941,976 1,398,477 4,698,403
Total net assets $ 6,653,687 $ 1,074,572 $ 1,398,477 $ 9,126,736
118
CITY OF LA PORTE, TEXAS
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
For The Year Ended September 30, 2006
Motor
Pool Technology Insurance Totals
Operating revenues:
User Fees $ 1,799,270 $ 915,172 $3,100,782 $ 5,815,224
Cable Fees 53,000 53,000
Total operating revenues 1,799,270 968,172 3,100,782 5,868,224
Operating expenses:
Personal services 684,567 268,463 408,256 1,361,286
Supplies 245,939 75,022 320,961
Other sevices and charges 149,485 529,692 3,421,070 4,100,247
Miscellaneous
Depreciation 825,073 44,555 869,628
Total operating expenses 1,905,064 917,732 3,829,326 6,652,122
Operating income (loss) (105,794) 50,440 (728,544) (783,898)
Nonoperating revenues (expenses):
Interest income 84,518 35,444 45,709 165,671
Gain (loss) on sale of equipment (50,631 ) (50,631 )
Total nonoperating revenues (expenses) 33,887 35,444 45,709 115,040
Income(loss) before contributions and transfers (71,907) 85,884 (682,835) (668,858)
Transfers in 636,925 1,312,517 1,949,442
Transfers out (151,508) (689) (51,000) (203,197)
Change in net assets 413,510 85,195 578,682 1,077,387
Net assets-beginning 6,240,177 989,377 819,795 8,049,349
Net assets-ending $ 6,653,687 $ 1,074,572 $ 1,398,477 $ 9,126,736
119
CITY OF LA PORTE, TEXAS
Internal Service Funds
Combining Statement of Cash Flows
For The Year Ended September 30,2006
Motor
Pool Technology Insurance Totals
CASH FLOWS FROM OPERATING ACTIViTIES
Cash received from user fees $ 1,799,270 $ 968,172 $ 3,100,807 $ 5,868,249
Cash payments to suppliers (408,449) (628,982) (3,224,528) (4,261,959)
Cash payments for personal services (669,227) (268,421 ) (408,256) (1,345,904)
Net cash provided by operating activities 721,594 70,769 (531,977) 260,386
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Operating transfers in from other funds 636,925 (689) 1,312,517 1,948,753
Operating transfers out to other funds (151,508) (51,000) (202,508)
Net cash from noncapital financing activies 485,417 (689) 1,261,517 1,746,245
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payments for capital acquisitions (1,415,060) (17,649) (1,432,709)
Proceeds from sale of assets 12,217 12,217
Proceeds from insurance
Net cash (used) by capital and related financing
activies (1,402,843) (17,649) (1,420,492)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 80,075 33,149 38,871 152,095
Investments purchased 424,841 97,020 (148,767) 373,094
Investments sold
Net cash provided by investing activities 504,916 130,169 (109,896) 525,189
Net increase (decrease) in cash and cash equivalents 309,084 182,600 619,644 1,111,328
Balances-beginning of the year 1,087,663 381,934 497,743 1,967,340
Balances-end of the year $ 1,396,747 $ 564,534 $ 1,117,387 $ 3,078,668
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss) $ (105,794) $ 50,440 $ (728,544) $ (783,898)
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation expense 825,073 44,555 869,628
(Increase) decrease in accounts receivable (705) (705)
(Increase) decrease in accounts receivable 730
(Increase) decrease in inventories & prepaid expenses (1,649) (1,649)
Increase (decrease) in accrued salaries payable (93) 42 (51)
Increase (decrease) in accounts payable (11,376) (24,268) 196,542 160,898
Increase (decrease) in accrued employee separation 15,433 15,433
Total adjustments 827,388 20,329 196,567 1,043,554
Net cash provided by operating activities $ 721,594 $ 70,769 $ (531,977) $ 260,386
120
CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
These schedules present the capital asset balances related to governmental funds. A capital asset is presented in
this schedule when it has been purchased using general governmental resources and is used for general
governmental purposes. Assets are recorded at historical cost if purchased, or if historical cost is not available,
estimated historical cost, or fair market value on the date donated, if donated.
121
122
CITY OF LA PORTE, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule by Source
For the year ended September 30, 2005
Governmental funds capital assets
Land
Buildings
Equipment
Improvements
Infrastructure
Construction in progress
$ 7,685,517
17,732,228
1,579,864
7,662,126
26,873,816
9,983,973
Total governmental funds capital assets
$ 71,517,524
Investment in governmental funds capital assets by source
Current Operations
Capital Projects
Section 4B Sales Tax
$ 15,554,927
54,818,170
1,144,427
Total governmental funds capital assets
$ 71,517,524
This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in internal service funds are excluded from the
above amounts. Generally, the capital assets of internal service funds are included as
governmental activities in the statement of net assets.
123
CITY OF LA PORTE, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
September 30, 2006
Function and Activity Land Buildings Equipment Improvements
General Govemment
Administration $ 858,364 $ 6,153,276 $ 309,678 $ 407,287
Finance
Planning 217,002 19,922
Total general government 1,075,366 6,153,276 329,600 407,287
Public Safety
Fire 563,413 3,784,847 606,471 28,422
Police 45,089 1,064,031 416,422 25,732
Total Public Safety 608,502 4,848,878 1,022,893 54,154
Public Works
Adminstration 2,760,405 2,112,774 106,089 138,145
Streets
Total Public Works 2,760,405 2,112,774 106,089 138,145
Cultural and Recreational
Parks and Recreation 3,241,244 4,617,299 121,281 7,088,272
Total govemmental funds
capital assets $ 7,685,517 $ 17,732,227 $ 1,579,863 $ 7,687,858
This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in internal service funds are excluded from the
above amounts. Generally, the capital assets of internal service funds are included as
governmental activities in the statement of net assets.
124
Construction
Infrastructure in Progress Total
$ $ 60,721 $ 7,789,326
190,488 704,318 1 ,131 ,730
190,488 765,039 8,921,056
2,336,982 7,320,135
3,247,154 4,798,428
5,584,136 12,118,563
10,069,895 3,452,929 18,640,237
16,515,354 16,515,354
26,585,249 3,452,929 35,155,591
98,079 181,870 15,348,045
$ 26,873,816 $ 9,983,974 $ 71,543,255
125
CITY OF LA PORTE, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
For The Year Ended September 30,2006
Governmental Governmental
Fund Capital Fund Capital
Assets Assets
October 1, Additions! Retirements! September 30,
Function and Activity 2005 Adjustments Adjustments 2006
General government
Administration $ 7,978,318 $ 56,310 $ (245,300) $ 7,789,328
Finance
Planning 1,111,711 120,570 (100,551 ) 1,131,730
Total general government 9,090,029 176,880 (345,851) 8,921,058
Public safety
Fire 6,098,964 1,282,467 (61,295) 7,320,136
Police 1,602,080 3,213,738 (17,389) 4,798,429
Total public safety 7,701,044 4,496,205 (78,684) 12,118,565
Public works
Administration 21,266,390 867,620 (3,493,772) 18,640,238
Streets 16,515,353 16,515,353
Total public works 37,781,743 867,620 (3,493,772) 35,155,591
Cultural and Recreational
Parks and recreation 15,223,531 156,233 (31,720) 15,348,044
Total governmental funds
capital assets $ 69,796,347 $ 5,696,938 $ (3,950,027) $ 71,543,258
This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in internal service funds are excluded from the
above amounts. Generally, the capital assets of internal service funds are included as
governmental activities in the statement of net assets.
126
STATISTICAL SECTION
This part of the City of La Porte's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government's overall financial
health.
Contents Page
Financial Trends 129
These schedules contain trend information to help the reader understand
how the government's financial performance and well-being have
changedover time
Revenue Capacity 136
These schedules contain information to help the reader assess the
government's most significant local revenue source, the property tax.
Debt Capacity 142
These schedules present information to help the reader assess the
affordability of the government's current levels of outstanding debt and the
government's ability to issue additional debt in the future.
Demographic and Economic Information 149
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government's financial
activities take place.
Operating Information 151
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates to
the services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
Financial reports for the relevant year.
127
128
\
City of La Porte, Texas
Net Assets by Component
Last Four Fiscal Years
(accrual basis of accounting)
(unaudited)
Fiscal Year
2003 2004 2005 2006
Governmental activities
Invested in capital assets, net of related debt $ 23,400,108 $ 32,752,971 $ 28,933,050 $ 28,424,346
Restricted 5,804,419 5,770,840 6,642,077 7,004,587
Unrestricted 23,953,457 12,997,982 19,369,700 19,269,532
Total governmental activities net assets $ 53,157,984 $ 51,521,793 $ 54,944,827 $ 54,698,465
Business-type activities
Invested in capital assets, net of related debt $ 26,109,776 $ 25,996,416 $ 26,589,684 $ 29,642,136
Restricted 3,042,730 3,662,800 3,407,445 2,185,791
Unrestricted 4,709,368 2,647,090 1,264,814 2,812,123
Total business-type activities net assets $ 33,861,874 $ 32,306,306 $ 31,261,943 $ 34,640,050
Primary government
Invested in capital assets, net of related debt $ 49,509,884 $ 58,749,387 $ 55,522,734 $ 58,066,482
Restricted 8,847,149 9,433,640 10,049,522 9,190,378
Unrestricted 28,662,825 15,645,072 20,634,514 22,081,655
Total primary government net assets $ 87,019,858 $ 83,828,099 $ 86,206,770 $ 89,338,515
129
LI'l I'- ~ co I'- ..... N ["') LI'l co ..... N 0) ..... ~ co N CD CD CO 0' M M
N CO 0 CD ..... ["') ["') CD ..... ~ N LI'l 0) ["') LI'l 0 CD N N CO I'- I'- ~
["') N ,-I') ["') 0) N CD. ~ ~ LI'l ..... LI'l 0 1'-_ CO ~- N ~- ~ CD ["') CD 0
c:ri c<i c:i N c:ri t!i ..... c<i <<i N .0 <<i c:i ..... .0 ..... 1'-- LI'l .0 N ~ <<i c:ri
CD CO 0 LI'l CD I'- N ..... ~ 0) N CO N CD I'- ["') ["') CD ["') ["') 0 ~ N CO
0 CO CO. LI'l CO. LI'l. N.. I'- 1'-. CO. ..... N_ N 0) LI'l D. LI'l ~ ~ 0 ..... e:.- O)
0 1'-- <<i c:i c:i c:i <<i .0 c:ri 0)- .0 .0 .0
N ..... ["') CO
..... ["') ..... ~ ..... ~ ~
a a a a a a
v CO 0) CD I'- V CD CO I'- co ["') --..
N 0) LI'l ..... CD 0) N CD ["') N ..... .....
N lC) lC) 0 0) ..... ~ CO lC) CO ..... CD 0) ~ 0) ["') ["') ..... ..... ~ ..... CO 0
.....- I'- CD N I'- CO lC) 0) I'- ..... CO CD_ ..... 1'-. N 0) N ..... ..... ["') ["') 0 ~
..... r-: <<i r-: r-: c<i N r-: c:ri r-: N ..... c:ri ..... c<i c:ri c<i <<i ~. r-: c:ri .0 <<i
LI'l ..... CO CD CO ..... CO ..... I'- ..... LI'l ~ ..... 0 N CD ["') N LI'l lC) I'- CD lC) ~
0 ~ ["') ..... CO. I'- CO ~ ~ CO_ ..... N_ N 0) ["') 0 CO_ I'- N N 0) CO CO_ ["')
0 1'-- c:i .0 c<i 0)- t!i c:ri c:ri <<i CO- a::i CO- ~- N <<i
N N .....
N ["') ..... ~ ~ ~
ro
[J)
~ a a ~ ~ a ~
tii Cl"J ~ G" c;-
() 0) CO 0) 0) ..... ~ CD ~ 0) ,-I') Cl"J V ..... N N ~ CO CO 0
III CD CD N ..... 0) v lC) N 0 CO ..... ..... ["') CD CO CO N 0) Cl"J N ["') ["') CO
u: CO N CD LI'l ~- CD CO ~ 1'-_ 1'-_ CO. ["') 0 CO_ o N ["') ..... ..... lC) ["') CO_ .....
r-: r-: r-: t!i CO c:ri .0 t!i lC) N N ~- N I'- r-: t!i ["')- ~- ~- 1'-- N I'- c:i
~ CO ~ CO 0 0 CD 0 LI'l 0) ~ N 0) ..... ..... 0) I'- I'- CD CD lC) ["') N CO
0 ~ 0)- N.. 0)- ..... CD ~ N.. ~ ..... N.. I'- ..... CO lC) N.. CO CO ..... ..... CO_ O)-
0 c:i <<i c:i 0)- c:i c<i 1'-- 1'-- N t!i
N ..... CO ~ ::. I'-
..... ["') ~ ..... ~ ~
~ a ~ ~ ~ ~
~ ["') ["') N ~ I'- CD ~ N 0) I'- 0 I'- I'- CO 0) 0) I'- c;- --.. 0'
..... r::: .....
LI'l N CO CO I'- LI'l N ["') CD I'- N ~ I'- 0) ["') 0 CO CO Cl"J ..... CO 0
LI'l ~. 0 ~ 0) ["') CO_ N N ~ 1'-_ 0) CO ~ LI'l 0 CD CO CO N N 0) N
.0 r::: a::i c<i a::i 1'-- ~ c:ri c<i c:ri ~ N- O)- <<i c:i c:i c:i LI'l- .0 t!i <<i ["'). CD-
["') N ["') N ~ ~ lC) ["') ..... v CD ..... 0) lC) N CO 0 CO CO CD LI'l ..... CO
0 CO I'- CO CO_ o I'- CO ["') 0). ..... N.. N CD lC) ["') ~ CO I'- I'- lC) CO ..... Cl"J
0 a::i c:i c<i <<i 0)- t!i 0)- e; .0 .0 1'-- 1'-- c<i c<i ~ .0
N N ["') ..... ~ ~
0
~ a ~ ~ ~ ~ ~
......
III
[J)
::::l III
c: [J)
[J) ::::l
> c:
III III ~ [J)
[J) 2 c: E III > [J)
[J) ~ III
III III 0 t'Il ::::l c:
c: c: [J) :s OJ c: E [J)
[J) [J) III [J) Q.
Q. () c: .c e > t'Il X
:E x [J) .C ~ OJ [J)
Q) c: III Q. 'E Q.
Ci [J) .Q 0 .....
c: "C III Q) Q) X 0 III E C. Q)
.5: .Q 11 III 'E III [J) () [J) t'Il c:
c: E c: :;::;
'E 'E ,Q Cii :~ :5 Q) Q) 'E U) "C .> III C, 'E 'E
ill [J) 2 ill 0 > Q. [J) ill [J) c: ill [J) [J) ill ill [J)
III U) ::::l ~ ti c: t'Il n 0
III m III 0 ~ E [J) ! () x E [J) () ~ () C. E [J) ~ ~ E
ro l3 en 0 [J) .~ .~ ::::l
X () c: III - () c: :;::; .l!3 III c: c:
I/l () .> c: [J) .> III U) III :~ .> c: .> .>
Q) I/l Q) CD t'Il c: S Q) [J) "0 Q) CD CIl [J) c: tii [J) [J) CD [J) CD
I- <l: ~ t'Il :u >- U) 0:: 0 n () C) .r: Q. :I ti III t'Il n U) Q. > ~ n
- > ]! ....: en ..J c: () .~ () -'P > .... OJ 'E .?;o > ~ >
~ m tii 0 t'Il 0 "C t'Il .~ III 0 :: t'Il t'Il .... 0 III III 0
C) ~ "C c: c: E Cil Cl CIl .E Q) .E I Cl Cl
Z () III tii III c: t'Il 0 Q) [J) Q) 1Il Q) 1Il .1Il > tii Cl E Q) III CD S Q)
III ID III III
0 .w 'E tii en III ..... c: Q. en en 0 Q) >- CIl 'E U) c: c: Q. U) ~ Q. ~
0.. .5: u: t'Il S 1Il U) Iii .?;o 1::: c: ro a::: 1Il ~ CD .?;o [J) [J) III c: .?;o
CD .2 .2 :5 CD c: c: III c: III
.... .c III 1Il .3 ~ I Iii 0 u.. t'Il .w E Q) Cl I ~ E Q) I E
III I/l ::::l ~ CIl E c: :0 :0 tii > I/l ~ E E ro CD > III .w Q) E III
...J 1Il tii '6 III "3 Q) 0 U) Cii e- >- > ::::l .~ 0 III III ::::l .~ Q. U) .~
Cl 0 :: c: Q) ::::l ::::l Q) ~ Cl 1Il $: 1Il t'Il >. .c I! c: .r: Q. Cl Q) .r: .c x c: Q)
'0 u.. ::::l ::. CD C) 0.. 0.. J: () en ~ ID en (jj () 0 () ~ Iii
c: .... CIl tii c: tii tii Cll tii c: tii tii c:
.?;o t'Il ..... 0 ltl Q. > 'w > .w > .w tii
.c: III () I:: >C 0 "'0 "'0 "'0 e 0 "'0 "'0 "'0 a; 0 "'0
U III ~ 2- ::::l ::::l ::::l
() ...J W C) I- ID l- I- 0.. C) I- ID l- I- Z C) ID I-
CD ... ... CO I'- CO 0) C"l to I'- 0) I'- cry ~ I'- ~ cry ~ ...
... 0 0) 0) CD N CO I'- '" 0 0) 0 CO '" I'- CO CD 0 ~
C"l CO. '" CD I'- CO CO 0 0 0 '" o. 0 '" '" C"l 0) L.r')
.n ... en to r-: <i ..6 to 6 05 6 <i CD 6 05 CD- to ri I'-
C"l CD '" co CD I'- I'- ~ ... 0) 0 0) .,.. ... co co ~ CD ...
'" CD_ CD 0). 0 co 0) 0) co C"l CD 0) co. I'- ~ 0 co
6 r-: <i !i <i ri ~ en <i C"l
.,.. N N
a a a a
0) L.r') CD ... 0) I'- '" ~ L.r') .,.. N C"l ;n- o .,.. C"l cry 0
0) 0) N 0 I'- C"l 0) 0) N '" CD co N N I'- C"l CD I'-
'" 0 0)_ co 0) '" '" CD_ C"l .,.. CD_ I'- 0 0 ('r') CD
N ri ... .n en 6 ri ri .,.. N .n r-: ... 6 ri ri ~- 05
0) N 0) co '" N '" 0 co .,.. CD N co ... N N ~ I'-
.,.. CD. 0) co. ~ I'- I'- C"l .,.. ... co e CD I'- ~ 0_ C"l
6 to ri CD- to ri .,.. N
.,.. N N ~
a a a a
N I'- N '" 0) 0) N I'- C"l N CD ~ t::' I'- 0 .,.. e;- cr;
N ... .,.. I'- '" '" 0 0) ~ 0 ~ co 0) CD ... 0) CD '"
~ .,.. .,.. co ~ ('r') .,.. CD .,.. CD. .,.. I'- CD N.. ~ .,.. '" 1'--
en N to 05 cri to .n ~- to co <i !:i <i N 05 to ",- ...
C"l N 0) r::: CD I'- 0) co 0) co I'- co I'- CD C"l '" 0)
... 0). co N. C"l ~ CD ~ co !e- N I'- CD. L.r'). .,..
en CD C"l ~- <i :::.. ... e
N N ~
a a a a
CD 0 .,.. 0) ~ ~ CD ;n- cr; CD ~ co 0) .,.. I'- cry 0- cry
co N N ~ I'- '" co ~ N .,.. I'- 0) N 0 ... 0 co co
co .,.. co co '" N co '" CD N_ .... N CD C"l 0 co co
I'- 6 to N r-: N <i 6 ('r')- co .,.. en ri ~- N to 0)- .n
0) I'- I'- co C"l ~ 0 CD L.r') 0) N co '" CD CD '" ~ 0
I'- 0 N CD_ 0 '" I'- ~ ~ '" .,.. co N N.. co ~ ~ .,..-
05 N r-: ri ('r')- <i :::..
N N
-
a a a a r<l
-
'" '" '"
0)
'" 1ii 1ii
0 '" '"
e- O) '" '"
::l U E ro ro
.: 0. "E ~ $ $
III Iii 0) CJ) "5.. .5..
Q; '"
Gl :0 0 ro ro
Cl c '" C. u '" u
c 0) 0) CJ) g '0 CJ) -
III CJ) "'Cl C C 0
.c '- .e .c .u C .c C
u .E ro Q) 0) ro 0)
... "'Cl "'Cl 0. E E
~ 0) '" Q)
0) 0) ~ ~
;:l .:; .:; .l!l C '- '" c '"
0 c .E ~ 0) ~ Q)
~ ~ 0) ~ Q) ~ 1::
0) Ul .s "0 .S; E :~ 1::
'C it) ul ul E Q) lii '" lii 0) Q)
c ~ ~ iil tS J!l '" Ul
Q) Q) Q) >. x '" Iii 1l Iii E Jg (J) E
l\I ~ X X ro S Q) .u ro (J) tIl C CIl ~
III .:; S 5 0. > Ul .S; > '" III :~ .s; c
.!: 0) Ul Iii .!: Q) Q; Q;
Gl ~ Iii 0) X 0. C :n '" c 0. III U
U ~ >. Ul ::l 0 C ::l 0 > < tS >
:= 5 "'Cl '" 0 'C ;p
J!l ro 1:: .c :c ro 0 0 0
c 0) 0) iil .l!l 15 0) e;;- (J) ~ 0) e;;- .... ro ro
Gl u '" E Ul CJ) CJ)
> Gl Iii 0. 0. ::l C 0) U C Ul f!! Q) c '" f!! '" Gl Iii (J)
III C 0. ~ z: 0. >.
CIl III C 0 0 "'Cl tIl Iii .c .!!! :2 J!! c ;p .c .!!! ~ J!! Q) C ;p Iii
ex: < 0) '" c: c: E U: iil '" Iii Q; 1ii Iii c ro .:
en C '" '" .in E Q) .~
E 0) ~ u c c > '" 0) u c c E Ul
iii .... x ro '" .iii ro 0 '" c: "!!l .iii tIl ::l .~ Gl '"
... CIl c ro c c9 ~ ~ CJ) 0) ~ .0 Cl C (J) C.
Gl z: Q; I- :;) (!) Iii c :;) 2 (!) c Q; c
C > .iij Iii Iii III > .iij Iii
Gl 0 15 ::l 15 15 .c 0 ::l 15
c.':l (!) I- co l- I- U (!) CO I-
City of La Porte, Texas
Governmental Activities Tax Revenues By Source
Last Four Fiscal Years
(modified accrual basis of accounting)
(unaudited)
Fiscal Property Franchise Sales Industrial Other
Year Taxes Taxes Taxes Payments Taxes Total
1997 $ 8,671,352 $ 1,265,058 $ 1,394,380 $ 5,479,770 $176,870 $ 16,987,430
1998 9,014,064 1,345,706 1,551,649 5,567,175 170,203 17,648,797
1999 9,340,924 1,450,608 1,718,803 6,496,998 212,208 19,219,541
2000 9,525,957 1,480,901 2,575,584 6,308,210 248,615 20,139,267
2001 10,366,949 1,835,122 2,866,496 6,306,469 310,518 21,685,554
132
City of La Porte, Texas
Fund Balances of Governmental Funds
Last Four Fiscal Years
(modified accrual basis of accounting)
(unaudited)
2003
Fiscal Year
2004 2005
2006
General fund
Reserved
Unreserved
Total general fund
$ 209,191 $ 440,926 $ 209,191 $ 212,164
6,632,833 7,009,028 8,972,133 10,903,496
$ 6,842,024 $ 7,449,954 $ 9,181,324 $11,115,660
All other governmental funds
Reserved
Unreserved/Undesignated
Unreserved, reported in:
Special revenue funds
Capital projects funds
Total all other governmental funds
$ 7,462,916 $ 1,584,497 $ 2,061,426 $ 1,813,887
3,770,935 1,005,159 4,255,634 1,247,381
5,067,980 9,287,535 16,488,090 11,577,618
$16,301,831 $11,877,191 $22,805,150 $14,638,886
133
City of La Porte, Texas
Changes in Fund Balances of Governmental Funds
Last Four Fiscal Years
(modified accrual basis of accounting)
(unaudited)
Fiscal Year
2003 2004 2005 2006
Revenues
Taxes $ 22,922,669 $ 22,948,635 $ 24,045,940 $ 25,687,864
Donations 30,000
Harris County Joint Ventures 1,751,555
Licenses and permits 199,970 320,405 531,091 683,284
Fines and forfeits 847,250 554,559 678,205 848,232
Charges and services 2,275,333 2,947,340 3,233,453 3,887,570
Intergovernmental 480,037 576,262 1,112,687 1,174,381
Interest 481,822 325,418 630,683 1,709,163
Miscellaneous 125,020 32,605 183,658 163,380
Total revenues 27,332,101 27,705,224 32,197,272 34,153,874
Expenditures
General Government 5,542,520 7,971,284 6,848,838 7,236,765
Public Safety 10,477,080 10,414,544 10,532,857 11,071,829
Public Works 2,556,011 2,361,192 2,430,322 2,360,073
Health and Sanitation 1,823,462 1,758,964 1,808,313 1,813,812
Culture and Recreation 3,475,888 3,245,144 3,067,815 3,010,725
Debt Service
Principal 1,590,000 1,490,000 1,330,000 1,195,000
Interest 795,199 699,834 1,030,430 1,374,314
Capital Outlay 2,771,651 3,259,141 8,566,314 6,550,309
Total expenditures 29,031,811 31,200,103 35,614,889 34,612,827
Excess of revenues
over (under) expenditures (1,699,710) (3,494,879) (3,417,617) (458,953)
Other financing sources (uses)
Proceeds from sale of long term debt 16,586,900 6,965,000
Transfers in 1,919,871 3,469,026 3,222,196 6,055,874
Transfers out (3,423,500) (3,790,857) (3,774,399) (7,532,602)
Proceeds from sale of assets 42,250 90,083
Total other financing
sources (uses) (1,503,629) (321,831) 16,076,947 5,578,355
Net change in fund balances $ (3,203,339) $ (3,816,710) $ 12,659,330 $ 5,119,402
Debt service as a percentage
of noncapital expenditures 8% 7% 7% 7%
134
City of La Porte, Texas
General Government Tax Revenues by Source
Last Four Fiscal Years
(modified accrual basis of accounting)
(unaudited)
Fiscal Property Franchise Sales
Year Taxes Taxes Taxes
2003 $10,925,425 $ 1,682,849 $ 2,764,876
2004 11,070,189 1,718,875 2,993,481
2005 11,787,495 1,805,800 3,166,900
2006 12,162,641 1,986,698 3,741,321
135
Industrial Other
Payments Taxes Total
$ 7,094,900 $454,619 $ 22,922,669
6,896,112 269,978 22,948,635
6,991,926 293,819 24,045,940
7,470,700 326,504 25,687,864
City of La Porte, Texas
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
Ended
September 30
Estimated Market Value
Real Personal
Property Property
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
$ 1,107,091,700
1,132,150,100
1,200,942,090
1,348,881,240
1,346,611,820
1,461,368,400
1,498,049,850
1,546,560,410
1,601,433,200
1,777,351,563
$ 222,428,561
239,361,192
231,352,908
258,255,710
295,183,470
295,213,550
270,257,240
279,687,470
311,721,280
325,549,640
Less:
Tax: Exempt
Property
$147,472,790
151,237,850
170,254,950
187,918,790
219,056,080
251,950,970
255,642,570
265,840,970
278,265,540
407,734,605
Source: City of La Porte records and the Harris County Appraisal District
136
Total Taxable
Assessed
Value
$ 1,182,047,471
1,220,273,442
1,262,040,048
1,419,218,160
1,422,739,210
1,504,630,980
1,512,664,520
1,560,406,910
1,634,888,940
1,695,166,598
Total Estimated Assessed
Direct Actual Value as a
Tax Taxable Percentage of
Rate Value Actual Value
$ 0.71 1,329,520,261 112.48%
0.71 1,371,511,292 112.39%
0.71 1,432,294,998 113.49%
0.71 1,607,136,950 113.24%
0.71 1,641,795,290 115.40%
0.71 1,756,581,950 116.75%
0.71 1,768,307,090 116.90%
0.71 1,826,247,880 117.04%
0.71 1,913,154,480 117.02%
0.71 2,102,901,203 124.05%
137
City of La Porte, Texas
Property Tax Rates
Direct and Overlapping Governments
(Per $100 of Assessed Value)
Last Ten Fiscal Years
(Unaudited)
City Direct Rates 1
Debt Harris County
Fiscal General Service Flood Control Harris
Year Fund Fund Total District 2 County 2
1997 $ 0.57 $ 0.14 $ 0.71 $ 0.0742 $ 0.4276
1998 0.57 0.14 0.71 0.0800 0.4166
1999 0.57 0.14 0.71 0.0800 0.3948
2000 0.57 0.14 0.71 0.0617 0.3590
2001 0.57 0.14 0.71 0.0476 0.3839
2002 0.57 0.14 0.71 0.0476 0.3839
2003 0.575 0.135 0.71 0.041740 0.3881
2004 0.575 0.135 0.71 0.033180 0.3999
2005 0.612 0.098 0.71 0.033220 0.39986
2006 0.612 0.098 0.71 0.032410 0.40239
Source: 1 City of La Porte records
2 Office of Harris County
3 Office of La Porte Independence School District
4 Office of San Jacinto Jr. College District
138
Overlapping Rates
Port of Harris County San Jacinto
Houston Board of Hospital La Porte Jr. College
Authority 2 Education 2 District 2 I.SD.3 District 4 Total
$ 0.0160 $ 0.0056 $ 0.1238 $ 1.560 $ 0.1100 $ 3.0272
0.0213 0.0061 0.1238 1.610 0.1100 3.0778
0.0204 0.0063 0.1465 1.610 0.1100 3.0780
0.0183 0.0063 0.2027 1.650 0.1260 3.1340
0.0183 0.0063 0.1902 1.630 0.1307 3.1170
0.0183 0.0063 0.1902 1.630 0.1307 3.1170
0.0199 0.0063 0.1902 1.680 0.1307 3.16694
0.0167 0.0063 0.1902 1.734 0.1391 3.22938
0.01474 0.00629 0.19216 1.734 0.145365 3.23564
0.01302 0.00629 0.19216 1.635 0.145365 3.13664
139
City of La Porte, Texas
Pricipal Property TaxPayers
Current Year and Nine Years Ago
(Unaudited)
2006 1997
Percentage Percentage
ofTotal City ofTotal City
Taxable Taxable Taxable Taxable
Assed Assessed Assed Assessed
Taxpayer Value Value Taxpayer Value Value
Conoco Phillips Inc $ 54,702,820 3.09% Conoco Inc $ 54,111,440 2.57%
Oxy Vinyls LP 49,177,149 2.78% Equistar Chemicals LP 44,664,690 2.12%
Equistar Chemicals LP 45,219,482 2.56% HL&P 42,425,040 2.02%
BP Solvay 37,068,510 2.10% Solvay Polymer Corp 37,068,510 1.76%
PPG Industries 32,016,935 1.81% Occidental Electrochem 36,236,280 1.72%
Dupont Dow Elastomers 25,986,060 1.47% PPG Industries 30,016,160 1.43%
Centerpoint Energy 24,651,811 1.39% Fina Oil & Chern. Co. 24,606,050 1.17%
Dow Chemicals 20,576,356 1.16% Dow Chemicals 21,053,500 1.00%
Attofina Petrochemicals 20,215,323 1.14% Geon Company 20,408,900 0.97%
PPG Industries 14,643,050 0.77% Noltex 14,662,470 0.70%
$ 324,257,496 18.33% $ 325,253,040 15.47%
Source: City of La Porte Tax Department
140
City of La Porte, Texas
Property Tax Levies and Collections
Last Ten Fiscal Years
(unaudited)
Collected within the
Taxes Levied Fiscal Year of the Levy Delinquent Total Collections
Fiscal for the Percentage Tax Percentage
Year Fiscal Year Amount of Levy Collections Amount of Levy
1997 $ 8,310,963 $ 8,100,624 97.47% $ 358,575 $ 8,459,199 101.78%
1998 8,598,632 8,437,322 98.12% 220,553 8,657,875 100.69%
1999 8,939,428 8,795,498 98.39% 206,154 9,001,652 100.70%
2000 9,175,689 9,006,072 98.15% 184,584 9,190,656 100.16%
2001 10,102,074 9,831,981 97.33% 247,977 10,079,958 99.78%
2002 10,683,102 10,515,098 98.43% 207,508 10,722,606 100.37%
2003 10,740,051 10,539,796 98.14% 300,131 10,839,927 100.93%
2004 11,078,891 10,924,697 98.61% 263,540 11,188,237 100.99%
2005 11,607,713 11,451,693 98.66% 277,123 11,728,816 101.04%
2006 12,035,686 11,829,142 98.28% 255,319 12,084,461 100.41 %
Source: City of La Porte Tax Department
141
City of La Porte, Texas
Ratio of Outstanding Debt by Type
Last Seven Fiscal Years
(unaudited)
Governmental Activities
General Certificates
Fiscal Obligation of Other
Year Bonds Obligation Obligations
2000 $ 11,370,000 $ 3,000,000 $
2001 9,745,000 2,850,000
2002 8,210,000 2,700,000 5,400,000
2003 6,770,000 2,550,000 5,400,000
2004 5,430,000 2,400,000 5,400,000
2005 11,925,000 11,050,000 5,400,000
2006 12,610,000 16,405,000 5,130,000
Source: Details regarding the City's outstanding debt can be
found in the notes to the financial statements.
Percentage of personal income and Per capita personal income pro'
142
Business-Type Activities
General
Water and Obligation Total Percentage
Sewer Revenue Refunding Other Primary of Personal Per
Bonds Bonds Obligations Government Income Capita
$ 1,425,000 $ 2,275,000 $ 8,080,000 $ 26,150,000 3.87% 820
1,200,000 1,840,000 8,080,000 23,715,000 N/A N/A
975,000 1,440,000 7,710,000 26,435,000 N/A N/A
750,000 1,040,000 7,293,358 23,803,358 N/A N/A
625,000 585,000 6,904,178 21,344,178 N/A N/A
500,000 145,000 6,500,000 35,520,000 N/A N/A
375,000 8,680,000 43,200,000 N/A N/A
"Om the 2000 US Census.
143
City of La Porte, Texas
Ratio of General Bonded Debt Outstanding
Last Seven Fiscal Years
(unaudited)
Percentage of
General Certificates Actual Taxable
Fiscal Obligation of Value of Per
Year Bonds Obligation Total Property 1 Capita 2
2000 $ 14,370,000 $ $ 14,370,000 21,178
2001 12,595,000 12,595,000
2002 16,310,000 16,310,000
2003 12,170,000 2,550,000 14,720,000
2004 10,830,000 2,400,000 13,230,000
2005 17,325,000 11,050,000 28,375,000
2006 17,740,000 16,405,000 34,145,000
General Bonded Debt Outstanding
Note: Details regarding the City's outstanding debt can be found in the
notes to the financial statements.
1. See Table for property value data.
2. See Table for population data.
144
City of La Porte, Texas
Direct and Overlapping Governmental Activities Debt
As of September 30,2006
(unaudited)
Governmental Unit
Debt
Outstanding
Debt repaid with property taxes
Harris County $
Harris County Department of Education
Harris County Flood Control District
Harris County Toll Road - Toll Road Bonds
La Porte ISD
Port of Houston Authority
San Jacinto Jr. Collect District
Other debt
Subtotal, overlapping debt
City of La Porte dlirect debt
Total direct and overlapping dlebt
$
1,735,371,000
443,370,000
34,324,985
115,170,000
314,705,000
73,200,000
2,716,140,985
36,770,000
Source: RBC Dain Rauscher inc., Financial Advisors
145
Estimated
Percentage
Applicable
0.82%
0.82%
0.82%
0.82%
37.82%
0.83%
6.32%
100%
Estimated
Share of
Overlapping
Debt
$ 14,230,042
3,635,634
281,465
43,557,294
2,612,052
4,626,240
$ 68,942,727
$ 36,770,000
$ 105,712,727
City of La Porte, Texas
Legal Debt Margin Infonnation
Last Ten Fiscal Years
(amounts expressed in thousands)
(unaudited)
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
1997
$ 29,784,084
9,577,381
$ 20,206,703
1998
$ 30,787,158
10,210,322
$ 20,576,836
1999
$ 31,930,272
8,555,959
$ 23,374,313
2000
$ 38,129,152
13,106,517
$ 25,022,635
2001
$ 35,568,480
11,291,932
$ 24,276,548
Note: The City has no general obligation legal debt limit other than a celing on the tax rate as specified by the State of Texas. The pres(
146
Fiscal Year
2002
$ 37,615,775
14,720,390
$ 22,895,385
2003
2004
2005
$ 37,816,613
$ 39,010,173
$ 40,872,224
10,372,787
9,245,503
15,620,369
$ 27,443,826
$ 29,764,670
$ 25,251,855
Legal Debt Margin Calculation for Fiscal Year 2006
Assessed value
Add back: exempt property
Total assessed value
Debt limit (2.5% of total assessed value)
Debt applicable to limit:
General obligation bonds
Less: Amount set aside for repayment of
general obligation debt
Total net debt applicable to limit
;ribed maximum is $2.50 per $100 of the appraised value.
Legal debt margin
147
2006
42,379,165
15,926,113
$
26,453,052
$ 1,695,166,598
$ 407,734,605
$ 2,102,901,203
42,379,165
$ 17,740,000
(1,813,887)
15,926,113
$ 26,453,052
City of La Porte, Texas
Pledged-Revenue Coverage
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Total
Revenues 1
$ 6,106,337
6,368,938
6,445,231
6,844,236
6,094,735
5,988,595
5,837,448
5,836,221
6,193,451
7,438,016
Water and Sewer System Revenue Bonds
Less: Net Average
Operating Available Annual
Expenses 2 Revenue Requirement
$4,081,712
4,177,982
4,386,479
5,626,662
4,347,508
4,814,158
5,025,158
5,125,635
5,259,943
5,389,783
$ 2,024,625
2,190,956
2,058,752
1,217,574
1,747,227
1,174,437
812,290
710,586
933,508
2,048,233
Note:
1. Includes interest income.
2. Excludes depreciation and loss on uncollectible accounts.
148
$ 796,603
798,547
871,328
830,483
828,781
757,418
695,948
651,293
608,161
381,712
Times
Coverage
2.54
2.74
2.36
1.47
2.11
1.55
1.17
1.09
1.53
5.37
City of La Porte, Texas
Demographic and Economic Statistics
Last Ten Calendar Years
(Unaudited)
Personal Per
Income Capita
Estimated (thousands Personal Median School Unemployment
Year Population of dollars) Income Age Enrollment Rate
1997 31,859 N/A N/A N/A 7,353 5.3%
1998 32,658 N/A N/A N/A 7,415 4.3%
1999 34,191 N/A N/A N/A 7,477 4.4%
2000 31,880 675,155 21,178 33 7,645 3.9%
2001 32,356 N/A N/A N/A 7,772 4.6%
2002 32,910 N/A N/A N/A 7,732 5.6%
2003 33,789 N/A N/A N/A 7,648 7.0%
2004 33,712 N/A N/A N/A 7,629 6.0%
2005 34,538 N/A N/A N/A 7,808 6.1%
2006 34,825 N/A N/A N/A 7,786 4.5%
Sources:
Estimated population provided by the Planning Department.
Personal, income, per capita personal income and median age provided from the 2000 US Census.
School enrollment provided by LPISD.
Unemployment rates provided on the Texas Workforce Commission Website.
149
City of La Porte, Texas
Principal Employers
Current Year and Nine Years Ago
(unaudited)
2006
Employer
La Porte ISD
E.I. Dupont De Nemours & Co.
City of La Porte
Furmanite Worldwide
A&L Industrial Services Inc.
CCC Group Inc.
Aker Kvaerner Industrial Constructors, Inc.
James H Jackson Industries Inc.
Occidental Chemical Corp.
Intercontinental Terminals Co.
Total
Employees
1,000
580
368
334
300
300
250
250
175
160
3,717
Percentage
ofT otal City
Employment
27%
16%
10%
9%
8%
8%
7%
7%
5%
4%
100%
1997 *
Employer
Solvay Polymer
San Jacinto College
La Porte ISD
E.I. Dupont
Millenium (formerly Quantum)
Al<zo Nobel
Hickham Industries
Dow Chemical
Fina Oil & Checmical
Geon Company
Employees
1,100
1,003
987
870
736
500
270
250
225
180
6,121
Percenta!
ofT otal C
Employme
1
1
1
1
1
10
* Source: City of La Porte Official Statement, Series 1998 General Obligation Bonds
150
City of La Porte, Texas
Full-Time Equivalent City Government Employees by Function/Program
Last Two Fiscal Years
(unaudited)
Fiscal Year
2005 2006
76 76
135 138
32 32
22 21
47 45
26 27
20 20
13 13
3 3
Function/Program
General Government
Public Safety
Public Works
Health & Sanitation
Culture and recreation
Water Services
Sewer Services
Golf Course
Sylvan Beach Convention Ctr.
Source:
City Budget Office
151
City of La Porte, Texas
Operating Indicators by Function/Program
Last Eight Fiscal Years
(unaudited)
1999 2000 2001
Function/Program
Police
Physical arrests 1,541 2,114 2,193
Tickets processed 6,065 6,657 9,489
Fire
Number of calls answered N/A N/A N/A
Inspections N/A N/A N/A
Highways and streets
Street resurfacing (linear feet) 40,400 39,200 42,000
Potholes repaired 251 302 232
Sanitation
Cu. Yds. Garbage collected 25,757 27,300 28,025
Cu. Yds. Trash collected 31,061 38,603 48,049
Culture and recreation
Fitness center admissions N/A N/A N/A
Water
Number of water meters 9,500 9,679 10,699
Average daily water consumption (million gallons) 3.1 3.3 3.0
Water mains breaks 806 601 505
Wastewater
Average daily sewer treatment 3.4 3.0 3.9
(thousands of gallons)
Golf Course
Number of Paid Rounds Played 41,117 48,950 43,063
Source: City Departments
Notes: N/A - Data not available
152
Fiscal Year
2002
2003
2004
2005
2006
2,271 2,000 2,330 2,465 962
9,298 9,605 6,593 6,877 8,212
N/A N/A 1,044 1,044
N/A N/A 500 500
26,200 27,800 33,800 66,158 27,835
271 413 524 531 321
28,655 28,243 29,675 30,022 30,795
52,796 50,111 54,875 49,140 49,140
N/A N/A 84,060 84,060
10,957 10,987 10,987 10,987 11 ,592
3.1 3.2 3.2 4.1 3.3
491 440 299 437 483
3.4 3.9 4.0 3.5 2.8
42,540
38,594
38,901
34,961
32,731
153
City of La Porte, Texas
Capital Asset Statistics by Function/Program
Last Seven Fiscal Years
(unaudited)
Fiscal Year
2000 2001 2002 2003 2004 2005 2006
Function/Program
Public Safety
Police Station 1 1 1 1 1 1 1
Police Officers 56 71 71 72 72 72 73
Reserve Officers 9 3 5 5 5 5 5
Fire Stations 4 4 4 4 4 4 4
Sanitation
Collection trucks 13 13 13 14 14 14 14
Highways and streets
Streets (miles) 160 160 164 164 164 211 217
Streetl ig hts 1,823 2,072 2,109 1,533 1,665 2,192 1,803
Traffic signals 3 3 3 3 3 3 3
Culture and recreation
Parks acreage 145 462 463 463 463 337 339
Parks 17 18 18 19 19 21 21
Swimming pools 6 6 6 6 6 6 6
Recreation Centers 1 1 1 1 1 1 1
Senior Center 1 1 1 1 1 1 1
Water and Sewer
Water Mains (miles) 226 229 231 231 231 165 168
Fire Hydrants 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Sanitary Sewers (miles) 184 185 186 187 187 187 187
Storm Sewers (miles) 87 88 88 89 89 89 92
Source: City Departments
Note: N/A - data not available
154
(])
c..>
c
co
--
-
0..
E
o
()
-c
c
CO
-
CO
--
c..>
c
CO
c
--
LL
-
CO
::s
c
c
<:(
<0
<::>
<::>
c:xJ
c
o
--
+-..
CO
+-..
C
(])
en
(])
L.
c...
(])
(])
+-..
+-..
--
E
E
o
()
f'....
<::>
<::>
C\J
...
<0
C\J
~
CO
::s
L.
-0
c
CD
>
--
0')
CD
..0
o
+-'
CD
U
C
CO en
'-.....,
::J C
(J) CD
(f) E
CO Q)
'+-.....,
o CO
'--.....,
o CD en
~ >-
'-J CD CO
-~ ..J -0
'+-+-,c
(J) CO
CD C
..c:
-"'!: (J)
s-o
'-
CD CO
U-o
C c
CO CO
-o+-'
'-en
80')
U C
co+=
--
c-o
-- ::J
-0<(
CD_
oS
::J C
-0(1)
C E
o c
U '-
:t= (1)
~(. .......::>..
:.1.....i....i.~.
5 <(;.~
,fj.
C
o
--
c
--
Q.
o
C
co
(1)
-
()
e
.Q en c
= CD 0 e
E ~ ~ .2
...... E = -co
I"V"'\ . _
"".I ._
0')"0 ,y'\ E "0
· c \,," .I ...... 0';/2.
OCDCOCO "l-
T- C. 0') " 0 Cf)
69- >< ,...: T- .
1""0 .........,-,0 co
CD \.LI fFJ- c\i n" 0')
o '"0 (]) f:ff " "l-
ce 0"1- e(Y) 0
~.2 c:: 0 .Q L. 0
5 co_~ Q)=.E :;:;
:::..Q@cooE+- @
== "0 Q) ..0 c:: co c:: c
E e e -o.~ · 0:J 0
:J CD e ~ LO ._
f'... - Q) ::J co C\J g "0
r--.: "0 - - > (h co Q)
,.... CD 0 0 ...... _
(h Cen +- Q) ~ en (5
CD~CD O>:J CD 0
21 en co C/J "0 c:: ><
Q) Q)"O CO..5 Q) ~ ~
~ CC\J ~ Q)CD > CCD ::
CO:J .()>~~::sc
- ""--:..;b .s E - Q) c:: <D
.! ~'''''''' +- en ,!.. ..".~....,~ b:
o 0 s....:. .(1) o. C L. Q)::J
F'F 0 ~ 0... F+t 0... t. 0
~... .~ ~ ,~.'.."~>~ ~
"\';;';:"::;\-7?>r
",op'HA-;"
'+-
o
+-'
C
0>
E
0>
L.
.-
:J
0-
0>
L.
C 0>
o .2
:.:: >
== L.
E m
~.E
,.- 0>
Y7-o
'+- -
o co
0> :J
o C
C C (0
co co~
CO 0> ~~
.c 0) f'..
-0 ~ LO
.t: ..(Oi~~
:J><~
1..1... c::(m-
.;)1 ;*I
i"'"
,
"\'>1'",:".,-..,",
"~'<':':"";"i.,.,;.,.;j;>:.,<\.t
c
o
--
-
-
--
E
"-
-
~
C\J
Y!J-
'+-
o
en
+-
(1.)
en
en
CO
c
o
--
+-
CO
--
U
(1.)
'-
0.
(1.)
-0
-0
(1.)
+-
CO
-
:J
E
:J
U
U
CO
'+-
Oc
+-0
(1.)--
c=
en~ E
(DC\J
en -
en~
co~
-
co-o
~~<(1.)
0-___
~....~.
\'\1,1 +-
() 0
+-
;:iJ
LO
C\J
LO
~
LO
LO
,--
Y!J-
'+-
o
en
en
o
-
0)
C
--
+-
CO
'-
(1.)
..0.
o
;.f;
,--
Y7
'+-
o
(1.)
en
c
(1.)
0.
><
(1.)
C
o
--
+-
CO
--
c
o
--
-
-
--
E
LO
~
-
C\J
~
,--
~
C\J
C\J
,--
Y!J-
..c:
en
CO
u
c
--
(1.)
en
CO
(1.)
'-
-0
CD
.....
o
Z
en -0
~Q)
. - .....
-0 0
C Z
.-
1L en
CD c
u .Q
C ."'!:
CO -0
~ C
0.. 0
E 0
8~
..0
- CO
CO .....
.- ~
~ 0
.$ 0..
CO (I.)
~a:
o 0
zZ'
;lI ;4t
c::
CD
CD
CO
. .
-0 -0 (J) CD
CD CD+- >
'0 '0 a5 CO
2 2 E J:
(fJ (fJ E (fJ
CD c: 0 c:
(J) 0 0 .Q
,^._ +oJ
V,J +oJ .-
CD -- -0
c: -0 ~(fJ c:
~ c: '- 0
co 0 COo
CDo~
$ ~ '- ~
_ .0 0 .0
_co co or:: ~
~ -ell. 0-0
+- 0- a. CD
co 0.0 CD>
~}l#; ~ CC (5
~) ... .,ic;D)' .."ia. .35.., : . ~
~!/~ ...~. ~'E.i'lE.t
..~...,.......~. .~... ,.
4
CITY OF LA PORTE
Interoffice Memorandum
TO:
Barry Beasley, Councilman
Howard Ebow, Councilman
Chuck Engelken, Councilman
Tommy Moser, Councilman
Louis Rigby, Councilman
John Joerns, Interim City Manager
Michael Dolby, Interim Finance Director~
Phyllis Rinehart, Controller
FROM:
DATE:
SUBJECT:
January 10, 2007
Quarterly Investment Report
For the first quarter of the 2007 fiscal year, the City's investment portfolio yield has been between 5.05%
and 5.13%. The average return on the portfolio for the first quarter of the fiscal year was 5.10%, which is
above the average yield of our benchmark, which was 5.07% (see graph below). Our benchmark is the 6-
month T-Bill rate. The current year to date interest earned for the 2007 fiscal year is $445,421 which is
approximately $84,000 more than projected at this time.
City vs. Benchmark
6.00%
5.00%
4.00%
3.00%
2.00010
1.00%
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
\~~ <(.~' ~~ ~<: ~~ \V~ \~ ,,?:,vQO s~~ 0""": ~o4' <;fcf
- Portfolio Yield - Benchmark
At December 31st the City's portfolio consisted of 39% in Agency Notes, 31% in Texpool, 23% m
TexSTAR and 7% in Logic (see pie chart below).
By Investment Type
7%
23%
I- Texpool - TexSTAR 0 Logic 0 Agency Note~
The overnight rate set by the Fed continues to remain stable. The most current overnight rate was set on
June 29, 2006 at 5.25%. With that said, our main focus is to continue to ladder the portfolio.
At the end of the first quarter, the City's portfolio consisted of 61 % of the portfolio maturing overnight (see
graph below). 26% of the City's portfolio matures in one year and 13% of the City's portfolio matures in 12-
24 months.
By Investment Maturity
13%
26%
61%
I · Overnight
.1-12 Months
o 12-24 Months
Currently, the 3-month T-Bill is at 5.03%; 2-year, at 4.52%; 5-year, at 4.39%; and, the 20-year is at 4.64%
(see yield curve below).
Yield Curve
6.00%
5.00%
4.00%
3.00%
2.00%
3mon 6mon 1 yr 2 yr 5 yr 10 yr 20 yr
Treasury Bills
- 3 months ago - current
The overnight rate is currently at 5.25%. We will continue to focus on laddering the portfolio to maintain a
constant cash flow and a liquid position.
2
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
2 YearT-Note
i
!
i
I
----j
0.00%
~b ~<:t,
cf cf
<:)'1.) <;f
~~ ~'" ~~ ~b ~<:t,
cf cf cf cf cf
<:)'1.) <:)'1.) <;f <:)'1.) <:)'1.)
~~ ~'" ~~ ~b
cf \f r:.f cf
<:)'1.) <:)'1.) <:)'1.) <;f
In summary, we will continue to invest the City's funds in conservative investments, as authorized by the
Public Funds Investment Act, always keeping in mind Safety first, and then Liquidity and lastly Yield.
3
Portfolio Composition and Value
as of December 31,2006 80.00%
Par Book Market Days to
Value Value Value Maturity
Investment Pools 18,717,964 18,717,964 18,717,964 I
Agencies 12,000,918 12,000,918 11,971.590 348
Total 30.718.882 30.718,882 30.689,554 136
Book
Value Percent
1-12 months 18,717,964 60.93%
9-12 months 8,000,918 26.05%
1-2 years 4,000,000 13.02%
Total 30,718,882 100.00%
Pooled Funds
Bond Funds
Portfolio
Yield
5.12%
5.29%
Benchmark
Yield"
5.05%
5.03%
Total
5.20%
Investment Maturity S~hedule
as of December 31,2006
Portfolio Performan~e
for the month of December 2006
Weighted
Average
Maturity
4.15 months
1 day
5.04%
2.84 months
"The pooled funds benchmark is based on the average monthly yield of a 6-month Treasury.
The bond funds benchmark yield is based on the average monthly yield of a 3-month Treasury.
The total is based on weighted average monthly benchmark yields.
Portfolio Earnings
for montbs ended De~ember 2006
500,000
Budget Actual Percent 400,000
General 650,000 155,911 23.99%
Enterprise 98.905 26,711 27.01% 300.000
Internal Service 164,350 56,029 34.09% 200,000
Total 913,255 238.651 26.13% 100,000
Yield Curve
:=~
4.00% -
3.00% ..
2.00%
1.00%
0.00%
t:-
'-I
*
!ill
3mo
6mo
1yr
2yr
5yr
I-+-Oct-06
No,,"06 ___ Dec-061
WAM . Pooled Funds
0.00
9.00
8.00
7.00
6.00
5.00
4.00
300
2.00
1.00
0.00
:===--===j
Oct-06
Nov-06
Dec-06
60.00%
40.00%
20.00%
0.00%
Investment Pools
60.93%
Agencies
39.07%
_Dec-06 _Jun-06 .......Dec-05
.
,,,. ~
Pooled Funds
Bond Funds
Total
I D Portfolio Yield
. Benchmark Yield" I
General
Enterprise
Internal Service
. Budget
. Actual
% of funds invested in:
Securities & Pools
Bank Depository
Total % of funds invested
Average for December
2007 2006
77.09% 92.16%
22.91% 7.84%
100.00% 100.00%
Operating Account Balance
9,126,996
2,593.015
December 3 I ,2006
This report is in full compliance with the investment strategy as
established for the pooled investment fund and the Public Funds
Investment Act (Chapter 2256).
Wc<X'~
Controller
5
:2:
o
~
"
() () () () .o::tJ " DO
Ql Ql Ql Ql ~.g
.., .., .., .., ., C ;::;:
0. 0. 0. 0.
:s:: :s:: :s:: :s:: ~o tnD),<
CD CD CD CD (\) ~ D~O
3 3 :J 3 (\) ....
0" 0" 3 0" " .., 0 c::!.r-
CD CD 0" CD III rn""" D) '< D)
.., .., CD .., :" 0 ~:::a""D
(J) (J) .., (J) C1l
CD CD (J) CD C1l 80.., ~ (\) 0
:< :< CD :< :,,' (\)
o. o. :< o. CQS: ,," ~
-(O(\)
CD CD o. CD 0- ~~
(J) (J) CD (J)
(J) (\) (") "'0-1
o Q) o....(\)
(\) a.. 00><
:3 ~ D)
o-~ (jJ tn
(\)"b Q,
.., (\) ;::;:
..... ..... ..... w:" 0
N N ..... 0 C ..~ Q. D)
-.. -.. (3 -.. III -. .,
N 0 0 - ~2' Q,
CD ..... W 0> C1l
-.. -.. -.. -.. oCll m
0 0 0 0
0> 0> 0> 0> O)C/l ><
"
(\)
:::::I
Q,
Zo ;::;:
N N N r::: ~ C
N N N N 3 C1l (jJ
W CD CD (Xl
0 C.11 ..... -....I 0"0 tn
0 w C.11 0 C1l "
(Xl N ..... J>, ..,
Yl
..... ~
C.11 C.11 J>, W N 0
-....I -....I W ..... C.11 r:::
0> CD C.11 ..... 0 ::1
~ en i\) Cn (:) -
0 N W C.11 0
:;!
iii'
iiJ
'tJ
o
::t.
iiJ
~
C1l
o
lit
III
::::
~
~
~
~
3
III
Q,
C1l
~
::3
~'
CQ
S
C1l
:n
Ci1
-
.0
c::
III
::t.
C1l
.,
o
....
"
-<
I\)
<::I
<::I
"'-l
o
o
-
o
0-
C1l
","
;0 :s:: () e.... 0 0
o. Ql '< 0 CD III
:J'" ~ :J :J'" 0" d
..... :J OJ
Ql :J'" :J'" ~
.., Ql Di. e....
0. 0 TI 0
;0 G) :t> CD CD a:
CD .., Ql
CD ![ :J C1l
-I .~ >< .(J) N ..,
0 ...... Ql ~ Z
..... "'U () :J :J .CD III
Q!. Q. 0. CD 3
~ CD :s::
m o. .., .., C1l
>< CD (J) 3. c -..
"0 :J "
CD () CD () o. 0
:J :J'" (') -c. en
.., ;:+
0. ffi. CD '< Q!. ;:;:
;:+ - ..... cr
c Ql :s::
.., -< Ql () ::1
CD 0
(J) :J
Ql :J
co (J)
CD C
.., ;:+
Ql
:J
ijj
)>
0.
<
00.
0
..,
Yl
..... )>
3
C.11 0> (Xl 0
-....I N J>, C.11 J>, r:::
0> 0 0> J>, !:lO -....I
~ (:) (:) W ::1
C.11 C.11 -
0 0 0 C.11 W N
:2:
o
~
3
0-
C1l
","
o
C1l
o
C1l
3
0-
C1l
.,
I\)
<::I
<::I
~
ozo
o -.
-n~~
m 3 55
N 0" en
~CDm
CD -. (")
, 1\.)0
!llS'>5
~ ~~.
(") 0(")
g'0>0
Ci CD
CD ~
~ 5"
~ "0
3
en CD
_ ::l
o -
7\
CD
en
~
III
S.
......
o
......
G')
~
~
OJ
III
-.
......
......
N
~
o
0>
w
I\.)
o
0>
,
C
::l
(")
::T
oen)>
CD 3 ::l
0"1ll::l
@ = lii
(')-
;ra:en
III CD C
N en 0"
~"U~
CD C :::::!.
Q:~
o 1jj. o.
III ::T ::l
= S.
III (0
,en
:;;!
"U
III
'<
"U
Q!..
en
3
~
(')
;:;:
CD.
en
I\.)
o
~
o
0>
w
?1
o
o
)>
::l
::l
C
Q!..
en
C
0"
en
(")
-.
"E:
o.
::l
ooz
CD CD ,
g@(')
CD" 3 5"
-n0"::l
CD ~ C
~ ,...... Q!..
~I\.)(')
-00
CD 0 ::l
'O>CD'
~ -.
III CD
en ::l
::T @
S"
(0
-
o
::l
o
(')
Z
III
-
0"
::l
Q!..
,
CD
III
(0
C
CD
o
-
(')
;:;:
CD.
en
......
......
o
w
o
0>
w
......
?1
o
o
"-'
(')
-.
CD
a.
;:;:
,
;0
CD
(0
1jj.
-
-.
~
0"
::l
00-1
CD (") ~
go'
CD" g 5"
-n-'::l
CD I\.) C
III J>. III
NN-
~~(')
ro"r-vg
'8CD'
~O>CD
en ::l
~ g
:;;!
J:
III
3
"0
o
::l
::l
::l
~
en
C
;:;:
CD
en
o
-
w
o
-
o
0>
..-..
......
(11
~
CD
~
(')
-.
CD
~
00-1
CD(")~
go,
CD. g 5"
-n-'::l
CD I\.) C
III J>. III
NN-
~~(')
ro"r-vg
'0-
)>o~
cO>CD
en ::l
- (")
::l CD
-I
X
J:
III
3
"0
-
o.
::l
:;-
::l
~
en
c
;:;:
CD
en
......
o
N
(11
-
o
0>
(11
~
CD
(11
,
o
a.
lQ.
::l
(0
oo~
CD (") CD
O"-CD
-. 0 _
III 0" -.
-n~cE
CD ...... -.
~ .o~
CD I\.) III
afoa.
, ~ S.
E (0
a. ::T
'< 0
(') ~
~ "0
S. .Q.
I CD
"U (")
CD -
!fl
J:
III
"0
"0
'<
J:
III
0"
o
-.
~
III
S.
......
o
......
G')
~
"tI
III
CD
CD
~
OJ
III
-.
o
<D
-
I\.)
~
-
o
0>
C
III
-
CD
w
~
0>
<D
~
o
C
::l
-
,
C
::l
(")
::T
m
-I~
CD
CD ;
CD
"tI
C
-.
"C
o
(II
CD
'11D(")
.., s::: ;::;:
o tII 0) '<
1ll;::;:1o
a. llJ (I) -
::T s::: ::l. r
00),< 0)
C:;:1 :::0 ""C
~~(I)O
d' '11-< -g ;-
!!!. ;:1 -
=: t.) 0 ~
g g _ (1)><
.......,(")0)
~ ~ tII
::l 9:
~: -
"C (")
III 0)
..,
a.
m
><
'C
(I)
~
a.
o
o
::l
(II
C
;:;
III
::l
~
<
iii"
o
,-.
;::;:
s:::
..,
(I)
tII
c
CD
0"
0"
CD.
'TI
CD
III
N
~
CD"
~
o
nl
"
:;!
iii'
~
'0
o
:l
~
:::!l
I'D
I")
Cil'
III
::::
~
~
~
~
3
III
~
g.
~
:::s'
fQ
S
I'D
:!I
iil'
-
.0
c::
III
:l
I'D
.,
o
.....
"
-<
N
Q
Q
.....
"0
I")
8'
0-
I'D
~.,
~
'"
I'D
3
0-
I'D
~.,
o
I'D
I")
I'D
3
0-
I'D
.,
N
Q
Q
~
-l
o
-
~
o
c:
Q)
~
CD
...,
-<
()
::r
Q)
...,
<0
CD
00
{f)
~
:--J
w
N
~~~Q
<:> '" '" <l>
<:>01....~
g~~'lt
000
. CD-.
"'C'l~
CD CD C
Q) 3 00
N C" 00
CD CD-
=...,0
.CD ...... c5
c...N
. - CD
OJN...,
C 03
...,0_
@O"l~
. Q)
c... -
CD
<0
o.
"'C
iil
::l
r
Q)
:E
CD
....,
OJ
...,
a:
<0
~
.r+
l2<>
o
o
'<
CD
s:
Q)
S.
o
......
G>
a:
l2<>
OJ
Q)
...,
N
-
......
N
-
o
O"l
o
<0
~
""
r
c
::l
C'l
::r
oos:
CD CD CD
C"C'lCD
D3CD:::!:
." g. c5
CD CD ...,
Q) ..., CD
N O"l <0
CD. Q)
=N""
CDOg,
'O::l
)> O"l <0
C I
!e. 0
S. ~
-l
><
en
o
C
-
::r
~
00
-
)>
s.:
S'
CD
00
......
N
-
o
O"l
o
-
O"l
......
co
""
o
)>
~
CD
"'U
...,
.Q.
CD
U
oen)>
CD 3 ::l
g~~
... - Q)
()-
." -. en
m 1Fc
NOOC"
~"'U~
CD C ::l.
IQ:~
000. <:5"
Q) ~::l
=::l I
Q) <0 C'l
.00 Q)
::l
C'l
CD
CD
a.
-l
><
"'U
Q)
'<
"'U
~
en
3
~
()
;:;:
CD.
00
"'0
III
I'D
I'D
N
-
o
""
25
O"l
C
III
...
I'D
w
c.n
o
o
-
~
o
C
::l
...
()
...,
CD
a.
;:;:
m
-l~
I'D
I'D ii
I'D
"'0
c
...,
'l:J
o
UI
I'D
"nDC')
.,c;+
o tII D) '<
111-"
...,,,-0
a. AJ (1) -
::T C ::!. r
OD)'< D)
is:::l :::0 "'tJ
~~(1)0
~~"8 S-
UI ::l -
a: N 0 -t
g g _ (1)><
.. ~ C') D)
~ a tII
~ c.
!:!: ;+
'l:J C')
e!. ~
o c.
o m
ii ><
c "C
;:;: (1)
III ::::J
~ C.
~ ;+
a. C
< .,
iii' (1)
o tII
.:'
C
I'D
0'
0'
CD'
."
I'D
III
N
!.
CD
"T1 DO
"" c ;::;:
tn 1>>'<
- ~
~ I (") s:: CXl -i &>0 0
0 -i 0 fJ) III CD CD CD ....
0 c S' CIl >< aC :::!. r
~ QI CIl (") - III
- :E CIl :r I>> '< I>>
'. 0 0 0 s:: 2.~,,""C
:J CD
....... Q.CD CD 0
;! c -< CIl c "'0
III G> - :J CD""
III CD III .., "T1 "'C ~
iii- ::l. (") ~ ..., c'r
CD ~ :J .:0. CD "'0-(0 CD
CiJ ..., - I o ~ ~
-< Qo ~ CD
'tl (") 0 CIl N -t
0 (") c CXl CD r ;:;:0 0 CD
::l ~ 0- III CD -- 0 ....
III ..., 'fjj III g......O~
CiJ ..., CO
CO C (iJ tn
:::!! CD CD 5'
CD CIl C.
(') .. ;::;:
Cij CD
.., 0
Ql 3'
:::: I>>
~ (") a.
;:;:
'< m
~ ....... ....... ....... 0 c s::
I\) I\) ....... 0 co ><
-- -- -- -- -- III III "'C
Yl ....... ....... 0 ....... ....... ..
~ eN co I\) I\) CD :J CD
-- -- -- -- -- III ::s
~ 0 0 0 0 0 CO
0> 0> 0> 0> 0> CD c.
:3 ~.., ;::;:
Ql c.. C
Q. ~ 0 (iJ
CD :r
Q. ~ :J tn
c..
c:: <:xl I\) I\) I\) 0
=:3 U1 ....... ~ "'oJ "'oJ U1 0
:::i CD
<:xl ~ U1 0 "'oJ 0 C ..,
CQ U1 (0 0 m Co 0 ~ ~
S eN co 0 <:xl 0> 0 .. UI
CD
:n
~ r s:: r :;u :;u
-
.0 c CD c CD CD
:J 3 :J CO CO m
c:: (") (") (ii' (ii' -4><
Ql ~ 0- ~ - ~
~ CD ..., "C
<il III CD
- - CD :J
., ~ o' o. UI
0 .:0. :J :J CD
....
~
I\)
c
c
......
-0
(')
8'
0- (")s::rfJ):;Uos:: c....s::- c....ZO c....O- c....O-i
CD
"," '. '. CD CD o CD ~ o 0 -. 0(")(") o (") s::
fJ)O(")CXlc....("):J ~3~ ~<CIl ~_fJ) ~or
~ (")OllllllCDCDO c....o-:J :J CD g :Jg.(") c....o-)>
0 oC'3~_~3..., o~m: c....3C1l c....CD(") o CD :J
~ :::~~~~g~ o 0- CIl o ..., 0 CD ..., :J
CD CIl 0 ~~s:: ~ ....... :J
:3 ..., ~ :J ..., I\) c
(") c..... ..., 0 :J -. III :J III :JoCD' :J~lll
0- . ;.... G> g' ....... (i). CIl"O _ CIl co -. en ~ ..., CIl'-
- :J I~(")
CD )> 0 6' III _~co :;U(") QoI\)fJ) I I\) CD
"," :J CD 0- a.. I\) CD- CD 0 fJ) - :J )>- 0
fJ)0_ III I\) (")
tJ g.30- O"U :J c CD~'fjj C I\) :J
CD <ilJl~:E~a CD :J :JoCD CIlOCD' "'0
~ g, < CIl )>0 ~o...,
(') o -. CO CD C :J 0> CD C
CD :J~S::fJ) 03 ~o CD :J 0> - :J ..,
:3 G> - "C
- III - CIl 0 -i (") 0
0- :;U(")Qo- 3 fJ) -- :J X CD
CD "TI UI
CD . 0 -.0 ~ C 9' CD
., -
fJ)==- 0 - :J
I\) ~ S. ~ CXl "0 I a. ~
c lll.CIl--. "0 0 :j"
c :Js::fJ)CXl S. ~ CO
~ lll. . 03 CO ro (")
CO G>a. (") Jl 0
I\) I\) ~ I\) Q III s:: -. CD CD :J
W I\) I\) :Jlll= :J ~ (")
<:) <0 <0 co C\l Qo=CD'<
<:) tJ1 .... ~ ~ :1'= CD CD
<:) W tJ1 ..., "0
co I\) .... :t:I: CIl en
~
o
nt
"
;!
iii'
~
~
o
~
~
~
(')
lit
III
:::
~
~
~
(;J
3
III
g.
~
::3
~'
CQ
S
CD
J1
~.
-
.0
~
;.
.,
o
....
~
I\)
Q
Q
......
-
~
o
0-
CD
.:"
~
o
~
3
0-
CD
~.,
I:)
CD
(')
CD
3
0-
CD
.,
I\)
Q
Q
~
d
![
o
c
Ol
ffi-
.....
-<
()
::T
Ol
ca
co
l/l
Yt
0>
~
~
(]I
(]I
~Q.QO-l
rOl::JSlS::
coca.....or
Olco:r.e-)>
cga.Ol~::J
co.....)>"'::J
()Om~c
_. () x N !!!.
~r~O>()
I "Ua.. 0
ooco~:l,
.gCil70~
'< g;)>0>~
ao~ 0
o~O: co
g- a. .::J
0'-1
"CilX
00.3.
Ole-
;::;c
Ol Cil
o co
g-a.
a.
~
s=
::J
I
o
ffi:
....
o
N
~
o
(J)
C
III
-
CD
(J)
~
~
(]I
(]I
)>
3
o
C
::J
-
r
o
a.
<0
:5"
<0
"tJ
c
...
'C
o
en
CD
!JOO
.., c -.
~Sl)~
0;::1.0
c ~ ....
Sl)-r-
0;::1. '< Sl)
!!: CD ;:0 "'D
a.'" CD 0
::T "T1 "0 ;::I.
2.. -< 0 CD
a. ;::I. ~
~~O -I
"tJ 0 .... CD
0......0><
en Sl)
a: ~ tJI
o C.
::J -.
.. -
o
'<
::J
-
::T
iii'
)>
CD
X
III
::J
a.
CD
...
o
Sl)
..,
c.
m
><
"0
CD
~
C.
;:;:
C
..,
CD
tJI
~
o
~
'.
;!
iii'
Cil
"tJ
o
:::L
Cil
~
n
lit
III
:::::
~
~
~
~
:3
III
~
Q.
c::
:::!
~'
CQ
S
CD
J!
iil
....
.0
c::
III
:::L
CD
.,
o
....
~
~
Q
Q
~
"0
n
....
o
0-
CD
~.,
~
~
:3
0-
CD
~.,
o
CD
n
CD
:3
0-
CD
.,
~
Q
Q
~
-l
o
-
~
o
c
OJ
;::1.
CD
..,
-<
()
"::J"
OJ
..,
ee
CD
en
Y)
N
en
o
o
~ Q
c <1l
:5 ~
00 'It
:s::s:rm
OJ OJ OJ 0.
;::1. en .., c
"::J" -<< 0
OJ~en~
G) 0 0 0.
_. - 0 :::l
= en::::
~ 9. ::E a
CD OJ OJ
:::l -"0
o -"0
CD'-
_. -l c'i"
:::l CD OJ
_x:::l
:::l OJ -
-en en
CD 0'
a.~..,
(ij" ~ ()
9" CD ;::;:
"0 '<
5'5=:s:
OJ -. OJ
., < :::l
'<;~OJ
~~~
c '< ..,
c.'
-. en "0
CD OJ 0
en :::l !:!l.
:s:g
OJ :::l
..,
o
o
en
z
OJ
-
0"
:::l
~
en
-
c
0.
CD
:::l
-
()
CD
OJ
..,
:5"
ee
"::J"
o
c
en
CD
......
......
i\)
......
o
en
en
(}1
o
<
CD
..,
:::;;
c=r
OJ
-
0"
:::l
:S:OJ;:om
OJ OJ o. 0.
;::1.g.~~
"::J"CD()OJ
OJoo~
G)"':::l0
= 0 :::l :::l
CD-CD 0
-en"'-
-0 ' OJ
-. c"O
~:::l"2.
o <. o.
CD CD OJ
::;" ~ ;a.
-' ;:;: en
OJ'< _
COO
en _ ..,
~.;; 2
enen,<
en~:s:
6:cOJ
3 =r" ~
-. () ee
2. 0 CD
en c ..,
~3"O
~Q:~
gOJa:
o
:::l
z
OJ
-
0"
:::l
~
en
-
C
0.
CD
:::l
-
()
CD
OJ
..,
S"
ee
"::J"
o
C
en
CD
......
......
i\)
......
--
o
en
en
(}1
o
<
CD
..,
:::;;
0"
~
0.
:::l
:s::s:enm
OJ OJ "::J"o.
;::1.enOJc
"::J"-:Eo
OJ ~ :::l ~
G) , r 0.
= "U" :::l
CDcOo
_0"0_
-=:EOJ
o CD "0
"U ="0
0'=
=OJ~
.$2OJ:::l
l2<> 5- en
)>..,0'
o.c'"
3 2" ()
S. Cii~
~ :s:
~~
OJ
ee
CD
..,
"0
o
~
0.
:::l
z
OJ
-
0"
:::l
~
en
c-
o.
CD
:::l
-
()
CD
OJ
..,
S.
ee
"::J"
o
c
en
CD
......
......
--
N
......
--
o
en
en
i:.n
o
<
CD
..,
:::;;
o.
~
0.
:::l
:S:OJenm
OJOJ"::J"o.
;::1. 0 OJ C
"::J""::J":E0
OJ~:::l~
G) Q :- 0.
= 0 :::l
CD_Oo
_)>0_
- :EOJ
;::1. CD "0
en ="0
~~
O":::l
~en
:::l 0'
CD ..,
()()
"::J" -.
::!.-<
~:s:
OJ OJ
:::l :::l
cOJ
:::lee
_. CD
< ..,
CD "0
~ 0
-" en
~;:;:
o
:::l
z
OJ
-
0"
:::l
~
en
c-
o.
CD
:::l
-
"tI
01
CD
CD
()
CD
OJ
..,
S.
ee
"::J"
o
C
en
CD
......
......
i\)
......
o
en
C
01
-
CD
en
(}1
o
~
o
C
:::l
-
<
CD
..,
:::;;
o.
OJ
-
0.
:::l
m
-l~
CD
CD ~
CD
"tI
r:::
.,
"0
o
(II
CD
"TlDO
0" C ;:;:
01(1)1>>'<
a.::: ::+ 0
::r IIJ (l) -
o C ::!. r-
ii I>> '< I>>
~ S- :::c "'tJ
"tI., (l) 0
o "Tl '0 ::+
a: -< g, .!D
ONO -f
:::l 0 (l)
"0-><
0...... 0 I>>
~ Cil (I)
'< C.
en -.
CD -
(')
.,
CD
-
01
0<
o
I>>
.,
C.
m
><
'0
(l)
;:,
c.
;:;:
C
Cil
(I)
b
$
CD -l
en ~
5i 00.
Q:....,
-. CD
en-c
~o
~~
CT 00.
'< -.
-~
~ -
CD c:
(")=
_. C'l
-<,0
o 3
_ -c
r=
Dl Dl
~
d'~
~:E
CD -.
en- g:
)>-
c: ~
0. CD
;::;:Q
(")CD
o Q,
3 -
3 g
-. ....,
::::0.
CD-c
~ Q.
~.
Dl
en
CJ
CD
C'l
CD
3
CT
CD
....,
W
......
N
o
o
(j)